Category Analysis: Deli Meats
Deli meat category leaders have remained steadfast in their approach to provide consumers with high-quality, convenient, better-for-you and affordable meat options. These key players have maintained a positive and successful trajectory thus far in the year and are hopeful the rest of the year will continue to play out the same.
“Summer has been a great season for Volpi,” said Claire Donohue, Marketing Manager of Volpi Foods. “In June, our Snack Cups were named Snack Innovation of the Year by the Mindful Awards. The recognition shows that our Snack Cups really connect with what people are looking for right now—something quick, a little better for you and made the right way. We’ve doubled down on this consumer sentiment and have expanded our grab-and-go category this year to include Snack Trays and a ready-to-go Charcuterie Board. These new offerings marry premium, high quality meats, cheeses and accompaniments with accessibility and convenience. Visually appealing and functional, they’re ideal for grab-and-go coolers or cross-merchandising with wine, crackers or produce, driving incremental sales and building baskets.”
“On the brand side, our partnership with Jordan Anderson Racing in the NASCAR Xfinity series has been a lot of fun,” continued Donohue. “It has introduced Volpi to a whole new group of fans this summer, and it ties perfectly into that mix of energy, food and celebration that racing is all about. Whether fans are tailgating out-side the track or enjoying from home, Volpi has been able to position itself as the premium-yet-accessible choice for fueling high-energy summer activities. This partnership has not only amplified brand visibility but also created a powerful connection between our grab-and-go offerings and one of America’s favorite summer pastimes.”
“This summer, we were fortunate to see strong sales trends on our deli business. Our consumption trends show positive sales growth over last year driven by distribution gains and increasing velocities with several key retailers,” said Gina Gancheva, Director of Brand Management at Applegate. “Despite early-year challenges stemming from HPAI-related supply shortages that had a meaningful impact on the broader wall deli category, Applegate rebounded effectively. As supply restored in the spring, Applegate was once again able to meet its heightened consumer demand. From May through August, Applegate Wall Deli retail sales grew an impressive +6.6 percent in dollars and +5.8 percent in units. Applegate also grew its dollar share during this period, reinforcing our leadership position in the deli segment.”
“As consumers continue to seek convenient, high-quality, protein-rich and nutrient-dense options, our grab-and-go formats—including pre-sliced meats and cheeses and snack packs—are driving strong momentum,” said Taylor Grissinger, Senior Retail Marketing Manager with Dietz & Watson. “The recent launch of our hummus line complements our existing portfolio and reinforces our better-for-you positioning. Through close collaboration with key customers, we’ve been able to quickly capitalize on low-hanging fruit opportunities, meeting consumer demand while delivering premium shopper experience.”
Convenience, high-protein and quality ingredients remain top of mind for consumers.
“Overall, the deli meats category stands on solid footing this year, largely driven by consumer demand for convenience, high-protein options and elevated, flavorful experiences while navigating cost and regulatory pressures,” said Donohue. “We’re seeing particular interest in items with lower sodium, no added nitrites or nitrates and simple, natural ingredients. Gluten-free options continue to grow as well, driven by consumers who want to feel good about what they’re putting in their carts. Sustainability is also shaping the category in a meaningful way. Consumers and retailers alike are asking brands to show real commitments, whether that’s through responsibly sourced proteins or packaging with less plastic and more recyclability. Brands that respond with smart innovation, clean labeling and adaptive supply chains will be best positioned to thrive throughout the rest of the year.”
“The category is evolving as consumers become more selective and intentional with their food choices. Shoppers are seeking protein they can feel good about, and Applegate’s products—made from animals raised with no antibiotics ever, simple ingredients and with our Applegate Humanely Raised welfare standard—meets what consumers are looking for,” said Gancheva.
While prices continue to increase, leaders in the space are dedicated to ensure consumers are receiving value at an affordable price.
“We know higher costs are a reality across the food industry, and our approach has been to double down on what creates the most value for both our partners and our consumers [which includes] quality, consistency and innovation. For consumers, that means continuing to offer products made with all-natural ingredients, responsibly sourced proteins and clean labels—delivering on health, flavor and trust at every price point. At the same time, we’re innovating in formats like Snack Cups, Snack Trays and Ready-to-Go Charcuterie Boards, which bring elevated experiences to everyday occasions without asking shoppers to spend more time or effort,” said Donohue.
“We recognize that higher costs are a reality for today’s consumers. That’s why we’re committed to helping them stretch their dollar without compromising on quality. Through smart, targeted promotions, we’re able to offer premium products at accessible prices—while maintaining a wide selection of meats and cheeses that are both good and good for you. For our partners, we continue to provide strategic support and merchandising solutions that drive traffic and deliver value across every touchpoint,” said Grissinger. “Labor shortages and inflation remain two of the most pressing challenges facing the industry. These factors impact everything from production timelines to pricing and in-stock positions.”
