Noting a shift in consumer behavior, food giants like Kraft and ConAgra are targeting new launches at lunches.
Brown bagging is at an all-time high since 2001, per the NPD Group, Port Washington, New York. Adults ages 18-and-older consumed some 8.5 billion brown-bag lunches last year (38 bagged lunches per capita compared to 35 in 2006).
Nearly 12% of lunchtime opportunities were brought from home as of the year ended February 2008. In contrast, the February 2007 figure was 11.3%. Of those polled, cost-saving was the primary motivation.
"Brown bagging has been on the rise every year we look at it," said Harry Balzer, vp at NPD Group, Chicago. "The options available to us for carried products do make life easier than people going out to eat at lunchtime."
The return to brown bagging has prompted food companies to reexamine their portfolio of brands. Products that were formerly "lost segments" of a company's business now have a chance to shine, said Paul Leinwand, vp at Booz & Co., Chicago.
Take Kraft, for instance. The maker of Singles cheese slices introduced new packaging for its Deli Fresh Natural Cheese slices, new Oscar Mayer thick-carved and family-sized meat varieties and a mayonnaise with olive oil this summer.
To promote the products, Oscar Mayer is wrapping up its "Deli Fresh" mobile tour this month. Two trucks hit more than 150 cities handing out more than 100,000 coupon books worth $6 in value for select products.
"Clearly, more people are looking to prepare meals that are easier on their budgets." said Greg Hughes, marketing director at Kraft's sandwich cheese division. "We're seeing an increased interest in brown-bag lunches and sandwiches as affordable lunch options." Soup maker Campbell has teamed with Kraft for a joint FSI promotion dropping this November that pairs the two companies' staple products.
The partnership marks the first time Campbell and Kraft have joined forces in the last five years. Since the introduction of Soup At Hand, Campbell's heat-and-go line, and microwaveable bowls, the company has seen sales exceed $250 million. "Much of the consumption of microwaveable bowls and cups is out-of-home—whether brown-bagged or hidden in a desk drawer," said Campbell rep John Faulkner.
Meanwhile, frozen meals giant ConAgra announced that country music star Lee Ann Womack will serve as spokesperson for its new Banquet Select Recipes frozen lunches.
Introduced last month, Banquet Select Recipes come in seven "restaurant quality" varieties, including Herb Grilled Chicken Breast and Slow Cooked Beef. The entrees all sell for $1.50 and are meant to provide affordable and healthy options. "When you compare it to other dining alternatives, whether it's in or outside of the home, it's difficult to find a better value," said Tom McGough, vp-ConAgra's Banquet and Kid Cuisine brands.
NPD said frozen entrees and yogurt trail only sandwiches as one of the most popular brown-bag lunch options.
The brown bagging phenomenon has prompted even pasta maker Ronzoni to reach for the lunch crowd. Whereas pasta is traditionally viewed as a dinnertime staple, the Ronzoni Bistro line is a microwaveable pasta that consumers can take with them wherever they go. (Note: Refrigeration is not required.)
TV ads for portable pasta debut this week. The first spot shows a woman popping a chicken and broccoli penne package into the microwave. When her colleague learns that the pasta is ready in 90 seconds, he begins to wonder if his "other dream" (i.e. president of the United States) will come true. Maybe not, but the new Ronzoni Bistro pastas are "a dream come true," the voiceover says. Dailey & Associates, West Hollywood, Calif., handles.
"We feel that we're right in line with the trend by bringing convenience to the pasta lover," said Kevin Blacker, brand manager at New World Pasta, Harrisburg, Pa., Ronzoni's parent company. "We've [introduced] the idea of pasta as being consumed in an out-of-home setting."
The time is right as pasta sales tend to increase in a down economy, said Blacker. "You can buy a one- or two-pound box of pasta and have a meal for four people at one of the cheapest prices you can find anywhere."