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MEAT REPORT

To stretch dollars, Canadians are changing-up their protein purchases

By Jessica Huras

GrowinG food price inflation and the wider availability of plant-based meat alternatives could represent the makings of a perfect storm for meat sales in Canada.

Data from NielsenIQ shows a 4% decline in fresh meat sales for the 52-week period ending March 19, 2022. Beef and pork saw dips of 5% and 7%, respectively, while chicken stayed steady with a 0% change in sales. It’s far from good news for meat manufacturers and suppliers, but the industry is attempting to adapt with new strategies that address the cost and sustainability concerns dampening meat sales, as well as with products that make meat easier than ever to enjoy.

In the United States, the story is a little different. Meat sales have risen 3.9% compared to pre-pandemic levels, according to the North American Meat Institute’s annual Power of Meat 2022 report. The report attributes

the steady sales of meat to shopper trends created by the pandemic, including increased home cooking, record-high online shopping, and a shift to digital sources for recipe inspiration.

As consumers look for ways to reduce their grocery budget and incorporate more plant-based alternatives into their diets, can sales of traditional meat hold their own in 2022?

BUDGET BITES

Inflation is impacting food prices across all categories and meat is no exception. “Inflation is lifting up so many things throughout the whole supply chain for businesses and retailers,” says Craig Klemmer, a senior economist at Farm Credit Canada (FCC). “We’re seeing higher meat prices across the board that are rising more than overall food inflation.”

Research from Mintel suggests price is the top consideration for Canadians when choosing which foods to buy when grocery shopping. Meat typically comprises a large portion of a consumer’s food budget, which can make it a target for cost-cutting strategies.

“Many consumers are looking for creative ways to stretch their food dollar without sacrificing eating experience,” says Kevin Mosser, senior director of global marketing for Canada Pork. “Value is becoming an important driver of purchase intention, although taste and product quality remain key attributes for consumers in the meat department.”

As consumers begin to feel the strain of rising food costs, budget-friendly cuts like chicken and ground beef continue to perform well. Kate Beresford, vice president of marketing for sustainable meats at Maple Leaf Foods says poultry has been a steady growth category for the brand since 2019.

Julie Gleizer, co-founder of grocery delivery service Inabuggy, says chicken quarters, drums, and breasts are among the top orders from the brand’s grocery partners. “People are mindful of their budget and trying to stay frugal in their dinner-making, so I think chicken continues to be the leader because of that,” she says. “Ground beef was always a good seller and that has remained stable.”

Canada Pork recently launched a retail merchandising program focused on pork stir-fry, which aims to make pork even more accessible for consumers with varied grocery budgets for meat. “It’s built upon some of the most common Chinese stir-fry styles—pork strips, pork slices, and minced pork,” explains Mosser.

Cory Van Groningen, co-owner of VG Meats in Ontario, says they are also examining how to appeal to more budget-conscious shoppers by making affordable cuts more enticing. “We’re working on trying to decrease the impact of inflation on families,” he says. “Instead of maybe a $30 steak dinner per serving, there’s a Miami short rib.”

VG Meats will be releasing a yet-to-benamed thin-sliced short rib designed for grilling, as well as kebabs, as part of the lead-up to the summer grilling season. Indeed, there’s hope that inflation won’t dramatically impact meat sales during the profitable barbecue season. “With spring and summer just around the corner, consumers are getting ready to fire up their grills and will be looking for cuts that can deliver on both value as well as flavour,” says Canada Pork’s Mosser.

Inabuggy’s Gleizer says the brand typically experiences a summer seasonal boost in sales of certain cuts. “We have steak leading the sales in the summer. The trend does seem to be influenced by weather,” she says.

FCC’s Klemmer believes the full effect of inflation on consumers’ purchasing choices has yet to be seen. “Families will eventually—if they’re not already—start to look at their value proposition,” he says. “Does that mean changing products from meat to another source of food, such as plant-based protein? We could see some more of that happening. Or it could just mean shifts within products. Instead of barbecuing pork chops are we barbecuing a wiener?”

WHOLE IN ONE

In addition to driving consumers to purchase more affordable meat categories and cuts, inflation is fuelling increased interest in whole animal purchases. “A popular cost-saving strategy for consumers is the trend of home butchery, which involves buying whole muscle cuts of pork which consumers can then cut and prepare the way they like it at home,” says Canada Pork’s Mosser.

Andy Sedlak, a butcher at Vancouver’s Greens Organic + Natural Market, says that whole animal sales are doubling every year, which he credits in part, to

“Value is becoming an important driver of purchase intention, although taste and product quality remain key attributes for consumers in the meat department”

SWEET & HEAT.

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“I always show: this is what it would cost if you bought all of these things off of our shelves and this is what it’ll cost if you buy it all at once. People are definitely seeing the value in that”

cost-conscious consumers. “I always show: this is what it would cost if you bought all of these things off of our shelves and this is what it’ll cost if you buy it all at once,” says Sedlak. “People are definitely seeing the value in that.”

He adds that since many people living in a city like Vancouver don’t have the capacity to store large volumes of meat at home, he’s seeing some customers band together to split the cost of a whole animal and share the meat. “You need a freezer, or you need a group of people,” he says.

EASY DOES IT

A 2020 Mintel report found that a quarter of Canadians claim to eat meat snacks when asked what snacks they ate in the past month. “Over the past two years, we’ve seen tremendous consumer demand growth in convenient protein snacking, lunch kits, and meal solutions,” says Maple Leaf’s Beresford.

Maple Leaf recently released a number of new snack and convenience meat products in response to this trend, including prepped and ready shredded chicken and Mina Halal’s frozen meal kits, which focus on Middle Eastern and South Asian-inspired meat dishes like chicken shawarma and butter chicken. Maple Leaf is also set to roll out another meat snack this year, with Schneiders Pepperettes launching three new snacksize meat sticks this spring.

Maple Leaf’s Mina frozen meal kits also tap into a trend of convenience meats that draw inspiration from global flavours. “Customers are exploring new worldly unexpected flavours—travel for their tastebuds,” says Paolo Pusateri, brand marketing manager at Toronto’s Pusateri’s Fine Foods. “These influences are a big source of inspiration for the Passport by Pusateri’s integrations in the meat department this summer.” Passport by Pusateri’s is a program that invites customers to discover new ingredients and menu items from around the world from the comfort of their local grocery store. Customers can enjoy a selection of in-store, bi-weekly regional menus and products inspired by destinations like Israel, Greece, France, the Philippines, Jamaica, South Korea, Mexico and more. The program will feature meats with marinades and rub pairings that draw on Argentinian, Korean and Southern barbecue flavours.

“Ready-made meals are probably our fastest growing area,” says Cynthia Beretta, founder of Beretta Farms, which offers convenience meat items like coq au vin, steak pie, and Moroccan apricot chicken. “During the pandemic, and now coming out of the pandemic, for so long everyone was cooking everything for themselves because you couldn’t go out. It was a nice alternative to have something prepared in your freezer that you can just throw in the oven or on the stovetop.”

Although Beretta says the brand is feeling the impacts of inflation, it has managed to maintain its current consumer pricing so far. Beretta adds that consumers also seem receptive to paying a premium for ready-made meat meals. “I think they are willing to pay for the

convenience and also knowing that we make everything from scratch,” she says.

Inabuggy’s Gleizer has also observed that convenience meat products continue to be popular with its customers as well. “Our convenience meat is constantly growing in comparison to the same period last year,” she says. “Pre-marinated meat is starting to trend this year.”

Gleizer also says meat snacks, particularly jerky, are also seeing a growing consumer demand. “We’ve definitely seen elevated interest in the preserved meat and snacks category,” she says, noting that standard beef jerky is Inabuggy’s bestseller in the category, followed by Korean Island BBQ Pork Jerky.

Beretta Farms’ meat snacks, which include antibiotic- and hormone-free jerky and salami sticks, continue to be a growth area as well. “For people who are conscious of their health and working out and their calorie intake, it’s a healthy source of calories and protein for them to refuel, with little filler,” Beretta says.

TO MARKET, TO MARKET

Grocers can consider taking a cue from Inabuggy when it comes to strategies for increasing meat sales in-store. Gleizer advises not to underestimate the power of social media campaigns to drive consumers towards certain meat products. “We do some great marketing online that seems to be somewhat of an influencer,” she says. “If we post a recipe for a hearty soup, for example, and it requires a certain beef cut, that definitely influences our sales.”

Canada Pork’s Mosser stresses that education is essential, particularly when it comes to encouraging consumers to experiment with new cuts. “Especially for consumers who make their meat-buying decisions while at the grocery store, it’s crucial that grocery retailers remove the barriers to purchase through the availability of educational or informative point of sale material that boosts consumer confidence with cooking and preparing pork products,” he says.

He notes that Canada Pork’s Slice & Save program offers retailers support in teaching consumers about whole muscle utilization. “It offers home processing knowledge to help develop consumer confidence for Canadian pork products, along with delivering affordable choices and access to a variety of new cuts,” he explains.

Greens Market’s Sedlak agrees that education is key to the success of the market’s whole animal program. “It’s about giving the customers the understanding of what to do with each piece,” he says. Sedlak adds that word-of-mouth marketing can also be surprisingly effective, particularly for unique meat products, explaining that he offers discounts to customers who refer friends to the market’s whole animal program.

KEEPING IT LOCAL

Even as budget becomes top of mind for many consumers, sustainability also remains a primary concern for shoppers. A 2020 report from Mintel found more Canadians said they were eating meat less often compared to three years prior (22% versus 10%). The report suggests this dip was driven by concerns related to the rising cost of meat, but also a desire to eat healthier, as well as environmental consciousness and ethical matters.

Choosing locally-sourced meat offers one way for consumers to feel better about the environmental impacts of their meat purchases. “Many [shoppers] are focused on locally-sourced products,” says Pusateri. Beretta says showcasing local meat can help grocers appeal to shoppers with sustainability concerns.

“Have a Canadian section so people can be aware and make a conscious choice,” Beretta suggests. “It touches several things that people are aware of—whether you want to support a local farmer or reduce your carbon footprint. I think it’s important for grocers to be able to call that out for consumers.”

Greens Market’s Sedlak notes that, for many shoppers, the rising price of conventional meat is reaffirming the choice to pay a little more for local, sustainable meat options. “I find people are coming towards our style as the conventional price is starting to rise,” he says. “Organic is moving better because the price gap is shortening between conventional versus organic.”

The outlook for meat is somewhat uncertain but FCC’s Klemmer thinks, despite rising costs, overall Canadian demand for meat isn’t going anywhere. “I think the good news story ... is that Canadians’ savings rates are fairly high coming out of the pandemic and people are demanding some high-quality protein,” he says. “I think there’s a willingness to pay, to some degree, to continue to purchase meat.”

“Choosing locally-sourced meat offers one way for consumers to feel better about the environmental impacts of their meat purchases”

e European Picnic

Regardless of the year, after a long winter cooped up at home, Canadians embrace the warmer weather and rush to spend more time outdoors, walking, running, relaxing and yes, eating.

Building on these out-of-doors dining occasions, Icons of European Taste recommends introducing your customers to e European Picnic as a great way to inspire them to try new products and bring attention to the authentic and premium selection in your fresh deli case.

Recommend a selection of finger foods. Pairing fresh and seasonal cut veggies like slide peppers, grape tomatoes and celery or fruits including melons, apples, grapes. Other great and simple add-ons include nuts, olives, pickled beans or asparagus and a crusty breadstick.

At the core of any great European picnic is the protein. Either Prosciutto di Parma PDO or Prosciutto di San Daniele PDO or both are a great recommendation, pairing well with both fruits and vegetables and breads. Both come from separate regions in Italy and draw unique flavour attributes from their traditional preparation methods and local microclimates. No European picnic would be complete without great cheese. Naturally lactose free, a mature Grana Padano PDO cheese offers rich aromas and flavours, and pairs perfectly with anything sweet, like fruits, honey, as well as nuts and works well with cured meats.

And adding to the guaranteed authenticity of the experience, each product is fire branded with their own distinct icons and carries the Protected Designation of Origin (PDO) seal. PDO is the European Union’s guarantee of quality and authenticity, so your customers will know they are buying genuine products from Europe that are created using traditional techniques that have set the standard of culinary excellence for generations.

The content of this promotional campaign represents the views of the author only and is his/her sole responsibility. The European Commission and the European Research Executive Agency (REA) do not accept any responsibility for any use that may be made of the information it contains.