AMELIA ISLAND, Fla. -- The poultry category is approaching full maturity and needs to be energized by new products before it loses its pecking order in the protein pack, according to panelists at last week's Chicken Marketing Seminar 2000 here.
Panelists were Neal Fields, vice president for meat/deli purchasing at Brookshire Grocery Co., Tyler, Texas; Robert Stevens, meat and poultry buyer at Strack & Van Til Supermarkets, Highland, Ind.; Butch Smathers, vice president of merchandising and purchasing for Western Supermarkets, Birmingham, Ala.; and Phillip Cacciatore, president and general manager of Cacciatore Bros., Tampa, Fla. (See related article, Page 25.)
This call for new products -- and additional sales outlets -- reflects a growing belief that the poultry category is approaching a maturation level that could soon endanger chicken's dominance, panelists agreed.
"Beef and pork have made gains in sales the past two years," said Fields, whose Brookshire chain operates 134 stores, under the Brookshire's and Super 1 Foods banners, in Texas, Louisiana and Arkansas. "Both categories have learned from the chicken industry -- both are producing products that are leaner and easier to prepare and both are introducing case-ready programs."
Indeed, statistics show that annually Americans are buying 82 pounds of chicken, compared with 66 pounds of beef and 51 pounds of pork per capita. But John Bekkers, chairman of the National Chicken Council, the Washington-based trade organization that sponsors the seminar, warned earlier in a speech that per-capita growth could become more challenging as other meat processors catch up with chicken's trendsetting programs.
"Clearly, we have done a great job of meeting consumer demand for healthful, nutritious, tasty and high-quality food," he said. "The question is, can these trends continue?"
At Western Supermarkets, an 11-store independent pulling wholesale from Minneapolis-based Supervalu, chicken merchandising is divided along unconventional lines, a strategy that keeps the category fresh and interesting for customers.
In the meat department, sections are divided by use: "Cookout," "Marinated," "Single-Serve" and "Family Pack." In the Cookout case, all items have on-pack day-glow stickers with suggested cooking methods, which are also found on supporting signage and literature. Here, shoppers find fajita chicken strips with sliced peppers, or kabobs skewered with chicken and vegetables. The marinated selections have been rubbed with spices or seasonings, or injected with flavorings. The single-serve slot holds ready-to-cook portions for one person; while the family area holds tray-packed items that are value-priced.
In the deli department, chicken is available fried, rotisserie-style and smoked. It also has a presence on the steam table and in the hot prepared-foods case, according to Smathers.
"We enhance a lot of our own chicken products. We use rubs, inject some of them and use different kinds of seasonings," he said, adding that Cajun fried chicken -- an outgrowth of an identical turkey program -- has become a popular consumer choice.
Smathers said he believes that opportunity for future category growth may lie in additional promotional funding. For example, an annual "Backyard Barbecue" sweepstakes partners the retailer with the state cattlemen's beef association, where both sponsor a shopper contest that literally brings a complete barbecue to the winner.
On the processing side, Smathers said, there seems to be a strong desire for smaller birds, and he suggested that the industry review its sizing parameters.
Value-added items have also emerged as the cornerstone of growth in the poultry category for Brookshire Grocery. According to Fields, the money is in convenience: items both individually quick frozen and sold out of the deli are up 10% in the past year. And, though chill-pack sales have remained relatively flat, the retailer is still pleased with volume.
"Chill pack is an area that's vulnerable to all the other types of chicken business," he said. "But [sales] don't just fall into your lap; you have to go out and fight for that business and come up with ways to get it."
On the traditional side, Brookshire sells IQF and chill-pack chicken items. In the deli, there's rotisserie and fried chicken. The retailer also offers smoked-chicken products and a selection of ready-to-cook/heat fresh-meals entrees.
"The industry has met customer demand," he added. "It's answered health concerns and was real quick on food safety."
Compared with the other meats, chicken has been a trailblazer, said Fields. Yet, beef and pork are also developing leaner end products and case-ready programs that have been the hallmarks of the poultry category.
Fields said future growth in poultry will depend on the introduction of new products that "go with the trends like finger foods, entertainment cooking and new cooking methods." Further value can be added to existing product lines by including packages of seasoning or gravy, an option that has met with success in the turkey category.
Yet another emerging avenue of profit lies with the growing popularity of all-natural or organic chicken, he said.
Chicken is the most profitable protein in the meat department at Strack & Van Til, the 11-store independent operating in northwest Indiana, according to Stevens, the meat and poultry buyer. In the chain's largest store, 72 feet of self-service space are devoted to chicken in a meat department totaling 210 square feet. Here, three coffin cases hold a wide variety of IQF products.
"One of the biggest advances in this whole IQF category was the resealable ziplock bag," he said. Both he and the other retail panelists stressed that packaging has emerged as a key sales driver, as well as an important quality-control point, and the industry could add even more value to poultry by seeking further innovations.
In the service case, Strack & Van Til has developed a line of signature, ready-to-cook grillers with locally recognized names (see "Making Chicken Fly," SN, July 24, 2000). Among them are the Crossroads griller, with Canadian bacon and mozzarella cheese; and the Stateline griller, containing cheddar cheese and broccoli. These types of fresh, value-added items help to differentiate the retailer, whose competition includes Wal-Mart and Super K, said Stevens.
The service case also offers marinated-chicken products, using a 20-pound tumbler in the stores, as well as a selection of grill-friendly kabobs, he added.
At Cacciatore Bros. in Tampa, the two-store specialty retailer specializes in fine meats, and has a particular reputation for its Italian chicken sausage, according to Phil Cacciatore. Also popular are stuffed, Kiev and cordon bleu-style breasts, and boneless breaded cutlets.
"We have deliberately made chicken the leader in our meat department and our increased sales ratios are testament to our success," he said. "For our customers, we offer far better value in larger quantities."
To that end, the retailer sells boneless and skinless breasts, as well as split breasts, in 10-pound bags; wings and drumsticks in 5-pound bags; and leg quarters in 40-pound boxes.
