Challenges in Meat Processing and Meal Solutions
Tom Rourke, Ph.D. Director R&D
June 21, 2006 Contents •Challenges in Processed Meat –List challenges •Challenges in Meal Solutions –Personal Meal Solutions History –US Eating Trends –Retail Meal Solutions •Hot foodservice solutions in retail •Providing total solution to retailer •Fighting restaurants for market share –Packaging •Summary AMI List of Meat Processing Issues
• Animal Health/Welfare • Environment – Avian influenza – Air, Water, Solid Waste – BSE • Work Force/Safety – FMD – Immigration – Animal welfare – Worker safety – Hormones in meat • Food Safety/Inspection • Labeling – Microbial hazards – Country of origin labeling – Physical/chemical hazards – Nutritional: trans fatty acids – Food defense Internet Search: “Challenges/Issues in Meat Processing”
•Most are anti•meat industry and anti• corporate farming websites –Sustainable Table: anti•corporate farming –Meatrix: anti•large meat corporations Internet Search: “Challenges/Issues in Meat Processing” • Feed additives • BSE • Animal welfare • Organic • Antibiotics • Free range • Factory farming • Pasture raised • Genetic engineering • Loss family farms • Environment • Pesticides • Local vs. Global • rBGH • Irradiation • Communities/employees • Hormones • Consolidation of meat • Reduction animal breeds companies So•••Where to begin? Meal Solutions History: Meal Solution Challenges •Tonight’s Choice •Our Own Kitchen •Emmber Heat & Serve: Dinner for Two •Emmber Heat & Serve •Butcher and Cook’s •Morton’s of Omaha HMR History: Tonight’s Choice
• 1995: Sliced entrees, serves 1•2, 8•10 oz cooked, skin•packed on foam tray placed in upscale carton. • Presumed customers wanted upscale items•••comfort foods sold! Tonight’s Choice
• Continental flank steak • California flank steak • Florentine pork loin • Meatloaf • Harvest pork loin • London broil • 3•peppered ribeye • Braised short ribs • Italian chicken • Cajun chicken HMR History: Heat & Serve Roasts
• 1997: Cooked, 1.25# roasts, feeds 4, comfort food • Vacuum packed roasts in microwavable trays • $8.99 average retail cost Heat & Serve: 1.25# cooked roasts
• Oven roasted meatloaf • Roasted pork loin • Butter garlic London broil • Italian style London broil • Traditional London broil • Yankee pot roast • Roasted turkey • Baked ham Dinner for Two • 1999: Reduce store ring•16 oz • Remove expensive tray • Increase convenience: Pre•sliced • Unique culinary sauce packet • Recipe cards (3 menu ideas) • Redeemable coupons Heat & Serve: Dinner for Two
•Yankee pot roast w/ traditional brown gravy •Beef strips w/ fajita sauce •Chicken strips w/ sweet pepper sauce •Braised beef tips w/ mushroom wine sauce •Roasted turkey w/ Thanksgiving gravy •Roasted pork loin w/ zesty raspberry glaze •Home•style meatloaf w/ roasted tomato sauce Our Own Kitchen Marinated•Ready to Cook
•Rollout 1995 •Vacuum packed in a fiberboard tray Our Own Kitchen Marinated•Ready to Cook • Lemon pepper chicken breast • Fajita beef strips • Peppercorn beef ribeye • Southwestern chicken breast • Traditional marinated Pork chops • Teriyaki beef stir fry • Sirloin shish•ka•bob • Italian beef strip steak • Orange and ginger diced pork • Caribbean pork tenderloins • Fajita chicken strips El Carnicero Moderno 2002: Marinated Ready to Cook El Carnicero Moderno
Beef Flap meat and Inside Skirt – Arrachera original – Arrachera ‘Estilo Casero’ – Arrachera ‘Adobada Carne Picada•diced meats (beef and pork) Bistek de Res•Inside round
• Hispanic community approaching 40% US population • Modest packaging • Authentic flavors for the Hispanic community•data reveal Caucasians purchasing Who does this look like? Emmber 2002: Marinated Ready to Cook •Vacuum packaged in microwavable tray –Bnls. Pork chops w/ honey BBQ sauce –Ribeye w/ peppercorn garlic glaze –Sirloin w/ honey bourbon glaze Breakfast Items & Sandwiches
•2000: Variety of pita bread sandwiches for lunch and breakfast. 2002: Fingerlickers Beef Ribs US Food Trends Moving Up Moving Out Quality of Life Valuable Life (1940s –early 60s) (1960s –1970s) (1980s –1990s) (Now)
q Expensive q Easy q Indulgent q Goodness
q Traditional q Independent q Active q Authentic lifestyles q Exotic q Planned/ Organized
Good cut of Pre•Packaged Grazing Low Carb Meat Mix and match meals “Hand” Food Organic/Natural Exotic –including Eating Out Fiber/Digestive Health? healthy (yogurt) Microwave Social Causes? Low Calorie (’80s) Low Fat (‘90s) Megatrends
• Flavor: … is King. The overriding factor in everything we choose to eat and drink.
• Health (natural/organic): Attention on personal well being and aging population.
• Ethnicity: Hispanic is #1.
• Convenience: Will continue to drive innovation. Flavor:
• Increased use of fresh, crisp fruit flavors – Seafood with mango pepper sauce – Tomato with orange salsa • Health: Increased emphasis on fresh, pure and authentic ingredients • Ethnic flavors • Smoked, Wood Roasted are popular • Continued commitment to comfort foods – “Comfortable with a Twist” • TGIF’smashed cauliflower • Gorgonzola crusted steak • Turkey meatloaf with Chipotle Glaze
FoodFood FlavorFlavor PyramidPyramid
Lightly Foreign
Fruit & Nut Infusion
Flavorful •“Hot”Italian w/ Sausage •Asian BBQ “Prep” •“Hot”Asian w/ Wasabi •Caribbean BBQ Techniques •Pan•Asian w/ Miso •“Sunbelt”Wraps •Asian Salads •Hot & Cold Noodle •Rice Bowls Bowls Contradictory •Spicy Pasta Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods FoodFood FlavorFlavor PyramidPyramid
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Nut Crusting •Pears “Prep” •Oranges •Pineapple Techniques •Bananas •Mango •Apples •Papaya •Lemons & Limes •Coconut Contradictory •Key Limes •Plantains Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods Food Flavor Pyramid •Popular Flavor Delivery•
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Wood Roasted •Sautéed “Prep” •Wok•Seared •Spit•Roasted Techniques •Crusted •Rubbed •Smoked •Breaded & Fried •Toasted •Baked Contradictory •Grilled •Marinated Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods
Food Flavor Pyramid •Popular Flavor Delivery•
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Sweet & Spicy •Cool & Spicy “Prep” •Cool (Fruit) & •Hot & Spicy Peppery Techniques •Sweet Hot •Sweet & Savory Contradictory Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods Food Flavor Pyramid •Popular Flavor Delivery•
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Americans love and are comfortable w/ cheese “Prep” •(core) • Mozzarella, Monterey Jack, Cheddar, Techniques Swiss, American •(Variations) • Asiago, Feta, Goat, Bleu, Muenster, Contradictory Colby•Jack, Parmesan, Gorgonzola Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods Food Flavor Pyramid •Popular Flavor Delivery•
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Variations of Mexican, Italian & Asian “Prep” Tuscan Italian Polynesian Techniques South American Mongolian/Korean Thai Caribbean/Cuban Contradictory Southwestern Flavors
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods
Food Flavor Pyramid •Popular Flavor Delivery•
Lightly Foreign
Fruit & Nut Infusion
Flavorful •Cajun •Meat Loaf •BBQ •Stews “Prep” •Mac & Cheese •50’s & 60’s Retro Techniques •Pork Chops •Retro Sauces •Ribs •Compound Butters Contradictory •Pot Roast •Mustard Flavors •Mashed Potatoes •Ketchup
Artisan Cheesy
Regional Ethnic
Nostalgia•Driven Flavors/ All•American Comfort Foods
Convenience •Hot food at retail markets. •Increased drive•through service in LSR, fast casual & casual restaurants. •Simple packaging for easy microwave cooking. •Restaurant menu items designed for take• home.
•(discussed later) Retail: Meal Solutions Interview with VP Retail Meal Solutions•Cargill Value Added Meats
Q: What is currently successful in Retail Meal Solutions?
A: Foodservice solutions Safeway
•Cooked Prime Rib •Raw marinated and cooked tri tips •Cooked Brisket Other Successful Retail Meal Solution Programs
•Central Market •Whole Foods •Wegman’s
• (utilizing hot foodservice approach to meal solutions) Foodservice•Innovation Foodservice Kits Turkey: Whole Birds & BIB Q. What is your greatest challenge with retail meal solutions? •A. Providing a total solution.
•No longer just supplying food. •Retailer needs help managing the meal solution category. Hot Prepared Foods Capabilities Addressing the Barriers
(Sample of hot meal solution presentation to a large retail chain) World Class Resources to support Customer•Driven Solutions
We help you identify and remove the barriers to your success • Tired Deli with No Draw? • Poor Salesmanship? • High Turnover and Untrained Staff? • High Shrink? • Lack of Innovative Products? • Lack of Timely Consumer Information? • No Menu Planning? • Poor Communication of Wellness Aspects?
… ..and the list goes on! World Class Resources to support Customer•Driven Solutions
Working together, we collaborate, create, and succeed • Innovative hot foods programs, complete with products, packaging, and branding concepts that make your deli a food service destination • Comprehensive training programs to enhance food service knowledge, reduce turnover, and motivate an engaged staff • Easy to handle products in the right size and package for just•in•time preparation and sell•through • World Class consumer updates and trend analysis • Full menu planning tools that are customizable by store • Complete branding and point of sale materials to communicate quality, freshness, and wholesomeness
… ..and the list goes on! World Class Resources to support Customer•Driven Solutions
We’ll bring you a full menu of protein solutions for your in•store restaurant.
Home•Style Favorites Fine Dining Features Premium Carving Station Features Smokehouse BBQ Favorites Protein Based One•Dish Meal Recipes for Versatility World Class Resources to support Customer•Driven Solutions
Home•Style Favorites Beef Tips with Mushrooms and Gravy Seasoned Pork Roast with Gravy Turkey Pot Roast with Gravy Home•Style Meatloaf Beef Meatballs in Gravy Beef Meatballs in Sweet and Sour Sauce Turkey Meatballs in Marinara Sauce Turkey Meatballs in Gravy World Class Resources to support Customer•Driven Solutions
Premium Carving Station Features
Prime Rib Roast of Beef USDA Choice Pot Roast with Gravy Beef Tri Tip French Cut Turkey Roasted Turkey Breast Rotisserie Turkey Breast World Class Resources to support Customer•Driven Solutions
Departmental branding solutions will position your deli as a destination for hot meals: • Custom proprietary brand and logo development • Design of hot foods and takeout menu boards, signage and point of sale materials • Design of all supporting literature and consumer wellness information • Custom product development and proprietary products • Weekly menu development and promotional recommendations World Class Resources to support Customer•Driven Solutions
We will build a total solution hot prepared foods program around these key aspects: • Menu planning with seasonal appeal and exciting daily features • Product flexibility and merchandising alternatives for each protein to minimize shrink (Roast today, sandwich tomorrow) • Custom sauces, gravies and glazes • A tiered program for store•to•store flexibility based on your facilities • Operational efficiency and ease of execution • Complementary side dishes and fresh in•store breads • Portion control and packaging solutions • Innovation and Quality • Food Safety • Profitability Q: Further Challenges
•A: Foodservice restaurants aggressive fight for market share. Quick•Service Restaurants
• QSR segment faces stiff challenges for future growth – Shortage of labor and talent – Increased competition from fast•casual, retail and c•stores – Image is convenient, but not “tasty” or “healthy” • 28% of Total Food Service Sales ($125 Billion) – Growth rate approximately 3 to 4 % • Quest for survival… .new menu ideas – McDonalds new apple walnut salad – Arby’s “Marketfresh” Sandwiches – Wendy’s interior redesigns, Chicken Temptations and Sensational Salads
Source: Technomic, Inc. Fast•Casual Restaurants • Fast•Casual restaurants accounted for about 4% of the total QSR segment sales in 2003 – Fast•Casual is growing at a 15•20% annual rate – Annual Fast•Casual sales estimated to be $3.8 Billion in 2003 – Predictions are that Fast•Casual will ultimately account for 10% or more of all commercial restaurant sales • Fast•Casual operations feature more innovative and adult•focused menu items • Check average range from $6 to $9 • Successes – Panera Bread •• Baja Fresh – Chipotle Casual Dining Restaurants
• Casual dining accounts for 16% of the total restaurant industry. • 55% of casual diners eat at an outlet 3 or more times each month. • Casual dining restaurants do not face the same price competition that the fast•food chains face. – Perception that the food is higher in quality, better for you – Perception that food is fresher – More diverse choices, substitutions and customization • Applebee’s operates the largest casual dining chain. – Weight Watchers Menu – Constant Menu Ideation – Limited Time Offers – Advertising & Image 10 places most visited last year
These chains had the largest increase in total system customer traffic last year … A lot of “quick Service”formats here! Based on Change in Actual Number of Systemwide Customers 12 Months Ending February 2005 vs. Year Ago
1. McDonald’s 2. Starbucks 3. Dunkin' Donuts 4. Subway 5. Sonic
6. Krispy Kreme 7. 7•Eleven 8. Wendy’s 9. Quiznos 10. Panera Source: The NPD Group’s CREST® Service
Packaging: Foodservice Meal Solutions
•Packaging is simple. •Cook•in / ship•in. •Frozen •Cook•in bag and/or frozen distribution exempt from USDA Alternative 1, 2 & 3. •Kits with all components are very helpful. Packaging: Conventional Retail Meal Solutions
•Packaging can be complex: food safety and consumer ease. •Simple directions. •Simple handling. •Simple cooking. •Microwavable Conventional Retail Meal Solution Packaging (enhancing comfort foods) Cryovac “Jiffy Pop” Packaging • DarFresh: Microwaveable skin pack Retail Packaging Problem
•New packaging equipment requires extensive capitol investment. •Retailers willing to provide a market test. •Often, meal solution packaging has limited application to other sectors of the business. Shelf Stable Packaging Summary • A historical review of meal solution programs can protect against future product rollout errors. • The most important US food trends are flavor, health (organic/natural), ethnicity and convenience. • Home meal solutions from restaurants will remain the major competition of retail meal solutions. • Retail hot meal solution programs are most successful. Summary (cont.)
• Retailers want total meal solution programs including: training, marketing material, menu development, private labeling, food safety guarantees and supporting literature. • Retail hot foodservice meal solutions have simplified packaging requirements. • Packaging requirements for conventional retail meal solutions remain complex, they require microwavablity and consumer handling ease.