Branding the meat case: from commodity to value added, retailers are discovering new ways to promote the meat case.

Brands are beginning to rule the meat case--and the timing couldn't be better. With growing food safety concerns and an endless number of product recalls that could erode consumer confidence, retailers are working with their suppliers to make consumers more comfortable with their meat offerings.

To create a point of differentiation and meet consumers' need for convenience and valueadded products, retailers are competitively repositioning their meat departments as destination centers. But experts caution retailers not to stop at product assortments when promoting the meat case, citing the importance of department aesthetics, employee training and special events like cooking demos as essential branding components.

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Officials at Ukrop's Super Markets under-stand this approach. The Richmond, Va.-based retailer has created a successful meat department by leveraging its name and reputation. The Ukrop's Own Beef label is a USDA Process Verified, ranch-to-retail food safety program. Company officials say since they have launched the program, it has already paid for itself. Ukrop's also has its own pork and chicken process lines. "We have found the best brand for us is our own name," says Alan Warren, director of meat and seafood at Ukrop's. Warren believes branding, done properly, can give a retailer the advantage of exclusivity. "If a retailer can secure or create a successful brand that its customers can only purchase at its stores, [the retailer] has a real advantage over all the competition."

Ukrop's complements its own store brands with other successful consumer brands. The retailer features Certified Angus Beef (CAB) for customers who prefer traditional full beef flavor of this highly marbled premium choice product. Ukrop's carries Perdue chickens, also considered a premium brand in their marketplace. "We also offer a variety of natural meat products that contain no antibiotics and no added hormones. This section features Coleman Natural Beef and Pork, Amish Select natural chickens and Han's All Natural Sausage," notes Warren.

While branding can accomplish many things, it is primarily helping retailers change meat from strictly a commodity sale, note observers such as John Allen, Michigan State University professor emeritus of food marketing in East Lansing. "Stocking the meat case primarily with non-branded, commodity-quality fresh cuts once was considered the only choice. As a result, profitability fluctuated and was hard to predict," says Allen. As retailers find success branding other perishable departments, he believes many now see how brands can also be an important profit center in the meat case.

"Compared to where we were a decade ago, there is an incredible amount of branding going on today in the meat case. Programs are continuing to change and evolve to a point where everyone is benefiting," says Tom DeMott, managing partner with San Ramon, Calif-based Encore Associates and former vice president, corporate meat merchandising, at Safeway.

Beef producers responded by creating added-value beef products. Unlike the downscaled meat programs of the past, today's retailer meat case features products with improved taste, texture and performance. CAB, Sterling Silver, Angus Pride, Black Angus, Laura's Lean and other branded beef programs are creating the expectation that there is a better beef eating experience. Assortment mixes now feature a combination of these value-added products along with a variety of processor and retailer brands and traditional, non-branded meat cuts, creating a something-for-everyone approach.

Ukrop's officials find suppliers are eager to help them create brand awareness through marketing programs, advertising and demos. "It is truly a win-win situation. This is true whether you want to create a private label brand using a unique product specification, such as our Ukrop's Own signature items, or in the case of national brands, which give us exclusivity in our market," says Warren.

In fact, much of the branding that has gone on in the last five years has to do with the increase in available quality cuts. Kroger, for example, launched Cattlemen's Collection about two years ago, and Safeway has its Rancher's Reserve label, both of which are sold on a quality platform. Just recently, Albertsons launched the Blue Ribbon brand of aged beef. "Certainly, Wal-Mart and club stores have fueled the interest to take the meat case beyond its commodity status, but I believe the real shift in mindset occurred with the introduction of brands such as CAB," says DeMott.

An increasing number of retailers, including Schnucks, QFC, Buehler's, Acme and Raley's, are adopting CAB as their store brand. "The desire of every retailer is to identify and meet the needs of consumers so they will continue to shop there," says Al Kober, director of CAB's retail division in Wooster, Ohio. "Retailers are looking for ways to be different from their competitors, and brands are a way to communicate value and quality to customers. For us, it is all about giving consumers choice and an enjoyable eating experience every time. To do that you have to start with a quality product--only eight out of 100 cattle are typically selected as CAB," notes Kober The company produces point-of-sale materials and can provide demos, in-store videos and sales plans to help retailers accomplish branding initiatives.

In short, retailers are working with vendor partners to help identify the meat specifications and procedures they want in place and take on the responsibility of merchandising and marketing the meat case at store level. Featuring a value line and a higher-quality product is enabling retailers to meet a host of consumer needs and remain competitive at the same time. "By offering higher-quality products that provide more consistent eating experiences for their consumers, retailers can better compete in perishables," notes DeMott. "Given that the majority of beef is still brought into stores in whole form, there is a huge opportunity for additional branding here."

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Jay Theiler, strategic marketing manager for Boise, Idaho-based Agri Beef Co., which markets the Snake River Farms, American Kobe beef and American Kurobuto Pork brands, believes quality has jumped to the forefront because the demand is finally there. As a medium-sized company focusing on regional, niche grocers, Agri Beef Co. believes in the importance of helping retailers understand these and other trends and regularly meets with store-level personnel. "We are attempting to raise the bar on both retailer and consumer trust in meat products. Given the recent events concerning mad cow disease, it has become increasingly important that all of us are on the same page as far as value and quality are concerned," says Theiler.

Aside from quality, the variety and increase in value-added products are also helping retailers brand the meat case. Hormel, for example, is offering a line of trimmed, boned, marinated, flavored case-ready meat products to grocers. In addition, the company's Cure81 brand has undergone continued refinement in taste, texture and color, and its availability in smaller sizes appeals to smaller households. Hormel's line of bacon has grown to include a variety of flavors, thicknesses and premium cuts.

While the traditional meat case is ripe with opportunity, so too is the frozen meat section, notes Bill McPherson, vice president of sales and marketing for Advance Brands in Oklahoma City. The company's products feature fully cooked meal kits and dinners similar in style and quality to casual dining options. Its Fast Fixins and Easy Beginnings brands address the need for consumers who are looking for carry-out options. "Frozen meat staples are the biggest growth area right now," says McPherson. "We offer a hot meal solution for consumers who are addressing the what's for dinner question at the last minute." He says featuring demo tastings with a chef and establishing a "to-go" section in the freezer help keep products like these top of mind with shoppers.

BEYOND THE PRODUCT

While it's true that products are an integral part of a branding program, observers say retailers need to look beyond the product when determining the direction of the meat case. Branding expert Karen Post says retailers must remember the products they carry are just part of the brand equation. Post was recently a presenter on this topic at the AMI/FMI Meat Conference in March. "The brand is the sum of everything you do and stand for. It is what your customers think when they see your name, it is what they feel when they are in the store and what they expect when they pick you over one of your competitors," says Post. "Too many retailers are afraid to be different. Quality is not enough of a point of difference."

How can retailers differentiate what they do? Post says they must engage the customer. From the flooring to the signage and props, making the meat department stand out in appearance is critical. It can be as simple as using different colored tiles on the floor in front of the meat case or having meat department employees wear special uniforms that set them apart. The goal, she adds, is to create two-way dialogues, not one-way transactions.

Michigan State University's Allen believes retailers would also be wise to develop a solution selling approach in the meat case. He says very few retailers truly understand their customers' values and needs and aside from a few signs, most retailers do not merchandise this department. "With all the new products coming out it is imperative they start to make changes," notes Allen. He and others say the biggest mistake retailers can make is placing new products in the same meat cases that have been there for years. "By doing that they emphasize the commodity element and create a case that basically looks the same," he adds.

Going the extra mile is vital to a successful department, says Randy Irion, director of retail marketing services for the Denver-based National Cattlemen's Beef Association. Branding by definition, says Irion, means doing something distinctive from everyone else. "As such, elements like training and education are vital, as is personalizing the section," he says.

Like Irion, Heather Buckmaster, director of marketing for the Colorado Beef Council, believes it is critical that retailers work with the meat case staff through training and development so they are able to communicate the benefits of the brand to consumers. "As part of their commitment to the brand and to their consumers, retailers need to focus on building enthusiasm with their staff for the brand," says Buckmaster.

While many industry observers refer to the changes in the meat case as an evolution not a revolution, they agree that, over time, the industry must constantly change. "Consumers spend more time in this department than any other in the grocery store. That fact alone creates a unique selling opportunity for retailers," says Irion. "Anything retailers can do to assist customers in the selection, preparation and cooking of meat products will be viewed as a positive."

RELATED ARTICLE: HEB BRANDS ITS MEAT

While some retailers struggle to figure out what the meat department means to them, officials at San Antonio-based H.E. Butt Grocery Co. (HEB) understand the role meat plays in their customers' lives. They also understand that branding goes beyond having the right meat assortment and encompasses unique, value-added features. "HEB realizes that products are just one part of the equation. [The retailer] knows that to be an effective meat merchandiser it needs to make the meat shopping experience a success," notes John Allen, Michigan State University professor emeritus of food marketing.

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Among the many things HEB does to brand the meat department and convey its dedication to helping its customers make a selection include:

* COOKING CONNECTION: HEB created this in-store demo area as a place consumers can go to learn and ask questions about meat. Here shoppers find dinner ideas, learn how to prepare meats successfully and pick up the main ingredients to a featured dish. Special pricing is available for consumers interested in purchasing bundled meal items.

* SIGNAGE: Posters highlighting HEB's labeling effort can be found throughout the department. The labels show consumers how to cook the meat and list preparation steps, cooking options, cooking time, product description and thickness. Their goal is to help customers succeed with meat products in the home. The program has resulted in a strong meat reputation and repeat sales.

* MEAT COUNTERS: Service still rules at HEB. Shoppers can have their requests fulfilled for special cuts and have questions answered here. Niche products such as natural meat, certified breed products and higher-grade cuts are merchandised here, creating a butcher shop-like presence.

* FOCUS ON CONVENIENCE: Whether it is the wide selection of pre-cut meats ideal for stirfrys or Mexican dishes or the emphasis on fully cooked products, HEB recognizes consumers' time is valuable. Aggressive sampling is offered to shoppers during peak periods when they are busy and concerned about dinner plans. These actions have helped the chain achieve strong sales despite the higher price tags these items typically carry.