Dive Brief:
- Hormel's Jennie-O Turkey Store brand is feeling optimistic about the future of ground turkey as it goes head to head with competition like ground beef.
- Ground turkey household penetration is 24% and has been incrementally increasing, which leaves Jennie-O with room to grow sales, Glenn Leitch, president of Jennie-O Turkey Store, told Food Business News. The brand is targeting millennials in particular, household penetration for which is 28% and growing at a faster rate than the general population.
- Ground turkey can compete with fellow lean meat pork but can offer a lower price point or similar price point for a premium product, Leitch told Food Business News.
Dive Insight:
Jennie-O has been recovering steadily from the bird flu outbreak that affected many of its turkey flocks, particularly in hard-hit Minnesota. The company has recovered about 85% of its flocks as of Sept. 1, and at that rate, by January or February, "Our production plants should be operating at a normal or near normal level," Leitch told Food Business News.
However, some experts are concerned that the bird flu could return in the fall as the temperatures drop, which could impact Jennie-O's plans for recovery.
With consumers reacting to trends and industry realities like the slowing demand for conventional dairy products and severe egg shortages, alternatives are on the rise. The same could go for turkey, as its biggest competition, beef, could be affected by dietary guidelines.