The Swiss-based food and drink behemoth is setting its sights on a raft of ready meal NPD, with the US a current focus following two major launches in the market.
“We launched Minds and Tapatío as part of Nestlé’s strategy to capitalise on increased consumer demand for global cuisine options,” a Nestlé spokesperson told FoodNavigator.
“Asian and Mexican cuisine are among the most popular in the US and we’ve worked closely with Chef Ming and the Tapatío family to create authentic new meal options for consumers.”
Global cuisine accounts for 11 billion USD in the market overall, with consumers wanting new flavours and regionalities to enter grocery aisles, the spokesperson adds.
Nestlé’s ready meal NPD strategy
“This is especially true for Gen Z, as the most diverse generation, who are looking for unique experiences and flavours with global foods,” they continue. “In fact, 68% of Gen Z-ers say they wish they had more ways to show the world how proud they are of their culture and heritage.”
Frozen food is a supermarket category ripe for exploitation, highlighted by Nestlé as an area with “strong margins and return on invested capital”.
Its North America frozen meals and pizza business dominates with near a third of market share in the territory.
To further capitalise on its healthy market share, the frozen food innovation and launches have accelerated, with “ample room for new segments and products”, the spokesperson says, adding, “we’re committed to its continued expansion”.
Asian cuisine Mings was developed by celebrity chef Ming Tsai. Tapatío was created in partnership with a family-owned hot sauce brand of the same name.
Gen Z buying more ready meals
Each was launched to tap into the growing demand for diverse flavours and cuisines, specifically from the 42% of younger shoppers seeking a “creative marriage” of culinary traditions from the ready meals they buy.
“Introducing both Mings and Tapatío into our range of frozen meals is just one more way we’re meeting consumers with the accessibility they want in the bold flavors they crave,” says Nestlé’s USA president of meals, Tom Moe.
“The demand for international cuisine driven by Gen Z is a market opportunity we expect to expand even further in the coming years and one we’re ready to meet with continued innovation across our portfolio.”
This month Nestlé made its second full-year financial downgrade prediction considering weaker than expected consumer demand, leading to lower-than-expected sales.
Following this, new CEO Laurent Freixe tightened his leadership team and the executive reporting structure, seeing the business’s regional heads report directly into him.
