Beef industry stakeholders gathered Sept. 18-20, 2024, at Turning Stone Resort in Verona, N.Y., to celebrate the Certified Angus Beef brand's 46th year. Brand staff and partners united not only to congratulate and celebrate Certified Angus Beef partners on their achievements, but to review opportunities for growth and innovation in the beef market as well.
At the multiday event, retailers and foodservice distributors separated into breakout sessions, examining market opportunities, category constraints and consumer trends within their respective categories. Despite working in separate segments of the food industry, the breakout session advice for both retailers and foodservice focused on the same thing: value.
In a tight economic environment, consumers treasure their dollars more than ever, and they want to spend their money on products and services they consider to have high value. But what does "value" mean to consumers? The term has varying definitions per person, but "value" for beef products largely encompasses four attributes: price point, taste, quality and convenience.
Consumers are still purchasing Certified Angus Beef products, signaling continued demand for Angus beef that meets the brand's 10 standards. Still, high-quality beef products can have a higher price tag than commodity beef. To accommodate wallet pressure, consumers are getting creative with their purchases, trading down their 80/20 ground beef for 75/25 and 73/27. Consumers still see value in high-quality Angus beef, but they are trading down within the category.
Ground beef is a popular protein item for consumers, retailers and foodservice operators alike. By offering attributes such as easy preparation, a lower price point and high versatility, ground beef is quickly becoming the hero of both retail and foodservice. Anne-Marie Roerink, principal of 210 Analytics, emphasized how important taste and flavor are to consumers--these attributes are likely to drive repeat retail beef purchases.
Convenience is another large consideration for consumers. Deli-prepared meat solutions offer a solid way to cater to consumer demand for convenience. According to Circana data, deli-prepared meat and poultry sales for 2023 reached $5.7 billion. Ken Eifrid, Certified Angus Beef director of business development, noted that 21% of consumers are increasing deli-prepared meat purchases at retail. Strong sales in this category signal continued consumer demand for beef deli-prepared meal solutions.
The cost per eating occasion at retail is much more affordable than foodservice, according to Circana data. Deanna Walenciak, vice president of marketing for Certified Angus Beef, said that retailers should emphasize the value of a meal, including the cost per person. Emphasizing overall value can help comfort the cost-concerned consumer.
Walenciak noted that high foodservice costs for consumers creates direct opportunity for retailers. Shoppers are recreating restaurant meals in their own homes, and retailers can help consumers to cook a restaurant-like meal for a portion of the price. By assisting shoppers with meal recreation, retailers can craft value-added experiences for consumers. Walenciak noted that in-store signage can emphasize value to consumers, helping to drive sales and engagement.
Foodservice operators are seeking value as well. With ongoing labor shortages, operators are increasingly seeking value-added protein products. These offerings allow operators to accommodate labor shortages, stabilize inventory, maintain product consistency and more. Certified Angus Beef value-added product sales have doubled since 2014, signaling a strong demand in the category. The brand's vice president of foodservice Sara Scott said that, with an increase in demand for value-added beef products, foodservice distributors might consider breaking into the heat-and-serve category.