Beefing Up the Backyard Barbeque
Retailers offering a wide variety of items covering all price points will be best equipped to meet consumers’ grilling needs.
January 1, 2018
Retailers offering a wide variety of items covering all price points will be best equipped to meet consumers’ grilling needs. From mid-May through mid-September, the loneliest appliance in the house is the oven. It is during this time each year that people fall in love with their outdoor grill—cooking everything from Angus beef to zucchini on it. Industry research conducted by FreshLook/IRI shows that 87% of people grill outdoors. Of course firing up the grill is not just a weekend activity. Thus, in order to get the most out of the season retailers would be wise to promote different products throughout the week, say industry observers. “During the week retailers might consider merchandising products that can be prepared quickly,” says Kent Harrison, vice president of marketing and premium programs for Tyson Fresh Meats, based in Dakota Dunes, S.D. “They should give their consumers easy and convenient meal ideas and put the right products out for them to help solve their daily dinner dilemma.” “On Thursday through Sunday, retailers can merchandise thicker chops and steaks to appeal to consumers grilling over the weekend,” he adds. “Offering a variety of package sizes to meet the needs of consumers that might be relaxing or entertaining over the weekend is a great idea to consider as well.” Mid-week or weekend, for consumers, beef is usually the driver when it comes to deciding what to throw on the grill. FreshLook/IRI research reveals that nearly two-thirds of backyard chefs choose beef as the meat they grill most often. Retail sales data for the five-year period from 2009 to 2014 shows that weekly retail beef sales average 3.2% higher in dollars and 1% higher in pounds during the grilling season than across the entire year. According to Alison Krebs, director, market intelligence for the Centennial, Colo.-based National Cattlemen’s Beef Association, a contractor for the Beef Checkoff, ground beef remains the top selling beef product in terms of volume, however several cuts gain in popularity during the grilling season. She says cuts retailers should feature in the meat case include Ribeye, Strip Steak, Top Sirloin and T-bone Sirloin Tips. “Shoppers want beef and are willing to spend more for the beef they want, especially during the grilling season,” says Krebs. “Even though beef prices are higher, beef demand remains very strong and robust.” However, the fact remains price is always an issue and retailers should not count on increased popularity alone to generate sales of these cuts. “You are always going to see consumer demand for these cuts during the summer months, but we tend to see that retailers will get a nice bump if they are actually featuring some of these cuts,” says Krebs. Tyson Fresh Meats recently launched its Star Ranch Angus beef “100% Delicious” and its Chairman’s Reserve Certified Premium Beef promotions. Harrison says the “100% Delicious” promotion targets grilling, runs through August and includes several POS elements, like hats for the meat department staff. POS elements for the Chairman’s Reserve Certified Premium Beef promotion include on-pack labels, static cling and rail strips. No matter how promoted a piece of steak may be, for some consumers the price will always be too high. Retailers looking to capture the shopper that still wants to grill beef, but not pay for expensive cuts, can look to the frankfurter. Filling the void is Beaver Street Fisheries, based in Jacksonville, Fla., with its new Grillman’s brand. “In years past it was common to see two or even three beef features on the cover of an ad,” says Roby McNeely, Grillman’s buyer. “Today retailers are forced to put one higher priced beef item on the cover of the ad and surround it with other offerings, like Grillman’s franks.” Some of the promotions retailers are running with Grillman’s, says McNeely, include BOGOs, price point discounts and in-store demos. “Some retailers prefer to run in-store demo periods to capitalize on the grilling frenzy, while others opt for the more traditional one- or two-week print ads,” says McNeely. “These promotions are typically coupled with on-pack coupons as well.” This summer, Smithfield Foods is promoting its Nathan’s Famous Beef Franks with the Original Selfie Sweepstakes. “We have weekly, monthly and some great grand prizes that all center around this iconic brand,” says Chuck Gitkin, senior vice president, marketing for Smithfield Foods, based in Smithfield, Va. “We also have our mobile tours out on the road during the month of July, stopping at grocery stores to give consumers the opportunity to sample our Nathan’s hot dogs and Eckrich Smoked Sausage.” Hot dog makers are not the only ones hoping to capitalize on high beef prices. With an increased pork supply and moderate pricing, Patrick Fleming, director of retail marketing for the Des Moines, Iowa-based National Pork Board (NPB), says pork has the potential to capture a good portion of consumers’ grilling dollars. To help promote pork, the NPB provides retailers with POS materials at porkretail.org. Fleming says for this grilling season the NPB offers two promotional platforms, The Grill Crashers and Pork Grills Like A Steak. The Grill Crashers POS materials focus on the flavor options consumers have when preparing pork chops. It features recipes for sugar and spice New York pork chops, saucy salsa Ribeye bone-in pork chops and cider brined Porterhouse pork chops. The Pork Grills Like A Steak POS materials feature photography of a Porterhouse Chop, T-Bone Chop and a New York Chop as well as a guide to cooking temperatures for various doneness levels. The POS kit for both include a meat case sign, on-pack labels, degree of doneness rail strips and online banner ads. “Grilling pork doesn’t just mean ribs anymore,” says Fleming. “Retailers that promote pork this season will address consumer needs for easy, flavorful grilling cuts, while moving more volume through their stores. However, St. Louis Style Ribs, Back Ribs, Spareribs and Country Style Ribs continue to be consumer favorites retailers will want to promote this summer.” Smithfield Foods is capitalizing on consumers’ interest in St. Louis Style Spare Ribs, launching a line of regionally inspired barbeque ribs inclusive of Memphis, Kansas City and Carolina varieties. Roy Johnson, senior brand manager for Smithfield Foods, says these will complement the existing Southwest Style Peppercorn variety. “One of the key sales and marketing challenges we face is keeping pork top of mind for consumers when they are making grilling choices,” says Johnson. “We work diligently with our Smithfield culinary team, led by chef Bert Lawson, to develop fresh pork recipes that meet consumer needs.” A good way to promote pork on the grill is merchandising chops using the correct nomenclature. “Retailers can differentiate pork chops by price, and offer grilling cuts that consumers already know how to cook,” says Fleming. The nomenclature was designed to help simplify consumers’ understanding of the various pork cuts, aligning them with their beef counterparts. Making things easier for consumers was one of the motivating factors behind the creation of new items by lamb and veal processor, Catelli Brothers. “We have created many new items over the past few years based on the growth in grilling,” says Tony Catelli, president and CEO of Collingswood, N.J.-based Catelli Brothers. “Today’s consumers want simplicity. Nothing is easier than firing up the grill. People shut down the oven in summer, so we have taken some oven items, like whole lamb legs, and made them into smaller boneless seasoned cuts that are quick to prepare on the grill.” Grill-lennials The popularity for grilling is showing no signs of waning and there are more ways to grill—charcoal, gas, infrared, electric, smokers—than ever before. Toss in the multitude of options to flavor food on the grill, from spices, rubs and seasonings to sauces and marinades, and consumers’ options are endless. “According to a 2015 Mintel study, smoked flavor is increasing in popularity, as are hotter seasoning and spices made with chipotles or chilies,” says Michael Martin, director of communications for beef, pork and turkey at Cargill, based in Wichita, Kan. “Offering meats that allow shoppers to experience these bold flavors is one way stores can stay ahead of consumer trends.” More often than not, leaders of the “bold flavor” movement are Millennials. According to research conducted by the Beef Checkoff, Millennials are more willing to experiment with foods on the grill than other generations. Nearly three-quarters of Millennials use rubs and marinades on steaks to boost their flavor, compared with 57% of Gen X/Boomers. One trend that likely started with Millennials is topping hamburgers with avocado. “Luckily for us avocado tastes really good on top of a burger,” says Tracey Altman, vice president of innovation and insights for Wholly Guacamole, a brand of Saginaw, Texas-based Fresherized Foods. Altman says there has also been a fundamental shift in the traditional backyard barbeque that plays perfectly into promoting products such as guacamole. “Barbequing has really changed over the past five to 10 years,” she says. “It used to be about only what was on the grill. Now a lot of it is about the appetizers and condiments. To us, grilling is about getting everybody together, especially with the Millennials. Today everybody brings something to a barbeque, so it really is a fun event.” One such consumer trend is the penchant for local foods. Martin says Cargill has leveraged this insight to develop a promotion for SpartanNash that pairs everyday beef with local vegetables. “The promotion gives consumers recipes and tips on how to incorporate local produce into their meals. We are providing shoppers healthy meal solutions while also supporting the local economy,” he adds.
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