Tag: Meat

Understanding The Psychology Behind Private Label Food Brands

Posted on February 17, 2019

For grocery retailers, the competition for sales has increased dramatically within the past ten years, with dollar stores and convenience retailers increasing the amount of every day food products that they provide consumers. The ‘pop in’ shopping experience is often viewed as easier for common food items, and American grocers are starting to feel the impact of this increased competition on their sales revenues.

There has never been a better time to invest in the development of unique, price conscious and trending fresh meat and frozen products, and as an international meat processor with extensive experience in private label branding, we’d like to share some industry insight and food for thought, about developing a new revenue stream with quality meat products.

The Appeal and Demand for Private Label Brands

The average American spends more than 6% of their net income on groceries, or about $300 per month according to some studies. Does that sound like less than you spend per month on groceries? The data reflects that most low- and middle-income households are trying to stretch their grocery dollars as far as possible, and that means hunting for better bargains when they shop for food.

The caveat is that American consumers are more aware today, than ever before, about nutritional value and quality. While on a limited grocery budget, they do not expect to purchase the highest level of quality, without paying a premium price. However, they also (on average) do not want to purchase food that may be low in nutritional value, or items that do not taste as good as some of the brand leading products that they have grown up on.

Private label brands assure the consumer that they are getting quality, without paying a premium price. If they have a favorable opinion about their favorite grocer, they trust that quality has not been compromised while manufacturing a private label food product. And they appreciate the price break that helps them stretch their grocery budgets further.

Millennial’s Love Private Label Brands

The next up and coming influential shopping segment, millennials are selective about the foods they purchase and the brands they choose. One of the most interesting things about millennials in terms of their purchasing trends, is that they are educated about branding, promotional advertising and online marketing.

That means that your average millennial shopper is more likely to not “believe the hype” when it comes to glossy big brand marketing. They are economically stable, but frugal and discerning about their budgets overall. And that means finding value and reducing costs wherever they are able to; and that includes trimming the fat from their monthly grocery budgets.

Some interesting new research supports the preference that millennial shoppers have for private label brands. One study conducted in 2018 “The Branding of Private Label” published by the Cadent Consulting Group, discussed that private label brands would hit a record high of over 18% of products purchased in American grocery stores that year. The average shopping cart is comprised of 25% private label brands, but for millennials, the number actually averages over 32%.

In addition to that increased number of private label brands that millennial grocery shoppers are choosing, they also indicated in the survey that they intend to purchase more, stating faith in the quality of products that carried the same name as the grocer they chose to frequent. There is a level of trust and appreciation for quality and understanding of price consciousness and value.

Food retailers are responding quickly to this purchase preference and opportunity. One of the most successful tactics used by private label grocery brands, is to visually improve the appearance of the packaging to closely mimic major brands. It is not to mislead the consumer, but rather to provide the same emotional experience that they enjoy when purchasing a major national brand.

Millennials want to experience the same satisfaction of putting a high-end brand leader in their cart or basket, without paying the price. But for these shoppers, the appearance of the packaging enhances their satisfaction and purchase experience.

While brands have focused on the Baby Boomer population segment for decades, as the consumer base with the most spending power, there are currently 83 million millennials (according to the last U.S. Census data) in America, compared to 75 million Baby Boomers. But as parents of young families, the millennial segment has increased grocery spending in the past five years, and that trend is expected to continue. Your sales growth as a grocer will depend on the ability to appeal to millennial food shoppers, and their growing family needs, and price and budget sensitivity.

Creating a New Private Label Brand of Meat

At Miami Beef® we have been the silent industry partner and resource for grocery chains across the United States, and internationally since 1973. We provide an in-house research and design team that helps grocers innovate trending and high-demand products, that can be added to the fresh or frozen meat section.

We begin by identifying gaps and opportunities for the grocer and provide a list of products such as turkey burgers, beef burgers, or exceptional premium American Style Kobe or Wagyu products, that appeal to different consumer segments.

We work with our retail customers to innovate delicious frozen meatballs, premium fresh grass-fed ground beef (in 1 lb. packages), steaks, chops, beef water and fajita sliced beef and more. We can customize the seasonings to help grocers create a product that is differentiated from major brand offerings, and our branding team can also assist with package design and more.

If you have considered creating a private label brand for your grocery store or chain, studies show that it is a lucrative business opportunity with high sales potential for grocers. It is also a good way to expand your brand awareness as a food distributor or retailer, by developing family-friendly and budget conscious foods that your customers will enjoy.

For more information on our private label branding services, visit our website and contact us to schedule a meeting with our research and development team. Miami Beef® can help you innovate delicious flavors, profitable meat products and a new line of private label fresh or frozen meats that your customers will love.

Balancing the Assortment of Prime and Economical Meat Selections

Posted on August 19, 2018

In January of 2018, Fortune magazine published an article title “Beef Will Always Be King: Americans Are Set to Eat More Meat in 2018 Than Ever Before”. For the meat industry, the news couldn’t be better, and it was consistent with our findings over the past decade; meat consumption levels are going up, as consumers recognize the value and importance of a high-protein diet.

In fact, the U.S. Department of Agriculture reported that the average consumer ate 222.2 pounds of red meat and poultry in 2017 alone, which surpassed a previously set record in 2004. Other high-protein foods including dairy (cheese and milk) and eggs are also increasing in demand steadily.

How does this information and trend impact grocery store purchase strategies for 2018 and 2019? It is time to take a look at the pricing and cost of your beef, chicken, pork and turkey products, but also at the product assortment that you are currently offering your shoppers.

At Miami Beef® we have been a trusted wholesale provider of quality meats for over 100 years. Serving the restaurant, institutional and grocery retail sectors, we have some valuable insights to share about evaluating the breadth of fresh and frozen meat products you provide your customers. Stay competitive, by having the best assortment of meat for your shoppers.

Avoid Budget Exclusion in the Meat Section: Developing a Competitive Pricing Strategy

For a grocery store to be successful, they must cater to all consumers regardless of their budget. One of the biggest oversights (even by large and successful grocery chains) is price exclusion. And in most cases, it starts where some of the highest priced food products reside; in the fresh meat section.

It is easy to define your fresh meat pricing strategy based on national averages. For instance, the average American household with two full-time incomes, earns approximately $56,516 per year according to 2015 data from the last U.S. Census. However, household income changes depending on the age of the individuals and varies greatly from the average rate.

For example, in recent data from the Bureau of Labor statistics in 2017, the actual earning averages are significantly lower.

Aged 16-19 years: $422 weekly and $21,944 annually
Aged 20-24 years: $525 weekly and $27,300 annually
Aged 25-34 years: $776 weekly and $40,352 annually
Aged 35-44 years: $976 weekly and $50,752 annually
Aged 45-54 years: $975 weekly and $50,700 annually
Aged 55-64 years: $966 weekly and $50,232 annually
Aged 65 years and up: $904 weekly and $47,008 annually

The U.S. Department of Agriculture reported that American spend an average of 6% of their total net income budget on food, and an additional 5% of their budget on dining out. That means 11% of total net income is required for food and beverage needs.

Taking a mean age of 35-44 years and the average monthly income of approximately $3000, the reality of the cost of groceries and budgeting for family needs becomes much clearer. It works out to be $180.00 per month on groceries, or just under $400 per month for a two-income family with an average of four individuals (two children) within the household.

Many retail grocery stores prefer to select only premium cuts of beef (for example) in their fresh or frozen meat sections. However, while having premium cuts is essential for a small niche of affluent consumers, this strategy excludes medium to lower income families, who are looking for more economical options.

Some food for thought, when considering the product assortment of beef, pork, chicken and turkey you purchase for your retail grocery store. Yes, there is a quality difference between premium cuts and more economical alternatives, but consumers depend on that cost variety to help make ends meet. Starting in the meat section.

How to Find Good Quality Economical Meats for Your Grocery Store

Just as consumers have to source many options to stretch their budget, so too should grocery chains evaluate numerous suppliers on competitive pricing. This should be done on a biannual basis, to survey and modify your pricing strategy, and evaluate new wholesale processors that can help you meet the demand for quality and value.

Ground Beef

As a base for everything from savory chilli to hearty sauces, ground beef is the mainstay of many great home cooked meals. The fat content naturally determines price point, but make sure to offer a variety of blends from premium extra-lean to standard and economical higher fat and lower priced options.

Steak

Everyone wants to enjoy the savory flavors of grilled steak, and some consumers are definitely eager to pay extra for premium cuts. Profitability margins on the premium cuts are highest for grocery stores and they are a prestige item. However, they are also significantly out of the reasonable price range for most large families.

The difference between premium beef steaks and economical varieties, has to do with the age of the beef, the fat marbling and tenderness of the meat product. Market the medium to lower grade beef steaks with education and product placement, to help educate consumers about appropriate cooking times, marinades and methods to achieve tender and delicious results, with more economical cuts of beef that are budget friendly including:

Chuck Eye (fifth rib next to the rib eye cut)
Flat iron steak
Tip sirloin
Chuck arm steak (braising only)

Grocery stores and product position marinades and signage at the point of purchase, to help consumers get great results, with economy grade beef steaks. Installation of a scan and go app in the meat section, can also provide recipe suggestions while enrolling your customer for email communications and future grilling tips. Help them create great culinary results on a budget.

Chicken

Chicken breasts, boneless chicken patties and wings are three of the mostly highly priced varieties of packaged fresh poultry for consumers. But did you know that bone-in chicken thighs (skin on) are some of the most delicious and tender chicken types for backyard grilling? Market the economical cuts of chicken with meal suggestions, recipe booklets and other resources for consumers.

Turkey

Frozen turkey burgers are the next ‘big thing’ for meat eaters who want a little change and alternative to all-beef patties. Ground turkey meat is also popular for soups and homemade meatballs. Think beyond the coveted (and expensive) turkey breast for economical cuts that are in demand.

If you are looking for expert advice regarding new and economical meat products to augment your fresh or frozen food section, contact us today. Miami Beef® has the processing experience and capacity to serve national and international wholesale customers.

How Restaurants Can Add More Meat to the Appetizer Menu

Posted on July 25, 2018

Did you know that a restaurant that offers a healthy assortment of meat and fresh vegetable entrees that are low in carbohydrates and high in protein and nutritional value, are the top choice for consumers? From the proliferation of eating trends like the keto diet, to individuals who follow low-carbohydrate meal plans for food health (such as the Whole 30 or Atkin’s Diet), consumers have never been more aware of the value of protein rich meals.

And the restaurant industry, needs to listen carefully and respond to that trend and growing demand for low carbohydrate meals. While many menus are carefully balanced to provide flavors and assortment that appeal both to customers and to profitability margins for the business, the pressure to increase high protein content menu items is not without concern for restaurant owners and investors.

How do you appease the growing demand for protein on food service menus, while avoiding increased cost per meal inflation due to rising costs of natural proteins like chicken, beef, pork and turkey? By innovating new recipes on your appetizer or bar menu.

Changing the Appetizer Menu to Appeal to a Broader Range of Customers

Appetizers have not always been a healthy start to a fun and nutritious dining experience for restaurant goers. In fact, if you evaluate the menus of many fast-casual and family dining establishments, they tend to be snack food oriented. A few healthy salads, but other carbohydrate laden offerings including hot bread sticks, loaded potato skins, deep fried mushrooms, tortilla chips, queso and salsa, mini-flatbread pizza’s, wraps, spring rolls and similar offerings.

The limitation of appetizer variety is a missed opportunity and revenue for restaurants. Individuals with dietary restrictions including diabetes, Celiac disease, and gluten intolerance typically have one choice; the salad. And one of the most traditional protein friendly appetizers (the chicken wing) is a less profitable choice for restaurants, as the cost of the speciality meat has continued to increase for wholesale customers.

What if we could change the options provided on an appetizer menu, to offer more nutritionally balanced options that focus on hearty beef, turkey or pork meat instead? In terms of economy of scale and pricing strategy, appetizers can be profit centers if the customer sees additional nutritional value worth paying a ‘little extra for”. It sounds like a win/win for both the diner and the food service establishment.

Finding the Right Carnivorous Appetizers for Your Establishment

Using principles of economies of scale, it makes sense for restaurants to offer appetizers which share most (or all) of the same ingredients used to prepare lunch and dinner entrees. This helps reduce food spoilage and increase volume discount purchasing for the restaurant.

The next step is to identify creative appetizers that fit the culture and theme of your restaurant. If you operate a scratch kitchen where ‘anything goes’ as far as the Chef’s selection of food fusion, you have more flexibility than a specialty restaurant, with a narrower focus.

What kind of appetizers are restaurant diners talking about? Here are three protein rich (and low-carb) recipes and ideas you may want to consider:

Asian Turkey Meatballs

With a sweet and savory Asian inspired sauce, these red-meat alternative meatballs can become a hearty and satisfying appetizer for any restaurant. Garnish with fresh green onion and sesame seeds, with a little extra sauce on the side for dipping. Get the recipe.

Source Web 2018: chefsavvy.com

Low Carb Steak Fajita Roll-Ups

Flank steak surrounds delicious fresh peppers and sweet red onions to eliminate the extra carbs of a tortilla roll. Try this recipe for a savory beef appetizer, that is elegant and unconventional with all the great Mexican flavors your customers crave.

Source Web 2018: aspicyperspective.com

Chorizo and Cheddar Stuffed Jalapeño Poppers

When you eliminate the cream cheese filling and the battered exterior of the classic popper, you create a new appetizer that is friendlier to low-carb and gluten restricted diets. The robust flavor of Chorizo makes this popper a great appetizer or bar menu item, and it is really satisfying.

Source Web 2018: alldayidreamaboutfood.com

Remember, appetizers are not only a preview to the main menu. Increasingly individuals are quick-dining and ordering appetizers for lunch, or as part of bar service later in the evening. Coordinate your appetizers with alcoholic and non-alcoholic complimenting beverage suggestions, to increase your per-customer transaction value.

Marketing New Low Carb Menu Appetizers: Get Social with Your Apps!

When you look food service menus, the ‘healthy eating’ suggestion section is usually quite small. It’s good to see those heart healthy and lower fat or calorie menu suggestions as a courtesy to patrons. But where the intention falls short, is that the meals are with few exceptions, not as palatable or appealing as the less healthy entrees and appetizers.

Stepping into the decision-making process of the restaurant customer, who would really like to order a carbohydrate rich entrée, such as a pasta or personal pizza, wouldn’t it make sense to balance the nutritional value of the meal by offering a healthy protein appetizer? And that is one way to market a new menu that promotes high-protein meals and starters.

After you have decided on the new protein appetizers you plan to offer, there are a few ways that restaurant owners can encourage customers to try them out. First, in the waiting or reception area, use signage or POP advertising to announce the new appetizers. Some studies have demonstrated that displaying pictures of appetizers before the guest is seated, strongly influences the purchase decision to order an appetizer (rather than skip to the main entrée).

Another method of soft promotion for appetizers is through the wait staff. Not only should they announce the specials, but they should encourage guests to try out the new appetizers. If you are marketing based on a healthy eating theme, it’s important for wait staff to be able to quickly answer questions about calories, carbohydrates and protein content per serving. That information should also be provided on the menu for customers.

Some restaurants launch a test menu of new appetizers, adding 1-3 different varieties to the menu at the same time, while asking for patrons to vote on their favorite one. This is a great way to ensure that the new appetizers create a fan like following, and helps to boost sales volume, if your customers were involved in the approval process. It feels good to be asked for an opinion, by your favorite restaurant, and to be part of deciding what to keep and what to remove from the menu.

Host a promotion incentive to get your patrons sharing your new appetizers on Instagram! Customers can be your biggest advocates and word of mouth (WOM) advertisers. Make it fun, or make it competitive with tangible rewards, like gift certificates for a complimentary appetizer. Run an advertising campaign that encourages customer feedback and participation, in exchange for a coupon code to discount their next meal in your establishment.

What does your restaurant or establishment serve for appetizers on your menu? Leave us a comment on our blog or visit our Facebook page to share with us. We’d enjoy hearing your suggestions.