Into the Frozone

Chilling out with your frozen and cool ranges, and perhaps extending the run of refrigeration in-store, promises big profits as demand for all things cold hardens

We have often celebrated the chilled and frozen category in convenience – frozen foods are a lifesaver for distress missions when peas, pizzas or fish-fingers have run out and supper-time is fast approaching; and frozen foods are also a great money saver for cash-conscious consumers, not to mention – with veg and fish especially – the taste and goodness being sealed in at the very moment of catch or harvest.

Then, of course, the freezer opens onto the cornucopia of desserts – ice cream galore but now more often also a whole variety of frozen delights, including fruits and mousses, where convenience can compete amply with the biggest mults.

And while more c-stores are investing in more than just an open-topped ice cream cabinet for their frozen offer, the chilled section is expanding like Wallace and Gromit slapping down track as they ride an onrushing steam-train.

According to the British Frozen Food Federation (BFFF), the frozen food industry “continuously demonstrated outstanding performance” throughout 2023 and this trend looks to continue for 2024. The market enjoyed year-on-year increase in value of 15.6 per cent, and of volume by 0.4 per cent.

It is now not unusual for a regular-sized c-store to have up to ten metres of chiller (perhaps not even including the drinks section or the beer cave) – because so much of modern eating is on-the-go or quick prep in the evening after work. What’s more, so much of that is locally and daily purchased, that the c-store chiller is becoming a national emblem of taste and variety, great value, and quality: top cuisine right on the corner of your street in the smaller or meal-size quantities customers now demand.

And this year is very special because the world of modern frozen tech is celebrating what the BFFF calls a huge historic milestone – 100 years of the frozen food industry.

“Back in 1924 a man named Clarence Birdseye revolutionised food production, packaging and food distribution for the world for the next century and beyond,” says BFFF CEO Rupert Ashby. “Whilst out fishing in Newfoundland, Clarence observed that when fish were caught and brought out of the freezing waters and placed on the ice, the combination of the temperature and exposure to the elements froze the fish almost instantly. Then, when it came to eating the fish once thawed, to his amazement they were as firm and fresh as if they had just been caught.

“What made this method of freezing unique, whilst maintaining the freshness and flavour , was the speed of the freeze – “flash freezing”.

“That is when Clarence Birdseye set about inventing and patenting his ‘Quick Freeze Machine’, Step-by-step, he invented the processes that would one day become standard practice across the world.”

According to US-based ReportLinker, the centenarian UK Frozen Food Market looks good for the future. The global frozen food market size was worth $297.47 billion in 2023, with a projected value of over $437.1 billion by 2032, implying a Compound Annual Growth Rate (CACR) of 5.1per cent. “This growth is predominantly driven by changing consumer lifestyles,” and increasing demand for convenience foods.

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The industry gained a big boost thanks to the pandemic, when, according to Fortune Business Insights, “The global frozen food market experienced a sudden increase in sales due to the panic buying experienced by consumers with the fear of the lockdowns ... Frozen items and other essentials were the immediate food products sold in the initial days of lockdown due to their longer shelf life.”

It seems that attitude of stocking up and prep for emergencies lingers on, plus, as the BFFF points out, enhancements in freezing technologies and cold chain logistics have improved the quality and shelf-life of frozen foods, thereby boosting consumer acceptance. And the same goes for ever-more efficient chillers, which the sector is finding to be an economical investment, given the rises in energy prices of recent years.

Indeed, the growing popularity in both chilled and frozen foods (not least because of the health credentials and perceived freshness over ambient and additives), is finding a great opportunity for expansion at the present time, helped by such diverse trends as veganism and the developing appetite for world foods and ingredients.

Cool as a cucumber

Chilled drinks sit in chillers and are one of the biggest, most vital categories in convenience, giving the channel an absolute edge over supermarkets for the grab-and-go trade where cold single-serves are the need of the moment.

But drinks, as a chiller mainstay, have their own coverage in this title. What they do for the chilled food section, arguably, is to justify the expansion and widening of the range of comestibles that accompany drinks – either as snacks or as ingredients for a main meal.

Traditionally, veg and salads have had to rough it on normal shelves, but as tastes become more refined and freshness and crispness are seen as worth paying for, the chiller steps up to improve the presentation and quality of ingredients.

In short, it’s time to chill your salads and green stuff for better sales and customer satisfaction.

Martin Purdy, Commercial and Marketing Director at Florette, says that as one third of shoppers look to eat more fruit and vegetables as they strive to lead a healthier lifestyle [IGD Shopper Vista Health and Nutrition Barometer], fresh salad brands such as Florette has a key role to play in the chiller, where the convenience of grabbing a ready-prepared bag for a supper salad is becoming the norm. Where a retailer needs a nationally-recognised brand, Florette is the eye-catcher.

“With annual sales of over 15 million packs, worth almost £20 million [Nielsen and Kantar, Florette Prepared Salads, Total Mkt, 52 w/e 13.04.24], Florette is ideally placed to help retailers meet growing consumer demand for great-tasting fresh food for use in meals and snacks,” says Purdy.

“Consumers are increasingly looking towards brands which add a natural, healthy element to their diet. With market-leading Florette being naturally low in fat, salt and sugar, and leaves packed full of flavour and texture, they really do enhance the eating experience.”

He adds that green issues as well as green salads play a part in the purchasing decision process, and that whilst convenience, taste and health remain important, people are increasingly aligning with brands that share their values in areas such as sustainability and nature: “That’s great news for us as we place as much importance on caring for the environment as we do on growing salads. Florette actively supports and promotes Wild flowering initiatives as a key enabler for biodiversity and champions initiatives such as No Mow May.”

Florette backed up the ecological angle by underlining its presence and appeal with the launch of one of its biggest ever on-pack promotions, teaming up with leading tour operator, Jet2holidays, to give shoppers the chance to win one of 100 Jet2holidays vouchers, each worth £3,000.

As a sign of its intent and direction in chiller-world, the promo featured on over six million Florette packs and featured leading food and lifestyle guru, Megan Mckenna, who produced exclusive Florette recipe content, inspired by popular holiday destinations. Expect more of this marketing in the future to consolidate sales.

The brand boasts a wide range of salad products which Purdy explains “act as a beacon in the chiller”. These include Florette Crispy (90g and 140g) – the biggest-selling salad product in the impulse channel – and Florette Mixed salad (125g), with a crunchy mix of leaves that add interest and texture to meals and snacks.

As an example of the fashion for chiller expansion and increasing choice of fresh foods for the c-channel, Florette has launched new Florette Gourmet Slaws.

The three-strong range features tastes from around the world, drawing on South and East Asian-inspired flavours and adding a dash of colour and inspiration to salads, sandwiches, wraps and more.

The range comprises Korean Gochujang (215g), Indian Spiced (195g) and Chinese Inspired (185g), with an RRP of £1.80p.

Meats and protein

Chilled, ready-to-eat protein as well as meal ingredients are paramount for consideration as part of your curated offer in the chiller section.

The body often craves protein even before it demands carbs and sugar, so having on the front line of hunger pangs products such as Peperami will be a sure-fire way to get impulse sales up.

Chilled meat snacking has emerged as one of the fastest growing categories and plays a significant role in convenience, grocery, wholesale and cash and carry, meeting the demands of customers seeking easy, tasty options.

Peperami, the UK’s number one protein meat snacking brand, is manufactured by Link Snacks International (LSI) the global leaders in savoury, chilled meat snacks.

What often surprises people is how fast the savoury meat category has grown recently, with protein going mainstream in almost one in three UK households, confides Shaun Whelan, Convenience/Wholesale and OOH Controller at Link Snacks International (LSI), makers of Peperami.

He says that the meat snacking category has doubled in the last five years in value sales to £260 million and could double again now that protein as a distinct idea/category has become mainstream.

“Shoppers are looking for tasty, convenient, protein snacks to pep up snacking that they know and love to eat,” he says.

Meanwhile, convenience retailers are looking for products with a long shelf life to combat wastage – and with Peperami sticks have a minimum of six months shelf life, it’s a match made in meat heaven.

Peperami is now the nation’s foremost meat snack accounting for about one in two category sales and is now a £120 million brand, so owning nearly half the market. The brand is growing seven per cent in value and finished the year with 46 per cent market share and double-digit growth at +11 per cent across all formats in the convenience sector [Value Sales, Nielsen MAT to Dec 2023].

It’s not only red meat that tickles the nation’s protein sensors. Chicken, too, is a favourite and a vital category to chill alongside the salami. A great brand for this is Fridge Raiders, which has just unveiled its latest creation, Poppers, designed for individuals navigating increasingly busy lives. The high-protein, flavour-packed chicken bites come in Cheesy Nacho flavour, with a second flavour soon to follow.

Informed by consumer research, Fridge Raiders saw a clear demand for snacks that prioritise taste, while still providing protein. Poppers were developed with exactly this in mind, delivering bite-sized pieces of 100 per cent succulent chicken breast in tasty textured coatings, ensuring an intense flavour delivery.

The food-to-go/grab-and-go category has become an integral part of most people’s food habits, with the category increasing in value by +31.7 per cent in 2022 to £21.4 billion, according to Lumina Intelligence’s Food to Go Report 2023.

With an RSV of £112 million, Fridge Raiders is prominent in the category. According to the Kantar Brand Footprint study, Fridge Raiders ranked as the 99th most-chosen brand and has achieved 10 per cent year-on-year growth – doubling its value since 2019.

“We’re thrilled to introduce Fridge Raiders Poppers, a delicious and convenient ready-to-eat option for consumers,” said Chris Doe, UK Marketing and Innovation Director, Pilgrim’s Food Masters. “Our newest innovation marks our commitment to bringing great-tasting choices to the forefront of the snacking market and is a great addition to our popular core range of Fridge Raiders products.”

At the same time meat has become more popular as a source of protein, so have meat-free products, due to the demand of vegetarian and vegan consumers to enjoy and supplement their diets.

There had been a massive growth in plant-origin “meats” that started around the time lockdown, based around pea protein, and while those products are currently being thinned out by market demand, a stalwart meat alternative, based on mycoprotein that has withstood the test of time, remains a great favourite and bestseller: Quorn, now approaching its fortieth anniversary.

The brand remains the UK’s No. 1 meat-free product for a reason, says Gill Riley, Consumer Director at Quorn Foods UK.

“Nobody innovates and engages quite like us," she announces. “There is still very much a sustained interest in eating meat free, and we know the key drivers of health, taste, sustainability, and animal welfare are still at the forefront."

Regarding the number of plant-based bankruptcies that have occurred recently, Gill says that “Last year, we saw a huge shift in consumer behaviour led by continuing turbulence in the global economy, which impacted the performance of a number of food and drink categories. It’s important to remember that the slowdown in growth of the meat alternatives category comes against a backdrop of many years of strong growth.”

Whilst many brands and products come and go, Quorn has been a constant, also delivering share growth ahead of the total market in key areas.

“We know we have the best meat-free nugget in the UK market,” says Gill, “which is often compared to those purchased at popular QSR outlets. Quorn’s Crispy Nuggets are one of the strongest entry points to the category."

Quorn also recently developed an improved recipe for its popular Cocktail Sausages, making the switch to meat-free alternatives even easier for consumers, with a closer visual likeness to the meat equivalent and enhanced taste.

Shoppers can now buy two different pack sizes of their favourite Quorn Cocktail Sausages and Picnic Eggs. Both will be available in 140g and 240g packs (p140g RRP: £1.95, 240g RRP £2.95).

Gill adds that while the larger packs are firm favourites for well-established Quorn lovers, the smaller packs will act as an ideal entry point for new consumers, demonstrating Quorn’s active chiller-campaign in the grab-and-go stakes.

In the ice box, smaller packs in Quorn’s frozen ingredients portfolio are proving effective at bringing in new shoppers, “so there is a clear incremental category growth opportunity for retailers stocking both of the new snacks formats."

Quorn frozen has now had more than two years of consecutive growth in value [Circana 52 w/e 23rd December 2023], highlighting the importance for retailers to stock the range.

Dairy and desserts

Continuing the emphasis on well-being, Gut Health is the trend on consumer minds at the moment, says Natasha Bowes, CEO and Founder of natural/healthier/ functional yogurts brand Biotiful. “We’ve seen a real upsurge in interest in Gut Health in recent months, as more and more consumers realise the impact that good gut health can have on overall health and wellbeing,” she says.

Biotiful’s own research showed that 74 per cent of consumers are aware now of the importance of good gut health as the foundation of good physical and mental wellbeing, with the popular Kefir version now the fastest-growing Dairy category in convenience (+41 per cent), having overtaken Protein (+21 per cent) [Circana, data to 9th June 2024].

Natasha says they are seeing this translate into brand sales – with Biotiful now the number-nine yogurt brand, and the fastest growing yogurt brand in the last twelve weeks. [Food navigator: the Rise and Rise of Healthy Indulgence Feb 2023]

She explains that at a macro level, health concerns continue to drive the chilled category – and with the spotlight on UPFs, consumers are clearly moving away from highly processed, sugary and empty calorie products.

“However, we also know that while 75 per cent of consumers are looking for options that are both healthy and tasty, 66 per cent are not prepared to sacrifice taste for a healthier choice."

The chiller wins again, with dairy products proving eminently suitable to busy lives and eating on the go

“The way consumers are eating on the go is changing,” says Natasha. “Gone are the days of quick, sugar-laden snacks - consumers expect to be able to eat on the go without compromising on nutrition or taste.

It is the fastest-growing subcategories, Kefir and Protein, which are reshaping the Convenience Yogurt landscape, she explains – with sales of Kefir within convenience having doubled in the last three years.

With regular innovation and a flow of new SKUs and flavours, Biotiful Gut Health proudly stands as the UK's number-one Kefir brand.

In terms of specific products, Biotiful Gut Health's smooth and creamy Original and fruity Cherry Kefir Drinks are among the top four Premium SKUs, and in addition, Biotiful has just launched a new range of High Protein Pots and Drinks., including Kefir High Protein Drinks in Vanilla, Strawberry and chocolate (330ml), along with a new line of Kefir Overnight Oats in Mixed Berries and Spiced Fruit (both 150g) – plenty to keep the chillers choca-bloc.

And on the subject of gut health, Yakult has announced a new addition to its range of fermented milk drinks – Yakult Plus Peach, which is on sale from 1 September 2024.

It is bursting with a juicy peach flavour and each bottle contains billions of L.casei Shirota bacteria, scientifically proven to reach the gut alive and increase the “friendly” bacteria, while also being rich in vitamin C.

Plus Peach is available in a fridge friendly 8 x 65ml bottle pack format (RRP £3.70), standing out on shelf in its new peachy recyclable cardboard packaging.

Yakult is supporting the launch of Yakult Plus Peach with BVOD, social, influencer and PR activity from August to engage and inspire consumers to look after their wellbeing.

“At Yakult, we are dedicated to advancing the health and happiness of our customers through scientifically-backed products that taste great,” said Hiroaki Yoshimura, MD for Yakult UK & Ireland. “We invest in flavour exploration because we know that taste is an increasingly important driver of purchase in our category. Our commitment is reflected in exciting options like our new Yakult Plus Peach, designed to seamlessly fit into consumers’ daily routines.”

All this health focus should not mean that treats – just as much an essential part of a happy diet – should be neglected, and as always, the vigorous ice cream, milk drinks and shakes section comes up trumps with delicious new ideas and products to stock.

Over at Muller (which produces Cadbury-branded chilled desserts and milkshakes under licence from Mondelēz International) PMPs are being rolled out across its new 250ml single-serve Cadbury Milkshakes. Launched earlier this year, the two new variants, Cadbury Creamy Chocolate Milkshake and Cadbury Creamy Chocolate Caramel Flavour Milkshake, will now be available in £1.69 price marked packs, exclusively for the convenience and wholesale channel.

With the flavoured milk category worth a massive £700m annually (+11 per cent YOY) and half of those sales going through convenience stores, the addition of Cadbury Milkshakes in both PMPs and standard packs is expected to help further accelerate sales and growth in the channel.

“We are committed to driving category growth by continually expanding and optimising our portfolio of products to meet the needs of both retailers and shoppers,” said Carol Hand, Head of Category and Shopper Based Design at Müller Yogurt & Desserts. “The exciting introduction of our new Cadbury Milkshakes in price marked packs and standard packs is a perfect example of this and presents a fantastic opportunity for convenience retailers to maximise sales.”

The long-lasting ambient recipe provides a three-month shelf life which is perfect for busy convenience stores. You can stock up, store ambiently in the back, then easily refill your chiller to ensure you never miss a sale.

The launch will be supported by OOH marketing and PR, with a wider multimedia campaign later in the year. Convenience stores can benefit from the expected high consumer awareness and demand by stocking up now and creating visibility and impact in store using the bespoke POS kits featuring wobblers and A4 window posters.

The new milkshakes are available now from most wholesalers and cash and carry. Case size 8 x 250ml.

On to Ice cream: Michelle Frost, general manager at Mars Chocolate Drinks and Treats says: “In 2023, it was interesting to see a significant spike in ice cream sales within the overall frozen food category during the autumn months, which grew by an impressive 10 per cent in the 12 weeks to November 26 [British Frozen Food Federation (BFFF), Kantar, Frozen Food Industry, 12 weeks to 26 November]. We have seen a notable increase in Mars branded Handheld Multipacks in convenience by 17 per cent YOY, which suggests consumers are further looking to enjoy ice cream both on the go and at home, all-year-round.

Michelle says that ce cream is no longer reserved for those looking for a treat to cool down with during the summer months, it is also the dessert of choice for shoppers opting for cosy nights in rather than costly nights out. With this in mind, we are encouraging convenience retailers to ensure they have an all-year-round ice cream presence. Particularly with frozen confectionery declining by four per cent in volume [Kantar] as with budget-conscious shoppers are opting for more cost-effective frozen treats and desserts.

“This year, we have extended our offering of Handheld Multipacks to the convenience customer with the launch Maltesers Ice Cream Bar in multipacks of four," she announces. “We know customers are drawn to the familiarity, and trusted taste of the brands they know and love. Maltesers is one of our most popular brands, so it made sense to develop it into one of our most popular ice cream formats!”

Both multipacks and singular impulse bars are available now in convenience and wholesale channels. Multipack RSP £2.50, single bar RSP £2.00.

In other delicious ice cream news, Ferraro has added to its ice cream range with Nutella Ice Cream Tubs (470ml / 230g).

The Nutella initiative, built on the product’s brand breakfast status legacy, has expanded into new categories over the years, successfully moving into biscuits, bakery, and now the frozen aisle. Nutella Ice Cream Tubs feature layers of Nutella on top and throughout, with hazelnut-flavoured ice cream and Nutella swirls.

“Early strong performances across Europe confirm the potential of Nutella Ice Cream here in the UK,” said Dani Hayward-Bradley, Regional Marketing Director, Ferrero UK & Ireland. “When you consider that the tubs segment in the UK is the largest across Europe at a value of just above £300M, the potential for retailers operating in this market is incredibly exciting – particularly with the brand’s loyal fan base.”

“What’s more, ‘New flavours’ and ‘Premium SKUs’ drove growth in Ice Cream this past year, so we’re confident the appetite is there from shoppers looking for quality NPD from brands they love.

The rollout is planned across the UK later this year and into 2025 and will be “scooping in” a significant £1.8m into its launch plan, spanning TV, social, out of home, PR and in-store shopper marketing.

Häagen-Dazs has unveiled a limited-edition TV tie-in Emily in Paris ice cream collection and on-pack promo to celebrate the hit show’s fourth season return.

Applied to its best-selling flavour, Salted Caramel, there is a Paris-inspired packaging redesign across its Pints and Stick Bars, as well as an on-pack competition consumers can enter by scanning a QR code. Prizes include up to £1,000 worth of new clothes and accessories with a Harvey Nichols wardrobe refresh, a Harrods Pamper Hamper and an entire year’s supply of Häagen-Dazs ice cream.

Nicole Whelan, Head of Brand at Häagen-Dazs UK, said: “The Emily in Paris collection embodies the spirit of embracing life’s sweet moments with the hero flavour Häagen-Dazs is known and loved for, Salted Caramel.

The campaign will be further supported through social activity, driving a renewed consumer buzz for premium ice cream flavours around the new season launch.