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In Search Of Savings
by William Roenigk
July 27, 2009

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Consumers are shifting to chicken to stretch their food dollars.

Chicken volume grew by 3.7 percent for the 52 weeks ending April 25, 2009, reports the Perishables Group, a Chicago-based consulting firm. Overall meat volume was up 2.2 percent during that period.

Many shoppers are purchasing chicken because of its perceived value. The average retail price of chicken over the last year was $2.03 per pound, compared to $2.74 per pound for the total fresh meat sector.

Dollar sales for every chicken sub-category also were up during the period, with higher growth rates occurring in the lower- priced segments. They include thighs (up 6.4 percent), legs (a 6.3 percent increase), and whole chickens (up 4.9 percent).

In addition, chicken combo packs had a 25-percent increase in dollars and a 28-percent volume growth.

Shopper interest in lower-priced proteins is further revealed in a recent Perishables Group survey of 1,600 consumers.

Forty-three percent of respondents indicated they are purchasing more chicken because of the higher cost of other products.

Indeed, 80 percent of consumers noted that they believe meat prices have increased over the last year, and 72 percent stated they have reduced purchases of items that have increased in price.

The Perishables Group reports that dollar sales of fresh chicken and other poultry increased 8.5 percent over the 52 weeks, compared to 5.9 percent for fresh meat.

Consumers, meanwhile, are leveraging a variety of strategies to slash their meat-buying expenses.

Fifty-one percent say they are purchasing more sale items; 43 percent indicate that they read store circulars; 35 percent say they are buying economy packs; 30 percent note that they are purchasing less meat; and 27 percent state they are buying less expensive cuts of meat.

In addition, 24 percent of respondents say they have changed where they shop for fresh meat, and 23 percent state they are looking for less expensive cuts.

The Perishables Group also reports that loyalty card data from 200,000 households indicates that consumers are reducing the volume of items purchased per trip, but are increasing trip frequency.

Steve Lutz, Perishables Group executive vice president, presented a complete report on meat shopping trends and developments at the National Chicken Council’s recent Chicken Marketing Seminar 2009.

To obtain a copy of the report, contact Steve Lutz at steve.lutz@perishablesgroup.com, or William Roenigk at wroenigk@chickenusa.org.

William Roenigk is senior vice president and chief economist for the Washington, D.C.-based National Chicken Council.



William Roenigk

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