The Retailing Future of Frozen
Foods
Presented by Ethan S. Sinick
Shirland Ventures Limited
May 2013
Frozen Food Growth Through Category
Innovation
Perception of Quality
Weight Management
Experimental & Easy
Living Well in Lean Times
Quick to Prepare
Value for Money
Extreme Indulgence
Source: All photos from Shirland Ventures except for Trader Joe’s Edamame and David’s Cookies from Trader Joe’s and Costco
Improved Visibility and Lower Costs from
New Freezer Designs
Greater use of glass and light in frozen sections
Better lighting, better
visibility as frost and
condensation are removed
with new system that also
reduce power costs.
Source: All photos from Shirland Ventures
British & Irish Multiples Growing in Channels
Where Frozen Foods Are Less Important
Frozen Less
Than 1% of
Floor Space in
Small Tesco
Stores
Morrisons is the latest Multiple Grocer to emphasize
Fresh and Chilled in Convenience
Limited inspiration as Frozen
Foods efficiently merchandised
for existing shopper needs.
Source: Store plan from Tesco and All photos from Shirland Ventures
Fewer Shoppers Per Week in Hypermarkets
Large Supermarkets in Western Europe
Consistent falls in store traffic offset by
inflation in many large stores
6% to 7% of floor space in a large Hypermarkets
& Supermarket remains dedicated to Frozen
4.0%
3.0%
2.0%
1.0%
LFL Traffic
LFL Basket
0.0%
-1.0%
Fresh Foods, Prepared Foods, Health & Beauty
and Chilled Foods are increasing space as
retailers look to reverse traffic declines
Source: Store plan from Tesco and chart from
Shirland Ventures analysis
-2.0%
-3.0%
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
There Are Some Truly Inspiring Frozen
Food Retailers
Source: Bord Bia Photo
Despite the Challenges, Frozen is
Growing in Surprising Environments
Colruyt’s success is a reminder that beautiful is not always effective
Source: Colruyt report
Frozen Specialists Benefit from the Mistakes
of Mainstream Supermarkets
Premium Frozen Chains
Frozen Discounters
EUR 1.3 billion, +15% per annum in Europe
2.1% of the total UK grocery market and about 10%
of the Frozen foods market.
Wholesale Clubs
Discount Supermarkets
More than 100 million EUR in frozen food sales
today with expansion into France and Spain
More than 11% of European Grocery sales
today rising to 13% by 2013
Source: All photos from Shirland Ventures except for Costco Leicester which is from a Costco presentation
More than 8 million European Households
Purchase Frozen Foods Direct to Home
Germany is the largest direct-to-home market with more than 4
million households purchasing from these networks.
This market is well-established and worth more than EUR 1
billion at retail sales value today.
Source: Company websites for photos
Frozen-Focused Retailers Can Teach Other
Retailers
Trader Joe’s and Costco are constantly providing samples of innovative frozen
food products. Trader Joe’s changes the order of products in the section every
few weeks to force shoppers into new items.
Image Source: Trader Joe’s Blog
Aldi’s Simple and Open Freezer Set
Clear labeling by protein type
Chest freezers promote an open feeling
Source: Shirland Ventures Limited Photo
Lidl Clear, Open, Early in Flow and Calls
to Action
Isothermal bags clearly visible
What to do today? Do you have an appetite?
Freshness and taste right here.
Source: Shirland Ventures Limited Photo
Lidl’s Mixed Category Freezer Set in
Mature Markets
Source: Shirland Ventures Limited Photo
E-Commerce and Delivery Channels Will
Grow Quickly in Mature Markets
Established Frozen
Specialist Delivery
Growth of Grocery ECommerce Delivery
Growth of Grocery ECommerce Collect
E-tailers Promoting
Quick Frozen Meals
E-tailers Enhancing
Frozen Margins
Seizing the Opportunity with Your Retail
Customers
1. Provide a category vision appropriate for the channel/customer and follow the ever-changing
tastes of shoppers and consumers
2. Take advantage of high-visibility frozen units with new packaging and merchandising tactics
3. Focus disproportionately on the channels where frozen is winning, discounters and e-commerce
are the priorities
4. Bring the category to life using best practices like sampling and calls to action
5. Encourage your retailers to emulate best practice and integrate frozen into the shopping
journey rather than as a specific section of the store
6. Encourage your retailers to implement concepts that eliminate concerns about transporting the
purchase home
END.
please contact:
Shirland Ventures Limited (www.shirlandventures.com)
One Kingdom Street, 4th Floor
Paddington Central
London W2 6BD
UNITED KINGDOM
Office: +44 203 402 3645
Email: ethan@shirlandventures.com