Frozen Food Age Updated: August 23rd, 2007 05:29 PM EDT
On the Rebound
Fresh-cut vegetables move forward after E. coli outbreak from spinach and lettuce in 2006.
By Howard Riell Associate Editor
The fresh-cut vegetable category hasn't completely rebounded from the
2006 North American E. coli outbreak that frightened consumers
nationwide. But progress continues.
Higher food safety
standards, creative new blends and packaging innovation are giving
consumers more reason to trust and shop for packaged refrigerated
vegetables.
The initial outbreak occurred in September 2006
and involved fresh spinach. A subsequent outbreak, in November and
December 2006, was initially attributed to green onions served by the
Taco Bell and Taco John's restaurant chains, but later was determined
to have been caused by prepackaged iceberg lettuce. All told, at least
276 consumer illnesses were attributed to the tainted produce.
"I think that the category is still rebounding from that," suggests
Darci Eckermann, vice president of marketing and business development, Sholl Group II, Minneapolis, the marketer of the Green Giant Fresh
brand. "A number of key competitors, especially those in the cut salad
and tender leaf lines, are feeling the impact of that more. But the
category as a whole is still rebounding. We lost consumer confidence,
and I think that we, as a category, are beginning to rebuild and regain
the confidence. But there hasn't been a complete rebound yet."
According to IRI, the Fresh Cut Salad category in the U.S. across
supermarkets, drug stores, and mass merchandise outlets (excluding
Wal-Mart) for the 52 weeks ending July 15, 2007, notched approximately
$2.7 billion, actually down 6.1% over the previous period. Among the
leading lines were Fresh Express Fresh Cut Salad at under $1.2 billion,
up 3.8%; Dole Fresh Cut Salad at just under $813 million, down 10.7%;
and private label fresh-cut salad at slightly over $311 million, an
8.3% decline.
There is no shortage of opportunity. A recent
U.S. Centers for Disease Control and Prevention survey shows that less
than one-third of Americans are eating the recommended daily servings
of fruits and vegetables.
Innovation and Opportunity
Ready Pac Produce Inc., Irwindale, Calif., continues to be a major
player in the segment, of course. Its European Style Salad Blends line
includes premium blends of baby lettuces and crisp greens. Its Spinach
Temptations line is available in four new varieties: Baby Spinach,
Florentine Spinach Blend, Spinach Spring Mix and Zesty Baby Greens.
In May, another category player, San Juan Bautista, Calif.-based
Earthbound Farm, America's largest grower and shipper of organic
produce and specialty salads, expanded its line of specialty greens
with new fresh cut salad choices and sizes. Among them: Baby Spinach,
Baby Arugula and Mche (mche with frisee and radicchio) blends. They all
carry a suggested retail price of $3.99.
Packaging appears to have come to the forefront. Freshtables SteamPerfect
is the first national brand to come to market with the proprietary
steaming microwave bags in the United States," says Eckermann.
The Freshtables SteamPerfect
line of fresh vegetables and fruits with chef-created sauces comes in
unique steaming bags that steam the product in the microwave in just
about two minutes. The bag has an invisible steaming valve that allows
for pressure to build and safely release at the end of the cooking
cycle. It is merchandised in produce sections (near the lettuce,
carrots, and salads) of grocery stores.
Eckermann believes
the packaging will play "a more important role in innovation. If you
think about where the most recent innovation has come from, it started
with microwave packaging. Now we've moved to steaming packaging. It
looks as though we are borrowing from some of our neighboring
categories. If we continue to follow that process we will find
packaging that will support other cooking methods." She believes that
packaging is "going to be the key to providing the convenience that
consumers are looking for. It (means) being able to deliver on
freshness."
The Freshtables SteamPerfect varieties are available in 12 oz. packages in nine varieties, with the suggested retail price of $3.99:
* Red Apples and Raisins with Cinnamon Sauce
* Broccoli and Baby Slim Carrots with Cheese Sauce
* Broccoli and Baby Slim Carrots with Garlic Butter
* Butternut Squash with Cinnamon Sauce
* Cauliflower with Cheese Sauce
* Vegetable Medley with Cheese Sauce
* Green Beans with Garlic Butter
* Sugar Snap Peas and Baby Slim Carrots with Southwest Sauce
* Baby Slim Carrots with Chive Butter
The new line kicked off distribution in late June. The first customer
on board was Wal-Mart. Shipments went to stores in their southern and
central distribution areas. "We will continue to focus on a regional
expansion," says Eckermann, "and we will probably be national-our hope
is-by May 2008."
She notes that "plenty of other cut
vegetable items out there that come in some sort of steaming packaging,
whether it's a tray or some other kind of bag. I think the big
difference with ours is that we have flavored butter sauces." There are
nine SKUs in all, and five sauces.
"There is, I believe, one
other product on the market that has butter in its steaming cut
vegetable line, but it's just plain butter," says Eckermann. Each
package contains a "butter puck," and as the product steams in the
microwave the butter melts, evenly coating the vegetables.
Glory and Brand
The tainted produce scare never really affected Glory Foods, Columbus,
Ohio, because all of its cut vegetables are designed to be cooked, says
Dino Allen, director of fresh.
"Once you get it to a certain
temperature, anything that would linger on, of course, would burn off
with the heat." Beyond that, he adds, "the next thing that came out of
that was that a lot more individuals, retailers, growers and processors
have stepped up their safety measures."
Glory's product line
includes Collard Greens, Cut Sweet Potatoes, Kale Greens, Mustard
Greens, Rutabaga, Southern Blend Greens (Collard, Mustard &
Turnip), Turnip Greens, Turnip Root, Yellow Squash, Yellow Squash &
Zucchini and, most recently, Cabbage.
Glory's newest item
comes in a 16 oz. bag. "It's not shredded like a lot of the competition
does for coleslaw," says Allen. "It is a quarter-cut cabbage." The
product is available now in selected markets in the Virginia area, as
well as parts of North and South Carolina.
"One thing that
Glory Foods has always done is provide quick, convenient mealtime
solutions for families," says Allen. "We like to make it very simple
for the individual to simply add seasonings and start cooking. We want
to cut the normal preparation time down."
It is consumers who
drive any category, says Allen. "I do feel that a lot of the retailers
are doing the right thing by offering the correct product mix, the
correct items. They are looking at their consumer base and saying to
us, 'Hey, we don't have this; we think this would be a good mix of the
items for our consumers.'" Glory's cut veggies line retails for two for
$5 in a lot of places, or $2.79 to $2.99.
First and foremost
Glory Foods "always sells its brand," Allen says. "Whether it's canned,
frozen or fresh we try to blend it all together as a working brand."
The company uses consumer events, couponing, sampling and cross
merchandising. I like cabbage with smoked sausage, for example, so we
might look at some other cooking methods that can be used to prepare
the cabbage."
Allen says many among the competition "are
looking at what we have done and offering a lot of me-too items. We go
where that consumer goes. We look at the things that are convenient and
quality that we can put our name on and go from there. We get a lot of
requests from a lot of retailers who say, "Why don't you try this, or
why don't you try that.'"
The interest and passion for this category clearly remain intact.
REFRIGERATED NEW PRODUCTS
Kraft 'Says Cheese' With New Singles, Philly Fall Rollouts
Kraft Foods, Northfield, Ill., has reinvigorated an American classic with its new Kraft Singles Select American cheese.
Kraft says Singles Select is a "firmer, richer individually-wrapped
American cheese slice with more flavorful taste. With a rich, deli
taste, Singles Select can go hot or cold. It brings sophistication to a
cold deli sandwich while still melting perfectly on a grilled cheese or
burger."
Singles Select is available in 12 oz. and 16 oz.
packages of 16 and 24 individually wrapped slices. Suggested retail
prices start at $3.59 for the 12 oz. package.
Kraft says
Singles Select will roll out nationwide September and October and will
be available in the refrigerated dairy section of grocery stores.
Also in September, Kraft will roll out Philadelphia Cracker Spreads.
Kraft says the new spreads will "combine natural cheese with
Philadelphia cream cheese and herbs and vegetables to create a bold,
new taste for snacking with crackers."
Cracker Spreads will
debut in four flavors: Asiago and Parmesan, Feta & Spinach,
Pepperjack & Jalapeno, and White Cheddar & Red Pepper. SRP is
$2.49.
Bob Evans Brings Back 1950s Comfort Food Classic
Bob Evans Farms has brought the classic 1950s comfort food-the casserole-to the refrigerated foods section.
The Bob Evans Green Bean Casserole is just like "mom used to make,"
with fresh cut green beans with mushroom sauce and crunchy onion
topping in a convenient microwaveable container.
The 14.5 oz. container holds three serving and carries a suggested retail price of $3.89 to $3.99.
"Green bean casserole is a favorite dish, but many people only have the
time to prepare it for holidays and special occasions," says Mike
Townsley, vice president of food products, Bob Evans Farms, Columbus,
Ohio.
"With the Bob Evans Green Bean Casserole ready to take
from your refrigerator to your dinner table in less than five minutes,
we're helping families make every day a special occasion."
Pillsbury Place 'n Bake Rolls 'Can Be Baked Anytime'
Pillsbury has perked up the refrigerated dough category with new Place 'n Bake Crescent Rounds.
"Crescent Rounds are so easy, consumers can bake them anytime," says
Peg Ilkka, a spokeswoman for Pillsbury and General Mills, Minneapolis.
"Simply open the refrigerated package, separate the formed rolls and
place onto a baking tray for convenient, fresh-from-the-oven dinner
rolls that are the perfect complement for family weekday meals.
"Light, flaky, warm and buttery, Place 'n Bake Crescent Rounds are as
delightful as original crescents, but in a fun, more convenient new
shape," Ilkka adds.
Place 'n Bake Crescent Rounds are
available in an 8 oz. package of 8 rolls. Suggested retail price is
$2.39. The product is being rolled out nationally.
Snack Size Finlandia Package Shows Cheese, Spurs Trial
Responding to consumer demands for "snacking size" packaging, Finlandia
Cheese Inc., Parsippany, N.J., has created a new size for its
Oltermanni Baby Muenster cheese.
The new 8 oz. size replaces
a 17 oz. size. The cylindrical packaging also features a clear top
window so shoppers can see the cheese's texture and color. "A
delightfully smooth, full-flavored cheese, Oltermanni is one of
Europe's favorite cheeses," says John Sottile, vice president and chief
operating officer. "Its flavor is tangy yet gentle enough to be a
family favorite."
Sottile says "consumers love trying new
specialty cheeses. By reducing the package size, and at the same time,
the product's price point, we are welcoming more trial of this truly
remarkable cheese. Extensive consumer samplings of Oltermanni strongly
support that cheese lovers are hooked after just one taste."
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Highlights: Sholl Group II, Green Giant Fresh, FreshtablesSteamPerfect, Freshtables SteamPerfect