A Surge In Demand For Retail Meats
by Michael Uetz
September 23, 2009
Fresh meat sales are on the upswing in an otherwise weak economy.
Bolstered by increased inventories from consumers dining out less—which are driving down the price of many cuts—total meat and poultry sales volume increased 4.7 percent and 7.5 percent, respectively, in the first and second quarters of 2009, reports Fresh Look Marketing Group, a Hoffman Estates, Ill.-based research firm.
The price of bone-in chicken breast fell nearly 8 percent in the first quarter compared to the year-earlier period, resulting in a 22 percent sales volume increase.
Volume sales of pork ribs, meanwhile, jumped 23.5 percent in the first quarter and 5.3 percent in the second quarter, with prices down more than 4 percent for each quarter. Pork inventories also have expanded because of fewer exports.
Purchases of premium beef steaks, which include cuts from the sirloin, strip, ribeye, and tenderloin, jumped 12.2 percent in the first quarter and 2.5 percent in the second quarter, as prices declined 5.4 percent price during the first quarter and 3.5 percent in the second quarter.
More retailers, meanwhile, also are promoting premium beef steaks, also known as middle meats.
Oak Brook Terrace, Ill.-based Promodata reports that retailer featuring of beef steaks increased 3.5 percent during the first half of 2009.
To benefit from this momentum, retailers also should promote beef middle meat steaks and roasts through the fall and winter.
In addition to featuring, retailers can generate more activity by including appetizing recipes with their fresh meat products.
By marketing family packs, sub-primals or even full cases of products, retailers also can offer more affordable per pound price points to consumers who prefer larger quantities.
While this consumer shift to lower-priced products is spurring sales, it also is enhancing the labor requirements of retailers that process meats in-store.
As a result, it is critical for merchandisers to focus on labor planning and scheduling to meet this increased production requirement.
Finding the right balance in labor and preventing costly out of stocks is imperative for sustaining activity.
More detailed analysis of beef, chicken and pork sales are available at midanmarketing.com.
Michael Uetz is a principal at Chicago-based Midan Marketing, a full-service, integrated marketing firm.
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