End of a Dynasty
Traditional red meats once had the run of the deli case. But their domination appears to be over
by Ken Krizner, senior editor
For decades, red meat products mastered the deli case. Tasty items such as salami, bologna and ham have filled the shelves and packed the pegboards much to the pleasure of consumers, retailers and meat processors.
Things have changed in the supermarket deli case. Led by turkey and chicken, poultry began challenging the red meat Goliath during the past decade. And while industry and supermarket experts agree poultry will never overtake red meat, a 50-50 split is reachable, something that would have been considered heresy just a short time ago.
"Turkey is a very popular item at the deli case, no question," points out Don Calabreeze, a deli manager for 15 Stop-N-Shop supermarkets in Northeast Ohio. He estimates that about 35 percent of his stores' sliced meat sales come from turkey.
"People enjoy the taste. It doesn't hurt that turkey has a good nutritional reputation," stresses Robert Lane, director of meat for a Jacksonville, Fla.-area Winn-Dixie supermarket. But traditional deli meats have more to worry about than just poultry. Low-fat items have found a firm niche, and the deli case is bracing for an ethnic explosion.
The niche grows
Sales of pegboard deli meats slipped nearly 3 percent in 1993, to $2.7 billion, according to Chicago-based Information Resources Inc. Traditional items, such as ham and roast beef, are experiencing slow sales, but the deli case is getting a boost from low-fat and low-salt products.
Low-fat brands carry a higher price, and traditional items are by far still the top sellers (by some accounts by a 4-to-1 margin). But with the advent of nutrition labeling, many experts expect a continued increase in low-fat items.
When asked if he believes low-fat items may one day outdistance traditional items, Calabreeze immediately answers no. But he adds: "That doesn't mean it won't find a comfortable niche somewhere around 4 percent of the deli case. I think it will."
Mary Kay O'Connor, director of education for the International Dairy Deli Bakery Association, points out that while there isn't "tremendous growth" in the low-fat category, it continues to gain acceptance with consumers.
"While sales aren't increasing tremendously, it has become an important component of the meat deli case," O'Connor says. When you take a look at a deli case, there is always a prominent display of low-fat products."
The future is ethnic
Another rising star in the deli case is ethnic foods, a trend that is expected to continue well into the 21st century. Demographics indicate the United States is on the verge of an ethnic group population explosion. This will be led by Hispanics, whose population is expected to double by 2020, according to the U.S. Census Bureau.
O'Connor has seen "an incredible" rise in popularity in ethnic foods. "As a food category, it is growing tremendously," she notes. "It's a type of product that consumers tend to eat a lot of, and are willing to experiment with."
Ethnic foods have long had an effect in certain supermarket categories. Products once only eaten by people of specific ethnic descents are increasingly becoming more mainstream.
But ethnic foods are undergoing a change, according to Greg Holland, a meat buyer for a Cincinnati-based Kroger supermarket. Kosher, Indian and Thai food are potential future hits with consumers.
Supermarkets and other retail outlets are seeing a rise in Kosher sales with non-Jewish consumers. International Dairy Deli Bakery Association research indicates that nearly three-quarters of the people who bought Kosher food are not Jewish.
Indian and Thai food are perceived as healthy.
O'Connor says the mobility of the American consumer-either traveling to other parts of the country, or another country-spurs ethnic product sales.
"You have to eat what the locals eat," she says. "People are finding that food in different parts of the country, or from different countries, is delicious. They want to take it home with them."
"There is a tremendous opportunity in the food industry to parlay ethnic foods into a marvelous marketing opportunity," she adds.