They're frozen flesh. They're easy to prepare. They taste
good, and the assortment is huge. Which explains why per capita frozen
pizza consumption in Germany, according to the Deutsche Tiefkuhlinstitut
(dti), passed three kilograms for the first time in 2006.
Pizza remains Germany's biggest selling frozen food product.
Nielsen reported in 2006 that of the Top 100 selling frozen items, no
fewer than 35 were pizzas, and they accounted for 45% of the total. Of
all those products, Wagner's Piccolini Salame Pizza was number two.
Only a fish stick beat it out.
Striving for innovation continues. "The consumer wants
variety, especially in a product like pizza that is eaten
frequently," said one industry executive in a recent interview with
a German magazine.
And variety is what the consumer gets. One of the newest
innovations to hit the market has been branded organic pizza in the
supermarkets, a recognition of the fact that organic is big in Germany,
with overall sales increasing 15% a year. The two market leaders, Dr.
Oetker and Wagner, came out almost simultaneously in late 2006 with
their versions.
Other recent innovations have been Flammkuchen, an Alsatian
delicacy that's being marketed like pizza, and pizzas with a
ciabatta base, taking advantage of the booming popularity of that
special Italian bread. Pizza makers also take advantage of the trends to
wellness (low fat ones) and snacks (minis and slices). They've gone
upscale to bring older consumers into the market. They've gotten
spicy; they've gotten big for the especially hungry, and they come
unbaked for those who like flaky crusts and an appetizing fragrance in
the kitchen. They come in multipacks, and Schwan's is even rolling
a sauce into crust at the edge.
According to figures from the dti, the three kilograms the average
German now consumes is more than double what was eaten 10 years ago--up
1.6 kilograms. Consumption was 245,000 tons in 2006, compared to 116,000
tons in 1996. The lion's share of these pizzas, 94%, are sold at
retail, including the home delivery services and the discounters. The
foodservice share of frozen pizza was 14,000 tons.
It's hardly an exaggeration to say that the frozen pizza
market in Germany has a top and a bottom, but hardly any middle. At the
top are the two giants: Dr. Oetker of Bielefeld (Fax: +49 521-155-3030),
which has bought much of Unilever's pizza business, and Wagner
Tiefkuhlprodukte of Nonnweiler-Braunshausen (Fax: +49 6873-665491), of
which Nestle is a big stockholder. Between them they control more than
70% of the market for branded pizzas. Oetker still has the larger slice
of this pie, but Wagner is moving up. From January to May 2007,
according to Nielsen, it had 25.4% of the market (excluding Aldi
stores), compared to 24.6% in 2006.
At the bottom are the bargain-priced private label pizzas sold
mainly in the giant discount grocery chains like Aldi and Lidl. This too
is big business and there are a number of players here. Wagner also
serves the store brand market, while Oetker does not.
Other players are Schwan's Food of Osterweddingen (Fax: +49
39205-432550); Freiberger Lebensmittel of Berlin (Fax: +49 30-40704202),
Europe's largest supplier of store brands; Galileo Lebensmittel of
Trierweiler (Fax: +49 651-82792-33), which specializes in mini-pizza and
snack products; and Hasa of Burg (Fax: +49 3921-4828-28), a relative
newcomer to the scene.
Trying to get established in the middle presents a real challenge.
But the firms named, and others, keep trying. Perhaps they are mindful
of the fate of Iglo. This brand, then a part of Unilever, had 60% of the
European pizza market in the 1980s, but now has completely withdrawn
from it.
Organic Market Still Heating Up
Organic pizza isn't a particularly new idea. Wagner has been
producing it for some time under different brand names for health food
stores, and Freiberger was out with it in Great Britain as long ago as
2000. What's new is that it is no longer a niche category. Organic
pizza has gone into the supermarkets with other organic foods, bearing
the brand names of the biggies. And its price, 2.59 to 2.89 euros, is
hardly more than other branded pizzas.
The organic entry from Wagner is "Original Wagner Natur
Lust," which it offers in three of its classical forms; salami,
four-cheese and mushroom. Dr. Oetker calls its organic entry Ristorante
Biologica, and presents it in two forms: Biologica Speziale, with
cheese, salami, tomatoes, mushrooms and ham; and Mozzarella, with
tomatoes, basil and mozzarella.
Organic pizza has already reached the discount stores. The Plus
chain offers Pizza Vegetaria under its BioBio brand.
Though its production is mainly for the discounters, the new
company, Hasa, presents an organic pizza under its own brand name:
Italissimo. All producers assure the customers that the product is made
under controlled ecological conditions and free of additives. The
packages are usually green and bear the six-sided European organic seal.
Flammkuchen comes on a dough base, like pizza, but is very
different as to topping. It features onions, creme fraiche and smoked
meat rather than cheese and tomato. Nevertheless, it has taken the shape
of pizza (it used to be rectangular) and is offered in the freezer
alongside traditional pizza. Oetker recently had a special promotion for
its Bistro Flammkuchen, offering a wooden board of the sort that
Flammkuchen is served on in France [see story above], and Wagner is in
the race with Herzhafter Flammkuchen.
Ciabatta, an Italian bread from a very wet dough containing olive
oil, has become very popular in Germany of late, and Oetker has seized
on the trend, using the bread for the base of its Ciabatone range. It
comes in four varieties: Mozzarella Pompodori, Calabrese Salami, Tonno
and Formaggi Misti. The name Ciabatta is Italian for bedroom slipper,
and refers to the shape of the loaf.
Snack Pizzas have been getting smaller and smaller. Oetker began
with the half-sized Piccola and then went on to the Piccolissimo, with
nine to a standard package. Wagner offers Piccolinis, likewise nine to a
pack. But Galileo claims that it has come up with the
"correct" mini pizza in its Pico-Bella. It is six centimeters
in diameter, and, according to Managing Director Stefano La Vecchia, the
only one on the market that is that size. It's not only ideal for
children, he claims, but also good for use as an appetizer and as an
accompaniment for a drink. With the PiccoBelli, he told Quick Frozen
Foods International magazine, "We have on the one hand firmed up
our strong position in the snack market, and on the other hand regained
our foothold in the pizza market."
Snack pizzas have also reached the discount stores. Paplina of
Apolda offers Pizza-Slices Hawaii under the brand McEnnedy American Way.
Schwan's, which knows something about the American way,
presents its mini pizzas under the Freschetta brand name with SpongeBob
pictured on the package. Schwan's German plant exports to much of
Europe, as demonstrated by the fact that the instructions on Freschetta
mini pizza boxes are in six languages.
If small pizzas are big on the market, perhaps big ones can be
also. Sometimes the consumer is particularly hungry. And that is why
Schwan's recently introduced the Freschetta XL to the German
market. It's big, at 510 grams; comes unbaked for the
do-it-yourself cook, and also has a cheese sauce rolled up in the outer
crust. It's a little brother of the Freschetta XXL which, at 750 to
800 grams, was even bigger, but didn't sell well in Germany. They
liked it in other countries, notably Scandinavia and Spain, where, it
would seem, the people tend more to share their food. Germans apparently
like individual portions, so the pizza was reduced one size, and retails
at 3.79 euros.
[ILLUSTRATIONS OMITTED]
Schwan's hopes that it at last has a winner for the German
market. It came to Germany in 1998 with a half-century of American
know-how behind it. The company produces mainly house brands for stores
all over Europe, and claims to be the dominant supplier in Denmark and
Iceland, with 60% and 65% of the markets, respectively. Before coming to
Germany it had become the market leader in Great Britain, but the
products that had led to its success there didn't work in
Deutschland. The crust was too thick, the diameter too great, the sauce
too spicy, the price too high and the competition too entrenched.
So Schwan's has learned that the European markets are very
individual; that salami, a must for pizza in Germany, doesn't
especially appeal to Scandinavians, who go for Bolognese and ham. Its
plant is near Magdeburg, in an area that suffers from high unemployment
and provides numerous incentives for employers to locate there.
These incentives also drew the new company, Hasa, to the Magdeburg
area. Its very modern, specially built plant at Burg went into operation
in 2006, producing mainly house brands for the discounters. Among many
others it offers an assorted seafood pizza under the brand name Da
Marco.
[ILLUSTRATION OMITTED]
However, it also has a brand of its own, Italissimo, and produces
the premium Kafer label for a Munich dealer in upscale groceries.
Cofounder Andreas Czayka claims that his factory for the first time
permits a complete industrialization of the traditional Italian pizza
craft.
COPYRIGHT 2008 E.W. Williams Publications,
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NOTE: All illustrations and photos have been removed from this article.