November 3, 1999 - Processed Meats Still Key Segment Of The Deli, Study Says

by Bryan Salvage

Biggest draw in the deli? It's meat, any way you slice it.

In fact, a Supermarket Business Deli Operations Review showed that sliced meats contribute the largest share of sales to the service deli, some 30.9 percent, or $7.56 billion, of 1998 deli sales. These data are included in the International Dairy Deli Bakery Association's annual trends report, 'What's In Store' (Vol. 14).

This compares with 30.8 percent ($7.18 billion) in 1997; 21.1 percent ($6.98 billion) in 1996; 32.3 percent ($6.46 billion) in 1995; 33.7 percent ($6.32 billion) in 1994; and 34.4 percent ($5.96 billion) in 1993.

The deli accounts for most processed meat. However, a growing trend shows consumers moving away from processed meats and emulsion-type loaves to whole-muscle products. Michelle Waldrop of Martins Super Markets, a 17-store chain headquartered in South Bend, Ind., said unlike in previous generations, the younger generation hasn't grown up eating bologna.

'Also, price has not been an issue with consumers,' she said. 'People want quality and they are willing to pay for it.'

'The seasoning profile trend is adding a new twist to consumers' taste buds,' said Phil Ferdinand, director of sales for Carando's eastern region, an Italian deli meat processor based in Springfield, Mass., and owned by Kansas City, Mo.-based Farmland Foods.

Turkey, in particular, has taken a strong lead in the flavored deli meat category, according to a IDDBA news release. Kathy Dyer, a deli/bakery supervisor for Level's Food Center, an eight-store chain based in Ft. Worth, Tex., carries lemon pepper, Cajun and smoked turkey breasts in her deli's whole-muscle meat program.

'Customers are shopping for more varieities and flavors,' she said.

Ham also has undergone a flavor make-over. Carando recently extended its line of seasoned hams by adding four new flavors: roasted garlic and oregano,hot red pepper, sun-dried tomato and basil, and rosemary.

A broadening of trendy, ethnic flavorings, expanded uses,and self-serve packaging is expanding deli salami product sales.

'We've focused on regions of Italy, using different flavors and curing methods to make different formulations,' said Bill Holland, director of marketing for John Volpi & Co., St. Louis.

According to Edgar Soto, vice president of sales and marketing, the Hispanic salami is a growing trend in Cubano sandwiches--salami and Provolone grilled on a French roll. Salami's growing uses in party platters, and as ingredients in prepared meals like hot and cold pasta salads, antipasto salads, and as an alternative topping to pepperoni for pizzas, is spurring sales.

This article reprinted with permission from Meat Marketing & Technology.

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