Growing appetite for meatless brands muscles in on traditional commodity rivals
YOU know times are changing when the company behind the world-famous Clonakilty Black Pudding — a fridge staple of mine for many years — launches a veggie version to go alongside its tasty black and white range.
While it may never dethrone what many aficionados believe is the king of black puddings, it’s a clear acknowledgement by the Twomey family, who created the brand back in the 1880s, that times are indeed changing.
Shoppers are turning to meatless alternatives in response to changing consumption habits, some of which are being influenced by issues relating to both animal and human health, as well as environmental concerns.
On a recent trip to my local Tesco, for example, brands like Vivera, which manufactures plant-based steaks, mince and bacon pieces, were on display beside the Squeaky Bean brand, which offers a ‘no chicken, no cry’ alternative to chicken nuggets.
Heck, another prominent brand in the chill cabinet, styles itself as ‘veg with edge’ as it tries to woo consumers with a range of Bollywood burgers.
What was interesting about all of this was that while the lengthy chill cabinet was dominated by uniform and, let’s face it, uninviting vac-pack meats, the colourful and eye-catching packaging of these meatless alternatives made them stand out from their commodity-based rivals.
Die-hard carnivores may throw their eyes up to heaven and scoff at the very notion of meatless products dominating the market any time soon, and they are probably right.
A recent report by Barclays Bank in the UK, for example, pointed out that the global consumption of meat was on the increase, particularly in markets in Asia and North America.
The global meat industry is worth a staggering €1.8trn a year and alternative meat’s slice of this is worth just €12.57bn, a paltry 1pc of the total.
The same Barclays report, however, noted that by 2029, this could grow to around 10pc, or approximately €125.6bn.
While not quite a tipping point, it’s clearly a growing market.
So it comes as no surprise that food manufacturers the world over — including many associated with the traditional meat industry — are scrambling to get a slice of the action.
While the Twomey family in Clonakilty are doing their bit, Ireland’s largest food company, Kerry Group, has also been investing heavily in the meatless space in recent years — including splashing out an estimated €20m in 2018 to acquire the Belgian brand Plenti, which sells a range of textured meat alternatives.
What’s particularly interesting about these emerging trends, from a marketing perspective, is that these meat alternatives are bona fide brands that embrace all the key attributes and behaviours of a brand — from the key messages imparted to consumers and the quirky and enticing packaging, right through to their strategic positioning in the chill cabinets of retailers, where they sit side by side with real meat.
Apart from a Bord Bia quality assurance stamp, and perhaps a makey-uppy retail brand that contains the word ‘farm’ in it, there is little to distinguish meat offered by one processor from that of another.
The reality is that meat, particularly red meat, is a commodity product and unless it moves up the value chain and into a pie, a burger or a ready-made meal, the options to break free from this commodity straight-jacket are limited.
Notwithstanding the many other challenges facing the meat sector, including the sustainability of the business model underpinning it, the long-term future looks uncertain.
Given that we Irish consume close to 150,000 tonnes of meat a year, including 87,000 tonnes of beef, there’s a lot at stake for farmers, the beef industry and our export-driven agri-food policies.
But there is one certainty in all of this: Irish people will continue to explore meatless diets, and meatless brands will continue to gain traction.
According to research firm Kantar, 12pc of adults in the Republic of Ireland, or 464,000 people, say they prefer to eat vegan food, while 9pc, or 334,000, say they regularly buy vegetarian or vegan ranges when it comes to food.
In addition, the proportion of adults who say they ‘always avoid’ red meat has increased from 4pc in 2015 to 7pc today, according to Kantar. In overall terms, this is up from 152,000 people in 2015 to 263,000 in 2019.
Not surprisingly, the Kantar figures also show that younger people are turning away from meat, and those who claim to prefer vegan food, for example, are more likely to be aged under 30.
And, as we know, this age cohort provides a rich and valuable hunting ground for brands that can fit in with their lifestyles, tastes, and world views on sustainability, the planet and animal welfare.