09Dec2010
ASIAN FOODS SOAR
Frozen Asian entrees rose 8.3% to $582.0 million in the 52 weeks ended Oct. 30, continuing a long rise that has lasted several years. The data, from The Nielsen Company, includes sales from supermarkets with annual sales of $2 million and over, but does not count supercenters. (See chart.) The Nielsen Company provides a breakout specifically for the Asian segment, but does not provide brand data to the trade press. As luck would have it, SymphonyIRI Group, the Chicago-based market research firm, provides brand data but does not segment out Asian foods.
2 NEW BIG BRANDS
But knowing how much attention the trade has given to the launches by General Mills (Wanchai Ferry) and Unilever (in a licensing deal to produce frozen entrees with restaurant operator P.F. Chang), we took a look at the SymphonyIRI Group’s data for these brands and were not surprised by what we saw.
P.F. Chang’s Home Menu is already the fourthlargest supermarket brand within the multi-serve frozen dinner/ entrée category, according to SymphonyIRI. In the 12 weeks ended Oct. 3, the brand’s sales were $22,885,400. Since the brand was just launched this spring, there are no gains to report versus “last year” — the brand didn’t exist a year ago. P.F. Chang’s unit sales were 2,806,865 in the period covered, with equivalized volume at 3,859,439.
Wanchai Ferry posted a 63.9% gain for the 12 weeks, reaching $10,050,360. Units rose 77.0% to 1,507,737 and volume was up 77.0 to 2,261,605.
Market observers say consumers are responding well to innovative, higher-end products. Steamed items and new flavor profiles are also helping fuel growth.
Starting early next year, Santa Fe Springs, Calif.-based Day-Lee Foods (www.crazycuizine.com) will be adding new flavors to its Crazy Cuizine line, including Korean BBQ Chicken, Tangerine Beef, Teriyaki Beef, and Lemon Pepper Chicken. Recently, the company began the rollout of a new line of entrees called Purely Asian, featuring more protein and vegetables rather than sauce. The entrees are being made by expert chefs from the company’s parent, Japanbased Nippon Meat Packers, Inc.
Consumers are demanding more value for the dollar, notes James H. Johns, business director of Day- Lee’s processed foods division. He adds that some players in the Asian foods category are cutting corners with protein, vegetable, sauce and starch products, stretching them with cheap ingredients.
“However, like P.F. Chang, we are providing a center of the plate ‘real’ restaurant value with only protein and vegetables. I believe the consumer will realize the value in our offering,” he says.
EXTRA SALES Retailers stocking the Purely Asian line will have the opportunity to ring up extra sales of go-withs like rice or noodles, Johns points out. He expects Asian-flavor offerings to become increasingly popular.
“Current items center on Chinese- type dishes. However, there will be more offerings soon such as our already popular Teriyaki flavors and Korean BBQ Chicken, coming soon,” he says.
It’s clear that consumers are becoming more adventuresome with new cuisines. “People are looking for something different, which is not necessarily an Asian food, says Laura Black Grenmyr, brand manager, Kahiki Foods, Inc., Gahanna, Ohio (www.kahiki.com). From focus group research she conducts, Grenmyr has learned that frozen products offer an entry point into Asian foods for these explorer types, who are also likely to be less experienced at cooking from scratch.
“Asian recipes are difficult for people less experienced in the culinary arts,” says Grenmyr. In response to this research, her company recently rolled out two chicken SKUs of Spring Roll Bites, which are smaller appetizers that would be too difficult for the average person to make, but is one of their new taste finds.
“People will be indoors, hosting gatherings of friends,” says Grenmyr, “and tailgating during Super Bowl.” She agrees that the American palate appears to be changing and that shoppers are now more “attuned to different types of food.”
Thu Do, vp-marketing for International Do Foods/Spring Kitchen, New York (www.springkitchen.com), says that people like her company’s Vietnamese Spring Rolls for the same reason. “We introduced these items last year in response to consumer demand,” says Do, whose company has made egg rolls for years.
DEAN & DELUCA
“Consumers in this category value quality, taste and convenience,” says Do. Upscale retailer Dean and Deluca, New York, will offer catering platters and party platters this holiday season, featuring her company’s one-bite Autumn Rolls and four-bite Spring Rolls, according to Do. She suggests that supermarkets can also thaw these items and merchandise them in deli departments as components of party trays.
Johns believes retailers might benefit by focusing less on brand and more on type of food. “For instance, why cannot retailers offer a variety of brands at a selected price point, such as $5.99?” he asks. “This will give the consumer the option of picking up various brands for trial. Like in anything, the flavors that do not meet the preferences of the consumer will not get repeat sales and, thus, should be discontinued. There seem to be too many ‘dogs’ in the frozen shelf due to clout rather than demand by the consumer.”
Like several other manufacturers of Asian frozen foods, Johns would like to see dedicated sections in the department for Asian cuisine. After all, he points out, “There are already defined dry grocery shelves devoted to Asian, Mexican, or for that matter Thai/Indian foods these days. Why not do this kind of thing for Asian frozen? If consumers want Asian, then they can go to one area and pick their appetizers, entrees, and rice/starch, and enjoy a whole restaurant experience by going to one area of the store.”
Some observers believe retailers might be wise to merchandise foods by ethnicity. Retailers often merchandise frozen entrees in a separate area from frozen appetizers, which can result in co-mingling of ethnic products with other varieties. Another merchandising approach is to block products along ethnic food lines, which splits up appetizers and entrees.
Which is better? According to Kahiki’s Grenmyr, higher sales result from the ethnic blocking approach. “Advertising can also be targeted more easily,” she notes. “For example, an Asian Frozen Foods theme will draw people who are interested in convenience and are looking for that something different taste from Asian foods.”
Her premise: those shoppers will cross-buy if they can easily find other Asian products. All is not lost in those stores where ethnic products are split apart. Grenmyr recommends cross-promotion techniques to draw those shoppers to the other freezer doors.
Joyce Chen Foods (www.joycechenfoods. com), Acton, Mass., recently added QR (quick response) code graphics to its packaging. Shoppers carrying newer smart phones with scanning and data capture technology can go to a YouTube video of Stephen Chen, president and chief demonstrator. Chen shows consumers how to cook the product and which sauces to use. All in two minutes. Talk about quick!
According to Chen, this is one of the first on-package applications for the QR code, which has been getting a lot of press in the last few months. He expects to see more of these symbols show up on grocery shelves as manufacturers and retailers come up with new ideas for using this consumer communication technology. (If your cell phone is not equipped with scanning technology, you can see the video at www.youtube.com/ joychenfoods).
Chen’s video was spawned by a need to communicate something important to consumers. Many of the company’s frozen pot stickers can be cooked in just five minutes. Only trouble is, “People tend to find such a claim hard to believe or just don’t consider it possible,” he says. To prove his point, Chen took his case to YouTube.
FOLLOW THIS!
Facebook fans and followers are increasing in numbers daily. The question frequently asked: how can Facebook help sell more products? The answer is being explored by manufacturers like International Do Foods (www. springkitchen.com). Thu Do, vpmarketing, says “We use Facebook to announce new product introductions and appearances on HSN.” Do has people following her and sending emails. She also sends out Constant Contact email blasts.
At this point it is pure marketing communication for Do and her company. Certainly, some of her communication — and communications from other manufacturers — must be where consumers can buy their products. If you’re a retailer, pay attention to what manufacturers are doing in social media. Who is connecting with Facebook followers, what are they saying and what are they learning about how this impacts sales?
99 RANCH MARKET
These stores are the real deal. If you want to sell true Asian food to Asians, you might want to take a look at 99 Ranch Market (www.99ranch.com), a thriving chain with stores in California, Texas, Nevada and Washington. Its newest store opened just last month in Rancho Cucamonga, Calif., with 44,300 square feet and a wide variety of items from all over Asia. You can see the company’s fliers on Facebook, with product descriptions in both Chinese and English. (Photo of Edmonds, Wash., store by Wendy Rutenberg)
