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POULTRY IS NOT UP TO SCRATCH ON 'NATURAL' FRONT: MARKETER

SAN JOSE, Calif. -- The poultry industry is falling behind when it comes to consumer demand for natural products, warned a marketing expert at the National Broiler Council's Marketing Seminar here.A few "natural" supermarkets have integrated the concept of natural fresh poultry, and several mainstream retailers have also begun testing the waters.And if his words effectively motivated the marketers

SAN JOSE, Calif. -- The poultry industry is falling behind when it comes to consumer demand for natural products, warned a marketing expert at the National Broiler Council's Marketing Seminar here.

A few "natural" supermarkets have integrated the concept of natural fresh poultry, and several mainstream retailers have also begun testing the waters.

And if his words effectively motivated the marketers in the audience, there may be new "all-natural" poultry products available to retail meat merchandisers in the near future.

"I think that after leading the meat industry for the past 20 years with innovative and consumer-[oriented] products, the broiler industry is closing its eyes to a product that more and more consumers want, and can't find," said panelist Mack Graves, president of Latigo Management & Marketing, based in Aurora, Colo.

"Whether it's called natural or free range or organic, the market is here to stay, and there's not a broiler company of any consequence doing anything about it," declared Graves, a former executive at Coleman Natural Meats, Denver, who addressed attendees during a marketing panel entitled "Targeting Success."

He encouraged suppliers to overcome what many may see as obstacles to the success of natural chicken programs. "All you've heard are reasons why not: it's too difficult to raise chickens naturally or free range or organic, the market's too small, or it just costs too much and the consumer will never pay for it."

Graves claimed that objections such as those don't hold water.

"Consumers want truly natural products and they're willing to pay for them. Just look at the natural products retailers and the natural products chains that are starting and blossoming throughout the country," he said.

"Whole Foods in Texas now has stores across the United States. Fresh Fields . . . is more than just a little thorn to Giant and Safeway."

A clearer differentiation among the terms "natural," "organic" and "free-range" is on the way, courtesy of the U.S. Department of Agriculture, Graves told attendees.

"So what does 'natural' mean? Well, the USDA defines it this way: minimally processed and no artificial ingredients. That's the definition most of you use when you put 'natural' on your label.

"Soon the USDA will have a definition for the word 'organic,' which will mean [a need for] certification and label integrity."

He added that in the consumer's mind, the term "free range" translates as "no factory farming, and [that] it may result in juicier, healthier chicken."

The progress made by such natural meat suppliers as Coleman is paving the way for similar development in other meats, according to Graves.

"As consumers purchase and consume more and more truly natural products, like Coleman beef, they're going to demand it of their other protein suppliers."

The success of Coleman's products should increase broiler companies' confidence in the idea of embarking on similar efforts, Graves said.

"At Coleman we defined natural as animals raised form birth without any antibiotics or growth-stimulating hormones whatsoever. But did that all-important consumer, first, believe our definition, and second, pay the premium over regular beef to buy it?

"Well, our sales increased 75%, our gross margins improved and our profitability grew. [And] more new retailers are adding natural beef to their meat case every day."

In conclusion, Graves asked out loud whether poultry producers thought there should be some type of natural chicken in their futures.

"My answer is a resounding 'yes,' " he responded for them. "And I think you marketing experts had better go back and start pounding on your bosses' desks and get natural or free range or organic programs started right now. Don't let the production guys tell you it can't be done," he advised.

He also warned against the danger of becoming too comfortable with chicken's current consumption lead over beef. "Don't be so smug that you think chicken is king; you and I both know that the consumer is king, and in my view the consumer is sending you a clear message."