6 strategies to increase retail poultry sales in 2017

With consumer spending and retail grocer strategies changing, these six strategies from the most-recent Power of Meat study can position poultry for more retail grocery sales in 2017.

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Value-added poultry is poised for sales growth in the supermarket, and is a way to drive differentiation, innovation and convenience beyond current users. | michaeljung, Bigstock.com
Value-added poultry is poised for sales growth in the supermarket, and is a way to drive differentiation, innovation and convenience beyond current users. | michaeljung, Bigstock.com

The Power of Meat 2017 study, presented in a Food Marketing Institute webinar by Anne-Marie Roerink, 210 Analytics, provides an in-depth look at the meat department through the shoppers’ eyes.

Meat and poultry producers and retail grocers have a common interest in growing meat and poultry sales because meat is a top-three reason the shopper picks the primary store. What’s more, meat and poultry purchases that more-than double the retail basket make up a significant portion of total sales, and play a prominent role in the grocer’s profits.

Due to changing value propositions for the various meats and an evolving consumer base with changing demographics, Roerink challenged industry participants to consider key questions that will determine winners and losers in the retail grocery landscape:

  • Are you driving transparency and informed choice by shoppers?
  • Are you telling the story of your special attributes? Features and benefits?
  • Are you prompting trial?
  • Are you participating in cross-store programs to drive premium baskets?
  • Are you targeting key shopper groups?

The year 2016 was one of two tales, she said, for grocers and meat and poultry marketers:

  • Negatives included a reduction in dollar sales, household penetration and shopping trips.
  • Positives included an increase in volume of sales, gross margins at retail and the willingness on the part of shoppers for experimentation and trading up.

Driving growth requires putting the shopper at the center of the game plan.

Price-relief-drove-switching-between-proteins

Positives in 2016 included an increase in volume of sales, gross margins at retail and the willingness on the part of shoppers for experimentation and trading up.

1. Leverage poultry’s ‘meat protein’ attributes.

Protein continues to be a popular claim with retail grocery shoppers with 96 percent fresh meat household penetration, according the study. In fact, 39 percent more food items with protein claims are selling now vs. four years ago, and there is a 6 percent four-year compound annual growth rate (CAGR) for these items.

Meat and poultry alternatives, however, are routinely selling in the meal lineup, with 60 percent of millennials believing protein goals do not require meat. Seventy-six percent serve meat alternatives (fish/seafood, eggs, beans/lentils/legumes, quinoa/plant-based items, seeds/nuts) for dinner once a week or more often.

With the main drivers for the consumption of meat alternatives being variety, health and ease of preparation, Roerink said poultry producers should partner with grocers to leverage their products’ ‘meat protein’ attributes.

  • Tell the story of poultry’s nutritional advantages (leanness, protein content, etc.) in pre-trip and in-store promotion and on-pack messaging.
  • Package poultry products to provide smaller portion sizes.
  • Engage shoppers in-store and on-pack with ideas for meal-preparation variety.

  “Do you have the hottest ad or the most relevant ad on the most relevant platforms?” – Roerink

2. Sharpen sales promotion messaging/demographics.

“Do you have the hottest ad or the most relevant ad on the most relevant platforms?” Roerink challenged meat and poultry marketers.

With store trips by shoppers down 2 percent and meat trips down 2.8 percent, using ads and promotions to drive higher trip frequency can benefit poultry marketers and retail grocers.

  • Target promotions/messaging in a fragmented market by having the right product, right price, right messaging and right timing for different shoppers.
  • Shoppers most prefer price-per-pound discounts, but buy-one-get-ones (BOGOs) are popular among younger demographics.
  • Leverage technology to include education, tips, list generation, ordering, etc.

3. Exploit new opportunities in brand preference.

Brand preference is rising for both fresh and processed meat and poultry, the study reported.

Outright preference for brands (manufacturer and store brands) in fresh meat and poultry has risen in the last 10 years. The percentage of shoppers reporting no preference fell from 71 percent in 2007 to 56 percent in 2017. Supplier brands have the edge in preference over private brands (26 percent vs. 18 percent).

In processed meat and poultry, consumers are rewarding innovation and image. Manufacturer/supplier brands have the edge in preference over private brands (43 percent vs. 15 percent).

Retailer-success-with-meat-claims

Are you telling the story of your products’ special attributes?

4. Capture premiums for specialty poultry.

Sales of meat and poultry with specialty claims increased by 7 percent in dollars and 9 percent in volume last year, according to Nielsen. The numbers included double-digit dollar increases for organic (13 percent) and hormone-free/antibiotic-free (11 percent) claims. On the other hand, sales of meat and poultry with no claims decreased by 4 percent.

Premium attributes are expected to continue to drive growth in meat and poultry sales with shoppers most interested in the animal’s diet, treatment and origin. The Power of Meat ranked consumer concerns:

1 “free from”

2 better health/treatment of animals

3 positive long-term personal health effect

4 freshness

5 better taste

Meat-attributes-to-drive-growth

Premium attributes are expected to continue to drive growth in meat and poultry sales with shoppers.

5. Grow sales in value-added poultry.

Value-added meat and poultry is poised for sales growth, and is a way to drive differentiation, innovation and convenience beyond current users. Value-added represents a significant growth opportunity. Fifty percent of consumers purchase value-added meat and poultry hardly ever or never, and only 6 percent make purchases frequently.

Price is the number one barrier to consumers buying more value-added meat and poultry products, but perception barriers exist. Poultry marketers can overcome the barriers by reminding shoppers of the following:

  • Convenience offered (all prep work is done)
  • Grade/quality used
  • Health and wellness/nutritional callouts
  • The safe handling of product
  • Prepared instore/certified facility
  • Leverage label/packaging technology innovation for more ‘real estate’

6. Grow sales in solutions-based poultry.

Meal kits are poised to grow $3 billion to $5 billion by 2020, but the study showed grab-and-go meal solutions with fresh meat and all the ingredients for one dinner is a category open for development among consumers:

  • 11 percent very interested
  • 42 percent somewhat interested
  • 29 percent not too interested
  • 18 percent not at all interested

Younger shoppers may be susceptible for conversion from other purchase patterns:

  • Two to three meals in a week are takeout, delivery, dining out or deli/fresh prepared.
  • Four to five meals are home-cooked, increasingly mix/match scratch with value-added preparation items. Only 3.8 of these meals contain meat or poultry.

There is an opportunity is to grow poultry sales through holiday meal solutions. Twenty-seven percent of shoppers are interested in quality/easy solutions for holiday meals. Prime occasions include Valentine’s Day, Super Bowl and Mother’s Day. Marketers need to drive convenience by promotions, ideation, meal planning, recipes, preparation, clean-up, etc.   

Sales-growth-meat-with-claims

Sales of meat and poultry with specialty claims increased by 7 percent in dollars and 9 percent in volume in 2016.

 

Sales barriers to natural/organic meat and poultry

Price and perception are the top barriers to wider sales of natural/organic meat and poultry, with 41 percent of consumers not having bought natural/organic in past three months for the following reasons:

  • 63 percent too expensive
  • 26 percent don’t believe there are added benefits
  • 15 percent don’t think it will taste any differently
  • 11 percent not readily available
  • 4 percent don’t think it will taste as good

 

Read more: 

Poultry at center of retail grocery upheaval, www.WATTAgNet.com/articles/26317

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