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State of the Industry 2005

Posted on: Thursday, 29 September 2005, 03:01 CDT

By Bardic, Allison

Easier, better... and faster!

America's steadfast fixation with quick, hassle-free foods overwhelmingly dictates meat and poultry processors' product development efforts.

Demand for convenience continues to lead the way, inspiring meat and poultry processors to churn out a wide array of pre-marinated, fully-cooked, ready-to-assemble, hand-held, and hot-to-go products - the easier, the better.

Food trends are influenced by any number of big issues: a rise in ethnic populations, increased awareness of health and well-being, and a heightened emphasis on food safety, to name a few. But consumers' demand for convenience continues to lead the way, inspiring meat and poultry processors to churn out a wide array of pre-marinated, fully-cooked, ready-to-assemble, hand-held, and hot- to-go products - the easier, the better.

"The face of the meat case is changing and being led by an increase in processed, heat-and-serve, and value-added meat," notes Alan Hess, chairman of the beef industry's Joint Retail Committee and a producer from Alma, KS. "As this shift continues, it's imperative we provide our industry partners with insight into these emerging trends in order to help them adapt."

The National Meat Case Study 2004, funded in part by the Cattlemen's Beef Board and managed by the National Cattlemen's Beef Association, the National Pork Board, and Cryovac/Sealed AIR, affirmed that the allocation of meatcase space is shifting, with fresh meat and poultry's share of linear feet decreasing by 6 percent since 2002. Products most benefiting from this shift include processed meats (sausage, ham, and other processed) and heat-and- serve products - both up 2 percent, with ready-to-cook, value-added products, and self-serve seafood up 1 percent.

"With families being on the move, both parents working, and children going to all sorts of activities, it's hard for them to find time for dinner at home," veal packer Michael Mosner notes, adding that the veal industry, traditionally associated with white table-cloth restaurants and Italian-style menus, in recent years has made significant strides in boosting its image with sophisticated marketing efforts and convenient, consumer-friendly products.

Even inherently easy-to-handle products like pre-sliced lunchmeats are getting a leg up convenience. Sara Lee's Hilhhire Farm Ultra-Thin Deli Select line, which pairs "shaved" slice-style whole-muscle lean meats with reusable Gladware containers, recently advanced to new level of user-friendliness by combining ultra-thin meats and cheese together in one package, for example.

But beyond the prerequisite convenience of today's meat and poultry products, trends such as a growing emphasis on nutrition also are gaining momentum. Chicken and turkey processor Foster Farms has initiated a "Get Fit with Foster Farms" program and Web site to highlight low-fat recipes, nutrition information, "get fit" tips, and expert advice, while Pilgrim's Pride this spring combined taste and convenience with wellness in a new product line called EatWellStayHeahhyTM to simplify the process of finding and enjoying healthy poultry products. "As a country, we are exercising more and becoming more aware of what we eat. There is, in fact, a growing body of medical evidence in support of healthy eating's impact on wellness," stresses Bo Pilgrim, chairman and founder of Pilgrim's Pride Corp.

Meanwhile, increased product branding is breathing new life into today's meat cases. Notably, discount retail giant Target Corp. recently launched its case-ready Sutton & Dodge premium steak line at Super Target stores across the United States.

And that's just a taste of what's happening in meat departments across the country. The following category-by-category report further examines these products and countless others to uncover the trends and opportunities driving the meat and poultry industry's product development efforts.

Meat-safety matters

Always a hot-button issue, the safety of the U.S. meat supply lingers under the nation's microscope - but consumers remain confident.

From a BSE-infected Texas cow, persisting border closures, and a major border opening, to intense concerns over food pathogens and their eradication, meat-safety issues continue to challenge the U.S. meat industry and make headlines worldwide.

During the past few months alone, a home-grown U.S. cow tested positive for BSE, the borders between Canada and the United States reopened for exports of Canadian cattle less than 30 months of age, and test results taken from another cow suspected of having BSE were confirmed negative. Meanwhile, other foreign markets, among them Japan, South Korea, Taiwan, and Russia, remain closed since the first U.S. case of mad-cow disease surfaced in Washington state in a Canadian-born Holstein in December 2003.

While news coverage of BSE has been extensive this year, consumers appear confident in the safety of the U.S. beef supply, however. A consumer-tracking survey conducted from June 27 to June 29 found that BSE news coverage has not affected consumer confidence that U.S. beef is safe from BSE.

The independently conducted telephone survey of 927 adults - funded by the Cattlemen's Beef Board (CBB) and managed by the National Cattlemen's Beef Association (NCBA) - found that 92 percent of American consumers are confident U.S. beef is safe from mad-cow disease. Moreover, the level of confidence in U.S. beef safety has remained strong (averaging 91 percent) since the first U.S. case of BSE was announced in 2003.

As far as the USDA is concerned, 89 percent of consumers say the department is doing a good job of protecting U.S. cattle from getting mad-cow disease, while 90 percent say it is doing a good job of protecting the public from exposure to mad-cow disease.

"The beef industry has always known dial it is extremely important to keep our finger on the pulse of the American consumer," says Al Svajgr, a Nebraska cattle producer and chairman of CBB. "But it is especially critical that we understand consumer attitudes and concerns related to BSE. Having tracked this information for many years, the Beef Checkoff Program has substantial, established data that measures consumer concerns and helps the industry to address them effectively and accurately."

Collaborative efforts yield results

Besides issues related to BSE, collaborative efforts throughout the food chain have had a positive impact on food-borne disease. The latest data from the Centers for Disease Control and Prevention (CDC)show important declines in food-borne infections due to bacterial pathogens in 2004. For the first time, cases of E. coli O157 infections are below the national Healthy People 2010 health goal, with the incidence off. coli O157 infections decreasing 42 percent from 1996 to 2004, for example.

Campylobacter infections have decreased 31 percent, Cryptosporidium has dropped 40 percent, and Yersinia has decreased 45 percent. Salmonella infections have dropped 8 percent, but only one of the five most common strains has declined significantly. The incidence of Shigella, which is found in a wide variety of foods, did not change significantly from 1996 through 2004, while Vibrio infections increased 47 percent.

"This report is good news for Americans and underscores the importance of investments in food safety. Our efforts are working, and we're making progress in reducing food-borne illnesses," notes CDC Director Julie Gerberding. "However, food-borne disease is still a significant cause of illness in the United States, and further efforts are needed to sustain and extend these important declines and to improve prevention of food-borne illnesses."

High steaks

U.S. beef processors endeavor to keep up with pressing consumer demands on the meat case, including more variety, convenient products, and case-ready packaging.

Despite headline-making bovine spongiform encephalopathy (BSE) issues and an already tight cattle market, beef demand has not suffered. Consumer demand jumped sharply in 2004, with the Beef Demand Index climbing 7.74 percent compared to 2003 - -- and more man 25 percent since reversing its 20-year decline in 1998, relays the Centennial, CO-based Cattlemen's Beef Board. Moreover, consumers spent more for beef in 2004 than any other time in history, with total consumer expenditures topping $70 billion.

Meat consumption is being aided by favorable dietary trends, with prepared meat, both value-added and heat-and-serve entrees, leading the wav. Increased branding and the continued growth of the case- ready category are also working together to boost the beef market, while protecting it from the adverse effects of commodity-like swings.

Among the biggest news on the retail beef products front is the increased presence of beef value cuts, single-muscle cuts from the undervalued chuck and round. Identified through checkoff-funded research, the value cuts offer easy preparation, greater consistency, and more lean beef product options for consumers.

Randv Irion, director of retail marketing for the National Cattlemen's Beef Association (NCBA), Washington, D.C., points to the Flat Iron Steak as a value cuts success storv. "The Flat Iron is now available in more than 2,500 stores through a wide variety of retailers ," he says. "It hasn't gonechain-wide with a lot of retailers, but we expect that will happen fairly soon."

New to the case-ready category, a line of consumer-ready beef products that tout a shelf life of up to 28 days has been introduced by Greeley, CO-based Swift & Co. The ready-to-cook beef products, complete with their own preparation instructions, include brisket (flat split), back ribs (center cut), flank steak, and chuck shoulder tender (teres major).

Each of the case-ready products is wet-aged and available in choice or select grades. "When evaluating a beef roast or steak, consumers want convenience, a clear view of the product to feel confident they are buying a quality piece of meat, and a clue what to do with it," notes Swift & Co. adding that, "We cut the product to be consumer-ready, which eliminates additional handling and opportunities for contamination."

Annual Beef Forecasts

Branded products on the rise

Working hand in hand with case ready, the beef industry is experiencing increased product branding with some major retailers. Most notably, discount retail giant Minneapolis, MN-based Target Corp. recently launched its Sutton & Dodge premium steak line at SuperTarget stores across the United States. The case-ready line of USDA Choice Angus beef cut into filets, strips, ribeye, T-bone steaks, and roasts is priced from $3.49 to $12.99 per pound. Sutton & Dodge was created by Austin, MN-based Hormel Foods.

Beyond retail growth, foodservice menus are being augmented with new beef options. The beef checkoff this year partnered with Boston Market to introduce new roasted top sirloin meals, for example. The 5- and 8-ounce lean steak entres, a BBQ Sirloin and Cheddar deli- sliced carver sandwich and a Sirloin Dip carver sandwich, have been introduced at 630 locations across the United States.

The entres mark a breakthrough in the fast-casual segment of the restaurant industry and are intended to appeal to customers both in terms of taste and nutrition. "We are confident this will be another successful foodservice partnership, and these partnerships have proven to be a great way to promote beef with a small investment of checkoff dollars," notes Sid Sumner, a Florida cattle producer and chair of the beef industry's Joint Foodservice Committee.

Mealtime blahs? Try pork!

Innovative pork products spice up consumers' tables.

There's never a dull moment in the pork industry - just ask executives at the National Pork Board (NPB), Des Moines, IA.

"Don't be blah.(TM)," NPB's new national marketing campaign, targets busy urban women -- many with children under 17 at home - who, relays 2004 NPB research, "aspire to be better cooks, but lack inspiration and confidence." Launched in February, 2005, the campaign is already yielding positive results in test markets in Atlanta, Chicago, Dallas, Denver, Philadelphia, and Sacramento.

"Pork. The Other White Meat, which repositioned the meat as a healthy protein source, has become synonymous with pork in the seventeen years since it was introduced," says Steve Murphy, chief executive officer of NPB. "Don't be blah. is our new rallying cry for pork. It's the ultimate solution for dinner decisionmakers to escape their recipe rut."

As consumer awareness of pork as an everyday meal alternative grows, picks for NPB's fourth annual Consumer's Choice Pork Awards suggest that convenience, versatility, and flavor appeal top consumer demands for new pork products.

Winners of the 2005 contest include Johnsonville Heat and Serve Mild Italian Sausage, Iowa Quality Meats Prime Rib Roast, Tyson Vegetables and Pork Roast Butt, Hormel Southwestern Pork Carnitas, and Hormel Pork Chops and Gravy. Each received the Golden Fork trophy and earned the right to use the official Consumer's Choice Pork Awards winner's seal in merchandising efforts.

"This Checkoff-funded contest recognizes the most innovative new pork products through an open nominations process, with consumers judging the winning products," explains Steve Schmeichel, a pork producer from Hurley, SD, and chairman of NPB's Demand Enhancement Committee. "The winning products fit will into people's lifestyles, adding variety and great taste. This year's entries really exemplify the industry's effort to provide products with the consumer in mind. The nominations mirror today's food trends, with a desire for convenience, unique flavors, and quality products."

New to the Consumer's Choice Awards was the Esteemed Trendsetters Awards, whose winners exhibited unique and innovative approaches to product development. The 2005 Esteemed Trendsetter Award winners are Spa Cuisine from Lean Cuisine Pork with Cherry Sauce, Iowa Quality Meats Fully Cooked Pork Drummies, and Farmland Nutrition Wise Fresh Pack "This new honor - the esteemed Trendsetters Awards allows for additional recognition for innovative products and their contribution to the industry," says Schmeichel.

Annual Pork Forecasts

Made with 100-percent fiber-filled whole grains, the Spa Cuisine Trendsetters Award winner was one of a new line of products inspired by chefs from wellness spas across the country, for example. Found in the freezer and ready in minutes, Spa Cuisine entres contain fewer than 300 calories, 8 grams or less of fat, and provide 100- percent whole grain rice or pasta in every meal.

"The just-released food guidelines [released by the USDA in January] encourage half of your servings of grains to come from whole grains. Spa Cuisine is an easy way for women to include more whole grains in their diet," says Brett White, director of marketing for Lean Cuisine.

In addition to product and promotion accomplishments, NPB's Murphy also noted that U.S. pork exports continue to be a huge success story for pork producers. "Exports grew by twenty-seven percent in 2004 and are on pace in 2005 to eclipse that growth," he says. "Net pork exports for January through March 2005 were 2.7 percent higher than the same period one year ago and are responsible for an estimated 14 percent increase in live hog prices for the first quarter of 2005."

Fitness first

Processors urge consumers to eat more chicken as part of a healthy lifestyle.

While convenience and versatility continue to characterize the chicken industry's latest product offerings, processors also are rising to the challenge of providing consumers with nutritious meal solutions and important information about chicken's role in a healthy-eating plan.

"As a country, we are exercising more and becoming more aware of what we eat. There is, in fact, a growing body of medical evidence in support of healthy eating's impact on wellness," stresses Bo Pilgrim, chairman and founder of Pilgrim's Pride Corp., Pittsburg, TX. "In short, consumers want healthy foods but are unwilling to trade off convenience or taste to get it."

Pilgrim's Pride this spring combined taste and convenience with wellness in a new product line called EatWellStayHealtty(TM) to simplify the process of finding and enjoying healthy poultry products.

"This product line also may well be establishing a higher standard for the poultry industry," Pilgrim adds. "Other poultry companies carry the American Heart Association [AHA] seal of approval on their packages, but we have not seen any who claim the USDA-regulated word, 'healthy,' on its package. The nutritional requirements - specifically in the areas of fat, cholesterol, and sodium - for the USDA-regulated word 'healthy' exceed those used by the AHA, and this line of products has been formulated to reach this higher bar."

All EatWellStayHealtty(TM) products prominently display the AHA's mark of approval on their packages, including fresh, uncooked whole chicken breasts, specially trimmed to be 99 free; fresh, uncooked split chicken breasts, specially trimmed to be 99 percent fat-free; fresh, uncooked breast tenderloins; frozen fully-cooked grilled chicken breast strips; frozen fully-cooked grilled chicken breast fillets; frozen fully-cooked Szechwan chicken breast tenderloins; frozen fully-cooked Italian-style grilled chicken breast fillets; and frozen fully-cooked key lime flavor chicken breast fillets.

New Foster Farms program

Livingston, CA-based Foster Farms, meanwhile, has initiated a "Get Fit with Foster Farms" program and Web site (www.getfitwithfosterfarms.com) to high-light low-fat recipes, nutrition information, "get fit" tips, and expert advice. Registered users will receive a free "Get Fit Kit" in the mail that contains recipe cards, coupons, and a Foster Farms calorie counter, while a registered dietician is on tap to answer health-related questions on topics ranging from the food pyramid to children's nutrition.

Annual Broiler Forecasts

Targeting the youth sector, St. Cloud, MN-based Gold'n Plump Poultry this spring visited schools across Minnesota with its mascot Cooper as part of the "Raised to be Gold'n" School Tour, a fun and interactive pep-fest for health aimed at teaching kids K-6 how to lead healthy, active lives. The program was free to schools and featured original songs, music, dances, and activities -all designed to promote healthy eating, exercise, and community action.

Among other tour features, participating schools received free products such as Gold'n Plump Lil' Chicks healthy chicken nuggets and low-fat skim milk from Cass clay, which they could serve for lunch the day of the show.

"Obesity is a nationwide health issue of crises proportions ... Eating habits and activity levels are determined early in life, and as a Minnesota-based food company, we think it's our responsibility to teach kids to make healthy choices that will benefit them throughout their lives," explains Susan Worwa, school tour director for Gold'n Plump. "Chicken is a healthy, lowfat protein choice and an important part of a heal thy diet."

Something to gobble about

Turkey counters its image as a food reserved for Thanksgiving dinner and deli sandwiches with consumer-friendly new products.

One of the tu\rkey industry's greatest, most enduring challenges is to increase consumer demand and broaden consumption beyond holiday meals and deli sandwiches. Essential to this effort is the development of convenient, consumer-friendly retail products.

"You are seeing more and more convenient turkey products in the meat case," notes Sherrie Rosenblatt, senior director of marketing and communications for the National Turkey Federation (NTF). "These products are packaged in a form that makes it easier for the consumer to get dinner on the table."

Category leader Jennie-O Turkey Store, a Willmar, MN-based subsidiary of Hormel Foods, in 2004 notably introduced its Oven Ready line of fresh-frozen turkev that goes directly from the freezer to the oven without requiring thawing, cleaning, or seasoning. Available in either whole or half-bird sizes, Oven Ready products are packaged in FOOL-PROOF(TM) cooking bags, the neck and giblets already have been removed, and the turkey is pre-seasoned in either Home Style or Butter, Garlic and Herb varieties.

Consumers must only pre-heat their ovens, remove the Oven Ready turkey from its outer package (leaving it in its cooking bag) and place it in a roasting pan. A built-in pop-up timer indicates that the turkey is done.

Competition heats up

Jennie-O is not alone in its efforts to drive additional convenience into the turkey category. Among others, Mt. Olive, NC- based Carolina Turkeys, a joint venture between Smithfield Foods and family-owned Goldsboro Milling Company, offers precooked turkey meatballs, turkey mignons in bacon wrapped, roasted garlic, and barbecue varieties, and Roast-In-Its-Own-Bag turkey breasts.

Omaha, NE-based ConAgra Foods' Butterball brand, meanwhile, offers such varieties as fully-cooked whole turkey, frozen stuffed turkey and bone-in breast, fresh turkey cuts such as filets and tenderloins, ground turkey, and fresh and frozen lean turkey burgers.

Annual Turkey Forecasts

Butterball most recently introduced Oven Roasted Turkey Strips, tender cuts of premium, fully-cooked, and ready-to-serve turkey. Also available in a number of chicken varieties, the strips are delivered in a "freshness container" that ensures that they stay fresh and is also dishwasher safe for use another day. The strips are recommended to serve over a green salad or to complement pasta, wraps, or fajita meals.

Encouraging the foodservice's efforts to bring more turkey to the table, NTF this year launched a new interactive series called "Turkey Trendsetters" that highlights exceptional foodservice operators who exemplify leadership and creativity with turkey on their menus. Trendsetters provide insight from preparation techniques to turkey's success as a vital ingredient. They also offer skills and knowledge on nutrition, food costs, flavor profiles, and recipes of featured menu items.

"This initiative showcases the multi-talents of foodservice operators across the country and their top-notch turkey recommendations," explains Rosenblatt, adding diat every three months a new "Turkey Trendsetter" is announced and viewed on EatTurkey.com, NTF's Web site.

New foodservice operator research reveals that 57 percent of the foodservice operators include turkey on their menu, and more than one-third of the operators who aren't serving turkey plan to include it within the year. "The turkey industry continues to provide turkey products, such as fully-cooked turkey breasts and deli products to make it easier for restaurants to provide healthy, tasty menu options for their customers," adds Rosenblatt.

High hopes for veal and lamb

Veal and lamb get a boost from heightened efforts to increase consumer awareness.

Once associated with only high-end fare, veal and lamb are overhauling their images and strengthening their presence to attract a broader range of consumers. The veal industry this spring announced a major goal of expanding veal's availability in casual- dining restaurants, for example.

Veal consumption is currently weighted heavily toward an older demographic, and the industry is aggressively seeking ways to appeal to younger consumers. One of the challenges in achieving this goal is to make sure veal is on the menu at more casual-dining restaurants, affirms Michael Mosner, a veal packer from the Bronx, NY, and chairman of the joint veal committee of the National Cattlemen's Beef Association (NCBA).

"With families being on the move, both parents working, and children going to all sorts of activities, it's hard for them to find time for dinner at home," Mosner continues. "And the casual- dining restaurant is the venue where most young families are going."

Mosner notes that the veal industry is experiencing high prices for dairy calves, feed, and other operating costs, making it even more critical for the industry to expand exposure and consumer demand for veal. As part of the industry's efforts, checkoff-funded programs will promote veal to casual-theme restaurants by working with celebrity chefs to develop recipes.

For its part, the American Lamb Board (ALB) in December 2004 launched a new television advertising campaign, "American Lamb. From American Land," to communicate the message that American lamb is simple to prepare, pure, high-quality protein that is distinct from imported lamb. Aired on the TV Food Network, the commercial is said to "convey the pride and stewardship of American lamb producers and tie domestic lamb back to the heritage of America," notes Spence Rule, chairman of the ALB.

Texas A&M University also this year released promising news from its economic study, "Is the Return Greater than the Investment for the American Lamb Industry?" The study's findings indicate that ALB's promotional efforts have successfully increased demand for lamb. During the time in which the lamb check-off has promoted American lamb (2002-2004), about 10 additional pounds of lamb per dollar spent were consumed, translating into $50 additional dollars in lamb sales.

Annual Lamb and Mutton Forecasts

New consumer-friendly products

Augmenting the veal and lamb industry's promotional efforts are a number of convenient, consumer-friendly product introductions. Mountain States Rosen (MSR), Bronx, NY, and Greeley, CO, for example, recently introduced its line of Cedar Springs microwaveable pre-cooked lamb and veal products. The innovative new products include lamb meatballs, veal patties, lamb and veal sausage, and baby-back lamb ribs - cooked or raw. The packaping includes cooking information and references the company's Web site, www.usalamb.com, which contains lamb recipes and other information. Each Cedar Springs product taste profile was developed internally and fine- tuned through feedback from chefs, MSR's growers, and internal tastings.

Meanwhile, South Holland, IL-based Brown Packing Company's new, all-natural Dutch Valley Veal Hot (Spicy) Veal Italian Sausage, Traditional Hearty Veal Bratwurst, Savory Sun-Dried Tomato Veal Sausage, and Classic Veal Italian Sausage - each packaged in its own one-pound retail-ready film-overlam tray - capitalizes on consumers' love of sausage products.

Bellies up

Bacon category growth continues, thanks to the popularity of fully-cooked bacon products, high-protein diets, and an increased presence on foodservice menus.

From microwave-ready and fully-cooked varieties, to flavorful, fresh alternatives, bacon's popularity continues to grow. Retail refrigerated bacon sales for the year ending May 15, 2005, increased 1.3 percent over the year prior, topping off at more than $2.12 billion. And that doesn't include precooked bacon, an increasingly profitable category for bacon processors.

Brand leader Oscar Mayer Foods, a Madison, WI-based division of Kraft Foods Inc., recently augmented its Ready to Serve Bacon with Canadian Style Bacon, a heat-and-serve product packaged in a patented recloseable pouch, for example. The Canadian Style Bacon, which has 60 calories for every three-slice serving and can be prepared in less than 60 seconds in the microwave, is endorsed by the South Beach Diet.

"Since we lead such busy lives, many of us forgo our favorite breakfast foods in order to get our days jump-started," explains Joe Fragnito, brand manager for Oscar Mayer. "Since we do all the cooking for these tasty, new ready-to-serve meats [a new pork sausage patty variety also was launched], people can once again enjoy a fast and convenient breakfast any day they choose."

For its part, Swift & Co., Greeley, CO, also has unveiled a new line of fresh and fully-cooked breakfast meats, including Swift Premium Fully Cooked Pork Bacon Strips in either original or maple flavor. The strips do not require refrigeration before opening, offering retailers increased merchandising options. "Bacon and sausage are only as good as the stuff they're made from," notes Bill McClellan, vice president of customer development for Swift & Co. "Our bacon is made using the freshest, highest quality pork for indulgent bacon flavor."

Foodservice bacon sizzles

Promoting its bacon to foodservice operators, Springdale, AR- based Tyson Foods recently made available a new brochure entitled "99 Ways to Bacon It Better," offering easy ways to enhance menus with Tyson bacon. From salads and sandwiches to Italian entres and pizzas, the brochure offers ideas that add great flavor and upselling opportunities across all menu parts.

Dick Bond, president and chief operating officer for Tyson Foods, applauded his company for its efforts in product development, also pointing to the importance of its bacon business at the company's 2005 annual meeting of shareholders. "In addition to our existing business, we are also very proud of the successful product launches and category growth in both bacon and ingredient meat," he said. "In bacon, we exceeded our one-year in store availability goal of fifty percent on Tyson-branded bacon both offering a ready-to-cook and fully-cooked bacon product."

Top 10 Re\frigerated Bacon Brands*

Bond also has observed that the company's Tyson brand has become the No. 2 fully-cooked bacon brand across the country. That's not to say the company has neglected its fresh bacon business, however. Most recently, Tyson Foods introduced Tyson Ready to Cook Hickory Bacon.

Austin, MN-based Hormel Foods' consumer-friendly fully-cooked bacon packaging, meanwhile, features recloseable zippers and preprinted film that provides essential product information. Hormel recently extended its bacon toppings line with Hormel Premium Real Crumbled Bacon, formulated with 100-percent real bacon and packaged in a resealable pouch, rather than a traditional canister. The company's extensive bacon offerings range from smoked, center cut, lower sodium, and maple bacon, to fully-cooked, thick slice, microwave-ready, peppered, and sugar cure varieties.

breakfast sausage and breakfast entres

Hot breakfast boom

The refrigerated and frozen food aisles are heating up with new breakfast sausages and entres characterized by innovation and on- the-go convenience.

For those consumers content to get away with a quick bowl of cereal or a cup of coffee in the morning - or skip breakfast altogether - breakfast food manufacturers are offering a lineup of fast-and-easy alternatives.

Cincinnati, OH-based Sara Lee Foods' Jimmy Dean division, traditionally known for its breakfast sausages, most recently began distribution of Breakfast Skillets, partially prepared meal solutions consisting of diced potatoes, chopped onions and peppers, and precooked ham or sausage (consumers need only add eggs), for a "perfect weekend breakfast any day of the week" in just 10 minutes. The national rollout is slated for this fall.

Jimmy Dean also introduced a new line of omelets and wraps in 2004 that takes only two minutes to prepare. "Our 'Breakfast in America' study shows that nearly half of all Americans don't have enough time to prepare and enjoy their favorite breakfast foods," says Rick Moritz, director of Jimmy Dean new product marketing. "To help, we've created two delicious new products that will allow everyone to enjoy a hot, homemade breakfast in under two minutes."

The Jimmy Dean omelet is available in three varieties including ham and cheese; three cheese (cheddar, Monterey jack, and Swiss); and Western style (ham, red and green onions, and cheese). Offering quick preparation time and hand-held convenience, Jimmy Dean breakfast wraps require less than two minutes to heat in the microwave and are available in sausage, egg and cheese, and ham, egg and cheese varieties.

Ready-to-serve pork sausage

Adding to the fully-cooked phenomenon, Oscar Mayer Foods, a Madison, WI-based division of Kraft Foods, this spring rolled out Oscar Mayer ready-to-serve pork sausage patties, which can be prepared in less than 60 seconds in the microwave. "Conveniently packaged in a recloseable zip package that not only seals in freshness, but also makes storing a snap, it's easy to make a single serving of ready-to-serve meats or enough to feed the entire family," the company notes.

Top 10 Refrigerated Breakfast Entre Brands*

Each package of Oscar Mayer's ready-to-serve pork sausage patties has 10 patties, and each patty serving contains 90 calories and one gram of carbohydrates.

Similarly, Greeley, CO-based Swift & Co. has introduced new fully- cooked Swift Premium pork sausage. An 8-ounce resealable standup pouch holds 10 links in either original or country flavor varieties, while fully-cooked Swift Premium pork sausage patties are delivered in 9-ounch pouches in original or country varieties.

For home cooks, Swift & Co. also offers new Swift Premium pork sausage in both country and original flavors in 16-ounce chubs, as well as fresh links in 12-ounce packages.

A notable addition to the all-natural market, Chelsea, MA-based Kayem Foods in April debuted its new line of fully-cooked, all- natural gourmet breakfast sausages made with lean, skinless chicken meat. Available in two varieties - apple maple, made with pure Vermont maple syrup and fresh apples, and mango honey, made with fresh mangos and sweet honey - al fresco breakfast chicken sausages contain no nitrates, artificial flavors, or preservatives.

refrigerated sliced lunchmeat

Sandwich makers

No numbers please! The always-popular sliced lunchmeat category is distinguished by an endless variety of ultra-thin, deli-quality products in convenient packages.

Innovation without the wait is the name of the game in the prepackaged lunchmeat category. New products and packaging developments are driving growth in this huge segment, whose U.S. retail sales topped $3.14 billion for the 52 weeks ending May 15, 2005, up 2.6 percent from the year prior, relays Chicago's Information Resources Inc. Oscar Mayer led the way with $833.6 million in sales, followed by private label's $450.6 million, and Hilhhire Farm Deli Select's $261.9 million.

Sara Lee's Hillshire Farm Deli Select line, which pairs "shaved" slice-style whole-muscle lean meats with reusable Gladware containers that allow the lunchmeat to rest naturally in the package, recentlv advanced to new level of convenience by combining ultra-thin meats and cheese together in one package. Also featuring Gladware containers, the Hillshire Farm Deli Select Combos are available in five varieties including brown sugar baked ham with American cheese, oven roasted turkey breast and smoked provolone cheese, hickory smoked turkey breast with pepper jack cheese, smoked ham with baby Swiss cheese, and roast beef with mild cheddar cheese.

"For sandwich-making convenience, Hillshire Farm Deli Select Combos combine ultra-thin meats and cheeses in one convenient package. Five flavorful varieties mean everyone can find their favorite flavor combination," Hillshire Farm's Web site notes.

Category leader Oscar Mayer Foods, a Madison, WI-based division of Kraft Foods, meanwhile, recently added a new flavor, Slow Roasted Roast Beef, to its Oscar Mayer Deli Style Shaved Luncheon Meats lineup. Packaged in convenient, resealable trays, the products are said to offer the "light, fresh taste of the deli without the wait."

Today's consumers are willing to pay for the convenience of a recloseable package, observes Chad Baker, assistant vice president sales, packaged meats, for Smithfield Inc., Smithfield, VA. Smithfield in February rolled out four varieties of deli-thin ham and turkey in the company's resealable Sandwich Keepers containers. "Consumer demand for premium ham and turkey products in plastic containers is undeniable," he adds. "The days of cutting open a package, making a sandwich, and placing unused product in a plastic resealable bag that you pulled out of the pantry are gone."

Top 10 Refrigerated Sliced Lunchmeat Brands*

Baker notes that Smithfield's Sandwich Keepers can be used as traveling lunchboxes after the meat is used. "Our container was engineered to carry a sandwich to work or school," he says.

Omaha, NE-based ConAgra Foods last year introduced a new line of Healthy Choice Deluxe Thin-Sliced lunchmeats, and as recently as May unveiled Butterball Extra Thin Sliced turkey in Ziploc packaging. The Healthy Choice products feature a 10-ounce resealable, reusable container (a pair of 5-ounce pouches are located within each container to guarantee extra freshness).

Some meat processors also arc experimenting with portioned product in the deli. Lansing, IL-based Land O'Frost Inc., maker of 2.5-ounce Deli Style Thin Sliced Meats, DeliShaved Meats, and regionally-inspired Taste Escapes, recently introduced Chicago Sub Co. Snap-Apart Fresh Packs in honey ham and smoked ham varieties. The product is sold in a four-pack of snap-apart tubs, each perfect for one sandwich.

refrigerated heat and eat entres

Quick fixes

Consumers' lack of time and the inclination to cook at home has processors dishing up a variety of new heat-and-eat entres.

The market for easy-to-prepare, value-added meat and poultry entres continues to flourish, with processors developing a flood of new products for the time-starved consumer. Chicago-based Information Resources' most recent data for refrigerated dinners/ entres place the market at more than $690 million in U.S. retail sales, up 2.9 percent over the previous year.

Morton Grove, IL-based Smithfield RMH Foods Group's Flavor brand of heat-and-serve entres, uniquely featuring bold, enticing flavors from around the world, was among the most talked about new introductions of 2004. The chef-inspired product varieties, including Beef Burgundy, Chicken Alfredo, Island Grill Chicken, Italian Stvle Meatloaf, Marinara with Meatballs, Mexicana Style Pork, Southwestern Style Meatloaf, andYankee Pot Roast, combine protein and sauces in one bag, a starch side in another bag, and a separate garnish pouch.

Flavor packaging offers multiple preparation methods, as well as wine and side dish recommendations. "It isn't just the food, it's the experience," notes Kim Barden, retail brand manager for Smithfield Foods. "We're not just selling beef and sauce, we are trying to revolutionize how consumers perceive the [heat-and-eat entre] category."

Heating up the frozen entre category, Omaha, NE-based ConAgra Foods recently rolled out Banquet Crock-Pot Classics, the first complete meal designed and created for Crock-Pot slow-cooking. The meals contain all of the ingredients needed lor a slow-cooked meal such as tender meats, fresh vegetables, hearty potatoes, and seasoned sauces, and are ready to cook with less than five minutes of preparation.

"[Consumers] don't have to worry about what's for dinner at the end of the day when they are using their Crock-Pot," explains John Hanson, vice president of marketing for Banquet. Varieties include Beef Stew, Chicken and Dumplings, Chicken with Redskin Potatoes and Vegetables, Creamy Chicken Pasta, Herb Chicken and Rice, and Stroganoff with Beef and Noodles.

prepared deli foods

Carryou\t craze

One of the fastest-growing segments at retail, the service deli distinguishes itself by its assortment of prepared foods.

Once largely limited to cold cuts, fried chicken, and premade salads, supermarket delis have widely expanded their offerings, competing directly with other foodservice operators, as well as frozen foods, ready-to-cook meats, and refrigerated, prepared entres sold in other areas of the store. The Madison, WI-based International Dairy Deli Bakery Association's (IDDBA) "What's in Store 2005" report places service deli sales at $14.35 billion in 2003, up from $14 billion in 2002. What's more, IDDBA's 2004 "Consumers in the Deli" report finds that 23 percent of consumers purchase meals to eat at home (that are not prepared at home) from a supermarket deli. Twenty-seven percent of surveyed consumers say they visited the supermarket for takeout food in 2004 - a sharp increase from 19 percent in 2003. "The deli operator's higgest challenge for sales growth is to successfully stem the loss of business to foodservice, including quick-service restaurants, casual dining establishments, and even white tablecloth restaurants ,"notes Karen Stewart, vice president of prepared foods forWichita, KS- based Cargill Meat Solutions. "Even fast-food hamburger joints are starting to offer lines of sandwiches that are marketed as being lower in fat, healthier, and fresher."

To compete with a thriving foodservice industry, retailers around the country are taking steps to expand their prepared foods offerings. "Prepared loods is ... definitely one of our most rapidly growing categories and in our big new stores, the 50,000 [square foot] plus stores that we're developing right now and opening, prepared foods get a much bigger percentage of square footage," says John Mackey, chairman and chief executive officer of Austin, TX- based Whole Foods Market, Austin, TX, whose prepared foods departments offer, among other items, everchanging varieties of quick entres, side dishes, soups, rotisserie grilled items, sushi, and sandwiches - all made with natural ingredients.

meat snacks

Something to chew on

Aggressive product development, innovative packaging, and sophisticated marketing efforts fuel a strong meat snack category.

There's nothing "dry" or ordinary about the meat snack category. From oldstyle, traditional beef jerky to lean, moist snacks - the industry is faring well with new products inspired by consumer demand For convenience, freshness, and flavor innovation.

Chicago-based Information Resources places the meat snack category at $309.1 million, up 4.3 percent from the year prior, with category leader Oh Boy! Oberto ringing in sales of $68.6 million, followed by Slim Jim with $51.5 million in sales, and Jack Link's $46.4 million.

Family-owned Oberto Sausage Co., Kent, WA, most recently dipped into new territory with the introduction of Oh Boy! Oberto Beef Jerky Crisps, crunchy oven-roasted snacks made with seasoned, lean beef. The first-of-its-kind snack - available in Original, Smokey BBQ, and Sweet Mesquite varieties, is designed to bridge the gap between beef jerky and traditional snack chips. Fittingly, they are distributed by snack giant Frito-Lay.

Rolled out nationally this month with lull distribution slated for September, the Beef Jerky Crisps mark the first entry of meat snacks into the larger, broader snack chip category. "This easy-to- eat snack provides a new way for people to enjoy the great taste of lean beef snacks, from serving them in a bowl at a party, to eating them with a variety of dips," explains Tom Campanile, president of Oberto Sausage Company.

The 2.2-ounce packages of Beef Jerky Crisps are high in protein with 13 grams of protein per 1-ounce serving and zero grams trans fat.

Year of the canister

Another notable trend in meat snack category is the move toward offering snacks in canisters with roomy interiors, adding convenience and freshness. Farmington, Hills, Mi-based Pioneer Snacks, for example, started offering five of its flavors in 4.9- ounce "Road Ready" canisters, winning an award for packaging design at the National Association of Convenience Stores show last fall. Smoked Sausage, Teriyaki, Fired Up, Jalapeno, and Hunter Sausage varieties are available in the new resealable "bulk" cans, which are designed for on the go and fit into a car's cup holder, a sports bag, or a backpack.

Top 10 Meat Snack Brands*

Omaha, NE-based ConAgra Foods recently introduced Pepperoni- flavored Slim Jims in single 13-inch sticks or 4-inch sticks in a 15- count canister. "We've been able to take that stick into a canister form [which the company now uses for multiple flavors], which has really opened the opportunity for us to get into other channels beyond C-stores," notes Ann Mamer Lloyd, director of marketing, meat snacks. "We've now put sticks into canisters that moms can buy to bring into their household for snacking at all times of the day."

Goodyear, AZ-based Poore Brothers, meanwhile, in May broke new ground of its own with a line of T.G.I. Friday's brand meat snacks - the first restaurant-brand snacks of its kind. "Retailer interest in these items has been very positive and we are excited about the introduction of these meat snack items," says Thomas Freeze, president and chief executive officer of Poore Brothers. "The T.G.I. Friday's brand is recognized nationally and consumers associate their menu with high-quality and flavorful meat entrees. T.G.I. Friday's meat snack products will be the first restaurant brand in the category."

hot dogs

Red-hot marketing

A relished market, the hot-dog category is marked by sophisticated promotional efforts and countless product varieties.

Hot diggity! Americans consume 20 billion frankfurters a year, dogging 2 billion in July alone, according to Washington, D.C.'s National Hot Dog and Sausage Council, an arm of the American Meat Institute.

In the retail hot dog market, where total U.S. sales of refrigerated frankfurters increased 0.6 percent to more than $1.6 billion for the year ending May 1 5, 2005, Kraft Foods' Oscar Mayer brand led the pack with more than $308 million in sales, followed by Sara Lee Foods' Ball Park franks, with sales of about $251 million, and Bar-S's more than $119 million.

Among notable product introductions in 2004 was Ball Park's new line of GrillMasters in Deli Style Beef, Hot 'n Spicy, Smokehouse, and Hearty Beef flavors. Forty percent larger than the average hot dog, GrillMasters were designed specifically for the grill. "We know that there are adults out mere looking for more from their hot dog," says Deborah Sabo, director of marketing for Ball Park. "With the Ball Park GrillMaster frank, we maximized everything that's important in a hot dog eating experience - size, flavor, and meatiness - and developed the ultimate hot dog for grilling."

To support GrillMasters in 2005, Ball Park planned to give away an estimated 2.5 million free Ball Park GrillMaster franks as part of its Free Frank Friday national promotion. Every consumer who bought a package of GrillMasters on Friday, May 27, was eligible to receive a full refund of the purchase price by sending in a rebate form and proof of purchase.

A segment of the hot dog category to watch is the natural and organic market. Among other inroads, Petco Park home of the San Diego Padres, and Busch Stadium, home of the St. Louis Cardinals, reportedly plan to test sales of organic hotdogs and bratwurst next season.

The kosher market, meanwhile, has added Abeles & Heymann Gourmet Kosher Provisions' 16-ounce kosher bison hot dogs to its offerings. The company touts bison as a low-fat, low-cholesterol, yet high- protein alternative to beef.

Omaha, NE-based ConAgra Foods' Hebren National, one of the country's most recognized kosher deli brands, is celebrating its 100- year anniversary in 2005 with a new marketing campaign and increased production in its kosher facility in Quincy, MI. The Hebrew National campaign, a relaunch of its successful "NeverTasted" advertising campaign, was launched during May's Food Marketing Institute show, where Chicago Cubs legend Ernie Banks signed baseballs, and mobile hot dog stations distributed free Hebrew National hot dogs on the show floor.

Top 10 Refrigerated Frankfurter Brands*

ConAgra's Armour brand of hot dogs - among other ConAgra brands - in January announced a major sponsorship deal with Six Flags Inc., the world's largest regional theme park company, to become a national food sponsor for its 28 U.S. parks. The sponsorship will allow Armour to expand its foodservice presence at the parks, while gaining category exclusivity and promotional rights both in and out- of-park.

Kraft Foods' Oscar Mayer brand, meanwhile, in May launched the Win die Ride of Your Life! Contest, giving people the chance to win the use of the Wienermobile for a day and up to $5,000.

And in a creative development, two Chicago companies - Vienna Sausage Mfg. Co. and Alpha Baking Co., home of S. Rosen buns have pledged to package their hot dogs and buns in corresponding numbers - the number eight. Vienna also won a major deal with Target Corp. this year in which the giant discount chain will sell the Chicago- style hot dog at its 1,350 store food courts, and 1,000 stores that sell groceries will carry the brand.

dinner sausage

Stress-free sausage

Flavor and packaging innovations heat up the dinner sausage category.

From Polish sausage and kiclbasa to smoked sausage and bratwurst, the dinner sausage segment continues to entice consumers. Chicago- based Information Resources' most recent data place the U.S. retail dinner sausage category at $1.58 billion in sales, up 3.1 percent from the year prior. Sara Lee's Hillshire Farm brand is the category leader with $276.5 million in sales, followed by Johnsonville's $239.8 million, and private-label dinner sausage's $117.6 million.

Today's dinner sausage category is marked by processors' efforts to sat\isfy time-crunched families seeking convenience in meal preparation, with both large and small players notably infusing their products with interesting flavor profiles.

As the leading supplier of kosher poultry products, Mifflintown, PA-based Empire Kosher Poultry recently introduced a line of breast meat gourmet chicken sausages in sun-dried tomato basil, mushroom garlic, and sweet apple and cinnamon varieties.

Robert Van Naarden, chief executive officer of Empire Kosher, says the products are designed to "enhance the eating experience," adding that "Empire is pleased to provide its kosher consumers with value-added, quality products designed to meet the needs of today's busy households."

Meanwhile, Aidells Sausage Co., a San Leandro, CA-based firm known for creating unique sausage flavors and varieties, is oftering its Cajun Style Andouille in a poultry-based mini version that is not only smaller in size, but lower in fat and calories than its pork counterpart. Aidells' product lineup exemplifies the endless flavor possibilities in the sausage category, including such varieties as artichoke and garlic, Cuban with black bean, sun-dried tomato, habanero and green chile, chicken and apple, pesto, portobello mushroom, andouille, and roasted red pepper with corn.

Innovative offerings

Appealing to consumer desires for adventurous new flavors as well as the growing organic, all-natural market, regional sausage producer Bilinsld Sausage Manufacturing Co., Cohoes, NY, has rolled out certified organic chicken sausage in sweet Italian, spinach and garlic, and apple-mango varieties.

Top 10 Dinner Sausage Brands*

Another fully-cooked introduction, Richardson, TX-based Owens Country Sausage, a subsidiary of Bob Evans Farms, in January added two new flavors to its line of dinner sausage - Owens Smoked Sausage with Cheese and Owens Smoked Sausage with Cheese & Jalapeno. The refrigerated and fully-cooked products are available in 14-ounce packages that were redesigned to peak consumer interest.

"Owens Smoked Sausage with Cheese is made from our special recipe with a great cheddar cheese flavor, and the jalapeno version just adds a hint of hot and spicy flavor," observes Mike Townsley, president and chief operating officer of Owens Country Sausage. "Owens has spiced up the packaging too with a colorful new look."

Owen parent Bob Evans has ventured into the sausage-based meal solutions sector with Boh Evans Sausage Chili with Beans. Packaged with two 12-ounce stay-fresh pouches in each box, the refrigerated sausage chili is marketed as an "anytime meal." In addition to being microwaveable, the chili may be cooked inside its pouch in boiling water.

Copyright Stagnito Publishing Aug 2005

Source: National Provisioner

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