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Update: Deli provider fights back after Harris Teeter snub

Wednesday, August 12, 2009

(Updated 4:41 pm)

By MARTHA WAGGONER
Associated Press

RALEIGH — Call this one the deli meats throwdown.

A high-end deli meat and cheese maker that has been kicked out of a major North Carolina grocery store chain in favor of its main competitor isn't being quiet about the slight.

Instead, Philadelphia-based Dietz & Watson has issued a challenge to the competitor, Boar's Head, in the form of a Thursday taste test.

"With a marketing machine like they have, they've been able to push their weight around and get some exclusive programs," Dietz & Watson CEO Louis Eni said Wednesday. "We thought it was time to take a stand."

Eni plans to attend the Thursday showdown.

Boar's Head is the top-selling brand, with Dietz & Watson coming in at No. 2, he said, adding that Boar's Head demands exclusivity when it goes into a grocery store. That means the store can't carry ham or Swiss from another top-of-the-line maker. Dietz & Watson doesn't require such exclusivity, Eni said.

"When we compete, we're confident all the time," he said. "We know that more often than not, consumers will choose our brand."

A spokeswoman for Boar's Head, based in Sarasota, Fla., did not return a phone call seeking comment.

The Matthews-based Harris Teeter grocery store chain — which has 189 stores in North Carolina, South Carolina, Virginia, Florida, Georgia, Tennessee, Delaware, Maryland and the D.C. metro area — is rolling out Boar's Head products. So far, the products are available in 19 stores, and there's no timetable for the other stores, said Catherine Reuhl, a Harris Teeter spokeswoman.

Boar's Head "does not require exclusivity per store," she said in an e-mail response to questions, but Harris Teeter decided to carry Boar's Head as its only sliced-to-order produce in 10 to 15 marquee stores.

Reuhl did not respond to a question about why Harris Teeter dropped Dietz & Watson if exclusivity weren't required.

Meg Major, who writes for Progressive Grocer, said Boar's Head is known for requiring exclusivity.

"That's common knowledge," said Major, who wrote an article about the issue earlier this month. "That's the case. They've always expected that of any retailer. It's kind of like one or the other."

A company has to be convinced it offers a quality product to run the sort of campaign Dietz & Watson is running, said Jon Bohlmann, an associate professor of marketing at N.C. State.

"It strikes me that Dietz & Watson is convinced of the quality of its product, so they probably think there's nothing to lose by bringing up this issue and doing this taste," Bohlmann said.

And while the strategy may seem gutsy, it also could be a defensive measure, he said.

"You don't want other grocers to make the same decision that Harris Teeter did," Bohlmann said. "You want to make sure you remind the other people carrying your product that your products really are good. If you prove (it) ... that makes other stores carrying D&W feel better about carrying them."

At the taste test, which Eni will attend, Dietz & Watson will pit its London broil roast beef and Buffalo chicken against Boar's Head's versions of the same. The taste test will run from 11 a.m. to 2 p.m. Tuesday in the interior courtyard at the Epicentre and then resume at 5 p.m.

In addition to the taste test, Dietz & Watson has placed ads on 25 billboards in Charlotte market. It also has 14 people who are conducting samplings at 28 Charlotte- and Raleigh-area Harris Teeter stores and is running radio ads.

Accompanying Photos

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Read "Dietz & Watson won't exit deli case quietly" at Charlotte.com

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Norm*

August 12, 2009 - 9:39 am EDT

Personally, I can't eat marketing so I prefer to shop for food at other stores. Grocery stores and their suppliers are modified forms of mob style business tactics so this isn't a surprise. Too bad we can't eat marketing.

timflowers

August 12, 2009 - 10:01 am EDT

Most grocery stores require manufacturers to pay "slotting" fees for the right to shelf space. If they don't pay, they aren't displayed in the store, unless it's a very popular product and then the product might be given less favorable placement than others.

In the case of Boar's Head, while they are being painted as the enemy for requiring exclusivity, I'm rather certain they had to pay Harris-Teeter a huge sum to get into their stores. They either paid with dollars, free product, or subsidized advertising, but there was almost certainly a deal made. We'll pay for it all in the end.

nonparieldolls

August 12, 2009 - 10:04 am EDT

My best guess would be Harris Teeter's own brand wasn't selling well against D & W, so they're making the switch to Boar's Head. I don't usually buy anythng from the HT deli section. It's usually staffed by a maximum of two people, who are always extremely busy dumping things from plastic cartons into bowls, i.e., potato salad, to actually wait on customers. I prefer the deli section at the Cone Blvd. Wal-Mart: good selection, good prices, and GREAT service. Meats and cheese are sliced to your preference, from the thinnest to thickest, with thin slices nestled between separating sheets of waxed paper. That ain't NEVER happened at a Harris Teeter! Meats and cheese are sliced at one setting, the slicer's choice, and it's usually the thick setting. Giving up D & W guarantees I won't be shopping the HT deli for anything. Actually, I think all I shop for at HT is milk and occasionally cat food. Other stores are better and lower priced.

ceengel

August 12, 2009 - 2:49 pm EDT

Not true--at least not for the HT on Skeet Club. They always slice as thin as you want and use paper in between. Wal-Mart at Bridford Pkwy, on the other hand, is a little thick--both the cuts and the people behind the counter--and they have an annoying habit of slapping the price label on the bag in a way that makes it difficult to open without ripping the plastic bag.

Beanhead

August 12, 2009 - 10:56 am EDT

I do shop at Harris Teeter and I enjoy Dietz and Watson. I can get Boars Head at Lowes. Now it seems there will be little choice. I hope HT changes their mind. These food suppliers should not strong arm a distributer. I thought this was a democratic society? I agree with the writer that compares it to Mob style politcs. I wish HT would reconsider switching. Less choices for the consumer....

mickey

August 12, 2009 - 11:20 am EDT

I hope Harris Teeter sees these comments. I really like the D and W turkey products. Harris Teeter has high prices already. I don't think that now is the time to go for the snob factor. I am buying all store brands if I can.

whyus

August 12, 2009 - 12:04 pm EDT

Does D & W actually think that disparaging Harris Teeter is going to do them any good? I imagine D & W profits are already taking a hit due to fewer people buying expensive meats due to economic situations. Looks like sour grapes to me. Harris Teeter is my favorite grocery store and they are most likely making a sound business decision, based off the complaining by D & W.

oh good grief

August 12, 2009 - 2:01 pm EDT

In the August 5 article on Boar's Head vs. D & W, I said, "Boar's Head better have really good Lebanon bologna or . . . are you listening, HT?"

I did a taste-test today at HT at Friendly -- the Boar's Head Lebanon bologna does NOT have the "true" taste of Lebanon bologna. Boar's Head is completely lacking in the lactic acid taste of true Lebanon bologna. And, unfortunately, any other flavor Boar's Head Lebanon bologna "might" have had is covered up/consumed by a heavy-handed dose of cloves. Daggumit!!!!

holland4

August 12, 2009 - 4:18 pm EDT

Wow. So much discourse about deli meats. If only this much mental energy were expended on the federal government's massive debt...

whyus

August 12, 2009 - 4:48 pm EDT

We can draw a comparison:

Meatheads in Washington vs. ...you have the idea.

holland4

August 12, 2009 - 4:53 pm EDT

Well, that's a start.

jmills

August 12, 2009 - 4:49 pm EDT

Truth is, both Boar's Head and D&W are over-rated and over-priced. I'll take Thumann's cold cuts over either of them.

newkid

August 12, 2009 - 9:58 pm EDT

and over-salted and over-preserved and over-fatty

bstern

August 16, 2009 - 8:15 am EDT

Several things (1) I used to go to HT Deli (whenthey were good)- poor staffing and D&W sent me away. Another major store always has proper staffing- (employees that smile) and BH and Im staying there. (2) if HT wants my business the prices need to be more in line with its competition,(3) The Deli need to have better consumer service staff- (the deli is closed at 5PM on a Friday not good)
when ht went to DW it was not a good marketing idea- a little too late and a not enough-
as fas as D&W it can not compare to BH period