Growing Deli Opportunity in All-Natural Meats

Consumers are willing to pay for healthy ingredients.

Inflation is, ironically, creating consumers willing to pay a little more at the deli for premium meats, including all-natural meats.

When consumers seek refuge from high restaurant prices in the deli, they are not looking for the cheapest food they can find, but instead see the deli as an oasis offering premium ingredients, including all-natural meats, that can be used to prepare restaurant-quality meals at home.

Retail delis have opportunities to sell premium meats. But the deli must convince customers who have grown skeptical of vague sustainability claims that “all-natural” means something. Unlike organic, there is no U.S. Department of Agriculture definition of all-natural meat.

“One of the most consistent trends is the shift toward ‘clean label’ products, with shoppers seeking meats free from artificial preservatives, colors, and flavors while paying closer attention to ingredient panels,” says Lauren Eni Canseco, executive vice president at Dietz & Watson, Philadelphia, PA. “The category is also being shaped by demand for protein-rich foods, driving growth in uncured deli meats, antibiotic-free poultry and premium sausages.”

Dietz & Watson has offered deli ham, turkey, beef, and salami since 1939, with an emphasis on handcrafted quality.

Many producers are finding greater demand for their all-natural meat products.

“Flavor innovation or unique tasting profiles in products across deli are also getting consumers’ attention, whether that is hot honey, dill pickle or umami-forward profiles.”
— Claire Flannery, Greenridge Naturals, Chicago, IL

“Clean label deli meats made with premium ingredients are trending as consumers actively look for healthier options for themselves and their families,” says Claire Flannery, senior director of marketing and media at Greenridge Naturals, Chicago, IL. “Transparency from the brands they love is a top priority, which has resulted in the rise and popularity of organic, sustainable-focused brands, with minimal and clean ingredients.”

Greenridge Naturals processes locally sourced meats using artisanal Polish methods.

Independent meat research firm Midan Marketing of Chicago, IL, found many consumers willing to pay more for premium products. According to Midan’s Meat Consumer Segmentation research, 52% of consumers say they look for meat with no added hormones, 51% say they want no added antibiotics, while 46% say they prefer meat that is all-natural.

IT’S ABOUT THE ANIMALS

But consumers have become discriminating, even skeptical, and they need to know what all-natural means. Midan’s 2021 study on sustainably raised meat concluded that most meat consumers connected sustainably raised meat primarily to animal welfare and only secondarily to environmental issues.

Most suppliers are ready to offer their definitions of what all-natural means. “Many companies focus on sourcing from animals raised without antibiotics or hormones,” says Canseco.

Volpi Foods has been family-run for four generations since 1902, sourcing all its meat from local, responsibly raised farms in the Midwest, according to Claire Donohue, marketing manager at Volpi Foods, St. Louis, MO. “With its Raised Responsibly standard, every animal is treated with care and raised according to ethical, environmental and quality practices — staying true to Volpi’s promise of natural, simple and delicious foods,” says Donohue.

“The main thing we need to convey is all-natural means no added colors, no artificial ingredients, no binders, minimally processed,” says Cory Dunn, director of retail sales at Lower Family Foods, Richmond, UT. “It’s the best of the best. Some processors use soy or whey protein binders.”

Lower Family Foods has offered premium beef, pork, and poultry for four generations.

Other suppliers agree that all-natural means they use a minimum of artificial ingredients to process meat from animals that are antibiotic and growth hormone-free.

“Our Naturals line of deli meats does not include added nitrates, nitrites, phosphates, artificial flavors or colors,” says Flannery. “Oftentimes, preservatives are added to extend the life of the product, which we avoid in our top-selling deli meats. Our natural deli meats are also free from soy, msg, dairy and gluten, while we hardwood smoke select products (meaning no liquid smoke). We prioritize high-quality, clean-label deli meats as consumers look for healthier alternatives at the deli.”

SHOW THEM AND THEY WILL BUY

Retailers facing the challenge of telling consumers the sustainability story of their meat find part of the answer in the packaging.

“Packaging has become a crucial part of communicating the value of natural meats,” says Dietz & Watson’s Canseco. “Resealable packs have improved convenience and extended freshness, which is especially important for families who want to stretch product use over several days. Clear windows and front-of-pack transparency let shoppers see the product itself and easily identify claims like ‘uncured’ or ‘antibiotic-free.’”

Lower Family Foods also produces grab-and-go packages that let consumers know how the meat is sustainable.

The meat category looks to have gained the upper hand, at least temporarily, in the competition with plant-based alternatives.

“From a nutritional standpoint, lunchmeat offers a favorable balance between protein and calories, which appeals to consumers who are mindful of their overall dietary intake,” says Jeff Wallace, brand manager at Hormel Foods, Hormel, MN. “Freshness has always been important, but it’s more relevant now than ever before. It must be communicated both through packaging and a clean nutritional label.”

For many consumers, the easiest entry into paying more for all-natural meats is the charcuterie board. “Charcuterie boards have had a transformative effect,” says Canseco. “They’ve moved natural meats into a lifestyle category, associated with entertaining, gifting, and social media moments, rather than being seen only as sandwich staples.

“Convenience is another driver, with snack packs, single-serve portions, and pre-sliced charcuterie expanding purchase occasions and attracting younger, on-the-go shoppers.”

CHARCUTERIE BOARD IS A FIRST STEP

Charcuterie boards offer an opportunity the deli can use to cross-merchandise all-natural meats with other premium items.

“The deli has a unique opportunity to cross-merchandise with complementary items, like specialty condiments, artisan cheese and crackers, or even wine pairings,” says Flannery. “Retailers can also inspire customers by showcasing charcuterie board ideas, bundling products for easy entertaining, or sharing recipe cards right at the deli counter.”

Charcuterie boards provide many suppliers with opportunities to introduce their newest products.

“Charcuterie continues to evolve beyond the traditional board,” says Jesse Denes, vice president at Schaller and Weber, New York, NY. “We’re seeing strong demand for items that balance authenticity, flavor and convenience. Consumers are looking for premium, recognizable ingredients and are more willing than ever to explore new formats.”

“Natural meats work well in a variety of cross-merchandising setups. Pairing with cheeses, crackers, and specialty breads creates a natural bridge to entertaining and snacking.”
— Lauren Eni Canseco, Dietz & Watson, Philadelphia, PA

Boards are just one of the opportunities to cross-merchandise all-natural meats. “Natural meats work well in a variety of cross-merchandising setups,” says Canseco. “Pairing with cheeses, crackers, and specialty breads creates a natural bridge to entertaining and snacking. Fresh produce also ties into healthier eating themes and helps consumers imagine balanced meal solutions. Beyond the deli section, natural meats can be featured alongside craft beers or wines for seasonal promotions, picnic and tailgating displays, or even meal-prep kits.”

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Deli Slicers Cut Labor Costs

New deli slicers save on labor by precisely weighing the meat and cheese as they slice.

“The Hobart HS Series portion scale slicers are a newer addition to the marketplace,” says Carolyn Bilger, marketing director at Hobart Food Prep Equipment, Silverwater, Australia. “They are available in a manual model and an automatic model, and both have an integrated scale that slices meats and cheeses to a specific weight. Because the scale is integrated, it eliminates the need for the deli operator to walk to a separate scale and takes the guesswork out of achieving the correct product weight.”

This labor-saving feature could make a difference as the deli becomes ever more cost-conscious in these inflationary times.

“As labor costs increase across the country, we are witnessing a rise in pre-sliced deli meat,” says Claire Flannery, senior director of marketing at Greenridge Naturals, Chicago, IL. “Integrating slicing technology into manufacturing has allowed companies to minimize labor costs across production.”

In addition to trimming labor, the newest slicers also offer unprecedented accuracy. “Both models accurately weigh product up to 10 pounds in increments of 0.01 pounds or 0.1 ounces,” says Bilger. “The HS7-1PS slicer has a SmartSlice function that allows the slicer to operate until it reaches an operator-selected product weight. A stack function also stops when the slicer reaches the desired product weight. It resumes slicing to the same weight when the operator places dividing paper and selects the start button.”