Marketing Convenience Food Cost Update Larry G. Traub and Dianne D. Odland (202) 447-7330
Changing lifestyles have helped More than 80 percent of the baked 15 cents more per serving. Of the baked to popularize commercially prepared goods and desserts made from a com goods and dessert convenience foods ''convenience'' foods. plete or incomplete mix cost less than, or that were more expensive than their A study was published recently that the same as, their counterpart prepared home counterpart, nearly three-fourths provides a comparative analysis of the from a recipe. Of the beef, pork, poul cost under 10 cents more. Of the conve cost, yield, and eating quality of these try, fish, and shellfish convenience nience foods that were less expensive convenience foods with home-prepared foods that cost more than their home than their counterpart, almost half cost foods. 1 Food-cost data for the study prepared versions, two-thirds cost over fewer than 5 cents less per serving. ■ were based on prices collected from July 1974 through June 1975 in four cities: Milwaukee, Philadelphia, San Francisco Cost Per Serving of Ingredients for Home-prepared and Oakland, and New Orleans. These data Convenience Foods, July 1978 - June 1979 (4-clty average) have been updated using food price in Serving Home- Convenience forms dices in the Consumer Price Index for Product Size Prepared 1974-75 and 1978-79. Oz. Cents The updated food cost data show that Beef of the 166 convenience foods con Chili-macaroni ...... 9.2 40.8* 41.11,2 sidered, 59 percent cost more per serving Dinner ...... 11.3 75.8 102.7 3 than ingredients for their fresh or home Lasagna ...... 9.8 57.7* 112.6 2,3 Lasagna, skillet ...... 8.7 42.9* 36.61,2 prepared counterparts, 28 percent cost Patties, all beef ...... 2.7 31.1 56.2 3 less, and 13 percent cost about the Patties, soy-beef ...... 2.7 24.3 4 22.32,5 same. Of the 82 frozen, chilled, or Pie ...... 7.4 26.2* 46.43 ready-to-serve convenience foods with a Sloppy Joe sauce ...... 2.8 14.3* 20.8 2,6 fresh or home-prepared counterpart, Stew ...... 8.6 37.0* 42.36 only 13 (16 percent) were less expensive Stroganoff, skillet ...... 8.0 51.6* 63.6 1 -2 than their counterpart. Most of these Meat loaf dinner ...... 9.1 37.1 91.43 Pork were in the food categories of fruits and 7 vegetables. Ham, cured ...... 2.0 41.6 42.3 6 Sweet-sour pork...... 6.0 40.9* 67.8 2,3 75.2 1,2' Three-fifths of the 23 canned fruit and Sausage ...... 2.0 40.88 42.99 vegetable products cost less than their 50.89 counterparts made from fresh fruits and Chicken . vegetables. However, when fresh A la king ...... 5. 7 27.8* 47.42 3 asparagus, grapefruit, peaches, and Braised, whole ...... 2.0 23.6 32.36 Chow mein ...... 6.6 37.5* 38.46 66.9 3 strawberries were in season, they cost Fried, flour-coated ...... 2.010 27.411 less than their canned form. Almost all 30.112 of the frozen multiple-ingredient Fried, batter-dipped ...... 2.010 28.9 51.33 vegetable convenience foods were more Fried, dinner ...... 9.3 40.8 81.7 3 expensive than their home-prepared Meat ...... 1.5 18.2 46.36 counterpart. Most of the frozen single Pie ...... 7.8 36.8* 46.43 ingredient vegetable convenience foods Salad, spread ...... 2.5 23.0* 45.42.6 were either less expensive or cost the Turkey same as their home-prepared counter Dinner ...... 12.5 46.5 92.9 3 part. Tetrazzini ...... 8.1 50.2* 102.42,3 Finfish Pollack fish sticks ...... 2.6 35.3* 35.53 ' Larry G. Traub and Dianne D. Odlano. Haddock dinner ...... 11.2 88.0 129.9 3 Convenien.:e Foods and Home-Prepared Tuna casserole ...... 7.8 30.3* 87.6 2,3 29_41.2· Foods: Comparative Costs, Yield, and Quality, AER 429, August 1979. Continued on next page.
Winter 1980 17 Marketing
Cost Per Serving of Ingredients - Continued
Serving Home- Convenience forms Product Size Prepared Oz. Cents Shellfish 3 Crabcakes ...... 2.8 80.3* 53.8 Crab, deviled ...... 3.1 45.6* 62.63 Crabmeat ...... 1.8 94.313 98.36 Shrimp, cooked ...... 2.1 111.5 69.46 79.6 14 Shrimp, fried ...... 2.6 64.5* 110.414 73.115 69.916 52.22,17 Shrimp, newburg ...... 4.2 99.7* 146.02.3 Shrimp, creole ...... 7.5 83.7* 73.93 Pizzalrice/spaghett i Pizza ...... 8.3 37.8" 73.218 47.4 1 80.63 161.92. 19 Rice, cooked ...... 3.4 2.8 4.220 4.821 Fried rice ...... 2.8 17.1 • 31.82.3 Spanish rice ...... 4.5 11.5 15.36 13.41 Spaghetti/tom. sauce ...... 8.9 26.2 19.26 20.31
Vegetables Asparagus ...... 2.1 34.5 28.93 21.96 Beets ...... 3.2 18.9 10.122 8.423 Broccoli spears ...... 3.3 20.0 22.83 31.42,24 Broccoli au gratin ...... 5.1 35.5* 51.62.3 Broccoli/hollandaise. 4.0 24.0* 36.12.3 Brussels sprouts ...... 2.7 20.5 16.83 Butter beans ...... 3.325 4.6 12.66 Carrots ...... 2.8 10.1 11.026 8,027 Corn, cut ...... 2.9 16.6 15.83 11.76 Corn-on-the-cob ...... 6.1 19.9 19.03 Green beans, cut ...... 2.3 12.1 12.33 11.32.28 9.7 6 Green bean casserole ...... 4.3 27.5 35.72,3 Green peas ...... 2.8 41.1 15.73 12.56 Hawaiian-style ...... 3.8 18.6 29.22.3 TI11 Lima beans ...... 2.9 43.9 16.03 16.26 I ! Pork and beans .... 6.9 8.0* 17.56 Potatoes: au gratin ...... 4.5 10.7 35.82.3 13.529 ! i boiled ...... 4.0 4.1 14.36 trench fried...... 2.0 11.5 9.83 hash-browned ...... 3.9 5.8 13.529 mashed ...... 3.5 4.5 5.529 patties ...... 3.1 4.9 15.93 puffs ...... 2.5 9.2 9.83 scalloped ...... 4.3 6.1 12.129 stuffed ...... 5.6 14.1 31.12-3 Spinach ...... 3.4 37.2 16.03 14.76 Fruits Cherries, red sour .. 3.925 32.5 26.46 Coconut, shredded ... .3 1.9 4.030 Cranb. sauce, strained .... 2.4 6.3 7.26 Cranb. sauce, whole 2.4 4.8 7.16 Grapefruit, sections 3.425 18.9 17.26 Lemon juice 1.1 12.3 7.631 3_532 Orange juice. 4.4 25.1 9.432 8.96 6.033 Orange drink 4.4 6.02,33 5.22.34 Peaches . 3.725 22.3 21.335 29.42 36 36.537 0 Pineapple chunks 3.225 17.8 15.36 Raspberries. red .. 2.625 35.5 44.06 48.03 Strawberries. sweetened 3_525 30.4 54.36 46.238 44. 72.39 46.040 28.5241
18 National Food Review Marketing
Cost Per Serving of Ingredients - Continued
Serving Home- Convenience forms Product Size Prepared Oz. Cents Dairy/eggs Amer.process cheese 2.0 23.242.43 23.644 23.52.45 Amer.cheese food ...... 2.0 16.742.43 53.32 46 Cheese fondue ...... 2.7 38.3 47.02.1 8 Butter ...... 3 3.28.42 3.347 Margarine ...... 3 1.442.4 7 1.72.48 1. 72.49 Milk, nonfat ...... 8.5 11.342 7.52.50 Whipped cream ...... 1.0 8.1 10.646 Eggs, scrambled ...... 4.1 14.8 28.62.5 1 Baked goods/desserts Biscuits ...... 1.4 2.9 3.052 5.218 Bread stuffing ...... 2.1 9.1 7.02.53 Brownies ...... 7 5.2 3.753 3.752 8.23 8.354 Cake: angel food ...... 1.7 6.3 7.652 15.554 bundt, fudge ...... 4.1 15.0 14.62.53 devil's food ...... 1.7 8.1 5.053 17.23 15.054 pound ...... 1.1 3.9 3.953 14.23 9.554 yellow ...... 1.2 4.4 3.953 11.054 Cookies, sugar ...... ,, .5 1.8 3.555 3.854 Frosting: chocolate ...... 1.1 6.1 6.353 white, fluffy ...... 6 1.6 3.352 Muffins, corn ...... 1.5 3.9 3.953 Pancakes ...... 5.3 11.7 13.753 6.852 45.03 Pie: apple ...... 4.7 16.4 26.93 31.554 cherry ...... 4.5 22.4 19.552 28.93 31.454 coconut cream ...... 5.0 14.8 23.253 27.63 35.054 Pudding, chocolate ...... 4.6 13.2 12.952.56 12.150.52 23.92 36 Sherbet, orange ...... 3.2 6.2 13.454 Waffles ...... 3.3 7.0 7.853 3.652 24.23 Yeast rolls 1.3 2.4 3.252 6.53 8.157 7.158 Soup Split pea with ham ...... 8.5 13.459 33.9260 50.52.3 19_42.61 Baby foods 6 Beef liver ..' ...... ' ...... 3.3 29.2 40.7 Peaches ...... 2.8 28.062 12.76 Peas ...... 3.7 29.763 17.66 Coffee ...... 6.064 5.265 3.266 3.22.67 Tea ...... 6.064 1.068 2.169 1.621 1.52.70 15.O27�
• Most costly ingredient was held tn the same propor 33. Frozen concentrate:. 34. Crystals. 35. Canned tion to the sum of all ingredients as in the conve halves. heavy syrup. 36. Canned. rnd1v1dual serving nience form that had the least quantity of the most conta1rn':r. 37. Fro;en slices. 38. Frozen sirens 1n car costly ingredient. ton. 39. Frolcin slices in thaw ancl st:rvo pouch 40. Frozen whole. 1n tub. 41. Frozen whole. bulk l)aq. 42. lngred1cn1 foocl (processed foocl item not com 1. Mix. 2. "New generation·· convenience food (in monly prcparecJ m home). 43. Loaf. 44. Sl1cecl. troduced after 1960). 3. Frozen. 4. Soy protein added 45. Singles. 46 Aerosol can. 47. Ouarterml. 48. Sof1. to ground beef at home. 5. Soy protein added to tub. 49 L1qu1cL squeeze bottle. 50. Ory instant ground beef al store. 6. Canned. 7. Fully cooked. 51. Frozen cholP.sterol-free substl!ute. 52 Complet� 8. Bulk. 9. Link. 10. Based on lean meat content. mix (requires only milk or water. sometimes flavoring) 11. Whole chicken. 12. Cut up chicken. 13. Fresh. 53 lnr.omplelr: mix (requires eggs. twtrnr or cooked. chilled. 14. Prepared from frozen. raw. margarine. or other 1nqred1ents 1n acld1t1on to milk or peeled. deve1ned shrimp. 15. Prepared from frozen. water) 54. Rna
Winter 1980 19