Five Opportunities to Sell More Fresh Meat

sell-more-fresh-meatAt Midan, our Market Research Team is always scoping out the consumer trends that are having the biggest impact on the meat industry. A key part of our job is to help our clients understand the implications those trends can have on their business. By assigning meaning to facts and figures, we can help turn meat trends into opportunities.

So what opportunities should be on your radar? I’ve outlined five that you might find helpful as you jump into the new year:

  • Embrace Multi-Generations and Multi-Ethnicities
    If you pay attention to the media, you might think that Millennials are the only consumers shopping the meat case. I’m joking, of course – today’s broad and deep consumer base actually spans various cultures and generations and brings with it a range of differing values and habits.  There are four primary consumer segments affecting meat consumption trends: Millennials, Boomers, Hispanics and Asian-Americans. Members of these groups are actively influencing how fresh meat is prepared and consumed in the U.S. It’s critical to tune into the preferences and tastes of these key players so you can adjust your branding, marketing and communication efforts accordingly.

     
    Meet today’s top 4 consumer groups.

  • Promote Transparency Over Traceability
    Significant numbers of consumers value full disclosure over trace back – they’re more concerned that companies are transparent about their production practices when it comes to meat and poultry, versus exact tracking. In the 2016 Power of Meat study,  90 percent of consumers indicated a strong desire to know where their meat comes from, while only 68 percent were interested in tracing meat back to specific animals. Consumers want to know things like: Have hormones or antibiotics been used? What ingredients have been added?Are your production practices an open book when it comes to this kind of information? Being transparent is one of the fastest ways to build trust with consumers.
  • Own Protein and Other Meat Nutrients
    The meat industry has always had the best protein story, hands down. The trouble is, we aren’t telling it effectively. We are competing with yogurt and other foods on the protein battlefront when we should be the automatic victor. According to our Protein and the Plate research (conducted jointly with Meatingplace and sponsored by Yerecic Label), 70 percent of consumers said they substitute non-meat protein for fresh meat once a week.
    Unless it’s okay with you that close to three-quarters of consumers are replacing meat for at least one meal a week, we need to up our game. One way to combat this kind of substitution is to get back to the basics with consumers by reminding them that meat is one of the best protein sources on the planet as well as an excellent source of other key nutrients. We know that consumers love a good story, and we need to be telling ours.

     
    Read Danette Amstein’s blog: Resolve to Own Protein

  • Develop Value-Added Products
    Value-added items in the meat case are experiencing strong growth and there are several reasons why. Along with offering reduced preparation time and minimizing the decision-making process, these products can be sold in packages of one, two or multiple servings. More than ever, consumers crave convenience and simplicity, and the variety of package sizes meets the needs of smaller households, like Boomers. And for that younger generation that’s less educated about meat, value-added products help make dinner stress-free. It’s all about offering meal solutions that meet the needs of your consumer base.

     
    See how we helped develop the Tyson Crafted Creations brand.

  • Build Meat Brands
    You’ve heard it here before and are no doubt seeing it in our industry: commodity products are making way for branded products. Along with helping you compete in the meat case, branding is a way for you to attract new customers and generate loyalty. Branding helps build trust and a solid relationship with your company. Although the meat industry tends to be slow to change, this trend is picking up speed fast, so the time to act is now.

     
    Get meat branding tips.

Are any of these trends on your radar? Please leave a comment; I’d love to hear your feedback!

Groceries delivered to my door?
Sign me up!

I’ll admit it. The thought of trading in the grocery store checkout line for an online cart to buy my weekly groceries puts a little spring in my step. I appreciate that I am heavily involved in the meat industry and have a deep love for brick and mortar stores, but the promise of groceries delivered to my front door intrigued me enough to try it out.

Online grocery is one of the great comeback stories. After the first online grocery delivery company Homegrocer.com failed during the dot-com bust of the 2000s, smart business people perfected the formula and they have returned stronger, more diverse and with better IPOs than ever before. Online grocers like AmazonFresh.com, FreshDirect.com and DoortoDoorOrganics.com are skipping brick and mortar stores for a strong online presence with regionally-based distribution warehouses and privately-owned delivery trucks. In 2014 IBIS World reported that online grocery sales had grown at a 14.1% annual rate over the past five years. In addition, profit estimates were $927 million, which is 8.5% of total revenue. For comparison, brick and mortar stores are at an average of 1.3% total revenue (FMI). Online grocery is only growing, with 54% of online grocery shoppers increasing their spending over the past year (Watson, 2015).

What does this mean for the meat industry?

For the right grocery shopper, online grocery can be a life saver. While it truly has the potential to replace or at least fill in the gaps of a regular grocery shopping trip (and that even goes for fresh meat sales), there is a price for convenience. From my estimates, an online shopper will pay more, but in the long run it’s an opportunity cost comparison. If the time saved by shopping online versus going to a brick and mortar store is greater, shoppers will increasingly make the switch. For meat suppliers, that means playing the game and working to create fruitful relationships with online grocery businesses. However, when trying to forge the sale, it will be important to have a good grasp of an online grocery’s unique buying, selling and distribution business model.

In order for brick and mortar grocery stores to compete, Meat Directors or Meat Managers need to constantly be giving consumers a reason to physically come into a store. That means emphasizing convenience, value and product freshness, along with unique advertising campaigns to peak and maintain a customer’s interest. Some retailers have been successful with a hybrid model that allows customers to order online and pick up bagged and ready to go groceries at the store’s front door. While this does require a bit of infrastructure and systems in place on behalf of the retailer to succeed, it also may require meat suppliers to produce specialty cuts or packaging for the retailer.

Who’s the customer?

I am the epitome of an online grocery consumer target. About five years ago — otherwise known as B.C. (before child) — I was a busy professional single whose clean refrigerator held nothing more than a half-gallon of skim milk and a few premium steaks in the freezer. Now I am a busy professional mom who can barely squeeze two gallons of whole milk, several frozen ground beef chubs and an entire pork loin into my over-stuffed refrigerator.

In either case, trips to the grocery store have always been a burden. Since I was often in grocery stores for professional reasons at the start of my career, I could find a thousand alternate things to do than hit the local grocer for personal items, and now it’s often comical to watch my 2-year-old’s grubby fingers pull random items off the shelves. Voila! Enter my reason for trying online grocery with front- door delivery.

Because I have a self-diagnosed obsession with online reviews, I have compared and contrasted three major online groceries in that format. Since only a few online grocers deliver to my region in Kansas City, I roped some friends into receiving packages on my behalf with the promise of free steak. Each is a potential online grocery customer as well: a busy professional single and a busy professional mom.

Let’s dig in!

The Basics
amazonfresh-logo-190915_150px

AmazonFresh.com4stars

Locations served:
New York City, New Jersey, Philadelphia, Southern California, Northern California and Seattle

Who got the delivery:
My high- powered single friend in San Diego

Fresh-Direct_150pxFreshDirect.com

3stars

Locations served:
New York City, New Jersey, Philadelphia and areas of Delaware and Connecticut

Who got the delivery:
My cousin, the busy professional and mom of two

door-to-door_150pxDoortoDoorOrganics.com

3stars

Locations served:
parts of Colorado, Kansas City, Chicago, Michigan and parts of the NE

Who got the delivery:
Me, the meat industry professional and mom

Ease in Online Ordering
5stars

I’ll be honest. I love shopping on Amazon.com! I read all the customer reviews, I religiously use the sorting capabilities and I even get excited over the “frequently bought together” suggestions. So when I had the opportunity to buy groceries in the same way, I was excited! Aside from forcing an available delivery zip code in order to browse items, AmazonFresh.com’s online ordering lived up to the hype and more!

3stars

FreshDirect’s online ordering was antiquated at best. Their online ordering mirrors that of an actual brick and mortar store with categorizations, cross merchandising and a large number of offerings, but their system does not have nearly the bells and whistles as other websites. The scheduling system was a bit confusing, and their check-out process seemed to take forever. Overall, they are due for an upgrade.

5stars

DoortoDoor organics online ordering was designed with the consumer in mind. Their website is truly beautiful, and their advance categorizations and enticing photography elevate the overall feel. They also have quick reference icons communicating various brand attributes along with a one click Shop By Recipe® function! Whoever designed their website knew how to appeal to consumers.

Pricing and Offering
2stars

AmazonFresh.com relies on suppliers to set actual product pricing, and for the offered regional and specialty brands, the pricing seemed in line with what they would normally cost at a brick and mortar store. The prohibitive costs are the incremental ones. There is a $299 annual signup fee for a PrimeFresh membership and a minimum $50 subtotal just to get the first delivery.

4stars

Pricing for FreshDirect is slightly more than what would be found in a brick and mortar store, but still not out of reach. They do not have a minimum order requirement but instead charge a flat fee of $7.99 for deliveries. There is an optional DeliveryPassSM subscription which is a maximum of $119/year with a minimum order of $30. I’m intrigued!

3stars

Because DoortoDoorOrganics is a hybrid subscription meal planner and online grocery, to get a delivery you must be subscribed to a “Produce Box,” which start at $25.99. Once you’re subscribed, you can shop the store, but be forewarned – all items are either organic or natural, and inherently pricey.

 

Delivery and Packaging
5stars

Among many things AmazonFresh does right, their delivery and packaging is on point! They make marketing magic with branded green delivery trucks, matching cooler bags and branded freezer packs. Refrigerated items even have special quick teardown Styrofoam sides that help protect deliveries from the hot sun. The beef items themselves were delivered frozen in wax paper wrapping, which made the steaks have a “local butcher” feel. This was definitely a nice selling point.

1star

On the plus side, FreshDirect delivery was perfectly timed; however, their packaging was less than desirable. The steaks were in traditional overwrap packaging, but then just thrown into a large cardboard box with no protection or way to keep the product cool, especially in the summer. The promise of convenience dissipates if a customer has to be home to receive his/her groceries.

3stars

First off, delivery was on time as promised; however, the packaging was way over done. There was literally enough padding and freezer packs to safely ship a delicate icicle to the Sahara and have it arrive safely. It is important to note that there was communication printed on the packing asking recipients to set everything out during normal delivery days so it could be returned and reused. Trouble is, not all customers will do that, which leaves their “better for the earth” vibe an empty promise.

 

What’s the final word?

In the long run I do not believe online grocery will replace the brick and mortar store completely, but it certainly has the potential to steal share from the U.S. grocery market as a whole.

What are your thoughts about online grocery? Tell us in the comments below.

 


 

IBIS World. (2014, December). Online Grocery Sales in the US: Market Research Report. Retrieved July 24, 2015, from IBIS World: http://www.ibisworld.com/industry/online-grocery-sales.html

FMI. (n.d.). Supermarket Facts. Retrieved July 23, 2015, from Research Resources: http://www.fmi.org/research-resources/supermarket-facts

Watson, E. (2015, July 7). Online grocery shippers are upping their spending online, but remain wary of buying fresh produce, says new survey. Retrieved July 23, 2015, from FoodNavigator-USA.com: http://www.foodnavigator-usa.com/Markets/Online-grocery-shoppers-are-upping-their-spending-online-survey

 

Resolve to Own Protein in 2016

It’s easy to guess what the top New Year’s resolutions are every January:  lose weight, get in shape, eat better, right?  (Raise your hand if you’ve picked one of these.)

The start of a new year,shutterstock_334226393 when people enthusiastically resolve to focus on their health and wellness, is a great time to be in the fresh meat industry. In order to capitalize on all the ways that meat can help the health-conscious achieve their goals, it’s important to understand two key factors challenging today’s meat consumption.

Fad Diets are Trending Down

Although the new year is the perfect time to promote lean meat to help build muscle and lose fat, interest in high-protein diets like the Paleolithic Diet appears to be fading. According to Google Trends, online searches for “Paleolithic Diet,” “Primal Diet” and other high-protein diets have been dropping significantly since 2013, reaching an all-time low in 2015. Plant-based diets, however, appear to be on the rise.

So, all those folks who were flocking to the meat case for their high-protein fix aren’t so much these days. But while high-protein diets might be losing their appeal, balanced diets are always in style. So while you might not get as many Caveman dieters, you can still lure lots of folks who are trying to eat well and maintain a healthy weight. Lean beef and pork deliver the high-quality protein every body needs all year long. We in the meat industry need to make sure consumers understand this.

Alternate Protein Sources aren’t Slowing Down

While Americans might be fickle about their fad diets, their love affair with protein seems to be going strong. Unfortunately for the meat industry, people are often choosing their protein in the dairy case instead of the meat case. The current Greek yogurt craze is just one example. Many consumers have shifted away from meat in the past year. According to our Protein and the Plate research:

  • 70% of consumers said they substitute non-meat protein for fresh meat once a week
  • 20% of meat eaters said they are replacing fresh meat more often than they did a year ago

While consumers have an increased awareness of the importance of protein, they aren’t always turning to one of the best sources on the planet to get it. I’ve said it before and I’ll say it again: the meat industry needs to OWN protein!  We are missing out if we don’t shout it from the rooftops and plaster it on the package and all marketing materials.

Fresh Meat:  The Perfect Diet Food

Let’s face it:  those gung-ho consumers with their New Year’s resolutions might not make it to the gym as often as they like (myself included), but there’s little doubt they’ll get to the grocery store. Be ready with products and messaging that help them start the new year on the right foot, with the right protein:  fresh meat.

The time is now to communicate how fresh meat is the ideal protein source for a healthy, balanced diet. Be sure your websites and social media posts are talking about it and start planning now to get this important messaging in store and on packages.

Check out these “Protein Builds” videos from Maple Leaf Foods that effectively relay the importance of protein in a healthy diet.

Leave a comment or email me directly at d.amstein@midanmarketing.com.  I love to hear from you!

Today’s Natural vs. Organic Fresh Meat Consumer

Two years ago, we launched our Consumers’ Case market research platform. This research is our ongoing effort to help the meat industry stay in-tune with the ever-changing consumer. Our Market Research Team is continuously analyzing changes in consumer attitudes and behavior in an effort to determine how those changes will directly affect the meat case. Our goal is to identify opportunities to help the meat industry capitalize on shifts in consumer behavior.

As part of the Consumers’ Case platform, today we’re launching the results of Today’s Natural vs. Organic Fresh Meat Consumer. This research takes a deep dive into who is purchasing natural and organic meat products, their perceptions of the category and the factors that are driving purchases.

The reason we chose natural and organic meat as our next Consumers’ Case topic is that we continue to see a huge void in relevant information on this topic as it relates to fresh meat. There are several resources that regularly report on natural and organic products, but very little is actually reported for fresh meat. We haven’t been able to find answers to the questions we’ve had or those that we’ve been asked by our clients, so we decided to conduct a study ourselves.

If you have a natural and/or organic program or are thinking about offering products in this category, this research report will help you better understand your target consumer, and the best ways to engage and educate them.  This is the first research report focused specifically on natural and organic fresh meat products. For this research we looked at natural meat users separate from organic meat users, and also looked at three specific proteins for each:  beef, pork and chicken.

The number of natural meat products offered at retail continues to grow. Organic meats continue to account for a relatively small but growing percentage of total meat sales. We see continued strong growth for both these products categories in the future. Understanding purchasers of natural and or organic meat will help you better market your products to your current consumers, and also better communicate with potential new customers.

Please check out this new research and let me know your thoughts. You can purchase the report by going to our website, MidanMarketing.com. If you have any questions or feedback, feel free to email me directly m.uetz@midanmarketing.com. I hope you enjoy this latest installment of Midan’s Consumers’ Case market research.

Transparency and the Meat Industry

Today, the meat industry has a great opportunity to communicate directly with consumers about the meat products they are consuming at home and in restaurants, from production to plate.

In our 2012 Consumer Trends Report: Breaking the Pattern, we uncovered a trend called “Security Through Disclosure.” With consumers’ ongoing distrust of government, institutions and big business, they continue to question what is in the food they eat and where it comes from. In a recent Midan Marketing survey, 44% of consumers said they are very concerned about where their fresh meat comes from versus only 36% of consumers that said they are very concerned about where their food in general comes from.

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