Supermarket Perimeter - May 2022 - 42

Meat & Poultry
Chicken
of 2020 at the outskirts of the pandemic.
" With the lingering impacts of COVID-19, we continue to see
consumers enjoying cooking at home, and the affordability and
versatility of chicken creates an opportunity for the growth we are
experiencing in retail, " said Bill Creighton, vice president of retail sales
for Springdale, Ark.-based Tyson Foods. " From a trend perspective, we
have seen the premium segment of our business grow faster than the
rest of the market. "
However, given record-high inflation, the company expects
consumers and foodservice operators to shift to products delivering
comfort and value.
" Chicken, as an affordable, versatile, and healthy option, is wellpositioned
for continued growth in this environment, " Creighton
said. " Both tray pack fresh poultry and fully cooked, including chicken
nuggets, strips, etc., have continued to see strong demand coming
out of the pandemic. As consumers look for alternative protein
options, chicken has been an economical choice over the past year as
consumers continue to want convenient at-home options. "
Chicken has grown to be a $13.7 billion category at retail and it's still
very strong relative to other proteins, according to the latest data from
IRI. And even though in the last year, dollar growth flattened by .5%,
chicken sales are up 14% compared to 2019.
" Chicken wasn't all that different from the other protein
manufacturers during the pandemic, " said Chris DuBois, senior vice
president of protein practice leader for IRI. " Basically, manufacturers had
to deal with so many production issues and overwhelming demand.
Over the last 26 4-week periods, meals made at home have averaged
between 77-83% and we believe it will remain elevated. "
IRI data also shows that while production issues and supply chain
issues hampered everyone, volume basically remains elevated for meat
compared to 2019. Consumers have learned to cook, and their meat
purchase routines have changed.
" In general, most Americans are buying a broader assortment of
meat cuts than they did prior to the pandemic, " DuBois said. " Cooking
skills are improving and comfort with different cuts and proteins has
increased. "
Hot trends
In response to some notable trends happening in the marketplace,
Tyson Foods has moved all of its Tyson-branded retail production to No
Antibiotics Ever and now offers Smart Chicken products with attributes
including Air Chilled and Organic.
" Across new products and innovations, the Tyson brand has launched
on-trend products across both fresh and fully cooked including our
Tyson Slow Cooker and Instant Pot Meal Kits and Tyson Air Fried
42 - MAY 2022
supermarketperimeter.com
Tyson and other
suppliers are
meeting surging
demand for
products cooked
in air fryers.
BY KEITH LORIA
ONE OF THE LARGEST IMPACTS ON POULTRY IN 2022 has been the
continued increase in demand, which of course saw a big rise in March
chicken nuggets, strips, and bites, " Creighton said. To help fill the
demands experienced by its customers, Tyson Foods is investing in
additional capacity including a new, $425 million fresh chicken plant in
Humboldt, Tenn., and a new, $300 million fully cooked plant in Danville,
Va. The company has also invested aggressively in deboning and
labeling automation to help get more nutritious protein on the plates for
consumers even more quickly.
Chicken breast is still the biggest seller at 58% of total chicken
sales but wings and boneless thighs continue to steal the show, IRI
data shows.
" Wings are up again almost 14% to $1.4 billion, and that's just in food
retail, " DuBois said. " They are also up in foodservice. Every year, I wonder
if we've seen the top in wings and every year there's phenomenal growth.
This might be one of the all-time great growth stories in any supermarket
category and it's a tribute to great marketing and product. "
Boneless thighs have also had strong growth and while they are a
little smaller than wings in size, boneless thighs have become a musthave
category in almost every supermarket.
The rise of dark meat has been a huge multiyear trend. The American
chicken industry was built on boneless, skinless chicken breast and dark
meat was largely an afterthought.
For the last 3-4 years, dark meat has been growing much faster than
white meat and it might be one of the most important changes across
the meat case, DuBois said.
" While chicken has been relatively flat overall, if a producer is selling
organic or NAE chickens, then they likely had a great growth last year, "
DuBois said. " These two feed types are leading relative growth in chicken. "
YULIA - STOCK.ADOBELCOM, TYSON
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Supermarket Perimeter - May 2022

Table of Contents for the Digital Edition of Supermarket Perimeter - May 2022

Supermarket Perimeter - May 2022 - Intro
Supermarket Perimeter - May 2022 - STPa
Supermarket Perimeter - May 2022 - STPb
Supermarket Perimeter - May 2022 - 1
Supermarket Perimeter - May 2022 - 2
Supermarket Perimeter - May 2022 - 3
Supermarket Perimeter - May 2022 - 4
Supermarket Perimeter - May 2022 - 5
Supermarket Perimeter - May 2022 - 6
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