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frozen foods benefiting from recession
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the frozen foods market is showing signs of a revival in the tough economic climate, with indications that consumers are switching back from higher-priced chilled foods to frozen alternatives in order to save costs and reduce waste. data from tns worldpanel shows a steady increase in the growth rate for the uk frozen food sector over the past year, from 3.1 per cent 12 months ago, to 4.2 per cent in march, to 4.6 per cent in june, to 5.0 per cent in september. the latest data, from november 30th, valued the market at £4.867bn (c €5.38bn at today’s exchange rates) and put growth at 5.8 per cent. brian young, director-general of the british frozen food federation (bfff), told foodnavigator.com that this boom is directly linked to the recession: “the underlying reason is value.” the product sector that perhaps best illustrates the turn-around is ready meals. in december 2007 they were in value decline of 3.8 per cent; now, the growth rate is 3.4 per cent. the difference in price between a frozen and a chilled ready meal could be as much as 40 per cent – although a precise comparison is hard to make due to the different ranges and value lines on offer. young predicts that the frozen boom could well attract more innovation and product launches. with ten consecutive quarters of accelerating growth it is “a much more attractive marketplace for everyone”. in addition, consumers are trying to cut down on the food they waste – and that may mean buying less chilled food that has a short shelf life in the fridge. wrap has estimated that around ₤420 (c€464.7) of food is thrown away by an average family in the uk each year. “when the economy is difficult and household budgets are tight, people try not to throw so much away,” young said. what is more, there is an element of hunkering down to ride out the storm. people are looking to make less trips to the supermarket, since the experience and the choice on offer tempts them to buy. “stocking up the freezer with frozen food means you go to the shops less.” birds eye view the bbbf’s observations are already being born out in the financial results of frozen food firms. privately-owned birds eye iglo, which was bought by permira 18 in 2007, increased its uk sales in the uk by 5 per cent in 2008. ebitda grew 10 per cent over the year. “people are definitely shifting towards frozen food from more expensive chilled,” chief executive martin glenn is reported as saying by the financial times. “hopefully we will be coming out of 2009 as one of the companies that has – in spite of adversity – posted good results.”
Source :Food Ingredients Food Science - Additives, Flavours, Starch
Date :
7
January
2009
Category :
Food Industries Plant
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the current pace of life demands speedy solutions from the food industry. the ready meals market in western europe, one of the strongest performing areas of the food sector worth €7.3 billion in 2001, is set to grow to €8.7 billion by 2006. a new consumer insight programme, the result of consumer surveys, focus groups and interviews from market analysts datamonitor, presents ten key consumer insights for ready meal, prepared pizza and meal kit players.
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simplot australia has now taken over the frozen meals brands of nestlé after reaching an agreement a couple of months ago. the melbourne-based subsidiary of us firm j r simplot took control of the licence of prominent frozen meals brand lean cuisine and maggi frozen brand at the end of november. the deal also involves the acquisition of the papa giuseppi frozen pizza brand and the manufacturing facility at pakenham in victoria.
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latin america presents growing opportunities for investment for food manufacturers, even as the economic crisis takes its toll on american and european markets, according to a new market report. specialist research organization leatherhead food international released the report, entitled ‘emerging food markets in latin america’, in which it analyzes opportunities for food manufacturers on the continent.
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latin america presents growing opportunities for investment for food manufacturers, even as the economic crisis takes its toll on american and european markets, according to a new market report. specialist research organization leatherhead food international released the report, entitled ‘emerging food markets in latin america’, in which it analyzes opportunities for food manufacturers on the continent.
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spanish food consumption increased by 1.9 per cent last year compared to 2001, according to the latest data from the country's ministry of agriculture (mapa) announced this week by agriculture minister, miguel arias cañete. the figures confirm the continuing increase in annual food consumption which began in 1997. the figures are based on food consumption and expenditure data from 6,000 households, 700 hotels and restaurants and 200 catering organisations.
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retail sales of prepared foods in europe showed an increase of 5.2 per cent between 1996 and 2001, according to a recent study by market analysts datamonitor. once aimed at \"singles\" food manufacturers are now turning to families and children. according to datamonitor prepared meals have become standard fare as consumers across europe look to reduce the amount of time they spend on routine tasks such as cooking.
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Coca.Cola
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PEPSI
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Mcdonald
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Nestle
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Mars
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Baskin & Robins
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Nutrika
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Mumika
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Chika
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