March of the microwaves

The in-a-rush generation reaches for the fastest food on the shelf

On the face of it, the helter skelter always-in-a dash lifestyle led by millions of today's Australians is a perfect fit with the fast improving microwave food technology and packaging.

After all, what could be easier for the busy office worker than grabbing a microwave meal or snack on the way home from a hard day at the coalface and saving the time and hassle of all that cooking …and all that washing up!

The same could be said for the working mum who is so busy racing the children to and from after-school activities that whipping up a gourmet meal at the end of it all seems like one step beyond. And, of course there are also the hard-working tradies who may be seeking a quick burger or chicken roll from their local convenience outlet.

Microwave foods on the march

Microwave foods then can rightly said to be on the march … but while the supermarkets are clearly making a big impact with their microwave meals ranges … how big of an effect is microwave food having in the convenience channel?

While the fresher contents of the traditional pie warmers are still seen as a more attractive alternative to some customers, many of today's C&I operators also boast a microwave to allow customers to heat up a product. The reality is that some consumers just prefer to eat a burger or chicken roll over anything else and the microwave allows C&I outlets to compete with Quick Service Restaurants for this custom.

Furthermore, it is an unfortunate fact of life that out of stocks can be a real problem in some pie warmers and a microwave food offering helps stop hungry customers from heading elsewhere at these times.

There are really two distinct components of the microwave food market: the heat-and-go snacks that C&I customers grab as they go about their busy lives dashing from one job to the next; and the take home market whereby customers pick up a microwave meal or snack, generally from the supermarket, and heat it up and eat it at home.

"Though growing in the convenience space, frozen ready-made meals in this channel make up a very small percentage of McCain's overall sales," said Nicki Anderson, Marketing Director for frozen food giant, McCain Foods. "Frozen meals are however useful in these channels for consumers that are on the way home and need to fill a gap through the week in their regular grocery purchase."

There is no doubt then that grocery is the dominant outlet for microwave products but there are perhaps a few indications that convenience could be ready to take a little bit more of the action.

Designed for in-a-rush generation

Companies like Mrs Mac's Pies and Australian Convenience Foods (ACF) with their 'ready go eat' products are now making specific microwave ranges that are designed to cater to the needs of the in-a-rush generation and their ever more frantic lifestyles.

ACF sells the 'ready go eat' microwave range as a frozen product in supermarkets to take home and heat. The company says that mums are often looking for a pantry filler for the family and these products conveniently meet that need ... but what about the convenience channel?

As well as its specialised supermarket microwave products, ACF also makes a microwave range specifically for convenience.

"There are many times of the day when C-Stores will not have hot pies or sausage rolls available in-store, therefore our 'ready go eat' microwave range is an ideal alternative," said an ACF spokesperson. "Some of our burger and chicken roll products are designed to compete with the Quick Service Restaurants and are attracting some of that market."

Mrs Mac's Pies launched its microwaveable products several years ago and these are also basically available through grocery.

"Mrs Mac's is developing a strategy with our retail partners to offer a whole 'take home' solution in convenience, with the microwave pies being a pivotal element," said Mrs Mac's General Manager of Sales and Marketing, Robert West.

"In convenience, pie customers often prefer the 'grab and go' fresh hot pies straight from the pie warmer … they don't want to sit and wait to microwave their product. They are time poor."

Opportunities present in off-peak hours

With the trend towards a more bakery style food offer in C&I outlets and fresh, convenient hot food so readily available, the off-peak trading hours perhaps present one possible opportunity for microwave food to further make its mark in the channel.

"At the moment in convenience, after-hours eaters are limited to burgers and chicken rolls which have appeal to some consumers say between 11pm and 3am," said Mr West. "However, I think going into the future there may be the potential for people to seek out something different and Mrs Mac's microwave pies certainly provide a great alternative."

Interestingly, in perhaps a sign of thing to come, Mrs Mac's Pies has recently entered into an agreement with V-Line Regional Rail Network whereby certain trains will provide microwaveable products to patrons in the trains themselves.

"I guess if you are sitting on a train for an hour or two the prospect of waiting for a pie to heat up is not such a terrible one," said Mr West. "However, I think when people are on the move a hot pie from a pie warmer is still hard to beat. It is what you grow up with and what you expect, and understandably there is a reluctance to change."

However, where Mrs Mac's sees a real opportunity for microwave food in convenience is in the take-home market.

"We have seen double digit sales growth in the retail channel for our microwave lines, with a growing band of loyal consumers enjoying the convenience of a quick and crispy light meal or snack," said Mr West. "The convenience channel has not developed a take home offer in the past, and we feel there is great potential to have a targeted range of products that consumers can rely on for a quick meal in their own home, adding incremental sales to the category."

Indeed, if customers are finding they are able to buy something for now and something for later in their local C&I outlet, then basket spend is almost certain to increase.

Australian Convenience Foods says that consumers are always looking for quality, consistency and value for money and believes its 'ready go eat' range of microwave burgers, sub rolls and Deli Dog Hot Dogs fulfills this need for consumers. It says these products are easy to maintain on shelf and with minimum waste.

"Australian Convenience Foods are leaders in the microwave burgers and sub rolls segment," said the ACF spokesperson. "We launched the Double Cheese Burger last year and are currently developing other microwaveable products for launch later this year."

The 'ready go eat' Double Cheese Burger has already proved a big hit with its core target customer of males aged 18-45, who are often tradesmen, and has been luring some custom away from the Quick Service Restaurants.

"As the 'food to go' offer has improved, more consumers are including situational food purchases in their purchasing repertoire," said the ACF spokesperson. "Shopping habits will continue to change as we see more shoppers eating on the go and shopping the category more often."

ACF says that while males remain the key market for its microwave snacks through the convenience channel, there is a growing segment of females who are looking for 'on the go' solutions.

As always, one of the key ways to maximise the potential offered from the category is for operators to keep their food areas clean and to ensure that they keep their shelves well stocked.

"The 'ready go eat' microwave range is available 24 hours a day in-store which provides retailers with more opportunity to make sales," said the ACF spokesperson. "Ready go eat burgers and rolls are always on shelf and have minimal waste or no waste if sales are managed by ACF."

ACF says that higher quality offerings in snack foods with better packaging, more appetite appeal, and newer, fresher offerings, will enable C&I retailers to continue to build consumer trust and confidence in the category.

"Sometimes the hot food offer can become depleted and ensuring adequate stock throughout the day is critical to sales success," said the ACF spokesperson. "ACF would also like to work more closely with stores to implement point of sale to attract users."

Technology marches on

While promotions, packaging and marketing can certainly help to lift sales, ultimately any food product will stand or fall on its taste and perceived nutritional value. ACF and Mrs Mac's are both proud of their offerings, and they have in part been helped by the advance in technology.

Mrs Mac's Microwave pies have a special microwave film in the packaging that helps to make the pies crispy once they are heated.

"These pies can be simply heated in their technologically-advanced packaging in a microwave oven at home or at work," said Mrs Mac's Mr West. "Heating the pies in their wrapper will ensure the pastry is heated and baked to crisp, golden perfection."

Mrs Mac's has recently released three new flavours to its microwave range, which now includes Beef Rendang, Pizza and Tex Mex, and the public likes what it is finding. The International Range was launched following the success of the microwave product in traditional flavours like Beef, Beef & Mushroom, Chicken Curry and, of course, Sausage Rolls and Pasties.

Value of innovation & new products

Innovation and new news is clearly then as important, if not more important, in food as it is in other categories.

Aside from its microwave food innovations, ACF has also recently launched a hot bakery product that it hopes will prove a big success in the category. The new 'ready go eat' Banger is described as a premium Kransky Sausage infused with cheese and wrapped in golden pastry.

"It is not a pie nor a sausage roll but is designed to offer an alternative to the current product offerings in the pie warmer," said the ACF spokesperson. "The product is designed for easy consumption on the go and offers an alternative taste profile to current products in the market."

Launching the 'ready go eat' Banger in time for winter, ACF says it will showcase the new product when consumers are returning to hot food and will aim to drive incremental sales in the segment.

Over at McCain, the company says it is also always thinking of new ways to make delicious and nutritious meals which are quick and easy to prepare.

"We believe that frozen food will continue to grow in sales as the public becomes more educated about the benefits of frozen versus fresh foods," said McCain's Nicki Anderson.

"In addition, frozen foods can deliver both quality and shelf life where chilled, canned and dehydrated or even fresh may not, making them a far more convenient option for consumers, while helping to reduce costly waste."

McCain says improving freezing technologies will continue to enhance quality and reduce costs.

Whether it be fresh bakery style food, frozen food or specifically designed microwave food, the aim then is always the same. To better cater to the food needs of today's consumer as they go about leading their increasingly hectic lifestyles … and to maximise sales and profit.

Microwave ranges have yet to make as big an impact through the convenience channel as many suspect they one day might, but they do already provide a useful sales addition to a growing number of outlets, particularly during non-peak times.

In the US and Europe, microwaves and microwave foods are currently far more popular than they are in Australia so the category still has room to grow.

And it is important that C&I outlets, and not just supermarkets, are well positioned to make the most of the opportunity heading their way.