>>stop presenting frozen food as a poor relation. ALF CARR, DIRECTOR-GENERAL, BRITISH frozen FOOD FEDERATION
Over recent years, the retail frozen food market has continued to grow an average of 4% a year and stands at £4bn when we include ice cream. I can’t think of another market sector in food which has enjoyed growth every year for the last 30 years. However, it still possesses totally unexploited potential if there could be a reduction of the unnecessary discounting of frozen foods by the retailers and a greater appreciation of the category’s products.
The recent demise of Hibernia Foods and the disappearance of Fishers last year should serve as a wake up call. The time has come for serious talks between producers and retailers about the future of the market and how it could play a more positive role.
Excessive discounting and price reductions are leading to the potential devaluation of the whole category, affecting consumer perceptions particularly in the more affluent socio-economic groupings. The multiples have done a fantastic job in establishing the market, but it is time for a new, more modern mindset from us all.
Much of the contemporary offering is far from just cheap and cheerful. There are some superb quality products in stores. And, make no mistake, frozen foods are profitable. Farmfoods increased its turnover 46% and doubled its profits in the last year and it basically only sells frozen foods.
It is time to address some consumer misperceptions such as quality, price and freezer space at home, if the category is to be prevented from being erroneously perceived as old-fashioned. Quality is much higher than many consumers perceive.
Recent research indicates there is a perception that products are processed and not natural. It is quite ironic that the consumers with this view are the same people who happily home freeze at least 30% of all their chilled food purchases by a vastly inferior process to commercial quick-freezing. In fact, many seasonal chilled products have already been previously frozen and many of the labels tell the consumers this.
There is also a dreadfully snobbish perception that because the frozen food specialists generally attract the less affluent shoppers, then by association, frozen food itself is downmarket.
These prejudices could be overcome with a top class information package and better product presentation to consumers. Many similar prejudices have been corrected by inspired communication, but it would take the whole supply chain to wholeheartedly participate for it to succeed.
On price, chilled foods are said to be perceived by more affluent consumers as only slightly more expensive than frozen. In reality, the cost difference between the two is quite staggering.
A recent survey by a major multiple indicated that a weekly basket of chilled products costing £48.17 was £13.64 more expensive than an equivalent basket of frozen foods which would cost only £34.53. It is doubtful whether shoppers would knowingly pay 40% more for chilled.
Putting snobbery aside, the savings at this level could give consumers a payback on a chest freezer within weeks, eliminating the excuse of lack of storage space which inhibits frozen food purchasing decisions.
The British Frozen Food Federation is convinced the time has come to address excessive discounting and undertake a redevelopment of the frozen food market. It is important that retailers and producers work harder to achieve a new perception of the category.
On the discounting issue, it is inevitable that, without action, suppliers’ margins, profits, innovation and quality enhancement will suffer to the detriment of producers, retailers and consumers alike. There is no need for discounts.
As a category, we must not allow ourselves - or others - to talk frozen foods down.
Over recent years, the retail frozen food market has continued to grow an average of 4% a year and stands at £4bn when we include ice cream. I can’t think of another market sector in food which has enjoyed growth every year for the last 30 years. However, it still possesses totally unexploited potential if there could be a reduction of the unnecessary discounting of frozen foods by the retailers and a greater appreciation of the category’s products.
The recent demise of Hibernia Foods and the disappearance of Fishers last year should serve as a wake up call. The time has come for serious talks between producers and retailers about the future of the market and how it could play a more positive role.
Excessive discounting and price reductions are leading to the potential devaluation of the whole category, affecting consumer perceptions particularly in the more affluent socio-economic groupings. The multiples have done a fantastic job in establishing the market, but it is time for a new, more modern mindset from us all.
Much of the contemporary offering is far from just cheap and cheerful. There are some superb quality products in stores. And, make no mistake, frozen foods are profitable. Farmfoods increased its turnover 46% and doubled its profits in the last year and it basically only sells frozen foods.
It is time to address some consumer misperceptions such as quality, price and freezer space at home, if the category is to be prevented from being erroneously perceived as old-fashioned. Quality is much higher than many consumers perceive.
Recent research indicates there is a perception that products are processed and not natural. It is quite ironic that the consumers with this view are the same people who happily home freeze at least 30% of all their chilled food purchases by a vastly inferior process to commercial quick-freezing. In fact, many seasonal chilled products have already been previously frozen and many of the labels tell the consumers this.
There is also a dreadfully snobbish perception that because the frozen food specialists generally attract the less affluent shoppers, then by association, frozen food itself is downmarket.
These prejudices could be overcome with a top class information package and better product presentation to consumers. Many similar prejudices have been corrected by inspired communication, but it would take the whole supply chain to wholeheartedly participate for it to succeed.
On price, chilled foods are said to be perceived by more affluent consumers as only slightly more expensive than frozen. In reality, the cost difference between the two is quite staggering.
A recent survey by a major multiple indicated that a weekly basket of chilled products costing £48.17 was £13.64 more expensive than an equivalent basket of frozen foods which would cost only £34.53. It is doubtful whether shoppers would knowingly pay 40% more for chilled.
Putting snobbery aside, the savings at this level could give consumers a payback on a chest freezer within weeks, eliminating the excuse of lack of storage space which inhibits frozen food purchasing decisions.
The British Frozen Food Federation is convinced the time has come to address excessive discounting and undertake a redevelopment of the frozen food market. It is important that retailers and producers work harder to achieve a new perception of the category.
On the discounting issue, it is inevitable that, without action, suppliers’ margins, profits, innovation and quality enhancement will suffer to the detriment of producers, retailers and consumers alike. There is no need for discounts.
As a category, we must not allow ourselves - or others - to talk frozen foods down.
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