A Slice of the Pie

While it's true that the frozen desserts category as a whole has been declining, it certainly has enough of what America wants — from indulgent flavors to guilt-free, 'better-for-you' formulations and an incessant stream of exciting new items — to turn that trend around.

"Overall the category is still suffering a little bit," says Bob Trombino, senior director of marketing and category leadership, Schwans Bakery Inc., Suwanee, Ga. " It's still pretty flat, and has been for the past year or more. Some of it probably has to do with health and wellness, plus there are a lot of other options out there for consumers."

One of those options, in-store bakery, may be responsible for a good share of the continued sluggishness.

Despite the industry trends, says Trombino, "We continue to do what we're doing. While the category is flat our business is still doing pretty well. Our share continues to hold on and grow, and a lot of it is around innovation. We believe that bringing new items to the category, and items with some uniqueness to them, really helps gets consumers walking over to the case."

The category "continues to be flat except for these types of items coming out of Europe," says Fred Liggero, vice president of sales, Delizza Inc., based in Belgium. "They are attracting attention because they're new. Some companies are coming out with slices, but a pie is a pie. With us, it's a new type of dessert. That's what keeps people coming back."

Delizza's most recent rollout was a 10.5-oz. Chocolate-Enrobed Cream Puffs product in the middle of 2005. Available nationwide, it sells at retail for $5.99 to $6.99. package weight 10.5 oz. The company plans to roll out another new item before year's end, and a second in 2007, though details were not available.

"According to the latest IRI and Nielsen, our desserts are trending up by about 20%," says Liggero. "Consumer awareness is getting greater for us."

"We know the category is slightly off," says Kerry Smith, president, FatBoy Premium Ice Cream, Bountiful, Utah, "(but) our company has experienced significant growth in comparable stores."

New Products on Parade

There has certainly been no shortage of activity. For example, Louisville, Ky.-based Adam Matthews recently introduced a line of home-style, old-fashioned cakes. Marie Callender's American Pie line recently launched a pair of new dessert items: Turtle Pie and I Love Chocolate Cream Pie. And in May, Downers Grove, Ill.-based Sara Lee Food & Beverage, the North American retail food division of Sara Lee Corp., won a trio of first-place honors at the 2006 American Pie Council Crisco National Pie Championship in Orlando, Fla. In the "Gourmet" category, Sara Lee's Signature Selections Orchard Apple Deep Dish Pie and Signature Selections Cinnamon French Apple Deep Dish Pie took home honors, as did Chef Pierre Red Raspberry Pie.

Jason Glover, marketing manager, indulgent and kid brands, Wells Dairy Inc., Le Mars, Iowa, says a continued consumer interest in 'better-for-you' products, even at dessert, remains a "major" trend. "Consumers are still very interested in light, no-sugar-added and reduced-fat foods, but they are tired of typical 'diet' foods. These consumers still want products that are premium and indulgent in quality and taste, just tailored for their diet needs."

FatBoy recently launched its limited-edition June-to-October novelty: Raspberry Cheesecake Ice Cream Sandwich. The package contains six 5-oz. sandwiches, and an SRP of $3.99 to $4.99. Chocolate Chip Mint was available from January through May, and Egg Nog from October to December.

Arlington, Mass.-based Brigham's Ice Cream launched Just Jimmies -- vanilla ice cream in a sugar cone topped with chocolate sprinkles — in April. Initially conceived as a special, limited-edition flavor, sales of the regional favorite have been strong and feedback so positive that the company has made it a permanent addition to its line-up.

April also saw Brigham's launch Fluffernutter ice cream, combining peanut butter layered with marshmallow cream. "Our Fluffernutter Ice Cream is a grown-up version of the classic combination loved by generations of families," says Darryln Leikauskas, vice president of marketing for Brigham's.

Category Innovation

In April, Schwan's Bakery's Mrs. Smith's brand launched a line of single-serving pie slices that reportedly contain 60% less sugar than their traditional fruit pies and 0 grams of trans fat. The microwaveable pie slices are sweetened with Splenda and available in Apple and Mixed Berry varieties. They are sold in $1.99 twin packs for easier portion control. The twin pack "keeps portions small," major theme with consumers, notes Mike D'Addieco, brand manager, Mrs. Smith's Bake and Serve.

In January, Schwans' Edward's brand began limited testing on Banana Creme, Coconut Crème and Tropical Pineapple Crème pies in about 25% of its ACV. The 27-oz. pies are priced at retail at $5 to $7, and as high as $9 in the Northeast. It also launched Butterfinger and Nestle Crunch slices, both of which have won "great acceptance by the trade and consumers," says Trombino. The slices are priced at $2.49.

"I don't know how much health and wellness really comes into play in this particular category," says Trombino. "There is certainly a segment of consumers who would still like to have their sweets, but because of some potential dietary restrictions are staying away from them. That's where the 'sweetened with Splenda' piece came in. The whole portion-control segment is really our platform around health and wellness, because it's all about trying to help consumers manage how much they're consuming."

Dreyer's/Edy's, Oakland, Calif., added five new flavors this spring to its Slow Churned Light ice cream. New to the line, which already includes more than two dozen year-round and limited edition flavors, are Almond Praline, Cherry Chocolate Chip, Double Fudge Brownie, Peanut Butter Cup and Raspberry Chip Royale. Dreyer's/Edy's says Slow Churned features half the fat and 30% fewer calories than regular ice cream.

Earlier this year, Blue Bunny introduced Light Ice Cream, Sweet Freedom Supremes and Personals. Light comes in eight flavors and features just half the fat and fewer calories. Sweet Freedom Supremes are the latest addition to the line of better-for-you novelties. They come in boxes of six in Raspberry Cheesecake, Peanut Butter Cup and Turtle flavors.

Personals are single servings of ice cream packaged in 8-oz. containers. The portion-controlled line is available in a variety of better-for-you flavors and indulgent flavors, including Light Bunny Tracks, Cappuccino Fudge Blitz. Double Strawberry, Peanut Butter Panic, Super Chunky Cookie Dough, Premium All Natural Vanilla, Super Fudge Brownie and Toasted Almond Fudge.