Priced out of Organic, yet still wanting to tap into the red-hot specialty meat market, retailers like Don Rellstab increasingly find themselves stuck in the middle.
That may sound like a tough position. But for Rellstab, manager of Pennington Quality Market in Pennington, N.J., it's overwhelmingly an advantage for his store. Two years ago he replaced his organic beef selection with Naturewell Natural Beef, a line free of antibiotics, hormones and steroids, and humanely raised on a grass-to-corn diet. Processors like Naturewell can be more accessible for retailers and, while not certified organic, allow his customers to eat ethically.
“The organic beef prices were so high,” said Rellstab. “You had to buy the whole cow, so to speak. Although we are a high-volume store, we just couldn't sell off all the organic beef before it went bad. So Naturewell came along, and with them you can buy in pieces. Our customers love it.”
As demand for ethical options nudges its way into the mainstream, the middle-ground food market — between conventional and organic — has blossomed. And nowhere is this more true than in the complex meat category, where label claims like “grass-fed,” “hormone-free” and “humanely raised” resonate with consumers. Indeed, it seems “organic” is no longer the sole representative of wellness in the meat department.
“Now we're seeing a whole new consumer — a consumer who is perhaps not as committed to the cause, but they do want to make the right decision,” said Kimberly Lord Stewart, a food writer and author of “Eating Between the Lines,” a book that examines label claims throughout the food industry. “However, they have different constraints, like budget, availability, and even just, ‘Hmm, I'm not sure I believe this.’”
The role of price cannot be underestimated in influencing the purchase decision. The average cost of organic beef is roughly three times the price of conventional beef. With some cuts approaching the $25 mark, it's not difficult to picture a young mother on a budget who, though she buys organic baby food and cereal and milk, might feel compelled to look for a mid-priced beef alternative that shares at least some of the qualities found in certified organic.
At Lubbock, Texas-based United Supermarkets, the only exclusively organic meat products sold are Organic Valley lunch meats and hot dogs. The rest of the special-claims category is taken up by middle-ground offerings such as Buddy's Natural Chicken, and their best-selling Certified Angus Beef Natural line, sold at United's high-end Market District stores.
“People just aren't quite ready for the organic market,” said United spokeswoman Michelle Owens, who added that the chain will probably carry more organic options in the future as the popularity and price dynamics fall into place. “It's baby steps, and the natural option is a nice in-between.”
Considering the popularity with consumers and cost-effectiveness for retailers, it's a buzz kill to think that there could be a catch to this middle-ground option. But that's just the case.
It's no secret that the natural meat industry is a loosely regulated one. The U.S. Department of Agriculture's definition, which dates back to the early 1980s, stipulates that natural meat be “minimally processed.” This covers the processing side of production, but not how animals are raised.
Even seemingly specific label claims are defined broadly. The USDA mandates that to be able to label chicken as free-range, “producers must demonstrate to the agency that the poultry has been allowed access to the outside.” How much and what kind of outside access opens a wide loophole for processors.
Consumers Union, the Center for Science in the Public Interest and other activist groups have regularly criticized the USDA for this broad interpretation of the rules. The growth of the category, however, has prompted the agency to revisit at least some claims to provide more specific guidance. Among them is developing standards on what constitutes grass-fed beef.
In the meantime, however, a state of confusion looms because what people expect “natural” and similar claims to mean doesn't square with the legal definition. They might buy meat labeled “no hormones” or “no antibiotics,” thinking these were never administered to the animal, when in reality they were given them up until a couple weeks before slaughter, then allowed time to purge from the animal's system.
Studies show many consumers are upset by this dissonance, and are demanding to get what they pay for. A recent survey conducted by the Washington-based National Consumers League revealed that three-quarters of consumers polled want products labeled as “natural” to contain at least 90% or more natural ingredients. In that same vein, a June poll by Consumer Reports magazine found that nearly 90% of respondents feel that meat labeled “natural” should come from animals raised from birth on a “natural diet without drugs, chemicals or other artificial ingredients.”
To combat the confusion, some processors have started offering meats they claim to be “all natural” or “true natural,” setting their product on a higher pedestal than the “natural” options. But oftentimes this just compounds the problem by adding yet another vague set of label claims to the mix.
Ken Chapin, meat director at Yoke's Fresh Market, Spokane, Wash., admits that the “true natural” line of beef and lamb he recently started carrying does just this, even though it actually does adhere to a higher-quality standard.
“You can go out into the market and see a natural and a true natural, and both are labeled ‘natural,’” he said. “I think that's confusing for the customer.”
The proposed solutions regarding this issue make for a lively, ongoing debate. There is, however, one answer that analysts, retailers and manufacturers all agree on: educating the consumer.
“There's certainly an opportunity to educate people on what it means to be natural or organic,” said Gwynne Rogers, business director of the Natural Marketing Institute's Lifestyles of Health and Sustainability department.
The question is, on whose shoulders does this responsibility fall?
Mel Coleman Jr., president of Golden, Colo.-based Coleman Natural Meats, believes it is the producer's job to educate the retailer, who in turn should help enlighten the consumer. Coleman Natural was the first meat brand to receive the USDA's “natural” seal back in the early '80s, and ever since then Coleman and his father, founder Mel Coleman Sr., have worked to promote the label as a “naturally raised” standard. Coleman says his meats stick to this definition, and are promoted as having “no antibiotics … ever” and “no hormones … ever.”
Too many companies take advantage of the gap between consumer perception and the legal definition of natural meat, said Coleman.
“We need to get the labeling changed so that when you see a ‘natural’ label at retail, it specifically defines how the animal was raised,” he said.
To educate retailers and other players in the industry about his products, the younger Coleman frequently meets with supermarket executives. Coleman Natural also provides shelf talkers and other educational display materials that can be posted in a meat department. These usually include an 800 number that customers can call if they have any questions.
“We try to educate retailers on what our product is, and why it's different from other products out there. We take that responsibility very seriously,” said company spokeswoman Robyn Nick. “Beyond that, there's also a responsibility for the retailers to take that ball and run with it to the consumer.”
Lord Stewart agrees that the responsibility falls to everyone involved, including consumers. However, she explained that the retailer has the greatest responsibility, given that they have the most direct relationship with the consumer. To her dismay, she's found that many of the retailers she meets with are unaware of the ambiguity surrounding natural meats.
“Because consumers no longer have a relationship with the butcher, the baker or the farmer, the retailer has a role to play here,” Lord Stewart said. “And it's something that's relatively new for the conventional grocer.”
Convincing livestock farmers and processors to adopt natural farming practices is difficult, though more and more are coming around, said Mel Coleman Jr. An easier solution lies in clearly defining the manufacturing process behind natural meat brands. By providing this transparency, sources say, retailers and producers will help inform consumers and create a market of choice where people can make purchase decisions based on their personal standards for price and ethics.
When Pennington Quality Market first switched to the Naturewell brand beef, Rellstab and store associates put themselves front and center in the meat department, discussing the new line with customers. They talked about what the natural label meant, then urged people to take some home to try.
“When we first switched to the Naturewell, there was a little reluctance,” he said. “So we had to be out in the store talking to the customers who normally buy organic, and once they took it home and tried it, they liked it.”
Pasture Preferences
Stampede! Well, not quite, but bison and grass-fed beef are definitely setting a strong pace in the supermarket meat department.
Consumers are looking for healthful, ethically raised meat, and bison and grass-fed satisfy both requirements. Bison meat boasts less than half the fat of conventional beef, and is always pasture-raised. According to the National Bison Association, sales in the first half of 2007 were up 17% over the same period last year.
Health benefits are also part of the marketing message for grass-fed meat, which is typically low in cholesterol and high in omega-3 fatty acids, among other things. Patricia Whisnant, president of the American Grass-Fed Association, said grass-fed meat comprises 5% of the current market, and could grow to 10% over the next five years.
A regulated label for the grass-fed industry is currently in the works by the U.S. Department of Agriculture.
“A lot of people who come to this niche market do so not just because they perceive it to be healthier or safer, but they come for the issues of humane treatment and environmentally friendly agriculture,” she said.
Lubbock, Texas-based United Supermarkets is currently developing a grass-fed meat program. It's already carrying bison in the meat department, offering multiple cuts in its Market District stores.
“We have the full line — steaks, strips and ground,” said company spokeswoman Michelle Owens. “The flavor is wonderful, and it's easy to cook with.”
— JW
Good Advice
- Seize the opportunity. Meat is the fastest-growing category in the natural and organics industry.
- Realize that middle-ground meats between conventional and organic are a profitable, cost-effective niche.
- Learn about the types and brands of meat carried. How were they raised? How were they processed? What is their value?
- Educate consumers as to what label claims like “hormone-free” and “humanely raised” mean.
