New flavors and textures expand the consumer base for the meat

New f lavors and textures expand the consumer base for the meat snacks category.
by jerry soverinsky
to when driving along the 1,300-mile stretch of I-75 between
Detroit and Ft. Lauderdale during the winter.
Sure, there’s the prospect of reaching a warmer, sunbathing
climate. And the opportunity to clear your mind of work or other
concerns can also be enticing. But as for the driving logistics, it’s a
brutal, 22-hour drive — one that my brothers and I have taken on
at least a half dozen or so occasions as we traveled to meet the rest
of our family for an annual vacation.
Mile after mile of torturously monotonous, concrete scenery
unfolds endlessly before our eyes. The only escapes — mental and
physical — are mandatory fuel stops every three or four hours.
And, of course, as we discovered shortly after our first excursion:
unbranded convenience store beef jerky.
I don’t want to drone on poetically about beef jerky. Simply put:
I like it. But while my meat snack cravings growing up had been
relegated to the ubiquitous wrapped sticks, it wasn’t until I ventured outside of my Midwest suburban domain and visited the rural
United States that I discovered an entirely new meat snack world.
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february 2009
brian urkevic
There are few things to appreciate or look forward
did you know?
Settlers in the Wild West often
dried strips of meat under the sun,
extending its life while making it
portable. Those with Spanish roots
referred to the meat as “charqui,”
the Spanish word for dried meat.
This evolved to “beef charqui,”
which later became beef jerky.
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NACS Magazine 39
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february 2009
During 2008, while the CSX database and The Nielsen Company reported a 4 percent decrease in meat
snack sales from 2007, the most
recent trend is promising: thirdquarter numbers show a 3.8 percent
gain over the third quarter of 2007,
with $208.7 million in total sales. And
when you consider a gross margin
percent that has climbed 5.19 points
to 43.5 percent, the appeal for retailers is obvious.
Changing Demographics
While the major jerky consumer,
according to the Nielsen Consumer
Panel, fits a blue-collar profile — 35- to
54-year-old male, household income
from $50,000 to $70,000 — less typical
meat snackers are emerging.
“Long viewed as a man’s snack,
[beef jerky] is receiving increased attention from women, dieters and other
non-traditional meat snackers in
search of a healthier option,” noted the
Progressive Grocer in a November 2008
article. “Women, especially those
searching for handy and better-foryou ways to get more protein in their
diets, could be good target customers
for the category.”
It’s a scientific-based prediction.
A recent Penn State University Park
study assessed the snacking interests of
active women between ages 18 and
45. Evaluating the hunger-satisfying
properties of 100-calorie samples of
beef jerky versus 100-calorie portions
of other snacks, it found that beef jerky
was far more effective at controlling
appetite.
“[T]hree or four bags of the 100calorie packages of Doritos...didn’t even
come close to making them feel full,”
the study found. “But after eating the
100-calorie pack of beef jerky, they were
completely full.”
The study went on to report that
more than 50 percent of its subjects expressed a desire for a more filling snack,
with 65 percent saying that they would
choose dried meat snacks over other
options. All of which led the study to
brian urkevic
third-quarter
numbers for meat
snacks show a
3.8 percent gain
over the third
quarter of 2007,
with $208.7 million
in total sales.
Venison, elk, moose, buffalo and alligator — these were plentiful offerings
that confidently pushed aside the cow,
relegating it to a much less prominent
fixture. (If not replacing it altogether —
I recall one clerk mocking my inquiry:
“Cow? This is Georgia, boy!”) While I
was hesitant to try these exotic, homemade varieties at first, a bit of friendly,
Southern reassurance eventually won
me over. Nearly all types of jerky became interesting culinary discoveries
that infused much-needed anticipation
into those long road trips.
That was the early 1990s. And, since
abandoning the car trip for airline travel, I experienced roughly a 15-year gap
since my last dried alligator strip.
That all changed just a few years ago.
At that time, beef jerky — and the meat
snacks category in particular — underwent somewhat of a renaissance during
the high-protein, low-carbohydrate dieting craze. In its wake came a number
of new suppliers, eager to take advantage
of America’s changing snacking preferences. Convenience stores responded to
the consumer demand, and I soon was
pleased to find an expanded selection of
jerky, even in downtown Chicago.
The high-protein fad has receded
somewhat from America’s consciousness, yielding to a bevy of competitors.
(Indeed, Health News reported this
past December that “there are over 135
diets being promoted across America,”
each no doubt eager to capture a share
of the estimated $50 billion that Americans spend annually on dieting.) But
while Atkins might not be on the forefront of consumers’ minds, meat snacks
have remained a viable, if perhaps
niche, category.
In addition to varieties that continue
to emphasize health-related benefits,
other types of meat snacks have
emerged that appeal to consumers’
growing appreciation for flavorful,
high-quality snacks (including those
who seek organic food alternatives).
Together, they provide retailers with a
liberal assortment of options in a category that is showing signs of growth.
conclude that jerky is poised to grow as
a snacking option for active women,
a finding that some suppliers are validating and pursuing. (If true, the finding might not be entirely optimistic
news for retailers. A product that
reduces consumers’ demand for additional snacks could portend diminishing returns at the register.)
Diverse Demand Yields Supply
“In our research, we found that 50 percent of meat snack purchasers are women,” said Alan Bazzell, vice president of
distribution and sales for Trailsteaks.
The company produces “steak snacks,”
a point of production differentiation
that Bazzell notes appeals to this broader demographic.
“Our product is different, it’s a
steak product that is cooked, not dehydrated,” said Bazzell. The process
ensures that moisture is retained, producing a meat snack that Bazzell said
is easier to chew than other meat
snacks. As such, it appeals to this coveted demographic. “[Many larger producers] don’t advertise to women. But
with our product being more tender
and easier to chew, we can appeal to
women and even children.”
Appealing to female customers is
something that Power Mart in Palos
Heights, Illinois, recognizes as significant for the meat snacks category.
The chain has found success with
softer varieties. “[Beef jerky] has gone
from tough and chewy to a new softer
version,” said Gail Carson, Power
Mart’s grocery and foods director. As
such, it “has brought the new customer to enjoy the product...Beef jerky
sales have [evolved to satisfy] women,
teens and children.”
With this expanded consumer base
comes an equally expanded and diverse
beef jerky palate, one with preferences
and sensitivities extending beyond just
texture. “The manufacturer understands that they need to keep updating
with new flavors,” said Carson. And
suppliers are complying, expanding the
traditional meat snacks product line.
Maximizing Jerky Sales
Looking to maximize your meat snack sales? Tillamook Country Smoker
offers four retailing tips to help you move the most product:
1. Offer an assortment of brands.
2. Make sure displays are clean, neat and orderly.
3. Offer products at multiple price points.
4. Mix it up — offer both bulk and bagged items.
Thanasi Foods offers retailers two additional suggestions:
1. P
romote and encourage consumer trial of unique brands, flavors and
formats (for example, steak strips and brisket strips versus chopped
and formed products).
2. P
lacement is crucial: Meat snacks are typically highly impulsive. Be
consistent with secondary placement, MVEs and end-cap placement
visible to the consumer.
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NACS Magazine 41
Dollars and Sense
One factor that’s having an immediate
effect on the category is the distressed
economy. To combat that, suppliers
are developing ways to appeal to the increasing segment of cost-conscious
consumers.
“[T]he economic outlook isn’t exactly cheery,” noted Crossley, “so retailers and suppliers must meet the
demand for lower end-user costs and
still stay in the black.” So what can retailers expect? Without affecting
product ingredients, there’s the matter of packaging.
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february 2009
“The trend over the last 18 months to
stretch the consumers’ spending dollar
has been to lower package weights to
stymie raising prices as long as possible,” Crossley said. A second solution
rests with packaging quality. “[A]s the
economy worsens, we will see manufacturers shy away from ‘green’
packaging [in favor of] cheaper, conventional sources.”
Retailer Feedback
But stocking new varieties that appeal
to changing demographics is only a first
step. Power Mart’s Carson said that focusing attention on sampling, displays,
in-store signage and cross promotions
are key points of differentiation that
can help maximize the category — responsibilities that should not rest solely
with retailers. “The manufacturer
realize[s] that they need to do more for
the retailers,” she said.
It’s an especially important consideration when sales are slow. Despite the
overall category growth during this
past decade, not all retailers have found
recent success. “We identified meat
snacks, sticks in particular, as a loser in
snacks for 2008 in our chain,” said Jared Sturtevant, director of category
management for Nice N Easy Grocery
Shoppes in Canastota, New York.
Recognizing the category’s enduring value, though, Sturtevant is carefully assessing his company’s execution. “[W]e will work with the manufacturers to offer more TPRs [total physical responses] and focus attention on
the top SKUs that are struggling the
most,” he said. “[And] while we do not
currently sell any private-label meat
snacks...we are very interested in giving
it a try. It is an opportunity to build our
own brand.”
Keeping Things Private
Developing a private-label program is
an option that Trailsteaks’ Bazzell said
is gaining ground with retailers. But he
cautions that it’s important to pursue a
program that is commensurate with
your marketing goals. One strategy is to
brian urkevic
Developing a
private-label meat
snacks program is
gaining ground
with retailers.
Thanasi Foods responded with
products that incorporate popular national brands — Jim Beam, FRANK’S
RedHot and Stubb’s — into their recipes, a step it saw as necessary for
appealing to changing meat-snacking
expectations. “Consumers have become more brand and quality conscious
in the category,” noted Justin Havlick,
CEO and president of Thanasi Foods.
With a crowded field of suppliers —
“Today, there are many more competitors vying for retail placement and consumer mindshare,” said Havlick — only
one thing is certain: The category is
poised for even more change.
“The backbone of the jerky market
can rely on the basics — beef jerky, pepperoni — but there is also a demand for
innovation and new and exciting products,” noted Bob Crossley, spokesperson for Tillamook Country Smoker.
Tillamook subsequently responded
with Smoked Beef Nuggets, just one
step in a continuing effort to claim convenience store shelf space.
Crossley said that staying ahead of
the competition means keeping abreast
of consumer trends, an ongoing effort
that requires continual assessment of
consumer tastes and fads. So what does
the immediate future hold for meat
snacks? “Now that the clamor over
trans fats has quieted down,” Crossley
noted, “the new catchphrase that has
been popping up is MSG- and glutenfree products.”
pursue uniqueness and quality, irrespective of cost. And the other is to focus solely on margin.
“There are basically two differing
views of what a private label should be,”
Bazzell said. “One is the retailer wanting to have unique products that are
available only at their stores that help
drive consumer loyalty and brand
awareness...they want quality because
their name is on the product. The second view is that the retailer wants more
margin…or a product that is like all the
other products within the category.”
Bazzell went on to note that the private-label program is not for every retailer. “You probably need to have at
least 75 to 100 stores to [make it viable],”
he said, noting the roughly 10,000 units
per SKU production requirement.
It’s an economic reality that
Tillamook’s Crossley sees as restricting
that segment’s growth. “I think we’ll
see a downward trend in private-label
packaging in the near future as retailers look to tighten their belts.”
Whatever the short-term economic
effects on retail buying decisions,
here’s personal reassurance from one
consumer to (at least Chicago) convenience retailers: If you continue to
stock the nontraditional meat snack
varieties, rest assured you’ve got at
least one loyal customer who is willing
to pay a premium on quality and innovation — anything to spare me from the
1,300-mile drive on I-75 to get my beef
jerky fix.
Jerry Soverinksy is a freelance writer
living in Chicago and a NACS Magazine
contributing writer.
did you know?
A typical 30-gram portion of jerky
contains 10 to 15 grams of protein,
1 gram of fat and 0 to 3 grams of
carbohydrates.
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NACS Magazine 43