German Frozen Food Institute, the dti, stylishly celebrates golden anniversary; when it all began Konrad Adenauer was serving as the FRG's first Chancellor, Elvis Presley was the King of Rock 'n Roll, and Sputnik had yet to be launched. From a small group of 30 founding firms in 1956, membership of the Deutsche Tiefkuhlinstitut has grown to 160 today.

The annual Tiefktihltagung, organized by the Cologne-headquartered Deutsche Tiefktihlinstitut (dti, German Frozen Food Institute), took place on May 30-31 at KSnigswinter on the Rhine.

Traditionally, about 300 participants involved in the frozen food business in one way or another-suppliers, producers, logistics experts and technical support personnel, wholesalers and retailers-gather on the evening of the first day for dinner and a relaxed, informal exchange of news, views, experience and perhaps a little gossip, too.

This year, however, on the occasion of the dti's 50th anniversary, the event was organized in greater style than usual--highlighted with an exquisite banquet at the historic Steigenberger Grand Hotel in KSnigswinter on top of the Petersberg. Situated just south of Bonn, the former West German capital, this is where the government of the Federal Republic used to accommodate VIP guests such as the Gorbachevs, the Clintons, Nelson Mandela, the Queen of England and the Emperor of Japan.

Dinner was served in the hotel's round dining hall, and a semi-circle of high windows offered a grandiose view of the Rhine valley. A band of musicians took celebrants back in time to when it all began, playing 1950s songs as a very un-frozen audience heated up during a lively after-dinner dance.

One of the founding members of the dti, Hans-Egon Rudnik, attended with his wife Irene. At 83, over a pipe and a cup of coffee in the lobby, he consented that the first meeting in 1956 had been a far less formal affair.

Back in the early fifties, the winter diet of most German people was relatively basic: a little meat, potatoes, cabbages in all colors and varieties, and rutabaga (a vegetable which many Germans detest to this day as it reminds them of those first bleak winters after World War II). Canned vegetables offered the only alternative in those days.

The post-war industrial production of frozen foods in Germany began in earnest during the mid-fifties--mostly fish and vegetables, along with some poultry and meat as well. The 1955 running of Anuga (the biennial international food fair held in Cologne) was a milestone for frozen foods in Germany.

For the first time, six companies exhibited their ranges, trying to convince visitors of their products' fresh-frozen quality and long shelf life. Retailers, however, met their offerings with skepticism, in no small part due to the fact that there were few freezers operational at the time--either at retail shops or in the homes.

So what was to be done? Merchants and producers put their heads together and in the annals of frozen food, 1956 went down as the year of the Cologne-Bonn freezer test. Four hundred chest freezers were placed in the area's grocery stores. The goal was to introduce consumers to the new product category and to test their reaction to see where improvements could be made. And what a success it turned out to be!

On June 6, 1956, the Arbeitsgemeinschaft Deutsche Tiefkuhlkette (a trade association representing the German supply chain for deep frozen foods), later to become known as the Deutsche Tiefkuhlinstitut, was founded. The objective was to develop quality standards.

All partners in the freezing business got involved: fisheries, companies processing fruits, vegetables and poultry, distributors, operators of refrigerated warehouses, wholesalers, producers of freezing equipment and advertising agencies. From its original 30 founding companies, the dti has developed into a 160-member organization which provides information about everything frozen--as long as it is edible. The late 1950's saw the emergence of ready-made meals, in the catering business as well as in retail shops. However, the real breakthrough came with the 1972 Olympics in Munich. Approximately 36,000 members of staff needed to be fed, and with the help of ready-made frozen meals the Olympic Committee was able to handle this challenge successfully.

The conference associated with the Tiefkuhltagung was held at the Maritim Hotel in Konigswinter. Manfred Sassen and Susanne Konig from the dti gave the annual report. Jochen Pinsker from the GfK (Gesellschaft for Konsumforschung, consumer research) in Nuremberg discussed the growth potential for frozen products in gastronomy; Roland Tchenio from Tourpagel Agrigel, the head of France's leading home-delivery service for frozen products, gave an insight into French consumption patterns; and Professor Karlheinz Schmidt, managing director of the Bundesverband Guterkraftverkehr Logistik und Entsorgung (BGL, Federal Alliance Freight Traffic Logistics and Disposal) in Frankfurt, talked about increased taxes on gas and toll fees for the autobahn imposed by the German government, which have raised costs for shippers, distributors and consumers.

As Professor Peter Stehle from the Deutsche Gesellschaft for Ernahrung (German Society for Food and Nutrition), an organization which has provided scientific advice to the dti since 1964) pointed out to attendees at dinner, the nutritional value of frozen products is excellent, often superior to that of so-called "fresh" products that may have been in the distribution chain for many days, with vitamin values constantly degrading.

The German public is well-informed, and the reputation of frozen food could not be better: 77% thought it was great, and 63% usually buy a frozen product when shopping at the supermarket. Sixteen percent of Germans believe frozen foods are definitely healthier, and 59% consider them at least as healthy as non-frozen food.

Over the past 30 years, the consumption of frozen food (excluding ice cream) tripled from just over 12 kg per capita (or 750,000 tons) in 1975, to more than 37 kg (more than 3 million tons) in 2005. During the same time, turnover increased from 0.75 billion euros in 1975 to 9.69 billion euros in 2005.

Private households accounted for 53% of frozen food consumption. Fish and baked goods are the most popular items, followed by fruit and potato products. But lately the all-time classics like creamed spinach have been gaining market share (up 5.2%). The single most popular item in 2005 is still pizza, accounting for 13.7% of sales. And with 17.4%, the ready-meals segment is the front-runner in supermarket freezers.

The catering sector holds a share exceeding 46%. Last year sales increased slightly by 0.7%, with a total turnover of almost 4 billion euros. The managers of workplace canteens, school lunch programs, hospitals and nursing homes were particularly interested in baked goods, which for the first time occupied the number one spot on the frozen food ranking list. With an increase of 6.2%, they accounted for almost a quarter of the sales (24.6%), sending meat and poultry down to number two (22.9%), followed by potato specialties (13.4%) and vegetables (11.7%), respectively. And snack food is another item which is steadily gaining ground (9.2%).

The past 10 years have seen an unequalled increase in business. The total turnover increased by 56% from 1.96 metric tons (5.83 billion euros) in 1995 to 3.06 metric tons (9.69 billion euros) in 2005. This positive trend is expected to continue, as consumers in Germany still eat less frozen products than do folks in the United States, where per capita consumption exceeds 50 kilograms.

Concepts for Gastronomy

With the current trend to cook less at home and eat more on the go, there are great opportunities in the gastronomic sector for providers of easy-to-handle ingredients with extended shelf life. Jochen Pinsker from the GfK addressed the potential for frozen foods in the away-from-home gastronomy business.

With high unemployment figures and less money in people's pockets, one would expect the catering business to be among the first sectors to be significantly affected by such a trend. But so far the only noticeable change in Germany has been a slight decrease (-0.9%) in the traditional full service sector, while an increase (1.8%) has been recorded in the fast food segment, and figures for workplace canteens remain unchanged.

So people are still eating out, even if they are opting for the faster (and cheaper) alternative. In 2005, Germans visited restaurants and canteens on 6.8 billion occasions, which means the average German ate out 91 times: 23 times at a full service restaurant, 38 times in fast food outlets, and 30 times in a workplace canteen.

Managers of restaurants or canteens wishing to do more business can either develop strategies to have customers return to their establishments more frequently, or find ways to attract more new clients and target new customer groups.

Among the promotional activities to bring in more customers, the "buddies through the door" concept has been quite successful. The idea is to get clients to bring their friends, which is being encouraged by two-for-one offers.

Once a customer has entered the premises, proprietors should have add-on products ready to serve, such as a starter or a dessert in order to increase the turnover per visitor.

Apart from offering good products at a reasonable price, frozen foods have even more advantages for the restaurateur. For example, there is no complicated additional equipment required. On the contrary, vegetables arrive cut, trimmed and blanched, add-on products are readily available, and storage and shelf life is not a problem.

Meanwhile, the international mega trends which Pinsker identified in his presentation bode well for the frozen food industry, which offers consumers plenty of convenience: food to take out, delivery services, eat around the clock options, drive-in counters.

The second trend is freshness and health: to give customers the feeling of ultimate freshness, have them watch as their food is being prepared. They enjoy doing so (never mind that the ingredients might have been supplied pre-cut). And offering salads will bring more women over the threshold of fast food restaurants--where they then will often end up ordering a burger. What counts is the idea of having a choice.

Last but not least: snacks and beverages. And coffee, iced or otherwise, is increasingly replacing dessert.

German Frozen Food Consumption Continued Growth in 2005

Consumption of frozen food in Germany was up once again in 2005, both in sales and in turnover.

The Deutsche Tiefkuhlinstitut (dti) in Cologne reported that sales advanced one percent to 3.06 million tons. The average German consumed 37.1 kilograms, 300 grams more than in the previous year. Turnover reached 9.69 billion euros. Frozen fish and baked goods were in particular demand, though fruit and potato products were also very popular.

Private households accounted for 53.5% of the total volume. Through supermarkets, discounters and home delivery services, consumers purchased 1.64 million tons of frozen food, valued at 5.76 billion euros. That is an increase of 1.2%. There was above average demand for the classics merchandised from freezer cases. Creamed spinach accounted for 5.2% of the volume, and fish sticks for a whopping 13.2%.

With foodservice there was a 0.7% increase in volume, to 1.42 million tons. Turnover reached 3.93 billion euros. Particularly popular with the professional chefs were frozen pastry products, with an increase in volume of 6.2%. Frozen vegetables and snacks were also much in demand from the foodservice sector.

By LISA SHOEMAKER

QFFI Correspondent

Per Capita Frozen Food
Consumption in Germany

(in kilograms)

1975   12.2
1980   15.0
1985   18.4
1990   20.4
1995   24.0
2000   32.8
2005   37.1

Note: Table made from line graph.

Quelle: Deustches Tiefkuhlinstitut e.V.