Why Walmart is adding frozen food even beyond COVID-19 - Business Insider

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Retailers like Walmart saw explosive growth in health-focused frozen foods at the start of the pandemic. Now execs are preparing for the new normal in the freezer aisle.

Retailers and food companies are adapting to more interest in frozen burgers, pizzas and single-serve meals, especially those that are healthier than traditional options.Sales of frozen food, especially health-focused options, are growing above pre-pandemic levels as consumers alter their eating habits for longer.

Prior to the pandemic, Walmart was already expanding the cooler space it devoted at stores to frozen foods, including plant-based and low-sodium options, and new brands, Vice President and Division Merchandising Manager Laura Rush said in an interview. "You could walk into frozen and it still felt like 1995," she said of frozen selections at Walmart when the company began the revamp.

"I don't think this goes away," Rush said of heightened demand for healthier and diet-specific frozen options among consumers. Part of the growth of frozen has come at the expense of eating out: Consumers have continued to buy foods in the frozen section during the pandemic that they cannot easily make at home, said Bob Nolan, senior vice president, demand sciences at Conagra Brands, which manufactures frozen food items including Marie Callender's pot pies and PF Chang's meals.

Conagra's healthier meal options are still growing at higher rates, with sales at plant-based brand Gardein up 38% during the same 13-week period and Healthy Choice meals up 20%, according to data compiled by IRI and referenced by Conagra.

 

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