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Not that long ago the mention of meat substitutes made some mainstream shoppers cringe. Most items were geared to vegetarians, taste was often bland and burgers ruled the category. But times and consumers have changed. Manufacturers are introducing replacements for almost any meat with both taste and eye appeal. Health conscious consumers are shopping the category in growing numbers and producing growing sales.
It's not just vegetarians who opt for meat substitute products. A healthier diet is a primary purchase driver for many consumers. The 2005 Healthy Focus Trend Report finds 95% of shoppers are "health active"— they select food for healthful reasons at least some of the time; 60% say they usually choose healthy items. Currently, 14% of the general population is either already vegetarian or aspiring to a vegetarian diet and another 30% occasionally eat meatless meals, according to data from Ipsos, a global market research firm. Of these households, 46% are consuming more meat substitute products this year than last year. Key reasons are eating less red meat (60%) and for better health (43%).
The typical meat alternative user is a female between the ages of 25-54 with heavier usage in the Northeast and West Coast, according to demographics provided by ConAgra's Lightlife Foods. "Lightlife consumers see the positive connection between life and health and seek food products that mirror their lifestyle choices," says Susan Rolnick, marketing director, Lightlife, Turner Falls, Mass. "Our line of 100% natural, nutritious, meat free, meal solutions range from ingredients like Smart Ground, Gimme Lean and Smart Strips to our latest ready to eat Smart Chili and Smart BBQ."
"Today, more than ever, consumers are seeking 'better for you' foods," says Michele Miksche, brand manager, Boca Meatless Products, Kraft Foods, Northfield, Ill. "They are very aware of saturated fat and trans fats as well as other health matters like obesity. Meat substitutes offer a convenient alternative that can be easily incorporated into a balanced diet."
New from Boca are meatless breakfast wraps featuring a whole wheat tortilla filled with a mix of egg whites, cheese and meatless, pork-flavored sausage. Available in original and Southwestern flavors, the wrap has 55% less fat than leading sausage breakfast wraps and can be heated in the microwave.
"We offer more than burgers; we have consumer favorites like lasagna and chili. We even offer 'chick'n' options," says Miksche.
"Boca does well because many consumers feel they have to forgo their favorite foods to improve their diet but with Boca meatless products, they can enjoy the great taste of their favorite dishes without the guilt," he says. "Boca products also offer the nutrition consumers are seeking. All Boca products are lower in saturated fat, have no trans fat and most are lower in calories and cholesterol than their traditional meat-based counterparts."
"Veggie foods aren't just for vegetarians anymore," says Jim Poppens, vice president marketing, frozen foods, Kellogg Company, Battle Creek, Mich., maker of Morningstar Farms. "With great tasting food and compelling product innovations, we believe you can bring new consumers into the category such as meat-eaters who are proactive about eating well and anyone who just wants to bring creativity to healthy eating."
As part of the effort to attract consumers, Morningstar Farms changed its packaging to a softer green with a new logo and photography.
Poppens says that, from Morningstar Farms' perspective, growth in the category is being driven by innovation and variety. "In 2006, we introduced two unique food forms to the category—Meal Starters and Veggie Bites. The Meal Starters line features vegetarian sausage crumbles, steak strips and 'chik'n' that form the base for all recipes consumers create. New Veggie Bites are available in broccoli cheddar and spinach artichoke flavors.
"These items are bringing vigor and excitement to the meal solutions segment," says Poppens.
"Meal solutions for the category are up 13.8% but for Morningstar Farms, the meal solution segment is up 58.9%," he points out. "We've expanded beyond meat substitute items. Veggie Bites adds a new eating occasion—snacking. This new item has only been on the market since January 2006 and is already seeing success. Veggie Bites seem to be an entry point for new category consumers who are interested in trying veggie foods."
For retailers wishing to create space for new category items, Poppens offers the following advice: "In conjunction with innovation, a 'variety vs. duplication' strategy is imperative. In a category which typically competes in one door, retailers cannot afford to let repetitive SKUs take up valuable space. By supporting the category leader, the entire category can grow.
"Retailers that have implemented this strategy or a variation have experienced growth on all fronts," he says. "A major Eastern retailer using a variation of this brand strategy saw core frozen veggie food sales increase 11% over $495,000. Average items per store increased by 3 for the category and base pricing increased by almost 46 cents. Morningstar Farms led the way with an 11.1% dollar increase, the addition of almost 3.7 new items and an increase in base pricing of almost 44 cents."
Kashi, another Kellogg line, launched several all-natural frozen entrees in July 2006 including one vegetarian—Black Bean Mango. Another vegetarian selection, Pesto Pasta Primavera, will be launched in January 2007. "We believe our Kashi All-Natural frozen entrees have a distinct point of difference," says Poppens. "They combine wholesome ingredients and fiber, protein and healthy fats to leave you feeling full and fulfilled."
Category Growth
"Over the years, consumers have become more aware of what they eat," says Larry Praeger, vice president, Dr. Praeger's Sensible Foods, Elmwood Park, N.J. "With trans fat and cholesterol being such hot health topics, people are looking for foods that still offer the taste and appeal of a burger or chicken nuggets without the health implications of fatty meat. The veggie burger market has surged in the past few years as emphasis is now placed on getting ample servings of vegetables, fiber and vitamin benefits.
The bottom line though, is that meat substitutes need to be tasty," says Praeger. "Healthy eating is easier when good-for-you foods taste more like the real thing. Dr. Praeger's has spent a great deal of effort to offer foods that are as tasty as they are good for you." The company has several new products due to hit shelves in 2007 and is launching a children's line of variations on Dr. Praeger's old favorites, also due in early 2007.
Vegetarians, celiacs and those on a kosher diet purchase Dr. Praeger's products as do families looking for convenience and taste "in addition to healthy meal alternatives," according to company research. Sales of Dr. Praeger's Sensible Foods California Veggie Burgers grew 70% over the past year in the Northeast and Southeast U.S. regions, Praeger notes.
"Gardenburger serves a well-educated consumer who is concerned about health," says new CEO Steve Welch. Previously in the consulting industry, Welch has been on the job six months at the Irvine, Calif.-based company. "Consumers want to live longer and they know about nutrition. When Paul Wenner founded Gardenburger there was nothing like it on the market. Our company was founded on grain-based products and we're dominant in this area. Gardenburger has about 80 different SKUs—riblets, chicken wings, wraps, burgers and a few entrees.
"We formulate our products to appeal to those looking for meatless alternatives and for those looking for texture and good mouth feel," says Welch. "We think we're very in touch with our consumers, we know what they want."
Two newly added SKUs include a breaded chicken patty and a California burger—both with Omega 3 fatty acids. "We've spent a lot of time in R & D and have exciting, strategic plans for first and second quarter 2007 including launches of cutting edge products, based on customer research," he says.
"Meatless products have expanded beyond burgers," says Steve Warnert, director of sales and marketing, Amy's, Santa Rosa, Calif. "More and better products have hit the market, both burgers as well as ingredient-type items. Retailers are devoting more space to the meatless section due to sales growth. Advertising by large manufacturers who have acquired meatless brands has attracted more shoppers to the category."
Amy's offers four veggie burgers, each with its own unique flavor profile. According to SPINScan, Amy's California Burger is the number one selling meatless "burger" on the market in the natural foods channel. "In addition to burgers, we offer two popular dinners: country dinner whole meal with a vegetarian Salisbury steak, mashed potatoes/gravy, veggies and a terrific apple crisp; and a meatless veggie loaf with organic mashed potatoes and a side of vegetables. The product is also available in a 'light in sodium' version. We also recently introduced vegetarian breakfast patties as part of our breakfast line," Warnert says.
Private label sales of meat substitutes have yet to seriously affect brand sales and remain at the bottom of category sales rankings. "There aren't many insights on the private label business for this category but there are some insights that would suggest consumers are brand loyal," says Lightlife's Susan Rolnick. "According to Ipsos findings, 74% of consumers state that some meat substitute brands are better than others and 53% are more likely to buy a new meat substitute from a brand they know."
Amy's Steve Warnert offers another view: "The leading brands have done a good job of offering good quality while keeping prices affordable. Private label offerings are very limited and those that are out there are still relatively new."
Gardenburger CEO Steve Welch says the purchase driver for meat substitutes is buying a brand consumers know and trust "because they know what to expect." Meat substitutes aren't just burgers anymore. The variety of items offered by manufacturers, and the demand from health conscious consumers signal continued growth in the category.
author: By D. Gail Fleenor