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Refrigerated entree explosion: category sales, up almost 20 percent from year-earlier tallies, are expected to increase primarily due to continuing new product proliferation and expanding shelf-display space.

Article Excerpt
During the past year, the $650 million-plus retail refrigerated dinner and entree category enjoyed a whopping 17.2 percent increase in sales for the year ending Jan. 26 vs. the same year-earlier period. Executives representing leading category brands point to new product introductions, increased household penetration resulting from expanded shelf-space, and the implementation of shelf-rack systems for these products, among the major drivers behind this huge sales increase.

And forward-thinking retailers recognize the potential of this category. Ukrop's Super Markets Inc., Richmond, VA, for example, carries private-label, national, and regional brands of refrigerated heat-and-eat entrees.

"All three have great success at Ukrop's," says Alan Warren, director of meat and seafood. "Our private-label is the high-quality Dining In line of products from Topco. The category continues to grow at double-digit rates [at Ukrop's] over last year. This is great news in that they are largely incremental sales that compete with the foodservice channel."

When asked which product line is best, Warren answers: "It's hard to say as I think this is largely personal preference. If sales are the indication, then the line of entrees from Thomas E. Wilson [being re-branded as Tyson], Smithfield, and Lloyd's stack up nicely."

Looking to the future, Warren is optimistic about this special category.

"We are encouraged that as the quality and variety from our suppliers continues to improve, so will the sales," Warren says. "The category shows no signs of...

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