2016 into 2017 has been quite the year of milestones—the Chicago Cubs won the World Series, Brangelina (Brad Pitt and Angelina Jolie) split (gasp!!!) and the U.S. election brought out the good, the bad and the ugly in everyone.
But, all sports, politics and pop culture aside, it was the frozen foods industry that continued to make headlines.
Kraft and H.J. Heinz finalized their merger agreement to create The Kraft Heinz Co., co-located out of Pittsburgh, Pa., and Chicago.
ConAgra Foods, Chicago, completed its previously announced separation of the Lamb Weston business, and changed its name to Conagra Brands, Inc.
Nestlé USA, a Glendale, Calif.-based subsidiary of Nestlé S.A., announced plans to transition its corporate headquarters to Rosslyn, Va., beginning later this year.
General Mills, Minneapolis, announced plans to more than double the organic acreage from which it sources ingredients to meet its goal of 250,000 acres by 2019.
And, Palermo Villa, Milwaukee, Wis., received Refrigerated & Frozen Foods’ 2016 Frozen Foods Processor of the Year award.
Furthermore, many market trends studies indicate growth within the frozen foods market.
For instance, while total market sales of frozen products climbed by only 0.8% last year, online sales soared 18%, according to a report published by Allied Market Research, Portland, Ore. In addition, Allied Market Research forecasts a compound annual growth rate of 4.1% for frozen foods for the period of 2015-2020.
According to “Grocery eCommerce Index for Frozen,” a study published by MyWebGrocer, Winooski, Vt., there is a significant opportunity for frozen food brands to drive even more revenue online. The report found that not only are consumers buying frozen foods online, but they’re also spending more on these items online than they are in store.
New product development in the frozen food aisles has also spurred growth overseas, and a survey by Assocham (The Associated Chambers of Commerce and Industry of India) in 2015 predicted that India’s packaged food market would witness a quantum jump to $50 billion by 2017 from $32 billion due to increasing popularity of ready-to-eat packaged foods.
Welcome to Refrigerated & Frozen Foods’ annual Top 150 Frozen Foods Processors report, which breaks down the Top 25 frozen food processors in each of the six sectors. Processors are ranked by annual net sales and listings.
Category
Specifics about each report:
- Meals/Entrées—21 out of 25 processors (84%) updated their profiles.
- Meat/Poultry/Seafood—20 out of 25 processors (80%) updated their profiles.
- Dairy—17 out of 25 processors (68%) updated their profiles.
- Snacks/Apps/Sides—19 out of 25 processors (76%) updated their profiles.
- Bakery—15 out of 25 processors (60%) updated their profiles.
- Fruits/Vegetables—17 out of 25 processors (68%) updated their profiles.
Twenty-one companies appear in more than one category, and are marked with an * by the company name. For those companies that didn’t respond or refused to release figures, estimated sales numbers, which are marked with an asterisk (*), are based on company reports, news releases, market analysts’ reports, industry media and more. This report represents Refrigerated & Frozen Foods’ best efforts to reflect pertinent sales from all channels.
A special thank you goes to Refrigerated & Frozen Foods’ sister publications—Snack Food & Wholesale Bakery, National Provisioner and Dairy Foods—for their research and support in the bakery, meat/poultry/seafood and dairy foods sections, respectively. And, of course thank you to all of the respondents for taking the time to update their company information and providing the industry with the most up-to-date information possible.
Microwavable Foods Spur Growth in Frozen Meals Category
Frozen microwavable foods represent the largest and fastest growing microwavable foods product segment, according to a study produced by Persistence Market Research, New York.
And, North America and Europe are the largest market for microwavable foods, the study says, with the Asia-Pacific region expected to be fastest growing market for microwavable foods.
Here’s a snapshot of the Top 25 leaders in this category.
Changes from last year’s report
- Added J. R. Simplot Co.
- Removed P.F. Chang’s.
Significant events in 2016
- Tom Hayes, president of Tyson Foods, Springdale, Ark., succeeded Donnie Smith as chief executive officer, effective Dec. 31, 2016.
- Palermo Villa, Inc., Milwaukee, Wis., was named Refrigerated & Frozen Foods’ 2016 Frozen Foods Processor of the Year (November 2016 issue). Palermo Villa also acquired the assets of Connie’s Naturals, LLC, a Carol Stream, Ill.-based frozen pizza manufacturer.
- ConAgra Foods, Chicago, completed the separation of its Lamb Weston business, thus making the name change to Conagra Brands, Inc.
- Cincinnati-based AdvancePierre Foods acquired Allied Specialty Foods, Inc., a Vineland, N.J.-based manufacturer of raw and cooked beef and chicken Philly steak products for foodservice. Meanwhile, Christopher Sliva was appointed president, taking over for CEO John Simons, who will retire March 31.
- Ruiz Food Products, Dinuba, Calif., finalized the addition of two lines in its Denison, Texas, manufacturing facility, built a distribution center at its Florence, S.C., facility and remodeled its newly acquired Florence, S.C., facility to begin production of El Monterey and Tornados products.
- Nestlé USA, Glendale, Calif., expanded its Nestlé Quality Assurance Center in Dublin, Ohio.
- Pinnacle Foods Inc., Parsippany, N.J., reorganized its reporting structure and its reportable segments, as a result of its Boulder Brands acquisition.
- Ronan Minahan was appointed COO Americas for ARYZTA, Los Angeles, after John Yamin, CEO Americas, tendered his resignation.
- The Schwan Food Co., Marshall, Minn., formed the Schwan’s Chef Collective, a team of up-and-coming U.S. chefs who will assist in developing the next generation of Schwan-branded frozen foods. And, Schwan’s Consumer Brands, Inc., the retail subsidiary, released a study that outlines how manufacturers and retailers can communicate the benefits of frozen foods to shoppers struggling with the fresh vs. frozen question.
- Kraft Heinz Co., Pittsburgh, Pa., inked a 7-year partnership with mobile shopping company Fetch Rewards, Madison, Wis., announced plans to transition to 100% cage-free eggs in all North American operations by 2025 and formed a joint venture with Oprah Winfrey called Mealtime Stories, LLC.
- Kellogg Co., Battle Creek, Mich., was named Refrigerated & Frozen Foods’ 2016 Sustainable Processor of the Year (May 2016 issue).
- New York-based Blue Harvest Fisheries, LLC acquired High Liner Foods’ scallop business and processing facility in New Bedford, Mass.
- Bob Evans Farms, Inc. (BEF Foods), New Albany, Ohio, sold all of its restaurants and acquired Pineland Farms Potato Co., Mars Hill, Maine.
Significant events still to come in 2017
- Nestlé USA announced plans to transition its corporate headquarters from Glendale, Calif., to Rosslyn, Va., later this year.
- Ruiz Food Products plans to expand its Dinuba, Calif., corporate headquarters.
The Power of Frozen Meat
The meat department is one of the most important categories for many food retailers, according to “The 2016 Power of Meat,” a report produced by the Food Marketing Institute (FMI), Arlington, Va., and North American Meat Institute (NAMI), Washington, D.C.
That’s why many of today’s frozen meat processors are building, expanding and innovating for the future.
Here’s how the Top 25 processors in this category are beefing up the competition.
Significant events in 2016
- Cargill, Wichita, Kan., purchased a beef processing facility in Columbia, S.C., and acquired Five Star Custom Foods, Fort Worth, Texas, to convert a ground beef plant into a cooked meats plant in Columbus, Neb. It also opened a $50 million beef distribution center in Dodge City, Kan., expanded its Lake Odessa, Mich., egg processing plant, and sold two Texas Panhandle beef cattle feedlots.
- Greater Omaha Packing, Omaha, Neb., opened a portioned and ground beef warehouse.
- Jensen Meat Co., San Diego, Calif., introduced new fresh patties, bulk overwrap and modified atmospheric packaging, as well as added two individually-quick frozen patty lines, making room for 40 million pounds of additional capacity.
- Tom Hayes, president of Tyson Foods, Springdale, Ark., succeeded Donnie Smith as chief executive officer, effective Dec. 31, 2016.
- West Liberty Foods, West Liberty, Iowa, was named Refrigerated & Frozen Foods’ 2017 Refrigerated Foods Processor of the Year (January 2017 issue). It also opened Liberty Cold, a cold storage and distribution facility in Bolingbrook, Ill., became verified landfill-free company-wide and purchased the assets of Crystal Lake Farms and Free Ranger, Decatur, Ark.
- Cincinnati-based AdvancePierre Foods acquired Allied Specialty Foods, Inc., a Vineland, N.J.-based manufacturer of raw and cooked beef and chicken Philly steak products for foodservice. Meanwhile, Christopher Sliva was appointed president, taking over for CEO John Simons, who will retire March 31.
- In March 2016, OSI Group, LLC, Aurora, Ill., signed a multi-facility agreement to expand the use of Arrowsight remote video auditing. In June 2016, it acquired a Chicago-based processing facility formerly operated by Tyson Foods. Then, in August 2016, OSI acquired a controlling stake in Baho Food, a private Dutch company involved in the manufacture of meat products and other food items for the foodservice and retail industries, and in December 2016, acquired Flagship Europe from the Flagship Food Group, Denver, Colo.
- Golden State Foods, Irvine, Calif., broke ground on a new 165,000-square-foot, state-of-the-art meat processing facility in Opelika, Ala.
- New York-based Blue Harvest Fisheries, LLC acquired High Liner Foods’ scallop business and processing facility in New Bedford, Mass.
- JBS S.A., Brazil, announced its intent to pursue a corporate reorganization. Meanwhile, JBS USA, Greeley, Colo., completed a nearly $100 million expansion project at its Hyrum, Utah, beef processing complex.
- Smithfield Foods, Inc., Smithfield, Va., announced plans to acquire Clougherty Packing LLC, Los Angeles, from Hormel Foods Corp., Austin, Minn.
- Sanderson Farms, Laurel, Miss., opened a new $155 million processing plant and wastewater treatment facility in St. Pauls, N.C.
Significant events still to come in 2017
- Cargill announced plans to invest $50 million to expand its poultry processing operations at its Nakhon Ratchasima, Thailand, facility. And, while the protein business headquarters will remain in Wichita, it will relocate to another building.
- The joint venture between Seaboard Foods, Merriam, Kan., and Triumph Foods, St. Joseph, Mo., will come to fruition when it opens a fresh pork processing facility in Sioux City, Iowa, in the summer.
- In early 2017, OSI will open the new GenOSI plant in the Philippines. GenOSI is an OSI Group company and a leading processor of beef, pork, chicken and fish items in the Philippines.
- Mountaire Farms, Millsboro, Del., announced plans to launch a feed mill operation near its Laurinburg, N.C., site over the next three years.
Sustainable Packaging Heats Up the Frozen Dairy Aisle
The global market for dairy packaging will grow moderately during the forecast period and will post a steady CAGR of over 4% by 2020, according to a study produced by Technavio, Elmhurst, Ill.
Meanwhile, new product launches will create a demand for advanced dairy packaging in several regions.
Here’s a rundown of the Top 25 ice cream and frozen dessert processors in the industry.
Changes from last year’s report
- Added Tyson Foods.
- Removed Braum’s Inc.
Significant events in 2016
- Prairie Farms Dairy, Carlinville, Ill., and Swiss Valley Farms, Davenport, Iowa, merged to expand sales opportunities for both farmer-owned dairy cooperatives.
- General Mills, Minneapolis, acquired yogurt maker Carolina Administracao e Participacoes Societarias Ltda., a privately-held dairy processor headquartered in Ribeirao Claro, Parana, Brazil. General Mills also formed a strategic sourcing partnership with Organic Valley, La Crosse, Wis., to help about 20 U.S. dairy farms add around 3,000 acres of organic dairy production over the next three years.
- Tom Hayes, president of Tyson Foods, Springdale, Ark., succeeded Donnie Smith as chief executive officer, effective Dec. 31, 2016.
- ConAgra Foods, Chicago, completed the separation of its Lamb Weston business, thus making the name change to Conagra Brands, Inc.
- Nestlé USA, Glendale, Calif., expanded its Nestlé Quality Assurance Center in Dublin, Ohio.
- The Schwan Food Co., Marshall, Minn., formed the Schwan’s Chef Collective, a team of up-and-coming U.S. chefs who will assist in developing the next generation of Schwan-branded frozen foods. And, Schwan’s Consumer Brands, Inc., the retail subsidiary, released a study that outlines how manufacturers and retailers can communicate the benefits of frozen foods to shoppers struggling with the fresh vs. frozen question.
- The Kroger Co., Cincinnati, purchased the equity of Murray’s Cheese, as well as its flagship location in New York City, to form a merger of the two companies. Kroger also announced a strategic partnership with Lucky’s Market, purchased YOU Technology Brand Services, Inc., a digital coupon provider based in Brisbane, Calif., and announced new and expanded sustainability commitments to increase responsible sourcing and improve eco-stewardship by 2020.
- Earlier this year, Unilever, Englewood Cliffs, N.J., committed to ensuring that all of its plastic packaging is fully reusable, recyclable or compostable by 2025.
- Crystal Creamery’s Modesto, Calif., headquarters processing facility received EPA’s Food Recovery Challenge National Innovation Award for improving its sustainable food management practices.
- Fieldbrook Foods Corp. completed a $4 million expansion to increase ice cream production at its Dunkirk, N.Y., headquarters processing plant.
- Ricky Dickson, former vice president of sales and marketing for Blue Bell Creameries, Brenham, Texas, was named president, taking over for Paul Kruse, who retired.
Significant events still to come in 2017
- Nestlé USA announced plans to transition its corporate headquarters from Glendale, Calif., to Rosslyn, Va., later this year.
- The Dannon Co. announced plans to move its White Plains, N.Y., headquarters and accessory food laboratory to downtown White Plains.
- Prairie Farms, Carlinville, Ill., announced plans for an $8.7 million expansion to its Fort Wayne, Ind., facility.
- General Mills announced plans to restructure the company to maximize global scale, and plans to more than double the organic acreage from which it sources ingredients to meet its goal of 250,000 acres by 2019.
Market Leaders Enter Frozen Snacks Segment
The frozen snacks, appetizers and side dishes category experienced the most change, as a result of many industry players entering the market. For example, Kraft Heinz Co., Pittsburgh, Pa., introduced VELVEETA Stuffed Grilled Cheese and VELVEETA Cheesy Bites, McCain Foods, Canada, introduced McCain Marché, a line of oven-baked, never-fried frozen snacks, and Schwan’s Consumer Brands, Inc., Minneapolis, unveiled formulation updates and bold sauces to its Pagoda brand Potsticker and Crab Rangoon offerings.
Learn how the Top 25 processors in this category keep consumers coming back for more.
Changes from last year’s report
- Added Ruiz Food Products.
- Removed Bridgford Foods Corp.
Significant events in 2016
- Tom Hayes, president of Tyson Foods, Springdale, Ark., succeeded Donnie Smith as chief executive officer, effective Dec. 31, 2016.
- Monogram Foods, Memphis, Tenn., acquired Progressive Gourmet, a baked goods and hors d’oeuvres provider based in Wilmington, Mass.
- ConAgra Foods, Chicago, completed the separation of its Lamb Weston business, thus making the name change to Conagra Brands, Inc.
- Nestlé USA, Glendale, Calif., expanded its Nestlé Quality Assurance Center in Dublin, Ohio.
- Ruiz Food Products, Dinuba, Calif., finalized the addition of two lines in its Denison, Texas, manufacturing facility, built a distribution center at its Florence, S.C., facility and remodeled its newly acquired Florence, S.C., facility to begin production of El Monterey and Tornados products.
- The Schwan Food Co., Marshall, Minn., formed the Schwan’s Chef Collective, a team of up-and-coming U.S. chefs who will assist in developing the next generation of Schwan-branded frozen foods. And, Schwan’s Consumer Brands, Inc., the retail subsidiary, released a study that outlines how manufacturers and retailers can communicate the benefits of frozen foods to shoppers struggling with the fresh vs. frozen question.
- Bob Evans Farms, Inc. (BEF Foods), New Albany, Ohio, sold all of its restaurants and acquired Pineland Farms Potato Co., Mars Hill, Maine,
Significant events still to come in 2017
- General Mills, Minneapolis, announced plans to restructure the company to maximize global scale, and plans to more than double the organic acreage from which it sources ingredients to meet its goal of 250,000 acres by 2019.
- Ateeco, Inc., DBA Mrs. T’s Pierogies, Shenendoah, Pa., will celebrate its 65th anniversary on Nov. 17.
- Nestlé USA announced plans to transition its corporate headquarters from Glendale, Calif., to Rosslyn, Va., later this year.
- Ruiz Food Products plans to expand its Dinuba, Calif., corporate headquarters.
- McCain Foods Ltd., Lisle, Ill., announced plans to expand its production capacity for frozen French Fries in North America.
How Convenience Drives Frozen Bakery Segment
An increase in demand for convenient food products and the trend for greater taste, safety and consistency are the major factors driving the global frozen bakery products market, according to “Frozen Bakery Products Market by Type (Breads, Pizza Crusts, Cakes & Pastries), Distribution Channel (Artisan Bakers, Retail, Catering & Industrial), and Technology (Raw Products, Ready-to-Bake, Ready Baked & Frozen) - Global Forecast to 2022,” a report published by Markets and Markets, New York.
The cakes and pastries segment, for example, is projected to grow at the highest CAGR from 2016 to 2022. Increase in exports and imports of frozen cakes and pastries from dominant regions, such as North America and Europe, are the factors behind its continuously increasing market share in other parts of the world. In addition, specialty cakes and pastries with high starch-gluten ratio and low-protein wheat are gaining popularity, and are expected to contribute market revenue in 2022, the report says.
Retail currently holds the largest market share of the frozen bakery products market. Changing consumption patterns and the willingness and ability of customers to spend and try new products are key factors driving the growth of the retail channel. Moreover, the increasing number of supermarkets and hyper markets is moderately replacing fresh bread products made by chain bakeries and artisan bakers.
Find out how the Top 25 players in this category experienced growth.
Changes from last year’s report
- Added Hostess Brands.
- Removed Cole’s Quality Foods.
Significant events in 2016
- General Mills, Minneapolis, sold its New Albany, Ind., dough products manufacturing plant to a joint venture of New Mill Capital Holdings and Tiger Capital Group, both based in New York. General Mills also announced plans to restructure the company to maximize global scale, and plans to more than double the organic acreage from which it sources ingredients to meet its goal of 250,000 acres by 2019. And, in 2016, General Mills closed its Kaohsiung, Taiwan, frozen dough manufacturing plant, and its Berwick, UK, baking mixes and dough plant.
- Tom Hayes, president of Tyson Foods, Springdale, Ark., succeeded Donnie Smith as chief executive officer, effective Dec. 31, 2016.
- ConAgra Foods, Chicago, completed the separation of its Lamb Weston business, thus making the name change to Conagra Brands, Inc.
- Marianne Kirkegaard was appointed president and CEO of CSM Bakery Solutions, succeeding Robert Sharpe, who left the company to pursue other opportunities. CSM Bakery also re-located its global headquarters from Tucker, Ga., to Sandy Springs, Ga.
- Ronan Minahan was appointed COO Americas for ARYZTA, Los Angeles, after John Yamin, CEO Americas, tendered his resignation.
- Superior Capital Partners, LLC, a Detroit, Mich.-based private equity firm, sold its portfolio company, Dianne’s Fine Desserts, Newburyport, Mass., to an affiliate of Geneva Glen Capital.
- The Schwan Food Co., Marshall, Minn., formed the Schwan’s Chef Collective, a team of up-and-coming U.S. chefs who will assist in developing the next generation of Schwan-branded frozen foods. And, Schwan’s Consumer Brands, Inc., the retail subsidiary, released a study that outlines how manufacturers and retailers can communicate the benefits of frozen foods to shoppers struggling with the fresh vs. frozen question.
- Hostess Brands, Kansas City, Mo., entered the frozen food aisle with new deep-fried Twinkies, which claimed fifth place in Refrigerated & Frozen Foods’ 2016 Best New Retail Products Contest, Part 2.
Significant events still to come in 2017
- Rhodes International, Salt Lake City, Utah, will celebrate its 60th anniversary this year.
- Maplehurst Bakeries, a Brownsburg, Ind.-based division of Weston Foods Ltd., Canada, announced plans to build a 173,000-square-foot commercial bakery in Nashville, Tenn.
Frozen Fruit, Vegetable Market is on the Rise
The global frozen fruits and vegetable market will grow at an annual rate of 5.34% and reach 751 million tons by 2027, according to a report published by Market Research Future, Woburn, Mass.
Changing consumption patterns and busy schedules, as well as demand for newer flavors and ingredients have contributed to this growth. A rise in demand for convenience across the globe has also pushed frozen fruits and vegetables right up the food ranks.
The report, “Global Market Study on Frozen Fruits: Upsurge in Demand from Industrial Customers to Drive Market Growth over the Forecast Period 2016-2022,” shows a similar forecast for the global frozen fruit market alone, projecting annual growth at 5.32% by 2022.
The demand for frozen fruits like tropical fruits and citrus fruits, red fruits, kiwi, apricots and berries will be higher than others, the report says, as a result of them being used as inclusions in baked goods, dairy products and confectionery items.
In the frozen vegetable segments, spinach and legumes will see substantial growth due to the rise in demand for ready-to-eat foods.
New freezing technologies like individual-quick freezing (IQF) have further enhanced the concept of frozen foods for today’s consumers. Also, key factors like environmental sustainability of organic products, innovative packaging and storage methods are influencing buyer decisions.
Read on to find out today’s Top 25 frozen fruit and vegetable processors fare in the industry.
Changes from last year’s report
- Added Wyman’s of Maine.
- Removed Blencor, LLC.
Significant events in 2016
- Superior Foods, Watsonville, Calif., announced a joint venture with Magic Valley Frozen Foods, McAllen Texas, to create a wider range of products with the benefits of geographic diversification.
- ConAgra Foods, Chicago, completed the separation of its Lamb Weston business, thus making the name change to Conagra Brands, Inc.
- Glen Tellock, former chairman, president and CEO of Lakeside Foods, Manitowoc, Wis., took over for Dave Yanda, former president and CEO, who announced his retirement, effective May 30, 2016.
- Pinnacle Foods Inc., Parsippany, N.J., reorganized its reporting structure and its reportable segments, as a result of its Boulder Brands acquisition.
Significant events still to come in 2017
- General Mills, Minneapolis, announced plans to restructure the company to maximize global scale, and plans to more than double the organic acreage from which it sources ingredients to meet its goal of 250,000 acres by 2019.
- Inn Foods, Watsonville, Calif., announced plans to install new scales and baggers to pack Doy bags and other bag formats.
- Smith Frozen Foods announced plans to open a new repack facility for its IQF vegetables.
- Inventure Foods, Inc., Phoenix, Ariz., announced plans to add a second manufacturing site to its existing IQF berry processing and packaging facility in Lynden, Wash.