Inflation matters
Jim Rogers, senior vice president of sales at Creekstone Farms, Arkansas City, Kan., noted that in 2022, the consumer has a lot on their mind when shopping for beef, including inflation and finding a product that meets their health and quality standards.
“For example, our Creekstone Farms Natural Black Angus brand delivers for consumers seeking premium beef with no antibiotics or added hormones,” he said. “Our brand offerings provide retailers the chance to deliver high-quality beef options for today’s claims-based shopper.”
Right now, Rogers sees two conflicting issues when selecting beef products—inflation and premiumization. According to the U.S. Bureau of Labor Statistics, inflation at the meat case is currently over 13%, the highest it has been in recent history.
“Consumers are taking many steps to mitigate the effects of inflation on their grocery budgets, including trading down on their beef purchases,” he said. “We know, though, that in uncertain times, consumers reach for products that deliver value and consistency.”
Still, retail customers are reporting consumers trading up at the meat case when they are entertaining as well as when it saves money compared to dining out, so it’s important the retailer understand that if they have a customer base that will be looking to trade up for a premium product, they have that product on hand.
Tyson Foods, headquartered in Springdale, Ark., has expanded its value-added beef offerings quite a bit over the last two years to alleviate price concerns for those looking for beef.
Kent Harrison, vice president, fresh meats marketing and premium programs for Tyson, noted case ready products offer countless benefits to both retailers and consumers.
“For the retailer, exact weight products can reduce backroom labor costs,” he said. “The compact design is easy to merchandise, and vacuum-sealed, leakproof packaging extends shelf life, may reduce shrink and leaves the meat case cleaner. Shoppers appreciate the variety and freshness that case-ready products have to offer. Also, exact-weight packaging is easy to add to shoppers’ carts, whether they are in-store or online.”