The U.S. Market For Pizza

TABLE OF CONTENTS

INTRODUCTION

• Discussion Parameters I
• How the Two Main Categories Break into Segments ii
• Sources and Methodology iii

CHAPTER I: EXECUTIVE OVERVIEW

• The U.S. Market 1
• Market Description 1
• Retail Sales 1
• Factors Affecting Demand 2
• Market Leaders 3
• Pizza Ingredients 3
• The Global Pizza Market 4
• American Pizza is Loved at Home and Abroad 4
• Anti-Americanism 4

CHAPTER II: THE OVERALL MARKET

• Overview 6
• The Origins of Pizza 6
• Pizza as American as Baseball and Apple Pie? 6
• Retail Sales 7
• Overall 7
• Ready-to-Eat Pizza 8
• Packaged Pizza 9
• The Future of the Pizza Market 11
• Retail Sales 11
• Market Trends 12

CHAPTER III: THE MARKET FOR READY-TO-EAT PIZZA

• Overview 14
• Varieties of Ready-to-Eat Pizza 14
• Pizza Price Wars 16
• Customer Loyalty and Rewards Programs 16
• Four Pizzas for the Price of One 17
• Food Warmers Can Keep the Customer Happy 18
• Retail Sales 18
• Overall 18
• Pizza Chains 19
• Independent Pizzerias 19
• The Institutional Channel 20
• Delivery Most Popular Type of Service 20
• Competition 26
• Top Pizza Chains, by Sales 26
• U.S. Dollar Market Shares 31
• Top Pizza Chains, by Number of Units 34
• U.S. Unit Market Shares 35
• Regional Markets 37
• Leading Independent Pizzerias 38
• 2002 Choice in Chains Survey?Pizza Restaurants 43
• Technological Advances 44
• Overview 44
• Ordering Pizza Online 44
• M-Commerce Ordering 45
• Wireless Payment Terminals 46
• Electronic Check Recovery Services 46
• New Touchscreen Order-Taking Systems 47
• Delivery Drivers Will Never be Lost Again 47
• Domino's Saves Dough with its New Computerized System 48

CHAPTER IV: THE MARKET FOR PACKAGED PIZZA

• Overview 49
• Frozen Pizza 49
• Retail Sales 50
• Overall 50
• Frozen Pizza 51
• Top U.S. Markets for Frozen Pizza 52
• Who's Consuming Frozen Pizza in the U.S.? 52
• Refrigerated Pizza 53
• Dry Pizza Mixes/Kits 53
• Manufacturers' Sales 57
• Overall 57
• Frozen Pizza 57
• Major News for Frozen Pizza Manufacturers 58
• Ready-to-Eat Pizza Manufacturer Successfully Enters the Frozen Pizza
• Category 59
• Refrigerated Pizza 59
• Dry Pizza Mixes/Kits 60
• Producer Prices for Frozen Pizza 61
• Competition 62
• Leading Frozen Pizza Manufacturers 62
• Top-Selling Brands of Frozen Pizza 65
• Leading Refrigerated Pizza Manufacturers 67
• Private-Label Packaged Pizza 69
• Packaged Pizza Snacks and Appetizers 71

CHAPTER V: THE MARKET FOR PIZZA INGREDIENTS

• Overview 75
• U.S. Manufacturers' Sales 75
• Market Segmentation 76
• Pizza Cheese 80
• Overview 80
• U.S. Manufacturers' Sales 81
• Retail Sales of Natural Shredded Cheese for Do-it-Yourselfers 86
• Production and Consumption of Italian Cheese 87
• Producer Prices for Italian Cheese 89
• Pizza Dough 92
• Overview 92
• U.S. Manufacturers' Sales 92
• Pizza Toppings 97
• Overview 97
• U.S. Manufacturers' Sales 97
• Favorite Pizza Toppings of Americans 102
• Pizza Sauce 103
• Overview 103
• U.S. Manufacturers' Sales 103
• Retail Sales of Spaghetti/Italian Sauce for Do-it-Yourselfers 108
• Other Issues Regarding Pizza Ingredients 109
• Private-Label Pizza Ingredients 109
• U.S. Imports of Italian-Type Cheese 109

CHAPTER VI: FACTORS AFFECTING DEMAND

• Overview 112
• Age 112
• Young Americans Love Pizza 112
• Colleges/Universities and Military Bases 118
• Health Concerns of Older Americans 119
• Economics 120
• U.S. Economic Growth 120
• Consumers are Eating at Home More Frequently 121
• Other Factors Affecting Demand 122
• Americans Living Busier Lives 122
• Availability and Types of Pizza 123
• The Microwave Oven 125
• The Weather 127

CHAPTER VII: ADVERTISING EXPENDITURES IN THE PIZZA MARKET

• Overview 128
• Newspapers Still the Most Popular Medium for Advertisers 128
• Methods of Advertising in the Pizza Market 129
• Mudslinging Evident in the Pizza Market 130
• Advertising Expenditures 131
• Industrywide Advertising Expenditures 131
• Advertising Expenditures, by Segment 131
• Leading Ready-to-Eat Pizza Advertisers 134
• Clifford the Big Red Dog and Chuck E. Cheese's Promotional Campaign 137
• Get the Gold Sweepstakes 137
• Leading Packaged Pizza Advertisers and Leading Advertised Brands 138

CHAPTER VIII: THE GLOBAL PIZZA MARKET

• Overview 141
• Surge in Anti-Americanism 142
• Ready-to-Eat Pizza 143
• Which Companies are Going Overseas and Where 143
• China and U.S. Pizza? 143
• Locals are Getting into the Act 144
• Favorite Pizza Toppings Outside the U.S. 144
• Pizza Hut Uses Voice-Recognition Ordering in Australia 145
• Domino's Uses Wireless Credit Card Terminals in India 146
• Oaxaca Pizza 146
• Pizza Ranks Among Top Food Choices of Young Canadians 147
• Packaged Pizza 148
• U.S. Balance of Trade 148
• U.S. Exports of Pizza and Quiche 149
• U.S. Imports of Pizza and Quiche 152

CHAPTER IX: COMPETITOR PROFILES

• Introduction 154
• Amy's Kitchen Inc. 154
• Aurora Foods Inc. 156
• California Pizza Kitchen, Inc. 157
• CEC Entertainment, Inc. 158
• Chicago Pizza & Brewery, Inc. 159
• CiCi Enterprises Inc. 160
• Domino's Pizza, LLC 161
• Figaro's Italian Pizza, Inc. 163
• General Mills, Inc. 164
• Godfather's Pizza Incorporated 165
• H.J. Heinz Company 166
• Hungry Howie's Pizza & Subs, Inc. 167
• Kraft Foods Inc. 167
• Little Caesar Enterprises, Inc. 169
• McCain Foods Limited 171
• Mountain Mike's Pizza 171
• Nestle USA, Inc. 172
• Papa John's International, Inc. 173
• Papa Murphy's International, Inc. 175
• Papa's Pizza To-Go, Inc. 176
• Peter Piper Inc. 177
• Pizza Hut 178
• Pizza Inn, Inc. 180
• Pizza Pro, Incorporated 181
• PizzaExpress PLC 182
• Round Table Franchise Corporation 182
• Sbarro, Inc. 183
• The Schwan Food Company 184
• Uno Restaurant Corporation 185
• Wolfgang Puck Food Company Inc. 186

APPENDIX: DIRECTORIES OF SELECTED PIZZA MANUFACTURERS AND MARKETERS

• Introduction 188
• Directory of Selected Chain Pizzerias 189
• Directory of Selected Independent Pizzerias 203
• Directory of Selected Manufacturers of Frozen Pizza 212
• Directory of Selected Manufacturers of Refrigerated Pizza 215
• Directory of Selected Manufacturers of Pizza Dough 216
• Directory of Selected Manufacturers of Pizza Sauce 217
• Directory of Selected Pizza Supply Wholesalers 218

LIST OF TABLES

• Table II-1 U.S. Retail Dollar Sales of Pizza, by Category 10
• Table II-2 Share of U.S. Retail Dollar Sales of Pizza, by Category 11
• Table III-1 U.S. Retail Dollar Sales of Ready-to-Eat Pizza, by Channel 22
• Table III-2 Share of U.S. Retail Dollar Sales of Ready-to-Eat Pizza, by Channel 24
• Table III-3 U.S. Retail Dollar Sales of Ready-to-Eat Pizza, by Type of Service 26
• Table III-4 Top 100 Pizza Companies, Ranked by Sales 27
• Table III-5 U.S. Dollar Market Shares in the Ready-to-Eat Pizza Market 34
• Table III-6 Top 10 Pizza Companies, Ranked by Number of Units 35
• Table III-7 U.S. Unit Market Shares in the Ready-to-Eat Pizza Market 37
• Table III-8 Top 100 Pizza Independents, Ranked by Sales 38
• Table IV-1 U.S. Retail Dollar Sales of Packaged Pizza, by Type 54
• Table IV-2 Share of U.S. Retail Dollar Sales of Packaged Pizza, by Type 56
• Table IV-3 Leading Markets for Sales of Frozen Pizza 56
• Table IV-4U.S. Manufacturers' Sales of Packaged Pizza, by Type 60
• Table IV-5 Producer Price Index for Frozen Pizza 62
• Table IV-6 Leading Frozen Pizza Companies, by Dollar Share 65
• Table IV-7Leading Selling Brands of Frozen Pizza 66
• Table IV-8 Leading Refrigerated Pizza Companies, by Dollar Share 69
• Table IV-9 Sales of Private-Label Packaged Pizza, by Type 71
• Table IV-10 Selected New Packaged Pizza Product Introductions 72
• Table V-1 U.S. Manufacturers' Sales of Pizza Ingredients 76
• Table V-2 U.S. Manufacturers' Sales of Pizza Ingredients, by Market Segment 77
• Table V-3 Share of U.S. Manufacturers' Sales of Pizza Ingredients, by Market Segment 80
• Table V-4 U.S. Manufacturers' Sales of Pizza Cheese 82
• Table V-5 U.S. Manufacturers' Sales of Pizza Cheese, by Market Segment 83
• Table V-6 Share of U.S. Manufacturers' Sales of Pizza Cheese, by Market Segment 86
• Table V-7 Production of Italian Cheese, by Type 88
• Table V-8 Share of Production of Italian Cheese, by Type 88
• Table V-9 Per Capita Consumption of Italian-Type Cheese, by Type 89
• Table V-10 Producer Price Index for Mozzarella Cheese 91
• Table V-11 Producer Price Index for Other Italian Cheese 91
• Table V-12 U.S. Manufacturers' Sales of Pizza Dough 93
• Table V-13 U.S. Manufacturers' Sales of Pizza Dough, by Market Segment 94
• Table V-14 Share of U.S. Manufacturers' Sales of Pizza Dough, by Market Segment 97
• Table V-15 U.S. Manufacturers' Sales of Pizza Toppings 98
• Table V-16 U.S. Manufacturers' Sales of Pizza Toppings, by Market Segment 99
• Table V-17 Share of U.S. Manufacturers' Sales of Pizza Toppings, by Market Segment 102
• Table V-18 The Most Popular Pizza Toppings in the U.S.103
• Table V-19 U.S. Manufacturers' Sales of Pizza Sauce 104
• Table V-20 U.S. Manufacturers' Sales of Pizza Sauce, by Market Segment 105
• Table V-21 Share of U.S. Manufacturers' Sales of Pizza Sauce, by Market Segment 108
• Table V-22 Sales of Private-Label Pizza Ingredients 109
• Table V-23 U.S. Imports of Italian-Type Cheese 110
• Table VI-1 U.S. Resident Population Trends and Projections 115
• Table VI-2 U.S. Population Trends and Projections, by Age Group 116
• Table VI-3 Age Distribution of the U.S. Population 117
• Table VI-4 U.S. Gross Domestic Product 121
• Table VI-5 Civilian Labor Force in the U.S., by Gender 123
• Table VI-6 Manufacturers' Shipments of Microwave Ovens 126
• Table VI-7 Saturation Level for Microwave Ovens in the U.S. 126
• Table VII-1 Total Advertising Expenditures in the Pizza Market 131
• Table VII-2 Advertising Expenditures in the Pizza Market, by Segment 134
• Table VII-3 Leading Ready-to-Eat Pizza Advertisers 135
• Table VII-4 Advertising Expenditures in the Ready-to-Eat Pizza Segment, by Company and Brand 135
• Table VII-5 Leading Packaged Pizza Advertisers 139
• Table VII-6 Leading Advertised Brands of Packaged Pizza 139
• Table VII-7 Advertising Expenditures in the Packaged Pizza Segment, by Company and Brand 140
• Table VIII-1 Favorite Pizza Toppings in Selected Foreign Countries 145
• Table VIII-2 Top Five Food Items for Canadians Aged 13 to 17 and 18 to 24 147
• Table VIII-3 Ten Restaurants with the Most Traffic in Canada 148
• Table VIII-4 U.S. Exports of Pizza and Quiche 150
• Table VIII-5 U.S. Imports of Pizza and Quiche 152

LIST OF FIGURES

• Figure III-1 Share of U.S. Retail Dollar Sales of Ready-to-Eat Pizza, by Type of Service 25
• Figure III-2 U.S. Dollar Market Shares in the Ready-to-Eat Pizza Market 33
• Figure III-3 U.S. Unit Market Shares in the Ready-to-Eat Pizza Market 36
• Figure IV-1 Leading Frozen Pizza Companies, by Dollar Share 64
• Figure IV-2 Leading Refrigerated Pizza Companies, by Dollar Share 68
• Figure IV-3 Dollar Shares of Private-Label Packaged Pizza, by Type 70
• Figure V-1 Share of U.S. Manufacturers' Sales of Pizza Ingredients, by Market Segment 79
• Figure V-2 Share of U.S. Manufacturers' Sales of Pizza Cheese, by Market Segment 85
• Figure V-3 Share of U.S. Manufacturers' Sales of Pizza Dough, by Market Segment 96
• Figure V-4 Share of U.S. Manufacturers' Sales of Pizza Toppings, by Market Segment 101
• Figure V-5 Share of U.S. Manufacturers' Sales of Pizza Sauce, by Market Segment 107
• Figure VII-1 Share of Advertising Expenditures in the Pizza Market, by Segment 133