Cold Proposition

On a winter day in Labrador some 30 years ago, a fur trader named Clarence Birdseye caught a fish, watched it freeze instantly in the 50DEG below zero temperature. Days later, he dropped the fish into a pail of water to thaw it out, was amazed to see the fish flip its tail and swim about. Birdseye decided that he had "unlocked one of nature's secrets"--and also hit upon a new way to preserve food. When he returned to civilization (i.e., his home in Gloucester, Mass.), he developed a mechanical quick-freezing process and thereby laid the foundation of the frozen-food industry. (In 1929 Birdseye and his associates sold out for $22 million to the Postum Co., Inc., which changed its name to General Foods Corp.*)

The industry spawned by Clarence Birdseye's durable fish today is a baby whale in the U.S. economy; its gross last year was $700 million. Thanks to its early start, General Foods' Birds Eye-Snider division forms the biggest segment of the industry. Its 50-odd frozen foods this year will account for a sizable chunk of General Foods' estimated $500 million gross sales. Last week, to help it stay ahead, Birds Eye-Snider brought out the first frozen tomato-juice concentrate, hopes to have another bestseller.

Early Frost. But Birds Eye has plenty of competition. There are 1,050 smaller companies whose 500-odd products include frozen clam chowder, gefuellte fish, ready-to-bake biscuits, strawberry shortcake, Chinese egg rolls, cheese blintzes, chicken pie, bullhead fillets, partridge, Australian rabbit, buffalo meat and mallard duck. But the biggest sellers are still staples of the U.S. kitchen, vegetables, fruits and juices.

The youthful industry has had its share of growing pains. After World War II, the business was invaded by scores of shoestring operators who tried to make a quick cleanup, flooded the market with tasteless, badly packed products and scared off so many consumers that sales slumped 20%. In 1947, more than 200 firms went bankrupt. But last year the industry hit its stride. More than 20% of all U.S. poultry (200 million Ibs.) came to dinner by way of the freezer. All told, the industry sold 1,130 million Ibs. of frozen foods and twelve million gallons of juice concentrate. And it changed the nation's cooking and eating habits: many families which once used canned goods all through the winter now eat fresh food out of the freezer. One cook, before accepting a job, asked: "Does madam peel or does madam Birds Eye?"

The industry's biggest growth came from the sensational success of frozen orange juice, which also bailed out many a floundering Florida citrus grower. Four years ago, Florida had such a glut of oranges that prices tumbled to as little as 65-c- a box. In 1949-50, as frozen-food packers put up 21 million gallons of concentrated orange juice, the demand for oranges outran supply and prices rose to $3.50 a box.

Late Thaw. California orange growers are still out in the cold, because their production costs are too high to compete. But California lemon growers, who raise half the world's supply (lemons don't grow well in Florida), have started to cash in. This year the industry froze 2,000,000 gallons of lemon juice, expects to put up 10 million gallons next year.

In spite of their locker-bulging growth, frozen-food companies still have plenty of room in which to expand. Only 13.4% of U.S. families now drink frozen orange juice regularly; frozen vegetables amount to only a fraction of the total market. Optimistic frozen-food men think that if grocers would increase their freezer space they could "just about kill the fresh vegetable market."

* Birdseye went right on inventing, now holds more than 250 U.S. and foreign patents on food freezing, incandescent lighting, infrared heat, etc. Now 63, he is president of Dehydration, Inc.

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