From Our Print Edition

The frozen breakfast category is on a roll, but make sure your assortments line up with changing buying habits. Here are some merchandising tips.

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Frozen breakfast sales jumped 18.2% during the 12 weeks ended Oct. 4 to $942.9 million across channels, reports Chicago-based market research firm IRI (iriworldwide.com). But growing demand for convenience and better-for-you attributes has consumers reaching in some different doors lately. For example, gains from the major bread-based segments were far behind the category average: waffles rose by 10.0%, and bagels by 9.9%.

However, sales of portable handheld items were ahead of the average — up by 20.6%. And breakfast entrees, including on-trend bowls, were up 21.8%. Although growth came off a small base, the biggest gain was posted by the “other frozen breakfast” subcategory (+27.0%), which includes unique items like frittatas and egg bites similar to those popularized by Starbucks. Have you considered sampling some of those other products?

As consumers move away from carb-heavy sit-down meals to protein-packed portable sandwiches and healthy breakfast bowls, retailers need to be sure their assortments line up with shifting demand. Do you really need all those frozen bagels SKUs — or could you give some of that space to healthy new single-serve sandwiches and bite-size breakfast snacks (yes, snacking is coming to breakfast, too)? And are you offering enough of the better-for-you waffle brands whose sales are on the rise or are you reserving that space for yet another Eggo line extension?

DRIVE TRAFFIC WITH ANCHOR BRANDS

That’s not to say big brands don’t play a very important role in the frozen breakfast category. Indeed, manufacturers say that instead of putting them in endcaps (unless it’s a breakfast themed display, which would be awesome), retailers should consider using well-known brands like Eggo and Jimmy Dean as anchors to drive traffic down the aisle. Once there, consumers can be presented with more premium, better-for-you brands as well. Savvy shoppers will compare labels, and some will trade up.

That’s one reason why it’s so important to integrate natural, organic, gluten-free and other better-for-you breakfast offerings into the conventional set. In the breakfast category more so than almost any other, mainstream consumers are looking for healthy attributes.

In fact, one manufacturer reports its all-natural breakfast burritos perform four times better when positioned next to conventional breakfast brands than when they’re merchandised in a separate set with only natural brands. “This hasn’t been the case with our entrees, but we definitely see it play out in breakfast,” he says.

Still, side-by-side placement can also highlight some pretty jarring price differences, which can cause consumers to reach for the less-expensive brand without bothering to weigh product attributes. As a result, most industry observers recommend an integrated-segregated approach in which natural brands are clustered together but adjacent to conventional.

DISRUPT THE ROUTINE

Shoppers can get into a rut with their breakfast routine, so it’s up to retailers to help them turn off the autopilot when shopping. Try placing a spot freezer of well-priced frozen breakfast items near the entrance to capture their attention early. You could also try merchandising single-serve breakfast sandwiches or burritos at a microwave-equipped kiosk for early-morning shoppers looking for a nutritious alternative to their usual donut. Even if shoppers don’t find the innovation relevant, they will be reminded that breakfast doesn’t have to be routine and explore more options in the frozen breakfast section.

Busy consumers often don’t have time to peruse the freezer case, so announce new breakfast innovations through ads, signage and displays to inspire them to think more thoughtfully about the most important meal of the day. And make sure messaging is tied to on-trend attributes such as portability, natural ingredients, keto-friendly and plant-based. Many retailers have also had success tying frozen breakfast products to complementary items in more heavily traveled parts of the store. Consumers may not intend to visit the frozen breakfast set, but if there’s an instant-redeemable coupon for a healthy frozen breakfast bowl on their bottle of kefir or orange juice, they might be convinced to take a look.

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