Canada, too, has bowl-ing boom but pizza, burgers also on a roll; just like their Yankee...

Acquisitions proved to be the biggest story in Canada's frozen food industry in 2001.

Last January, ConAgra, North America's leading frozen food company, acquired Montreal-based frozen food manufacturer Artel Inc. In October, General Mills Canada swallowed Pillsbury.

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"Our Canadian business remains strong," said Pinnacle vice president and general manager Andrew Salisbury. "We do $50 million (Canadian) a year in turnover with a five-person staff."

Salisbury described the frozen food industry as "a great business to be in." Although growth is slowing, he reported, frozen food remains the third largest category of products on grocery store shelves -- and the hottest sellers in the category, now are bowls.

"Bowls are where it's at at the moment in Canada," Salisbury observed. "That should be no surprise considering that bowls now make up 10% of the USA market. We're just starting to catch up here in Canada."

Artel -- now known as ConAgra Frozen Foods -- was first off the mark last autumn in the bowl sweepstakes with its Healthy Choice Bowls selection of Chicken Teriyaki, Chicken Alfredo, Sweet and Sour Chicken with Rice, Roasted Red Pepper Chicken and Potatoes, Shrimp and Vegetables, and Roasted Potatoes and Ham.

"Our bowls are low in fat and sodium for people with health or cholesterol concerns," commented ConAgra spokesperson Lise Roy. "They have been received very well. We are developing two new flavors."

Swanson's entries in the category are its new Hardy Bowls -- Chicken Stir Fry, Chicken Alfredo, Chicken Teriyaki, Sweet and Sour Chicken, and Four Cheese Lasagna -- which Salisbury described as a "credible alternative" to Healthy Choice. "In terms of taste, our bowls are ahead of the competition," he insisted. "Consumers want good tasting food. They also want larger quantities. We sell bowls in 300g packages rather than the usual 200g to 260g sizes."

Consumers also seem to want more hand-held products, added Salisbury, including products such as J.M. Schneiders' new hot-selling Hot Stuff which was introduced last June. "It was the biggest launch the company has had in a long time," said a J.M. Schneiders spokesperson. "Hot Stuff is bigger than Pizza Pops and Pizza Pockets."

Not to be outdone, General Mills Canada launched a new line of five-inch Pillsbury Mini Pizzas last October. The bite-sized snacks -- which come in pepperoni, cheese and deluxe flavors -- differ from other pizza snacks in that the pizza part is entirely inside the dough. Jennifer Newton, who handles the marketing for Pillsbury, noted that General Mills/Pillsbury views Schneider as "an indirect competitor" in that the bulk of its product is still meat.

ConAgra Foods, with its Del Maestro brand, and Swanson also compete in the frozen pizza market. Swanson produces three seven-inch pizzas and three 11-inch pizzas. "We are looking at introducing more toppings," Salisbury said.

Meat packer Mitchell's Gourmet Foods, based in Saskatoon in western Canada, meanwhile, has introduced a new frozen pork burger -- the one-third pounder Mitchell's Boss Hawg Burgers. President Stu Irvine expressed surprise at how well the new burgers sold over the Christmas season -- a time of year, he noted, when people aren't typically frying their burgers on the barbecue.

"We thought that with the public's concerns about E-coli in beef burgers that there was an opportunity for a pork burger," Irvine said. "We have developed a thick, juicy burger. There is nothing else like it in the market."

Mitchell has placed Boss Hawg Burgers in Safeway's Gourmet Shop sections across Canada. The company also has a deal to supply Smitties Pancake Restaurants with the burgers for a three month trial period. "We are seeing if other fast food chains are interested," Irvine said.

For consumers who prefer fish, National Sea Products Ltd. introduced a new entry -- Breaded Sole Fillet with Cheese and Broccoli Stuffing -- last autumn in its High Liner club pack line. "Our club pack is doing very well," said Barry Philipson, retail division marketing manager. "It is good growth. Our Salmon Fillet in Dill Sauce won Canada's Grand Prix Award last year and is a top selling item."

Last year as well, National Sea introduced a new line of 400g vacuum-packed products under the High Liner label. Thus far, the consumer has a choice between Sole, Alaska Pollock, Seasoned Mussels in Garlic Butter Sauce, and Scallops. "The products have a long shelf life," said Philipson. "They are all individually quick frozen at sea, so there is no frost build-up." Citing an AC Nielsen report, he noted that the frozen fish market in Canada grew by 8% overall in 2001.

In Chinese dishes, Wong Wing last year introduced several new entrees including Chicken and Broccoli, Beef and Broccoli, and Beef with Ginger. "We didn't make them too spicy," said General Manager Colin Prince. "Customers can add the spices of their choice."

Wong Wing's Oriental Party packs remain outstanding sellers. "Since September 11, business has grown," Prince noted. "People are choosing to stay home rather than go away for the winter. Consumers are also looking for healthier foods. Vegetable-based egg rolls and spring rolls are our biggest sellers."

Lucerne Foods in Vancouver, which now packs vegetables exclusively for Canada Safeway, introduced five organically grown products -- peas, beans, corn, broccoli and blueberries -- last year, according to Vic Giesbrecht, general manager.

"We are still developing our marketing program for the organic products," he said. "Hopefully, sales will improve over time." Giesbrecht also noted that the trend in frozen vegetables is more to specialty blends and away from the traditional one-or two-vegetable packages.

In the frozen desserts sector, Kitchens of Sara Lee in southern Ontario had a quiet year. A spokesperson reported that the category's growth is slow but it is still growing.

Florenceville, New Brunswick-headquartered McCain Foods launched a new frozen dessert last fall under the Gourmet Cafe sub-brand which is gradually being rolled out across the country. The coffee cake product is targeted to appeal to young and middle-aged women with above average income.

McCain is also strongly promoting its Pizza International range of four thin-crust products: Sicilian (topped with Italian sausage, red peppers, red onions and parmesan cheese), Mexican (featuring refried beans, beef, hot peppers, black olives and red onions), California Chicken (topped with Bordelaise sauce, garlic chicken, white onions, roasted garlic and parsley flakes) and Greek (feta cheese, red peppers, black olives, red onions and oregano flakes).

Weighing in at between 465 and 506 grams, the Pizza International assortment is primarily aimed at singles and two-person households -- customers looking for convenience and value but unwilling to sacrifice flavor and quality.

McCain sees "continued segmentation of existing product lines" and "greater development of ethnic flavor varieties" as trends in the frozen food industry. Catering to these tendencies should expand volume by bringing new users to the frozen case -- and repeat purchases with them.

RELATED ARTICLE: Pinnacle foods rolls for bowls, buying king's Hawaiian unit.

Pinnacle Foods of Cherry Hill, New Jersey, USA, has bought out the frozen foods unit of Torrance, California-based King's Hawaiian Enterprises. The amount paid is a mystery, but the motivation isn't.

King's Hawaiian was one of the pioneers of frozen bowl meals, which have mushroomed into a $250 million a year business. Pinnacle had already picked up the Swatson frozen meals line earlier this year in a liquidation sale by Vlasic Foods International.

Family-controlled King's Hawaiian revealed that proceeds of the frozen food sale would enable the company to streamline its operations and focus on its bread products, providing the funds to build a large new bakery.

RELATED ARTICLE: Atlas takes over transport from failing TCT Logistics.

Atlas Cold Storage, North York, Ontario, Canada, has taken over the refrigerated transport operations of TCT Logistics, Inc., Brampton, Ontario, which had gone into receivership. The name of the company will be changed to Atlas Cold Logistics.

For the record, the transaction was between the receiver, KMPG, Inc., and Atlas Cold Storage subsidiary Atlas Supply Services Ltd. But the bottom line is that Atlas will get a fleet of 290 tractors driven by 190 owner-operators and 100 company employees, plus some 550 refrigerated trailers.

The takeover makes Atlas the largest integrated PRW-logistics outfit in Canada, with the new trucking unit offering full load and LTL services using the company's refrigerated warehouse network. At the same time, Atlas announced that Ernie Kruschel and Doug McNutt had joined the company's logistics management team.