Sales of pre-sliced packaged deli meats are providing some comfort to producers of world-renowned prosciutto and salami as the coronavirus pandemic forces restaurants to close and consumers to look for extra safety.
The food industry overall has fared the coronavirus storm better than other industries amid lockdowns and restrictions. Supermarkets and food stores have stayed open to continue to offer essential goods despite social distancing forcing customers to long lines and waiting time.
An industry source told Italianfood.net that the deli meats industry has been suffering in Italy because of falling demand for traditional bone-in prosciutto legs and whole salami and mortadella – highly demanded in countries like Italy where consumers prefer to have their meats cut at the deli counter to buy the amount they want and quality they can see.
The closure of restaurants, important customers of whole products to cut and serve to their clients, has further hit the deli meats industry.
“The sudden, although necessary, closure of restaurants (the so-called Horeca channel) has stripped in an instant our businesses of an important source of collaborations and of around 20% of their revenues,” said Nicola Levoni, president of Assica, the association of national producers of Italian salumi.
A GALLERY OF PACKAGED CHARCUTERIE
US MARKET BUCKS THE TREND
Relief for the industry is coming from the United States, where consumers regularly prefer to buy practical and convenient packaged foods. Italian producers well positioned in the pre-sliced segment have done well in the United States during the health emergency. A strong performance in America has partly offset losses in their domestic market, the industry source said.
Consumers have rushed to food stores to restock their pantry of essential products during the outbreak. In the United States, total sales of consumer packaged goods increased 8.5 billion dollars during the two weeks ended March 21 from the two weeks period, or 15 times the average rate of change for a typical two-week period, according to Nielsen.
Deli meat sales in the United States increased 4.8% to over 117 million dollars in the week ending March 8 over the comparable week in 2019, according to a report by the North American Meat Institute citing data provided by IRI and 210 Analytics.
A GALLERY OF CHARCUTERIE SNACKS
GOVERNMENT LENDS A LIFELINE
The Italian government has adopted measures to support households and businesses through the coronavirus outbreak that has severely hurt Italy. Assica welcomed the initiative by Agriculture Minister Teresa Bellanova to support consumption through the emergency.
“Thanks to adequate funding, people more in need will be able to receive our good, healthy, nutritious and quality salumi,” Levoni said.
Assica has called for more efforts to stabilize the industry and the supply chain through the emergency.
Antonella Ciancio