Washington, D.C. The fifth edition of the Power of Meat, a joint study by the
American Meat Institute and the Food Marketing Institute, finds that the
recession is continuing to impact food purchasing and consumption behavior,
including the meat department.
While meat consumption measured in tonnage was up significantly in 2009, the
dollars are lagging behind as shoppers opt for cheaper cuts and prices dropped
in 2009. Forty percent of shoppers say they have changed the way they purchase
meat and poultry compared to before the recession, down from 51 percent in 2009.
This is also significantly less than the 50 percent who are spending less on
groceries overall, signifying the strength of meat and poultry in the total food
consumption.
Yet, the impact of income cannot be underestimated as 62 percent of shoppers who
saw a significant drop in household income have altered their meat shopping.
More customers are also cooking at home versus eating out, leading to an
increase in meat purchases at supermarkets and other retail outlets.
The report, which details the findings of a national online poll of 1,174
consumers conducted in November 2009, was released today at the 2010 Annual Meat
Conference. The American Meat Institute (AMI) and the Food Marketing Institute (FMI)
published this consumer research, which was sponsored by Sealed Airs Cryovac
Food Packaging Division.
How Shoppers Save Money in the Meat Case
Consumers take a wide variety of money-saving measures including bulk
purchasing, buying on deal, trading down, substituting and eliminating groceries
in general, and meat and poultry specifically. Pre-store research has become
routine for many shoppers: 78 percent read grocery flyers to find the best price
per pound, 73 percent buy cheaper cuts of meat and poultry and 74 percent take
advantage of sales promotions. Others are finding ways to stretch their meat
dollar by cooking casseroles and pasta dishes as well as meatless meals.
In-Store Signage Top Marketing Measure
When rating six purchase influences, price ranked first with a score of 4.5 on a
6-point scale, well ahead of appearance. Using circulars and newspaper
advertisements, 66 percent of shoppers compare meat and poultry prices at
different stores and 86 percent compare prices of different brands and cuts once
in the store.
As a result, in-store signage and in-store promotions are enormously important
sales drivers of meat and poultry. While nutrition information and recipes play
a role in the purchasing decision, it is price that for many shoppers ultimately
decides where they shop, what they buy, how much they buy and if the meat is
natural/organic or conventional.
The share of shoppers to whom brand is unimportant is up to 74 percent for fresh
meat and 62 percent for processed meat.
Meat Consumption and Meal Preparation
In average week, shoppers prepare four evening meals that include a meat item.
These meals may range from frozen entrees to meals cooked from scratch. Chicken
and beef continue to dominate the American dinner plate, with pork and fish a
distant third and fourth. The vast majority of shoppers (78 percent) prepare
fresh meat at least once a week and most even three times a week (53 percent).
Meat Case Versus the Service Counter
With 73 percent of all shoppers aware of case-ready meat, many believe the
quality of pre-packaged meat and poultry is equal to or better than that cut and
packaged in the store. This high level of trust in case-ready meat translates
into a median of 90 percent of meat and poultry purchases originating from the
self-service case. More than one-quarter of shoppers buy case-ready meat
exclusively.
Reasons prompting shoppers to use the full-service counter include specialty
cuts, special occasions and quantities not available in the meat case. Shoppers
refer to family gatherings, holidays, barbeques and other special occasions for
using the full-service counter.
Econo-Sizing Meets Rightsizing?
Despite the economic factors, health and well-being are still highly valued in
todays society, and food plays a major role. Almost two-thirds of shoppers put
some (45 percent) or a lot (25 percent) of effort into eating healthfully, but
the rate of success is much lower. Despite best intentions to eat better, 42
percent say they succeed in doing so less than half of the time.
As part of shoppers healthy-eating strategies, they are the most likely to cut
back on meat/poultry portion sizes or second helpings, followed by selecting
low-sodium processed meats and eating fish or seafood more regularly. Some
shoppers are cutting back on their meat intake both from a savings point of view
and as a strategy to improve their diets. In terms of ingredients, shoppers
focus is back to fat, sodium and calories.
Improving the Meat Department
While some shoppers state that quality and variety would prompt them to increase
their meat purchases at their primary store, the most frequently mentioned
suggestions in this years survey revolve around price. Shoppers are asking for
sales promotions, meal deals, price cuts and once again underlined the
importance of price in the meat department.
Organic and Natural Meat
A steady 18 percent of shoppers have purchased organic or natural meats in the
past three months, with younger shoppers most likely to purchase organic meat
and poultry. Natural and organic store formats continue to lose market share to
supermarkets and farmers markets, and the conventional supermarket remains the
main outlet for organic and natural meat at 50 percent.
The positive long-term health effects and nutritional value are the top two
reasons cited by shoppers for purchasing organic meat and poultry. As shoppers
associate either immediate or long-term health benefits with organic products,
they may be more willing to give up goods they perceive as luxury, rather than
foods they see as essential to their health.
# # #
AMI represents the interests of packers and processors of beef, pork, lamb, veal
and turkey products and their suppliers throughout North America. Together,
AMI’s members produce 95 percent of the beef, pork, lamb and veal products and
70 percent of the turkey products in the United States. Headquartered in
Washington, D.C., the Institute provides legislative, regulatory, public
relations, technical, scientific and educational services to the industry. Its
affiliate, the AMI Foundation, is a separate 501(c)3 organization that conducts
research, education and information projects for the industry.
Food Marketing Institute (FMI) conducts programs in public affairs, food safety,
research, education and industry relations on behalf of its 1,500 member
companies food retailers and wholesalers in the United States and around the
world. FMIs U.S. members operate approximately 26,000 retail food stores and
14,000 pharmacies. Their combined annual sales volume of $680 billion represents
three-quarters of all retail food store sales in the United States. FMIs retail
membership is composed of large multi-store chains, regional firms and
independent supermarkets. Its international membership includes 200 companies
from more than 50 countries. FMIs associate members include the supplier
partners of its retail and wholesale members.
Source:
American Meat Institute