AMC 2016 Top 10

As a team, Midan’s focus at AMC 2016 was to listen and learn.  We took pages and pages of notes, capturing stats, quotes and key findings.  Back at the office, we sifted through all the content and created our own long list of the most important takeaways.  Here’s what we think were the top 10.  If you were there, let us know if you agree.  If you didn’t attend, but have questions, please reach out – we love to share what we learned!

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Midan’s AMC 2016 top 10 takeaways:

  1. Forget the focus on a certain protein or cut — it’s all about application 
    • Consumers don’t buy meat; they buy what they can do with it. 57% of raw meat is purchased with a specific recipe/application already in mind. Give them ideas on what to do with your product and they will buy it. (Jack Li, Dataessential, Consumer Trends Driving Meat Innovation)
  1. Retailers have the opportunity to convert Millennials at the meat case
    • When buying meat, 64% of Millennials are open to being influenced at the store: 90% do not list a brand when meat shopping, 32% plan meat purchases, but decide at the store, and 36% make the entire meat purchase decision in-store. (Larry Levin and Chris Dubois, IRI, “Meat”ing Millennials!)
  1. Corporate Social Responsibility (CSR) factors heavily in Millennial decision-making
    • 87% of Millennials think business success should be measured by more than financial performance; they want to work for and buy from companies who are doing good things for society. (Andrew Winston, The Big Pivot, Doing Business in a Hotter, Scarcer, More Open and Connected World [2016 Deloitte Millennial Survey])
  1. There is a dramatic increase in consumers’ concern about chemicals in their food 
    • 36% of consumers said it is the most important food safety issue they considered when shopping for food, up from 23% in 2014. (Janet Riley, NAMI, Turning Up the Heat: Confronting Current Challenges to Meat Nutrition and Safety)
  2. Don’t forget about Boomers; they are responsible for greater spend overall on meat
    • Boomers purchase from the meat department 5 times more per year than Millennials, driving $2.3 billion in incremental sales. 78 million Boomers hold 70% of the disposable income and account for 50% of CPG sales. (Sherry Frey & Mikael Nielsen, Nielson, Polarized Consumers are the New Norm)
  3. Retailers and packer/processors who embrace digital are winning loyal followers 
    • 70% of consumers who get a quick response from companies on social media are more likely to recommend that brand to others. (Art Yerecic & Kristin Yerecic, Yerecic Label, Connect with Consumers at the Speed of Technology)
  4. Consumers are moving from ethnic buckets to more specific foods 
    • Consumers today are more interested in specific food items and their associated flavors rather than cuisines: not Mexican, but tacos; not Italian, but Chicken Parmigiana.  Food trucks have helped this trend grow. (Jack Li, Dataessential, Consumer Trends Driving Meat Innovation)
  5. The argument against GMOs has shifted from the fear of consequences to “consumers have a right to know.”
    • With respect to GMOs, consumers favor product information disclosure: 68% would like labels to indicate if a product has GMOs, but in 2015 only 1 in 4 consumers (26%) indicated that they would buy products with a non-GMO label. (David Fikes, FMI, Addressing Consumer Concerns with GMOs)
  6. The steady “drip” of adverse health news erodes consumer confidence in meat
    • The meat industry must counteract this with a flow of facts that gives consumers permission to eat our products.  Check out http://meatpoultrynutrition.org/ for a wealth of science-based information that can help do this. (Janet Riley, NAMI , Turning Up the Heat: Confronting Current Challenges to Meat Nutrition and Safety)
  7. What consumers look for on nutrition labels is changing
    • Shoppers will be paying more attention to serving size, calories, carbohydrates, sugar content and iron, while focusing less on fat, calcium, cholesterol, sodium and vitamins. (David Portalatin, NPD, The State of the Meat Eater)

Dinner at the Door: A Review of Online Meal Delivery Services

I have discovered something: I actually like to cook!  I just don’t like to plan meals and I despise standing in front of the frig with the door open, trying to figure out what I am going to feed my hungry clan. Because I work full-time and am a busy mom and wife, my time for meal planning and shopping is limited. A typical week for me includes three to four soccer practices plus church functions and chauffeuring kids to their activities – all after work!

Like many moms, I find great satisfaction in sitting down and eating as a family. I work hard to protect mealtime and try to make dinner at least four nights a week. I was curious as to how an online meal delivery service could help make this happen.

Online meal delivery services are not a new concept, but the niche certainly has been reinvigorated in the last 18 months. Here at Midan we knew we needed to learn more. So, as Shonda started researching online grocery services, I decided to investigate the meal services counterpart. I ordered from both Blue Apron and Home Chef for a couple of weeks each, to “test drive” the concept.

 

Thoughts on Blue Apron

Everything you need for dinner in one Blue Apron box

Everything you need for dinner in one Blue Apron box

Blue Apron is a three-year-old start-up now delivering five million meals a month. The menu is set each week. You cannot select for specific dietary restrictions, which could easily be a detriment for some. The first week I ordered four meals for four people. The meals cost $8.74/person, which includes shipping. The ingredients arrived plenty cold but in LOTS of packaging. My first impression was that all this packaging can’t be good for anyone but the recycling center. (Complaints from customers have led Blue Apron to put a recycling program in place where they retrieve and reuse the packaging.)

The recipes sounded good. Some of our favorites included Fennel- and Thyme-Crusted Pork Tenderloin with Oven-Roasted Brussels Sprouts and White Balsamic Pepperonata and Flat Iron Steak and Fines Herbs Butter with Garlic, Potato and Red Pepper Hash.  The pictures and instructions provided were easy enough to follow, although there were no one-dish-wonders like I often gravitate to in my stable of easy, quick meals. There was a lot of clean up; we always had several cutting boards and pots and pans to be washed. Every meal we received was tasty but my teenage son did declare that most of the meals were too “frou frou” for him. With the higher cost of beef, very little beef was sent, which certainly wasn’t to our liking either!

My biggest complaint:  Blue Apron said the meal would average 40 minutes from start to finish. That was never the case; there was usually 40 minutes of prep time before the cooking began, which lead to a few late night dinners.

 

 Thoughts on Home Chef

Home Chef launched in Chicago in 2013. This summer they reported they were shipping 70,000 meals per month. Home Chef does allow you to select for different dietary preferences, which is a plus. To accommodate family preferences, we tried the low-carb, gluten-free selections. Each week before the cut-off time, I was able to go in and confirm I wanted what they had selected for my family or change to another offering. The appetizing photography often caused me to swap one item for another.

Home Chef ingredients conveniently packaged together

Home Chef ingredients conveniently packaged together

Home Chef seemed to use fewer ingredients and ingredients were already prepped (e.g., the garlic was peeled and ready to be minced). The prep timing was more accurate, and Home Chef includes nutrition facts, which gets a gold star from me. The cost per meal is $9.95 and I usually had enough leftovers for one or two lunches. And, there was way more beef!  We had flat iron and sirloin steaks, which were delicious!  The pork chops and pork tenderloin were also excellent. 

 

Overall thoughts

Do I like this type of program?  Yes! Although I entered this as a “research project,” I was surprised by how much I liked it.
Did I continue after the test? Yes, but with only two meals a week, as that seems to be the right amount for our family and allowed me to get the kids’ favs back on the menu.
Are they more expensive than homemade meals? Yes, but this is offset by me not having to spend a good chunk of my weekends meal planning, checking inventory and shopping. Having some leftovers to take to the office for lunches also helps me justify the cost.
What was the quality of the meat and produce? I’ve got to admit, I was skeptical about how the meat and produce would look when it arrived, but I was pleasantly surprised. All of the produce was outstanding and in the eight weeks I tested, I only had one case-ready leaker: fish!  Each vacuum-sealed package of beef, pork and chicken I received was excellent. All the beef was Select grade, which I understood given the price point they have to hit. The Blue Apron pork and chicken was branded; the beef and pork I received from Home Chef was not.
Can you skip shipments?  Yes, both companies have a great app that allows you to see what is coming and skip that week’s shipment if you want/need to.

 

The biggest benefits

The biggest benefit was the convenience of knowing what we were having and that I had all of the ingredients on hand!  This is a HUGE plus for a busy mom!  While it was my job to have salt, pepper and olive oil on hand (easy enough), everything else – even spices – is included and pre-measured, which means there was no waste.

Easy-to-follow recipes from Home Chef

Easy-to-follow recipes from Home Chef

One benefit I had not anticipated was that the instructions were so good (step-by-step with photos and often a video), that I left my 14-year-old son and his buddy in charge of starting dinner while I ran to pick up my daughter. Most evenings my husband and I prepare the meal together, which gives us time to catch up and is one of the main reasons I have discovered I love to cook. Quality time with the fam, cooking and eating…the benefit of the warm fuzzies has made this experiment well worth the effort!

Retailers, I don’t think it will be too long before you will need to embrace this concept in some way to keep your VIP customers coming into your stores. I like the idea of picking up pre-measured, all-ingredients-included meals for a set price when I need a quick dinner solution. Along with providing the ultimate convenience, an in-store option like this would also eliminate shipping costs and require less packaging.

Packers and processors, if you are not in discussions with companies who play in this space, what are you waiting for?  Forging relationships now could help you grow later. Along with options like online meal delivery service, talk to your current brick-and-mortar customers about how they plan to deliver fresh meals to customers who want to spend less time shopping and more time cooking. Be a part of the solution for these customers now so you can be a part of their success later.

 

Have you tried an online meal delivery service?  I would love to hear about your experience! Leave a comment here or email me d.amstein@midanmarketing.com.

 

Trade Publications – Are they being read?

At Midan Marketing, we like to get a full view of the fresh meat industry – from producers to consumers and everyone in between. When we’re not studying consumers who purchase and consume fresh meat products, we’re talking to retailers and packer/processors about everything from best processing and merchandising practices to technology and innovation.

Recently, we surveyed retailers and packer/processors to better understand their media consumption habits. We asked them about what they’re reading, how frequently they are reading and how they prefer to get their news. We’ve been conducting this survey every other year since 2009, and for the first time, saw some shifts in how the industry is receiving the news. Below are some of the key findings from the survey.

1. Too many magazines, too little time.iphone_in hand_v1
You’re not alone if you can’t find the time to get through your stack of industry reading; our survey indicates that 53% of your counterparts aren’t either.

2. Newsflash: print is old news.
It’s no surprise that the trend is moving strongly to online (online had the highest readership at more than 80%) and away from print (print’s highest readership was less than 30%). So, if you want to get the most bang for your advertising dollars, you should consider focusing more heavily on online.

3. Ads are getting noticed.
Retail advertising and trade articles are sparking an interest or leading to an inquiry or purchasing decision for 76% of respondents (73% in 2013).

4. Don’t be a meathead; get on the social media bandwagon!
While the industry continues to use Facebook (43%) and Twitter (28%) to promote their companies and brands, use of these sites is declining compared to previous years. The proliferation of newer social media outlets, including Instagram, may be diluting their use. If you want to catch up to today’s tech-savvy consumers, you need to adapt to new social platforms faster.

What do you think? Do these findings align with your media consumption habits? I’d love to hear your thoughts. To learn more about Midan’s public relations and creative communications capabilities, contact me at c.ahn@midanmarketing.com. Thanks for reading!

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