Nestle intends to reposition frozen food brands in the US, as the category has negatively impacted its overall 2014 financial results. According to a company release, Nestle has recorded sales of CHF27,3bn and an organic growth of 5%, while trading operating profit was up 18,8%.
Because of the changing consumer preferences, Nestle said it is repositioning its frozen food brands Lean Cuisine, Hot Pockets and Stouffers.
“Our performance in North America was affected by the frozen category. Projects are underway to reposition Lean Cuisine, Hot Pockets and Stouffers. They address all elements of the marketing mix, reflecting trends such as organic and ethnic, enhancing the brands’ relevance to consumers. We are taking the same approach in frozen pizza where our California Pizza Kitchen did well. In ice cream the super-premium segment performed well with Gelato, and snacks returned to growth, although the premium segment was subdued”, according to CEO Paul Bulcke.
In Europe, results for Buitoni Fiesta frozen pizza were positive, the product range being one of the bestselling in the company’s portfolio, along with other non-frozen brands.
Despite market volatility and increased competition, overall results in Europe included good performances in France, Switzerland, Austria and the Netherlands, and a recovery in Spain and Portugal supported the growth in Western Europe, while Great Britain, Germany, Italy and Greece were more challenged.