Nestlé invests $100M to increase operations at frozen meals manufacturing unit in SC

Dive Temporary:

  • Nestlé USA is investing $100 million to increase its frozen meals manufacturing unit in Gaffney, South Carolina, based on a press launch
  • The ability prepares frozen meals entrees for manufacturers like Stouffer’s and Lean Delicacies. The growth will improve its manufacturing capabilities for these manufacturers.
  • Frozen meals gross sales soared through the pandemic, gaining 17.4% between November 2019 and November 2020, based on knowledge from IRI and the Worldwide Dairy Deli Bakery Affiliation. Many shoppers opted for frozen ready meals as a handy approach to stockpile meals or to take a break from cooking three meals a day.

Dive Perception:

Nestlé USA’s manufacturing unit growth might capitalize on the continued uptick in frozen meals gross sales. A number of the hottest frozen meals objects through the pandemic included pizza (37%), greens (37%), entrees (27%) and poultry (26%), based on analysis from The Freedonia Group, that are all core choices for Nestlé’s frozen meals portfolio.

The transfer additionally performs into a few of Nestlé’s broader progress technique, steadily shedding lower-performing manufacturers to release assets to deal with segments that present larger potential.

With the pandemic ebbing in america, comfort will proceed to be a pretty facet of frozen meals as shoppers readjust to understanding of the house and different each day calls for. Over one-third of shoppers, and 49% of millennials particularly, stated they’re prone to convey a frozen meal to work for lunch in a survey that Nestlé lately commissioned.

The pandemic additionally helped frozen meals customers uncover new choices. Early within the pandemic, roughly three-quarters of them skilled an out-of-stock tag for his or her most well-liked frozen meals merchandise, main two-thirds of them to go for totally different objects and 72% to strive different manufacturers, based on an April 2020 survey from the American Frozen Meals Institute. A 12 months later, frozen meals gross sales proceed their climb. AFFI’s most up-to-date report referred to as frozen meals a “pandemic powerhouse,” hitting $65.1 billion in retail gross sales within the U.S. final 12 months.  

Ramping up its manufacturing capabilities will assist Nestlé USA hold tempo with its main opponents because the frozen meals aisle turns into more and more crowded. For a few years, frozen meals suffered from public notion issues with many patrons viewing them as low high quality and unsatisfying. 

As frozen meals makers have honed in on what shoppers are in search of out of a frozen meal, notion has modified. One of many main modifications that manufacturers like Nestlé, B&G Meals, Conagra and Common Mills have made is to deal with healthful choices and clear label elements. Many shoppers turned centered on well being and wellness through the pandemic and shifted their meals purchases to mirror extra better-for-you choices. 

Nestlé has taken different steps to spice up its frozen meals choices. Through the pandemic, it launched a frozen line referred to as Life Delicacies that caters to low-carb, excessive protein, meatless and gluten-free eaters. It additionally debuted a refresh for over half of its Lean Delicacies portfolio, with health-conscious recipes below 400 energy and 10 grams of fats or much less. Out of the 18 new Lean Delicacies Bowls launched, 13 featured up to date best-selling recipes with 20% extra ounces of meals in addition to 5 new recipes.

A few of its inventive makes an attempt to lure shoppers within the frozen meals aisle embrace consolation meals dishes like LasagnaMac, which mixes two of its traditional choices into one dish. The promotional merchandise is just obtainable this summer time. 

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