As Frozen Sales Top 10 Billion Euros,
Prospects Good for Even More Growth
By LISA SHOEMAKER, QFFI Correspondent

Udo Perenz, board member responsible for sales at Iglo GmbH in Hamburg, is the new chairman of the Deutsches Tiefkühlinstitut. Board members recently elected to serve on his team are Hugo Ingenpass, manager of Bo*Frost in Straelen, and George Grewe, manager of KLM Cold Storage and Warehouse Münsterland in Rheine.

Annual meeting of Deutsches Tiefkühlinstitut addresses future trends and strategies for members of Germany’s retail and foodservice frozen food sectors.

There is good reason for the frozen food industry in Germany to celebrate. For the first time, per capita consumption of frozen products in the Federal Republic has exceeded the 38 kilograms mark – up almost 12 kilograms over the past decade to 3,136 million tons. Turnover registered approximately EUR 10.5 billion in 2007, an increase of 4.5% over the previous year.

In retail sales, fish, potato products, and vegetables (especially spinach and herbs) showed a strong performance, reported the Cologne-headquartered Deutsches Tiefkühlinstitut (dti). So did pizza (up by 90% since 1997); baguettes, spring rolls, and similar snacks (+221% during the same period!), and other frozen baked good (+140%).

In the gastronomy and catering sector, which accounts for 45.4% of total frozen food sales in Germany, results from a survey reveal that 59.6% of chefs have expressed a preference for frozen food components because they believe such products have been processed carefully to conserve freshness (and with that, preserve nutritional value), while only seven percent think the same to be true of chilled food.

So members of the dti, representing various interests of the German frozen foods business, were optimistic as they gathered in Nürnberg for their annual “Tiefkühltagung” meeting on June 3 and 4. The first day was dedicated to the election of the board of directors and its new chairman, Udo Perenz. The board member in charge of sales for Hamburg-headquartered Iglo GmbH succeeded Ulf H. Weisner, the former managing director of McCain GmbH, who had held the post since 1999.

The next morning, Manfred Sassen, managing director of dti, introduced a series of lectures delivered by experts from different walks of life. In his address, Mr. Sassen pointed out that an increasing number of companies have come to recognize the need to pool strengths in order to stabilize the market position of frozen foods. Making use of everybody’s competence and expertise will improve trade, and the exchange of notes on technology and science will ensure further growth, he suggested.

The first lecture was given by Thomas Knüwer, a journalist and blogger, who discussed different aspects of how companies may employ the Web 2.0 to reach and involve consumers, customers and clients. He swept through various online platforms offering commercial interests and individuals alike opportunities for representation, reminding conference delegates that the value and usefulness of websites will increase with the number of users they attract.

Quoting from web blogs kept by market managers and the responses they received from customers, Mr. Knüwer pointed out that such blogs are an easy and inexpensive way to conduct market research. They also provide customers with an instant means to be in contact with those in charge, giving them the opportunity to express complaints, requests and praise.

Chef-friendly Frozens

What do you expect of?... That was a question raised by Produkt & Markt, which conducted a survey among chefs in the catering business, asking what they expected of frozen food products. The results were presented by Heiner Junker, managing partner at Produkt & Markt.

On one hand, chefs are looking for solutions that provide them with cost effectiveness, flexibility and quality. Washed and trimmed vegetables in serving sizes, with no or little waste, and uncomplicated preparation methods for which the food handler does not need chef training, will save time and money. Full pantries, stocked year ’round regardless of season, offering a variety of products not apt to quickly decompose, will provide the chef with the opportunity to react quickly to customers.

While a buyer from an independent gourmet-style restaurant will tend to shop around for so-called fresh products, caterers favor frozen goods. But catering chefs have woken up to the latest trends in gastronomy as well. They are looking at regional grub or fusion cooking, even expressing an occasional affinity for items from the realm of molecular gastronomy, while there is a smaller but steady interest in wholesome foods, including whole grain, organic components and items that are free of allergens.

The final lecture was delivered by Jens Lönneker, psychologist and managing director of the Rheingold Institute for Qualitative Market and Media Analysis. His topic was entitled: Fire in the Ice – Looking at the Structure of the Modern Family in Order to Develop a Cool Image for Frozen Products, Creating New Ways of Surprising Consumers at the Point of Sale with Cutting Edge Concepts.

Modern women are pursuing their own careers while wanting to look after their family. New role models are needed and being developed – but while society’s structure is on the move, mouths still have to be fed. Initially, as women entered the full-time workplace outside of their home, an increasing number of stoves were left unattended as women cooked less without men jumping in to fill the void. The family rhythm was disrupted. While dad was watching television, brother refused to eat because he did not like what was served. Mom sulked and sister was off dieting with her friends. As there no longer was a set mealtime, family members tended to decide when and what to eat individually.

But with the new millennium arrived a turning point. After the 9/11 terrorist attacks in America (which also affected Europe), with the old Deutschmark gone, with pensions no longer offering security and more people depending on unemployment benefits, there was a return to more traditional values, such as family life and love.

Food and nurturing in Germany are associated with love. After all, “Love goes through the stomach,” or put another way, “The way to a man’s heart is through his stomach.” But Germans include children as well in this scenario, and nurturing needs to be delivered with love. Unfortunately, however, preparing frozen vegetables or french fries is not generally perceived as caring.

Lönneker suggested that the “magical qualities of the freezer” should be emphasized. It ought to be perceived as a treasure chest full of fresh, healthy, desirable foods. Every time consumers open the frozen food cabinet in stores or the freezer compartment of a home refrigerator they should have the feeling of having access to whatever their hearts – or stomachs, to be more precise – desire.

But this image cannot be achieved with the look of many frozen food departments, which tend to have a cold, aseptic atmosphere dominated by colors like blue, white and silver. They are full of unattractive, square boxes, said Lönneker, not an enticing place for lingering. His suggestion is to “bring in bright colors and funky shapes – a “warm ambience of love and adventure.”

The conference closed with the Cool-Cup 2008 Awards presentation [see story on previous page]. Prizes were given to marketers who made a special, convincing effort to attract customers to their frozen foods section, such as the presentation of seasonal favorites like duck and red cabbage in winter, or spare ribs and fish for the barbecue season, in retail freezer cases. Also recognized were retailers who sought sources for local products, providing additional information for people with allergies, or placing other food products that go with the frozen goods on shelves above the freezers.