Scope and Methodology
Market Parameters
Report Methodology

The Market
Bread or Dough Plus Filling or Topping
Hand-Held Foods as Traditional Fare
Two Product Categories
Retail Dollar Sales Top $1.6 Billion in 1999
Table 1-1: U S Retail Sales of Hand-Held Foods by Category, 1995-2004 (dollars): Entrees, Appetizers/Snack Rolls Frozen Entrees at 60%
The Right Time for Hand-Helds
Sales to Exceed $2.3 Billion by 2004

The Marketers
Chef America Is Largest Player
Figure 1-1: Leading U S Marketers of Hand-Held Foods by Share of Supermarket Sales, 1999 (percent): 5 Marketers, Other The Major
Supermarket Brands
The Impact of Minor Marketers
Establishing a Retail Zone
Reaping Sales in Secondary Outlets
From Selling to Vending
Size Matters
Scrambling for Breakfast Sales
Natural Food Selections Continue to Increase Sales
Chef America Is Top Advertiser
Advertising Positioning

Distribution and Retail
Two Main Methods of Distribution
Warehouse Delivery
Direct Store Delivery
Vending Machine Delivery
Food Stores Garner 87% of Sales
Channel Blurring

Price Points Range from Under $1 to $10 Supermarket Merchandising Varies
Promoting Foot Traffic
Promoting the Snack Attack

The Consumer
Overview of Consumer Patterns 56% Use Microwave Food Products
Who's Big on Burgers
Microwaveable Breakfasts in 10% of Households
White-Collar Skew to Microwaveable Snacks
The Base for Burritos
38% Use Frozen Hot Entrees/Snacks Blacks Are Prime Segment for Breakfast Entrees/Sandwiches

II. THE MARKET

Market Definition
Scope of Report
Bread or Dough Plus Filling or Topping Portable and Anytime
Hand-Held and Hot
Single-Serve, Pick-Up Products Beyond the Table

History of the Market
Hand-Held Foods as Traditional Fare
Enter the Microwave Oven

Product Categories
Two Product Categories
Entrees Are Core of Market
Stuffed Sandwiches/Wraps
Hand-Held Mexican Foods
Sandwiches on a Bun, Biscuit, or Bagel Breakfast Sandwiches
Corn Dogs and Bagel Dogs Appetizers/Snack Rolls Round Out Market
Single-Serve vs Multi-Pack
The Refrigerated Option

Product Technology
Products Developed for Microwave Reheating
Pitfalls of the Microwave

The Need for New Technology
True Cook Plus+
A Crispier Future
A Safer Future
Figure 2-1: Total U S Retail Sales of Hand-Held Foods, 1995-1999 (dollars)

Market Size and Growth
Methodology of Sales Estimates
Table 2-1: U S Retail Sales of Hand-Held Foods by Category, 1995-1999 (dollars): Entrees, Appetizers/Snack Rolls
Retail Dollar Sales Top $1 6 Billion in 1999

Market Composition
Entrees Are Two-Thirds of Market
Figure 2-2: Share of U S Retail Sales of Hand-Held Foods by Product Category, 1995 vs 1999 (percent): Entrees, Appetizers/Snack Rolls
Frozen Foods Constitute 92% of Sales
Frozen Entrees at 60%
Table 2-2: Share of U S Retail Sales of Hand-Held Foods: Frozen vs Refrigerated, 1995 vs 1999 (percent): 4 Classifications
Food Stores Corner 87% of Market
Figure 2-3: Share of U S Sales of Hand-Held Foods by Retailer Type, 1999 (percent): Foods Stores, Convenience Stores, Other Snacking Picks Up in Winter Months
Regional Skews to the Market
Table 2-3: Regional Distribution of Hand-Held Foods Purchasers by Product Type, 1998 (percent): 13 Factors

Factors to Market Growth
The Right Time for Hand-Helds
Sales Growth and the Graying of America
Table 2-4: Projections of U S Households by Age of Householder, 1999-2004 (number and percent): From Age Under 25 to Age 75 and Older Anytime, Anyplace Appeal
Home Cooked?
Snackers and Grazers
Kids, Teenagers a Driving Force
Hand-Held and Good for You?
Kid Appeal vs Taste Appeal
Ethnic and Product Diversity
Breakfast a Bright Spot
A Hand with Entertaining

Frozen vs. Freeway Foods
Competition Across the Aisles
No Place Like Home
Freezer Crunch a Factor
Figure 2-4: Projected U.S. Retail Sales of Hand-Held Foods, 1999-2004 (dollars)

Projected Market Growth
Sales to Exceed $2 3 Billion by 2004
Table 2-5: Projected U S Retail Sales of Hand-Held Foods by Category, 1999-2004 (dollars): Entrees, Appetizers/Snack Rolls
Entree Growth at 6%
9% Gains for Appetizers/Snack Rolls

III. THE MARKETERS

Marketer Overview
Over 300 Marketers
Chef America Is Largest Player
Other Major Marketers
Marketers of Mexican-Style Specialties
Competing in Chinese
Other International Specialty Marketers
Vegetarian Marketers
Recent Mergers and Acquisitions
Kraft as Hold-Out
Table 3-1: Selected U S Marketers and Brands of Hand-Held Foods (66 Marketers and Their Brands/Products)

The Competitive Situation
Market Somewhat Fragmented
Chef America Garners 25% of Supermarket Sales
Figure 3-1: Leading U S Marketers of Hand-Held Foods by Share of Supermarket Sales, 1999 (percent): 5 Marketers, Other
Chef America Claims 46% Entree Share
Figure 3-2: Leading U S Marketers of Hand-Held Frozen Entrees by Share of Supermarket Sales, 1999 (percent): 4 Marketers, Other
Pillsbury Claims 45% of Frozen Appetizer/Snack Roll Sales
Figure 3-3: Leading U S Marketers of Hand-Held Frozen Appetizers/Snack Rolls by Share of Supermarket Sales, 1999 (percent): 5 Marketers, Other
The Major Supermarket Brands
The Impact of Minor Marketers
Profiles of Selected Marketers

Competitive Profile: Amy's Kitchen, Inc
Company Overview
Mixing Business and the Environmental
Natural Sector and Mainstream Distribution
Many Products Hand-Held
Future Prospects

Competitive Profile: Chef America, Inc
Company Overview
The Chef America Formula
Finding and Filling a Niche
Number One in Advertising
Keeping Up the Product Line
Making a Good Thing Last

Competitive Profile: ConAgra, Inc
Company Overview
Up and Down the Food Chain
A Stable of Brands
Recent Acquisitions
Hand-Held Sales Look Bleak
Regaining a Focus
A Brighter Future for Hand-Helds

Competitive Profile: Diageo Plc/Pillsbury Co
Company Overview
The Pillsbury Brands
The Pillsbury Recipe
Leader of the Snack
Growing the Hand-Held Lineup

Competitive Profile: H J Heinz Co
Company Overview
Old and New at Heinz
Varieties of Heinz
Building on Bagel Bites
On-the-Go! with Weight Watchers

Competitive Profile: Hormel Foods Corp
Company Overview
Spam and Beyond
The Hormel Brands
Quick Meal Offers Convenience
Competing with the Big Guns

Competitive Profile: Kellogg Co /Worthington Foods, Inc
Company Overview
Labels and Products
Worthington in Wal-Mart
A Growing Customer Base
Kellogg's Plans for Worthington

Competitive Profile: Sara Lee Corp
Company Overview
Diversification
The Meats and Bakery Division Food Brand Management
Sara Lee as a Hand-Held Marketer

Competitive Profile: Schwan's Sales Enterprises, Inc
Company Overview
Divisions and Hand-Held Products Fueling the Demand for Convenience

Competitive Profile: White Castle System, Inc
Company Overview
Building a Brand
Growth Through Vending
Promotional Program

Competitive Briefs
Anchor Food Products, Inc
Camino Real Foods, Inc
Delimex
IBP, Inc
Ruiz Food Products, Inc
J R Simplot Co
Vlasic Foods International, Inc

Marketing and New Product Trends
Establishing a Retail Zone
Reaping Sales in Secondary Outlets From Selling to Vending
Buying in Bulk
Size Matters
Pizza Spin-Offs Are Sure Hit
Hand-Helds Head for the Border
Fusion Products in Fashion
Oriental Influences
Making Way for Sandwiches

Scrambling for Breakfast Sales
It's All in the Name
Minding the Microwave
Heartier vs. Healthier
Natural Food Selections Continue to Increase Sales New Product List
Table 3-2: The U S Market for Hand-Held Foods: Selected New Product Introductions, 1998 - Winter 1999

Consumer Advertising and Promotion
Chef America Is Top Advertiser
Pillsbury Heads Second Tier of Advertisers
Other Advertisers
Cable Television Targets Niche Audience
Easy Family Food
A Case for Flavor
Addressing the Downsides
Angling for the Natural Crowd
Coupons Most Popular Promotion Tool
In-Store Demos and Tie-Ins
Sweepstakes and Merchandise Give-Aways
Examples of Consumer Advertising

Trade Advertising and Promotion
Venues and Formats
Promotions Are Standard
Co-Op Offers
Trade Shows Are Vital
Examples of Trade Advertising

IV. DISTRIBUTION AND RETAIL

At the Distribution Level
Two Main Methods of Distribution
Warehouse Delivery
Direct Store Delivery
Advantages of Warehouse Delivery
Disadvantages of Warehouse Delivery
Advantages of Direct Store Delivery
Disadvantages of Direct Store Delivery
Smaller Marketers Frequently Work Through Brokers Vending Machine Delivery

At the Retail Level
Food Stores Garner 87% of Sales
Convenience Stores Lead Among Secondary Outlets
Table 4-1: Share of U S Sales of Hand-Held Foods by Retailer Type, 1999 (percent): 5 Retailer Types
Channel Blurring
Price Points Range from Under $1 to $10
Prices Average $1-$4 in Supermarkets
Table 4-2: Typical U S Retail Prices for Selected Hand-Held Food Products, Winter 1999

Retail Focus: Food Stores
Overview of Channels
Supermarkets Claim Lion's Share of Sales
Supermarket Merchandising Varies
Refrigerated Items Housed in Deli
Supermarket Margins
Promoting Foot Traffic
Promoting the Snack Attack
The Snack Zone
Freezer and Refrigerator Space a Zero-Sum Game for Entrees Slotting Fees
Wal-Mart: Taking Over?
Kmart Keeping Step
Supermarkets Strike Back
Space Constraints in the Natural Sector

Retail Focus: Alternative Outlets
Hand-Held and the "Other" Retail Outlet
Convenience Store Overview
Convenience Stores as Hand-Held Contenders
C-Store vs Drugstore vs Supermarket
The C-Store Foodservice Push
A Learning Curve for Dashboard Dining
Drugstores on the Move
Hand-Helds in Drugstores
Drugstores and the Competition
Warehouse Club Overview
Warehouse Club Prices and Packs
Warehouse Clubs and Private Customers
Warehouse Clubs and Hand-Held Foods
Supermarkets Strike Back
Vending Machines Expand Reach
Vending Machines as Hand-Held Purveyors

Refrigerated vs. Frozen Vending
Bullish on Breakfast
Price Hurdles
The Next Century and Shopping Online

V. THE CONSUMER

Overview of Consumer Data
Note on Simmons Market Research Bureau Data
Simmons Data on Hand-Held Foods
Overview of Consumer Patterns

Consumer Use by Product Type
56% Use Microwave Food Products
Who's Big on Burgers
Downscale Demographics for Microwaveable Sandwiches
Microwaveable Breakfasts in 10% of Households
White-Collar Skew to Microwaveable Snacks
The Base for Burritos
38% Use Frozen Hot Entrees/Snacks
Hot vs Lean Pockets
Bagel Bites Draw 11% of Principal Shoppers
Chun King vs La Choy Egg Rolls
Other Hot Entrees/Snacks by Brand
Blacks Are Prime Segment for Breakfast Entrees/Sandwiches
Breakfast Entrees vs Breakfast Sandwiches
Breakfast Entrees by Usage Level
Jimmy Dean, Swanson Draw 5% of Shoppers