Big brands such as Princes and Premier Foods-owned Fray Bentos have made major efforts to capitalise on convenience trends, but own label continues to dominate canned meat, in both volume and value, and this has resulted in a period of decline for the category.

Stagg and Spam European brand manager Rebecca Wilson says most companies are struggling and both own label and the main brands have experienced a drop in sales.

Stagg is hoping for a revival, though, with in-store promotional activity, launches and marketing planned for later this year and into 2007.

Wilson says: "We currently have a unique promotional tool with Tesco, based on a rotational strategy, to try to get the consumer shopping the fixture and Stagg again. During the six weeks the promotion ran, Classic showed 50% volume growth. Also, a new Stagg variant will be launched this winter, followed by a launch for Stagg chilli late next year, supported by TV ads."

Meanwhile, Spam has championed the cause for canned meat with TV ads and limited editions, attempting to raise the profile of the brand and attract new consumers.

"Our sales have grown because of limited-edition launches," says Wilson. "The World Cup Spam can was available for four weeks in May and, during this period, sales

increased by 15%.

"We are now looking to create other can

designs linked to major events to attract new consumers to the market."

The modern face of Spam is certainly very different from its image as a ration staple during the Second World War. Spam with black pepper was launched as a limited edition a couple of years ago at Asda and proved so popular it has become a permanent addition to the range. It is now also listed with Tesco and Sainsbury's.

Meanwhile, Spam with bacon was launched in July and this month's tongue-in-cheek variant Stinky French Garlic is likely to boost sales further. Wilson says: "We've done very well to break away from Spam's roots and change the perception consumers have of the product, but the key was not to lose its distinctive flavour and quality."

According to Princes marketing director Neil Brownbill, convenience and health are key drivers for canned meat and he denies that health concerns have unduly affected the sector's long-term growth. "Health is not an issue with stewed steak," he says. However, he admits that some canned products are more affected by the health debate than others. "Hot dogs are perhaps associated with fast food chains and they are perceived to be less healthy."

The future clearly lies in product and packaging innovation. Princes rolled out ringpull cans across its canned meat range last year, having already extended corned beef in 2003 with lean, spicy, finest and standard variants to demonstrate the product's convenient properties as well as to attract new and younger consumers. There's a lot more to come, according to the company. Says Brownbill: "Developing new flavours and lean versions of canned meat products has helped to grow the category. Two to three years ago we introduced stewed goulash to our range and lean corned beef was launched four or five years ago and has grown every year since. There are a lot of lean products on the fixture now, which complement the whole range.

"There is clearly more room for new product development in this area. There will be new corned beef and packaging innovation for lean corned beef products and we are looking at reduced fat products in other areas of our range as well.

"We already have lean ham but want to develop an even lower fat product." n

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