- The Products
The Products
- Scope of This Report
- Types of Meats Included
- Products Not Covered in This Report
- The Need for Processing Meat
- Historical Development of Meat Processing and Packing
- Meat Processing and Packing in the United States
- Use of Irradiation on Meat Products
- Nutritional Aspects of Packaged and Canned Meat
- Fat Content of Processed Packaged and Canned Meats
- [Table] Fat and Saturated Fat Content of Selected
Packaged and Canned Processed Meats
- Protein Content of Processed Packaged and Canned
- Meats
- [Table] Protein Content of Selected Packaged and
Canned Processed Meats
- Sodium Content of Processed Packaged and Canned
Meats
- [Table] Sodium Content of Selected Packaged and
Canned Processed Meats
- Caloric Value of Processed Packaged and Canned
- Meat Products
- [Table] Calorie Content of Various Packaged and
Canned Processed Meats
- Impact of 1992 Nutritional Labeling and Education Act
- Nutritional Labeling Requirements
- [Label] Nutrition Facts
- [Label] Nutrition Facts
- 1992 Nutritional Labeling and Education Act Definitions
The Market
- [Graphic] Estimated and Projected Retail Sales of Canned
and Packaged Processed Meats: By Category (1990-1999)
Market Size and Growth
- Estimates Based on Supermarket Sales Data
- Retail Sales Top $17 Billion in 1994
- Sales by Category
- [Table] Sales and Growth of Packaged and Canned
Processed Meat: By Category (1990-1994)
Factors in Future Market Growth
- Several Factors Worthy of Examination
- Fat Makes a Comeback...
- ...But Lean Is Still Mean
- Reduced Sodium Is Also a Factor in Market Growth
- Kosher Label Adds Value
- Ethnic Marketing Promises Increased Sales
- Convenience Proves a Strong Selling Point
- Effect of Celebrity Endorsements
- Economic Fears Affect Price
- Packaging Improvements Increase Product Appeal
- In-Store Delis Offer More Competition
Projected Sales
- Market Sales Will Reach $18.8 Billion by 1999
- Projected Sales by Category
- [Table] Projected Retail Sales of Packaged and Canned
Processed Meat: By Category (1994-1999)
Market Composition
- Market Share by Category
- [Graphic] Share of Processed Meat Sales: Packaged vs.
Canned (1994)
- Sales by Distribution Outlet
- [Table] Share of Sales by Outlet Type: Packaged vs.
Canned (1993)
- Seasonality of Sales
- Regionality of Product Use
The Marketers
The Marketers
- Few National Marketers
- Four Companies Dominate
- Smaller Marketers Have Regional Strength
- Chiquita Brands Looks to Bow Out
- Few Marketers Participate in Both Major Categories
- Multiple Brand Names
- [Chart] Packaged and Canned Processed Meat Marketers
and Their Brands
Marketer Shares
- Top Four Marketers Control 52% of Market
- Philip Morris Takes 20% of the Market
- Sara Lee Is Number Two with Over 15% of Industry Sales
- ConAgra Close to 9%
- Hormel's Share Over 7%
- Three Marketers Each Had Close to 2% Shares
- Bob Evans Farms and Smithfield Foods Each Hold Shares
of About 1.5%
- Four Companies Have Shares of 1%
- Private Label Brands Control a 12% Share
- Smaller Companies Divide Remaining 23%
- [Table] Leading Marketer Shares of the Packaged and
Canned Processed Meat Market (1994)
Brand Shares
- 18 Brands Account for Half of Industry Sales
- Oscar Mayer Tops All Brands
- Hormel Leads Second Tier of Brands
- Louis Rich Has 4.4% Share
- Three Sara Lee Brands Hold Fourth, Fifth, and Sixth Positions
- A Dozen Brands Have Shares Between 1% and 2%
- [Table] Leading Brand Shares of the Overall Packaged
and Canned Processed Meat Market (1994)
Competitive Situation
- Products Are Differentiated by Various Means
- Philip Morris Leads Through Product Innovation
- Sara Lee Offers Extensive Number of Brands
- Healthy Choice Adds to ConAgra's Clout
- Revitalized Spam Buoys Hormel
- Thorn Apple Valley Courts Retailers
- Bob Evans Leverages Popularity of Its Restaurants for
- Retail Growth
- Farmland Offers "Better Farming. Better Food." as
- Competitive Edge
Marketing Trends
- Several Trends at Work in Processed Meat Market
- Line Extensions Broaden Product Appeal
- Mergers and Acquisitions Build Product Lines and
- Distribution
- Importance of Kosher Products Reflected by Acquisitions
- Ethnic Marketing a Growing Trend
- Positioning Against Fast Foods an Emerging Trend
- Cross Marketing Highlights Product Use
New Product Trends
- Several Major Trends Emerging
- Fat Is Back...
- ...But Light Is Still Important
- Convenience Is a Growing Trend
- More Flavor Varieties Are Being Introduced
- New Packaging Makes for Fresher Products
Advertising Expenditures
- Advertising Expenditures Near $130 Million in 1993
- Sara Lee's Ad Spending Over $45 Million
- Philip Morris Spent Almost $26 Million
- ConAgra Spent $17 Million in Advertising
- Hormel Is Fourth Largest Ad Spender
- At Least Nine Other Marketers Spent $1 Million or More
on Advertising
- [Table] 1993 Ad Spending in the Packaged and Canned
Processed Meat Industry
Advertising Positioning
- Several Themes Used in Marketing Processed Meat Products
Consumer Promotions
- Wide Variety of Promotions Used
Trade Advertising and Promotions
- Several Types of Trade Promotion Used
Distribution And Retail
Distribution
- Distribution Follows Standard Patterns
- Automation Has Major Impact
- Efficient Consumer Response Is Latest Attempt to Reform
- Distribution
- ECR Spells End to Promotions
- Third Party Businesses Look for Bigger Share of Market
At the Retail Level
- Supermarkets Are Main Outlet
- Wholesalers Expanding into Retail
- Margins Range from 20% to 50%
- Product Proliferation Forces Hard Choices for Retailers
- Promotions Strongly Influence Retailer Product Selection
- Impact of Private Label Brands
- Pricing Data at the Retail Level
Consumer Use
Consumer Use
- Level of Use Varies by Product Type
- [Table] Use of Packaged & Canned Processed Meat
Products: By Type
- Percentage of Heavy Users Consistent Across Categories
- [Table] Heavy Product Use of Selected Packaged
Processed Meat Products
- Several Factors Characterize Household Use
- [Chart] Importance of Various Factors to Household Use
of Selected Packaged & Canned Processed Meats
The Packaged Processed Meat Category
- The Products
The Products
- Packaged Processed Meat Definitions
The Products: Cold Cuts
- Definition of Cold Cuts
- How Cold Cuts Are Made
- Packaging
- Product Variations
- Variety Packs
- [Chart] Cold Cut Variety Packs
- Combination Packages
The Products: Sausage
- Definition of Sausage
- Sausage in America
- Five Major Sausage Types
- Breakfast or Dinner Sausage
- How Sausage Is Made
- Packaging
- Combination Products
The Products: Frankfurters
- Definition of Frankfurters
- The Frankfurter in America
- How Frankfurters Are Made
- Packaging
- Frankfurter Varieties
The Products: Bacon
- Definition of Bacon
- Types of Bacon
- How Bacon Is Made
- Packaging
Other Packaged Processed Meat Products
- The Market
Market Size and Growth
- Packaged Meat Sales Were $15.9 Billion in 1994
- Cold Cuts Is Top-Selling Segment
- Sausage Sales Top $5 Billion in 1994
- Decline in Frankfurter Sales Halted
- Bacon Sales Rebound in 1994
- [Table] Retail Sales and Growth of Packaged Processed
Meats: By Segment (1990-1994)
- Volume Sales Increase
- [Table] Pound Sales of Packaged Processed Meats:
By Segment (1992-1993)
- Sausage Carries Highest Price Tag
- [Table] Price per Pound of Packaged Processed Meat
Products: By Segment (1992-1993)
Factors in Future Market Growth
- Variety and Value Are Key Factors
- Nutritional Factors Will Influence Category Sales
- Thicker and Richer Offers Alternative to Lean and Light
- Tradition Is Touchstone for Back-to-Fat Trend
- New Flavors Answer Consumer Demands for New Taste
- Experiences
- Melting Pot Stirs Again
- Marketers Target Ethnic Communities for Mainstream
- Products
- Freshness an Issue for the Category
- Convenience Will Continue to Grow as Major Factor
- Catering to On-the-Go Consumers
- The Rising Importance of Private Label in the Quality/
- Value Equation
Projected Sales
- Sales Will Reach $17.6 Billion in 1999
- Sales of Cold Cuts Will Top $6.4 Billion in 1999
- Sausage Sales Should Increase 14%
- Frankfurters Sales $2.9 Billion by 1999
- Sales of Bacon Should Reach $2.5 Billion
- [Table] Projected Retail Dollar Sales of Packaged
Processed Meats: By Segment (1994-1999)
Market Composition
- Share of Sales by Category
- [Graphic] Share of Packaged Processed Retail Meat Sales:
By Market Segment (1994)
- Supermarkets Are Main Distribution Outlet
- [Table] Share of Sales of Packaged Processed Meat Products
by Outlet Type: By Market Segment
- Seasonality of Sales
- [Table] Seasonality of Packaged Processed Meat Sales: 1993
Regional Use of Packaged Meat Strongest in South and
- Midwest
- [Table] Regional Use of Packaged Processed Meats:
By Segment
- The Marketers
The Marketers
- Same Marketers Dominate Packaged Category as Overall
- Market
- Hormel Foods Has Smaller Share
- Carl Buddig Among the Leading Category Marketers
- Most Marketers Compete Across Segments
Packaged Meat Marketers and Their Brands
- [Chart] Packaged Meat Marketers and Their Brands
Marketer Shares
- Philip Morris Is Category Leader
- Sara Lee Is Number Two Marketer in Category
- ConAgra Ranks Third in the Category
- Hormel Has a Share of 3.5%
- Thorn Apple Valley Has 2.1% Share
- Chiquita Has 2.0% Share
- Seven Other Marketers Have Shares of 1.0% or More
- Private Label Marketers' Share Is 12.5% in 1994
- Cold Cuts Segment Led by Philip Morris
- Sausage Segment Leader Is Sara Lee
- Sara Lee Tops in Franks
- Philip Morris Leads Bacon Segment
- [Table] Leading Marketer Shares of Packaged Processed
Meat Category (1994)
- [Table] Leading Marketer Shares of the Cold Cuts Segment
of the Packaged Processed Meat Category (1994)
- [Table] Leading Marketer Shares of Sausage Segment of
the Packaged Processed Meat Category (1994)
- [Table] Leading Marketer Shares of Frankfurter Segment
of the Packaged Processed Meat Category (1994)
- [Table] Leading Marketer Shares of Bacon Segment of the
Packaged Processed Meat Category (1994)
Brand Shares
- Oscar Mayer Has Commanding Brand Share Lead
- Louis Rich Leads the Rest of the Pack
- Hillshire Farm and Hygrade Tie for Third in Brand Share
- Bryan Brand Places Fifth
- Hormel Has 2.6% Share
- Healthy Choice Is the Seventh Leading Brand
- Eckrich Has a 2.1% Share of Category
- Jimmy Dean Brand Places Ninth
- Three Brands Tied for Tenth
- [Table] Leading Brand Shares of the Packaged Processed
Meat Category (1994)
- [Table] Leading Marketer Shares of the Cold Cuts Segment
of the Packaged Processed Meat Category (1994)
- [Table] Brand Shares of the Sausage Segment of the
- Packaged Processed Meat Category (1994)
- [Table] Brand Shares of the Frankfurter Segment of the
- Packaged Processed Meat Category (1994)
- [Table] Brand Shares of the Bacon Segment of the Packaged
- Processed Meat Category (1994)
Competitive Situation
- New Products Key to Philip Morris Leadership
- Acquisitions Grow Sara Lee's Competitive Strength
- Acquisitions Key for Smaller Marketers, Too
- ConAgra Uses Healthy Choice Product Variety to Build
- Following
- Thorn Apple Valley Focuses on Appeal to Trade
- Restaurant Experience a Plus for Bob Evans Farms
- Philip Morris Approaches Restaurant/ Retail Synergy
- from Retail Side
Marketing Trends
- Product Names Used to Cue Consumer
- Line Extensions Add Variety
- Growing Demand for Kosher Products Leads to Acquisitions
- Marketers Focus on Ethnic Markets
- Restaurant and Retail Synergy
- Cross Promotion
- Labeling for Regional Appeal
New Product Trends
- Combination Products: Cold Cuts
- Combination Products: Sausage
- Thin-Sliced Cold Cuts as a Diet Alternative
- Salad Toppings a New Idea
- Shaping Cold Cuts for Sandwich Bread
- Flavor Varieties
- Hot and Spicy
- Natural Ingredients Are Featured Attraction
- [Chart] Packaged Processed Meats Selected New Product
- Introductions
Packaging Trends
- Freshness Is the Goal
- Special Packs Introduced for Warehouse Club Sales
Advertising Expenditures
- Top 12 Category Advertisers Spend Almost $110 Million
- Sara Lee is Category's Number One Advertiser
- Philip Morris Spending Close to $26 Million
- ConAgra Spending Tops $17 Million
- Jerome Enterprises a Surprising Fourth
- Eight Other Marketers Spend $1 Million or More
- [Table] Advertising Expenditures for Leading Marketers
in the Packaged Processed Meat Category: 1993
Advertising Positioning
- Taste, Health, and Quality Among Major Themes for
- Packaged Processed Meat Products
- Great Taste Stressed by Many
- "Homemade Taste" Emphasized by Philip Morris
- Some Ads Combine Taste and Nutrition Themes
- Hormel Tells Moms to Feed Kids Light
- Taste and Convenience Another Combined Theme
- Straight Health Card Played
- Many Marketers Stress Quality
- Michael Jordan Validates Ball Park Franks
- Name Alone Is Enough to Promote Oscar Mayer
- Seasonal Uses Highlighted for Several Brands
- Sometimes Processed Meat Is Advertised with Other Foods
- Flavor Variety Is Theme for Johnsonville Sausage
- Oscar Mayer Promotes Big & Juicy as Big Alternative
- Carl Buddig Stresses Value for Price
Consumer Promotions
- Coupons Are a Constant
- Sports Tie-Ins Are Popular Promotions
- Clothing Self-Liquidators Sometimes Used
- ConAgra Offers National Parks Vacation Sweepstakes
- Recipes a Leading Promotional Activity
- Promotions to Children Include Free Games
Trade Advertising and Promotions
- Thorn Apple Valley Touts Its Success
- Hillshire Farm Offers Merchandising Support for Holidays
- Hormel Foods Trade Ads Focus on Product Benefits
- Distribution And Retail
Distribution
At the Retail Level
- Supermarkets Are Main Distribution Outlet for Packaged
- Processed Meats
- 18- to 24-Feet Cases for Packaged Meats
- Peg Racks Important Feature
- Other Food Stores Account for Most Other Sales
- Warehouse Clubs Grow in Importance as Outlets for
Cold Cuts
- Broad Range of Prices for Packaged Meats
- Promotions Account for About a Third of Packaged
- Processed Meat Sales
- Margins on Packaged Meats
- The Consumer
Consumer Use
Consumer Use: Focus on Cold Cuts
- Almost 82 Million Principal Shoppers Report Using Cold Cuts
- Packaged versus Fresh Cut Use
- Typical Amounts Used
- [Graphic] Distribution of Cold Cut Users and Usage:
By Level of Product Use
- Demographic Profile of Packaged Cold Cut Users
- [Chart] Demographic Characteristics Favoring Use
of Packaged Cold Cuts
- Oscar Mayer and Louis Rich Most Popular Brands
- [Table] Users of Cold Cuts: By Brand
- Similarities Found in Major Brand Profiles
- Meaningful Differences Among Major Brand Profiles
- [Chart] Demographic Characteristics Favoring Use
of Various Cold Cuts Brands
Consumer Use: Focus on Sausages
- 66 Million Households Use Sausages
- Typical Amounts Used
- [Graphic] Distribution of Sausage Users and Usage:
- By Level of Product Use
- Factors Favoring Use of Sausage
- Heavy Users Profiled
- [Chart] Demographic Characteristics Favoring Use of Sausage
- Types of Sausage Used
- Subtle Differences in Precooked Versus Not Precooked
- User Profiles
- Both Groups Share Certain Characteristics
- [Chart] Demographic Characteristics Favoring Use
of Sausages: By Type
- Forms of Sausage Used
- Few Strong Demographic Skews
- [Chart] Demographic Characteristics Favoring Use
of Sausages: By Form
- Kinds of Sausages Used
- Few Notable Skews
- Less Notable Skews
- [Chart] Demographic Characteristics Favoring Use
- of Sausages: By Kind
- Flavors of Sausage Used
- [Table] Users of Sausage: By Flavor
- Some Key Differences in Demographic Characteristics
- [Chart] Demographic Characteristics Favoring Use
of Sausages: By Flavor
- Jimmy Dean and Hillshire Farm Most Popular Brands
- [Table] Users of Sausage: By Brand
- Differences Emerge in Brand Profiles
- [Chart] Demographic Characteristics Favoring Average
- Use of Sausages: By Brand
Consumer Use: Focus on Frankfurters
- 79 Million Households Use Frankfurters
- Typical Amounts Used
- [Graphic] Distribution of Frankfurter and Wiener Users:
- By Level of Product Use
- Presence of Children Favors Use of Frankfurters
- Heavy Users Profiled
- [Chart] Demographic Characteristics Favoring Use of
Frankfurters
- Types of Frankfurters Used
- [Table] Users of Frankfurters: By Type
- Presence of Children Important Factor to All Types Except
- All Turkey
- Household Income Not Very Telling Except for All
- Chicken Variety
- Education Affects Use of Poultry-Based Products
- Poultry-Based Products Fare Better Among African-Americans
- Geography Influences Type of Frankfurters Used
- [Chart] Demographic Characteristics Favoring Use
- of Frankfurters: By Type
- Oscar Mayer and Ball Park Most Popular Brands
- [Table] Users of Frankfurters: By Brand
- Regardless of Brand, Presence of Children Is Important
- Major Differences Indicated in Brand Profiles
- [Chart] Demographic Characteristics Favoring Use
of Frankfurters: By Brand
Consumer Use : Focus On Bacon
- 77 Million Households Use Bacon
- Typical Amounts Used
- [Graphic] Distribution of Bacon Users and Usage:
- By Level of Product Use
- Demographics Characterizing Use of Bacon
- Heavy Users Profiled
- [Chart] Demographic Characteristics Favoring Use of Bacon
- Oscar Mayer and Armour Most Popular Brands
- [Table] Users of Bacon: By Brand
- Major Brand Profiles Are Similar
- Meaningful Differences in Brand Profiles Evident
- [Chart] Demographic Characteristics Favoring Use
of Selected Bacon Brands
The Canned Processed Meat Category
- The Products
The Products
- Canned Processed Meat Definitions
The Products: Canned Meat Dishes
- Canned Meat Dishes Defined
- How Canned Meat Dishes Are Made
- Packaging
- Product Uses
The Products: Canned Ham
- Canned Ham Segment Defined
- How Canned Ham Is Made
- Packaging
- Product Varieties
- Product Uses
The Products: Luncheon Meat
- Development of Canned Luncheon Meat
- Luncheon Meat Ingredients
- Packaging
- Product Uses
The Products: Canned Sausages and Frankfurters
- Product Description
- Packaging
- Product Uses
The Products: Beef Hash
- Product Description
- How Beef Hash Is Made
- Packaging
- Product Uses
The Products: Canned Meat Spreads
- Product Description
- Canned Meat Spreads Ingredients
- Packaging
- Product Uses
The Products: Canned Corned Beef
- Product Description
- How Canned Corned Beef Is Made
- Packaging
- Product Uses
The Products: Dried Beef
- Product Description
- Packaging
- Product Uses
- The Market
Market Size and Growth
- Canned Meat Sales Placed at $1.2 Billion in 1994
- Meat Dishes Only Segment to Have Grown
- Canned Ham Sales Slide to $170 Million
- Luncheon Meats Make Comeback, Posting Sales
of $152 Million
- Sales of Canned Sausages and Frankfurters Placed
at $124 Million
- Canned Hash Sales Drop 8.2% Between 1990 and 1994
- Meat Spreads Segment Sales Total $74 Million
- Corned Beef Sales Turn Up in 1994
- Dried Beef Sales Continue to Slide
- Volume Is Up for Canned Meats
- [Table] Retail Sales and Growth of Canned Processed
- Meat: By Segment (1990-1994)
Factors in Future Market Growth
- Generating Consumer Interest Is Key Factor to Growth
- Meeting Consumer Nutritional Demands Another Key Factor
- Versatility a Key Factor
- Convenience Another Factor in Future Growth
- Nutritional Efforts Must Be Increased
- Limited Innovation a Drawback
- Freshness a Challenging Issue
- Opportunities for Growth Exist in Ethnic Marketing
- Quality/Value Equation Can Be Stressed
Projected Sales
- Canned Processed Meat Sales to Increase Modestly
- Canned Meat Dishes Will Show Greatest Gains
- Luncheon Meat and Canned Corn Beef Will Also Grow
- All Other Segments Will Suffer Declines
- [Table] Projected Retail Sales of Canned Processed Meat:
By Segment (1994-1999)
Market Composition
- Market Share by Category
- [Graphic] Share of Canned Processed Meat Sales:
By Segment (1994)
- Sales by Distribution Outlet
- [Table] Share of Sales of Canned Processed Meat Products:
- By Distribution Outlet
- Seasonality of Sales
- Information on Canned Meat Regional Use Is Limited
- [Table] Regional Use of Selected Canned Processed
- Meat Products
- The Marketers
The Marketers
- Most Major Marketers Compete in Several Segments
- Smaller Competitors Are Largely Regional
- Acquisitions Reduce Number of Independent Marketers
- Canned Ham Segment has Largest Number of Marketers
- [Chart] Canned Meat Marketers and Their Brands
Marketer Shares
- Detailed Category Information Is Limited
- Hormel Foods Owns Close to Half the Market
- Nestlé's Share at 16%
- Dial Holds Third Position in Category
- Pet, Inc., and ConAgra Both Have Close to 5% Share
- Other Marketers Share Small Portion of Overall Market
- Private Label Brands Have Small Share of Overall Market
- [Table] Marketer Shares of Canned Processed Meat
Category (1994)
- Hormel Is Leader in Meat Dishes Segment
- [Table] Marketer Shares of Meat Dishes Segment
- Canned Ham Segment Also Led by Hormel
- [Table] Marketer Shares of Canned Ham Segment (1994)
- Hormel Dominates Luncheon Meat Segment
- [Table] Marketer Shares of Luncheon Meat Segment (1994)
- Dial Tops in Canned Sausages and Frankfurters
- [Table] Marketer Shares of Canned Sausages & Frankfurters
Segment
- Hormel the Front-Runner in Beef Hash
- [Table] Marketer Shares of Beef Hash Segment
- Pet Controls Meat Spreads Segment
- [Table] Marketer Shares of Meat Spreads Segment
- Nestlé Leads Corned Beef Segment
- [Table] Marketer Shares of Corned Beef Segment
- Dial Controls Most of Dried Beef Segment
- [Table] Marketer Shares of Dried Beef Segment
Brand Shares
- Dinty Moore Is Leading Brand in Canned Meat Category
- Four Other Brands with Double-Digit Shares
- Eight Other Brands Have Over 1% Share
- [Table] Brand Shares of the Canned Processed Meat
- Category (1994)
- Dinty Moore Leads Meat Dishes Segment
- [Table] Brand Shares of the Meat Dishes Segment (1994)
- Armour Leads Canned Ham Segment
- [Table] Brand Shares of the Canned Ham Segment (1994)
- Luncheon Meat Segment Dominated by Spam
- [Table] Brand Shares of the Luncheon Meat Segment (1994)
- Armour Tops Again in Canned Sausages and Frankfurters
- [Table] Brand Shares of the Canned Sausages & Frankfurters
- Segment (1994)
- Mary Kitchen Holds 50% of Beef Hash Segment
- [Table] Brand Shares of the Beef Hash Segment (1994)
- Underwood Brand Big Winner in Meat Spreads Segment
- [Table] Brand Shares of the Meat Spreads Segment (1994)
- Libby's Leads Corned Beef Market
- [Table] Brand Shares of the Corned Beef Segment (1994)
- Armour Holds Most of Dried Beef Segment
- [Table] Brand Shares of the Dried Beef Segment (1994)
Competitive Situation
- Commitment to Spam Pays Off for Hormel
- Nestlé Counts on Tradition in Multiple Segments
- Pet Expands Underwood Line
- ConAgra Grows Through Acquisitions
- Stagg Supports Expansion with Advertising
Marketing Trends
- Line Extensions Used in Many Segments
- Demand for Convenience Gets Response from Canned
- Meat Marketers
- Ethnic Products Make an Appearance
- Upscale Canned Meat Products Appear
New Product Trends
- More Poultry Varieties Introduced as Low Fat Alternatives
- Honey Makes for Sweeter Sales
- Hot Is Hot
- "No Beans" Chili Catching On
- Upscale Products Feature Higher Quality Ingredients
- [Chart] Canned Processed Meats Selected New Product
Introductions
Packaging Trends
- Some Marketers Use Glass or Bags in Place of Cans
Advertising Expenditures
- Limited Data Available on Canned Meat Advertising
- Hormel Foods Is Biggest Spender
- Other Advertising Expenditures Split Between Print
and Spot TV
- [Table] 1993 Advertising Expenditures for Canned
Processed Meat Brands
Advertising Positioning
- Canned Meat Products Positioned to Stress Versatility
- Traditional Heartiness of Canned Meat Products Stressed
- Variety Another Major Ad Theme
- Convenience a Theme for Underwood Meat Spreads
Consumer Promotions
- Coupons Are Ever Present
- Recipes Another Constant Presence
- T-Shirts and Toys
- Distribution And Retail
Distribution
- At the Retail Level
- Supermarkets Are Main Distribution Outlets for
- Canned Meats
- Smaller Food Stores Are Second Most Important Outlets
- Warehouse Clubs and Mass Merchandisers Account for
- 10% of Volume
- Drugstores Important Outlet for Canned Hams
- Limited Distribution Through Convenience Stores and
- Nonfood Stores
- Pricing Varies Considerably Over Several Segments
- Promotions Account for a Fifth to a Third of Category Sales
- Margins Spread Wide Over Various Segments
- The Consumer
Consumer Use of Canned Processed Meat Products
- Simmons Provides Data
- [Table] Users of Canned Processed Meat Products
Consumer Use: Focus on Canned Meat Dishes
- Canned Chili with Meat and Beef Stew Each Used in
- Approximately 18 Million Households
- Several Meaningful Factors in Canned Chili Use
- Race, Household Size, and Presence of Children Predict
- Use of Canned Beef Stew
- [Chart] Demographic Characteristics Favoring Use of
Canned Chili with Meat and Canned Beef Stew
Consumer Use: Focus on Canned Ham
- 18 Million Households Use Canned Hams
- Canned Ham Use Fairly Universal
- [Chart] Demographic Characteristics Favoring Use
of Canned Ham
Consumer Use: Focus on Canned Luncheon Meat
- Over 13.6 Million Households Use Canned Luncheon Meat
- Age and Socioeconomic Condition Important Factors
in Canned Luncheon Meat Use
- [Chart] Demographic Characteristics Favoring Use
of Canned Luncheon Meat
Consumer Use: Focus on Canned Sausages and Frankfurters
- Canned Sausages and Frankfurters Used in Over
- 17 Million Households
- Downscale Profile Emerges for Canned Vienna Sausage
- [Chart] Demographic Characteristics Favoring Use
of Canned Vienna Sausages
Consumer Use: Focus on Canned Beef Hash
- Over 12.5 Million Households Use Canned Corned Beef Hash
- Meaningful Factors in Use of Canned Corned Beef Hash
- [Chart] Demographic Characteristics Favoring Use of
Canned Corned Beef Hash
Consumer Use: Focus on Canned Meat Spreads
- Close to 9 Million Households Use Canned Deviled Ham
- Canned Deviled Ham Use Particularly Strong in the South
- [Chart] Demographic Characteristics Favoring Use of
Canned Deviled Ham
Consumer Use: Focus on Canned Corned Beef
- Canned Corned Beef Used in Almost 11.3 Million Households
- Canned Corned Beef Appeals to Older Americans
- [Chart] Demographic Characteristics Favoring Use
of Canned Corned Beef
Appendix I: Company Profiles
American Financial Corporation
- Revenues of $2.72 Billion in 1993
- Diversified Holdings
- Chiquita Brands Divesting Meat Operations
Bob Evans Farms
- Sales Close to $700 Million
- Restaurants in 19 States
- Synergy Has Been Key to Growth
ConAgra
- FY 1994 Sales Reach $23.5 Billion
- Diverse Range of Consumer Goods, Commodities
- Corporate Structure
Doskocil Companies, Inc.
- Sales for 1994 Running 12% Ahead of 1993
- Return from Bankruptcy
- Wilson Is Main Brand
Hormel Foods Corporation
- Sales of $3 Billion in Fiscal 1994
- Meats, Prepared Foods Dominate Product Line
- Company Strategy
Pet, Inc.
- Sales Totaled $1.58 Billion in FY 1994
- Broad Product Line
- Corporate Structure
Philip Morris Companies, Inc.
- Revenues of Some $65 Billion in 1994
- Three Main Divisions
- Many Powerhouse Brands
Sara Lee Corporation
- Sales of $15.5 Billion
- Segment Contributions
Smithfield Foods
- 1995 Sales Running Ahead of '94
- Vertical Integration Strategy
- Smithfield Brands
Thorn Apple Valley
- Sales of $772 Million in 1994
- Turnaround Attributed to New Leadership
- Thorn Apple Valley Brands
Appendix II: Examples Of Packaged And Canned
processed meat advertising and promotion
- Consumer Advertising for Packaged Processed Meat
- Consumer Promotions for Packaged Processed Meat
- Trade Advertising and Promotions for Packaged
Processed Meat
- Consumer Advertising and Promotions for Canned
- Processed Meat
Appendix III: Food Store Price Structure
(Cergro Blue Book)
Appendix IV: Addresses Of Selected Marketers
