From Our Print Edition

Yes, sales are down (except in the value-added “prepared” segment). But the numbers don’t tell the whole story.

A desire to remain healthy during the pandemic led many consumers to embrace vegetables. Yet sales of plain frozen veggies fell 6.4% to $698.91 million

Seal the Seasons’ new 32-ounce bag-in-bag format includes four 8-ounce bags of regionally grown veggies.

during the 12 weeks ended Dec. 26, reports Chicago-based market research firm IRI (iriworldwide.com). In fact, of 10 subcategories, only the tiny frozen onions segment edged into the plus column with a 2.0% gain versus the same period a year ago. Frozen veggies marketed as “prepared” — with sauces, seasoning and bread crumbs added — fared better, tipping into the positive column at +2.8% (to $49.24 million). But unit sales were down 4.6%. Why the decline?

Home cooks want innovative ways to prepare their vegetables besides the microwave or oven.

“We forecasted that both the category and key branded players would be down versus year ago, given the very high demand we saw last year as we went through another COVID surge,” explains Melissa Walters, brand director for Birds Eye from Chicago-based Conagra. “However, there have been pockets of growth…. Those are coming from the value-added segment, which is all vegetables that aren’t plain.”

Kristen Thompson, brand director at Green Giant, part of Parsippany, N.J.-based B&G Foods, agrees that the loss in the latest period stems from frozen vegetables cycling a major spike in consumption during the initial phases of COVID when customers were stocking up and eating at home exclusively. That consumer behavior didn’t start to normalize until the end of 2020, she says.

Premium, value-added, branded items need more space in the private label-dominated set.

Add to that the shortages customers are experiencing due to the supply chain disruptions, empty shelves, lack of truck drivers and all the competing stressors in the category right now, and a loss makes perfect sense.

MANUFACTURERS GET CREATIVE

The Mushroom Co. brings some excitement — and higher retails —to the frozen veggie set with its new Saucy Mushrooms.

Just when you think finding a novel way to package veggies is impossible, one producer thought way outside the box. Durham, N.C.-based Seal the Seasons, which sells frozen veggies in the region where they’re grown, recently launched a new bag-in-bag format that features four steamable 8-ounce bags inside a larger 32-ounce bag.

“We are offering convenience,” says vp of sales Serafina Palandech. “Consumers can take out one of the smaller bags while still maintaining the integrity of the other three bags,” eliminating the need for multiple trips to the supermarket.

Other new products are delivering convenience in different ways. Birds Eye’s latest introduction, Sheet Pan Meals, lets the home cook bring a complete meal to the table in only 25 minutes. “We know consumers want to cut down on prep and clean-up,” explains Walters. “Our sheet pan meals, with premium Birds Eye vegetables and tender pre-cut and perfectly seasoned proteins, solve this problem.” Available varieties include Chicken with Balsamic Flavored Sweet Potatoes, Chicken with Brown Butter Potatoes and Italian Sausage with Peppers.

Another time-saver comes from Green Giant, which recently added six Riced Veggie Blends in restaurant-inspired flavors to its expanding Veggie Swap-Ins line, each of which starts with either riced cauliflower or a riced legume pasta. For example, says Thompson, the ingredient list of the Mediterranean Style variety includes red lentil pasta, riced broccoli, riced cauliflower, feta cheese, sundried tomatoes and seasoning. Other flavors include Parmesan Garlic, Cilantro Lime and Spicy Mexican Style, Broccoli Cheddar and Asian Style Stir Fry.

Paramount, Calif.-based Tattooed Chef is also expanding its veggie-based pasta swap-in offerings, adding both Zucchini Spirals and Gochujang Chow Mein

Green Giant expands its line of Riced Veggie Blends with six new restaurant-inspired flavors.

with Zucchini Spirals to its lineup.

Manufacturers of other, less traditional veggies are also making inroads in the frozen segment. Late last year, The Mushroom Co., part of the Kennett Square Pa.-based South Mill Champs family, launched a three-flavor Saucy Mushroom line, including Garlic Herb, Onion Au Jus and Marsala. Each comes in an 8-ounce steam-in-bag and includes two servings. The ‘shrooms can be served as a stand-alone side dish or in salads, sauces, soups, pizza, lasagna and much more, says the company, which also touts the product’s higher retails and margins versus plain veggies. Mushrooms are considered one of nature’s superfoods and, according to a recent Grand View Research report, are projected to surpass the $50 billion mark in sales by 2028.

GIVE CONSUMERS WHAT THEY WANT

What are consumers looking for in frozen veggies? Grown in the U.S.A. or, better yet, locally grown produce remains a hot trend. Palandech says today’s consumers have a much better understanding of why locally sourced food is so important (it decreases their carbon footprint, supports the local economy and is more readily available now due to the supply chain struggles), which is driving growth in that segment.

‘Give customers a reason why they should spend more dollars in the frozen vegetable category.’

Convenience is key as well. “In the five years since Green Giant launched riced vegetables, we’ve seen continued demand for more veggie-based [side dish] offerings, so consumers have an easy way to add more veggies to their plate,” says Thompson.

Increasing fruit and vegetable consumption has been an ongoing challenge for consumers, agrees Walters, citing demand for restaurant quality with little preparation. To help meet that need, Birds Eye has added several “elevated” new items to its portfolio in the past year, including ready-to-roast vegetables, niche veggies like rainbow cauliflower, and pre-cut vegetables and sauces to make stir fry more convenient. Walters also reports growing demand for veggies in new forms (think breaded veggies) with tasty sauces.

Thompson has noticed that home cooks want innovative ways to prepare their vegetables besides the microwave or oven. For instance, consumers have really embraced air fryers for prepping frozen veggies. And Bells, Tenn.-based PictSweet recently introduced a line of frozen veggies designed for grilling.

The bottom line is that consumers want more options, says Palandech, who believes premium, value-added, branded items need more space in the private label-dominated set. “Give customers a reason why they should spend more dollars in the frozen vegetable category.”

Walters has a similar suggestion. The frozen vegetable category is brimming with new formats and exciting ways for customers to enjoy vegetables, she explains. Retailers just need to showcase the breadth of what is available. She realizes that is a challenge because of the limited freezer space. “But when consumers see restaurant-inspired flavors and formats, they’ll be more excited to shop the category.”

Manufacturers also suggest making room for bigger pack sizes. Currently the shelves are short and set for small packages, says Palandech. But with consumers limiting trips and searching for value, bigger pack sizes are an increasingly important part of the mix.

Given current supply chain problems, some innovation may be on hold during the short term, adds Thompson. Long term, however, “Innovation is the top factor for driving growth in the category, so I would expect it to return full force as consumer needs continue to evolve.”