Pulse Report: Value-Added Meat - Carving Out Growth for CPG Marketers

Consumers' desire for quick and easy mealtime solutionshas value-added meat taking center plate. During the past five years, dollar and volume sales of value-added meat have outpaced the overall meat sector by a fairly sizable margin. In fact, in 2014, value-added meat was responsible for 11 percent of total fresh meat growth, with top-performing retailers enjoying year-over-year growth of more than 14 percent.

Steve Ramsey,
EVP – Protein Practice Leader, IRI

Value-added meat is the perfect solution for a complex problem–what to serve for dinner. Dinner is considered "the most important meal" for busy moms, and the occasion captures 44 percent of food spending. Still, more than 70 percent of moms make day-of-dinner menu decisions. The process is a complex one, with day-to-day family schedules having a major impact on the ultimate menu selected. Ultimately, eight in 10 shoppers will have some sort of list–whether written, mental or electronic–when entering the retail store, making it critical for marketing strategies to begin to impact the shopper very early in the process. Two out of three shoppers acknowledge that their ultimate meat/poultry decision can be influenced by in-store communications, underscoring the importance of continuing to guide shoppers up to the moment of purchase.

High-performing retailers are tuned into the power of value-added meat. These retailers are allocating 30 percent of their meat case to value-added solutions, versus 10 percent within the cases of lower-performing competitors. They are tailoring their assortment based on day of the week, and supporting these efforts with overhead and case signage to educate and attract shoppers. Through these efforts, they're achieving more than twice the sales velocity, ultimately averaging $1.5 million more in annual sales from value-added meat in a given market area.

Value-added meat–fresh meat items in the service meat case or overwrapped meat case that have at least one step of further preparation–is a perimeter stand-out.
Source: IRI Market Advantage™

Top-performing retailers are leveraging value-added meat as a tool to accelerate sales growth, driving real gains in market share that help the total meat department.
Top quartile retailers average $1.5 million more in annual sales from value-added meat than bottom quartile retailers for an average retailer marketing area.
Source: IRI Market Advantage™

Source: IRI Market Advantage™

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