Some meaty research
This is report that is certainly of interest to Hormel Foods and their investors.
Business research firm –Research and Markets – recently released a report saying sales of bfreakfast and sandwich meats rose by 15 percent from 200 to 2005 and is expected to reach $9.8 billion for 2005.
The report says attributes a chunk of that growth to the low-carb craze of 2003-2004.
Here's some from the announcement about the report. I didn't buy it myslef. I didn't think the P-B would appreciate the bill of $2,819 for a blog item.
Anyway, here's what Research and Markets has to say about the report in their pitch:
DUBLIN, Ireland, Nov 28, 2005 Research and Markets has announced the addition of Breakfast & Sandwich Meats - in the United States to their offering. The breakfast and lunch meat market is projected to reach $9.8 billion for 2005. Sales growth was strongest in 2003-2004, during the low-carb craze. In the four sales channels examined in this report (grocery stores, drugstores, mass merchandisers, and natural supermarkets), sales increased 15% between 2000 and 2005.
In this report, we clearly identify the principal external factors driving or curtailing growth in the breakfast and lunch meat market. For manufacturers of breakfast and lunch meats, the demise of the low-carb diet translated to markedly lower sales in 2005 than had been enjoyed in 2003 and 2004. As always, convenience is a major factor. Co-branding between meat processors and plastics manufacturers has led to the "meat in a tub", and precooked bacon and brown-and-serve sausages have made preparation more convenient. Not to be overlooked are the various health issues surrounding packaged meats. Concern about nitrites and preservatives in food have spurred consumers to look for natural or organic alternatives, contributing to increased sales through the natural food channel.
Six years of specific sales data provide a factual and impartial presentation of the market as a whole. we also evaluate the performance of individual sectors in the market (sliced lunch meat, bacon, refrigerated and frozen frankfurters, dinner sausages, breakfast sausage/ham, non-sliced lunch meat, and frozen sausages), and provides information about the major companies and brands (almost half of the market is controlled by Kraft, Sara Lee, ConAgra, Hormel, and Johnsonville).
We use the SPSS forecasting package to create a five-year forecast of U.S. retail sales in the breakfast and lunch meats market, revealing potential opportunities for growth and product development.
We define packaged breakfast and sandwich meat as follows:
-- 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 (including frozen breakfast sausage, frozen bratwursts and Steak-UMM products)
-- refrigerated non-sliced sandwich meat (including non-sliced bologna or other sandwich meat and salami)