Ground Beef is Q1’s Shining Star
78-84% Lean and Chuck show strongest growth
| Ground Beef Share of Total Beef |
|
Dollar Share |
Pound Share |
| Q1 2007 |
36% |
45% |
| Q1 2008 |
35% |
45% |
| Source: FreshLook Marketing Total US Ground Beef dollar and pounds |
Ground beef continues to dominate beef category sales. Despite the fact that total beef dollar sales declined 1.1% and pounds were down 2.4% for the first quarter of 2008, ground beef held onto its commanding position, maintaining its impressive share of dollar and pound sales.
When reviewing the segments within the Ground Beef category, Regular Ground Beef (70-77% Lean) continues to maintain the largest share of the total category's pound sales, with more than 160 million pounds sold, or 33.1% of the category. Dollar sales decreased 2.7%, with pound sales decreasing 5.2%.
Worth noting in the first quarter is the sales growth of the 78-84% Lean and Chuck segment. Dollar sales for the segment were up 2.0%, while pound sales increased slightly (0.7%). For Q1 of 2008, 78-84% Lean and Chuck was the only segment that experienced increases in both dollar and pound sales. Dollar sales increased 2.0% at $394 million. The segment's pound sales experienced a slight increase of 0.7%.
|
Total US Ground Beef Dollar and Pound Sales
Q1 2008 vs Q1 2007 |
|
Beef Dollars |
Beef Pounds |
|
Ground
Beef Segment |
Dollar Sales
(Million)
Q1 2008 |
% Change
vs Q1 2007 |
Pound Sales
(Million)
Q1 2008 |
% Change
vs Q1 2007 |
| 70-77% Lean |
$358 |
-2.7% |
160.4 |
-5.2% |
|
78-84% and
Chuck |
$394 |
2.0% |
150.8 |
0.7% |
|
85-89% and
Round |
$241 |
0.0% |
81.3 |
1.8% |
|
90-92% and
Sirloin |
$181 |
-2.1% |
46.6 |
-5.6% |
|
93-100% Lean |
$158 |
-4.9% |
40.8 |
-10.7% |
|
Other* |
$17 |
-29.7% |
4.9 |
-36.6% |
|
Total Ground Beef |
$1,350 |
-1.6% |
485 |
-3.3% |
|
Source: FreshLook Marketing Total US Ground Beef dollar and pound sales |
The performance of both 78-84% Lean and Chuck and 85-89% Lean and Round trended above total beef’s performance for the quarter.
Looking at the rest of the ground beef category, 85-89% Lean and Round dollar sales remained flat, while pound sales increased 1.8%. 90-92% Lean and Sirloin experienced a 2.1% decrease in dollar sales and a 5.6% drop in pound sales. 93-100% Lean recorded the largest decline, decreasing 4.9% in dollar sales and 10.7% in pound sales.
Ads for total ground beef were up 18.9%, with 520 more ads running in Q1 2008 than Q1 2007, for a total of 3,267 ads. "A" ads were also up 10.36%, with 154 more "A" ads, a total of 1,641, running in Q1 2008 than Q1 2007.
With burgers the #1 item for the grill, summertime is ground beef's peak sales season. Be sure that you continue to stock the categories your customers are demanding. As consumers become more health conscious, segments such as 85-89% Lean and Round are becoming more popular while the more moderately priced segments should continue to experience growth in light of rising overall food prices.
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