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The Honolulu Advertiser
Posted on: Sunday, April 1, 2007

Frozen foods sector heats up

By Bruce Horovitz
USA Today

Steam is hot.

So hot, it's lifting the $28 billion frozen-foods industry out of the deep freeze. ConAgra Foods last week announced plans to roll out this summer Cafe Steamers — a line of 12 Healthy Choice meals — that can be steamed in the microwave in special containers.

ConAgra is one of several food giants that that have been introducing the United States to steaming technology — already used in Europe and Japan. It is now using it for entire meals.

Consumers seem gaga for microwave steaming. After suffering through five flat years, frozen-veggie sales closed 2006 up more than 6 percent, led by Birds Eye's rollout last year of Steamfresh vegetables. Green Giant followed with veggies, and now comes Con Agra with meals.

"Steaming will do for frozen vegetables what the iPod did for music," says Bill Partyka, a vice president at Healthy Choice.

Information Resources, a product research specialist, says Birds Eye Steamfresh will be one of 2007's fastest-growing foods.

Nutritionists say that microwave "steamed" food may look or taste better, but it's not healthier. "If the novelty makes people eat more vegetables, that's good — but the rest is hype," says Neal Barnard, nutritional researcher and author of "Breaking the Food Seduction."

Says Chris Rosenbloom, nutrition professor at Georgia State University: "It sounds like a marketing ploy. It certainly doesn't make me want to stock my freezer with them."

The new technology also does not come cheap. Cafe Steamers are up to 30 cents more than similar meals. And Birds Eye veggies in the Steamfresh pack are up to 25 percent more expensive.

Here's what's cookin':

  • ConAgra. The sauce for Cafe Steamers is in a special compartment, which acts as a steaming agent for the meal.

    The technology cuts cooking time from four minutes to three, says Chuck Baddley, R&D chief. The sauce container on the bottom has holes to let steam rise through the meal in the top tray.

    "To consumers, it will look and taste fresher," says Don Rhodes, marketing director. "It's not just smoke and mirrors."

  • Birds Eye. Steamfresh was a $100 million line last year and could become a $250 million line, projects Brian Dean, head of marketing at Birds Eye Foods.

    The Steamfresh line has gone from nine to 17 veggies. "It's our biggest new product innovation in 25 years," he says.

  • Green Giant. It has added eight varieties to the two Simply Steam products rolled out last summer, spokeswoman Pam Becker says. "Consumers believe they're healthier."