New Tastes San Antonio TX

Whether it's taquitos grabbed on the run, a steak burrito family dinner or pot-sticker party fare, ethnic frozen foods sales are growing exponentially as consumers try new forms, flavors and even "heat" levels. Frozen entrees, snacks and appetizers are easy ways for consumers to sample ethnic foods and, based on sales increases and projections, there's a whole lot of sampling going on.

Although Italian cuisine remains the most popular ethnic food, it has in effect joined meat and potatoes as an American staple in many cases. Hispanic frozen items are top-sellers with growth continuing to soar as new items are introduced. Asian foods, including Chinese, Japanese, Thai and Southern Indian, are increasing in popularity. African-American, or Southern soul food, has a timeless appeal.

Hispanic Sales Continue to Grow

The popularity of Hispanic/Mexican foods mirrors the popularity of Latin restaurant fare. "Latin inspired flavors are most popular at restaurants right now. It's all about premium ingredients and authentic regional Mexican dishes," says Eric Giandelone, editorial editor for Chicago-based Technomic, food industry consultants. "Today there is more of a return to authenticity in ethnic dishes and bold flavors."

Wal-mart, the world's number one retailer, is following the trend in ethnic frozen foods, in particular, Hispanic/Mexican, with its offerings. "We do carry different lines of ethnic frozen," says Scott Poole, vice president/DMM dairy/frozen foods, Wal-Mart Super Centers, Bentonville, Ark.

"Wal-Mart tries to be the 'Store of the Community' in every market, catering to our customers' needs." Introduced in fiscal 2001, the Store of the Community concept specifically tailors store merchandise to mirror the demographic makeup of the surrounding community in order to meet the shopping needs of local customers.

Wal-Mart doesn't use special displays or marketing for ethnic frozen food items. "Our ethnic items are integrated within departments," Poole says. While Wal-Mart doesn't celebrate ethnic holidays company-wide, celebrations may be held on a store by store basis. "Each store may, on their own, celebrate a certain holiday. Again, this goes back to our Store of the Community efforts."

Wal-Mart says it has been finding success with a new Hispanic frozen foods vendor, Quirch Foods, in Florida and says sales have been especially strong in Miami. Company plans are to expand Quirch into Georgia stores and eventually into the warehouse. Goya Foods is "another great supplier for the Latin customer,",according to Wal-Mart, and has great brand equity. Other Wal-Mart ethnic frozen suppliers include Texas Tamale Company, which services the west/southwest stores, and Cajun Kitchen.

Bryce Ruiz, president and COO of family-run Ruiz Foods, Dinuba, Calif., knows why Hispanic foods are so popular. "Our El Monterey brand products appeal to mainstream Americans or acculturated Hispanics," he says. "First and some second generation Hispanics continue to enjoy many traditional dishes from scratch. However, when any culture becomes acclimated to the busy American lifestyle, they begin to want foods that taste like they are made at home, have the nutrition of a home-cooked meal, but with the convenience of preparation in less than five minutes and portability for eating on-the-go. Our El Monterey brand products fit this description perfectly."

Ruiz Foods' line-up centers around handheld foods, a strong trend for frozen foods in general. "We have flavors specifically created for every day part and eating occasion. El Monterey is the number one brand in dollar volume for each monthly and quarterly period over the past year," Ruiz says.

El Monterey products include burritos, chimichangas, taquitos and quesadillas. New items include two Quesadilla flavors: Chicken and Cheese, and Steak and Cheese. Consumer interest in healthy foods has touched the frozen ethnic food market. "Our most important announcement currently is that all our El Monterey products now have zero grams trans fat," Ruiz says.

Windsor Foods subscribes to the restaurant and foodservice "taste test" as a method for determining what consumers will buy in frozen ethnic foods. With food service accounting for 70% of its business, the Ontario, Calif.-based company offers a wide-range of handheld frozen ethnic foods, from Mexican under the Jose Olé banner to its Asian private label. "One of our strengths is that we follow the trends of restaurants through our foodservice," says Neil Ritchey, vice president of sales. "We have a lot of new items, flavors and forms coming in Mexican and Asian foods."

Windsor's Jose Olé brand offers a variety of taquitos, burritos and other handheld appetizers. The company's Asian private label offers egg rolls, pot stickers and other handheld snacks, "a very nice growth area" according to Ritchey.

Kahiki Supper Club in Columbus, Ohio won awards for its Asian and Polynesian cuisine. The restaurant gave birth to Kahiki Foods, offering a full line of Asian frozen entrees, appetizers and family/club sizes, according to Tim Tsao, vice president of sales and marketing for the Gahanna, Ohio-based company his father founded. "Our products are unique because of our maniacal focus on restaurant quality, use of premium ingredients and innovative, bold flavor profiles," he says.

"From our sales experience and research, Asian frozen foods in mainstream retail and club stores are bought mainly by Caucasians, followed by African-Americans and Hispanics. This is because mainstream America doesn't yet know how to prepare Asian foods and have it taste good," Tsao says. A new trend Tsao sees in frozen ethnic foods is regionalization. Consumers are more aware of sub-categories within an ethnic type such Chinese, which is divided into Sichuan, Hunan, Mandarin and Cantonese.

Kahiki Foods is also following the healthy food trend with it's new line of seven all-natural Asian frozen products. "We will be the first manufacturer to launch a full line of both entrees and appetizers in the natural/organic frozen category. We have taken popular flavor profiles, such as General Tso and Teriyaki, and created new, natural products." Other new items include white-wheat flour wraps in Kung Pao and Mandarin Orange flavors and a vegetable egg roll with shiitake mushrooms and edamame. "The products have lower sodium levels, balanced calories and no trans-fats," he says.

With the tagline "Everyday Asian for Any Occasion," Schwan's Asian Sensations' hot snacks appeal to a broad audience. The brand name was coined in 2005 with the relaunch/repackaging of the former Pagoda brand. Asian Sensations offers egg rolls, spring rolls, wontons and pot-stickers. New items include Sesame Chicken Egg Roll, Teriyaki Beef Wonton and Buffalo Chicken Wonton, "a familiar American taste in the wonton format," says Tom Bierbaum, director of marketing-ethnic snacks for Schwan's Consumer Brands North America, Bloomington, Minn.

"Ethnic snacks in general are leading overall frozen snack growth because today's consumers are searching for bolder flavors and more adventurous snack alternatives, which ethnic cuisine delivers on," Bierbaum says. Based on research, Schwan's is positioning Asian Sensations to meet the needs of the mainstream frozen snacks/appetizer category, moving away from the label "ethnic side dish."

Another component of Asian fare, Indian cuisine, is offered by Amy's Kitchen, based in Petaluma, Calif. With entrees ranging from Mattar Paneer to Samosa Wrap, Steve Warnert, director of sales and marketing says the line has been successful for the company. "The line is proving itself nicely across all retail formats," he says. Amy's decided to offer Indian entrees because "we tasted the competition and believed we could make a better product," he says.