Chicken Health and Wellness Has Leading Role

Chicken ready to play winning hand

Due to its product’s broad appeal, value and versatility, the chicken industry is poised to widen its lead in the meat protein sector.

Speaking yesterday at the Chicken Marketing Seminar, Bob Goldin, executive vice president of Technomic, Inc., told listeners that while the chicken industry faces tough challenges, it is well positioned with respect to customer demands and will gain market share.

Goldin named 14 big trends facing chicken marketers and outlined their implications. Chicken has a “winning hand” to play, he said, and the industry should widen its lead over competing proteins through innovation, creative marketing and cost effectiveness.

Following are highlights from Goldin’s presentation:

1. Tough times are ahead for the foreseeable future. While the chicken industry faces cost increases, little or no income growth, stagflation, geo-political uncertainty and consumer pessimism, it should set realistic performance objectives and take advantage of emerging opportunities such as exports.

2. A sluggish economy will result in less discretionary spending. Relatively speaking, foodservice will suffer and retail will benefit. This means chicken marketers should focus on retail market development, Goldin said.

3. Rising costs – inputs, fuel, utilities, etc. – will continue to pressure the entire global food supply chain, and there will be growing consumer and trade resistance to price increases. Marketers should evaluate supply chain re-engineering and cost effectiveness and productivity to offset margin pressures.

4. An aging population and rapid growth of minority groups, especially Latinos, will be key demographic forces. Marketers need to field products that address these markets.

5. Chicken health and wellness will become an even bigger priority with consumers. This will help drive “sensible eating;” fresh, local, less processed; portion control/weight management; organics; and lower fat and sodium content. Golden advised listeners to exploit chicken’s healthy image and offer more “natural” products with the “cleanest” possible label.

6. Value will grow in importance to consumers, a trend which favors quick-service restaurants, club and dollar stores and mass merchandisers. Since value is a strong suit for chicken, marketers should make it a core in their offerings, he said.

7. Consumers will selectively indulge on products and venues with unique taste, experience or convenience profiles. He advised chicken marketers to exploit opportunities in higher-end or gourmet lines.

8. Bolder flavors will play an even bigger role than before in packaged foods and restaurant menus. Marketers should use bold and ethnic spices and ingredients to appeal to consumers.

9. Structure and tradition are less relevant in eating occasions, while snacking, late night dining and eating “on the go” are more and more important. Marketers should make sure their products align with these poultry trends.

10. Consumers and customers are increasingly concerned about suppliers’ environmental and social responsibility. Concerns include sustainability, humane treatment of animals and safe working conditions. Develop and follow corporate social responsibility programs, Goldin advised.

11. Expect to see more emphasis on fresh meal solutions at the expense of core dry/frozen categories, Goldin said. He recommended that marketers capitalize on the fact that chicken is the foundation of many fresh meal solutions. The development of new product platforms may be necessary, he noted.

12. The casual dining segment is becoming less attractive to suppliers, he said, as this segment becomes less relevant to consumers. Chicken marketers should reduce their reliance on this sector and diversify their customer mix.

13. Alternative channels will gain share. These include natural/organic supermarkets; club stores; hybrid stores; direct to consumer outlets; ethnic markets and farmers’ markets. Marketers should develop alternative channel strategy and tactics.

14. Consolidation will continue to occur at all levels of the chicken, poultry and egg industry, Goldin said. This means more “power buyers,” more centralization and growth of customer brands. This calls for chicken marketers to be competitively differentiated. It also means they must execute effectively and target the right customers.

The Chicken Marketing Seminar is sponsored by the National Chicken Council in cooperation with the National Poultry & Food Distributors Association.