1. NEW HEALTH AND FLAVOR TRENDS IN SAUSAGE
BUSINESS PLAN AND PRELIMINARY MARKET ANALYSIS

2. Haen Meat Packing, Inc. Team Members: Thomas J. Nack David D. White
W1910 County KK
Kaukauna, WI
Phone:
Fax:

3. Company Background Established as a family owned business in 1959
Currently owned and operated by four Haen brothers
Full service meat market featuring custom slaughtering, the finest cuts of meat, cured and smoked meats, and sausages
Other items include cooked ready to eat products, soups, homemade pizzas, etc.
Over 200 State and National awards
5 Governor’s Cups

4. Company Goals
Continue to be thought of as a trend setter in regards to developing new and exciting products
Offer more exotic tastes for the ever changing consumer tastes

5. Product Development
Must be able to produce new product using existing production line
Expansion in product line should lead to increased sales
Product should reflect current market trends that capture Midwestern audience
Product should have “premium” attributes yet remain affordable to the local market

6. Project Overview Aim Objectives
To develop two specialty sausages that will diversify and complement existing products
Objectives
Increase sales by responding to new trends in the marketplace
Offer a healthier low fat option for consumers
Build upon reputation of leading local sausage producers when it comes to new innovative products

7. Project Overview Constraints
Competition from large, multi-national meat processors offering products that are lower in price and quality
Developing a competitively priced “premium” product that fits Midwestern budgets
Can’t be overly creative, where consumers might be afraid to try the new product

8. Sausage Defined as comminuted seasoned meat stuffed into casings
May be smoked, cured, fermented, and or cooked
Made from any edible part of a slaughtered animal
Formulation is always a compromise between quality, cost of raw materials, and technique used
2 general groups: fresh and heat processed

9. Product Concepts Gyro Sausage with Feta Cheese
The great taste of a gyro without the mess
Spicy Chicken Creole Sausage
Lower fat option with a little added kick

10. World Population Trends

12. U.S. Population Trends

13. Outagamie County, WI
Haen Meats
Between 1990 and 2000 a 15% increase in population

14. Outagamie County 2003 Population: 167,411
2030 Population projection: 215,720
Population % increase of:
Median household income: $49,613
Per capita income: $21,943
Land area: 640 sq. miles

15. Nutritional Requirements

16. Possible Health Issues

17. Why Dinner Sausage Healthy aspects of the lower fat option
Sales are booming
Its and all occasion product
Convenience
Most profitable meat product

18. Market Data
The total sales of dinner sausage alone was $1.5 billion last year; increasing 5% from A majority of the new SKU’s were of ethnic variety, upscale gourmet, or heat and serve (Petrak, 2004)
Americans consume about 1.7 billion servings of dinner sausage annually, with fresh sausage making up 62% (Consumer Insight, 2002)
Chicken sausage hits the health trend by reducing the fat content by 90% as compared to normal pork sausage (Major, 2004)
This is probably why chicken sausage has increased 1454% from

19. Market Data
Top 10 markets grossed over $450 million in refrigerated dinner sausage sales
Dinner sausage consumption is uniform throughout income levels
Dinner sausage sales peak during the summer months

20. Market Forecast
Bon Appetite named sausage one of two top food trends, and the Mintel International Group reported that dinner sausage is the fastest growing category within sausage increasing 36% between 1997 and (Major, 2004)
Business Trends Analysis predicts total annual sausage sales to reach $9.7 billion by 2010
The large boom in the sausage industry will most likely continue due to its convenience, the low carb craze, and the new exciting flavors promoted in supermarkets, restaurants, and cooking shows (Harper, 2004)

21. Target Market
Our product concepts will target adults rather than children due to the bold flavor profiles
Men consume more sausage then women, but since women tend to do more of the shopping we want our product to appeal to both sexes

22. Marketing and Advertisement

23. Competition
Haen Meats competes with other local small scale meat markets such as Beck’s, Cedar Creek, and Jacob’s Meats.
Also competes with the large multinational companies selling products at local grocery stores.

24. Profitability
Pound for pound, sausages outperform all other meat items by 19%, in terms of profitability (Harper, 2004)
Current lines of sausages at Haen Meats sell with a 40% mark up
No additional capitol will be needed for this business venture

25. Summary of Project
We would like to help Haen Meats diversify there award winning line of sausages
The concepts will stem from predicting future Midwestern trends based on current national trends
The overall goal is to create a buzz among the existing consumers, and this will in turn generate new customers

26. References
Harper, Roseanne Sales Link; from breakfast to dinner and beyond, sausage is spicing up meat case sales with new varieties and styles. Supermarket News. March 15, 2004.
Major, Meg Links to the future: As the low-carb/high protein craze continues, the sausage industry is smoking with new flavors and convenient products to augment continued category growth. Progressive Grocer. February 1,2004.
Petrak, Lynn Hitting the links: Dinner sausage sales post gains for the year as consumers seek comfort foods with convenient, flavorful twist. The National Provisioner. August 1, 2004.
Petrak, Lynn The daily grind: flavor, convenience, and demand for protein are fueling sausage category growth. The National Provisioner. July 1, 2003.

27. The Great Sausage Race at Miller Park in Milwaukee, WI.