America’s two largest hot dog makers are waging a wiener war as grills fire up this summer, hoping to win over customers and secure the No. 1 spot atop the stagnating frank market.
The latest round in the long-running feud comes as Kraft Foods Inc.’s Oscar Mayer brand gives its signature hot dog a makeover aimed at stealing momentum from Sara Lee Corp.’s Ball Park Franks.
Kraft hopes its reformulation–its first in 20 years for the all-beef hot dog–and a massive promotional campaign attracts new customers with a zestier, meatier recipe.
“[Consumers are] continuing to look for higher flavours, beefier, juicier hot dogs, and we saw that as an opportunity to grow that portion of our business,” said Sean Marks, senior director of marketing for Oscar Mayer.
Both suburban Chicago food manufacturers claim the designation as the nation’s top hot dog brand, based on separate readings of market research and sales data. Experts say the frank fight may become more difficult as the economy sours and hot dog consumption–at least among adults–hits its lowest level since the mid-1980s.
“You can say, at best, long-term, it’s flat,” said Harry Balzer, a vice-president with research firm NPD Group. “[But] it’s still a valuable market.”
With grocery sales of about $2 billion last year hot dogs are far from being discounted. According to NPD data, 48% of American children 18 and under will eat at least one hot dog in the next two weeks. That alone is enough for companies to take notice–particularly Kraft and Sara Lee, which are both in the midst of turnaround plans aimed at reviving stalled sales.
Kraft, the world’s second-largest food company, is also spending the summer promoting its line of snack-sized hot dogs that launched in April by sending its new “Mini Wienermobile” on a nationwide marketing tour alongside the full-scale model. Meanwhile, Sara Lee is touting its Angus beef franks, turkey franks and whole-grain buns that it announced in May. With products like that, it’s not just kids the companies hope to woo.
Both companies declined to release specific information how much they’ve increased hot dog prices to cope with rising commodities costs or how much they’re spending to promote their hot dog products.
But Kraft is pricing its revamped Beef Franks at $3.99–about a dime more than previous versions.
“You definitely have people who are Ball Park Franks or Oscar Mayer enthusiasts and you’re never going to change them,” Warren said.
