All the Trimmings

To maximize sales and loyalty, grocers need to be ready for holiday meat and seafood demands.

Thanksgiving without turkey? Impossible!

Certainly, grocers see turkey sales spike as consumers shop their way through the fall and winter holiday season and make the stuffed, roasted bird the centerpiece of their festive tables.

But some retailers are seeing what might be a trend away from the traditional whole turkey toward other value-added varieties of the holiday fowl.

“It seems as though whole-turkey sales have peaked in the last few years, and I’m not sure whether this is due to increased prices or a change in consumer holiday activities,” says Kelly Mortensen, meat director for Salt Lake City-based Associated Food Stores Inc., a cooperatively owned wholesale distributor to about 600 independently owned supermarkets in an eight-state region.

“Are they finding a whole turkey too cumbersome to deal with in preparation for Thanksgiving? Are they going out more to have the meal prepared for them, or are they using more consumer-friendly turkey products such as turkey breasts or boneless turkeys?” Mortensen wonders. “Whatever the case, we are going to make sure we have all of the options available for our consumers to purchase.”

Associated has seen increased consumer interest in pre-stuffed and pre-cooked turkeys and turkey breasts, as well as an increase in spiral and butt shank hams for Thanksgiving. “I’m not sure whether they see them as a value item, or they are using them in addition to a turkey or in place of a turkey,” Mortensen says.

The folks at the National Turkey Federation don’t see any signs that holiday interest in their favorite protein is waning. According to the Washington, D.C-based trade organization, some 46 million of those turkeys were eaten at Thanksgiving, 22 million at Christmas and 19 million at Easter in 2011, according to the group’s most recent data.

Nearly 88 percent of Americans surveyed by the federation eat turkey at Thanksgiving. “Turkey consumption has nearly doubled over the past 25 years,” says group spokeswoman Peggy Albertson. “In 2011, per capita turkey consumption was 16.1 pounds, compared to 8.3 pounds in 1975.”

Likewise, BeefRetail.org data shows that meat sales accounted for nearly $3.8 billion in revenue in November 2012 and nearly $4.4 billion in revenue in December 2012, with this two-month total accounting for nearly 20 percent of total annual sales.

Gobbling Up Value

At Lakeland, Fla.-based Publix Super Markets Inc., fresh and frozen turkeys are top holiday sellers, as well as the retailer’s own specialty pork crown roast, says Maria Brous, director of media and community relations. “Whole pigs also sell well, and New York strip and beef rib roasts are always customer favorites. During the holiday season, we also offer our country dry-cured hams.”

Publix advertises special seasonal prices on top-selling favorites, Brous notes. “The holidays present a great opportunity to help customers with their family traditions,” she says.

Mortensen sees changes afoot in the meat department at Christmastime as well. “Premium beef roasts such as rib roasts are becoming more of a challenge to sell in today’s economy. They have almost doubled in price from a few years ago, and I believe consumers are switching to more of a value proposition such as ham and turkey,” he says.

For example, several retailers served by Associated have moved to a bone-in New York roast as their featured beef roast rather that the traditional rib roast, because they can reach a lower price point, Mortensen observes.

The National Pork Board aims to leverage price advantage in its holiday retail promotion. “As consumers are faced with high protein prices at the meat case, the ‘Spend Less to Impress’ campaign promotes loin roasts and spiral-cut hams as affordable options that are festive and easy to prepare for holiday meals,” says Patrick Fleming, director of retail marketing for the Des Moines, Iowa-based trade group. The promotion will include point-of-sale elements, including a meat case sign, static cling and an on-pack label.

“The economy, in my estimation, is curtailing what used to be a celebration at any cost, to a much more conservative approach to their holiday needs,” Mortensen asserts. “Still, shoppers are looking for those items that they do not generally splurge on to purchase in the holiday time frame. We believe they are still having the family gatherings and parties, so we need to be prepared to suggest and acquire the holiday items that they have traditionally purchased in years past.”

Steering the Market

David MacVane, assistant VP for Wooster, Ohio-based Certified Angus Beef, agrees that the most important ingredient in grocers’ holiday planning will be market economics.

“Price structure and cost of goods will determine a retailer’s position on what products, grades, brands and subprimals they’ll feature for the holiday season,” MacVane says. “More retailers will likely offer different quality and pricing levels, providing a choice for consumers. Others will lead their decisions by putting the best quality in the spotlight.”

Still, MacVane concurs that the holiday season is consumers’ time to splurge. “We don’t believe a customer is willing to trade quality for a small value difference,” he says. “The holiday season is a very important time for family gatherings and big dinners — high-expectation events. People are not willing to cut corners on special events and holiday meals. To save a dollar a pound on an 8-pound roast is $8. Why risk an entire meal for $8?”

The Certified Angus Beef brand is focusing on cuts “that bring the best quality and value to the case,” MacVane says. “You don’t need to downgrade quality and use less expensive cuts of meat.” Merchandising the top sirloin, he notes, “is still a great value and economic opportunity. Strip loin during the holidays is another great grossing opportunity that provides value.”

For some retailers, holiday planning has been under way for quite some time.

“Costco started asking us at the beginning of the year for center-of-plate, fourth-quarter holiday items, and we are delivering,” says Zack Levenson, senior EVP at Vernon, Calif.-based Golden West Food Group, which markets products under the Certified Angus Beef brand.

On deck this season from Golden West: Certified Angus beef Wellington in a 2½-pound loaf that serves six to eight people; a “steakhouse-style” New York Strip roast of similar proportions, stuffed with bacon, onions and mushrooms; bacon-wrapped filets; and Cornish game hens stuffed with wild rice, pecans and cranberries.

Meanwhile, Springdale, Ark.-based Tyson Fresh Meats is taking on the holidays with its Chairman’s Reserve brand of premium beef and pork products. Tyson is working with select retailers to promote the line with POS materials and holiday-themed recipes, says Kent Harrison, the company’s VP of marketing and premium programs.

Surf and Turf

Consumers enjoy high-end seafood selections during the holidays as well, making it the best time of year to sell it, says Associated’s Mortensen. “You should be stocked with specialty items such as king crab legs and all varieties of shrimp,” he suggests. “Now is the time to sell most varieties of exotic seafood.”

Seafood managers at Publix agree. “In our seafood departments, oysters are a top seller during Thanksgiving time, as some family recipes include oysters in the stuffing,” Brous says. “We also sell large quantities of cooked shrimp, lobster tails, and king and snow crabs. Seafood platters are also a favorite.”

Brands like Sea Best, from Jacksonville, Fla.-based Beaver Street Fisheries, aim to help their retail partners deliver new and exciting holiday meal ideas to their customers.

“This includes ensuring the typical holiday fare like shrimp is well stocked, as well as delivering seafood items that appeal to shoppers who are looking for something special yet easy to prepare for their guests during the holidays,” says Bluzette Carline, Sea Best director of marketing. “We have been working with retailers to understand how their customers shop the seafood case, and what executions would help increase the overall consumption of seafood both during the holidays and throughout the year.”

For the holidays, that includes shrimp, clams, scallops and lobster tails. “Some new offerings will include ready-to-prepare stuffed fillet items in larger portion sizes for families or entertaining,” Carline says.

The key to the holiday season this year, Mortensen declares, is to be ready for the business. “Although it is uncertain the amount of sales that will be generated, it is not a time to be conservative in your purchasing and merchandising efforts,” he says. “You have to bet on consumers coming to your stores, or you will be caught with inadequate supplies and not enough labor to handle the additional sales. Consumers do not forget a bad experience very easily, and especially when they are planning holiday gatherings and special events.”

“It is not a time to be conservative in your purchasing and merchandising efforts. Consumers do not forget a bad experience very easily, and especially when they are planning holiday gatherings and special events.”
—Kelly Mortensen, Associated Food Stores