OK, so it doesn’t have the same ring to it, but this could be the motto for executives at Kraft Pizza Co.’s Glenview, Ill., headquarters. With consumers clinging to their dollars in fear of ever-rising food costs, why would a frozen food processor exhibit such optimism?
Premium flavors in convenient sizes.
You’re familiar with the saying, “When life gives you lemons … make lemonade.” But what about, “When the economy gives you rising food costs … make … pizza?”
OK, so it doesn’t have the same ring to it, but this could be the motto for executives at Kraft Pizza Co.’s Glenview, Ill., headquarters. With consumers clinging to their dollars in fear of ever-rising food costs, why would a frozen food processor exhibit such optimism?
“Like almost all sectors of the economy, the frozen pizza industry is seeing consumers who are concerned about rising prices in many areas,” says Kraft Pizza Co. President Tim Cofer. “So, while this is a challenge, it is also an opportunity because frozen pizza is always an appealing option for a delicious, yet affordable, meal at home - for families or one- and two-person households.”
And with five different pizza brands - California Pizza Kitchen, DiGiorno, Tombstone, Jack’s and South Beach Living - Kraft is uniquely suited to provide consumers with the meal solutions they crave, Cofer says.
“While consumers may be dining out less, they still look for bold, unique flavors and premium ingredients to enjoy, so we have the opportunity to bring these same offerings to the home with innovative frozen pizza varieties,” he adds.
One of Kraft’s latest offerings is the DiGiorno Ultimate Focaccia Thick Crust Pizza. Cofer says the new product features artisan-inspired crusts topped with specialty ingredients. Varieties include Supreme with Roasted Vegetables on a Parmesan Crust, Meat Trio with Roasted Garlic on a Garlic Crust, Pepperoni with Spicy Red Pepper Flakes on an Asiago Crust and Four Cheese with Basil on a Sun Dried Tomato & Basil Crust. Made with extra virgin olive oil and Italian herbs and cheese, the Focaccia Pizzas fit well with DiGiorno’s premium focus.
“Consumers view the frozen pizza category on a continuum of quality and flavors,” Cofer explains. “Our California Pizza Kitchen and DiGiorno pizzas fall in the premium segment, while we consider our Tombstone and Jack’s [brands] to be mainstream.”
For Kraft, it’s the premium segment that has seen the most growth in recent years.
“DiGiorno is Kraft’s largest pizza brand with a nearly 20 percent share of the category,” Cofer says, citing data from ACNielsen, New York, tracking total U.S. sales excluding Wal-Mart for the 52 weeks ending June 28, 2008.
Cofer says Kraft’s launch of DiGiorno Ultimate - “premium pizza topped with the highest quality ingredients and our signature fresh-baked rising crust” - was the largest new frozen pizza product launch (in terms of dollar sales) last year, accounting for 33 percent of new product volume in the frozen pizza category. Meanwhile, California Pizza Kitchen’s sales grew to more than $100 million in late 2006. The growth of both brands has helped Kraft achieve a national pizza market share close to 40 percent, he adds.
Also helping Kraft are such new offerings as DiGiorno For One and California Pizza Kitchen For One. Launched in April, these personal-size pizzas (10.2 ounces or less) cook in the microwave in about five minutes.
“The number of one- and two-person households keeps growing, as does consumer demand for premium pizza,” adds Cofer. DiGiorno For One varieties include: Pepperoni, Supreme and Four Cheese Traditional Crust; Pepperoni, Supreme and Chicken/Vegetable Thin Crispy Crust; and Pepperoni, Supreme and Spinach & Tomato Garlic Bread Crust. Meanwhile, California Pizza Kitchen For One varieties are: BBQ Recipe Chicken, Four Cheese and Margherita Thin Crispy Crust and Sicilian Thin Crispy Crust.
This summer also saw Kraft add two new pizza varieties to its South Beach Living line, which includes products designed to help consumers eat better and manage their weight. The new varieties, Buffalo Style Chicken Pizza and Spinach & Mushroom, each contain 340-350 calories, 13 grams of fat and 8 to 9 grams of fiber.
While health and wellness is one consumer need on Kraft’s radar, Cofer says that the company will continue to seek others.
“The Kraft Pizza Co. is always talking to consumers to meet their needs and understand where trends are headed. By really listening to consumers through this outreach, we then transform their needs into category-winning ideas,” he says.
And soon Kraft will have even more pizza innovation capabilities. Officials say the company has embarked on a “major expansion at our Little Chute, Wis., plant,” which will increase production capabilities. The expansion will be complete in 2009.
AT A GLANCE
Kraft Pizza Co.Location: Glenview, Ill.
Top executive: Tim Cofer, president
Brands:California Pizza Kitchen, DiGiorno, Jack’s, Tombstone and South Beach Living
Channels served: Retail
On the Web:www.kraftfoods.com
