Dive Brief:
- Nontraditional internet-based meat sellers like ButcherBox and Crowd Cow have seen significant growth in the past year, according to Supermarket News.
- Both companies offer cuts and grades of meat that are difficult for consumers to find in their local supermarkets. They cater to shopper desire for premium products and provide direct-to-consumer delivery.
- “The big difference between us and a grocery store is … we are able to do cuts that customers have never had before, or the grocery store would never carry just because the market size is just too small,” ButcherBox founder and CEO Mike Salguero said.
Dive Insight:
The Food Marketing Institute’s “Power of Meat 2017” report found that meat purchase decisions are driven by price per pound, and 60% of shoppers check primary store promotions when shopping for meat products.
Despite consumer interest in plant-based food products and alternative proteins, falling meat prices have led shoppers to buy more beef, poultry and pork. According to an industry report from Rabobank Food & Agribusiness Research and Advisory Group, U.S. meat consumption per capita spiked almost 5% in 2015 — the largest increase in 40 years.
Consumer demand for clean, free-from products extends to the meat counter as well, and cheaper meat prices give consumers the flexibility to trade up to better cuts of beef. Companies like ButcherBox are capitalizing on both consumer desire for health and premium-level offerings by offering clean cuts of meat that aren't typically found in grocery stores. Crowd Cow takes this transparency one step further, allowing participants to "crowd source" an individual, grass-fed cow that they can later select desired cuts of meat from.
The convenience of direct delivery is also a big draw for busy consumers, something that retailers struggle to compete with. One solution is to sell orderes to ButcherBox in-store, or upgrade the butchered meat offerings kept behind the counter. This would be an expensive investment, however, and could lead to waste if the majority of mass-market consumers visiting the meat section are looking for low price rather than high quality.