Truearth Case Study

Case Analysis: Truearth

Industry

Demand for healthy gourmet products has been rising. Customers have been less interested in mass-produced, highly processed foods. This can be credited to customer awareness of the health effects of over processed foods as well as the influence of diets that highlight carbohydrates, like Atkins. In general Americans are trending towards fresher, healthier food choices provided that it is accessible and affordable.

Consumers have more money and less time than in years past, so solutions that feature

Company:

TruEarth is a manufacturer of gourmet pastas, sauces, and meals.  Company has recent identified and successful entered quick home meal replacement market with Cucina Fresca fresh whole grain pasta and sauce line.  "TruEarth benefitted from being a successful first mover. If we had waited we would not have been able to establish the market share we have now." Combination of healthy option but tastier than most whole-grain.  Sales grew $18mil in 2006, $35mil in 2007.  Planned for whole grain pizza to extend line.

Trends:

Home meal replacement

        Single serving

        Variety

        Freshness

Refrigerated fresh pasta

        Perceived higher quality

        Packaging tech

        Overall category sales $4.1bil in 2004

Whole grains

        Consumer avoiding bad carbs

        Many considered less tasty

Problem:

Company has worked hard to develop a frozen pizza product, but executives are struggling with launch decision. Poor forecasting in the past has lead TruEarth to misstep with previous product launches, either forecasting low volume and then struggling to meet higher demand or forecasts higher demand and having to deal with frustrated partners and mark down product to try to move excess. The team is aware that their rival, Rigazzi, has also tested a pizza concept and is not far from a product launch.