Capitalizing on Potential

By Andy Hanacek, executive editor

Sausage makers are working hard to find the right combination of products that deliver taste and other benefits that consumers demand in order to grow the category.

The more things change, the more they stay the same — it seems the sausage industry reflects that statement pretty well.
Despite plenty of innovation and reported success from several companies in response to innovative products, retail sales data gathered from Information Resources, Inc., and foodservice data gathered from the Foodservice Research Institute’s MenuMine database show the sausage category holding steady at best, slipping a bit at worst, as a whole.
Yet, if you ask the folks making the sausage, the times aren’t as bad as they seem — excitement abounds.
Take the folks at Sara Lee Food and Beverage, makers of Jimmy Dean products, who are plenty excited about their advertising campaign and the new products they’ve rolled out.
“We had a wonderful year,” explains Jim Ruehlmann, vice president of breakfast and snacking for Sara Lee Foods. “It’s always a great year to be in the Jimmy Dean business, but we saw pretty good growth across our Jimmy Dean portfolio, and we’re feeling pretty good about the future.”
Jimmy Dean’s success may be the result of careful new-product planning and a popular ad campaign that hit the airwaves promoting the convenience and great taste of Jimmy Dean breakfast products.
“It’s not just a function of taking a new product and throwing it on the market,” Ruehlmann adds. “You have to do your homework with the consumer, to make certain that you thoroughly understand the consumer need, and then you’re bringing a product forward to meet that need.
“We’ve also been blessed with the addition of wonderful advertising that has aided and abetted our communication with consumers,” he continues. “It’s been remarkable the amount of feedback that we’ve been getting on our new Sun Campaign. It has done remarkable things for us. We do tracking studies on our advertising communication, and by every sign that we’ve gotten, the communication has been robust with consumers.”
Jimmy Dean’s newest products — its Skillets and Bowls products — hit on the broad consumer demand for convenience and extend it into the breakfast daypart.
“What we’ve tapped into with Skillets is this area called ‘speed-scratch,’” Ruehlmann says. “What we’ve tried to do is take the first two hours out of the preparation scenario and let the consumer finish it to his or her tastes and call it their own.”
Ruehlmann adds that the bowls tap into the on-the-go convenience of the fast-paced adult world.
“They can eat it at home, at the office — if they’re running late, they can grab it and take it with them,” he says. “It takes out the need to go through a line at a cafeteria or quick-serve restaurant. It’s two minutes and we’re ready.”
Valerie Lester, director of marketing for Hillshire Farm, sees convenience as a main driver in breakfast sausage as well.
“Breakfast consumption continues to trend to more convenient alternatives,” she says. “Jimmy Dean frozen breakfast options’ dollar sales were up 32 percent and consumption was up 35 percent. Convenient breakfast options continue to drive growth.”
Outside the breakfast daypart, convenience takes a side note to taste. Sausage is sold on taste, and sausage manufacturers tend to agree that if a new product cannot pass the taste test and be craved by consumers, then it is typically a product that is not worth making, particularly in the area of healthy food and nutrition.
“[Healthy] could mean better nutrition, lower cholesterol, less fat—there are lots of different things,” says Ruehlmann. “We’ve done some work to better understand it, … but I would say that this is an area that is open for continual work on the part of manufacturers, whether it’s us or our competitors. And I think there’s a pretty good prize out there for the first person to capitalize in this broad area of health and nutrition.”
At Johnsonville Sausage, LLC, taste is paramount — it is a mantra that they live by day in and day out. However, they realize that there is an enormous void that needs to be filled, and they are striving to fill as much of that gap as they can.
“Sausage is typically two percent of every meat department, so that’s why … we have great opportunities across all of our product lines to grow this category,” Tom Wolff, director of marketing, explains. “So, sometimes we’ll focus on one [product] more than another, but when we look at the whole category, there’s tremendous growth potential for this category.”
Now, sausage manufacturers simply need to fill in the gaps and bring consumers the products they crave in order to start growing the category and reaping the benefits of delivering their great-tasting pride and joy.
Top Foodservice Segments Serving Sausage in 2006
Foodservice segment Sausage Items Percent*
Family Dining Chain- Breakfast/Bakery/Cafe 610 29.20
Family Dining Indep.- Coffee Shop/Breakfast 206 9.86
Non-Com-College/University 137 6.56
Family Dining Chain- Pizza/Italian 118 5.65
QSR Chain- Burgers 108 5.17
QSR Chain- Sandwiches/Bakery 80 3.83
Non-Com-Business & Industry 63 3.02
Casual Chain- Theme/Bar 63 3.02
Casual Chain- Italian Dinnerhouse 62 2.97
QSR Chain- Pizza 60 2.87
Non-Com-School 47 2.25
Non-Com-Nursing Home 43 2.06
Non-Com-School District 42 2.01
QSR Chain- Chicken 34 1.63
Casual Independent- American 28 1.34
Non-Com-Hospital 25 1.20
Fast Casual Chain Breakfast/ Bakery 21 1.01
Ethnic Neighborhood-Hispanic 21 1.01
Family Dining Chain- Buffet/Cafeteria 21 1.01
* - of 2,089 sausage items
SOURCE: Foodservice Research Institute, MenuMine database
Sausage: Not Just for Breakfast
Menu Part Sausage Items Percent*
Breakfast Entrée 891 42.63
Breakfast Sandwich 257 12.30
Pizza 255 12.20
Breakfast Side Dish 162 7.75
Sandwich 157 7.51
Prepared Entrée 126 6.03
Center of Plate 56 2.68
Hot Dog/Polish Sausage 48 2.30
Appetizer 42 2.01
Side Dish 30 1.44
* - of 2,090 sausage menu items in 2006
SOURCE: Foodservice Research Institute, MenuMine database
Top 5 Sausage Menu Items
Menu Item # of appearances Percent*
Breakfast Sausage Side 102 4.88
Breakfast Sandwich w/Cheese/Egg/Sausage 74 3.54
Pancake Entrée w/Sausage 65 3.11
Sausage Pizza 47 2.25
Biscuits and Gravy w/Sausage 46 2.20
* - of 2,090 sausage menu items
SOURCE: Foodservice Research Institute, MenuMine database
Hot Dogs on the Menu by Sector — 2006
Market Sector Items Percent*
QSR Chain Sector 195 37.72
Non-Commercial 161 31.14
Casual Chain Sector 43 8.32
Midscale Chain Sector 37 7.16
Fast Casual Chain Sector 35 6.77
Midscale Indep. Sector 32 6.19
Cutting Edge Indep. Sector 7 1.35
Casual Indep. Sector 7 1.35
* - of 517 hot dog menu items
SOURCE: Foodservice Research Institute, MenuMine database
Top Foodservice Cuisines Menuing Sausage in 2006
Cuisine Sausage Items Percent*
American Breakfast Cuisine 620 29.67
American-Regional Cuisine 556 26.60
Italian Cuisine Family 494 23.64
American-Traditional Cuisine 134 6.41
Latin Cuisine Family 100 4.78
N. European Cuisine Family 80 3.83
French/Continental Cuisine Family 41 1.96
Cuisines for Breakfast 22 1.05
Mediterranean Cuisine Family 22 1.05
* - of 2,090 sausage menu items
SOURCE: Foodservice Research Institute, MenuMine database
Hot Dogs on the Menu by Segment — 2006
Foodservice Segment Items Percent*
QSR Chain- Burgers 109 21.08
Non-Com-School 44 8.51
Non-Com-School District 36 6.96
Non-Com-College/University 35 6.77
QSR Chain- Sandwiches/Bakery 32 6.19
Casual Chain- Theme/Bar 26 5.03
Family Dining Chain- Breakfast/Bakery/Cafe 25 4.84
Fast Casual Chain Burger 21 4.06
Non-Com-Nursing Home 20 3.87
QSR Chain- Chili/Spicy/Cajun 17 3.29
Family Dining Indep.- Coffee Shop/Breakfast 16 3.09
Non-Com-Business & Industry 13 2.51
Family Dining Indep.- BBQ 12 2.32
Fast Casual Chain Sandwich/ Bakery 11 2.13
QSR Chain- Convenience Store 11 2.13
Note: Top 15 segments listed. Total sample size is 517 hot dog menu items.
SOURCE: Foodservice Research Institute, MenuMine database
Top 5 cities, breakfast sausage consumption, 2006:
City Sausage sales
Philadelphia $32,227,320
Baltimore/Washington $31,156,870
Los Angeles $30,209,360
Chicago $23,204,370
Detroit $20,729,220
SOURCE: National Hot Dog and Sausage Council
Top 5 cities, dinner sausage consumption, 2006
City Sausage sales
Los Angeles $73,081,390
New York $55,059,190
San Antonio/Corpus Christi $49,010,970
Houston $46,592,630
Chicago $42,264,980
SOURCE: National Hot Dog and Sausage Council
The Versatile Hot Dog
Item Type on Menu # of appearances Percent*
Hot Dog 252 48.37
Corn Dog 124 23.80
Chili Dog 43 8.25
Chili Cheese Dog 30 5.76
Hot Dog w/Cheese 15 2.88
Sauerkraut Dog 7 1.34
Turkey Hot Dog 6 1.15
Bagel Sandwich w/Meat 6 1.15
* - of 521 hot dog menu items
SOURCE: Foodservice Research Institute, MenuMine database
Frank-
furters (Refrige-
rated)
Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 Individual Brands OSCAR MAYER $299.9 -1.4 19.3 115.5 -1.2
LATEST 52 WEEKS ENDING DEC. 31, 2006 BALL PARK $254.4 -2.3 16.4 91.9 -4.8
BAR S $129.4 5.1 8.3 119.0 9.6
PRIVATE LABEL $90.6 -7.3 5.8 59.3 -7.7
HEBREW NATIONAL $90.1 15.0 5.8 24.2 20.0
NATHAN $80.7 8.2 5.2 20.9 6.4
GWALTNEY $40.4 2.9 2.6 30.4 0.0
BRYAN $28.5 -9.4 1.8 15.1 -5.5
JOHN MORRELL $24.0 -11.5 1.5 22.8 -13.8
ECKRICH $21.9 -11.7 1.4 13.6 -7.6
Total $1,555.3 -3.4 100.0 736.8 -4.4
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets,
Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Frozen Sausage Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 Individual Brands ARMOUR BROWN N SERVE $72.3 -23.3 37.1 49.9 -22.4
LATEST 52 WEEKS ENDING DEC. 31, 2006 BANQUET $18.5 -- 9.5 13.5 --
  PRIVATE LABEL $15.0 -23.2 7.7 6.0 -23.2
JONES GOLDEN BROWN $14.4 2.1 7.4 7.5 3.7
MORNINGSTAR FARMS $13.4 -8.4 6.9 3.7 -9.2
JIMMY DEAN $11.7 22.3 6.0 3.5 26.7
JONES $9.4 -6.0 4.8 2.9 -6.0
ARMOUR BROWN N SERVE LITE $7.9 -15.1 4.1 5.4 -12.4
JOHNSONVILLE $6.3 -23.2 3.2 1.5 -21.6
TENNESSEE PRIDE $5.3 11.8 2.7 1.7 10.6
Total $195.0 -5.3 100.0 104.8 -3.6
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Dinner Sausage (Refrige-
rated)
Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 Individual Brands HILLSHIRE FARM $271.2 -0.1 17.4 91.3 -0.3
LATEST 52 WEEKS ENDING DEC. 31, 2006 JOHNSONVILLE $248.8 1.1 16.0 59.1 -0.0
PRIVATE LABEL $126.3 2.5 8.1 43.9 5.7
ECKRICH $76.4 -9.4 4.9 27.2 -3.2
AIDELLS $27.7 12.8 1.8 4.7 12.4
PREMIO $27.0 1.9 1.7 7.8 2.6
BAR S $26.3 0.4 1.7 7.7 9.4
JOHN MORRELL $25.7 -8.9 1.7 14.1 -10.2
JOHNSONVILLE BEDDAR WITH CHEDDAR $24.4 14.3 1.6 7.3 13.8
HILLSHIRE FARM CHEDDARWURST $21.0 12.2 1.3 7.0 13.3
Total $1,559.6 -0.5 100.0 489.7 -0.1
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Refrige-
rated Breakfast Sausage/
Ham
Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 Individual Brands JIMMY DEAN $155.9 -1.8 18.3 53.6 0.6
LATEST 52 WEEKS ENDING DEC. 31, 2006 BOB EVANS $114.0 -1.9 13.4 34.2 0.9
  PRIVATE LABEL $68.4 7.7 8.0 28.9 8.7
JOHNSONVILLE $63.2 -0.9 7.4 19.1 -1.7
TENNESSEE PRIDE $45.5 -0.7 5.3 16.6 1.4
JIMMY DEAN FRESH TASTE FAST $32.9 -17.1 3.9 10.3 -14.3
FARMER JOHN $30.1 -7.3 3.5 22.2 -5.3
OWENS $25.2 1.5 2.9 9.2 8.5
HORMEL LITTLE SIZZLER $20.4 -1.7 2.4 14.8 3.2
PURNELL OLD FOLKS $18.2 -3.0 2.1 4.8 4.0
Total $852.8 -2.2 100.0 323.0 -0.4
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Frank-
furters (Refrige-rated)
Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 vendors KRAFT FOODS INC. $317.7 -1.4 20.4 123.9 -1.2
LATEST 52 WEEKS ENDING DEC. 31, 2006 BALL PARK BRANDS $274.7 -2.6 17.7 99.4 -5.0
  BAR-S FOODS CO $141.8 4.7 9.1 129.6 9.6
CONAGRA INC $123.7 -11.7 8.0 43.0 -27.2
PRIVATE LABEL $90.6 -7.3 5.8 59.3 -7.7
NATHANS FAMOUS $80.7 8.2 5.2 20.9 6.4
GWALTNEY OF SMITHFIELD LTD $48.7 -2.7 3.1 35.6 -5.2
JOHN MORRELL & COMPANY $46.2 -9.7 3.0 45.0 -11.0
HILLSHIRE FARM & KAHNS $32.3 -10.9 2.1 12.3 -9.7
BRYAN FOODS INC $28.5 -9.4 1.8 15.1 -5.5
Total $1,555.3 -3.4 100.0 736.8 -4.4
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Frozen Sausage Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 vendors CONAGRA INC $104.5 -4.6 53.6 72.5 -2.7
LATEST 52 WEEKS ENDING DEC. 31, 2006 JONES DAIRY FARM $23.7 -1.2 12.2 10.5 0.8
  PRIVATE LABEL $15.0 -23.2 7.7 6.0 -23.2
KELLOGG CO $13.4 -8.4 6.9 3.7 -9.2
JIMMY DEAN FOODS $12.0 21.0 6.1 3.6 25.2
JOHNSONVILLE FOODS INC $6.3 -23.2 3.2 1.5 -21.6
ODOMS TENN PRIDE SAUSAGE INC $5.3 11.8 2.7 1.7 10.6
JENNIE O TURKEY STORE $2.3 5.9 1.2 1.5 9.3
SWAGGERTY SAUSAGE CO $1.8 12.8 0.9 0.4 17.3
KRAFT FOODS INC. $1.4 -11.7 0.7 0.5 -15.3
Total $195.0 -5.3 100.0 104.8 -3.6
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Dinner Sausage (Refri-gerated) Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 vendors HILLSHIRE FARM & KAHNS $316.2 0.6 20.3 105.4 0.5
LATEST 52 WEEKS ENDING DEC. 31, 2006 JOHNSONVILLE FOODS INC $300.4 1.7 19.3 74.2 0.6
  CONAGRA INC $128.2 -7.0 8.2 47.9 -1.2
PRIVATE LABEL $126.3 2.5 8.1 43.9 5.7
JOHN MORRELL & COMPANY $31.1 -12.5 2.0 17.3 -11.9
AIDELLS SAUSAGE CO. $27.7 12.8 1.8 4.7 12.4
BRYAN FOODS INC $27.3 -17.5 1.7 9.8 -17.8
BAR-S FOODS CO $27.1 -0.1 1.7 7.8 8.8
GARDEN STATE SAUSAGE CO $27.0 1.8 1.7 7.8 2.5
HORMEL FOODS $18.5 -4.6 1.2 5.4 -4.7
Total $1,559.6 -0.5 100.0 489.7 -0.1
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Refrige-
rated Breakfast Sausage
/Ham
Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 10 vendors JIMMY DEAN FOODS $199.0 -3.7 23.3 67.4 -0.8
LATEST 52 WEEKS ENDING DEC. 31, 2006 BOB EVANS FARMS INC $115.6 -1.8 13.6 34.9 1.0
  PRIVATE LABEL $68.4 7.7 8.0 28.9 8.7
JOHNSONVILLE FOODS INC $63.2 -0.9 7.4 19.1 -1.7
ODOMS TENN PRIDE SAUSAGE INC $46.3 -0.6 5.4 16.8 1.4
HORMEL FOODS $35.1 -4.2 4.1 19.3 0.5
CLOUGHERTY PCKG CO $30.1 -7.3 3.5 22.2 -5.3
OWENS COUNTRY SAUSAGE INC $25.2 1.3 3.0 9.3 8.2
PURNELL SAUSAGE CO INC $18.2 -3.0 2.1 4.8 4.0
TAYLOR PROV CO $18.0 1.7 2.1 7.4 1.5
Total $852.8 -2.2 100.0 323.0 -0.4
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Frozen Frank-furters Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 5 vendors SHELTON $443,649 -1.9 43.0 135,849 -6.2
For 52 weeks ending Dec. 31, 2006 ROGER WOOD $210,306 -0.2 20.4 59,976 3.6
NATIONAL PROVISIONS $169,282 158.3 16.4 54,649 309.7
ORGANIC VALLEY $67,447 420.3 6.5 12,218 403.2
ROCKY DOGS $51,596 45.7 5.0 15,071 38.2
Total $1,031,903 19.2 100.0 298,085 10.0
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Frozen Frank-furters Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 5 vendors SHELTON POULTRY INC $443,649 -1.9 43.0 135,849 -6.2
For 52 weeks ending Dec. 31, 2006 ROGER WOOD PCKG CO $210,306 -0.2 20.4 59,976 3.6
NATIONAL PROVISIONS $169,282 158.3 16.4 54,649 309.7
COULEE REGION ORGANIC PRODUCE $74,574 475.3 7.2 13,514 456.6
PETALUMA POULTRY PROCESSORS $51,596 45.7 5.0 15,071 38.2
Total $1,031,903 19.2 100.0 298,085 10.0
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Dried Meat Snacks Vendor Dollar Sales (in millions) % Change Dollar Share Unit Sales (millions) % Change
Top 5 vendors OH BOY OBERTO $62.9 -3.1 20.7 12.4 -5.0
For 52 weeks ending Dec. 31, 2006 JACK LINKS $61.0 32.0 20.1 16.7 26.4
SLIM JIM $50.0 -2.7 16.5 31.9 -5.7
PRIVATE LABEL $27.5 22.9 9.1 7.7 25.6
BRIDGFORD $19.5 -8.7 6.4 4.4 -7.8
Total $303.2 -1.0 100.0 101.9 -2.7
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)
Dried Meat Snacks            
Top 5 vendors FRITO LAY $66.5 -3.6 21.9 16.4 -8.1
For 52 weeks ending Dec. 31, 2006 LINK INDS $63.5 33.1 20.9 18.9 32.0
  CONAGRA INC $63.1 -11.2 20.8 35.5 -9.6
PRIVATE LABEL $27.5 22.9 9.1 7.7 25.6
BRIDGFORD FOODS CORP $19.5 -8.7 6.4 4.5 -7.9
Total $303.2 -1.0 100.0 101.9 -2.7
Source: Information Resources, Inc. TOTAL U.S. - F/D/MX (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)