18 Apr 2008


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Kerry Katona: not the only mum at Iceland

Consultant editor Fiona Briggs on why the ice age cometh, not goeth

Ex-Atomic Kitten star and recent Priory guest, Kerry Katona, isn’t the only mum shopping at Iceland these days.

Indeed, if the frozen food specialist’s recent sales are anything to go by, Iceland is winning much broader appeal than D-list celebs.

The latest TNS Worldpanel data, which tracks grocery market year, shows Iceland’s share up 11.6% in the year to 23 March 2008.

Okay, Iceland’s 660 UK stores still only represent 1.7% of the total grocery market, but the growth is better than all of the top multiples, Morrisons (+11.4%) included.

In fact, only Aldi (+14.3%) is performing more strongly year-on-year.

Earlier this week, Andrew Phipps of global convenience consultants, srcg, tipped a "big comeback for the frozen aisle" this year, as consumers look to make cutbacks on their weekly shop.

In the light of rising food prices, Phipps highlighted the economical attributes of frozen food.

It’s a hot, or rather cool tip.

Figures just out from the British Frozen Food Federation (BFFF) show the frozen food market grew by 4.2% in the 52 weeks to 23 March (TNS again) and the sector has recorded improving growth, on an annualised basis, for the last eight quarters.

Specifically, fish is enjoying 10.9% year-on-year sales growth. Frozen potato products are up 7.8%, meat and poultry up 6.6% and frozen vegetables are steaming ahead by 5.8%.

The results come as no surprise to Talking Retail, which recently published the results of the leading frozen brands in our Top 100 Grocery Brands report.

Our figures, based on Nielsen data, were for all of 2007 and showed six out of the top seven frozen food brands in growth.

The trend, as the TNS data reveals, is continuing.

In frozen fish, Birds Eye and Young’s are competing head on. The result, according to the BFFF, is "terrific quality products being offered at very competitive prices".

Growth in frozen potato products, meanwhile, is being partly driven by price inflation but also promotional activity and npd.

Then there’s the Delia effect – David Craig take note.

Both McCain and Aunt Bessie’s are reaping the benefits of "glowing praise from the nation’s favourite cook", says the BFFF.

More grist to the mill then, or ice in the ice box, in this case.

As to the suggestion that frozen foods’ "biggest challenge will be that people don’t have enough freezer space because have been educated that chilled is best", I disagree.

I’ve just conducted a straw poll of office colleagues and all have fridge freezers in 50:50 proportions, 60:40 at worst. And, you only need to check out the Comet web site to clock the numbers of fridge freezers and American-style (read: super size) fridge freezers on offer.

And, I will also throw into the war chest (freezer), the fact frozen has appeal across the supermarket spectrum – at Iceland in the value market and at Waitrose at the premium end.

Interestingly, Waitrose is another beneficiary of the Delia effect. According to the Gazette online, the magazine of the John Lewis Partnership, 22 Waitrose own-label products feature in Delia’s How to Cheat at Cooking book including frozen fish, vegetables and fruits.

The Gazette also informs readers Delia even learnt a thing or too about frozen food and its preparation from Waitrose, proving you can teach old dogs new tricks after all.

While I don’t imagine the economical benefits of frozen food is the key appeal for Waitrose shoppers, I’m certain the wastage aspect is, not to mention the lure of more exotic freezer ingredients – frozen Alphonso mango any one?

I also notice the frozen food chain Cook is expanding with its 24th store recently opened in Banstead, Surrey.

It has grown in parallel with the growth of fresh and chilled foods – it even sells to farm shops and online and has just expanded its kids’ range and launched a range of frozen baby and toddler meals.

I don’t see Kerry Katona as a target customer but there are plenty of other mums who would be.

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