Progressive Proteins
When looking for ideas in the meat and poultry department, some say retailers must exceed the perceived value offered by restaurants.
According to "What's For Dinner 2011: Trends in Center of Plate Proteins," a report from Rockville, Md.-based Packaged Facts, American consumers are continuing behaviors they adopted during the recession. That is, they are eating in more, which has proven beneficial to the value-added protein business.
However, consumers also are time-crunched, choosing less-expensive and less-time-consuming meals, stocking up on sales and looking for deals, the report says. Moreover, in the current market landscape — where supercenters and warehouse clubs are emphasizing fresh center-of-plate options and even drugstores are selling prepared foods — the competition is greater than ever.
During this "new normal" economy, consumers' value focus also has given a boost to private label proteins, which are growing in importance to retailers, the report says.
Bryan Salvage, senior editor of Meat & Poultry magazine, agrees, noting that more retailers seem to be investigating the introduction of store brand value-added meats to create a point of difference from their competition, as well as to give customers more reasons to shop their stores.
According to Henry Alpert, a Packaged Facts analyst, the store brand value-added meat and poultry category also is trending toward a strong focus on product quality.
"Stores don't want to put their name on commodity-grade meat," he says. "Natural meats are still a small segment, but [are] poised to grow, and some private labels seem to be entering this area. Some private label meats are crossing over into prepared food territory — lemon pepper chicken, for example."
Do develop value-added meat and poultry products that not only save consumers time, but also differentiate your stores from the competition.
Adding value
The protein segment's value-added options are gaining momentum — from prepared, gourmet-style meals to enhanced meat and poultry center-of-plate options, consumers have more choices than ever. But some industry players believe the term "value-added" must be more clearly defined for the purchaser.
Adolph Zarovinsky, president of Toronto-based Tiffany Gate Foods, says retailers need to ask: What does "value-added" really mean to the consumer?
"Consumers in search for food have only three choices: home-cooked, restaurant or supermarket. Excluding home cooking, which is not a practical option for most working consumers, the choice is between the restaurant and the supermarket," he says. "The buying decision will be made on the basis of a simple consideration — where will I get the most bang for my buck?"
Rotisserie chicken is the best example, Zarovinsky says.
"[The] usual cost of rotisserie chicken in a takeout restaurant is around $12 to $15. The same chicken in a grocery store goes anywhere from $6 to $9," he notes.
The most common mistake made by most retailers, Zarovinsky contends, is forcing consumers to "build their dinners," adding that the vast majority of consumers have no idea of the proper size and composition of their meals.
"For example, has any waiter ever asked a patron how much mashed potato he would like with his grilled breast of chicken? Or, would he like a half or three-quarters of a pound of mixed vegetables with his pork chop? Never," he says. "Supermarkets leave these decisions to the consumers, who, having made the choice to shop for their dinner in the prepared foods department instead of going the easy route by going to a restaurant, have to deal with quantities and selections they would have never had faced in the restaurant."
Zarovinsky says retailers must make it easier for consumers.
To that end, Alpert agrees.
"Many consumers are intimidated by their kitchens," he notes. "Cooking instruction labels have been on the rise on meat and poultry packages. Even with value-added, the more help the manufacturer can give the consumer, the better."
On the frozen side, high-quality meat entrées also appeal to time-crunched consumers, Salvage says. But a microwavable design could adversely impact post-cooking quality.
"One challenge with microwavable [options] is the power for the range of microwave ovens on the market is all over the place," he notes, "which makes it more difficult for the consumer to adequately prepare a microwave product. The directions for preparation on the packaging may not be exactly right for certain microwaves."
Speaking of preparation directions, whether the product is designed to cook in a microwave or a traditional oven (or is dual-ovenable), consumers want plenty of guidance, Salvage notes.
"Offer recipes on the packaging and tout the company's stand on sustainability," he suggests. "Also, the days of generic packaging are over. The consumer wants to see colorful, appealing packaging touting preparation ideas, storage tips, etc."
In terms of where the overall value-added meat and poultry segment is heading, private label or otherwise, Zarovinsky says the trend is towards convergence.
"As time goes by, prepared food departments of grocery stores will look more like restaurants, and restaurants will try to recover lost sales by selling more takeout items in competition with retailers," he said. "The process has already started — more and more eat-in locations are opening in supermarkets. Likewise, more and more restaurants advertize weekly like retailers. To get there sooner, grocers must reorganize along the lines of the restaurants."
Consumers' desire for convenient meal options also should ensure a wealth of store brand opportunities in the years to come.
"As the demand for convenience grows, so do opportunities to offer heat-and-eat entrées and/or dinners from the deli," Salvage says. "As more people from around the world move to the U.S., this may mean certain retailers will have an opportunity to offer ethnic foods previously not in demand."
Don't force consumers to "build their dinners" in the prepared foods section — give them complete single- and family-meal options.