Innovation in the European meat and poultry category has enjoyed a steady upward trajectory in recent years and that has continued into 2014.
Source: Mintel
The horsemeat scandal that rocked Europe in early 2013 in particular has led to a desire for detailed provenance, traceability, ethical assurances and free-from claims. The fast-pace of modern life has also encouraged manufacturers to develop more convenient options that either replicate full meals or aid meal preparation for speed-scratch consumers.
Meat innovation levels are on the up
European meat and poultry product launch numbers for the first six months of 2014 were equivalent to 62% of innovation for the whole of 2013, with a further six months of the year still remaining. Meat products, including packaged cuts such as bacon, sausages and ham, still account for the largest bulk of introductions at 74%, ahead of poultry products at 26%. Product development is also still dominated by retailers, which account for seven of the ten most innovative companies in the category. Private label has actually been responsible for 42% of all launches so far in 2014, a consistently growing share (the figure was just 30% back in 2010) with Lidl, Tesco, Aldi and Marks and Spencer leading the way. The only branded players in the top ten companies by number of launches are Nestlé’s Herta brand, Fleury Michon in France and Campofrio in Spain.
Transparency and provenance are key
The horsemeat scandal has put a spotlight on the entire meat and poultry supply chain and made consumers more wary of what they eat. They have a better – or at least a broader – understanding of what should and shouldn’t be in their food and that is leaving many feeling frightened over what they might be consuming. This attitude has already been prevalent in most categories for some years now, with product recalls, allergy scares and villainous additives driving demand for free-from products. However, it has now been amplified in the meat sector, posing challenges for manufacturers.
Consumers throughout Europe are now looking for more high quality ingredients and domestic provenance. In fact, 55% of Italians agree that it is important to have detailed information about where meat, poultry and fish comes from, a figure that declines slightly to 48% in France, 45% in Spain and 39% in Germany. Some consumers, meanwhile, have been so put off by the horsemeat scandal that they are buying more meat from butchers. In Germany, 23% of consumers say that they have changed their purchasing habits with this approach, the highest figure in Europe.
Manufacturers have responded to this anxiety in a number of ways. Many are now providing much more specific provenance to appeal to information-hungry consumers, calling out the country and, in some cases, the specific farm that meat is sourced from. Tesco has gone further with its premium private label Finest range in the UK, providing biographies and pictures of farmers on-pack to highlight their supply chain more clearly. Tesco Finest Homegrown Certified Irish Angus Ribeye Steak, for example, states on pack that it has been produced by Phil Purcell from Mount Bruis in County Tipperary, who is said to have “supplied Tesco with certified Irish Angus cattle since 1999”. This strategy was replicated by the Irish retailer SuperValu, who source meat from “a carefully selected group of Hereford suppliers that rear the cattle to the highest quality and welfare standards”. Each pack features photos of specific suppliers. However, most brands and retailers are still content to just highlight domestic provenance, with animals born, grown and processed domestically tapping into distrust of production standards elsewhere.
While not all brands have displayed specific origin front-of-pack, the horsemeat scandal has made traceability important. Many leading players have therefore promised that their meat is fully traceable from the farm to the store. For example, Iglo has promoted the traceability of its frozen processed meat products throughout Europe, Charal À Cuisiner claims to only use 100% French origin beef that is “totally traceable from meadow to plate”, while Cochonou claims to guarantee traceability across its entire range.
The same scandal has also reinforced demand for higher welfare products in many markets in Europe. High animal welfare is an important factor when purchasing meat, seafood or poultry for as many as 89% of Spanish and 79% of Italian consumers for example.
This is reflected in innovation, with ethical and environmental claims appearing on 12% of European meat and poultry product innovations so far in 2014, up from 11% in 2010. A growing desire for transparency has also strengthened the importance of natural selling cues, with organic certification increasing and more brands creating a pure and natural ‘story’ around production. In Denmark, for example, Vores Lam launched Lamb Leg Steaks without Bone using “lamb that has been grazing freely on high-altitude plains with direct access to fresh grass and drinking water”. Similarly, in Sweden, Svea Lantkött developed an Organic Beef Mince made from animals that have “lived a healthy life with fresh air, exercise and good feed”. The use of the organic claim on meat and poultry product launches peaked at 5% in 2013 and although it is slightly down in 2014, it is expected to continue to be used as a way to reassure consumers.
Consumers demand easier, faster, more efficient meat
The other great influence on innovation in the European meat and poultry category is the desire for convenience. Fast-paced lifestyles have put more time pressures on consumers than ever before. The post-industrial age has been defined by a constant race for faster, easier and more efficient ways to get things done and this is significantly impacting how consumers relate to food products. This has a direct influence on purchasing decisions in meat, poultry and fish, with 54% of UK consumers valuing products that are easy to prepare, a figure that rises to 65% in both Germany and Italy, 66% in France and 67% in Spain. Manufacturers have responded to this desire by developing a wider variety of ready to cook and pre-prepared items that ease meal preparation and offer close to full-meal options.
In the first six months of 2014, 9% of meat and poultry innovations had an easy-to-use claim on pack, up from 8% in 2010, and 5% had a convenient packaging claim.
Ready-to-cook meats stored in foil trays with flavorings and other ingredients already mixed in have been a particular growth area, helping add value to the segment in markets such as the UK. Products, such as Marks and Spencer’s Ready to Cook range, just require consumers to remove the plastic cover and insert in the oven. This reduces both preparation time and any cleaning required, as the tray can be easily disposed of after cooking. In 2014 so far, 58% of category launches were stored in similar trays, up from 49% in 2010, and significantly above the global average in meat and poultry launches of 37%. Almost all UK retailers now have their own versions, with Waitrose retailing an Easy to Cook range and Asda recently unveiling Chosen by You World Favorites. Taking inspiration from the fish sector, meanwhile, may suggest further development potential as Birds Eye’s Inspirations Fish Chargrilled brand extends the tray’s usage even further, suggesting that consumers place them on top of barbeques.
Staying in the related fish sector, Iglo Group meanwhile has also been one of many brands to launch cooking bags for its fish products that promise to seal in flavour and aroma. In 2013, the company repackaged its sub-brand Meeres Küche using new “fresh aroma bags”, which enable “easy and fool-proof baking” while preserving aroma. Iglo has also had huge success with its Bake to Perfection range of gourmet, convenient fish products, which are retailed in unique perfect-cook bags that can be prepared in the oven in five minutes. Findus has attempted to offer consumers similar easy-to-prepare gourmet options with its Findus Fisk I En Fei Posen Rett I Mikroen 2 brand in Norway, which stores fish in cooking bags with ethnic-inspired sauces. NorthSeafood Holland, meanwhile, has built an entire brand around this concept, launching the Deliz Steam Delight range stored in “convenient steaming bags that are easy to use and quick to prepare”. While this packaging format is predominantly used in the fish segment, retailers and brands are also using it to store other meats. Tesco and Asda have developed ‘roast-in-the-bag’ chickens that are already seasoned and can be prepared without mess.
Tesco has even developed a Cook in The Bag Chicken Tikka Masala that combines chunks of chicken with an Indian-inspired sauce, pushing the concept into a full-meal solution. Such products will have particular appeal in France and Spain, which have seen the most number of consumers switch to ready-to-cook products as they don’t have time to cook.
There has also been some movement by brands towards developing products that aid speed-scratch cooking, which has become popular as consumers like to put their own stamp on a meal, but lack the time to cook fully from scratch. This has predominantly been seen in the development of products designed for specific meals, though there has also been the introduction of more prepared formats, such as diced and cubed cuts, that ease general meal preparation. Scamark in France for example has launched Marque Repère Tradilège Thin Smoked Bacon Cubes designed for easy use in dishes such as pasta, whilst General Mills in Spain has released an Old El Paso Meat & Vegetable Burrito Filling mix designed to filling between three to four burritos.
What’s next?
Manufacturers and retailers certainly still have work to do to gain back consumer trust in meat and poultry products following the horsemeat scandal, with many in the region turning back to butchers and developing purchasing strategies to reassure themselves about the safety of the meat they buy.
Highlighting specific provenance and providing consumers with more information about producers and suppliers could certainly alleviate some of the anxiety that exists around meat safety. This strategy has already been adopted by a few retailers in the UK, such as Tesco printing pictures of farmers on-pack.
Further opportunities also exist to better target speed scratch products that alleviate some of the time involved in cooking, while still allowing consumers to add their own personal touch. Such products will be in increasing demand in today’s time pressurised society.