Hot Dog Sales Sizzle As Makers Embroiled In Suit

Todd Hale, senior vice president for consumer and shopper insights at Nielsen, predicts a good summer for hot dogs, especially as people stick around home on "staycations."

Sales had been fairly stagnant in the past few years. But revenue in the category rose 5.3 percent to $2.1 billion in the 52 weeks ended April 18, according to Nielsen. Part of that was due to higher prices.

"We're seeing comfort foods, back-to-the-basics foods do real well in this economy and that's speaking to some of the success we're seeing with hot dogs," Hale said.

Smithfield Foods Inc., the nation's largest pork producer, has seen hot dog sales down the past 10 years but now they are up "substantially," Chief Executive Larry Pope told analysts at a conference this month.

Sara Lee and Kraft are continually battling to be top dog, and Riley said store brands are now gaining market share. Private label dogs used to be in the top 10 as far as hot dog sales but now she figures they're in the top five.

That means less wiggle room for Sara Lee and Kraft, who are battling for market share. In the four-week period ending April 19, Ball Park was the top dog, with nearly a 21 percent share and sales volume up 22 percent at supermarkets, drugstores and mass market retailers, according to Information Resources Inc. Oscar Mayer had a nearly 18 percent share with a 5.4 percent slump in volume. The data does not include sales at Wal-Mart.