American Gourmet Has Idea for Making Money on the Side

Following a trend among frozen-food suppliers, Orange-based All American Gourmet Co. said Thursday that it will make a $15-million entry into the side-dish market this summer with 79-cent packages of items such as rice pilaf and cheese tortellini.

As with its frozen dinners and main dishes, All American’s six-ounce side dishes will be marketed under the Budget Gourmet label and come in ready-for-the-oven cardboard boxes, the company said.

“An increasing number of working couples as well as a growing percentage of households with microwave ovens have created a tremendous demand for frozen foods that are quick and easy to prepare,” said Ernest W. Townsend, president and chief executive officer.

Speaking away from his office, Townsend said projections on profits from the side dish line were not immediately available.

In all, the company will offer 20 side dish products that will compete for the $700 million spent yearly on such prepared foods, the company said.

All American said it will cost about $15 million for advertising, marketing and production of the side-dish products.