Patties Foods, which owns the Four'N Twenty brand, has defended the future of the meat pie category following the release of a report that found sales had fallen in the route trade market.
Though pie sales still dominate the bakery products category, they fell nine per cent in market value between 2010 and 2012, according to BIS Foodservice’s Route Trade Market 2012 Report Series.
The route trade market includes service stations with a convenience store, service stations with no convenience store, chain convenience stores, independent convenience stores, corner stores, milk bars, delis, confectioners, cinemas & theatres, video stores, liquor stores and newsagents.
According to Sissel Rosengren, head of BIS Foodservice, confectionery products picked up the slack. She pointed to the GFC, which saw consumers opt for small, inexpensive snacks such as chocolate bars in the route trade market, as well as changing tastes.
“In the same period we have seen a dramatic fall in demand for the meat pie in the route trade market which is more likely to have been caused by changes in consumer fast food preferences,” she said.
In the route trade channel, beverages remained the dominant purchase, accounting for 59 per cent of the market at $1.9 million in 2012, but confectionery saw growth of 19 per cent in value since 2010 to $711 million. Pie sales came in at $79 million, according to BIS Foodservice.
However, Four’N Twenty brand manager Mark Malak said sales data from Aztec (which covers major retail channels including grocery, pharmacy, liquor, petrol & convenience) showed the total national hot pastry on-the-go market grew 5.8 per cent by dollar value in the year to March 2013.
He says Four’N Twenty also saw a 73 per cent growth in its petrol and convenience store sales last financial year.
“We are selling more meat pies than ever. The Four’N Twenty brand grew by 29.5 per cent in sales value last year, making it the fastest growing brand compared to other products in the P&C market,” Malak said in a statement.
He told Food & Drink Business there was a continuing trend towards consumers eating on-the-go, and wanting an attractive alternative to what’s on offer at quick service restaurants.
“We see a major opportunity to grow the category by introducing products which meet consumers’ needs for different eating occasions during the day,” he said.
“Meat pies are very much part of that mix. They outsell sausage rolls two to one,” he said.
The BIS Foodservice report also showed that service stations with convenience stores increased from an estimated 3,162 outlets in 2010 to 3,450 in 2012. Woolworths/Caltex, meanwhile, went from having 611 stores in the route trade market to 848 in the same timeframe.
At the same time the number of Independent Convenience Stores dropped sharply from 4,131 outlets to just 2,725, a decline of 1,406 stores.
