NOSHSCAPE Beyond ‘Bubba’: How Better-For-You Jerky is Changing Convenience Chew on this: at more than $1 billion in sales last year, the jerky business is just entering the growth phase of its life cycle. Jerky — in all its snacking forms — is forecast to grow an annualized 4.2 percent through 2022. Much of that will be driven by the natural jerky set, according to research firm IBIS World. To capitalize on this potential, both emerging and major jerky companies have launched products emphasizing their artisanal, natural, gourmet or premium origins. While those offerings have mostly been seeded in the grocery channels, for jerky, the convenience store has always been —
tial, The Hershey Company, developing a snack portfolio of its own, acquired Krave for $220 million in 2015. The company’s success is reflective of an overall change in consumer preferences. Premium is the name of the game, with more and more consumers seeking callouts from organic and grass-fed to antibiotic-free labels. In order to stay relevant to category manager, new brands are creating premium options while legacy brands are acquiring or innovating. “People’s palates today are more sophisticated,” Lance Pitts, 7-Eleven category manager for snacks, told NOSH. “While
their familiarity and in part because of their lower price point. According to market research firm IRI, the meat snacks category saw over $1.549 billion in sales, with jerky raking in over $694 million of that total within the last year ending in October. The leader, Jack Link’s Jerky, had about $324 million in sales — quadruple that of its closest competitor, Old Trapper Smoked Products. Brian Levin, founder of Colorado-based Perky Jerky, said the struggle for many emerging brands in the convenience channel is finding the right balance to reach both old and new jerky consumers. Many companies
and will most likely always be — king, and anyone who wants to rule the category will have to win the c-store as well. While the $550 billion industry was largely built on the back of “Bubba,” its composite blue collar consumer seeking beer, cola, and snacks, it’s moving past that. While Bubba remains a core jerky consumer within convenience, retailers are also looking to cater to new consumers that are starting to frequent c-stores: millennials, parents and women. Meat snacks are among the most popular snacks in the savory snacks category, witnessing a compound annual growth rate of nine percent over the past five years. Still, while jerky and its high-protein benefits suddenly became on-trend, it hasn’t always been an innovative category. It wasn’t until 2010, when Krave first entered the scene with its natural credentials and gourmet flavors that jerky started to resonate. Because of its apparent poten-
popular, original, teriyaki and peppered flavors are still available, today’s flavor variety is more complex with recipes like brown sugar bourbon or even sriracha.” Many jerky brands have avoided convenience as a launch platform. But now they are warming up to the channel where the category was born. Within the last year, emerging brands like Country Archer, Chef’s Cut, Perky Jerky, Fusion Jerky, Lawless Jerky and The New Primal all announced growth within the convenience sector. Even tea titan Arizona Beverages is getting in on the jerky action with the launch of their first natural food line, Crazy Cowboy jerky. Pioneering convenience’s betterfor-you jerky set hasn’t been without challenges for emerging brands, though. While these new entrants are making traction in the space, legacy brands still maintain their grasp on convenience with total category sales, in part because of
are still trying to figure out the intricacies of the convenience channel, even down to where the product is placed, he said. “It’s interesting from the perspective of the better-for-you customer set because it is not the same consumer who is shopping the jerky set. This is something these guys are just figuring out,” Levin said. “They will put better-for-you offerings in jerky, but it doesn’t do as well if you put jerky in a better-for-you set.” That hasn’t escaped the notice of the major CPG companies, who have taken advantage of the growing meat snack category by purchasing smaller brands. Hershey’s led the charge with its acquisition of Krave in 2015. Then Jack Link’s bought grass-fed beef supplier Grass Run Farms in order to launch its own natural line, Lorissa’s Kitchen. Last year, Chicago-based Conagra Brands — the parent company of Slim Jim — acquired Thanasi Foods, the maker of Duke’s meat snacks.
18 BEVNET MAGAZINE – MARCH/APRIL 2018