Frozen Foods Quiz March, 2008 Confidential & Proprietary • Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which month is Frozen Food Month? We’ll start you with an easy one…. Frozen Foods Quiz Page 2 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which month is Frozen Food Month? Since 1984, March has been considered the Frozen Food Month. March is also National Nutrition Month and Women’s History Month. Source: NFRA Frozen Foods Quiz Page 3 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Frozen foods represent what percent of U.S. food & beverage sales? Frozen Foods Quiz Page 4 Confidential & Proprietary Copyright © 2008 The Nielsen Company Frozen foods represent what percent of U.S. food & beverage sales? Frozen foods represent 12.2% of U.S. food and beverage sales, down 0.2 pts. since last year. Dairy 16% Frozen Food 12% Dry Grocery 60% Packaged Meat 4% Deli (UPCcoded) Fresh Meat 2% (UPCcoded) 1% Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Fresh Produce (UPC-coded) 5% Page 5 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What are the top categories in frozen foods? Frozen Foods Quiz Page 6 Confidential & Proprietary Copyright © 2008 The Nielsen Company What are the top categories in frozen foods? 52 Week $ Vol $4,472 MM $3,603 MM $2,693 MM $2,652 MM $1,998 MM $1,581 MM $1,436 MM $1,288 MM $1,041 MM $1,037 MM $36,914 MM Category 1. Ice Cream 2. Frozen Pizza 3. Frozen Novelties 4. Frozen Poultry Entrees 5. Frozen Italian Entrees 6. Frozen Potato 7. Frozen Dinners 8. Frozen Poultry 9. Frozen Breakfast 10.Frozen Shrimp ALL FROZEN FOODS Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 7 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which are the fastest growing categories in frozen foods? Frozen Foods Quiz Page 8 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which are the fastest growing categories in frozen foods? 52 Week % Chg. $ Vol YA Category* Frozen Desserts Mixed Frozen Vegetables Frozen Fish Frozen Italian Entrees Frozen Fruits ALL FROZEN FOODS *Excludes smaller categories. $394 MM $641 MM $860 MM $1,998 MM $463 MM $36,914 MM +21% +17% +14% +13% +12% +5% Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 9 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What % of frozen foods are purchased at supercenters? Frozen Foods Quiz Page 10 Confidential & Proprietary Copyright © 2008 The Nielsen Company What % of frozen foods are purchased at supercenters? Supercenters 17% Mass (w/out supers) 1.5% Warehouse 10% Grocery 68% Drug 0.6% Other 3.3% Source: Nielsen Homescan Channel Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 11 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What % of food & beverage trips include a frozen food item? Frozen Foods Quiz Page 12 Confidential & Proprietary Copyright © 2008 The Nielsen Company What % of food & beverage trips include a frozen food item? Avg. # of trips per year Total Food & Beverage: 103.46 Frozen Foods: 32.5 32.5/103.46=31.4% 31% of food & beverage trips include frozen foods. The average frozen food purchase includes 3.5 frozen items. Source: Nielsen Homescan Consumer Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 13 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which frozen food categories skew to high income shoppers? Frozen Foods Quiz Page 14 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which frozen food categories skew to high income shoppers? $ Index* vs. Category >$100K HH’s Frozen Soup 190 Frozen Sauces & Gravies 185 Frozen Pasta 144 Frozen Desserts 141 Frozen Bagels 140 *Index reflects demographic share of dollars vs. share of U.S. households. Source: Nielsen Homescan Consumer Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 15 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which frozen food categories skew to large households? Frozen Foods Quiz Page 16 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which frozen food categories skew to large households? $ Index* vs. Category 5+ Member HH’s Frozen Apple Juice 275 Frozen Corn Dogs 260 Frozen Ground Beef 223 Frozen Grape Juice 208 Frozen Waffles/Pncks/Frn Tst 204 *Index reflects demographic share of dollars vs. share of U.S. households. Source: Nielsen Homescan Consumer Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 17 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which frozen food categories skew to African American shoppers? Frozen Foods Quiz Page 18 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which frozen food categories skew to African American shoppers? $ Index* vs. Category African American HH’s Frozen Corn on the Cob 206 Frozen Lima Beans 205 Frozen Unbreaded Fish 192 Frozen Breaded Shrimp 155 Frozen Broccoli 145 *Index reflects demographic share of dollars vs. share of U.S. households. Source: Nielsen Homescan Consumer Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 19 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which frozen food categories skew to Acculturated Hispanic shoppers? Frozen Foods Quiz Page 20 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which frozen food categories skew to Acculturated Hispanic shoppers? $ Index* vs. Categories Acculturated Hispanics Frozen Mexican Entrees 151 Frozen Apple Juice 149 Frozen Corn on the Cob 148 Frozen Ground Beef 145 Frozen Fruit & Drink Mixes 144 *Index reflects demographic share of dollars vs. share of U.S. households. Source: Nielsen Homescan Consumer Facts, 52 Weeks Ending 12/29/07 Frozen Foods Quiz Page 21 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What is the #1 frozen vegetable sold in the US? Frozen Foods Quiz Page 22 Confidential & Proprietary Copyright © 2008 The Nielsen Company What is the #1 frozen vegetable sold in the US? Potato at $1,581 MM Do French fries count as vegetables? – Mixed frozen vegetables sold $641 MM – Corn/corn on the cob at $403 MM – Broccoli at $253 MM – Peas at $240 MM Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 23 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Who is considered the father of the frozen food industry? Frozen Foods Quiz Page 24 Confidential & Proprietary Copyright © 2008 The Nielsen Company Who is considered the father of the frozen food industry? Clarence Birdseye, a US inventor, developed the quick-freezing process of food preservation in the early 20th century and is considered the Father of Frozen Foods. Mr. Birdseye invented the freezing process the same year that Mr. Nielsen founded the Nielsen company, 1923. Source: Wikipedia Frozen Foods Quiz Page 25 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which U.S. market sells the most frozen food relative to all food & beverage purchases? Frozen Foods Quiz Page 26 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which U.S. market sells the most frozen food relative to all food & beverage purchase? Market (supermarkets only) 1. St. Louis 2. Milwaukee 3. Minneapolis 4. Cincinnati 5. Cleveland 6. Richmond/Norfolk 7. Memphis 8. Chicago 9. Jacksonville 10. Pittsburgh Total U.S. Frozen Foods % of Food & Bev 15.0% 14.9% 14.4% 14.4% 14.3% 14.3% 14.2% 14.1% 13.9% 13.9% 12.9% Frozen Foods Quiz * * * * ** * * * * Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Supermarket Sales Page 27 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which department is growing faster, frozen foods or HBC? Frozen Foods Quiz Page 28 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which department is growing faster, frozen foods or HBC? Frozen food is growing faster than dry grocery, HBC and non-food grocery. 52 Week $ Vol % Chg. YA $178,088 MM $59,648 MM $55,884 MM $48,632 MM $38,026 MM +4.8% +2.8% +2.1% +11.5% -0.3% $36,914 MM +5.0% $20,268 MM $15,537 MM $12,725 MM $6,832 MM $2,815 MM +5.4% +8.5% +4.3% +9.2% +16.1% Department 1. 2. 3. 4. 5. Dry Grocery HBC Non-food Grocery Dairy General Merchandise* 6. Frozen Foods 7. Alcoholic Bev. 8. Fresh Produce (UPC-coded) 9. Packaged Meat 10.Deli (UPC-coded) 11.Fresh Meat (UPC-coded) Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart *General Merchandise includes departments tracked by Nielsen. Frozen Foods Quiz Page 29 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What percent of frozen food sales are generated by organic products? Frozen Foods Quiz Page 30 Confidential & Proprietary Copyright © 2008 The Nielsen Company What percent of frozen food sales are generated by organic products? Only 1.0% of all frozen food sales are generated by organics. • Currently a $305 million segment • Frozen food organics sales volume grew by 23% over last year • 1.2% of dry grocery sales are categorized as organics Source: Nielsen LabelTrends, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass without Wal-Mart Frozen Foods Quiz Page 31 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What frozen food association does Nielsen partner with? Frozen Foods Quiz Page 32 Confidential & Proprietary Copyright © 2008 The Nielsen Company What frozen food association does Nielsen partner with? National Frozen & Refrigerated Foods Association (NFRA) Official slogan “FROZEN FOODS - Fresh Ideas. Great Taste.” Replaced “Bring Us To Your Table! Freezer Favorites.” The new logo speaks to the innovation, quality and taste aspects of frozen foods. Source: www.nffa.org Frozen Foods Quiz Page 33 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: How many homes received the NFRA March frozen foods FSI? Frozen Foods Quiz Page 34 Confidential & Proprietary Copyright © 2008 The Nielsen Company How many homes received the NFRA March frozen foods FSI? More than 37 million households nationally heard about March National Frozen Food Month in an FSI run in major newspapers. The FSI featured coupons and package shots of the sponsoring manufacturer brands and directed consumers to a website to enter the $10,000 Freezer Favorites Sweepstakes. FSI week is the 4th top selling frozen foods week. Source: http://www.nfraweb.org Frozen Foods Quiz Page 35 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What is the top sales week for frozen foods in 2007? Frozen Foods Quiz Page 36 Confidential & Proprietary Copyright © 2008 The Nielsen Company What is the top sales week for frozen foods in 2007? Week ending April 7, 2007 (pre-Easter) $619 MM Easter week generated 2.1% of total frozen food sales for 52 weeks. #2. Week ending July 7, 2007 (4th of July) $612 MM #3. Week ending Nov 24, 2007 (Thanksgiving) $607 MM #4. Week ending March 4, 2007 (FSI) $604 MM #5. Week ending Sep 8, 2007 (Labor Day) $603 MM Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass without Wal-Mart Frozen Foods Quiz Page 37 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Is the average dollar ring for a frozen item higher or lower than average dry grocery item? Frozen Foods Quiz Page 38 Confidential & Proprietary Copyright © 2008 The Nielsen Company Is the average dollar ring for a frozen item higher or lower than average dry grocery item? Avg. $ Department Ring Alcoholic Beverage $8.76 Fresh Meat (UPC-coded) $4.22 Deli (UPC-coded) $3.11 Frozen Foods $2.74 Packaged Meat $2.70 Fresh Produce (UPC-coded) $2.39 Dairy $2.23 Dry Grocery $1.87 Higher by $0.87 Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass without Wal-Mart Frozen Foods Quiz Page 39 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Among Grocery/Drug/Mass channels, what percent of frozen foods are sold at Wal-Mart? Frozen Foods Quiz Page 40 Confidential & Proprietary Copyright © 2008 The Nielsen Company Among Grocery/Drug/Mass channels, what percent of frozen foods are sold at Wal-Mart? Wal-Mart frozen foods comprise 19% of all frozen foods purchased in grocery, drug and mass channels. • Frozen foods make up 12% of total food & bev purchases for Wal-Mart 4% in the drug channel 13% in the grocery channel Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 41 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: What % of frozen foods are private label and how does that compare to other departments? Frozen Foods Quiz Page 42 Confidential & Proprietary Copyright © 2008 The Nielsen Company What % of frozen foods are private label and how does that compare to other departments? Department Dairy Frozen Food Fresh Meat (UPC-coded) Dry Grocery Fresh Produce (UPC-coded) Packaged Meat Total Food & Bev % PL 39% 19% 15% 14% 13% 13% 19% Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 43 Confidential & Proprietary Copyright © 2008 The Nielsen Company Nielsen Frozen Foods Quiz QUESTION: Which frozen foods categories have the highest % of private label share? Frozen Foods Quiz Page 44 Confidential & Proprietary Copyright © 2008 The Nielsen Company Which frozen foods categories have the highest % of private label share? Category % PL Frozen Unprep Meat/Seafood Frozen Dessert/Fruit/Toppings Frozen Juices/Drinks Ice Ice Cream Total Frozen Food 45% 36% 34% 23% 23% 19% Private label drivers Source: Nielsen Strategic Planner, 52 Weeks Ending 1/26/08, Total U.S. Grocery/Drug/Mass Including Wal-Mart Frozen Foods Quiz Page 45 Confidential & Proprietary Copyright © 2008 The Nielsen Company Some internet links on frozen foods: National Frozen & Refrigerated Foods Association (NFRA, used to be NFFA) http://www.nfraweb.org NFRA’s Frozen Food Month site http://www.easyhomemeals.com American Frozen Food Institute http://www.affi.com/ Information on Clarence Birdseye http://en.wikipedia.org/wiki/Clarence_Birdseye History of frozen food through the decades http://www.affi.com/factstat-history.asp Frozen Foods Quiz Page 46 Confidential & Proprietary Copyright © 2008 The Nielsen Company Thank you Frozen Foods Quiz Page 47 Confidential & Proprietary Copyright © 2008 The NielsenCompany Company Confidential & Proprietary • Copyright © 2007 The Nielsen