|
 News From Europe - April 2007  |
|
German Retail Frozen Food Innovators
Health, wellness, natural, organic, low-fat and light delight marketers and consumers alike. So do ethnic flavors to savor, ranging from Thai and Indonesian to Indian-inspired cuisine. Das ist Deutschland: the culinary capital for deliciously fatty bratwursts, thick wiener schnitzel, schweine-haxe mit kartoffelsalat (big pork shanks with potato salad), and grosses bier? But that’s not all, as thin in “in” and healthy eating is becoming a way of life among more and more consumers. In 2007, Germany is also very much the home of “Be Light” 1% fat liverwurst and many other low-fat items from Aldi, frozen ready meals from apetito containing no more than 3% fat, and sugar-free Nasch ice cream from Roncadin that is enjoyed by conventional dieters as well as diabetics. Folks can wash it all down with a bottle of Cola-Light, a cup of sugar-free herbal tea, or a glass of alcohol-free beer. These days wellness and healthy cuisine products, and items regarded as functional foods, are available in increasing number on supermarket shelves as well as on restaurant menus. Watching one’s waistline extends way past Brigitte diets popularized by the national women’s magazine of the same name. Even the buxom Saint Pauli Girl bar maid that graces the labels of export bottles of the Bremen brew seems to have slimmed down a bit. Guess she’s drinking and eating more responsibly, or is it her more contemporary hairstyle? “Low-cal, low-carb and low-fat – it’s all part of the extreme move to wellness by Baby Boomers and those who market products to them,” summed up Stefano La Vecchia, managing director of Galileo Lebensmittel GmbH & Co. “The now aging ‘forever young’ generation has a little extra money in their pocket, a little bit too much belly under their belt, and perhaps a little fear about dying prematurely due to complications from obesity, or eating the wrong foods.” Back in 2003 Bremerhaven-based FRoSTA boldly stepped where no diversified frozen food processor had ventured before, as reformulation of all its recipes specified the exclusive use of natural and wholesome ingredients and a total ban on artificial ingredients, coloring and preservatives. While implementation of the “Reinheits Gebot” 100% purity standard was costly, and sales of naturally more expensive products were initially disappointing, a resizing of packs to reduce price points later succeeded in energizing sales and profits. The conclusion drawn by most frozen food industrialists was that even though price-sensitive consumers in Germany’s discount-driven retail market are not keen on forking over more money for higher-standard products, they nonetheless want the option to buy them. Apetito, the well established foodservice supplier and meals-on-wheels provider, entered the German retail market with branded frozen ready meals last year – and health and wellness products were an important part of the rollout. “Our wellness line now has 45% distribution nationwide, and this is good for a second line. The four-item assortment, which ranges from a Pangasiusphanne Marseille fish dish to Hanchenphanne Bali, an Indonesian-spiced chicken specialty, contains no more than 3% fat,” said Andres Ruff, the apetito board member responsible for the Rheine-based company’s retail strategy. Enter Inulin How are food producers getting the fat out of meat products without sacrificing flavor in the process? Some are utilizing inulin, a heart-healthy functional food ingredient that increasingly is found in sausages. Gewürzmühle Nesse GmbH, a blended herbs and spice specialist and maker of marinades, is among the suppliers. “Use of the fiber allows consumers to enjoy the traditional flavor of bratwursts and other meats, but with only 3% fat in the final product,” said Suzana Stipic, marketing communications manager of the Loxstedt-Nesse-based company. “At a time when many people are paying more attention to eating healthy foods, this is the right product at the right moment.” Headquartered just outside of Bremerhaven, Gewürzmühle Nesse does a good deal of business with frozen fish and seafood processing companies as well as the meat sector. Grilled fish and barbecue marinades are produced in both organic and non-organic forms, as well as bio spice blends that are made to specification for leading packers of branded and private label fishery products. No newcomer to the organic scene, the company entered the then niche bio market more than 20 years ago. Today its wide assortment of bio-certified herbs and spices ranges from ground lemon peel and cayenne-pepper to coriander, rosemary and thyme. Among offerings on the marinade menu are Bio-Asia, Bio-Curry, and a newly introduced Bio-Marinade with Krokos Safran from Greece. “Organic products at the retail level are not as expensive as they used to be, which is further stimulating demand. If you go to an Aldi or Lidl discount store, you will find bio foods on almost every shelf nowadays,” said Ms. Stipic. Gewürzmühle Nesse, a member of the Frutarom Group since January of 2006, has a second blending facility in Sittensen. In addition to its large home market in Germany, the company exports substantial quantities of spice and herb mixes to numerous other countries in Europe and beyond.
Whether a health-minded consumer who eats wellness meals and organic foods to live, or one with more Epicurean tastes who lives to eat, there are plenty of products to meet either preference in the freezer cases of Germany’s retail outlets. In the ethnic cuisine scene, apetito serves up seven international recipes under its “Aus Aller Welt” line. The products, distributed in 700-gram bags, range from Curry Nasi Goreng and Paella to Shanghai Pan and Chicken Curry. The assortment compliments its German-style “Aus der Pfanne” assortment of nine recipes featuring beef, pork, chicken and fish with vegetables, potatoes, rice and/or noodles. Noting that the overall retail frozen food market in Germany advanced 5.4% in value to EUR 4.589 billion, and 3.9% in volume to 1,360.5 million kilograms last year, apetito’s Andres Ruff said that consumers continue to appreciate the main advantages of fresh-frozen products, namely: flavor consistency and high convenience. Fish products proved to be the big winner in the frozen food category during 2006, according to figures from ACNielsen, advancing 11.8% in sales to EUR 933.7 million, and 4.6% in volume to 122.9 million kilograms. At the same time the value of pizza, which has ranked as category leader for some time now, rose 4.5% to EUR 955.5 million, on a 3.4% increase in volume to 205.0 million kilograms. Meat products slipped slightly, however, down 0.7% in value to EUR 601.8 million, and off by 1.1% in unit sales at 135.2 million kilograms. Chill in the Air?
When asked if recent increases in chilled food space at supermarkets and other food stores pose a serious threat to the future of the frozen food retail department, Ruff responded thoughtfully: “There will be ongoing coexistence between both frozen and chilled sectors. Where retailers have expanded chilled cabinet space, frozen food sales have continued to rise nonetheless.” The apetito board member stressed that the frozen food industry has to do more to communicate that its products are almost always fresher than so-called fresh foods, and that the integrity of vitamins and other nutrients is better preserved when maintained at or below 0°C than when kept under chilled conditions. Ruff finds it remarkable that many producers of chilled items actually make their products with frozen food ingredients which are thawed out and then cooked. “Think about it,” he commented. “If you cooked something at home and put it in the refrigerator for 10 days before eating it, just how appetizing would it be? Probably, you would not eat it at all.” As for getting the word out about the freshness of frozen foods, apetito is spending approximately EUR 12 million this year to do just that. Its multi-media campaign is especially heavy on 20- and 24-second television spots that tastefully drive home the points of freshness, good flavor, wholesomeness and convenience of its retail product line. The intended targets of the messages are families and single-person households. With Iglo emphasizing its frozen fish and seafood lines, FRoSTA spending an estimated EUR 6 million annually to push its range of ready meals and vegetables, and now apetito investing handsomely in brand building advertising, it should come as no surprise that 5% growth in the branded ready meals sector is outpacing the 3% advance charted by private labels. “The key is to have a better product to offer,” said Ruff. “You can advertise as much as you want, but if the people don’t like what they taste, they won’t repurchase it. ‘Tastes Like Freshly Cooked’ is the main theme of our advertising.” He continued: “We back up the claim by paying very close attention to every detail during procurement of raw materials and production. For example, apetito does not coat products with sauce. Instead we place whole pellets of sauce inside the pack. This insures that the ultimate flavor is as robust as possible.” So far the results have been positive, as apetito’s retail product shipments have risen 40% since the advertising push started. “We think part of the reason volume is increasing is because new customers are coming to the category, people who in the past did not buy frozen ready meals regularly,” concluded Ruff. 1% Fat Chicken from Vossko
Another company emphasizing reduced fat offerings is Vossko-Tiefkühlkost GmbH. The Ostbevern, Germany-based value-added poultry specialist has introduced Hähnchenspisse, a skewered chicken item containing just 1% fat. Four to five pieces come per 250-gram retail box. “Hähnchenspiesse is a healthy-eating product as well as a finger food, which makes it a popular combination appreciated by convenience-minded consumers. We have listed it already with a major discount hypermarket chain,” said Josef Knappheide, retail sales manager. Vossko reported that early-year sales for its entire product line – which includes 100 different frozen items including pork and turkey – were up by 20%. The hope is that this burst of activity will maintain momentum well into the year, as was the case in 2004-05 when sales climbed by 22%. Returns in 2005-06 were not so robust, as turnover edged up by only 2%. The bird flu scare during early 2006 slowed down consumer purchases for the first two quarters. That, coupled with the rise of competition from chilled poultry producers and the fact that Vossko exited the non-cooked poultry business, were cited as primary reasons for the relatively flat performance.
“There is no doubt that sales of chilled poultry has taken some volume away from frozen, particularly in the area of chicken schnitzels and breasts,” said Dietmar Vosskötter, managing director. “We have even thought about entering that market segment, but ultimately decided that we will continue to do what we do best – produce innovative, wholesome and convenience-oriented frozen products.” Knappheide elaborated: “We will more sharply contrast our product range’s differences from chilled, and accentuate the obvious advantages that frozens have.” Quick Frozen Foods International was told that competition from producers of chilled poultry had nothing to do with Vossko’s departure from the non-cooked product business early last year. Instead, it was due to new European Union legislation which requires automatic 100% product recall if even a single sample tested in the marketplace proves positive for salmonella. “Our decision was based entirely on fundamental risk analysis,” explained Vosskötter. “We know that salmonella can typically be detected in as much as 20% of the farms in Germany and other European countries. And we also know that cooking poultry kills the bacteria, thus eliminating the problem.” The company geographically diversified its raw material supply line some years ago by establishing a processing plant in Brazil that provides large quantities of pre-cooked meat for further processing in Ostbevern. “We think that the likelihood of bird flu breaking out in Brazil is far less than in Thailand or other East Asian countries. Furthermore, our production there takes place in a remote area far from major urban population centers,” pointed out the managing director. Vossko runs a state-of-the-art factory in Germany that has three production halls with line processing capacity of 800 to 1,200 kilograms per hour. “From mini pork schnitzels and chicken breast fillets to skewers and wings, everything is prepared according to customer specifications. At least six different kinds of products are produced every day, ranging from small retail boxes and bags of nuggets and legs, to large, 10-kilogram packs of white meat for industrial further processors engaged in ready meal assembly,” said Knappheide. Salomon’s Wrap is Strong
Right On, Right On! Salomon’s Wraps are strong with flavor to savor. With a nod to the late, great James Brown, who had the strongest rap way before the Hip-Hop rappers of today held sway, Salomon FoodWorld has been wrapping and rolling with Wrap products in Germany since the late 1990s. And now that less has become more to adore, the Grossostheim-Ringheim-based company (Phone: +49 60 26/506-221) has come out with a line of Mini Wraps distributed in 1.19 kilogram packs containing 34 pieces. The cone-shaped, open end wheat tortilla-filled treats are available in three flavors: Oriental Chik’n, featuring marinated pre-cooked chicken breast fillet, carrot sticks, pineapple and cinnamon-accented oriental sauce; Mediterranean-style Lemon Chik’n, which serves up with green asparagus, baby corn and a mildly spicy sauce in addition to chicken; and American hit BBQ-Chik’n, which bursts at the seams with chicken and pepper strips dipped in tangy and smoky barbecue sauce. Mini versions of the finger food specialist’s microwaveable Chik’n Double Sticks range have also been introduced, as Salomon FoodWorld doubles down on its “small is beautiful” bet that down-sized convenience food fare will be big winners among consumers. Also new as different kinds of “fish sticks” are Fish Stick Lemon and Fish Double Stick Sweet Chili featuring, respectively, a marinated pangasius fillet wavily skewered on a bamboo splint, and the same species of farm-raised fish from Vietnam secured in place by two knotted bamboo sticks. Managing Director Philip Dean Kruk, who has led the diversification of Salomon well beyond the red meat sector – where it is the exclusive supplier of hamburgers to Burger King in Germany and a number of other European countries – is a firm believer in catering to “individualization” as a new thrust in food marketing. “Gastronomy, as well as the foodservice industry with all its facets, must be up to this new challenge by offering more variety, more options, and more consideration for individual needs and eating habits. That’s the only way to keep guests loyal and the only way to attract new guests...” he wrote in the current issue of Trend & Taste, the company’s house organ. “This means that the supplier industry and intermediaries must adjust to this new development and play an active role in this transformation process,” continued Kruk. “Flexibility is in demand; smaller batches, serving-size packaging, and an expanded assortment with focus on individual needs while preserving quality and freshness at the same time.” Rest assured that Salomon has positioned itself to respond to client demands for such products, as it gears up to debut more out-of-home specialty offerings. “From operators of fast-casual restaurants to upscale hotels, our customers want new innovations, and we are dedicated to supplying them,” said Bernd Stark, co-managing director of the company. “The challenge is to bring out new items that will also become high-volume sellers. We are up for that challenge, as seen in the success of our Asia Cigars [delicate pastry products filled with chicken and vegetable chunks] at a major quick service chain last year.” Another area where Salomon FoodWorld has been active for quite some time – in fact, long before the sector was recognized as a growth market by many food companies – is the organic field. “We have been offering such products since 2000, starting with Bio Beef Stix and Bio Beefsteak in 200-gram retail packages,” said Stark. “Then chicken wings and nuggets were added, along with a lasagna ready dish. Our latest bio additions, all of which are Naturland-certified, are spinach- and salami-topped baguettes [See page 90 of this issue for more details.].” What’s next on trend-spotting Salomon’s menu? While management preferred to keep its upcoming new product announcements confidential, it made no secret of a heightened interest in Indian and North African cuisine possibilities. As such, don’t be surprised if curry-spiced creations and Marrakesh-inspired lounge food express themselves as Salomon FoodWorld hits later this year. MiniPizza is Hot Stuff
“Low-calorie and low-carb products are fast becoming the next big thing in Germany,” stated Stefano La Vecchia, managing director of Galileo Lebensmittel. “As aging Baby Boomers are told by their doctors to consume fewer calories, it will mean that many existing recipes will have to be reformulated by food producers.” On the other hand, folks can choose to simply consume less, and thus still enjoy the full flavor of favorite eats – albeit in smaller quantities. Delivering “maxi” culinary pleasure in mini portions has long been the foundation of success for Galileo, which supplies frozen snacks, appetizers and finger foods to retailers in Germany and beyond. “MiniPizza is our main product, and pizza represents 75% of our business now,” said La Vecchia. “We offer not only genuinely traditional Italian taste, but real value for money. Our 360-gram packages contain 12 pieces rather than the standard nine count – at a price that is typically 50-cents less than what the competition charges. This is possible because of our low overhead relative to the big pizza producers.” Galileo’s wheat flour-base MiniPizza range, which has a hand-made look, includes Spinaci (topped with spinach, mozzarella cheese, onions, herbs and spices); Prosciutto (ham, pork, cheese, roasted onions, herbs and spices); Salami (pork, bacon, mozzarella, herbs and spices). “In Germany, mini pizzas have been among the most successful products in the frozen food section in recent years, and we were the first to launch a real stone oven pizza for the mini market,” said the managing director. “We are now investing in a totally new oven system to improve quality even more.” This year the Trierweiler-based company aims to double capacity at its plant, which has been running at the highest level of efficiency possible at a top rate of more than 100,000 mini pizza units per hour. “Next year we will expand again, and additional land has already been acquired for the project,” said La Vecchia. In addition to MiniPizza, Galileo produces Piadina, Crostini and Bruschetta with toppings such as tuna, tomatoes, onion and cheese. It also has a growing assortment of Wraps, which retail for 99-cents per unit. With Galileo’s place in the mini pizza and finger food niches firmly established, this writer put the perennial question to the managing director, whose father was an early pioneer in the large-size frozen pizza business in Germany, having launched the Pepino brand back in 1975: “Okay, Stefano, when are you getting back into the mainstream pizza business?” “I think there is no hurry to re-enter this segment at the moment, when there seems to be a massive move away from frozen to chilled pizza in some countries. You see it in the United Kingdom, and it is starting in Spain,” replied La Vecchia. “In Belgium and the Netherlands you see more chilled than frozen large-size pizza in the supermarkets.” He added: “This is why we are not in the large-size pizza market, but focusing instead on finger food and snack products.” Galileo’s strategy for expansion is to continue rolling out into European markets as well as further afield over the next 12 months. “Growth will come through greater international efforts. Beyond the continent, we see opportunity in the United States and Australia, and are looking for good partners in both countries to work with.” Developing the Asian Specialties Market
Hamburger Feinfrost has redesigned its Gastro-Star packaging to picture products within the boxes and bags. In the case of its Thai-style Khanom Tom the image shows a cross-section of one of the coconut balls, revealing its appetizing inner ingredients. “We want customers to visualize what they are buying,” said Jürgen Schulz, managing director of the Hamburg-headquartered company which distributes conventional seafood products and super-premium ice cream as well as a raft of Asian-style finger foods and snacks that range from paniere king prawns and skewered chicken to shrimp shao mai, vegetable samosa and mango sorbet. “Development of the market for Asian specialty products has still only started here. The potential in Germany alone is huge, and in much of the rest of Europe the work has yet to begin,” said Schulz, who has been sourcing custom-made frozen finger foods from Thailand for more than a decade, and importing seafood from that country for 23 years. “Thai imports are more expensive than those from Vietnam, but the quality is better and food safety is absolutely assured,” stated the managing director. “Now and then we lose business to lower-priced products made in other countries, but eventually the customers come back. So we must be doing something right.” A sampling of Hamburger Feinfrost’s hand-made sushi products proves the point. From delicate Niri topped with raw salmon, to seaweed-wrapped Tekka Maki with tuna, the range is a feast for the eyes as well as the palate. “There is a lot of competition in the sushi market now, with a good deal of production coming out of Germany as well as Holland and France. Most of what is available may look like the real thing, but it does not taste the way sushi should taste,” said Schulz. He went on to explain that one of the keys to making good sushi lies in the manual preparation of rice in small batches of about five kilograms at a time. The base or ball must be pressed together just right to maintain form, and the assembled product’s rapid deep-freezing is critical if the rice is to serve up moist and sticky after being thawed. Defrosting is also critical. The product should be given at least two hours to thaw at room temperature before serving. Eating it when too cold, or after being zapped in a microwave oven, is not advised. “Machines are available to automate production now, but hand-made sushi is always superior in taste and texture,” said the managing director. “The problem with machines is that you have to adjust the product to them, while people making sushi from scratch adjust their touch to the raw materials.” The cost of hand work pushes up the price of Hamburger Feinfrost’s sushi range by about 20%, compared to what machine-made items go for. “I can’t be the cheapest, and don’t want to be. What we sell is well worth the price,” declared Schulz. On the new product front, the company is rolling out a few more dim sum items including a green curry money bag-shaped treat. Different kinds of spice-coated chicken skewers will also be offered. When it comes to dessert, there’s plenty of classic Italian-made Giolito ice cream on the menu. Mandarin is the latest flavor to join the super-premium line, which includes a wide array of dairy ice cream and creamy sorbets with 68% fruit content. Distributed in 2.5-liter and 500-ml plastic buckets, as well as 120-ml paperboard packs for the single-serve market, the selection ranges from Chocolate, Cranberry and Chili created by noted patisseur Ernesto Knam, to Vanilla Romanoff with Strawberries, and Lemon and Vodka Sorbetto. Bottoms up! |
