Charting the course for future growth: when it comes to the supermarket's strategic plan for increasing fresh food sales, operators are realizing that emphasis in the deli must be on having prepared meals on hand for every meal occasion.During the last decade, the deli department has been at the forefront of the supermarket's battle with other retail formats for a share. This role will not change in the future. If anything, the deli's function will continue to expand as retailers showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. more prepared foods in their deli cases.Retailers are still trying to determine the best way to develop and market prepared foods. Is it more effective to create a combined deli/foodservice department, or should foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. be a separate entity? This issue becomes an even bigger deal as the store's prepared food operations grow larger and its products are merchandised further away from the central deli service case. In the majority of organizations the deli is still the central figure when it comes to the prepared food operations of the store--even if there are also separate prepared, or value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: , food operations coming out of the meat and seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. departments. Why so much emphasis on prepared foods, when the traditional deli department has always been a strong performer for the store? There appear to be three reasons. First, prepared Foods is where the department's growth is coming from. That department is also where the consumers will be spending a larger portion of their food dollars. Finally, it continues to be the section that adds the most excitement to the entire store. The deli/prepared foods department does not have the total sales that the produce and meat sections have, but delicious See social bookmarking. prepared meals and a pleasant eating environment can lure lure the skin-covered object which runs on a monorail on a Greyhound racing track and which the dogs are schooled to chase. The lure must be kept 30 to 40 ft ahead of the leading dog so that the field is stretched out. shoppers back into the store at a faster rate. As a segment, convenient meals grew to about $182 billion dollars in sales in 2002, with 50% of growth stemming stemming - stemmer from home meal replacement food sales, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Prizm Group, based in Fort Washington Fort Washington, military post during the American Revolution, situated on the highest point of Manhattan island, New York City, overlooking the Hudson River opposite Fort Lee, N.J. , Pa. Prepared foods also provide the highest gross margins in the deli department. They are also among the highest in the store, with an average margin topping 49%. Prizm estimates that out of the 52 billion meal occasions that will occur in the U.S. over the next five years, 42 billion of them will consist of--at least in some part--foods prepared outside the home, with many of these eaten on the run. The problem with prepared meal items is that the supermarkets Supermarkets, past and present, include: Transnational Originating (HQ) country first. The rest in alphabetical order.
Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and promotion of the products. Product selection starts with knowing the store's customers, which products they like, and what they will buy and at what price. Knowing the lifestyle of the store's customers and potential customers is paramount Paramount (pâr`əmount'), city (1990 pop. 47,669), Los Angeles co., S Calif.; inc. 1957. Originally a dairy region, it has become highly industrialized since the 1950s. . Consistent product quality is what sustains a prepared food program. Keeping a high level of perceived quality to consumers is much more important than how or where the products are actually prepared. Products that consistent consistently meet the shopper's expectation of taste and freshness, and perceived quality will override An arrangement whereby commissions are made by sales managers based upon the sales made by their subordinate sales representatives. A term found in an agreement between a real estate agent and a property owner whereby the agent keeps the right to receive a commission for the sale of questions about whether they were produced in the backroom back·room n. or back room 1. A room located at the rear. 2. The meeting place used by an inconspicuous controlling group. adj. 1. by master chefs or come to the store frozen in a cardboard box cardboard box n → caja de cartón cardboard box n → (boîte f en) carton m cardboard box card n → . Traditional deli With all the buzz 1. buzz - Of a program, to run with no indication of progress and perhaps without guarantee of ever finishing; especially said of programs thought to be executing a tight loop of code. around prepared foods, it is easy to forget about the traditional deli counter .The service deli, and to all increasing extent the self-service deli, is as vital a part of the supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. as ever. With sales of around $15 billion, the traditional deli section has been growing at about 5% to 6% a year for the past few years, a respectable rate for a mature store department. The "big three" of the deli counter has always comprised sliced slice n. 1. a. A thin broad piece cut from a larger object: ate a slice of cheese; examined a slice of the diseased lung. b. meals, cheese and salads. However, prepared chickens and other hot entrees recently have gained in share of deli sales. In fact, sales of both these prepared categories are expected shortly to surpass salad sales in the deli, and are threatening to overtake o·ver·take tr.v. o·ver·took , o·ver·tak·en , o·ver·tak·ing, o·ver·takes 1. a. To catch up with; draw even or level with. b. To pass after catching up with. 2. cheese sales as well. While prepared chicken is still the top entree choice, consumers are demanding a more diversified diversified (di·verˑ·s menu. There has also been a definite trend away for traditional sliced deli meats. Consumers aren't ready to give up on ham and salami, but they are looking for healthier versions of these products as well as versions that are made from top-quality cuts of meals. The premium grades now are selling as well as the standard grades in many stores, while the traditional "value" brands have been minimized min·i·mize tr.v. min·i·mized, min·i·miz·ing, min·i·miz·es 1. a. To reduce to the smallest possible amount, extent, size, or degree. b. Usage Problem To reduce. See Usage Note at minimal. in many supermarkets. Consumers are demanding that even a cheaper selection like bologna Bologna (bōlô`nyä), city (1991 pop. 404,378), capital of Emilia-Romagna and of Bologna prov., N central Italy, at the foot of the Apennines and on the Aemilian Way. is made with the best ingredients possible. They are also demanding products made with less salt and fat. Ethnic foods are a trend that continues to grow in the deli, with meats, cheese and side dishes from various nationalities lining the case. These dishes are commonly marketed in stores that have a local population of consumers from a particular ethnic group. However, the astute as·tute adj. Having or showing shrewdness and discernment, especially with respect to one's own concerns. See Synonyms at shrewd. [Latin ast operator will also market ethnic deli products to even if a specific ethnic group doesn't does·n't Contraction of does not. dominate the neighborhood. An astute retailer that has studied national eating trends and demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. can pick out a few ethnic dishes at a time and introduce them in the deli case. Evidence that this approach can work is seen in the huge popularity of Mexican foods in areas without consumers of Mexican descent descent, in anthropology, method of classifying individuals in terms of their various kinship connections. Matrilineal and patrilineal descent refer to the mother's or father's sib (or other group), respectively. and the nationwide sushi craze among non-Japanese consumers. The deli must actively merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain and promote its traditional categories. Deli operators must find the balance between serving the newer ethnic and healthy products, as well as the classic deli meats, cheeses and salads. Both the traditional and prepared foods sides of the deli have to be marketed as destination departments for the shopper. The idea of building the meal is as important to promoting the traditional deli as it is to the foodservice side of the case.
Brand Sales Within Deli Categories
52 weeks ending June 15 2003
Dollar Sales % change
vs. year ago
DELI $11,699,584,676 3.4
BREAKFAST MEATS 2,945,629,696 5.0
RFG BREAKFAST
SAUSAGE/HAM 905,636,480 5.4
JIMMY DEAN 217,467,792 -1.6
BOB EVANS 118,710,496 8.3
PRIVATE LABEL 59,260,104 4.8
TENNESSEE PRIDE 51,244,260 10.7
JIMMY DEAN FRESH
TASTE FAST 41,720,612 78.6
JOHNSONVILLE 41,106,568 3.6
FARMER JOHN 34,390,136 7.8
OWENS 26,345,964 9.7
HORMEL
LITTLE SIZZLER 25,154,858 -1.6
PURNELL
OLD FOLKS 22,412,108 11.2
RFG BACON 2,039,993,728 4.9
OSCAR MAYER 386,186,432 10.3
PRIVATE LABEL 364,563,616 -2.5
HORMEL
BLACK LABEL 138,174,944 4.9
BAR-S 73,073,744 2.0
SMITHFIELD 71,901,744 25.5
FARMLAND 70,771,680 4.3
GWALTNEY 64,801,360 14.9
WRIGHT 57,785,368 15.8
HORMEL 47,473,956 0.7
LOUIS RICH 46,827,724 4.8
DINNER SAUSAGE 1,514,417,792 3.4
RFG DINNER
SAUSAGE 1,514,417,792 3.4
HILLSHIRE FARM 374,811,424 -2.3
JOHNSONVILLE 155,862,304 6.2
PRIVATE LABEL 118,735,304 10.4
ECKRICH 114,306,720 12.2
BRYAN 41,235,844 -12.4
BAR-S 24,102,560 20.7
JOHN MORRELL 20,604,780 23.5
PREMIO 18,704,320 14.8
BUTTERBALL 17,592,122 6.6
BOB EVANS 15,764,918 2.9
FRANKFURTERS 1,763,146,496 1.8
RFG FRANKFURTERS 1,763,146,496 1.8
OSCAR MAYER 343,131,584 2.2
BALL PARK 290,240,640 1.6
PRIVATE LABEL 106,736,352 -1.6
BAR-S 106,685,920 6.3
HEBREW NATIONAL 79,614,120 11.8
NATHAN 57,829,996 13.9
BRYAN $54,587,076 4.2
ARMOUR $47,978,172 3.4
ECKRICH $39,642,252 0.3
KHANS $34,658,536 -8.5
LUNCHEON MEAT 3,285,589,504 1.1
RFG SLICED
LUNCHMEAT 3,039,532,544 0.9
OSCAR MEYER 785,187,136 -1.9
PRIVATE LABEL 469,667,104 1.1
BUTTERBALL 157,440,752 3.8
HILLSHIRE FARM
DELI SELECT 130,801,392 6.5
BUDDIG 116,176,648 6.2
LOUIS RICH 91,870,064 -17.3
LAND 0' FROST 72,962,168 -0.9
PREMIUM
BAR-S 72,071,816 37.2
BRYAN 59,843,952 -9.3
HORMEL 58,916,520 1.8
RFG NON-SLICED
LUNCHMEAT 246,056,944 3.5
HICKORY FARMS 19,330,150 18.1
OSCAR MAYER 12,075,027 -3.2
HEBREW NATIONAL 11,054,145 1.7
PRIVATE LABEL 10,772,557 12.3
HILLSHIRE FARM 10,434,269 -5.7
JOHN MORRELL 9,942,487 40.0
FARMLAND 8,880,900 -10.3
OLD WISCONSIN 8,787,318 10.0
KHANS 8,532,101 -5.5
SCHWEIGERT 8,399,150 -1.7
MEAT PIES 20,489,012 -7.4
RFG POT PIES 20,489,012 -7.4
MRS BUDDS 16,750,503 -5.7
PRIVATE LABELS 2,638,909 -17.5
MAILHOTS BEST 236,000 -13.5
MORRISON 191,416 40.4
LANDRY 156,523 1.8
HOMEMADE
BRANDS FOOD 83,508 16.4
MORTIMERS 77,268 -51.7
LACASSE 74,128 41.6
DIMITRIA 65,934 -2.3
ARISTROCRAT 11,417 *
RFG SALAD/
COLESLAW 349,736,032 8.2
PRIVATE LABEL 149,915,008 -1.2
RESERS 41,077,904 45.9
FRESH EXPRESS 31,703,888 28.1
DOLE 29,497,172 13.2
BLUE RIDGE FARMS 10,758,765 -18.1
MANN'S
SUNNY SHORES 7,011,032 64.1
GREEN HILL 3,834,340 -1.0
YODER'S 3,609,639 -4.8
RIVER RANCH 3,464,624 $5.3
FROSTY FRESH 3,339,451 45.7
Unit sales % change
vs. year ago
DELI 4,452,690,428 2.2
BREAKFAST MEATS 1,015,854,080 5.6
RFG BREAKFAST
SAUSAGE/HAM 354,295,520 6.7
JIMMY DEAN 75,416,136 -1.9
BOB EVANS 35,638,556 12.7
PRIVATE LABEL 27,219,020 6.2
TENNESSEE PRIDE 17,315,808 11.0
JIMMY DEAN FRESH
TASTE FAST 14,276,404 78.3
JOHNSONVILLE 13,016,858 3.1
FARMER JOHN 24,643,210 7.4
OWENS 9,072,282 14.8
HORMEL
LITTLE SIZZLER 18,183,640 -1.7
PURNELL
OLD FOLKS 6,114,094 18.9
RFG BACON 661,558,592 5.0
OSCAR MAYER 97,408,776 12.2
PRIVATE LABEL 127,389,880 4.2
HORMEL
BLACK LABEL 37,144,292 0.6
BAR-S 28,688,480 2.2
SMITHFIELD 24,604,946 23.3
FARMLAND 23,503,582 6.7
GWALTNEY 24,969,380 16.5
WRIGHT 10,458,068 13.3
HORMEL 10,656,580 3.1
LOUIS RICH 17,469,416 0.4
DINNER SAUSAGE 476,840,736 4.7
RFG DINNER
SAUSAGE 476,840,736 4.7
HILLSHIRE FARM 117,387,728 1.4
JOHNSONVILLE 37,031,616 8.3
PRIVATE LABEL 40,403,084 11.0
ECKRICH 38,304,928 14.1
BRYAN 12,663,534 -13.7
BAR-S 7,178,056 23.5
JOHN MORRELL 8,658,021 26.5
PREMIO 5,264,283 17.5
BUTTERBALL 6,754,363 7.2
BOB EVANS 4,647,241 8.5
FRANKFURTERS 835,867,456 2.2
RFG FRANKFURTERS 835,867,456 2.2
OSCAR MAYER 121,425,344 0.4
BALL PARK 99,523,928 1.3
PRIVATE LABEL 68,801,224 -0.2
BAR-S 103,731,552 5.9
HEBREW NATIONAL 20,912,278 10.0
NATHAN 16,593,446 15.4
BRYAN 25,071,136 8.4
ARMOUR 28,092,030 9.5
ECKRICH 19,306,856 2.1
KHANS 12,880,262 -4.9
LUNCHEON MEAT 1,419,127,040 -1.0
RFG SLICED
LUNCHMEAT 1,345,466,880 -1.1
OSCAR MEYER 288,485,632 -3.2
PRIVATE LABEL 254,656,240 -1.7
BUTTERBALL 59,118,960 3.8
HILLSHIRE FARM
DELI SELECT 58,472,116 3.4
BUDDIG 99,872,144 -6.9
LOUIS RICH 35,373,412 -19.4
LAND 0' FROST
PREMIUM 18,379,916 0.3
BAR-S 36,536,104 38.2
BRYAN 27,278,268 -3.7
HORMEL 18,271,002 1.5
RFG NON-SLICED
LUNCHMEAT 73,660,008 1.1
HICKORY FARMS 3,434,040 18.6
OSCAR MAYER 5,532,206 -5.8
HEBREW NATIONAL 2,506,887 -0.2
PRIVATE LABEL 3,803,794 12
HILLSHIRE FARM 3,737,785 -7.5
JOHN MORRELL 2,922,227 18.3
FARMLAND 1,775,828 -3.5
OLD WISCONSIN 2,526,422 3.1
KHANS 2,950,916 -8.1
SCHWEIGERT 3,226,547 -1.3
MEAT PIES 4,674,732 -8.7
RFG POT PIES 4,674,732 -8.7
MRS BUDDS 3,580,018 -5.3
PRIVATE LABELS 810,930 21.4
MAILHOTS BEST 70,122 -14.1
MORRISON 52,253 46.3
LANDRY 28,660 0-8
HOMEMADE
BRANDS FOOD 14,577 11.7
MORTIMERS 18,451 -53.7
LACASSE 20,714 21.7
DIMITRIA 15,187 -5.2
ARISTROCRAT 1,678 *
RFG SALAD/
COLESLAW 164,973,552 6.1
PRIVATE LABEL 65,425,824 -4.8
RESERS 15,289,588 55.6
FRESH EXPRESS 20,404,186 21.5
DOLE 20,370,680 11.5
BLUE RIDGE FARMS 4,919,187 -16.4
MANN'S
SUNNY SHORES 3,474,830 63.5
GREEN HILL 1,599,385 -2.0
YODER'S 1,452,243 -5.1
RIVER RANCH 1,899,736 1.8
FROSTY FRESH 833,838 37.7
Percent of adults buying
hand-held food by age group
18-24 28%
25-34 21%
35-44 21%
45-54 12%
55-64 11%
65 & older 7%
Percent of adults who indicated they are
ordering more spicy dishes in restaurants
18-24 29%
25-34 17%
35-44 19%
45-54 17%
55-64 11%
65 & older 7%
Percent of adults who indicated they
are ordering more takeout items
18-24 26%
25-34 24%
35-44 21%
45-54 13%
55-64 13%
65 & older 5%
Percent of adults who say they
are busy so convenience is critical
18-24 19%
25-34 20%
35-44 19%
45-54 16%
55-64 15%
65 & older 11%
Source: Prizm Group
Note: Table made from pie chart.
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