MORE EGGS AT HOME

But in today’s down economy, shoppers are eating more meals at home. And eggs remain a staple of the American diet, favored for their high protein, many vitamins and low cost. So now is a particularly good time to pay more attention to the category, Radlo says.
“We’re seeing egg sales going up continually at retail, and down in foodservice,” he points out. “There’s actually a great opportunity now, in a down economy, to give eggs the space they deserve. If you take away all the gimmicks, you’ll see that eggs are one of the top five movers in the store.”
With dollar sales of value-added eggs growing in the 20% to 30% range, and eggs in general so often part of large purchases by families, he adds, it just makes sense to really drill down in the category to max out the opportunity.
Specialty eggs are still driving the biggest increases and margins, and private label, with 70% of dollars and 72% of units, is still driving the category as a whole. In the 12 weeks ended May 18, supermarket sales of private label eggs averaged $2.27 per dozen vs. $2.58 for their branded counterparts, according to IRI.  
Jay Flekier, Midwest sales manager and brand manager for Land O’ Lake Eggs (Moark LLC, Norco, Calif., 866-757-EGGS), notes that the rapidly growing specialty egg category has many segments, and that shoppers are eager for variety. Retailers can be missing out if they do not provide enough SKUs — and enough total overall space — to meet shopper needs, he says.  
“Most major retailers realize how lucrative specialty eggs can be,” Flekier adds. “We’re seeing retailers of all sizes now adding more space for both branded and private label products.”  
Greg Hinton, vp of sales for Rose Acre Farms (812-497-2557), Seymour, Ind., agrees that a good product mix is essential, although he’s a little concerned about how much of an effect higher pricing might have on the rapid growth of specialty eggs. “They’ve been growing extremely well, but we don’t yet know how consumers will behave over the long term — whether they’ll be trading down or not.” 

TRY 'MEDIUM' FOR PROMOS

For retailers looking to promote eggs over the summer, he suggests considering medium eggs, which are in greater supply during the hot months and thus more of a bargain. When it’s hot, chickens eat less feed and you get smaller eggs. Extra large and jumbo eggs become scarce over the summer, and prices for them spike, he notes.
Hinton has seen increases the past couple years in 2.5- and 5-dozen packs, and a new vitamin D-enriched egg recently introduced has taken off strongly. Health impacts of vitamin D — such as in helping prevent breast cancer — are getting significant consumer attention, and this is helping drive sales, he notes.
With prices still near record highs, vendors say it’s smart to promote the fact that eggs are an excellent source of protein and a good value. According to Curtis Earls, vp of business development, Country Creek Farms (479-464-0544), Rogers, Ark., “Consumers are getting savvier with their dollars. They look for ways to change so they can keep purchasing what they want. Consumers know that eggs are still one of the most affordable sources of protein.”
The combination of nutrition and price as a value statement is reinforced by Jim McCabe, vp sales, Egg Innovations (262-284-1619), Port Washington, Wisc., who notes, “A serving of two cage-free eggs costs only about 60 cents.”
Noting that the popularity of organic eggs is high and that cage-free eggs are “going strong,” McCabe says that his company’s research on the specialty egg consumer found “health, taste, nutrition and personal values such as animal welfare draw them to these products.”
Elliott points out the convenience angle. “An omelet only takes about two minutes to make,” he notes. And while eggs remain a breakfast staple, Elliott says “Families are having breakfast for dinner to provide a quality meal with a great protein source.” He also suggests adding fruit to an omelet as a nutritious dessert idea.
McCabe’s company, Egg Innovations, has “returned to its roots” by experimenting with enhancements. Working with retailers to learn what excites consumers, Egg Innovations develops specialty eggs to order through their network of Amish and Mennonite farms in Indiana. 

POMEGRANATE? YES

“Generally, whatever you put into chicken feed gets into the egg,” he observes. For example, retailers noted that consumers have been clamoring for more products with pomegranate components. Recognizing the growing appeal of anti-oxidants in pomegranates, McCabe’s company is working on the right feed ingredients to get anti-oxidants into eggs.
The guidance from these marketers is: promote eggs as an economical protein source.
Radlo suggests using in-store promotion to drive “eggcitement.” “As folks eat at home more often,” he says, “shell eggs will increase in demand, particularly the specialty varieties.”
Elliott adds, “Remember that kids tend to think eating at home is boring and that anyone can make scrambled eggs.” His thought: create excitement around making dinner together as a family, using eggs as the main course.
“Retailers can help shoppers by creating lists of ingredients to use in these at-home events,” says Elliott. He recommends cross-merchandising the ingredients to encourage purchase with eggs.

Dan Raftery is president of Raftery Resource Network. He can be reached at Dan@RafteryNet.com.