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The Honolulu Advertiser
Posted on: Monday, September 15, 2008

Grocers respond to growing appetite for prepared foods

By Sarah Skidmore
Associated Press

PORTLAND, Ore. — Somewhere amid the sweet pea salad with blue cheese and spicy beef wraps at the grocery deli counter, Natalya Toker found her lunch.

Toker said she prefers eating homemade food. But like many Americans, when she does choose to eat out, she is heading more often to the grocery store.

"I want to choose something healthier," the 21-year old said at a Fred Meyer store in Portland.

Grocery stores say they've seen the popularity of their prepared foods grow as consumers try to save time, money and sometimes calories. And the economic downturn has helped boost the trend as folks trade down from restaurants to dinner at home. So grocers are boosting the selections in response to people's growing appetite for prepared foods.

"When they are trying to return to more meals at home, they don't want to start from scratch like we would a generation or two ago," said Tim Hammonds, president and CEO at the Food Marketing Institute, an industry trade group. "That's why the prepared foods are so popular."

They come in ready-to-eat form — like rotisserie chicken, mashed potatoes or sandwiches. Or there are ready-to-heat styles such as stuffed salmon, lasagna or meatloaf that just need to hit the stove.

"I've been doing (this) for years," said Michael Braun, 54, buying his dinner from the New Season's grocery deli counter in Portland. "It's just easier."

Grocery stores have taken note of the popularity. Many grocers say they are seeing the biggest growth in simple comfort foods.

Whole Foods Market Inc., which opened its first store in Hawai'i last week, said its best-sellers include macaroni and cheese and mashed potatoes in some stores.

About 28 percent of shoppers do not know what they are having just two hours before the meal, according to the Food Marketing Institute, making the meal a great opportunity for grocers.

"I would think almost everybody is going to have their stores outfitted with a full-blown foods offering because they have to, or folks will go down the street," said Jack Horst, a grocery specialist and principal at retail consulting firm Kurt Salmon Associates.

Hammonds said it's a change that isn't likely to end when the economy improves.

"It's accelerating basic trends — recognizing that food at home is healthier, there is better control of the calories, content of food, less expensive and in tune with family values," he said.

"We are seeing the economic downturn speed up a transition that is tune with their lifestyles."