Just about every major food trend is working against Hot Pockets, and Nestlé (NSN:VX) clearly knows it has a problem brand on its hands.
The company tried to revive its line of microwavable meat pouches last year with a foodie makeover, boasting of premium cuts of meat and real cheese in the new and improved version. But even these quasi-gourmet touches cant mask the fact that Hot Pockets are processed food sold at a time when consumers are seeking freshness at the expense of frozen options. A beef recall earlier this year also hit Hot Pockets, putting the product at odds with increasing consumer focus on food safety.
Even a new marketing campaign developed with Funny or Die, the popular comedy video website, has failed to turn things around. Hot Pocket sales have continued to fall this year, according to data from IRI, a Chicago market research firm.
![1016_Hotpockets2.png](http://images.bwbx.io/cms/2014-10-17/1016_Hotpockets2.png)
Now executives at Nestlé are pointing to another factor in the long-running Hot Pocket cold streak. A temporary boost in federal food-stamp assistance that was introduced in 2009 was allowed to expire in late 2013. Recipients of the Supplemental Nutrition Assistance Program (SNAP) benefits are a big part of the consumption of this particular product, said Chris Johnson, executive vice president of Nestlé Business Excellence, during a sales call last week.
For our Hot Pockets brand, it was not surprising to understand the value our products offered to the SNAP consumer, said Molly Fogarty, Nestlé vice president for government relations, wrote in an e-mail. A two-pack of Hot Pockets costs about $2.50, she said, and the 12-count package, for around $11, is even more economical.
Reductions in the food-stamp program havent just affected Hot Pockets. Such large grocers as Wal-Mart Stores (WMT), which gets roughly 4 percent of its revenue from food stamps, have also said the SNAP reductions have hurt their U.S. business.
At Nestlé, meanwhile, other products have also been hit by lower levels of federal aid. Weve seen some softening of sales in the entire sandwich/snack category which are related to the SNAP reductions, Fogarty said.
Do you purchase Hot Pockets?
Source: http://www.businessweek.com/article...-pockets-slump-nestl-battles-every-food-trend
From the greatest/saddest thread:
I grabbed a hot pocket out of the vending machine. There was a line to the microwave, and I had to get some reading in before my next class, so I walked out without heating it. It was too frozen to eat, so I put it in my pocket to thaw while I read. Over the next 30 minutes, bit by bit, as pieces of it became soft enough for me to bite off, I ate a frozen hot pocket. And that was my meal.
PogiJones that Hot Pocket if old.