4/16/2013 6:28 PM ET|
Big trouble in the frozen-food aisle
With products in the freezer section suffering flat sales, a major ad campaign is coming to get consumers interested again.
Once seen as cutting-edge and convenient options, frozen dinners and other freezer-aisle items are getting a chilly reaction from consumers in favor of fresh food.
Now the American Frozen Food Institute and the Frozen Food Roundtable, whose members include industry giants such as ConAgra (CAG) and General Mills (GIS), are fighting back. They're planning an advertising campaign that could shell out as much as $50 million, all to try to get consumers to buy frozen again, Advertising Age reports.
One of the biggest challenges to the frozen-food industry is the popularity of ad campaigns for restaurants like Wendy's (WEN), which advertises "fresh, never frozen," food, the story notes.
Wendy's isn't the only company jumping onto the fresh-food bandwagon. Chipotle (CMG) touts its "fresh cooking," while Subway urges consumers to "eat fresh."
Consumers are seeking out fresh food because frozen food is commonly associated with high sugar, fat, preservatives and other coronary-clogging baddies delivered in sauce-laden entrees and rich ice cream treats.
The result? Big-time freezer burn.
The frozen-food industry, which is searching for an ad agency to lead the push, wants to target baby boomer, millennial and Hispanic shoppers, AdAge notes.
One proposal from agency McCann Erickson, which is considered the leader in the ad agency search, suggests messages with taglines like "Frozen. How fresh stays fresh." Rival taglines from other agencies include "Fresh just frozen" and "Open up to frozen."
Frozen-food sales were flat in 2012, according to a study from Packaged Facts that was cited by Food Product Design.
The top reason for avoiding frozen food was a preference for fresh items. About one-fifth of consumers say they avoid frozen food for reasons such as not liking the taste or concerns about nutrition and quality, the study found.
Follow Aimee Picchi on Twitter at @aimeepicchi.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Recent action saw the Dow Jones Industrial Average (-0.1%) and the S&P 500 (-0.1%) slide into the red while the Nasdaq (+0.1%) remains above its flat line.
The selling observed during the past 30 minutes took place as the financial sector (-0.4%) dropped to a session low. In addition, the two commodity-linked sectors, energy (-0.6%) and materials (-0.5%) played a role in the weakness.
Copper futures have been retreating steadily since the start of the year, ... More
More Market News
Improving the US's technological infrastructure would be a costly undertaking, but government regulation could help boost connection speeds and competition.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'