Leading brands from every segment of the frozen pizza category are setting a torrid pace in rolling out new products and kid-friendly promotions designed to make their pizza downright irresistible.
Kraft, Schwan's, Totino's and some newer entries are catering to just about every conceivable consumer demand for specific crusts, toppings, easy preparation and good value, along with additional product features like the newest all-natural choices from Ian's Natural Foods and Health is Wealth Foods.
With their rapid responses to consumer demands for new kinds of pizza, decision makers are approaching the category with the kind of enthusiasm often reserved for ground floor opportunities in emerging categories, rather than the $2.5 billion behemoth that is frozen pizza.
In June, DiGiorno introduced its Microwave Thin Crispy Crest Pizza in Supreme, Pepperoni, Four Cheese, and Grilled Chicken and Vegetables. This newest entry follows two other launches this spring: the California Pizza Kitchen Crispy Thin Crust, in Sicilian, Margherita, and White Pizza, and the South Beach Diet Frozen Pizzas, in Deluxe, Four Cheese, Pepperoni, and Grilled Chicken & Vegetable.
From Schwan's this spring comes its Red Baron Thin Crust, under the new Red Baron Gold Edition label, in six varieties: Ultimate Pepperoni, Five Cheese, Italian Sausage & Pepperoni, Meat Trio, Mozzarella, Tomato & Basil, and Supreme. Also new are Red Baron Stuffed Slices in two new varieties, Ham and Cheese, and Philly Steak and Cheese. These newest stuffed slices are an addition to four other varieties, and all six are microwavable in two minutes. Tony's Pizza For One has added a Four Cheese Pizza with Italian Herbs to its extensive lineup of more than a dozen other Tony's choices. Freschetta Hand-Tossed Style, formerly known as its Rising Crust, recently introduced two new 12-inch Hand-Tossed flavors: Three Cheese, Tomato and Basil, and Canadian Bacon and Pineapple. Freschetta's Hand-Tossed line also offers seven earlier introductions.
General Mills' Totino's Crispy Crust Party Pizza is offering 10 different varieties, from Canadian-Style Bacon, Cheese, and Hamburger to Mexican and several traditional pizzas like Pepperoni, Sausage and Three Cheese. This year, Totino's is continuing its marketing and promotional programs for morns and kids by leveraging the appeal of major Hollywood movies like 'Madagascar,' 'Shrek 2,' and the earlier 'Shark Tale.'
Ian's Natural Foods, based in Revere, Mass., continues to expand its distribution, building on its nationwide distribution with Whole Foods Market and Wild Oats and increased acceptance by major chains in regional markets. The company's 'healthy eating and healthy living' philosophy is represented in the pizza category by its 4 Cheese Pizza, Cheese Pizza Slices, and a Pizza Meal, complete with pizza, corn, strawberry applesauce and a ready-bake brownie for kids. The company recently discontinued its two low-carb offerings, citing saturation in that segment.
From Health Is Wealth Foods, headquartered in Williamstown, N.J., come its first frozen pizzas. The company's two all-natural varieties are a 4 Cheese Pizza and a Mexican Quesadilla pizza. Both were introduced in February and went into distribution in May in Wild Oats, along with some placement in major supermarket chains in the Atlanta region, and approvals from other chains expected shortly. Following up on those initial launches, the company is already looking at two other all-natural varieties for later this year, including one with vegetable toppings.
All this activity and investment within the category by the leading brands, in the form of so many new products and many ambitious marketing and promotional programs, suggests that their commitment and confidence in its prospects for continued growth remains unwavering.
Executives from top brands in the category point to category growth of 3% to 4% or higher as evidence of its strong performance and its potential to generate more of the same. And they cite individual sales results that are significantly higher. They also suggest that overall sales results for the category are, in fact, higher when Wal-Mart's Superstore results are added to the supermarket industry's average.
'We see continued growth in the frozen pizza category that is encouraging,' says Sean Marks, category business director for Kraft Pizza Company. 'In fact, there has been about a 4 percent increase in overall dollar sales in the category (according to recent ACNielsen data) demonstrating America's passion for pizza is still strong. And remember that frozen pizza only has about 10 percent of the $20 billion carryout-delivery segment, and as well, its household penetration is only at 68 percent compared to 85 percent for carryout-delivery.'
At The Schwan Food Company, Brian Nan, vice president of product strategy, is equally upbeat about the category's current growth and its potential for more of the same. 'Our data suggests the category is still growing--at about 3 percent versus last year. Innovation plays such an important role in this category--true innovation, the kind that brings new users in the category. We are seeing the most growth, about 6.8 percent, in the superpremium segment, which is great because it shows that people see the quality and respond.'
Totino's reports 'very strong growth' in the value segment. As Mariana Quiroga, marketing manager, explains, 'Totino's has been very successful in the last three years. The keys to our success are definitely value--a low-price pizza with great taste--and the second point is convenience. We offer a lower price point with a lower ring, but with fast turns. The value of Totino's on the shelf is huge. We have seen some retailers experiment with Totino's by taking down their margins and they have seen phenomenal growth.'
The Health Is Wealth brand is developing a niche consisting of all-natural pizzas, with interesting toppings, and price points that make its products 'inexpensive but not cheap,' says Mike Boggs, director of sales. 'We have found it easier to get placement with more than one item. And distribution has picked up with both pizzas, the 4-Cheese and the Mexican Quesadilla. Everyone we have talked with about these products has said they want both of them.'
Schwan's Red Baron and Tony's brands were supported this spring with a 'Go Outside and Play!' program that consisted of 'mom appeal' in the form of simple meal solutions that kids can fix for themselves, and 'kids appeal' in which youngsters were encouraged to try 'new, engaging, and old school outdoor games,' and receive a BoomBall by eating selected Red Baron and Tony's pizza snacks. Program support included an FSI and point-of-purchase materials.
Totino's continues to build on its kid connections by leveraging the appeal of big-time movies like 'Madagascar,' 'Shrek 2' and 'Shark Tail.' 'These are equities that are loved by kids. We use our packaging and coupons as incentives to buy more pizza. Our key promotional programs have been focused on families with kids,' says Quiroga.
Ian's Natural Foods will launch a campaign against childhood obesity in the fall called 'I'm a Superfit Kid.' 'Kids earn points by buying our products and they also earn points through activities like joining Little League or doing a charity walk. The program emphasizes health eating and healthy living. It's intended to get kids off the couch and off the computer, with prizes based on the points they have earned ranging from visors, T-shirts and back packs to video games,' explains Clair Sidman, associate director of marketing.
'We're going to be doing a lot of print advertising, on-pack advertising, and provide details on our packaging about how to get a membership kit. We will also have an 'I'm a Superfit Kid' web page that will be linked to our Ian's website,' she adds.
Marketers say retailers are doing a solid job on merchandising and assortment in the category. 'We are not recommending any significant shifts in assortments,' says Nan. 'We are encouraging retailers to move their pizza snack section next to the pizza section if they have not already done that. The biggest thing we are doing is looking at ways to drive people down the frozen food aisle. We want to introduce points of interruption that will cause the consumer to go down that section. We are using Floorgraphics and point-of-purchase materials outside the frozen food aisle, near snacks and beverages, as a point of interruption in their shopping. The opportunity for increased sales is huge if we can give more people more reasons to have frozen pizza on hand.'
Totino's sees fertile ground for increased sales in the value segment. 'Retailers should pay attention to the fast turns and the volume in this segment by having a variety of flavors that offer value and quality. They should also merchandise in multiples, like offering five pizzas for $5. Their customers will end up eating a lot more pizza when they have it in their freezer,' says Quiroga.
Marks, at Kraft Pizza Company, identifies several key product issues that are continuing to drive growth. They range from convenience, variety, and health and wellness.
