The Products

• Market Definition
• Seven Product Categories
• Category Definitions Blurring

The Market

• Market Size and Growth
• Table 1-1: The US Market for Prepared Frozen Foods: Estimated Retail Sales by Product Category, 1994-2003 (dollars): 7 Product Categories
• Factors Affecting Market Growth
• Market to Top $133 Billion by 2003
• Market Composition by Product Category
• Figure 1-1: The US Market for Prepared Frozen Foods: Sales by Product Category, 1997 vs 1998 (percent): 7 Product Categories

The Marketers

• Major Marketers
• The Competitive Situation
• Industry Trends
• Marketers Spend $237 Million on Advertising

Distribution and Retail

• At the Distribution Level
• Supermarkets Dominate Sales
• Freezer Space and Slotting Fees

The Consumer

• The Consumer
• 44% of Principal Shoppers Buy Frozen Dinners
• Frozen Entree Users
• Pizza the Most Widely Used Prepared Frozen Food
• Frozen Pies/Cakes/Pastries
• Frozen Waffles/Pancakes/French Toast
• Frozen Breakfast Entrees
• Frozen Appetizers and Snacks

Scope and Methodology

• Scope of Market
• Report Methodology

II THE PRODUCTS

Scope of Report

• Market Definition
• Focus on Products Sold Through Supermarkets
• Background of Frozen Foods
• How Foods Are Frozen

Product Categories

• Seven Product Categories
• Category Definitions Blurring

Labeling Requirements

• Three Regulatory Agencies
• The FDA
• The USDA
• Food Labeling Basics
• Nutrition Labeling
• Exemptions to Nutrition Labeling
• Marketing Claims
• Table 2-1: Allowable Food Claims
• Exceptions for Main Dishes and Meals
• Allowable Health Claims

III THE MARKET

• Figure 3-1: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Overall Market, 1994-1998 (dollars)

Market Size and Growth

• Methodology for Estimates
• Retail Sales Top $10 Billion in 1998
• Table 3-1: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Overall Market, 1994-1998 (dollars)
• Frozen Dinners and Entrees Leap to $44 Billion
• Table 3-1a: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Dinners and Entrees, 1994-1998 (dollars)
• Frozen Pizza Continues March to $21 Billion
• Table 3-1b: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Pizza, 1994-1998 (dollars)
• Frozen Baked Goods Stagnate at $11 Billion
• Table 3-1c: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Baked Goods, 1994-1998 (dollars)
• Frozen Breakfast Foods Top $885 Million
• Frozen Hand-Held Entrees Jump to $813 Million
• Table 3-1d: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Breakfast Foods, 1994-1998 (dollars)
• Table 3-1e: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Hand-Held Entrees, 1994-1998 (dollars)
• Frozen Appetizers and Snacks Advance Rapidly to $411 Million
• Table 3-1f: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Appetizers and Snacks, 1994-1998 (dollars)
• Frozen Side Dishes and Value-Added Vegetables Shrink to $365 Million
• Table 3-1g: The US Market for Prepared Frozen Foods: Estimated Retail Sales of Side Dishes and Value-Added Vegetables, 1994-1998 (dollars)

Market Composition

• Dinners and Entrees Account for 44% of Dollar Sales
• Table 3-2: The US Market for Prepared Frozen Foods: Share of Sales by Product Category, 1997 vs 1998 (percent): 7 Product Categories
• Cakes the Largest Segment of Frozen Baked Goods
• Waffles Account for 65% of Frozen Breakfast Foods
• Prepared Frozen Foods Sold in Wide Range of Channels
• Supermarkets the Dominant Retail Outlet
• Table 3-3a: Share of US Dollar Sales of Prepared Frozen Foods by Distribution Channel and Product Category, 1996 (percent): 7 Channels
• Table 3-3b: Share of US Dollar Sales of Prepared Frozen Foods by Distribution Channel and Product Category, 1996 (percent): 7 Channels
• Regional Differences
• Consumers in East Central Region Most Likely to Use Frozen Dinners and Entrees
• Table 3-4a: Use of Frozen Dinners and Entrees by Region, 1998 (percent and index): 6 Regions
• Consumers in West Central Region Most Likely to Use Frozen Pizza
• Table 3-4b: Use of Frozen Pizza and Appetizers/Snacks by Region, 1998 (percent and index): 6 Regions
• Frozen Sweet Baked Goods Show Regional Skews
• Table 3-4c: Use of Frozen Pies, Cakes, and Pastries by Region, 1998 (percent and index): 6 Regions
• Northeasterners Most Likely to Use Frozen Waffles; Southerners Indicated for Frozen Breakfast Entrees
• Table 3-4d: Use of Frozen Breakfast Foods by Region, 1998 (percent and index): 6 Regions
• Winter Favors Sales of Prepared Frozen Foods

Factors to Market Growth

• Demographic, Lifestyle Trends Creating Increased Opportunities
• Competition from Restaurant Take-Out
• Competition from Home Meal Replacements
• Frozen Foods Attractively Priced
• Buy Now, Eat Later
• Freshening Up the Frozen Image
• Ethnic Flavors Boosting Sales
• Tight Freezer Space a Perennial Problem
• Aggressive Marketing
• Product Innovation Drives Growth
• Factors Affecting Frozen Dinners and Entrees
• Factors Affecting Frozen Pizza
• Factors Affecting Frozen Baked Goods
• Factors Affecting Frozen Breakfast Foods
• Factors Affecting Frozen Hand-Held Entrees
• Factors Affecting Frozen Appetizers and Snacks
• Factors Affecting Frozen Side Dishes and Value-Added Vegetables
• Figure 3-2: The US Market for Prepared Frozen Foods: Projected Retail Sales of Overall Market, 1998-2003 (dollars)

Market Projections

• Retail Sales to Top $133 Billion in 2003
• Table 3-5: The US Market for Prepared Frozen Foods: Projected Retail Sales of Overall Market, 1998-2003 (dollars)
• Frozen Dinners and Entrees Will Near $58 Billion
• Table 3-5a: The US Market for Prepared Frozen Foods: Projected Retail Sales of Dinners and Entrees, 1998-2003 (dollars)
• Frozen Pizza to Reach $30 Billion
• Table 3-5b: The US Market for Prepared Frozen Foods: Projected Retail Sales of Pizza, 1998-2003 (dollars)
• Frozen Baked Goods to Approach $13 Billion
• Table 3-5c: The US Market for Prepared Frozen Foods: Projected Retail Sales of Baked Goods, 1998-2003 (dollars)
• Frozen Breakfast Foods Top $10 Billion, But Growth Uneven
• Table 3-5d: The US Market for Prepared Frozen Foods: Projected Retail Sales of Breakfast Foods, 1998-2003 (dollars)
• Frozen Hand-Held Entrees Will Approach $13 Billion
• Table 3-5e: The US Market for Prepared Frozen Foods: Projected Retail Sales of Hand-Held Entrees, 1998-2003 (dollars)
• Frozen Appetizers and Snacks Will Grow to $662 Million
• Table 3-5f: The US Market for Prepared Frozen Foods: Projected Retail Sales of Appetizers and Snacks, 1998-2003 (dollars)
• Frozen Side Dishes and Value-Added Vegetables on Losing Streak to $322 Million
• Table 3-5g: The US Market for Prepared Frozen Foods: Projected Retail Sales of Side Dishes and Value-Added Vegetables, 1998-2003 (dollars)

IV THE MARKETERS

The Marketers

• Hundreds of Marketers
• Market Dominated by Food Giants
• Most Major Marketers Publicly Owned
• Major Privately Owned Marketers
• Significant Minor Marketers
• Most Compete in Only a Few Product Categories
• Many Marketers Offer Multiple Brands
• Recent Mergers, Acquisitions, and Divestitures
• Table 4-1: Leading Prepared Frozen Foods Marketers and Their Brands by Product Category (51 Marketers and Their Brands)

Marketer and Brand Shares

• Data Based on Supermarket Sales
• Nestlé Edges Out ConAgra to Lead Overall Market
• Led by Kraft and Pillsbury, Six Marketers Comprise Second Tier
• Six Other Marketers Claim Shares of 1% or More
• Nestlé, ConAgra Lead Frozen Dinners and Entrees
• Kraft Leads in Frozen Pizza
• Frozen Baked Goods Fragmented
• Kellogg Dominates Frozen Breakfast Foods
• Chef America Dominates Frozen Hand-Held Entrees
• Pillsbury and Heinz Head Frozen Appetizers and Snacks List
• Pillsbury Leads Side Dishes and Value-Added Vegetables
• Table 4-2: Share of US Prepared Frozen Foods Market by Marketer and Brand, 1997 vs 1998 (percent): 14 Marketers/34 Brands, All Other Brands, Private Label
• Table 4-3: Share of US Frozen Dinners and Entrees Market by Marketer and Brand, 1997 vs 1998 (percent): 9 Marketers/17 Brands, All Other Brands, Private Label
• Table 4-4: Share of US Frozen Pizza Market by Marketer and Brand, 1997 vs 1998 (percent): 8 Marketers/15 Brands, All Other Brands, Private Label
• Table 4-5: Share of US Frozen Baked Goods Market by Marketer and Brand, 1997 vs 1998 (percent): 12 Marketers/18 Brands, All Other Brands, Private Label
• Table 4-6: Share of US Breakfast Foods Market by Marketer and Brand, 1997 vs 1998 (percent): 9 Marketers/12 Brands, All Other Brands, Private Label
• Table 4-7: Share of US Frozen Hand-Held Entrees Market by Marketer and Brand, 1997 vs 1998 (percent): 12 Marketers/19 Brands, All Other Brands, Private Label
• Table 4-8: Share of US Frozen Appetizers and Snacks Market by Marketer and Brand, 1997 vs 1998 (percent): Marketers/16 Brands, All Other Brands, Private Label
• Table 4-9: Share of US Frozen Side Dishes and Value-Added Vegetables Market by Marketer and Brand, 1997 vs 1998 (percent): 10 Marketers/17 Brands, All Other Brands, Private Label

The Competitive Situation

• Ways to Get Ahead: Mergers, Acquisitions, and Divestitures
• The Importance of Smaller Companies
• Private Label

Company Profile: Aurora Foods, Inc

• Corporate Background
• Aunt Jemima Awakens
• Celeste Pizza Warehouse-Delivered

Company Profile: Chef America, Inc

• Corporate Background
• Involvement in Frozen Foods
• Competitive Strategies

Company Profile: ConAgra, Inc

• Corporate Background
• Broad Involvement in Frozen Foods
• Healthy Choice
• Marie Callender's
• ConAgra Pushing Skillet Meals
• ConAgra Repackages Ethnic Frozen Food Brands
• ConAgra Launches Health Foods Line

Company Profile: Flowers Industries, Inc/Mrs Smith's Bakeries, Inc

• Corporate Background
• Mrs Smith's Bakeries
• Stable Management
• Operation 365
• Leveraging the Mrs Smith's Brand Name

Company Profile: HJ Heinz Co

• Corporate Background
• Heinz Integrates Frozen Food Unit
• Weight Watchers
• Repositioning Weight Watchers
• Budget Gourmet
• Ore-Ida

Company Profile: Kellogg Co

• Corporate Background
• Eggo Waffles
• New Value Strategy
• Lender's Bagels
• Kellogg to Launch Line of "Functional Foods"

Company Profile: Kraft Foods, Inc

• Corporate Background
• The Leader in Frozen Pizza
• DiGiorno Rising Crust Pizza Rolled Out in 1996
• Tombstone Updated in 1997 and 1998
• Jack's Brand Acquired in 1992
• California Pizza Kitchen Line in Test

Company Profile: Nestlé USA, Inc

• Corporate Background
• Stouffer's and Stouffer's Lean Cuisine
• Heavy Advertising Support
• Real Home Cooking Contest
• Family Packs
• Nestlé Debuts Skillet Sensations
• Nestlé Testing Ortega

Company Profile: The Pillsbury Co

• Corporate Background
• Broad Frozen Foods Involvement
• Frozen Pizza, Appetizers, and Snacks
• Frozen Breakfast Foods and Baked Goods
• The Jolly Green Giant

Company Profile: Sara Lee Corp

• Corporate Background
• Outsourcing Some Products
• Sara Lee Bakery
• New Twists in Cheesecake
• Sara Lee Bagels
• Jimmy Dean and Other Brands

Company Profile: Schwan's Sales Enterprises, Inc

• Corporate Background
• Number Two in Frozen Pizza
• Schwan's Launches Freschetta
• Other Schwan's Products and Labels

Company Profile: Vlasic Foods International, Inc

• A Spin-Off of Campbell Soup
• Re-Casting Swanson

Marketing Trends

• Leveraging Brand Equity
• Value Positioning, Premium Positioning
• The Homestyle Theme
• Dinners, Entrees, or Meals?

Product Trends

• Reformulations, Improved Quality
• Ethnic Flavors
• Mexican Foods
• Oriental Flavors
• Nutraceutical Foods
• Product Trends by Product Category: Frozen Dinners and Entrees
• Frozen Meal Kits
• Traditional Frozen Dinners and Entrees
• Children's Meals
• Product Trends by Product Category: Frozen Pizza
• Product Trends by Product Category: Frozen Baked Goods
• Frozen Bread and Bagels
• Frozen Cakes, Pies, and Sweet Baked Goods
• Product Trends by Product Category: Frozen Breakfast Foods
• Product Trends by Product Category: Frozen Hand-Held Entrees
• Product Trends by Product Category: Frozen Appetizers and Snacks
• Product Trends by Product Category: Frozen Side Dishes and
• Value-Added Vegetables
• Table 4-10: US Market for Prepared Frozen Foods: Selected New Product Introductions, 1998-1999

Packaging and Technology

• Individual Quick Freeze Technology
• True Cook+ Microwave Operating System

Consumer Advertising Expenditures

• 1998 Ad Expenditures Near $237 Million
• Kellogg Top Advertiser, Followed by Pillsbury, Kraft, and Nestlé
• Pillsbury, Chef America, ConAgra in Second Tier
• Other Major Advertisers
• Television Is Medium of Choice

Consumer Advertising Positioning

• Ads Emphasize Taste and Convenience
• "Real" Foods
• The Nostalgia Appeal
• Eating Smart
• As Good As a Pizzeria
• A Saucy Little Number
• Leggo My Eggo
• Targeting Moms for Kids
• Examples of Consumer Advertising

Consumer Promotions

• Merchandising Promotions Common
• Coupons
• Rebates
• Price Reductions and Bonus Packs
• Joint Promotions
• Sampling
• Contests and Sweepstakes
• Merchandise Offers
• National Frozen Food Month
• Sports Tie-Ins
• Road Shows and Other Events
• Examples of Consumer Promotions

Trade Advertising and Promotion

• Trade Advertising
• Trade Promotions

V DISTRIBUTION AND RETAIL

At the Distribution Level

• Two Main Methods of Distribution
• Warehouse Delivery
• Direct Store Delivery
• Logistics Costs

Retail

• Supermarkets the Dominant Retail Channel
• Health and Natural Foods Stores
• Warehouse Clubs Growing in Clout
• Mass Merchandisers and Drugstores
• Convenience Stores
• Vending Machines
• Consumer-Direct Shopping

At the Retail Level

• Freezer Space at a Premium
• Slotting Fees
• Changing Space Allocations
• Pizza Benefits from More Shelf Space
• Moving the Frozen Food Aisles
• Mobile Cases and Outpost Locations
• Doors, Coffins, or Multi-Decks
• More User-Friendly Cases
• Making the Aisle More Inviting
• Retail Margins

VI THE CONSUMER

The Consumer

• Notes on Simmons Market Research Bureau Data
• Simmons Data on Prepared Frozen Foods
• Overview of Consumer Patterns
• User Characteristics Vary
• 44% of Principal Shoppers Use Frozen Dinners
• Frozen Dinners by Brand
• 36% of Principal Shoppers Use Frozen Entrees
• Frozen Entrees by Brand
• 57% of Principal Shoppers Use Frozen Pizza
• Frozen Pizza by Brand
• 36% of Principal Shoppers Buy Frozen Pies/Cakes/Pastries
• Frozen Pies, Cakes, and Pastries by Brand
• 47% of Principal Shoppers Buy Frozen Waffles/Pancakes/French Toast
• Frozen Waffles/Pancakes/French Toast by Brand
• 13% of Principal Shoppers Use Frozen Breakfast Entrees
• Frozen Breakfast Entrees by Brand
• 38% of Principal Shoppers Use Frozen Appetizers and Snacks
• Frozen Appetizers and Snacks by Brand
• Table 6-1: Consumer Overview of Prepared Frozen Foods by Selected Product Segments, 1998 (% Principal Shoppers, Median Age, Median Household Income)
• Table 6-2: Demographic Characteristics Favoring Use of Frozen Dinners: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-3: Demographic Characteristics Favoring Purchase of Frozen Dinners by Brand, 1998 (Principal Shoppers): Swanson, Banquet, Healthy Choice
• Table 6-4: Demographic Characteristics Favoring Use of Frozen Entrees: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-5a: Demographic Characteristics Favoring Purchase of Frozen Entrees by Brand, 1998 (Principal Shoppers): Banquet, Stouffer's, Swanson
• Table 6-5b: Demographic Characteristics Favoring Use of Frozen Entrees by Brand: Budget Gourmet vs Weight Watchers, 1998 (Principal Shoppers)
• Table 6-6: Demographic Characteristics Favoring Use of Frozen Pizza: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-7a: Demographic Characteristics Favoring Use of Frozen Pizza by Brand: Tombstone vs Totino's, 1998 (Principal Shoppers)
• Table 6-7b: Demographic Characteristics Favoring Use of Frozen Pizza by Brand: Red Baron vs Tony's, 1998 (Principal Shoppers)
• Table 6-8: Demographic Characteristics Favoring Use of Frozen Pies/Cakes/Pastries: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-9: Demographic Characteristics Favoring Purchase of Frozen Pies, Cakes, and Pastries by Brand, 1998 (Principal Shoppers): Sara Lee, Mrs Smith's, Pepperidge Farm
• Table 6-10: Demographic Characteristics Favoring Use of Frozen Waffles/Pancakes/French Toast: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-11: Demographic Characteristics Favoring Purchase of Frozen Waffles/Pancakes/French Toast by Brand, 1998 (Principal Shoppers): Eggo, Aunt Jemima, Downyflake
• Table 6-12: Demographic Characteristics Favoring Use of Frozen Breakfast Entrees: All Users vs Heavy Users, 1998 (Principal Shoppers)
• Table 6-13: Demographic Characteristics Favoring Use of Frozen Breakfast Entrees by Brand: Jimmy Dean vs Swanson Great Starts, 1998 (Principal Shoppers)
• Table 6-14: Demographic Characteristics Favoring Purchase of Frozen Appetizers and Snacks by Brand, 1998 (Principal Shoppers): All, Hot Pockets, Bagel Bites

Consumer Behavior

• NFFA Survey Identifies Five Consumer Groups
• What Consumers Want

APPENDIX I: EXAMPLES OF CONSUMER ADVERTISING AND PROMOTIONS

APPENDIX II: ADDRESSES OF SELECTED MARKETERS