By Jerry Soverinsky
There are few things to appreciate or look forward to when driving along the 1,300-mile stretch of I-75 between Detroit and ft. Lauderdale during the winter.
Sure, there’s the prospect of reaching a warmer, sunbathing climate. and the opportunity to clear your mind of work or other concerns can also be enticing. but as for the driving logistics, it’s a brutal, 22-hour drive — one that my brothers and I have taken on at least a half dozen or so occasions as we traveled to meet the rest of our family for an annual vacation.
Mile after mile of torturously monotonous, concrete scenery unfolds endlessly before our eyes. The only escapes — mental and physical — are mandatory fuel stops every three or four hours. and, of course, as we discovered shortly after our first excursion: unbranded convenience store beef jerky.
I don’t want to drone on poetically about beef jerky. Simply put: I like it. but while my meat snack cravings growing up had been relegated to the ubiquitous wrapped sticks, it wasn’t until I ventured outside of my Midwest suburban domain and visited the rural united States that I discovered an entirely new meat snack world.
Venison, elk, moose, buffalo and alligator — these were plentiful offerings that confidently pushed aside the cow, relegating it to a much less prominent fixture. (If not replacing it altogether — I recall one clerk mocking my inquiry: “Cow? This is Georgia, boy!”) While I was hesitant to try these exotic, homemade varieties at first, a bit of friendly, Southern reassurance eventually won me over. Nearly all types of jerky became interesting culinary discoveries that infused much-needed anticipation into those long road trips.
That was the early 1990s. And, since abandoning the car trip for airline travel, I experienced roughly a 15-year gap since my last dried alligator strip.
That all changed just a few years ago. At that time, beef jerky — and the meat snacks category in particular — underwent somewhat of a renaissance during the high-protein, low-carbohydrate dieting craze. In its wake came a number of new suppliers, eager to take advantage of America’s changing snacking preferences. Convenience stores responded to the consumer demand, and I soon was pleased to find an expanded selection of jerky, even in downtown Chicago.
The high-protein fad has receded somewhat from America’s consciousness, yielding to a bevy of competitors. (Indeed, Health News reported this past December that “there are over 135 diets being promoted across America,” each no doubt eager to capture a share of the estimated $50 billion that Americans spend annually on dieting.) But while Atkins might not be on the forefront of consumers’ minds, meat snacks have remained a viable, if perhaps niche, category.
In addition to varieties that continue to emphasize health-related benefits, other types of meat snacks have emerged that appeal to consumers’ growing appreciation for flavorful, high-quality snacks (including those who seek organic food alternatives). Together, they provide retailers with a liberal assortment of options in a category that is showing signs of growth.
During 2008, while the CSX database and The Nielsen Company reported a 4 percent decrease in meat snack sales from 2007, the most recent trend is promising: third-quarter numbers show a 3.8 percent gain over the third quarter of 2007, with $208.7 million in total sales. And when you consider a gross margin percent that has climbed 5.19 points to 43.5 percent, the appeal for retailers is obvious.
While the major jerky consumer, according to the Nielsen Consumer Panel, fits a blue-collar profile — 35- to 54-year-old male, household income from $50,000 to $70,000 — less typical meat snackers are emerging.
“Long viewed as a man’s snack, [beef jerky] is receiving increased attention from women, dieters and other non-traditional meat snackers in search of a healthier option,” noted the Progressive Grocer in a November 2008 article. “Women, especially those searching for handy and better-for-you ways to get more protein in their diets, could be good target customers for the category.”
It’s a scientific-based prediction. A recent Penn State University Park study assessed the snacking interests of active women between ages 18 and 45. Evaluating the hunger-satisfying properties of 100-calorie samples of beef jerky versus 100-calorie portions of other snacks, it found that beef jerky was far more effective at controlling appetite.
“[T]hree or four bags of the 100calorie packages of Doritos...didn’t even come close to making them feel full,” the study found. “But after eating the 100-calorie pack of beef jerky, they were completely full.”
The study went on to report that more than 50 percent of its subjects expressed a desire for a more filling snack, with 65 percent saying that they would choose dried meat snacks over other options. All of which led the study to conclude that jerky is poised to grow as a snacking option for active women, a finding that some suppliers are validating and pursuing. (If true, the finding might not be entirely optimistic news for retailers. A product that reduces consumers’ demand for additional snacks could portend diminishing returns at the register.)
“In our research, we found that 50 percent of meat snack purchasers are women,” said Alan Bazzell, vice president of distribution and sales for Trailsteaks. The company produces “steak snacks,” a point of production differentiation that Bazzell notes appeals to this broader demographic.
“Our product is different, it’s a steak product that is cooked, not dehydrated,” said Bazzell. The process ensures that moisture is retained, producing a meat snack that Bazzell said is easier to chew than other meat snacks. As such, it appeals to this coveted demographic. “[Many larger producers] don’t advertise to women. But with our product being more tender and easier to chew, we can appeal to women and even children.”
Appealing to female customers is something that Power Mart in Palos Heights, Illinois, recognizes as significant for the meat snacks category. The chain has found success with softer varieties. “[Beef jerky] has gone from tough and chewy to a new softer version,” said Gail Carson, Power Mart’s grocery and foods director. As such, it “has brought the new customer to enjoy the product...Beef jerky sales have [evolved to satisfy] women, teens and children.”
With this expanded consumer base comes an equally expanded and diverse beef jerky palate, one with preferences and sensitivities extending beyond just texture. “The manufacturer understands that they need to keep updating with new flavors,” said Carson. And suppliers are complying, expanding the traditional meat snacks product line.
Thanasi Foods responded with products that incorporate popular national brands — Jim Beam, FRANK’S RedHot and Stubb’s — into their recipes, a step it saw as necessary for appealing to changing meat-snacking expectations. “Consumers have become more brand and quality conscious in the category,” noted Justin Havlick, CEO and president of Thanasi Foods.
With a crowded field of suppliers — “Today, there are many more competitors vying for retail placement and consumer mindshare,” said Havlick — only one thing is certain: The category is poised for even more change.
“The backbone of the jerky market can rely on the basics — beef jerky, pepperoni — but there is also a demand for innovation and new and exciting products,” noted Bob Crossley, spokesperson for Tillamook Country Smoker. Tillamook subsequently responded with Smoked Beef Nuggets, just one step in a continuing effort to claim convenience store shelf space.
Crossley said that staying ahead of the competition means keeping abreast of consumer trends, an ongoing effort that requires continual assessment of consumer tastes and fads. So what does the immediate future hold for meat snacks? “Now that the clamor over trans fats has quieted down,” Crossley noted, “the new catchphrase that has been popping up is MSG- and gluten-free products.”
One factor that’s having an immediate effect on the category is the distressed economy. To combat that, suppliers are developing ways to appeal to the increasing segment of cost-conscious consumers.
“[T]he economic outlook isn’t exactly cheery,” noted Crossley, “so retailers and suppliers must meet the demand for lower end-user costs and still stay in the black.” So what can retailers expect? Without affecting product ingredients, there’s the matter of packaging.
“The trend over the last 18 months to stretch the consumers’ spending dollar has been to lower package weights to stymie raising prices as long as possible,” Crossley said. A second solution rests with packaging quality. “[A]s the economy worsens, we will see manufacturers shy away from ‘green’ packaging [in favor of] cheaper, conventional sources.”
But stocking new varieties that appeal to changing demographics is only a first step. Power Mart’s Carson said that focusing attention on sampling, displays, in-store signage and cross promotions are key points of differentiation that can help maximize the category — responsibilities that should not rest solely with retailers. “The manufacturer realize[s] that they need to do more for the retailers,” she said.
It’s an especially important consideration when sales are slow. Despite the overall category growth during this past decade, not all retailers have found recent success. “We identified meat snacks, sticks in particular, as a loser in snacks for 2008 in our chain,” said Jared Sturtevant, director of category management for Nice N Easy Grocery Shoppes in Canastota, New York.
Recognizing the category’s enduring value, though, Sturtevant is carefully assessing his company’s execution. “[W]e will work with the manufacturers to offer more TPRs [total physical responses] and focus attention on the top SKUs that are struggling the most,” he said. “[And] while we do not currently sell any private-label meat snacks...we are very interested in giving it a try. It is an opportunity to build our own brand.”
Developing a private-label program is an option that Trailsteaks’ Bazzell said is gaining ground with retailers. But he cautions that it’s important to pursue a program that is commensurate with your marketing goals. One strategy is to pursue uniqueness and quality, irrespective of cost. And the other is to focus solely on margin.
“There are basically two differing views of what a private label should be,” Bazzell said. “One is the retailer wanting to have unique products that are available only at their stores that help drive consumer loyalty and brand awareness...they want quality because their name is on the product. The second view is that the retailer wants more margin…or a product that is like all the other products within the category.”
Bazzell went on to note that the private-label program is not for every retailer. “You probably need to have at least 75 to 100 stores to [make it viable],” he said, noting the roughly 10,000 units per SKU production requirement.
It’s an economic reality that Tillamook’s Crossley sees as restricting that segment’s growth. “I think we’ll see a downward trend in private-label packaging in the near future as retailers look to tighten their belts.”
Whatever the short-term economic effects on retail buying decisions, here’s personal reassurance from one consumer to (at least Chicago) convenience retailers: If you continue to stock the nontraditional meat snack varieties, rest assured you’ve got at least one loyal customer who is willing to pay a premium on quality and innovation — anything to spare me from the 1,300-mile drive on I-75 to get my beef jerky fix.
Jerry Soverinsky is a freelance writer living in Chicago and a NACS Magazine contributing writer.