With frozen food consumption on the rise, store owners, who give extra attention to their frozen aisle by stocking bestsellers as well as new launches, are expected to make incremental sales and gain loyal customers in the coming months.
As our lives changed dramatically in March 2020 (almost overnight), the frozen food market continued to witness massive growth in the following months. Figures from Kantar and the British Frozen Food Federation (BFFF), in fact, revealed that frozen products were the star performers of grocery retail that year, outperforming fresh produce and every other food category.
There was a time when frozen foods were considered “not as healthy as fresh alternatives”. However, as Britons stockpiled for lockdown and days after, they apparently fell head over heels in love with this category, all over again.
Almost half of the country’s families are more likely to buy frozen food now compared to pre-pandemic times, says a market report with convenience (50 per cent), avoiding unnecessary supermarket trips (46 per cent) and cutting down on food waste (44 per cent) were cited as the main reasons for the increased sale of frozen foods. Interestingly, breaking the myth that frozen food is not healthy, parents of young children (aged 6-10) are leading the charge here with one in three believing that frozen food can be as healthy as its fresh counterparts. In fact, fish fingers- which is among the UK’s top three frozen foods after ice cream and chips- are found to be especially popular with kids. About 42 percent of respondents claim fish finger was their children’s first experience of tasting fish.
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Fortunately, the momentum gained during the pandemic has not slowed down. Innovations are running high in this segment. So is customers’ appetite for trying new products and tastes.
With multiple reports hinting at constant growth in the frozen foods aisle, it seems wise for retailers to consider expanding their freezer space.
Imtiyaz Mamode of Premier Gosport store told Asian Trader that in his store, frozen pizzas are one of the “hottest selling items” and a major contributor to store’s sales even though he pays least attention to the frozen section since the focal point of his store is food-to-go.
Mos Patel, owner of Family Shopper in Ashton and Premier store in Oldham, also claimed that demand for frozen food has been on constant rise, revealing that pizzas, chips, fish fingers, seafoods and vegan range are some of the best selling items from his freezer.
Demand for frozen fruits, vegetables and herbs is also on the rise.
Despite concerns about obesity, UK ice-cream sales must have touched £1.5bn in 2021, up from £1.4bn from a year before, estimates Mintel, citing hot weather and rising disposable incomes for pushing the ice cream sales.
Innovations
Manufacturers are driving this growth by constant innovations and launches, due to which frozen aisle has been exploding with newer and exciting categories and consumers are now using their home-freezers to hold a much wider range of savoury foods along with ready meals and frozen desserts.
While Ben & Jerry's continues to be the leading ice cream brand, health consciousness and an inclination towards dairy-free products have given birth to a slew of new lollies.
Industry players have been coming up with innovative products like frozen yoghurt, a healthier alternative to ice cream and plant-based dairy-free ice cream range for vegan consumers. In fact, non-dairy alternatives make up 14 percent of new product launches in the UK ice cream market, bolstered by high-profile products such as the vegan Magnum.
Plant-based ice cream is expected to flood the UK market soon as manufacturers reportedly have figured out ways to create milk-like creaminess by using alternative ingredients such as coconut cream, oats, almonds and peas.
Another noteworthy aspect here is the size. With rise in work from home and health-consciousness, shoppers are seen drifting towards smaller, in fact micro-sized, portions.
Stocking tiny cones and packets of individual ice-cream cubes is a good idea. Visually appealing Instagrammable lollies, containing whole berries or nuts, are another huge hit.
Premium ranges of savoury and other kinds of frozen foods are also selling very well, showing that shoppers are valuing quality as well along with convenience.
Frozen fish and seafood, which is otherwise geared to the high-end side of the market, has proved popular, with products like frozen lobster, king prawns and even monkfish stealing the spotlight.
Sea-food range is the highest selling frozen food category in Patel’s stores as well.
“Frozen seafood is a huge hit these days. Half to three-fourth of my freezer space is stocked with frozen prawns, lobsters, fish fingers and other kinds of seafood,” Patel told Asian Trader.
Vegan Frozen Range
As Britons are increasingly on the look out for convenient, healthy and cost-effective vegan options, the rise of plant-based meat-free options is no less than a revolution which is currently shaping the frozen food range.
While releasing most-recent grocery sales figures, Fraser McKevitt, head of retail and consumer insight at Kantar, specially mentioned this segment saying that “chilled vegetarian ranges increased sales by 6 per cent while their frozen equivalents were boosted by 4 per cent”.
Retailer Patel seconds the data here by saying that the rise in both- popularity as well as availability- of plant-based frozen food has been astounding.
“Exactly a year ago, there was not this much range in the plant-based frozen section that what we stock now,” Patel told Asian Trader, adding that he now stocks “five to six lines” of plant-based frozen food products in his freezer section.
“Now we stock vegan sausages, veggie burgers, plant-based frozen meat alternatives. I am also planning to promote the same on my social media page to inform the shoppers that the store stocks vegan range as well.”
Patel pointed out that shoppers have this perception that convenience stores don’t stock vegan ranges so they “bypass us and go to the supermarkets for their vegan needs”.
He strongly feels that store owners should tap this niche segment by stocking the vegan range as well as promoting it well to attract more and more buyers.
Patel vouches for Bird’s Eye Green Cuisine range, saying that the brand has a very wholesome vegan range- “something for everyone”. The brand recently launched 10 new Green Cuisine lines, venturing for the first time into meat.
What to, How to
With limited space in freezers, what to stock and what to skip becomes even more critical for retailers.
According to Bestway, shoppers must stock pizza, burgers, sausages, fish fingers apart from frozen vegetables such as peas, carrots and corn as well as ice cream ranges.
A recently-released research from Birds Eye claims that although over half of consumers (58 per cent) have more interest in eating healthily than they did a decade ago, one in five still rate their diet as not healthy.
With reports claiming that Britons now are more health conscious than ever, retailers should tap into health concerns by highlighting benefits and busting the myths around frozen foods.
Retailers should understand that shoppers are eager to make healthier buying decisions. Right promotional offers, marketing and informatory signages can work as just the right motivation they need.
Signage is critical — perhaps more so than in any other part of the store — because consumers can’t always see what’s behind the glass.
The fact that the products are behind a glass door concealed in packaging, visual impact is far harder to achieve in the freezer section when compared to ambient departments.
Being a naturally chillier and less inviting section in a store, it will be better if retailers can use better and brighter lighting to create a more warm and welcoming ambience with greater visual appeal in the frozen aisles.
Upright freezers may be more expensive and require more investment but are not only more space efficient but way easier to use- both for store owners as well as shoppers. Dual-temperature cooler that allows for side-by-side positioning of frozen and refrigerated items is another smart consideration.
Thawing issues
Ironically, the frozen food section is facing huge demand and very low supplies for the past few weeks.
The British Frozen Food Federation had warned on Dec 21 that post-Brexit new border controls on animal and plant products from the EU could see major delays at ports, resulting in “more disruption”.
Some retailers have been complaining of cancelled orders and shrunk ranges at cash and carries.
“We are facing major supply issues. This week, our orders got cancelled thrice by our supplier which also happens to be the UK's leading supplier,” Patel told Asian Trader, adding that lorry driver shortage and rise in Covid cases might have escalated the problem.
“For our frozen food supplies, I am forced to go to cash and carry depots although there too, I am not finding the sufficient range,” he said.
With busy lives and lack of cooking skills from scratch, the lure of frozen food is apparent and is expected to grow further. However, limited freezer space at home is something that limits the quantity of frozen purchase for shoppers as they tend to keep it limited in each shopping trip.
At the same time, impulse purchase works like a charm in the frozen aisle! So, stocking newer, premium as well as plant-based ranges can go a long way in making the shoppers hooked up to the store.
Clearly, the wave of frozen foods is definitely just the tip of iceberg, and in fact, if tapped properly, can prove pivotal in the success of a convenience store- enchanting shoppers with convenience, price and choices.
Scottish business conglomerate Glenshire Group has hired Daniel Arrandale as its new Property Director.
Starting in the newly created role last week, Arrandale brings a wealth of industry experience to the business, including his most recent position as Acquisitions Manager for Asda and his previous position as Development Manager at EG Group.
“I am thrilled to be joining Glenshire Group in a period of tremendous growth, with many exciting opportunities on the horizon,” said Arrandale. “I’m looking forward to working with the existing development team to maximise the opportunities within our current estate, whilst also growing the business further with the acquisition of new sites.”
As part of Arrandale’s remit, he will oversee acquisitions, development, and growth for Greens Retail, Pizza Hut, and wider Glenshire Group property development and investment interests.
The bulk of Arrandale’s career has been as Retail Director at commercial agents Christie & Co, focussing on the convenience, forecourt and franchise markets. Arrandale served at Christie & Co. for 23 years.
Harris Aslam, Managing Director at Glenshire Group added: “We are very excited to welcome Dan into the Glenshire family. Having worked with Dan many times over the years on several transactions, I can confidently say his breadth of knowledge and experience in this sector will give us a huge advantage as we continue to expand our portfolio.”
Currently operating 27 convenience stores and 20 Pizza Hut franchises in Scotland, Glenshire Group has committed to significantly furthering new location openings in Scotland as well as bolstering their property portfolio.
Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.
The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.
"In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually okay," he said, adding the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will comprise a significantly larger portion of Carlsberg's business in a decade.For now, however, the company is adjusting its marketing.
"In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands," he said.
The world's third-largest brewer behind Anheuser-Busch Inbev and Heineken said third-quarter sales rose 1 per cent to 20.5 billion Danish crowns ($2.98 billion), compared with 20.7 billion expected on average by analysts in a poll gathered by the company.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.
Also on Thursday (31), the world's largest beer maker Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts. AB InBev's third-quarter statement highlighted stronger growth for its more expensive beers, like Corona, which grew 10.2% outside of its home market, Mexico, during the period.
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.
Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.
The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.
The E-Loyalty Extra loyalty scheme will be accessible by retailers via WhatsApp platform and will allow retailers to capture evidence of compliance by simply clicking “take photo” button.
With the addition of another digital enhancement introduced to the group recently – Coupon - based loyalty mechanic, members are now empowered to incentivise and reward customers, driving stronger consumer connections and fostering brand loyalty at a granular level. Retailers can now simply redeem a coupon at the point of check out. Another key digital development within the group is WhatsApp E-Presell which enables Sugro UK’s retail partners to provide advance product volume commitments for new product launches. This functionality is particularly powerful as it ensures that suppliers have accurate forecasts before product launches, enabling better stock availability from day one of product being available on the market.
The ease and speed of using WhatsApp for these commitments simplifies the presell process, ensures accuracy and strengthens relationships across the supply chain.
While other industry players may soon consider introducing similar digital tools, Sugro UK are proud to be at the forefront of enhancing retail-focused digital solutions. This early adoption not only ensures that Sugro UK members remain competitive but also guarantees them access to the best digital tools available in the market. These efforts are part of Sugro UK's ongoing commitment to delivering value to its members and empowering them with innovative solutions for growth and success in an increasingly digital retail environment.
Sugro Head of Commercial and Marketing, Yulia Petitt said: “I am delighted that Sugro UK members are now able to provide photographic evidence of retail compliance and in-store execution to our supplier partners, using a wide range of display and compliance criteria such as planograms, secondary displays, trials, and new product developments (NPDs).These digital features allow members to share real-time proof of execution, enhancing accountability and building supplier confidence. The launch of E-Presell functionality opens a huge digital advantage for the group which will benefit all – members, retailers and suppliers in gaining accurate forecast and ensuring product visibility in store from day one of product being on the market and with the ease of using WhatsApp, the entire pre-sell process becomes a much quicker and easier process to manage for all parties.
"The Group has had 18 consecutive years of growth and, once again, on track to deliver in 2024, with the year-to-date performance of +15% year on year and growth across all categories.” Rob Mannion, CEO of b2b.store, added: “The rate of innovation in the wholesale sector is increasing and these launches are further great examples of that. We’re particularly excited about the developments and different uses of WhatsApp in the industry, with more coming in the pipeline for 2025 – it’s a tool no wholesaler or buying group can afford to ignore because of the level of influence it’s having in the sector and there’s no sign of that direction of travel changing any time soon.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion.
Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.
Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.
This collaboration is expected to accelerate product launches and drive growth in diverse offerings, including sauces, salsas, marinades, dips, and condiments.
"We have collaborated with Panesar Foods for 17 years, and we are very pleased to welcome the company to Paulig," said Rolf Ladau, CEO of Paulig. "Today, our combined taste expertise and innovation skills unite around a shared ambition: to accelerate our international growth and expand our World Foods offerings."
Bill Panesar, CEO of Panesar Foods, expressed confidence in the partnership, stating, “As Panesar Foods becomes part of Paulig, I am confident that our ambitions for international growth will be realised, and the business will continue to thrive. We share a strong commitment to innovation and delivering high-quality, flavourful products, and I look forward to bringing even more delicious products to the market, together."
Jas Panesar, MD of Panesar Foods, echoed, “This partnership will allow us to reach new markets and deliver our authentic World Food flavors to a broader audience. We look forward to combining our passion for quality food with Paulig’s commitment to sustainability and innovation.”
All 308 Panesar employees will transition to Paulig’s team. Financial details of the transaction remain undisclosed.