By: Jennifer Childers | Data Analyst
Meat Snacks sales grew 4.3% in dollars but declined -2.8% in units for the 52 weeks ending 11/5/22. This category is the fourth largest in center store. But, due to inflation, consumers have slightly decreased their Meat Snack purchases.
Since 2019, the Jerky segment has seen great growth with the introduction to large bags. However, in the past year, the growth has started to wain as households try the category in smaller sizes.
Expendable income began to reduce in January 2022 and inflation continues as we move into 2023. Other reasons for a slow-down in growth is due to lessening of foot traffic in stores. This is concerning as brick-and-mortar growth is shifting to e-commerce and dollar channel.
Reviewing the Sub-Categories
Jack Links is the #1 Jerky brand with sales -5.4% and units -12.6%. No Man’s Land and Private Label are the largest growth brands.
Total Meat Sticks grew 11.9% in dollars and 0.4% in units for the 52 weeks ending 11/5/22. All sizes, except large, grew in dollars, while single serve (<2.25 oz) and standard (~3.0 oz) grew the most.
Slim Jim is the largest brand, growing +20%. Other brands such as Old Trapper, Oberto and Old Wisconsin are showing good growth as well.
Meat/Cheese Combos were up 6.6% in dollars but down -4.1% in units for the 52 weeks ending 11/5/22. Slim Jim, Jack Links and Old Wisconsin have the top selling Meat/Cheese combos.
Pickled Sausage was up 11.9% in dollars and down -3.6% in units vs YA; Penrose is the top brand in this segment.
Kippered Beefsteak declined -5.6% in dollars and -12.8% in units for the 52 weeks ending 11/5/22. Top items are Jack Links.
McLane’s Suggested Strategy
Below are the McLane APSW (average sales per store per week): 2022 YTD consumer units and LIC$ compared to 2019 YTD CU and LIC$.
After reviewing the above data, the strategy for Meat Snacks in 2023 will be to optimize your Stick segment and reduce on Mega Packs. As consumer spending is down, shoppers are gravitating to the 3 oz bag price point. Retailers should consider the ratio of Jerky to Stick peg bag offerings, bringing in additional offerings of Sticks where necessary. The McLane National Edge set will be reviewed in early February. Based on the data provided above we are looking at taking the assortment of Mega Packs on the 6ft set from 9 SKUs down to 7 and replacing a Jerky SKU with an additional Stick SKU. By removing the two bags of Mega Packs we can likely add in three additional 3 oz bags to generate more profit. During the review in February, we will also discuss the optimal size set for c-store Meat Snacks as it’s changing rapidly and larger sets may no longer be in the best interest of the category. Please check back on Edge in March for additional Meat Snack trends and suggestions.
Sources: Jack Links and Oberto
