Food Forum: Casing the meat department

Expect chicken prices to decrease while beef and pork prices should remain similar to last year. By Brian Diffenderfer Meat will more frequently be on the menu as shoppers respond to an improving economy and seek convenience and nutrition-packed options in their meal planning decisions. In fact, the latest Power of Meat study presented at Meat Conference 2014 indicated that nearly 50% of shoppers surveyed said they are changing how they shop for meat and poultry based on the economy. Of that group, 36% said they are now spending more in the meat department. Taking an overhead view of what is happening in the meat case, it is significant to note that the cost for beef will remain high in 2015 due to the low number of cattle available. However, the demand for beef will not be as strong in the first half of 2015, so this will help to keep beef prices right where they ended in 2014. Pork production will be stronger in 2015 but do not expect pork prices to drop too much. Most producers are claiming they will be slaughtering smaller hogs in 2015, so pound for pound we will have the same amount of product available and costs for pork commodities will remain about the same. The high demands for poultry will offset the higher production planned for 2015. Poultry consumption will continue to grow in the first half of 2015 and exports will be down. We should have lower poultry prices in the first half of 2015, but of course it all depends on how strong the demand for these products grows. What’s trending To help our retailer and supplier partners successfully respond to future consumer needs and preferences, Daymon Worldwide identifies major global trends impacting both the industry and key categories through the lens of our Global Trendwheel, a proprietary tool that tracks seven consumer megatrends and 54 microtrends. The below meat category trends align with a global megatrend indicated in parentheses, and offer major business building opportunities for retailers ready to curate their offerings accordingly: •Fresh, organic and all-natural (B-WELL): The trend toward organic and all-natural meat will continue in 2015 as consumers look for healthier meal solutions, particularly in the meat department. Health-conscious shoppers are interested in fresh products “free-from” antibiotics, growth hormones and unnecessary ingredients like artificial colors and flavors. Ethics are valued along with quality as consumers seek humanely-raised offerings packaged “intelligently” to preserve freshness and shelf life without compromising the environment. •Value-added (ALWAYS ON and JOYment): As consumers are receptive to new and interesting sensory experiences, meat, fish and poultry manufacturers are responding with unique recipes and flavors. With lifestyles busier than ever, value-added products that offer convenience, including pre-marinated options with easy-to-follow preparation tips and/or serving suggestions are gaining popularity. •Single-serve (CURRENT-CY): In order to capture the single household consumer and respond to the trend toward portion control and price consistency, there is increased demand for single-serve packaging or single-serve multi-packs. •Local/Community (B-WELL and ALWAYS ON): Locally raised, locally sourced or family-farmed proteins resonate with consumers looking to upgrade their culinary experience and support generational, family-based brands. •Premium/Specialty Meats (ALWAYS ON and JOYment): Consumers seek new taste experiences and are more amenable to choosing heritage breeds with unique characteristics and flavors, as well as gourmet fresh beef burgers, such as prime rib, Kobe or Wagyu beef patties. Smaller, “amuse-bouche” portions also allow consumers to treat themselves without over-indulging. By ensuring meat category product offerings align with the key category trends shaping consumer behavior, retailers will ensure they become the go-to source for excellent, convenient options. Investing in proper training for your butcher and meat category team will keep them well-informed and ready to share their knowledge with shoppers, further upgrading the experience and keeping them coming back. Brian Diffenderfer is director of meat & seafood, Daymon Worldwide. He can be contacted at [email protected].