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February 2007: Going Publix
by Richard Mitchell
February 1, 2007

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Publix Super Markets Inc. is attracting shoppers to its meat and deli departments by emphasizing premium products and freshness.


“Less is more” is one of the more accurate ways to describe Publix Super Markets Inc.’s meat and deli operations.

Unlike many retailers that leverage a host of local, regional and national brands in an effort to attract different shopper segments, Publix primarily markets private-label items in the fresh meat case, and Boar’s Head-branded meat and cheese in the deli.

The Lakeland, Fla.-based retailer—with approximately 900 stores in Florida, Georgia, Alabama, South Carolina and Tennessee—is leveraging a strategy that emphasizes fresh, premium and convenience proteins. The model appears to be working as Publix not only is the dominant supermarket retailer in the Southeast, but the seventh-largest in the nation with annual sales of approximately $20.6 billion, reports Trade Dimensions International Inc., a Wilton, Conn.-based research firm.

Publix’s success is tied in part to the company’s ability to tailor offerings at every location to the specific needs of shoppers in each market. That strategy is particularly evident in the meat and deli departments.

The vast majority of proteins at the full-service deli counter are premium products. A neighborhood store in Orlando, for instance, recently was merchandising 48 varieties of Boar’s Head meat in the deli case, and 16 items with the Publix brand.

Cheese selections were comprised of 20 varieties of Boar’s Head products and two Land O’Lakes-branded items.

“Many Florida communities have older residents who cook less and want premium and convenient meals,” says Marcia Mogelonsky, senior research analyst at Mintel International, a Chicago-based market research firm. “Some Publix stores on the Atlantic coast also carry kosher products because of the high Jewish population in their areas. The company wants to attract the local clientele and keep them loyal.”

Providing premium meats also insures that food quality remains consistent, adds Marcia Schurer, president of Culinary Connections, a Chicago-based food industry marketing and consulting firm. “Publix stores are clean and always have the products that customers want,” she notes. “Shoppers believe they can get reliable, fresh food.”

Freshness is further emphasized by the merchandising of prepared sandwiches and hot foods. The Orlando store, for instance, offers 10 types of made-to-order sandwiches, and customers have the option of paying extra for Boar’s Head meat.

Most standard sandwiches are priced at $4.19 for a half and $5.59 for a whole item, while Boar’s Head selections range from $4.59 for a half to $7.29 for a whole.

In addition to the sandwich station, a Publix outlet in Kissimmee, Fla., also sells such proteins in the hot case as two-ounce boxes of Popcorn Chicken for $1.89 and four-ounce boxes for $2.69; two-pound bags of Rotisserie Chicken for $6.49; and a 28-ounce Whole Marinated Caribbean Seasoned Chicken Breast for $8.49.

Other hot selections include Fried Chicken, Macaroni & Cheese, Meatballs, Rice, Fried Catfish, Meat & Potato Balls and Cooked Plantains, a tropical fruit resembling a banana.

“Family Combo Meals” also are available for $9.49. They include either Hot Rotisserie Chicken or eight-pieces of Fried Chicken; two 16-ounce side dishes from a choice of New York or Southern Style Potato Salad, Cole Slaw, Deli Beans or Macaroni Salad; and Dinner Rolls.

The few marketing materials in the Kissimmee deli include a large Boar’s Head sign and placard stating, “Publix deli fried chicken is marinated, double battered and cooked in store.” Customer service is strong, however, with associates encouraging customers to taste the hot and cold products.

In one instance, a deli staffer did not know the type of a particular cheese in the case, but suggested that the item be sampled. (It turned out to be Swiss.)

While most of the deli products in the Kissimmee outlet mirror those at the Orlando store, locations still market unique items. The Kissimmee location, which caters to tourists and winter residents, offers 51 types of Boar’s Head meats, including such additional selections as Pastrami and Pickle & Pepper Loaf.

The outlet also has 20 types of Publix-branded deli meats; 25 varieties of Boar’s Head cheese; five types of Land O’Lakes cheese; and one selection each of KerryGold and Jarlsberg-branded cheese. The Kissimmee and Orlando stores do not merchandise salads or other prepared foods in the full-service deli case.

Mogelonsky says many operators are reluctant to carry such items without a strong local demand. “Nothing is worse for a store than to have a case of prepared foods that are not moving and need to be dumped,” she notes. “Prepared foods have a short shelf life and margins are tight. It makes no sense to put the foods out if customers don’t want them.”


Where’s the beef?

The meat departments in Publix locations, meanwhile, were almost as limited in their range of branded products and merchandising materials.

Most of the proteins in the refrigerated fresh meat case in the Orlando store, for instance, display private-label monikers, including Publix, Publix All Natural, Publix Premium and Advantage (which typically are large-sized packages that sell for less).

Also available is GreenWise, a category of products that are produced without any artificial ingredients, colors, flavorings, additives, pesticides, growth hormones or antibiotics. Publix offers 14 varieties of GreenWise-branded chicken.

Other brands in the refrigerated case include Murray’s, Maverick Ranch, Cumberland Gap and Smithfield. Unlike many supermarket outlets, Publix’s Orlando and Kissimmee stores do not have stickers affixed to store-branded meat offering cooking information or recipes.

Publix ground beef packages, however, sport safety stickers noting that the items always should be cooked at 160 degrees Fahrenheit and that users should be sure to place cooked meat on a clean plate.

Among the few merchandising signs in the Orlando meat department is a placard that notes, “Our meat and seafood looks fresh because it is. Other stores may carry meat processed with carbon monoxide to make it seem fresh even if it isn’t. Publix never does.

Another sign states, “Want more or less? We gladly break packages. Just ask.”

A large arrow, meanwhile, dangles from the ceiling and points at a section of products in the meat case. It contains the message, “Home Meal Replacement. Delicious Entrees Made Quick and Easy.”

The items, which are priced by the pound, include Stuffed Flank Steak, containing provolone or mozzarella cheese and spinach for $6.99; Mojo Seasoned Fresh Picnic Pork for $1.99; Pork Loin Florentine for $5.49; Stuffed Green Peppers for $3.39; Seasoned Meatballs consisting of ground chuck for $3.39; Stuffed Cornish Hens for $2.89; Stuffed Roasting Chicken for $1.99; Chicken Cordon Bleu for $4.98; Marinated Steak for $7.99; Chimichurri Seasoned Beef Skirt Steak for $6.99; Stuffed Italian-Style Boneless Chicken Fillets for $4.99; and Seasoned Boneless, Skinless Chicken Breast for $4.99.

A Publix assistant meat director says the vast majority of the meat and poultry selections are identical at each Publix store, and all proteins, except for chicken, are cut in-store.

Indeed, using butchers to cut meat and interact with shoppers enables Publix to differentiate its meat department from outlets that primarily sell case-ready proteins, such as Wal-Mart Superstores.

Publix does not have a formal training program for butchers; cutting techniques typically are taught to novice butchers by experienced workers, the assistant director says.

The staffer says apprentice cutters can be trained in two months, adding that while Publix does not have difficulty in finding butcher candidates, it is a job that many persons avoid.

“Being a cutter is hard work because butchers have to operate in the cold and keep up with the pace of slicing meat,” the assistant director notes. “But it is easier to cut meat today than in the old days. We receive manageable-size items rather than big carcasses.”

The butchers, in response to the greater market demand for premium and convenience, also prepare a range of value-added items.

Selections—which are priced by the pound—include Beef Loin Top Sirloin Kabobs with green peppers, onions and tomatoes for $7.99; Salisbury Steak with seasoned ground chuck for $3.49; Seasoned Beef Ribeye Steaks for $5.49; Seasoned Beef Cube Steak for $4.79; and Oven-Ready Meat Loaf with seasoned ground chuck for $3.39.

Stores, meanwhile, also carry a host of frozen meat and poultry. Among the brands are Bubba Burger, Jennie-O Turkey Store, Louis Rich, Pilgrim’s Pride, Butterball, Perdue and Tyson.

Publix caters to Florida’s large Hispanic population by identifying meat and poultry in both English and Spanish on all weight and price labels.

Indeed, the retailer in 2005 undertook a major initiative to address the Hispanic market by opening its first two Publix Sabor locations in Kissimmee and the Miami suburb of Hialeah. The outlets offer a variety of Hispanic and Caribbean items (see story)

Publix Sabor: Keeping up with the consumer

Publix Super Markets Inc.’s opening in 2005 of two Hispanic-oriented stores in Florida illustrates the growing emphasis by retailers on tailoring their meat and deli offerings to the demographics of the local markets.

While the vast majority of products in the two Publix Sabor outlets in Hialeah and Kissimmee are intended appeal to persons from all customer segments, many of the proteins are oriented toward Hispanics. More than 90 percent of Hialeah’s residents and 40 percent of Kissimmee’s population are of Hispanic or Latino origin, according to the 2000 U.S. Census.

A hot foods station in the deli at the Kissimmee location includes such dishes—which are priced by the pound—as Fried Pork Rinds for $6.99; Stewed Chicken for $5.99; Red Beans with Pigs Feet for $6.19; and Mojo Yuca for $2.19. Also offered is Green Banana Croquette for $1.50 each.

The full-service deli features 52 varieties of meats, most of which are also sold in conventional Publix stores. But included and priced by the pound is Quijote Chorizo for $9.99; La Primera Sausage for $6.69; El Toro Ham for $4.89; and Campofrio Ham for $17.29.

Among the 23 varieties of Boar’s Head-branded cheese are Queso Para Freir, a semi-soft frying cheese, and Queso Blanco, a semi-soft white cheese.

The Kissimmee Publix Sabor also has 35 selections at the full-service meat counter that are priced by the pound, including Spanish-Style Boneless Chicken Breast, a breaded entree prepared with eggs and milk, for $4.99; Beef Knuckles for $2.49; Morcilla for $3.19; Frozen Goat for $3.49; and Chicken Feet for $1.99.

Included in the 40 varieties of fresh seafood are Frogs Legs for $6.99; Squid Tubes for $6.39; and Salmon Pinwheels with Crabmeat Stuffing for $6.99.

An associate says the store also merchandises bags of frozen seafood that are not sold at other Publix outlets, including King Fish and Tilapia.

Marcia Mogelonsky, senior research analyst at Mintel International, a Chicago-based market research firm, says outlets like Publix Sabor are ideal for such heavily ethnic markets as Florida.

“There is a huge range of Hispanic shoppers from different cultures and it is important to cater to their ethnic or national backgrounds,” she says. “But the consumers come from different cultures, so the foods must match their individual customs and tastes.”
Such activities are in line with the formula espoused by many analysts for retail success: determine the demographics of shoppers in each market, and then respond to their unique product and service needs.

“Publix does not skimp with its offerings,” Schurer says. “Its market area has a range of populations and they find out what their customers want and then deliver.”



Publix at a glance

Publix Super Markets Inc.
Headquarters: Lakeland, Fla.
Revenues: $20.6 billion (2005)
Chief Executive: Charles Jenkins Jr., chairman
Key Meat/Deli Executive: David Bridges, vice president of fresh product
Store Locations:
Florida                    645
Georgia                  167
South Carolina         38
Alabama                   28
Tennessee               14
History: Employee-owned company founded by George W. Jenkins in 1930 in Winter Haven, Fla.


Richard Mitchell
mitchellr@bnpmedia.com


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