Spotlight on Canada: retailers continue to stock up on healthy-eating products: growing health and nutrition concerns influence consumer shopping patterns.

"There's a new revolution in the food industry in Canada, said Vikram Bawa, marketing director for Nestle Canada Inc. Stouffer's Lean Cuisine division. "It's called Stealth Health. And Stouffer's is leading the charge."

Due to growing health concerns, consumers not only rely on basic nutritional needs but are also looking for health benefits, Bawa pointed out. Pressure is coming from our aging population and expectant and new mothers who want to improve or maintain their family's health standards.

Calla Farn, director of corporate affairs, government and public relations for McCain Foods (Canada), believes that consumers continue to be focused on health and wellness. "They are also looking for value," she told Quick Frozen Foods International. "And because lifestyles are busier than ever, there is increasing demand for convenience."

As Canadians are getting older, they are also looking for healthier dining options, she added. Frozen food processors are working to fulfill that growing public desire for food that is healthier--yet still tasty--by cutting out trans fats, offering options with low sodium and hitching their wagons to Canada's new Food Guide to Healthy Eating.

"We are focusing our innovation efforts on Better-For-You foods that offer great taste, convenience and good value," Farn said. We have already eliminated trans fat from all McCain branded french fries and most of our other potato products as well. This year, all of our potato products will be trans fat-free. We also offer low-sodium fries and are looking at ways to reduce sodiumlevels in many of our other products. All of these actions appeal to health-conscious consumers."

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McCain Foods Canada is planning to rebuild its processing plant in Florenceville, New Brunswick. The cost of the project, which is scheduled to get under way in the spring, is estimated to be about $70 million. The new facility is expected to be completed by the fall of 2008.

While the strength of the Canadian dollar impacted McCain International's competitiveness in exports last year, overall business was good, Farn reported. "Our packaging innovation and efforts to make consumers aware of the nutritional benefits of potatoes helped fuel growth in the retail potato category," she said.

"We are optimistic about the year ahead, but remain cautious about the impact of the Canadian dollar," continued Farm. "We have accelerated our innovation plans and will be bringing several new products to market in both the foodservice and retail segments in 2008."

One of those new products is McCain's recently launched "Slow Cooker Solutions [see page 14]," said to be the first frozen meal designed especially for slow cookers. "Because no preparation time is required," Farn pointed out, it is ultra-convenient. You just put it into the slow cooker in the morning, add water, and when you come home from work, dinner is ready. "We are offering three different varieties and all carry the Health Check from the Heart and Stroke Foundation."

Thin Crust Pizza, International-style

McCain has also launched two new Multigrain Pizzas as part of its International Thin Crust Pizzas range. With four grams of fibre per serving, the product offers consumers a healthier version of pizza. Indeed, added fibre is a good example of the kinds of health benefits that consumers want.

Following up on this trend, McCain Foods is using healthier oils and less fat wherever possible. The company has recently launched Solo Gourmet, a personalsize thin crust microwaveable pizza that offers a variety of savory flavors and is ready in just three minutes.

"We are very optimistic about the year ahead," said Farn. "McCain Foods has some very exciting retail launches, and we look forward to continued growth from both foodservice and retail business units.

Frozen pizza competitor Dr. Oetker last September introduced four new offerings--Three Meat (pepperoni, ham and sausage), Four Cheese, Deluxe and Spicy. "They have been favorably received," said company spokesperson Laura Jones.

"Our thin crust with rising edge pizza is unique in the Canadian market," she added. "Such products are driving growth in the pizza segment as compared to the traditional pizza crusts."

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Jones further reported that Dr. Oetker generated excellent returns as far as sales were concerned last year. "We hope 2008 turns out as well as 2007," she concluded.

In response to strong dissatisfaction among many consumers opposed to preservative usage in packaged foods, Vikram Bawa noted that Stouffer's Lean Cuisine has reformulated its lines to make recipes preservative-free to address this consumer issue. Thus new recipes are being offered in its Stouffer's Skillets Sensations and Stouffer's trays lines. There has been a revamping of existing recipes to meet the Heart and Stroke Foundation's Health Check criteria, which in turn is based on Canada's Food Guide recommendations.

"The meals deliver a better nutrition profile while continuing to deliver the great tasting, home-style, comfort foods that consumers love," Bawa said. "The subtle integration of healthier choices into delicious favorite foods is the basis of the Stealth Health concept."

In February, Stouffer's launched a line of Panini products across Canada under the Stouffer's Lean Cuisine and Stouffer's Bistro brands. Wight varieties were rolled out, four for each brand

"Bringing hot, grilled sandwiches to the frozen food aisle was a huge success in the United States, where they were launched in 2006," Bawa said. "This is a unique product using proprietary grilling technology. The trade reception has been excellent. All the major retailers are carrying our new product."

Enter Olivieri Creations

John Yen, the marketing manager for Michelina's products (the label is a subsidiary of Schneiders Maple Leaf Foods), one of Stouffer's major competitors in the bowl/entree market, reports that the company is trying to add some more personality to the Michelina brand with its new Olivieri Creations. The pasta product comes in a resealable bag that can serve up to four meals, he noted.

Michelina launched Olivieri Creations in January, and the initial response was good. "All the major retailers have accepted it," Yen reported. "We are looking forward to following up with more new products in this line next year."

The marketing manager said that 2007 was a challenging year, and that Michelina expects 2008 won't be much different. "The competition is constantly increasing," he remarked.

Pinnacle Foods' Andrew Salisbury reported that sales in the frozen single-serve dinner entree category fell by one percent across Canada last year, even though the company's entries in the segment Swanson's and Hungry-Man--registered sales increases of eight percent.

Salisbury said that Pinnacle Foods has been going the breakfast route over the past two years since acquiring the rights to the Aunt Jemima brand. "Two years ago, we launched frozen Aunt Jemima waffles and breakfast sandwiches in Western Canada," he stated. "Last year, we rolled out the products across the country."

On March 1, Pinnacle Foods introduced a croissant sandwich under the Aunt Jemima name to Canadian consumers. The product which comes two to a box--is composed of egg, cheese and peppers, but no meat. "A lot of consumers don't want sausage for breakfast," pointed out Salisbury.

The company is also preparing to launch two kinds of frozen Aunt Jemima pancakes--a buttermilk and a whole grain variety--for health conscious customers across Canada.

"This is a new segment," Salisbury said. "We are planning to grow the Aunt Jemima brand."

Low in fat and high in Omega-3 oils, fishery products fit in well with the trend toward wellness and healthy eating. And there is one new product in particular that is making a splash.

Phaedra Saltis, marketing manager for BlueWater Seafoods, reported that tilapia is "the hot fish product" among Canadian consumers. As such, the company recently introduced a new breaded tilapia flavored with roasted garlic and butter. The product is packaged in a 179-gram box containing two fillets. Also new is a crunchy breaded tilapia is a 680 gram resealable bag.

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Frozen shrimp dinners also continue to be popular, a trend that Saltis first highlighted in last April's "Focus on Canada" report in QFFI. "The seafood category continues to grow in sales faster than any other frozen food segment," she noted. "We did very well last year."

Last but not least, New Annan, Prince Edward Island-headquartered Cavendish Farms recently unveiled zero trans fat Crispy Microwave Breakfast Potatoes in 150-gram boxes. They join Golden Crinkle Cut and Golden Straight Fries, which also come in special crisping trays.

Kraft Reinvents the Frozen Bagel: Adds Cream Cheese to Start

Frozen bagels? So what else is new? Ah, but these bagels are stuffed with Philadelphia cream cheese, and are part of Kraft Foods' strategy to bolster its position in the cheese business.

Bagel-fuls will be introduced through an integrated marketing campaign including national TV advertising, a New York City launch event, media relations, a 20-plus-city local market sampling tour and in-store sales promotions--all targeted at busy consumers, particularly women.