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Apparently, a global pandemic is no time for dieting. Bring on the Dessert Sales!
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Frozen dessert sales jumped 29.3% to $199.43 million while frozen pie sales shot up 27.6% to $149.31 million in the 12 weeks ended July 12, reports Chicago-based market research firm IRI (iriworldwide.com). What’s driving the growth?
“Because consumers are stressed and stuck at home, they’re willing to bend the rules they had for themselves previously,” says Whitney Heber, marketing manager for desserts at Marshall, Minn.-based Schwan’s Consumer Brands, owner of the Edwards (edwardsdesserts.com) brand. “Permissible indulgence has taken over.”
“In times of crisis, including the current pandemic, people look for foods that bring them comfort,” confirms Kaitie Hackett, associate brand manager for Marie Callender’s (mariecallenders.com), owned by Chicago-based Conagra. “However, fresh-baked desserts can be difficult or take too much effort [to make], so frozen pies are a great solution.” She adds that 75% of consumer sweet treat occasions require less than 5 minutes of prep time, making thaw-and-serve cream pies a particularly popular option and “a key pocket of category growth.”
Hackett says “mashups” represent another hot frozen dessert category trend that led to Conagra’s recent introduction of two new Marie Callender’s varieties: Chocolate Brownie Cream Pie and Confetti Birthday Cake Cream Pie, both expected to hit freezers this month. Chocolate is the No. 1 pie flavor in restaurants and at retail, and brownies are a fast-growing menu item, she explains. Meanwhile, birthday cake varieties are appearing in categories across the supermarket, with sales up 62% year over year.
Schwan’s is jumping on the hybrid desserts trend as well, says Heber, citing a pair of new Edwards Signatures fruit and cream pies debuting this fall: Caramel Apple Crème and Peach Crème. Because they take people back to simpler times, she explains, fruit pies are considered comfort food, hence their recent resurgence. But even frozen versions can take up to an hour to bake. Not so the thaw-and-serve newcomers. “In testing, consumers told us they loved that they could have a refreshing fruit pie without having to bake it,” reports Heber, who says the fruit pie-cream pie amalgam is completely unique to the category.
She adds that despite demand for traditional, nostalgic desserts, innovation will be critical to category growth post-pandemic. “COVID-19 has brought a lot of new consumers into the category who are looking for an alternative to dining out or want to make their everyday feel more special,” explains Heber. “Our challenge as brand owners is keeping those buyers in the category when shopping habits return to normal. . . Innovation will likely be key to keeping those consumers engaged. It will need to be fresh and unique and – given the new shoppers now in the category – may even need to target a different consumer than we have in the past.”
Outside of cream pies, cheesecakes have been putting up some of the segment’s strongest numbers recently. Subcategory sales jumped 47.3% during the most recent 12 weeks, thanks to triple-digit gains by both The Cheesecake Factory and Edwards. No. 6 Daiya saw its sales climb 62.9%, highlighting continued growth in the dairy-free segment as well. In fact, Trader Joe’s just added single-serve Cheese-Less “Cheesecakes” made with lima beans, coconut oil and konjac to its frozen dessert assortment.
Category stalwart Sara Lee (saraleedesserts.com), Oakbrook Park, Ill., is also angling for a piece of the burgeoning single-serve cheesecake business. In a sign of the times, however, the company is marketing its new Mini Cheesecakes (in Classic, Strawberry and Salted Caramel Truffle flavors) as a safer alternative to multi-serve desserts. “We’re pleased to answer increasing consumer demand for ‘touchless snacking’ with our innovative packaging,” says chief marketing officer Ryan Malone, citing individually wrapped Peel & Plate cups that eliminate the need for additional handling. The new item is offered in four-count packages.
Minis are also making news in the sweet goods (no cheesecake) subcategory (+31.1% to $64.40 million) where Battleboro, N.C-based Delizza (delizza.us) is launching a new co-branded mini éclair variety this fall. Made with Ghirardelli cocoa powder and 60% dark chocolate, “It tastes amazing,” says Josh Helland, senior VP of sales and marketing. “And it’s a good way to elevate our brand by making our premium desserts even more premium.”
Another new single-serve dessert that taps into the equity of a well-known partner is reportedly coming soon from Pittsburgh-based Kraft Heinz. Offered under The Pioneer Woman label (thepioneerwoman.com) in partnership with celebrity chef Ree Drummond, the company’s family-friendly Hand Pies come in both Blueberry and Caramel Apple flavors and can be heated in a toaster oven or microwave or thawed and served at room temp.
Although dessert sales gains haven’t been as impressive on the refrigerated side of the desserts category, single-serves are making news there as well. In the pudding/mousse/ gelatin/parfaits segment (+12.1% to $195.82 million), for example, Delphos, Ohio-based Lakeview Farms (lakeviewfarms.com) is rolling out the second generation of premium, ready-to-eat desserts under The Cheesecake Factory At Home brand. A follow-up to last year’s launch of four high-end parfaits inspired by the restaurant’s decadent desserts, the new Mix- Ins collection “takes the brand to another level of deliciousness,” says CMO Greg Klein. Available flavors include Café Mocha, Crème Brulee and Red Velvet, each of which pairs a unique, on-trend pudding variety with carefully selected mix-ins.
Klein says space for refrigerated desserts continues to shrink, thanks to encroachment by the yogurt category. “Clearly, though, there are category growth opportunities not only in premium desserts but also in the Hispanic and plant-based segments.” He adds that Lakeview Farms recently debuted its own Almondmilk Puddings.
Sales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended July 12, according to Chicago-based market research firm IRI (iriworldwide.com). Percent change is versus the same period a year ago. Only brands with at least $2 million in sales during the period are listed.
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