Mike Eskew, a Central Florida architect and homebuilder, doesn’t always take time for lunch. Traveling between his office and work sites often gets in the way of a sit-down meal, so when he has little time, it’s nice to have a package of beef jerky in the car.

“It’s a satisfying snack that tides you over,” he said. “And it doesn’t need refrigeration.”

A cyclist and hiker in his free time, Eskew appreciates the fact that meat snacks are “almost pure protein and not a lot of fat, calories or carbs. Plus, the variety has exploded in the past 10 years or so. Bison is common, but I’ve also had bear and elk.

“I know a lot of hunters, and for them, it’s a big hobby to make their own,” he said. “But I’ve never had any homemade jerky that’s as good as what’s commercially available.”

Meet Meat Snacks

Meat snacks make up nearly 60% of sales within the alternative snacks category, a category that also includes granola products, fruit snacks, health and energy bars and trail mix, according to NACS category definitions.

“It’s a small category that is primarily dominated by meat snacks,” said Jayme Gough, an analyst for NACS. “Overall industry sales reached over $2.4 billion in 2017, and most of that was driven by meat snacks, which increased in sales by 4% and in units by 0.3%.”

What was once a cut-and-dried product, jerky has gotten a big boost from the popularity of paleo, keto and other high-protein, low-carb diets. At the same time, jerky has experienced a sharp increase in the number of unique flavors and types of meats used to create a more upscale product.

“Turkey, pork, chicken, duck and venison jerky, in addition to the typical beef, were all on display at the 2018 NACS Show,” said Gough. “Consumers continue to crave flavor variety, including cajun, teriyaki, chipotle or chili lime, as well as tastes from around the globe like Korean barbecue and Sriracha.”

Meat snacks make up nearly 60% of sales within the alternative snacks category.

In 2017, alternative snacks made up 1.25% of in-store sales, generating $24,449 sales dollars per store, an increase of 2% over the prior year, according to NACS State of the Industry data. Alternative snacks also increased gross profit dollars per store year-over-year by 2.8%. (Data for 2018 will be shared at this year’s NACS State of the Industry Summit, taking place April 2-4 in Chicago.)

“This category ranked 10^th in gross margin contribution, with $11,802 gross profit dollars per store,” said Gough.

According to Mintel, just over one-third of adults surveyed report having purchased meat snacks in the past three months, which indicates the category has plenty of room for growth. As that occurs, look for a wider array of smaller, more premium brands to generate significant sales, the consumer research organization reported.

In the Store

Rutter’s, the York, Pennsylvania-based chain, has an extensive offering of meat snacks to satisfy customer demand. “We carry a wide variety in our stores compared to what I see from others in the industry,” said Joe Bortner, category supervisor for Rutter’s. “Our sets vary, but the majority of our stores carry 100-plus SKUs, between sticks and bags.”

As with most other food products, consumers—particularly Generation Z and millennials—are looking for healthy, clean-label offerings.

“The perception of jerky is changing,” said Bortner. “Consumers are becoming more aware of what they’re putting into their bodies. What one person may conceive as a better-for-you option can change two-fold from whom you ask. Our goal is to have options that meet our customer’s needs, whether it’s low-calorie, grass-fed, low-sugar or gluten-free.”

During the past year, Rutter’s has added Lorissa’s Kitchen jerky strips and sticks to the mix. The company promotes its products as grass-fed meats that are free from hormones, MSG and preservatives. Flavors include Korean barbeque beef, Szechuan peppercorn beef and ginger teriyaki chicken.

“This adds a new layer into our mix that you may not find in your everyday set,” he said. “Of course, we have the traditional beef, pork and turkey options, and we’ve also partnered with a local farm to offer a central Pennsylvania favorite: venison jerky.”

We’ve found success in increasing basket size when meat snacks are positioned in strategic areas outside the traditional set.

Merchandising Meat Snacks

Keeping meat snacks in front of customers is the best way to sell them, according to Johnna Rossback, director of marketing innovation for Jack Link’s Protein Snacks, based in Minog, Wisconsin.

“Create multiple touchpoints,” she said. “We’ve found great success in increasing basket size when meat snacks are positioned in strategic areas outside the traditional set.”

With 70% of consumers snacking multiple times per day, Jack Link’s has introduced new grab-and-go products, such as the Cold Crafted Linkwich, a hand-held breadless sandwich made of premium cured meats and cheese, and the Steak Bar, which is 100% beef and shaped like an energy bar.

“We target the on-the-go, active consumer looking for protein snacking options that fit their lifestyle,” Rossback said. “Many of these consumers don’t frequently eat jerky. But by offering a meat snack in the familiar bar format, we reach this consumer by providing 8 grams of protein for only 70 calories.”

In Kent, Washington, the Oberto Snacks company is focused on satisfying customers, especially millennials, who are “changing the snacking world,” according to Tim Jones, director of category management and customer analytics for Oberto. “Millennials do not eat the majority of their meals at home with family,” he said. “For them, snacking is often a meal replacement.”

To ensure that customers have plenty of options, he recommends carrying the top meat snacks, including jerky, sticks, meat and cheese combos, kippered and pickled meat items.

“Customers are regularly trading up to 10-oz. packages, so take advantage of the extra-large phenomenon,” Jones said. “Clear bags are the hottest trends because they let discerning customers see the product. And of course, partner with manufacturers to develop solid schematics and share data to collaborate on best practices.” Meat snacks sell best during p.m. drive time, he added.

Alternative Offerings

Worldwide, the trail mix market is anticipated to grow at a CAGR of 5.6% between 2018 and 2023, reports Mordor Intelligence, a global consulting company. As part of the subcategory called other alternative snacks, trail mix contributes to the subcategory’s 40.56% gross margin percentage.

While most trail mixes combine dried fruits with nuts and candy, Oberto rolled out its own trail mix, complete with bits of beef jerky, in late 2017. The offering quickly found its way into c-stores, and a new version—this one featuring teriyaki chicken bits—has just been introduced.

“Our trail mixes include natural jerky, dark chocolate, nuts, cherries, pumpkin seeds and other high-quality foods, but no additives or fillers,” Jones said. “It’s healthier than the standard trail mix. The first year out of the gate it did very well, and it’s a higher ring. Other snack mixes cost around $1.99 per unit, and this one is $2.99. It fills the basket by another dollar, and retailers like the higher transaction.”

Keeping meat snacks in front of customers is the best way to sell them.

Convenient and functional, the bar industry, ranging from energy to protein to granola bar products, grew 2.9% for the 52 weeks ending October 7, 2018, with some categories enjoying more success than others, according to IRI, the consumer research organization. Health and granola bars—the second largest subcategory in alternative snacks—saw both sales and units decline slightly, which may be the result of an over-crowded category and the fact that so many new and better-for-you options are available on retailers’ shelves.

IRI research found that 65% of consumers who purchased a bar were seeking an energy boost; 53% wanted a bar with fruits and vegetables for their specific nutrients, while 40% preferred a bar featuring probiotics to aid digestive health.

One thing that consumers did not want was an excessive amount of sugar. Last year, Mintel's “Snack, Nutrition and Performance Bars–U.S.” reported that one-third of adults believe bars are too high in sugar.

In today’s health-oriented climate, keeping up with trends is key to selling more of any food or beverage product. The consumer is concerned as much with what is not in their food as they are with what is in it and where it came from.

“More important than ever is ethical sourcing, clean labeling and natural ingredients, especially because of the high importance that consumers, especially Generation Z, place on transparent marketing,” said Gough.