By Denise Leathers
Through special arrangement, what follows is an excerpt of a current article from Refrigerated & Frozen Foods Retailer magazine, presented here for discussion.
From popular chains like P.F. Chang's and Panda Express to the mom and pop take-out joints popping up in towns across America, Asian restaurants are almost as ubiquitous as McDonald's. And slowly but surely that awareness is translating into growing sales of Asian foods at retail.
Figures provided by ACNielsen indicate dollar sales of Oriental frozen dinners and entrees in U.S. food, drug and mass merchandise outlets (excluding Wal-Mart) expanded 3.1 percent over the 13 weeks ending June 17, while sales of Oriental frozen meal starters/stir fry kits jumped 5.3 percent.
"Asian is such a popular flavor profile right now," said Gary Barnett, vp of marketing and sales at Amy Food. "But it's underrepresented (at retail). It's not even close to what it should be."
Part of the problem, said Barnett, is a misconception over who purchases refrigerated and frozen Asian foods. "Buyers often say, 'Well, we don't have a large Asian population here.' And I say, 'That's great, because that's not who we're selling to.' We're selling to everyone else, the people who can't prepare Asian themselves at home."
According to manufacturers, Asian foods are already so well established that consumers are now looking for new ways to consume them.
"We see a ton of innovations coming down the pike in terms of both delivery systems and flavor profiles," said Tim Tsao, vp of sales and marketing at Kahiki Foods.
With regard to the former, Asian-style wraps are particularly hot right now because they tap into on-the-run consumers' need for portability. Best described as "eggroll meets entrée," wraps often contain the same ingredients as traditional Asian entrées - rice, protein and vegetables - but it's all wrapped up in a wonton skin so it's more convenient.
When it comes to flavors, traditional choices like teriyaki, sweet 'n sour, General Tso's and orange still rank as favorites, Joe Zalke, partner/managing member at InnovAsian Cuisine, said, "flavors such as kung pao, Mongolian, spicy orange, lemon, Thai peanut and lemon grass are achieving greater notice."
The question of how and where to merchandise Asian foods seems to depend on the product in question. For example, manufacturers of Asian snacks and appetizers want to see them sold alongside other frozen snacks and appetizers, whether Asian, Italian or Mexican - not with other Asian foods.
Integration makes sense in frozen snacks and appetizers since two-thirds of the category is represented by "ethnic" varieties. But manufacturers of other frozen and refrigerated Asian foods prefer to display them together.
"In center store," said Mr Tsao, "retailers often use signs to designate different ethnic food sections - Italian, Mexican, British, etc. Why not implement a similar set-up in frozens?"
Regardless of which approach retailers take, manufacturers also stress the importance of cross merchandising Asian foods with popular "go-withs" in other parts of the store such as rice, sauce, fresh and frozen vegetables, protein. "Asian food is still, in many instances, an impulse purchase," said InnovAsian Cuisine's Zalke.
"Any retailer can become a destination for Asian foods," he said. "They just need to make a stronger commitment to giving Asian a prominent place in their merchandising calendars, schematics and menus."
Discussion Questions: How is it that various Asian cuisines such as Chinese, Japanese, Indian, Thai, Vietnamese etc. are so popular in foodservice but have not done as well on the retail side of the business? Do retailers have a handle on which of their consumers are interested in frozen and refrigerated Asian foods?
We knew a local Indian restaurant would become our favorite the moment we walked into it about five years ago because of the number of Indians seated at tables. Manufacturers may not have to come up with products that are exactly what is found in individual Asian countries to be successful but the claims made by some about "authenticity" are downright laughable. - George Anderson