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Dried Beef Industry Profile

By Alena Bosse and Michael Boland, Kansas State University.

Reviewed February 2011.  


Background
Through the ages, a variety of meat-based products were developed that relied on such preservation techniques as drying to decrease moisture content, adding salt and sugar to further decrease moisture levels and inhibit bacteria, and adding spices to limit bacteria as well as impart flavor.

Native Americans prepared pemmican, which involved drying strips of buffalo, elk or deer meat in the sun, pounding it into small pieces and then adding melted fat and sometimes dried fruits such as cranberries or blueberries.

The Incas salted and dried strips of leftover meat that they called "charque," the likely origin of the word "jerky." The traditional Mexican version of dried beef is called carne seca. In many African countries, meat or game are dried, producing "biltong."

Processing
The product traditionally sold as dried beef in U.S. supermarkets is thinly sliced and rectangular shaped. It may have been prepared with a dry rub or a liquid marinade. In both cases, lean beef is thinly sliced and then cured. Either the meat is dipped into a liquid marinade of salt and water or a dry curing mixture containing sugar and salt is applied to the meat several times over several days. The processed beef is next hung to dry and smoked or vice versa.

Other forms of dried beef include meat sticks and jerky. Meat sticks tend to be softer and easier to chew as well as smaller in size, making them more appealing to women and children. Jerky is generally thickly cut strips of whole meat. The typical jerky consumer is a 35- to 54-year-old male in the western United States with a household income from $50,000 to $70,000, according to the Nielsen Company. 

Competitors
A few brands dominate the pre-packaged jerky and meat snacks industry (see table below). The primary brands include Jack Link's; Slim Jim and Pemmican; and Oh Boy! Oberto. The companies producing these brands also compete globally and are generally family owned with a long history in the meat snack industry.

Meat Snack Sales for 12-Month Period Ending April 19, 2009.

Brand Total Sales, in $ % Change from Prior Year

Jack Link's

64,350,620 0.93
Oh Boy! Oberto 10,205,500 -27.70

Pemmican

5,559,039 -21.16
Slim Jim 3,749,621 20.47
Source: Information Resources Inc.


Link Industries (Minong, Wisconsin) owns the Jack Link’s Beef jerky brands. They are a privately held family company. According to the Nielsen Company, Jack Link's has cornered about 40 percent of the meat snack market.

The Slim Jim and Pemmican (as well as Penrose, Big Mama and Firecracker) brands are owned by ConAgra Foods, a large packaged goods company in Omaha, Nebraska. Slim Jim is estimated to control about 21 percent of the market.  

Oberto Sausage Company (Kent, Washington) owns the Oh Boy! Oberto, Lowrey’s, Pacific Gold and Smokecraft brands. Founded as a family-owned company, it has grown rapidly in the past ten years. Until earlier this year, the company partnered with Frito-Lay, who distributed their products to grocery, convenience and club stores. Oberto cited loss of profits and of market share as the reason it ended the partnership.

A large number of regional companies also exist.

Private label sales are increasing. For example, 7-Eleven Inc. introduced its own brand of beef jerky, 7-Select, in late 2008. The Walgreens drug store chain sells beef jerky under the Steakhouse brand.

Market Size
Retail sales of meat snacks like jerky and meat sticks in convenience stores reached $836 million in 2008, according to information supplied by the National Association of Convenience Stores. Convenience stores account for more than 72 percent of sales, while grocery stores account for about 20 percent. Thus, the Nielsen Company estimates that the total sale of meat snacks has grown 65 percent since 2003, reaching about $1.2 billion in 2008. However, a recent report indicates that only 40 percent of U.S. households purchase meat snacks.

From the beginning, dried meat was valued for its convenience and nutrition (high protein). More recently, the growth of meat snack sales has been attributed to the popularity of low-carb and fat-free diets, a more diverse flavor selection, innovative products and improved marketing. Newer trends include the use of chicken, pork and turkey; organic, MSG-free and gluten-free options; and portion-controlled, single-serve packaging.
 

Links
American Meat Science Association

Beef Jerky, University of Idaho Extension.

Food Safety of Jerky, FSIS, USDA, 2006.

For Epicures, a New Take on Jerky, New York Times, 2007 - Describes the beef jerky making process at the Rosenthal Meat Science center at Texas A & M University.

Jerky Making: Then and Now, North Dakota State University, 1999.

Snack Food Association

Something to Chew On, National Association of Convenience Stores (NACS) magazine, 2009.

Strong Outlook for Meat Snacks, NACS magazine, 2009.

Variety Spicing Up Salty Snacks, Convenience Store Decisions, 2009.


Developed January 2006 and reviewed February 2011.

 

 

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