Meat sales are a weighty matter. Largely priced by the pound, changes in the meat aisle can have a ripple effect on sales and consumer behaviors across the store. With potential protein supply limitations and corresponding shelf-price increases, now more than ever, it’s critical to understand how the meat department drives sales for shoppers' entire baskets.
Pumped Up Protein Prices
During the first half of 2014, rising prices contributed to volume declines in fresh pork and beef in North America, and in recent months, this trend has accelerated with steeper price increases and larger volume declines. On the flipside, chicken has picked up some of the slack and is capturing volume sales. However, prices are expected to continue climbing for beef and pork.
Compared to 2011, staple proteins like beef and pork are now two to three times as sensitive to price increases, while chicken remains relatively stable. According to Nielsen pricing research, price increases for most pork and beef cuts this year have already surpassed the price point at which consumers shy away from purchases. This means we can expect continued volume declines for these fresh meat categories, and potentially for the products commonly found in the same basket (like sauces, pastas and sides), as well as other more surprising products.
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