Red meat chips – development, launch and where to play market insights

Summary

Jims Jerky identified several growth strategies within the snacking category from their 2017–18 MDC project P.PSH.0811 – this included the need to explore export markets as well as products beyond jerky as consumers continue to desire high protein snacks. During 2019, several concepts were made by Jims Jerky as requested by MLA in support of MLA’s Singapore focus groups. Different textures and occasions were tested to better understand ASEAN meat snacks such as:

• foods for an ageing population.
• women-on-the-go who have low iron.
• millennials sharing snacks when watching sport.

This opportunity, along with awareness of the technology platform (MLA project P.PIP.0548) becoming available saw Jim’s Jerky complete preliminary sample batches of meat chips with positive feedback from leading retailers in Australia for a crunchy beef chip.

Objectives

• Engage with targeted retail buying office and present meat snack concept and positioning to gain support for trial/roll-out.
• Develop product brief and marketing mix – validate yields, quality and costings and complete consumer research on targeted early adopter.
• Undertake market study, including analysis of category competitor analysis and validate who the target market/customer is and what 'jobs are to be done' and 'path to purchase' for meat chips.
• Refine product and process specifications and produce trial batch for launch and in-market testing to test assumptions and determine key insights.
• Finalise business model for scale-up – record on business model canvas tool key forces and partners to succeed and desirability-feasibility-viability criteria. This is to include a detailed cost benefit analysis that captures what value has been created and captured in transforming red meat input into meat chips products, and manufacturing capacity modelling at Jim’s Jerky production facility and raw meat supply.

Key findings

Feedback received from market trials has been especially important in informing the refinement of the core value proposition, which is now centered on the satiety-creating benefits of the very high protein content of the product

As well, it appears shoppers in the non-health sub-category of snacks are drawn to fun, light-hearted branding that confers a ‘permission to indulge’. This finding has significant implications for the branding and overall go-to-market strategy for the product, which are currently being implemented in packaging design, brand messaging and commercial approach.

Finally, recent feedback obtained from importer/ distributor partners in key target export markets in Vietnam and the US have indicated that there will be significant opportunities to target growing meat snack markets where consumers demonstrate willingness to pay a premium for innovative new products. In Vietnam for example, via one importer/distributor partner the opportunity scales to approximately 30,000 units per month, the equivalent of 10.8MT annually.

Benefits to industry

This research has demonstrated that there are additional value adding opportunities for red meat beyond the traditional centre of plate meal occasion. The ability to provide Australian red meat products with extended shelf life, that are distributed via ambient supply chains can provide significant growth opportunities into international markets.

MLA action

Final report to be published on MLA website.

Future research

Feedback obtained from importer/distributor partners in key target export markets in Vietnam and the US have indicated that there will be significant opportunities to target growing meat snack markets where consumers demonstrate willingness to pay a premium for innovative new products. In Vietnam for example, via one importer/distributor partner the opportunity scales to approximately 30,000 units per month, the equivalent of 10.8MT annually. Continued research into understanding local market drivers will continue to provide further red meat snacking research opportunities.