Australian red meat industry explores the deli market segment
Red meat convenience food is gaining traction in the Australian market as the companies start to explore the supermarket delicatessens segment.
MLA Manager High Value Food Frontiers, Michael Lee, said there is scope for red meat to capture greater market share in the growing convenience segment, particularly supermarket delicatessens, which are dominated by pork and chicken value-added products.
“Australian beef has been taking a bite out of the lucrative barbecue chicken market since the launch of ‘grab-and-go’ traditional hot roast beef and corned beef products in Woolworths supermarkets in 2016. This project was the result of a collaboration between MDC, Teys Australia and the Australian Meat Processor Corporation (AMPC).
The hot, ready-to-eat ‘Cedric Walter’ brand beef products have now been rolled out to 900 Woolworths stores nationally. Analysis of the Woolworths/Teys lines on the market has determined the annual use of 800 tonnes of lesser value outside flats lifts the value of 2.3 million head of cattle, delivering $5.5 million per year in new profit for the red meat industry, of which close to 20% is returned to producers and processor suppliers. Teys and Woolworths have since launched line extensions, at no cost to MLA or producers, including hot lamb roast and beef meatballs, also sold in the hot box delicatessen cabinet", explained Michael Lee.
Red meat's share in the deli market is about 2%, which leaves room for expansion and financial gains for the players with an initiative. "If red meat was to increase market share by just 1%, the benefit to the red meat industry in the domestic deli market alone would be approximately $10 million,", added Mr. Lee.
MLA’s CoMarketing Program supports Australian red meat brand owners in the marketing of their brands both on the domestic and export markets. It helps brand owners develop and implement effective brand marketing strategies, business development activities, and brand building activities.
MDC’s High Value Food Frontiers Program helps companies explore and develop innovative, value-added red meat products to drive higher premiums for, and increase consumer demand for Australian red meat and associated products.
The program achieves this through novel science and technology platforms and tools, increasing the value of lesser value cuts and carcass utilization, insights for new red meat occasions and usages, and new value chain and business model design.
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