At the Top of the Shopping List
by Ken Krizner, senior editor
Judi Petersen doesn't step foot into a grocery store without her shopping list. And that shopping list usually isn't complete until ham is on it.
The suburban Cleveland wife and mother of three makes it a point to buy ham luncheon meat.
And she does not confine her purchase of whole hams to holidays and special occasions.
"I guess ham will always be a staple of my children's school lunches," she notes. "They love the taste, and it's nutritious. It is hard to combine those two qualities in food for your children."
Petersen's family is not alone in its assessment.
Ham continues to be one of the most popular meat items in the retail case.
Consumption of many meat products has begun to rise after a period of stagnation. But ham consumption never wavered, according to industry executives.
"We have a lot of great hams in the market," points out Joe Leathers, director of merchandising for the National Pork Producers Council. "The category is alive and well. I expect it to keep growing."
Shoppers agree.
"There are several very good ham products on store shelves," notes consumer Dorothy Knight. "I can honestly say I never bought a ham that I later regretted. It is one of the best buys."
Petersen says when several factors are taken into consideration-price, flavor, convenience and taste-ham may be the best bargain in the supermarket.
"When I buy a product for my family and there are no leftovers, I consider that a bargain," she points out. "This is usually the case when I buy ham."
The price of ham
Despite a year-long plunge in hog prices (a 29 percent drop since January 1994), retail ham prices have remained relatively stable.
"Overall, the price of hams has come down, but not in proportion to the drop in the price of hogs," notes Larry Von Tersch, director of processed hams for Kansas City, Mo.-based Farmland Foods Inc.
The reason is simple, Von Tersch points out. Consumers have not stopped wanting ham. "Demand has remained very strong," he adds.
Leathers adds: "everyday price of retail ham is about where it was a year ago."
But he expects ham prices to drop during the first quarter of 1995 because another 26 million hogs will be slaughtered, adding more pork to an already overcrowded field.
"There will be a strain on prices, no question," he says. "We will have about 54 million hams to sell."
Leathers expects relief to come in mid-April when ham purchases are expected to pick up again for the Easter holiday.
Making ham sandwiches
Lori Kitzmiller, product manager for Cincinnati-based Hillshire Farm & Kahn's, says consumer research shows that ham sandwiches remain among the most popular sandwiches with consumers.
She believes there are several reasons for this:
-- Ham is lean. Processors-including Hillshire-have adopted lean trimming specifications. The result is ham products that are up to 97 percent fat free.
-- Ham is flavorful when compared to other lunch and dinner alternatives.
"[Hillshire] has a line of baked dinner hams that deliver the features that today's consumers are looking for," Kitzmiller says. "The products are mild and not salty, and there are honeycured and brown sugar products that give consumers a flavorful option in the sweet area."
-- Ham is a convenient item. "A lot of consumers may not know this but ham is a fully cooked product," Kitzmiller notes. "This makes it a convenient alternative for lunch or dinner."
Ham trends
Twenty-three ham products were listed as introduced in 1994 by Marketing Intelligence Services (see page 34).
Seven new products billed themselves as "low fat" or "low calorie," while nine new items were microwaveable and ready to serve.
Nine items were advertised as snacks, while six items were whole hams, six items were luncheon meats, and two items were part of breakfast meals.
One new item, developed in Japan and distributed in the western United States by Torrance, Calif.-based YCM Associates Inc., combines soybean protein, canola oil, natural smoked flavor and apple cider into a vegetable-sliced ham that has no fat, artificial preservatives or MSG.
The product itself, developed for consumers who like the taste of ham but have reduced their meat intake, received positive feedback from consumers, according to We Deim Kao, a YCM Associates representative.
However, the product was taken off the shelf because of packaging difficulties. The packaging was too long and retailers were unable to keep it on store shelves without infringing on other products' spaces, Kao says.
YCM is developing new packaging and hopes to have the vegetable ham back on store shelves by spring. Kao says the company hopes to take the product nationwide within two years.
"The niche is there and we believe it will continue to be a growing niche," he says.
"Consumers will buy our vegetable ham just like they buy meatless hamburgers."
Despite Kao's optimism for his vegetable ham, industry executives sense a trend back to bone-in hams.
"We are going back to natural hams-Honeybaked, Honeycured and spiral sliced," NPPC's Leathers points out. "People miss the old-fashioned flavor and taste of a bone-in ham. A 98 percent fat-free ham cannot deliver that taste. There isn't the fat and there isn't the hearty smoke flavor."
Von Tersch believes price is a reason why bone-in hams are making a comeback.
"There is a better price for the more expensive ham," he says. "Two years ago, hams with natural juices and water-added were at a high price. Today, you can achieve a very good price on water-added hams."
Kitzmiller says another trend in ham goes back to the convenience of "giving the consumer what [he or she] wants." Hillshire, for example, produces a boneless ham in 1.75-pound and 3-pound sizes.
"We know that there are smaller families today, which means a smaller ham is very appealing," she points out. "There aren't a lot of leftovers and today's families want it that way."
Leathers notes that the industry is entering a period where low-fat and traditional ham items can peacefully coexist.
"You have both markets: People who want a 96 percent or 98 percent fat-free ham and people who want a bone-in and spiral-sliced ham," he says. "There is nothing wrong with that; it just strengthens the category."
With the advent of nutrition labeling, all processors concur that the regulation has not had adverse affects on sales or prices.
In fact, some believe nutrition labeling has had just the opposite affect.
"If anything, [nutrition labeling] has helped our products because they are trimmed extra lean [96 percent and 97 percent fat free]," Kitzmiller says. "They are nutritious values for consumers."
Processors also see ham being used on baked potatoes and as salad toppings. Farmland's Von Tersch says fast-food outlets such as McDonald's and Arby's are ordering diced ham products for salads.
As for non-meat ingredients, carrageenan, while still popular, is currently not in vogue.
"Ham is inexpensive, so there is less reason to use carrageenan," Von Tersch notes. "But if ham prices go higher, there will be an increasing demand to use extenders to decrease costs. But only if there is a certain segment of consumers that is looking for that type of product."
Make a note
Back at the supermarket, Petersen examines the plethora of hams available. True to form, her shopping list includes a whole ham and ham luncheon meat.
"It [ham] never stays around for long," she notes. "My entire family enjoys ham. Why go away from something if everybody likes it?"
Von Tersch echoes the consumer battle cry for ham. "There is a large segment of the population that wants ham lunch meat and that will always be there," he says. "It's always on top of the shopping list."
New ham products
Here is a listing of ham products unveiled by processors during 1994:
Brand name: Krakas Honey Baked and Honey Smoked Hams
Company: Atalanta Corp.
About the product: Both varieties are available in whole, half and quarter sizes.
Brand name: Deli Classics Thin-Sliced Ham
Company: Bryan Foods Inc.
About the product: Part of a line of ham and processed meats that are 97 percent fat free.
Brand name: Carando Spiral Sliced Ham
Company: Carando Inc.
About the product: Available in half and whole hams, this product is sold with glaze mix and a chrome-plated serving stand. It is precooked, and can be warmed or served cold.
Brand name: Hillshire Farm's Virginia Baked Ham
Company: Hillshire Farm & Kahn's
About the product: Cured with honey and brown sugar, it can be served hot and cold. Serving suggestions include using the ham in sandwiches, as a breakfast item, or as a dinner steak.
Brand name: HoneyBaked Ham Selected Slices
Company: HoneyBaked Ham Co. of Georgia
About the product: Each choice cut is freshly sliced off the bone while consumers wait, according to the company. The product is sold by the pound.
Brand name: Hormel Light & Lean 97 Smoked Flavor Ham
Company: Hormel Foods Corp.
About the product: A 97 percent fat-free, julienne-style smoked ham is sold in a 6-ounce Zip Loc package. "Whether used as a primary ingredient or as a quick topper on salads and baked potatoes, the strips of meat are highly versatile," according to the company.
Brand name: Jack Link's Honey Glazed Ham Steak and Jumbo Jack Stick meat snack
Company: Jack Link's Meat Snacks Inc.
About the product: Additions to the Jack Link meat snack line. The Jumbo Jack Stick is 14-inches long and teriyaki flavored.
Brand name: Jones Lean Choice Ham Steak-Extra Lean!
Company: Jones Dairy Farm
About the product: Packaged in its juices and in a vacuum pack, the product has 75 percent less fat, 60 percent fewer calories, and 25 percent less cholesterol than broiled T-Bone Steak, and 35 percent less fat than roasted chicken breast.
Brand name: Ticino Cured Ham
Company: San Francisco Sausage Co.
About the product: The hams come in mild and hot coppa, Prosciutto and Prosciuttino. Part of a nine-item deli line unveiled last year.
Brand name: Wilson Fresh Cuts Virginia Baked Ham and Honey Cured Cooked Ham
Company: Wilson Continental Deli, a division of the Doskocil Cos.
About the product: The Virginia Baked Ham is 95 percent fat free and the Honey Cured Cooked Ham is 96 percent fat fee. They are sold by weight in resealable clear plastic vacuum packs.
Brand name: Perdue Farms Cajun Turkey Hams
Company: Perdue Farms Inc.
About the product: Two 6-pound to 8-pound pieces of turkey ham, made from turkey thigh meat, are sold together in one package.
Brand name: Tanpacky Vegetable Sliced Ham
Company: YCM Associates Inc.
About the product: Produced in Japan and sold in the United States, the ham has neither artificial preservatives nor chemical seasonings. There is no animal fat, and it is low in cholesterol. It can be served raw or cooked, in salads or on sandwiches.
Brand name: Bryan Lunch 'n Munch Lunch Snack
Company: Bryan Foods Inc.
About the product: The line includes Bryan's Honey Ham. Part of the company's lunch snack line, the meal comes with fruit punch, Milky Way candy bar, and cheese and crackers.
Brand name: Swanson Great Starts Ham & Cheese Flavor Microwaveable Breakfast Burrito
Company: Campbell Soup Co.
About the product: The single-serving entree is packaged in a wrapper that describes it as "scrambled eggs, flavored with real ham and cheese."
Brand name: Maple Leaf Meats Ham 'n Cheese Pockets
Company: Maple Leaf Meats Inc.
About the product: Part of a line of microwaveable pockets, it is packaged in a 10-ounce box labeled "Extra Value! Larger 5-ounce size."
Brand name: Underwood Red Devil Honey Ham Spread, Crackers and Spreader
Company: Pet Inc.
About the Product: A honey ham variety packaged in a plastic wrapper.
Brand name: Totino's Piled High Ham and Cheese Hearty Pocket
Company: Pillsbury Co.
About the product: The frozen pocket is packaged in two-count, 9.5 ounce boxes. The advertisement states: "Take 'em from starved to stuffed."
Brand name: Edwards Frozen Hampanada
Company: S. Wallace Edward & Sons Inc.
About the product: A mixture of Virginia Ham, dough mix, seasonings and spices. It comes in three varieties-large cheese, large egg and small egg, and in 1-ounce and 4.5-ounce sizes. The company describes the product as ideal for gatherings or when a person feels like snacking.
Brand name: Jimmy Dean Ham, Egg and Cheese on a Muffin Sandwich.
Company: Jimmy Dean Co., a division of Sara Lee Co.
About the product: Available in boxes, it is one of three varieties of frozen single serve sandwiches.
Brand name: Weight Watchers Lunch On-The-Go
Company: Weight Watchers International Inc.
About the product: Ham and cheese pocket sandwich and hickory smoked ham and cheddar cheese pretzel sandwich are two varieties of the company's microwaveable sandwiches. They are advertised as "an option for people who want a great tasting, nutritious alternative, but don't have time to prepare lunch." They contain 5 grams to 8 grams of fat a serving.
Brand name: Armour Premium Lunch Makers
Company: Armour Food Co.
About the product: One variety is a 96 percent fat-free cooked ham. The refrigerated product is sold in 3.7-ounce plastic trays for rack display.
Brand name: Madalena's Masterpiece Calzone
Company: Calzone and Co.
About the product: The 10-ounce, microwaveable calzone, of which ham and cheese is one variety, is sold in boxes and four-packs in club stores.
Brand name: Red Baron's OvenStuffs
Company: Red Barn Frozen Pizza
About the product: Ham and Cheese Pockets is a new variety of the microwaveable frozen sandwich. The "premium" sandwich is sold in boxes containing two individually-wrapped, single-serving sandwiches.