Breakfast and Sandwich Meat - US

Published by: Mintel International Group Ltd.

Published: Apr. 1, 2007 - 115 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Abbreviations and terms

Abbreviations

Terms

Executive Summary

The bottom line

Opportunity to leverage protein factor

Sales of lead segment proves to be the only growth area during 2004-06

Three major suppliers command 40% of FDM sales in the category

Major category brands are challenged by growing private labels sales

Supermarkets account for majority of breakfast and sandwich market sales

Opportunity for packaged roast beef

Category players will keep close watch on organic trend

Forecast

Market Drivers

The family factor

Figure 1: Household usage of breakfast and sandwich meats, by number of people in the household, January-October 2006

Figure 2: Households by size, 1995 and 2005

Breakfast habits

Health considerations and breakfast

Figure 3: Health-related breakfast food choices, September 2006

Time considerations and breakfast

Figure 4: Breakfast consumption patterns, weekends and/or weekdays, by age, September 2006

Figure 5: Weekday and weekend breakfast eating styles, September 2006

Figure 6: Weekday breakfast food choices, September 2006

Eating breakfast out

Figure 7: Top five most common breakfast menu items, 2006

Figure 8: Number of all menu items with bacon as an ingredient, 2004-06

Lunch trends

Packing lunch

Figure 9: Origin of workweek lunches, by age, August 2005

Skipping lunch

Figure 10: Why skip lunch, August 2005

Competition from QSRs

Figure 11: What consumers ordered on their most recent QSR lunchtime visit, 2002 and 2005

Figure 12: Top five most common sandwiches on lunch menus, 2006

More convenient hot breakfast and lunch options

Health trends

Premium purchases: organic, natural and gourmet

Market Size and Trends

Market size

Figure 13: FDM sales of breakfast and sandwich meat, at current and constant prices, 2001-06

Wal-Mart estimate

Market trends

New product launches in meat and poultry

Figure 14: New product releases in meat and poulty products, 2001-06

Figure 15: Top ten positioning claims of new meat and poultry products, January 2006-December 2006

Trends specific to breakfast and sandwich meats

Market Segmentation

Introduction

Overview

Figure 16: FDM Sales of breakfast and sandwich meat segmented by type, 2004 and 2006

Refrigerated sliced lunchmeat

Figure 17: FDM Sales of refrigerated sliced lunchmeat, at current and constant prices, 2001-06

Refrigerated bacon

Figure 18: FDM sales of refrigerated bacon, at current and constant prices, 2001-06

Refrigerated dinner sausages

Figure 19: FDM sales of refrigerated dinner sausages, at current and constant prices, 2001-06

Refrigerated and frozen frankfurters

Figure 20: FDM sales of refrigerated & frozen frankfurters, at current and constant prices, 2001-06

Refrigerated breakfast sausage/ham

Figure 21: Sales of refrigerated breakfast sausage/ham, at current and constant prices, 2001-06

Supply Structure

Companies and brands

Figure 22: Manufacturer FDM sales of breakfast and sandwich meat in the U.S., 2004 and 2006

Refrigerated sliced lunchmeat

Figure 23: Manufacturer brand FDM sales of refrigerated sliced lunchmeat in the U.S., 2004 and 2006

Refrigerated bacon

Figure 24: Manufacturer brand FDM sales of refrigerated bacon in the U.S., 2004 and 2006

Refrigerated and frozen frankfurters

Figure 25: Manufacturer brand FDM sales of refrigerated & frozen frankfurters in the U.S., 2004 and 2006

Refrigerated dinner sausages

Figure 26: Manufacturer brand FDM sales of refrigerated dinner sausages in the U.S., 2004 and 2006

Refrigerated breakfast sausage/ham

Figure 27: Manufacturer brand FDM sales of refrigerated breakfast sausage/ham in the U.S., 2004 and 2006

Refrigerated non-sliced lunchmeat

Figure 28: Manufacturer brand FDM sales of refrigerated non-sliced lunchmeat in the U.S., 2004 and 2006

Frozen sausages

Figure 29: Manufacturer brand sales of frozen sausages in the U.S., 2004 and 2006

Private label

Figure 30: FDM sales of private label breakfast and sandwich meats, at current and constant prices, 2001-06

Figure 31: Private label FDM sales of breakfast and sandwich meats segmented by type, 2004 and 2006

Major manufacturer profiles

Kraft Foods, Inc.

Sara Lee Corporation

ConAgra

Advertising and Promotion

Introduction

Figure 32: Television ad for Blue Grass Meats, A Tradition of good taste, 2007

Figure 33: Television ad for Tyson Bacon, Have you had your Tyson Protein?, 2007

Kraft Foods

Figure 34: Television ad for Oscar Mayer, Oh I Wish, 2007

Figure 35: Television ad for Oscar Mayer, Weinermobile, 2007

Sara Lee Corporation

Figure 36: Television ad for Jimmy Dean sausage, The weathergirl, 2007

Hormel

Figure 37: Television ad for Hormel all natural cold cuts, 2007

Figure 38: Television ad for Hormel Spam Singles, 2007

Retail Distribution

Overview

Figure 39: U.S. FDM sales of breakfast and sandwich meat, by channel, 2004 and 2006

Supermarkets

Figure 40: U.S. supermarket sales of breakfast and sandwich meat, at current and constant prices, 2001-06

The Consumer

Introduction

Summary

Cold cuts

Household penetration

Figure 41: Household usage of cold cuts, by race/Hispanic origin, January 2004-September 2004 and January 2006-October 2006

Types of cold cuts used

Figure 42: Types of cold cuts used by households, fresh cut or deli, by region of residence, January 2006-October 2006

Flavors of cold cuts used

Figure 43: Flavors of cold cuts used by households, January 2004-September 2004 and January 2006-October 2006

Figure 44: Flavors of cold cuts used by households, by race/Hispanic origin, January 2006-October 2006

Brands of cold cuts used

Figure 45: Brands of cold cuts used by households, January 2006-October 2006

Amount of cold cuts used

Figure 46: Number of pounds of cold cuts used by households in past 30 days, January 2006-October 2006

Bacon

Household penetration

Figure 47: Household usage of bacon, by race/Hispanic origin, January 2004-September 2004 and January 2006-October 2006

Brands of bacon used

Figure 48: Brands of bacon used by households, January 2006-October 2006

Amount of bacon used

Figure 49: Number of pounds of bacon used by households in past 30 days, January 2006-October 2006

Sausage

Household penetration of sausage

Figure 50: Household usage of sausages, by race/Hispanic origin, January 2004-September 2004 and January 2006-October 2006

Kinds of sausage used

Figure 51: Kinds of sausage used, pre-cooked and not pre-cooked, January 2006-October 2006

Figure 52: kinds of sausage used, pre-cooked and not pre-cooked, by race/Hispanic origin January 2006-October 2006

Occasions for eating sausages

Figure 53: Occasions for household consumption of sausages, January 2004-September 2004 and January 2006-October 2006

Flavors of sausages used

Figure 54: Flavors of sausages used by households, January 2004-September 2004 and January 2006-October 2006

Varieties of sausages used

Figure 55: Variety of sausages used by households, January 2004-September 2004 and January 2006-October 2006

Figure 56: Variety of sausages used by households, by race/Hispanic origin, January 2004-September 2004 and January 2006-October 2006

Brands of sausages used

Figure 57: Brands of sausages used by households, January 2004-October 2006

Amount of sausage used

Figure 58: Number of pounds of sausages used by households in past 30 days, January 2004-October 2006

Bratwurst

Figure 59: Household usage of fresh bratwurst, by race/Hispanic origin, January 2004-September 2004 and January 2006-October 2006

Flavors of bratwurst used

Figure 60: Flavors of fresh bratwurst used by households, by race/Hispanic origin, January 2006-October 2006

Brands of bratwurst used

Figure 61: Brands of fresh bratwurst used by households, January 2006-October 2006

Hot dogs/frankfurters

Household penetration of hot dogs/frankfurters

Figure 62: Household usage of hot dogs/frankfurters, January 2004-September 2004 and January 2006-October 2006

Types of hot dogs used

Figure 63: Types of hot dogs/frankfurters used by households, January 2006-October 2006

Brands of hot dogs used

Figure 64: Brands of hot dogs/frankfurters used by households, January 2006-October 2006

Amount of hot dogs used

Figure 65: Number of packages of hot dogs/frankfurters used by households in past 30 days, January 2006-October 2006

Brand loyalty across category segments

Figure 66: Brands of sausage used by brands of bacon used, January 2006-October 2006

Figure 67: Brands of hot dogs/frankfurters used by brands of cold cuts used, January 2006- October 2006

Teenagers

Figure 68: Usage of cold cuts among teens, May 2005-June 2006

Figure 69: Times per 30 days cold cuts are eaten by teenagers, May 2005-June 2006

Figure 70: Teenagers’ preferred types of cold cuts, May 2005-June 2006

Children

Figure 71: Usage of cold cuts by children, May 2005-June 2006

Figure 72: Children’s preferred types of cold cuts, May 2005-June 2006

Where breakfast meat is eaten: Home versus restaurant

Figure 73: Whether eat breakfast meats and where, January 2007

How breakfast meats are eaten and at what time of day

Figure 74: How and when breakfast meat is eaten, January 2007

Types of lunch meat eaten and in what form (deli versus pre-packaged)

Figure 75: Types of lunchmeats eaten and how purchased, January 2007

Flavors of dinner sausage eaten

Figure 76: Types of dinner sausage eaten, if any, January 2007

Figure 77: Types of dinner sausage eaten, if any, by gender, January 2007

Figure 78: Types of dinner sausage eaten, if any, by race/Hispanic origin, January 2007

Figure 79: Types of dinner sausage eaten, if any, by region of residence, January 2007

Figure 80: Types of dinner sausage eaten, if any, by number of children in the household, January 2007

Important attributes in selecting a dinner sausage

Figure 81: Type of dinner sausage most enjoy/look for, January 2007

Future and Forecast

Future trends

Category players need to address increasing ethnic diversity

Figure 82: Population by race and Hispanic origin, 2002-12

Market to offer more meal solutions for large and small households

Health trends fuel interest in premium products

Market forecast

Breakfast and sandwich meat market

Figure 83: Forecast of total U.S. fdm sales of breakfast and sandwich meat, at current and constant prices, 2006-11

Refrigerated sliced lunchmeat

Figure 84: Forecast of U.S. sales of refrigerated sliced lunchmeat, at current and constant prices, 2006-11

Refrigerated bacon

Figure 85: Forecast of U.S. sales of refrigerated bacon, at current and constant prices, 2006-11

Refrigerated dinner sausages

Figure 86: Forecast of U.S. sales of refrigerated dinner sausages, at current and constant prices, 2006-11

Refrigerated and frozen frankfurters

Figure 87: Forecast of U.S. sales of refrigerated & frozen frankfurters, at current and constant prices, 2006-11

Refrigerated breakfast sausage/ham

Figure 88: Forecast of U.S. sales of refrigerated breakfast sausage/ham, at current and constant prices, 2006-11

Forecast factors

Appendix: Trade Associations

Appendix: New Product Briefs

Target: Spinach & Garlic with Feta Chicken Sausage

Lopez Foods: Port Sausage Patty

Leon’s Sausage: Leon’s Andouille Sausage

Boulder Sausage Company: Boulder Sausage Italian

Hormel Foods: Hormel Black Label

Schwan’s Home Service: Schwan’s Fully Cooked Bacon Slices

Supervalu: Farm Fresh Thin Slice Lunchmeat Chicken

Applegate Farms: Applegate Farms Great Organic Hot Dog

Kraft Foods: Oscar Mayer Smoked Uncured Natural Beef Franks

Sara Lee: Sara Lee Thin Sliced Virginia Brand Baked Ham

Kroger: Kroger Meals Fully Cooked Bacon

Trader Joe’s: Trader Joe’s Apple Smoked Fully Cooked Uncured Bacon

ConAgra Foods: Banquet Brown ‘N Serve Sausage Patties

Target Corporation: Market Pantry Pork Sausage Patties

Applegate Farms: Applegate Farms Peppered Bacon

Lightlife Foods: Lightlife Fakin’ Bacon (Organic Smoky Tempeh Strips)

Abstract

Breakfast and sandwich meats are a staple in many households. However, the market has been experiencing a decline in FDM sales, excluding Wal-Mart, making the evaluation of products, positioning, and placement a must for players in the category. The U.S. breakfast and sandwich meat market posted sales growth in only two years in the review of 2001-06—and those years were the heart of the low-carb fad. With the support of low-carb eating, market sales jumped 8% from 2002-04. However, as focus shifted away from this diet, sales fell in 2005-06. In total, sales gained only 4% from 2001-06. With adjustments for inflation, market sales declined 9% from 2001-06.

This report addresses the challenges for this market, including the changing size of the average American household; competition from food service; and usage of pre-made breakfast meat sandwiches and meals that do not require the purchase of stand-alone breakfast meat.

But, perhaps more importantly, this report also discusses the imperatives and opportunities in the market, such as the need to further penetrate Asian and Hispanic households, ways the category can be a part of more meal solutions at more times of the day, and the importance of flavor and health-oriented positioning in this arena.

Mintel defines packaged breakfast and sandwich meat as follows:

• Refrigerated sliced sandwich meat (e.g., bologna; may also be referred to as cold cuts or lunchmeat)
• Refrigerated and frozen bacon (including turkey and reduced fat bacons)
• Refrigerated frankfurters (hot dogs)
• Refrigerated dinner sausage (including bratwursts, Polish sausage and Italian sausage)
• Refrigerated breakfast sausage and ham
• Frozen breakfast and sandwich meat
• Refrigerated non-sliced sandwich meat (including non-sliced bologna or other sandwich meat and salami)

This definition does not include:

• Deli meats requiring counter help for slicing
• Pre-formed hamburger patties
• Ground beef
• Frozen breakfast sandwiches, which contain breakfast meats
• Lunchmeats sold in kits (e.g. Lunchables)

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