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More than B-O-L-O-G-N-A! Oscar Mayer's dominance in the deli category is one part history, one...

By Langman, Brent
Publication: The National Provisioner
Date: Tuesday, October 1 2002

As a leader in the hot-dog segment and a pioneer of the lunch-combination solution with its Lunchables line, Oscar Mayer continues to grow its sliced deli business, posting a 4.7 percent gain for the 52-week period ending Aug. 11, 2002, based on data from Chicago-based

Information Resources Inc. (IRI). As the leader, Oscar Mayer is nearing $830 million in sliced lunchmeat sales in a category topping out near $3 billion in annual retail sales. The company's Louis Rich brand, a top-five leader in the sliced lunchmeat category, also helps Oscar Mayer maintain its market share lead, now at more than 29 percent.

Oscar Mayer, separates the service deli from the prepackaged deli section and each is managed independently. Jeff Meyer, senior brand manager of Oscar Mayer's cold-cuts business, says consumer trends in the category continue to focus on taste and convenience. "Because of the harried lifestyle of today's on-the-go consumer, we continue to offer great tasting products that are convenient to our customers and fit their lifestyle," he reports.

Sarah Delea, senior communications manager, says the success of the products is due in part to Oscar Mayer's research with customers. "When we first launched our new Oscar Mayer Deli Style line our promotion and advertising efforts highlighted the great taste and quality of Oscar Mayer ham and turkey through four-color advertisements in major magazines, primarily women's publications," she says.

In its first year of national distribution, Oscar Mayer Deli Style cold cuts comes in six flavors: smoked ham, brown-sugar ham, oven-roasted turkey, smoked turkey, mesquite-smoked turkey, and honey smoked turkey. Additionally, Oscar Mayer Ham and Turkey Variety Paks, a four-flavor, 10-ounce package, offers consumers smoked ham, honey ham, oven-roasted turkey, and smoked turkey in one convenient purchase.

Oscar Mayer expanded its cold cuts offerings in this potentially lucrative category to meet the needs of convenience-minded shoppers looking for recloseable packages to avoid standing in line at the deli counter. The brand also appeals to the 18- to 29-age group, a segment purchasing prepackaged cold cuts three to five times a week.

"Consumer reception is strong. As the leading brand in the cold cuts category, we are focused on growing through product innovations and adding value to our core meat business," says Meyer. "We listen to our consumers who buy pre-packaged cold cuts and focus on meeting their needs"

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