Go beyond convenience
Busy consumers need meals that can be eaten at a desk or on the go, but at the same time, they dont want to feel like they are eating food that is just a step above junk food. And while lunchmeat and cheese are definitely convenient, not to mention friendlier on the wallet than takeout, they traditionally have not been thought of as all that good for you. But that reality is beginning to change.
\"Todays [consumers are] educated about the products they buy and are pushing retailers for a less-processed, higher-quality product,\" says Michelle Elizondo, marketing manager for West Liberty, Iowa-based West Liberty Foods.
Health kick for lunchmeat
A number of lunchmeat products are falling into the \"better for you\" category, whether they are lower in sodium, gluten-free, all-natural, antibiotic-free and/or nitrate-free.
\"Manufacturers continue to focus their innovation platforms around this trend to better connect with consumers and drive incremental growth,\" says Robert Gay, marketing director at Homewood, Ill.-based Carl Buddig & Co., pointing out the recent introduction of his companys Deli Cuts lunchmeat, which is not only 95 percent fat-free, but also certified by the American Heart Association Heart-Check program.
Do
add healthful items to the store brand lunchmeat and cheese assortment.
Dont
ignore flavor trends; the right flavors will draw interest to store brand lunchmeat and cheese.
However, despite the increased demand for more healthful products, retailers shouldnt forget about shoppers desire for flavor. Varieties including mesquite, honey and Black Forest, as well as applewood smoked, rotisserie and oven-roasted, are all being seen in the grocery refrigerator case, and retailers would be wise to make sure they have some of those on the shelf under their own brands, he suggests.
\"Retailers should be mindful that they should have a balance of existing core items, too, for their programs to appeal to their entire consumer base,\" Gay says.
Cheese adds some flavor
Flavors are just as important, if not more so, when it comes to cheese.
\"People are not only looking for heat, which used to be the significant flavor trend, they are also looking for more artisanal flavors,\" says Lisa Schechterman, product marketing manager for Hiram, Ohio-based Great Lakes Cheese.
She says one popular new cheese her company has started producing is a horseradish cheddar.
\"People like that in-your-face horseradish taste, which opens up the nostrils a little with the bold robust flavor of cheddar,\" Schechterman says.
Retailers that want to drive private label cheese sales growth also might want to start thinking about cheese as more than just an addition to a sandwich or dish. People are snacking now more than ever, and for many, cheese – high in protein and calcium – is the perfect snack. In fact, according to research from global market researcher Mintel, its the second most preferred snack after fresh fruit.
Do
consider investing in innovative, healthful meal kits that include cheese and/or lunchmeat.
Dont
skimp on packaging – make sure its attractive, informative, convenient and recloseable/resealable.
Cheese also can be seen as an indulgence, and according to Mintel, thats a real plus for cheese marketers, since consumers want a snack that is healthful but also fun to eat. Portion-controlled low-fat cheese snacks, therefore, in portable containers, represent an opportunity for retailers to grow store brand sales. And adding new ingredients to them also is a great way to generate consumer interest.
\"We are seeing some trends where cheeses are being blended with herbs and fruits, which manufacturers are aiming more toward the snacking and dips space,\" says Ivan Gonzales, dairy marketing director at Westchester, Ill.-based Ingredion Incorporated.
The right cheese snack products can be turned into outright meals, and there is strong potential for growth in that category too – especially if they are more healthful than what the national brands are putting on the shelf. Take the Kraft-produced Lunchables, for example. Around since 1988, they are still the \"lunch box king,\" according to a recent New York Times article. But they now are facing new competition from less-processed alternatives such as the new meal kits created by Oakland, Calif.-based Revolution Foods, which contain no artificial ingredients. So now might be a good time for store brand programs to jump on the bandwagon with similar lunch-type products of their own, perhaps ones targeted to adults as well as kids.
\"Moving from just a single cheese snack to a meal replacement allows cheese manufacturers and packagers the opportunity to bring innovative products to the marketplace,\" Schechterman says.
Package to please
Just as important as flavor and health benefits, though, is packaging.
\"We need to begin looking at the next-generation consumer, the one who is more educated about the products they buy and [is] looking for packaging that offers them convenience and fits their lifestyle,\" Elizondo says.
That generation is the millennials. And according to Schechterman, they have an entirely different way of shopping.
\"[Millennials love] a store brand because they feel they are getting a value and it is in their price point; however, if store brand products are boring and mundane, they are going to go somewhere else,\" Schechterman says. \"You cannot have an inferior product – it needs to be in the same sexy packaging that consumers see with name brands.\"
By offering clean-looking, upscale graphics, retailers will be able to get their products to \"jump off the shelves,\" Elizondo points out, adding that consumers are looking for \"a sleek package that doesnt take up a lot of room in the refrigerator and is resealable or reclosable.\"
Of course, the right on-pack messaging also is important. Whatever benefits your product has going for it need to be clearly called out to shoppers, Elizondo says, citing gluten-free as an example.
\"Many products out in the marketplace today are naturally gluten-free, but the average consumer might not realize this,\" she says.
But which other claims are most important to consumers?
When it comes to lunchmeat, \"No hormones,\" \"Raised without antibiotics,\" \"No nitrates\" and \"Humanely raised\" are claims that can assure customers they are eating a high-quality product.
For cheese, \"Natural,\" \"100% dairy\" and \"Creamy\" are claims that communicate both freshness and indulgence. And, according to Gay, on-pack stickers are the perfect means for sharing those claims.
\"They are ideal for delivering product attribute claims and promoting various consumer promotions throughout the year,\" he says.
In-store media such as shelf talkers and floor talkers are also good vehicles for grabbing customer interest in the packaged cheese and lunchmeat space, Gay adds.
Above all, remember that a little innovation on both the product and packaging sides will go a long way.
\"It is through product and package innovation that the retailer can differentiate their brand and create loyal, life-long customers,\" Elizondo says. \"National brands have been doing this for years, and a private label brand can create that same loyalty, just as long as what is offered is different and unique or innovative.\"
| Look whats new |
| Presidents Choice Free From Oven Roasted Turkey Breast from Brampton, Ontario-based Loblaw Companies Ltd. is said to be made from Canadian grain-fed turkey raised without the use of antibiotics or hormones. The product contains natural ingredients and no preservatives. It retails in a resealable 175g flexible pouch. |
| Made with 2% milk, Fit & Active Reduced Fat Colby Jack Cheese from ALDI Inc., Batavia, Ill., is said to provide one-third less fat than regular Colby Jack cheese. It is an excellent source of calcium and contains 0g trans fat per serving. The cheese retails in a 7-oz. portion wrapped in recyclable plastic. |
| Rochester, N.Y.-based Wegmans introduced Wegmans Italian Classics Antipasti Trio. The product comprises genoa salame, prosciutto and sopressata salame. The prosciutto is all-natural. The product retails in a 6-oz. tray. |
| Source: Mintels Global New Products Database |
|