"\‘1’5 ' A STUDY OF CENTRAUIED AND RECENTRALIZED PREPACKAGED MEAT OPERAWNS Thai: for 1h. Degree of M. A. MICHIGAN STATE COLLEGE William H. Carey, 115‘. 195! M l N. “,2 * 4* -1' new" n "I. »‘ {‘0 ' ‘1 1‘ J 1 iil‘V"‘ ”l _ 1’. e. 11 ~ I . 1" ‘7 1 .1, 1 \g V ,. K, J "J I ‘ ‘ I l 1 .1‘ 11 1'1; 1; l ‘1 1 1 1 P 1‘ a ,‘ 1 l 1‘ ‘ l 3‘, ' “ , n , I . - T” A . 1, . 1 1 , 1 g, f l .n,‘ .n l. f '4 This is to certify that the thesis entitled M . 113:”an Illzllll m mm mm 'Vyrwm‘ l.P ‘1’ *‘F-‘Wv¢ ‘ Will A.Study of Centralized and Decentralized Prepackaged Meat Operations presented by William H. Garey, Jr. has been accepted towards fulfillment of the requirements for AA.— degree in Wusi ness Curriculum in Food Distribution Major p fessor Dam 2&1 // /ZS’/ / / 7 1 . t ‘ 7,7t* rt - t W' ' . . t 1- , . H ‘4 1 . 1 P 1 F \ ~' 1’ . ‘ ' 11 ‘ ‘1 1' .J’ 1 .1 t ‘ '~ I“ 1 '\1' .1 7] l 1 , ‘ 1/ 1 J ‘ 1 1 1’ Li 1 ' '1 4 ‘ .7 ', .t 1 7111 h ' 1: l '. L 1 l x ’\ ' rI \ 4 I ( rl J 1 I ’- ' , ' a "6 1 P l t l- .“ .I 1‘ 1% I .7 l *' I ll, I] }{ :I w 1 I V . . . ' 1'! ‘1 ‘I' 1 ‘ '1. ‘1 l‘ 1 1 " ‘| x 1 ‘ I l «1 t I y ' l l‘ . 1 ‘n‘ l f .l 1 ’ A .‘x ‘ l .1; 1 11 r 7 l . V 7 *'t' l. 1 i 1‘ " i Y . ' 1t 1' 7 :11 ”'1 r1 "*r'ar- "1"} ' 7"“; ' '~ A - WW1 " -' “ QPKUI Lb v.1; iL{-_LJ—L;_L..JD .1...le D.’.J'J..4 AiLLLlLJJD E :{441 4‘“. Ck:-'LG-JU 4:201} SI -‘ IL.TI OTC-:3 hv Jilliem E._g:;ey. Jr. A $34313 dubnitted to the Greduste School ofirichisen State College of gariculture end spnlied Science in gertiel fulfillvent of the requirements for the degree of LnSTLR OF 5 T3 Department of General Business Curriculum in Food Distribution 1951 THESI \ C/yf/f/ /3;¢¥ ACKNO JLEDGEMSN T The author wishes to take this Opportunity to express his appreciation for the aid received in the preparation of this manuscript. In particular the writer is deeply indebted to Doctor Kenneth Wilson for both the training received in his classes and the direct assistance which he so unselfishly rendered, and to Mr. Lloyd Moseley and the Grand Union Company whose participation in formulating and supporting the Curriculum in Food Distribution through the National Association of Food Chains, have made this study possible. Finally, as in everything, I owe most to my wife, with- out whose tireless endeavor in typing and preparation this work would never have been completed. The Author 255869 Chapter I II III IV VI VII C ON TENT 3 Introduction Growth of Self-Service Grand Union Company A Centralized Operation Small Centralized Operations The Role of the Packer Conclusion Pages 21 32 56 71 87 CHalTER I INTRODUCTION Purpose of Study The purpose of this study is to set forth examples of three methods that are being employed in packaging meat pro- ducts for sale in self-service meat stores or departments. Firstly, consideration is given to the prepackaging which is being done at the retail level by individual retail stores or super markets. Secondly, since an ever-increasing number of chain stores are using a centralized prepackaging opera- tion, where all meat for a number of stores is packaged at a central location or warehouse and distributed to the various stores, this system has also been studied. Finally, meat packers and processors in their role of suppliers to the meat retailing industry are considered. The packers, being well aware of the potential gains to be made through prepackaging, are currently offering a substantial portion of their products in packaged form. Any study of this nature should certainly include some of the prepackaging techniques being employed by the meat packing industry. The so-called case history form of presentation has been used in an effort to focalize attention on the endeavors of specific companies that have lent considerable stature and {\3 prominence to the prepackaging field. They may be regarded in many respects, as the pioneers in their particular area of endeavor. Since large chains store organizations, by their very nature, differ greatly from small chains, cognizance of this fact has been taken and illustrations of some of the prepackaging endeavors of small chains have been in- cluded in the sample. Size has not been regarded as a cri- terion of efficiency. Throughout this manuscript emphasis has been placed on techniques and methods used in the operations cited. Re- sults in terms of cost figures, sales figures, et cetera have been presented when they were available. If, on the other hand, they were not readily obtainable, they were 0- mitted because of necessity. Source of Data To this writer's knowledge there are few if any learned treatises or books written on the subject of prepackaged meat. There is, however cepious information on this subject contained in many of the trade journals and publications that serve the food industry. Therefore, it Was deemed advisable to draw heavily from these publications in an effort to secure pertinent up-to-date data on what is currently being accomplished in this rapidly changing and dynamic business. In addition, a considerable amount of correspondence was exchanged with trade publication editors, machinery and equip- ment manufacturers, self-service meat display case manufacturers and self-service meat consultants. Replies to these inquiries were, indeed, rewarding and provided an excellent source of pertinent information. The Grand Union Company of New York City and in particular Hr. Gerald Kreger also aided considerably in furnishing mater- ial on some of the methods used by this company in their pre- packaged meat Operations. Definition of Terms References are made, throughout this thesis, to large volume stores or super markets. Thus, it would be well to de- fine a super market. In its requirements for membership, the Super Market Institute defines a super market as a department- alized retail establishment having the four basic food depart- ments: Self—service grocery, meat, produce and dairy and hav- ing minimum annual sales of $250,000.1 also for those who are not completely familiar with the term "centralized operation", as it applies to a chain store organization, the following explanation is tendered: Meat which is ordered to fulfill sales requirements is delivered to a central plant usually located in or in close proximity to the chain's warehouse. All cutting, packaging and storing I. William H. Albers, Food Marketing (New York: NeGraw-Hill Book Company, Inc., 1950), p. 41. is done in this central plant by a specialized crew using all possible labor-saving devices and equipment. Meat orders from the retail store managers are re- ceived, prepared, and shipped tO the stores by either re- frigerated or non-refrigerated trucks. Delivery days are staggered so as to provide the greatest efficiency. Certain variables may be considered in determining the amount or kind Of meat products that are to be prepack- aged centrally. As in the case Of the Operation described in Chapter IV, it may not be advisable to prepackage a complete line of meat products, but merely certain types of merchandise such as cold luncheon meets or sausage pro- ducts. This is eSpecially true in relation to a large chain Operating a substantial number Of large volume stores in a densely populated area. Limitations There is a great deal of divergence in the size, lo- cation and managerial attitudes of the entire group Of chain store companies in this country. as a matter of fact, some chains are still not firmly convinced that self-service meat is particularly applicable to their type of business and therefore continue to merchandise meat by the Old time-worn and established service system. Therefore, to belabor the point of whether or not meet should be prepackaged in a central location to a person who is not at all convinced or even impressed with the advantages Of self-service meat seems irrelevant. However, there are many chains and individual Operators who are firmly convinced about the future of self- service that would like to know the answer to this question. It is to those peOple, who firmly believe that self- service is the best way to merchandise meat that this manu- script is directed. CHAPTER II THE GROWTH OF SELF-SERVICE EAT In order to understand better this relatively new method Of'merchandising fresh and cured meet a short explanation of the growth Of self-service is noteworthy at this time, in or- der to acquaint the reader with the phenomenal acceptance that has greeted self-service by the consuming public as well as the great number’of grocery retailers, who have seen fit to adopt it. Prior to World War II there were less than ten stores in the entire country pioneering in this new merchandising tech- nique. The war years necessarily held up further deveIOpment and expansion as equipment and materials were diverted to mo- bilization needs. By the Spring of 1946 more equipment be- came available and a few more stores were added to the orig- inal handful. By April, 1947 the number had increased to seventy. In the Spring Of 1948 the Research.Department Of Armour and Company sent a questionnaire to the entire Armour sales organization, asking for the names and addresses of all re- tailers operating on a 100 percent basis in their meat de- partments. .At the same time certain other information was Obtained about each individual Operation. As of April 1, 1948, Armour and Company was able to locate 178 stores Operating on a self-service basis. It was agreed that a number had been missed at the time. Fur- ther investigation revealed that the number was somewhere over two hundred. This survey was made on a complete nation- wide basis by the entire Armour and Company sales organization, As of September 1, 1948, a subsequent survey taken in the same manner as the original survey revealed that the num- ber of stores operating on a self-service basis had increased to 391, or about double the number on April first Of the same year. Of the 391 stores mentioned, California showed the largest number with 67, and Texas was second in ranking with 31 and New YOrk State was close behind.with thirty.2 ,Among the cities, the greatest cluster Of self-service meat stores was in New Yerk, Philadelphia and Los Angeles. There was also a cluster in the Phoenix-Tucson area and in Denver and Indianapolis. On the other hand, Chicago and St. Louis did not have l. ibid., p. 131. 2. Walter Shaeffer. "Analysis of Trends in Connection With the Sale Of Some neat Products." The National Provisioner. 19 (October 2, 1948), p. 130. any self-service meat Operations as Of April 1, 1948. This fact was traceable to union Opposition existent at the time. Self-service still has not come into Chicago because of this same union situation. In order to substantiate the findings Of the Armour and Company Survey the results of an additional and entirely in- dependent survey made by the marketing Research Branch, Pro- duction and.Marketing Adminiétration, United States Depart- ment of Agriculture is cited.3 Only about four hundred stores had self-service meat de- partments when this survey was made in November and December 1948. Of the 97 stores which they actually surveyed and gathered facts from, 88 were found to be less than two years Old, and 61 Of these were less than one year Old. The sur- veyed stores were located in eighty cities in 27 states and the District Of Columbia. Independent Operators owned 32 Of the 97 stores and 65 stores were owned by thirtybfour chain store companies. or the 97 stores, 93 sold from 95 to 100 percent Of'their'neat and meat products by the self-ser- vice method.4 3. 'U. S. Department Of Agriculture, Production and marketing Administration, marketing Research Branch. nRetailing Pre- packaged meats," Washington 25, D. C. December 1949. p. 2. 4. ibid., p. 2 Thus, it is seen that these two different surveys taken at the close of 1948, both revealed that the number Of self- service meat Operations, as closely as could be determined in a nation-wide poll Of this type, was in the neighborhood Of four hundred units. This was an appreciable growth in number over the 178 stores using self-service meats that were found in April, 1948 and indicate the definite beginning Of a trend which shall be investigated further. With the same purpose in mind Of determining the swing to self-service meat, Armour and Company repeated this same survey by the questionnaire method through their sales organi- zation in 1949 and 1950. As Of April 1, 1949 there were 878 complete_self-service neat Operations and.the figures revealed that for 1950 the number had increased to 1983.5 .According to this most recent tabulation (1950) made by Armour, New York State led in number’of self-service neat out- lets with 213, followed by Texas with one hundred and fifty, Ohio with One hundred and forty, Florida with 128, and Penn- sylvania with 125. California with 111 was sixth in ranking, whereas in 1949 it was first. Figure 1 illustrates diagrammatically thegmmmmh of self- service as compiled by the Armour and Company Research Organi- 5. Armour and Company. "Meat Retailing in 1950". Chicago: Armour and Company, l950.p. 9 N0. CE 2000‘- 1800 - 1600 — 1400 _ 1200 — 1000 — 800 - 600 - 400 ' 200 ” STORES 15 28 mm 10 178 68 m 7///////A§ 7//////////////////m 1945 1946 Fig. l. 1947 1948 1949 1950 GROWTH OF SELF-SERVICE 11 zation. The figures given reveal the increase in number of self-service meat Outlets from 1945 to 1950 inclusive. The greatest growth during 1950 was in the Northeastern and Middle Western sections of the country. The Northeast jumped from 41 complete self-service stores in 1948 to 685 as of April 1, 1950. The Southeast and Southwest had also expanded greatly.6 The Pacific Coast, on the other hand, showed very little eXpansion in self-service stores between 1949 and 1950. New self-service stores Sprang up in California, but because Of reconversions and going out Of business, the total number in that state remained about the same.7 Figure 2 shows the growth of 100 percent self-service meat stores by regions in the years 1948, 1949 and 1950. A comparison Of the figures will illustrate very clearly the rapid growth evidenced in the Northeast and Middlewest, as well as the Southeast and Southwest. Large chain-store companies have moved very rapidly into self-service meat. As Of April 1, 1950, one out of every two complete self-service stores were Operated by a large chain. Based on their announced plans, it is prob- able that these Operators will continue to account for an increasing prOportion of all self-service stores. 6. ibid., p. 15. 7. ibid., p. 16. REGIONS 194a 1949 1950 NORTHEHST 41 500 685 MIDDLE WEST 29 155 521 SOUTHEAST 10 93 275 SOUTHWEST 27 92 215 PACIFIC COAST 47 137 145 ROCKY'MOUNTAIN 24 101 142 TOTALS 178 878 1983 FIGURE 2. GROWTH OF 100 PERCENT SELF- HERVICE MBz'lT STORES BY REGIONS ROCKY 0 J AIN IACIFIC COAST SOUT' MI DDLE TIE ST NC? RTH Sui—ST Fig. 3. SELF-SERVICE STORES DO 6 IERCEI‘TT OF TOTAL RETRIL I‘EnT BUSINESS 14 Small chains doing less than twenty million dollars business annually, had just about held their Own and had accounted for about 20 percent Of all self-servide meat stores as Of April, 1950.8 The independents, while they expanded, did not expand nearly as fast as the large chains, and their proportion drOp- ped dteadily from.over three-fourths to less than one-third Of all self-service meat stores. The two thousand self-service meat stores represented only 1 percent Of all food stores handling fresh.neats, yet they did 6 percent of the total retail meat business. A regional breakdown Of this percentage Of'the total meat sales is shown in Figure 5. Again it was revealed that the Northeast and Middlewest were garnering a substantial amount Of this self- service meat business. The Armour survey further revealed that 20 percent Of the total self-service stores had weekly meat sales Of $6,000, to $10,000 and 14 percent did $10,000 and over in business per week.9 This fact coupled with the knowledge that one out Of every two did a meat volume of $2,000 to $6,000 per week certainly pointed out the fact that they were supermarkets in ev- ery sense Of the word. 8. ibid., p. 15. 9. ibid., p. 19. 15 An added basis for comparison Of the relative growth of self-service meat is evidenced in a questionnaire sur- vey conducted by the Super Market Institute in January 1950. Replies to these questionnaires were received from 259 companies or 67 percent Of the membership. These companies Operated a total of 2,755 super markets and 823 other retail food stores with aggregate sales of more than $2,000,000,000 in 1949. The respondents were regarded by the Super Market Institute as being representative Of the membership as a whole.10 The findings of this survey may be looked upon as valid for the entire super market industry, as the membership is believed to be fairly typical Of all supermarket Operations, even though the five largest grocery chains are not:represent- ed. It was found, among reporting members, that self-service in meat departments had made rapid strides in 1949, as 54 per- cent of the companies installed self-service in 16 percent Of all the meat departments Operated by the Super Market Instit- tute membership. Complete installations outnumbered partial installations.As a result of these additional installations, 71 percent of Super Market Institute members now Operate self- service meat departments in 44 percent Of all the Super Mar- 10. The Super market Institute. "The Super market Industry Speaks". New York: The Fuper Market Institute, 1950, p. 2. 16 kets. Of these, 25 percent are partial self-service and 21 percent are complete.11 The largest companies with sales above $40,000,000 had the largest percentage of complete self-service meat installations. Twenty-eight percent Of all their supers are so equipped. These companies Operate very few partial self-service meat departments. It was also indicated that self-service meat may be found in the majority of new super markets Opened in 1949. There was a coyplete self-service installation in 41 percent and partial installation in 33 percent of the new supers. This survey also revealed pronounced regional differ- ences in the extent Of self-service meat; but even in the regions which lag behind, most new supers Opened with some form of self-service meat. Since the questionnaire was arranged to garner infor- mation on the succeeding year of 1950, some additional, in- teresting data was revealed. Definite plans called for add- itional self-service Heat installations in 1950. Over half of the companies (54 percent) planned to install self-ser- vice meat in 18 percent of all Super Market Institute super' markets that would be in existence by the end Of 1950. Com- plete self-service installations were favored over partial 11. ibid., p. 20. 17 installations. They represented 66 percent of the total planned installations for the year 1950, compared with.a figure Of 55 percent in 1949 and only 25 percent in 1947.12 Complete self-service installations were favored over partial installations. They represented 66 percent of the total planned installations for 1950 compared with 55 percent in 1949 and only 25 percent in 1947. Figure 4 illustrates graphically the gradUSl preference for complete self-service meat by Super Karket Institute members. as was true in 1949, three-fourths Of the new super markets are scheduled to Open with self-service meat. The new super markets were supposed to account for two-thirds of all self-service meat installa- tions in 1950, while the other one-third would be in Old super markets, generally as part Of a major remodeling. The Super karket Institute Research Department felt, there- fore, that On the basis of the facts gathered from their ex- tensive survey of menber companies, by the end of 1951, a substantial majority of the member companies' super markets will have self-service meat, and that there will be more com- plete than partial self-service meat departments. The actual figures conpiled by the Super Karket Instit- ute Research Staff from a survey made in 1950 in the same manner as the 1949 survey reveal that the predictions and 12. ibid., p. 21. mesmema eeeaaemzH seams: maSm em sees soaememéaem more aosgaaamm 44:82.0 .4 .wE 18 IWFHAQZOU 19 anticipations of their menbership in regards to self-ser- vice meat in new installations had substantial Validity. The new stores of 1950 featured either 100 percent self-service or partial self-service in 79 percent of the new Openings.15 The regional trends in distribution of complete self- service meat departments corroborate those revealed earlier in 1950 by the armour and Company survey on the progress of self-service meats, particularly with regard to the shift in self-service activity from the Vest to the east. For instance, only 10.5 percent of the new super markets in the facific area incorporated complete self-service, compared with 66.7 percent in the kindle “tlantic. There is also a direct correlation between the size of the market and the extent of self-service in the m at depart- ment. The small markets recorded a 20 percent representation cempared with 76.9 percent for the largest ones. 14 Thus we see that from a relatively humble origin in the post war years when but ten retail stores could boast of this type of merchandising, self-service has evolved to the point where it may be assumed, with substantial justification, that it will no longer be feasible to Open a large one-stop 13. Anonymous. "Super Industry TOps Record." Super Karket iherchandisigg. (March 1951), p. 41. 14. ibid., p. 42. 20 super market without first considering the installation of a self-service meat Operation. CHAPTER III GRaED UNION CONPANY The Grand Union Company of New York was one of the first of the large chains to adOpt a 100 percent self-service meat department wholeheartedly. For this reason a perusal of some of the methods and practices employed is worthy of note. at the present time approximately 65 percent of Grand Union's total meat business is done in one hundred and five self-service meat departments. This is a figure, which this writer believes, cannot be matched by any chain of comparable size. Self-service meat departments were first installed in 1940. The initial success and exPansion were curtailed by WOrld war 11. However, with the cessation of hostilities and the appear- ance once again of diaplay cases, equipment and materials, the company resumed installation of self-service meat departments. Customer acceptance and the utilization of preper packaging, displaying and merchandising techniques are three of the most important reasons for the success of the Meateria departments.l Grand Union operates a total of 288 stores. The majority of these stores are in the Greater New Yerk Metropolitan area. 1. mmateria is the name used by Grand Union Company for self- service meat departments. Additional stores are located in the surrounding states of Pennsylvania, Connecticut, massachusetts and Vermont. Total sales for the fiscal year 1950 were slightly in excess of $160,000,000. These figures, when coupled with the fact that 65 percent of total meat sales are made through the Meateria departments, reveal the magnitude of this partic- ular segment of the business. The following is a resume of some of the successful measures and controls exerted by Grand Union Company in their highly successful Meateria Departments: Store Layout The space allocated to a meateria Department will differ according to the size and shape of the store. This is also true about the position of the department within the store. Within limits, however, certain standard procedures are foll- owed in the organization of a Meateria Department. There are four main areas to be considered. The cooler for storage of wholesale cuts and consumer cuts which are con- ditioned before wrapping;2 the cutting area, where meat cutters process and break wholesale cuts into retail and consumer units; the wrapping room, where all meat is prepackaged and priced be- 2. Grand Union follows the policy of storing unwrapped consum- er cuts in a holding cooler at a temperature ranging from 32 degrees depending upon the cut of meat. This results in a so-called "bloom" that adds immeasurably to the appearance of the meat. £0 03 fore removal to the display case and finally the all-important display case that is located in the sales area of the store. Ideally, the location of each of these Specific areas complements the remaining areas. That is, the cutting room adjoins the wrapping room and the cooler is placed so as to be readily accessible to the cutting room. Incoming merchan- dise is conveyed to the cooler where it is either broken into retail cuts or stored for future processing. As the need a- rises the meat is removed from the cooler to the cutting room and converted to consumer cuts. From the cutting room, the meat is quickly transferred to the packaging area where women employees weigh, wrap, label and price each individual cut of meat. The woman Who does the weighing writes the price on either a thermOplastic or a grease proof label, puts the label on the meat and places the meat on a moving belt. The wrappers then take the meat from the conveyor belt, place the label on the inside of the celloPhane material and wrap the product. If thermoplastic labels are used, they are heat-sealed to the out- side of the package after it is wrapped. The package is then replaced on the conveyor belt and moved to the end of the table where it drOps into a basket. From there the product is either diaplayed in the self-service case or placed in storage until needed. Several tables with conveyor belts may be used, depending upon the amount of a product that must be packaged. Some mar- kets use different tables for wrapping different products, such as: one table for luncheon meats and one for cheese. In order to get maximum efficiency in the packaging section, all the component parts of the package are placed at the Operator's fingertips. Sufficient material to be pack- aged is kept flowing to the wrapper so that she can wrap the maximum amount or number of packages without leaving the pack- aging bench. To attain greatest efficiency, the work bench is designed to keep. the entire wrapping table free of any packaging mat- erial. This material is either placed on shelves near the table or in drawers located in the work bench. Each Operator's wrapping space is planned to be a complete unit within itself, with all packaging equipment and supplies in easy reach. The self-service display case is, of course, the most im— portant piece of equipment used in the Ekateria Department. The question of where the meat display case is to be located is decided by the size of the store and the weekly meat sales figures. In many larger volume stores one complete side wall of the store is devoted to meat display cases. In smaller volume stores it has been the practice to locate the meat Department across the rear of the store. This arrangement is eSpecially good for supplying the display case from.a rear, backroom.position. When the display case is located along a .side wall of the store it must be supplied from the front. In this situation the cutting and packaging room is located in the rear and on the same side of the store as the diaplay case. Packaging The actual heat sealing of packages is done either with hand irons or hot plates. The hot plates are immovable and are seated in the work table. The irons and hot plates are thermostatically controlled to hold an average heat of 325 degrees. Bulky and awkward sized packages are sealed most easily with a hand iron. Smaller, more uniform packages such as luncheon meat units are easier to seal with a hot plate. Since both ce110phane and pliofilm are used to wrap products, a different temperature is used for each. 0n cello- phane the iron can he slid over the film to seal it in one smooth.motion. With pliofilm the iron cannot be passed over in this manner without melting the pliofilm, Therefore, the iron must be placed or Spotted on the seam and removed quickly to make a sort of spot weld. Care is taken that the right type of cellOphane is used on fresh meats. This material is known as MEAT Number Eighty used on fresh pork, veal, lamb and beef. One side of the MEAT Number Eighty has been treated to prevent discoloration of the meat and it is the only side that is placed next to the meat. When pliofilm is used either side may be placed next to the meat since both sides are the same. MEAT Number Eighty will curl when exposed to either high or low humidity. Rolls and sheets are kept carefully wrapped when not in use. The film.is manufactured to remain flat when in contact with about 60 percent relative humidity. Cardboard or board stock are used on the back of fresh meat packages. The board not only adds rigidity to the pack- age, but provides a flat surface for heat sealing. The board backing also prevents the heated iron from searing or harming the meat in any way. The board stock is odorless, tasteless and moisture proof. Trays or blown pulp cartons are used for such meats as hamburger, stewing beef and poultry. The trays are high and allow maximum.visibility. They are also odorless, tasteless and non-absorbent. The most widely used size is five inches by five inches. In addition to the word "Bonded", that appears on the label and is used for coding purposes, the following infor- mation also appears on the label; name of the company, name of the item, the weight, price per pound and the total price of the package. These markings afford the customer helpful information in making a decision about any out of meat she might desire. The inclusion of the price per pound design- ation is very important and company policy demands that this price be marked clearly on the label. Merchandising and Display Store layout, packaging and equipment are all factors subservient to prOper display. .Attractive and well-rounded displays are an absolute necessity in a profitable Meateria Department. In order to accomplish attractive and appealing 27 diSplays, Grand Union Company has employed several merchan- dising techniques. To control the freshness of merchandise a code is used. This code is simple to understand, yet has no significance to the customer. The word, ”Bonded", which appears on every label is used. A.pencil line can be drawn through a differ- ent letter each day to indicate when the merchandise has been wrapped. Monday Tuesday Wednesday Thursday Friday Saturday UWUZOUI For example, if a package is wrapped on Wednesday a line is drawn through the third letter "n" as Bonded. Rewraps bear the same coding as the original wrapping ex- cept that the letter 'R' is placed on the upper right hand corner of the label to indicate that the package is a rewrap.3 Packages are placed in the diSplay case so that they may be inspected by the customers with a minimum.of handling. An attractive display is maintained by frequently rearranging packages that have been left out of place. Packages are also rotated to encourage sale of the older packages first. 3. Rewraps consist of those packages which become torn or un- sightly. They must be sent back through the packaging process for a new celIOphane wrapping before they may be displayed again. Since this is a costly procedure every effort is made to keep the number of rewraps as low as possible. 28 These functions are performed by the hostess, who is integral part of any meateria Department. By prOper rotation of packages in the display case and in the storage departments and by timely orders to the cutting room for merchandise to. replenish the display, the hostess increases turnover and re- duces the danger of discoloration. Also, packages having torn celIOphane or pliofilm start to discolor at once. Therefore, it is necessary for the hostess to be constantly alert for such torn packages and remove them for rewrapping immediately. Hostesses are carefully selected and trained. They are the important human relation link between the customer and the company in the Meateria Department. The filling of this position and the training the hostess receives are important. In addition to being socially minded and of an amiable nature the hostess must have a knowledge of meat cuts, products and cookery. As well as having display ability she should also be capable of suggestive selling. In the matter of special cuts, the hostess must understand what the customer wishes and she must be able to relay this information to the meat cutter in an intelligent manner. In order to maintain freshness control in meat displays Grand Union Company has set up a control chart in each store which acts as a guide to managers. The chart provides infor- mation on the amount of meat by cuts that should be diSplayed on any given day of the week. While this varies slightly from store to store, close adherence to the amounts stipulated in the control chart has resulted in a minimum of packages that have to be removed from sale, trimmed and sold as cheaper cuts. Arrangement of the meat display has a direct bearing on sales. There are many schools of thought on this subject and Just as many arrangement schemes as there are schools of thought. However, Grand Union Company has had significant success with an arrangement set up according to cooking classi- fications. Steaks, roasts, chOps, et cetera are grouped to- gether. Steaks are at the end of the case where the customer begins her purchases and delicatessen items are at the extreme end where the customer concludes her shepping visit. Roasts and heavy cuts_are limited during the early part of the week. Emphasis is placed on chops and steaks. Near the end of the week the heavier cuts that are in demand are made more plentiful in the diSplay cases. ‘When the customers ask for Special cuts, personnel is. assigned to handle these requests at once. The Special orders are wrapped in celIOphane to avoid the impression that pre- ferred customers are getting the choice cuts. A check is made on Special requests so that they may be included in the regular line-up of merchandise, if there is sufficient demand. Luncheon meats are displayed in such a manner as to mini- mize the light exposure to the product surface. This is accom- plished by stacking the packages one on top of the other so that only the t0p is exposed. Personnel Personnel required for the packaging Operation includes cutters, weighers, labelers and wrappers. TO coordinate the activities of Operators, an efficient manager is necessary. The manager has a definite schedule and Job for each Operator. He must anticipate buying habits of the customers each day and submit a list of products to the cutter at the beginning of each day. In addition the manager resumes full responsibility for ordering of all merchandise and supplies. He is an expert merchandiser, who controls the flow of the various cuts of fresh meat so that he moves every part Of the carcass. The concentration of the work force and the division and assignment of certain tasks to particular individuals provide the manager on excellent Opportunity to supervise every detail of the Operation. The meat cutter in a Meateria Operation does not have direct contact with the public. He is, therefore, as equally interested in production as he is in sales. He can perform his duties completely undisturbed by requests from cuStomers, and in this way he can concentrate his efforts and.increase production rates accordingly. Since the meat cutter is the main cog in the production process, he must see that a steady flow of meat products is available for packaging at all times. He is chiefly responsible for the production tempo at any given time. 31 Sealers and wrappers are chiefly concerned with prOper weighing and packaging procedures. A scaler must be ex- tremely careful in determining the unit price for each pack- age She weighs. Likewise, the wrapper is equally careful of the overwrap which She places on the package. Because of the monotonous nature of these two jobs it has been the practice to alternate the women between these two tasks. This helps to alleviate the monotony and to re- duce fatigue. There is very little difference in the relation of labor cost to sales between self-service and service operations. The chief advantage has been in the increased sales that have accompanied the installation of’Meateria Departments. This fact, coupled with an awareness that customers have shown and continue to Show a remarkable acceptance for self- Service meat, has led Grand Union to consider the meateria Department as an integral part of any new stores that are opened in the future. CM’TER IV A CENTRALIZED OPERATION While there are not many centralized prepackaging meat units in Operation at the present time, which are being Oper- ated by chain store organizations there are in existence, an ample number to provide a basis of comparison with the very numerous and profitable prepackaging Operations being con- ducted in the individual retail stores by chains as well as independents. There is a difference, of course, in the volume of meat being prepackaged at the central plants and the extent to which machinery is being utilized. There is also a distinct difference in the nature and number of meat products, that various chains deem advisable to prepackage. For instance, a small chain Operating five to ten stores might achieve the greatest efficiency and economy by prepackaging their entire line of merchandise. This would include all fresh beef, pork, and veal, as well as, smoked meat, cured meat, poultry and all prepared luncheon meat. On the other hand, larger chains with an abundance of stores located in a Specified area, have found it more advantageous to prepackage only smoked and cured meat, prepared luncheon meats and bacon at their central plant. The remaining fresh meat, poultry and offal products are then 33 prepackaged in the individual stores. The reason for this partial prepackaging at the central plant is twofold. First, the eXperimentation with prepared and cured meat Offers a fine basis of comparison for what might be done with fresh meat at a later date. Secondly, the pilot Operation provides valuable eXperience about technical difficulties as well as arriving at correct assumptions about the most advantageous amounts of labor and machinery to be used to achieve Optimum output. Most chain stores, at the present time, are packaging a great share of their luncheon meats at store level. A cer- tain percentage of these packaged items are purchased from the packer, but in the main, bulk products are purchased and packaged in the stores. any chain organization or any cOOper- ative unit Which has a large enough volume in these products is much better off economically to do its own packaging in a central unit. \V’ By the use of a trade mark or trade name on the package, a chain can develop its own preferred product and sell it in- stead of a packer branded merchandise. The chain thus in— creases its profits and prevents competition from cutting price on the product that it has develOped.1 l. Ezra Lapides. "Technical ASpects of the Central Plant for Cold Meats and Cheese". Miller and Killer, Inc. At- lanta, 1950. p. 2. 54 A large national chain now has in full Operation a pre- packaging plant capable of supplying all the bacon, smoked ham, smoked picnic, sliced luncheon meat and ring and chunk portions of such items as bologna, liverwurst and salami re- quirements to eighty-five self-service stores in the Detroit area. This pilot Operation, looked upon by many experts in the food merchandising field as the foremost of its kind, has drawn wideSpread attention. A perusal of some of its aspects is, indeed, worthy of note. The production setup is divided into four distinct sect- ions. One production line is devoted exclusively to bacon slicing, weighing, wrapping and packing. Sliced Bacon Line Figure 5 illustrates the arrangement of machinery, the positions that the workers assume in relation to the con- veyor belt and the flow of bacon from the point where it is first fed into the slicing machine, to the point where it is placed in boxes and readied for shipment to the retail stores. At the extreme left of the production line there are ‘skids, upon which pork bellies are placed and readied for in- sertion into the automatic slicing machine. It is the reSpon- sibility of one man to see that there is always a sufficient amount of bellies on hand to assure a steady flow of material for the line. He makes use of a hand lift to reduce the num— ber of times the bellies must be handled. Thus, they need only be handled once from the time they are placed on the 35 $25034 wZHnHmatE» OHBSQO .Hbe4 mzHa Zooam QMQHam .m .maa mze HBZOO mMH¢om _ F HHm4B GZHBBDU mcheaam OZHmm4m3 - QHMM 48 packages are weighed, priced and marked. Since each is a slightly different weight, great care is taken to price correctly and read the scales closely. This task is done by four scalers. when each tray of meat has been priced it is then placed on the conveyor and sent to the holding room, where it is boxed and placed on skids reaay for shipment. The total re- tail price of each box of meat is calculated and placed on the outer side of the box. This packaging line is very ver- satile and is able to include all types of portions of pre- pared meat that do not lend themselves readily to machine packaging. This includes smoked ham slices. any number of wrappers, up to eleven, can be employed at a given time de- pending on the volume to be packaged. The productivity of the cutter who slices the loaves is eSpecially high. Concentrating on this one task, he accomp- lishes it with a minimum of metion, time and energy. His efficiency and speed assures the wrappers an Uninterrupted flow of merchandise and steppages due to lack of merchandise are non-existent. The practice of sealing the label on the outside of the package also lends itself very readily to HESS production techniques. It also assures a heater package, because moisture or smear from the meat is eliminated. 49 Luncheon Meat Line The luncheon meat line employing twelve women workers is capable of supplying 85 stores in the district with all requirements for sliced luncheon meats. The placement of automatic slicers, scales, wrapping machines, and Operators is shown in Figure 9. Luncheon meat loaves are assembled on skids provided for this purpose and placed beside the slicing machines. It requires two women to supply the slicers and to assure a steady, continous Operation. They merely place the two loaves in each machine, when the previously inserted two loaves have been run through. The machine slices and stacks the two loaves in two piles on the conveyor. The conveyor is rigged to move in conjunction with the slnzing machine. That is, when the allotted number of slices have been turned out, the machine steps for a Split second and the conveyor moves forward far enough for the next stack of Slices to start accumulating. The stacks of luncheon meat are in one-half pound quan- tities. This is regulated by the machine with the use of a counter and an adjustment that determines the thickness of the slices of luncheon meat. The sealer at the other end of the conveyor merely takes the stacks from the conveyor and places them on the scale to 50 ES same 23523 3on a .me QHMm wage; sake Hazy: e253,. mohmfizoo mowm>200 mag . m m gfl mmz ,. 3H 0H 4 mg canard. Daria. 51 determine if they meet the one-half pound weight requirement. f not, she adds or subtracts the right quantity. Detecto scales are used to reduce eye strain_and provide maximum speed in weighing.4 When removing the meat from the scale the scaler slides a piece of cardboard backing under the meat on the continuous conveyor which conveys it to the wrapping nmchine where it is wrapped, scaled, labeled and priced marked all in one Operation. The meat is then boxed and brought to the holding room where it is stacked in a designated spot, ready for shipment. This production line produces thirty-eight thousand pounds of luncheon meat per week. Taking into consideration that the work week consists of five days, this reams daily production is seven thousand six hundred pounds. When this latter figure is divided by the number of workers em- ployed, namely ten, the result is six hundred twentybfive pounds Of sliced meat per day per employee. Taking into consideration that the average luncheon meat loaf used weighs ten.pounds, and this is a very generous estimate, then each worker is processing, on the average, 62% loaves per day. 4. Detecto scales have no weight calibrations. They only indicate whether the portion on the scale is under or over we ighto 52 Even the most partial observer must admit that this volume of work is substantial. In fact, this promictivity could not be achieved at the store level, unless hugh quantities of automatic equipment were used, and then there is serious question if it could be effected. Male Personnel Requirements In order to assure the prOper supervision, flow of mat- erials and.neat and maintenance of machinery, nine male em- ployees are required. One, a mechanic, tends to the function- ing and orderly Operating of all machines. He Oils the mech- inery, sharpens blades and takes care Of’any breakdowns that occur. One man works at the bacOn packaging line, assisting in moving skids and.replensishing supplies to thexworkers, reg- ulating the flow Of bacon to the sealers, and generally seeing that the Operation fUnctions smoothly. Another nan is needed to supervise the three remaining lines. He is constantly aiding, advising and performing the other duties Of a superb visOr. Two other men are needed to move meat tc>and from the lines before and.after it has been packaged. As previously mentioned, two men are constantly cutting meat. One is stationed at the smoked ham line and other at the hand-wrap " line. Two general supervisors are also employed. In addi- tion to handling personnel problems, they are constantly studying and improvising new and better ways Of doing things. They are also responsible for production and an over-all effi- cient Operation. Needless to say, these two men are the hub Of the entire system. Temperature Control The entire packaging room is kept at fifty degrees at all times. This keeps down the bacteria count, reduces spoil- age and preserves the freshness of the meat while it is being packaged. It also prevents the meat from sudden changes in temperature as it is routed through the various stages of packaging. The holding or storing room is kept at 35 degrees. This temperature preserves the freshness of the packages, but is not low enough to freeze the meat. Reaction of the employees to this rather low temperature is not what one would eXpect it to be. Rather than being diapleased with the temperature, they ans, on the contrary, very receptive to it. The nature of‘theiwork is such that they are constantly moving to some extent and this provides enough movement to keep them warm and contented at their work. Inquiries and misgivings about the low room temperature were greeted with surprise by all persons questioned. It appears to be simply a matter Of becoming acclimated to the 54 temperature and takes only one or two weeks time. ,//Transportation Transfer of goods from.the storage room in the warehouse tO the various retail outlets is made with refrigerated trucks. The orders are pulled and made ready at night and then go out on the trucks in the morning along with the other larger ship- ments Of‘beef, veal and pork. Corrugated shipping containers are used and the refrig— eration from the product, instead Of'escaping, remains in the box and helps retain the low temperature, helping to re- frigerate itself. Although in this operation refrigerated trucks are used, they are not an.absolute necessity. As pre- viously explained in the section on temperature control, if the product comes from a 55 degree cooler is cut and pack- aged in 50 degree room and returned to a 35 degree storing room,; it will hold its refrigeration for hours. These re- frigerated trucks could be diSpensed with if finally deter- mined to be too expensive. Use of conventional non—refrig- erated trucks is being made by some plants at this very mom: ent for deliveries up to a distance of one hundred miles. Total Personnel Requirements The number of workers needed to man.equipment, scales and wrapping tables to insure Optimum production is sixty. 55 This number includes supervisory personnel. Exclusive of the nine men employed, who were mentioned previously, the remaining work force is made up entirely of women. The very nature of the work and the extreme digital dexterity required for wrapping and scaling appears to be the reason for this situation. Women have proven to be most suitable for this type of work. I’ll-1n] TLR V SLnLL CJITRALILmD OZIKATIONS The discussion, thus far, has covered the prepackaging of meat at the retail level and the Irepackaging of luncheon meats and Sausage products at a central location. The follow- ing discussion concerns two chain companies that have suc- cessfully prepackaged their entire meat requirements with a centrally located system. The first chain store company to be considered is Oper- ated by Mr. Richard Oppen Of’hinot, North Dakota. The com- pany is small and only handles a total weekly tonnage of 11,830 pounds Of meat. Average weekly meat sales amount to , . l pd,500. Two of the.stores in this chain of five, are located in the city Of’Linot, North Dakota and the other three are in surrounding rural areas. :he most distant one is seventy miles from Linot. all prepackaging takes place in the cen- tral warehouse located in Iinot prOper. The two stores in Linot receive meat shipments daily by non-refrigerated truck. Daily shipments are also made by raierad through nmerican Railway LXpress in refrigerated Cars tO the rural stones. Un- 1. John D. Lucas. "He Iackage Leat for self-Service for Five Stores in Our warehouse." The Frogressive Grocer (Larch 1948), p. 82. 57 sold.nerchandise that needs conditioning is returned to the warehouse in the same manner. To date, these returns have averaged 2 per cent Of weekly sales. Total weekly meat sales Of $6500 for the five units are broken down as follows: Store Yumber One, $2073; StoreiNumber Two, $1,800; Store Number Three, $1,000; Store Number Four @827 and Store Number Five, $800. In all, these stores meats account for 20 percent to 25 percent of metal store sales. Meats were not carried in Store Numbers Four and Five prior to the self-service neat venture. It requires only two men and eight women, who work a to- tglof 416 hours weekly to prepare all meat for the five stores. It is only a part-time job for a store employee to stock and keep diSplays neat at the retail level. Weekly sales per part time employee are calculated as @650. While this is per- haps excelled by many merchants with large volume meat depart- ments under one roof, the saving in labor in this particular case is substantial. With a small to medium amount of meat sales in the five stores, it would require at least ten high- salaried meat menu This would bring the labor expense alone up to from 10 to 15 percent Of meat sales in each meat depart- ment. In comparison labor eXpense is now only 6 percent Of total meat sales because of the centralized processing and packaging setup. A tonnage record of all merchandise shipped.to the five stores is kept in order to measure employee output. The re- 58 cord keeping is facilitated by charging the tonnage out to the stores at retail prices. Tonnage figures remain more constant than retail sales figures which can be easily dis- torted because Of retail price fluctuations. Therefore tonnage is a more exact criterion Of the two to use when measuring and comparing employee Output Of service and self service meat departments of today.2 Figure 10 gives a breakdown of the type of meat sold, pounds per week sold and percent of sales Of each classifi- cation. Type Of Meat Pounds Percent Per Week of Sales Beef 4850 41 Pork, fresh 1301 11 Veal 592 5 Lamb 237 .2 Poultry 828 7 Variety Meats 355 3 Smoked and Cured 2366 20 Meats . Manufactured Meats 1501 11 TOTAL 11,850 100 Figure 10. Meat Sales in Pounds 2. Lucas, ibid., p. 196. A percentage change in the types of meat sold as shown in Figure 10 will affect the output favorably or unfavorably. For example, it requires more hours to prepare and package beef and smoked meats. Therefore, the management is satis- fied that the employee output per hour of 28% pounds is good utilization of labor. Production techniques do not differ substantially from those practiced by any large volume retail store using self- service. When these techniques are applied to this parti- cular company, however, they assume special significance. Speed and organization are stressed. Whole carcasses are brought into the warehouse and kept.in the walk-in cooler until ready for processing. All preparations are made in a 25 by 20 foot room. Meat blocks and electric saw are so arranged that all personnel can work simultaneously on their specialties. Organization of duties eliminates waste and reduces shrinkage. meat shrinkage averages from 1 to 2 percent of sales. Fresh meats are processed and packaged after cooling. This reduCes the natural shrinkage from evaporation, drippings and moisture. The inevitable question about how less expensive and un- desirable forequarter cuts are to be merchandised has been answered and the problem solved by this chain. The harder working clientele of the rural stores prefer thriftier cuts 60 of meat, such as forequarter roasts, boiling meat and vari- ety meats. The more-in-demand cuts, such as steaks and ribs, sell best in the two Minot city stores. This equitable dis- tribution has meant less losses from items not in demand which frequently had to be sold at reduced prices. Thus, it is seen that merchandising of the supposedly less desirable forequarter cuts is not the problem so many operators pre- suppose. This holds true providing there is a divergence in the type of store within the chain and a difference in the location of the stores as far as income group areas are concerned. The usual success story accompanying the installation of self-service is apparent here. Customers expressed their approval to the extent that in three self-service meat de- partments sales increased immediately. Using the sales of the preceding month as a basis, sales increased 53 percent. The increase continued, in fact climbed slowly but steadily for the rest of the year, reaching 60 percent as an average for the year. This increase in sales is sound testimonial to the fact that customers were pleased.with this new opera- tion. There are two inferences here that should be taken into account. Firstly, the success of this venture has added an- other successful meat retailing business to our total econ- omy. Although quite small when compared with the gigantic sales figures issued forth by regional and national chains, 61 they are nevertheless significant when.regarded in terms of the small community in which the chain does business. While it is possible that this business might be conducted on a service, over-the-counter basis, the results show that it would not be as efficient or profitable. Fbr one thing, la- bor costs were prohibitive under the old type service opera- tion.' Centralization Of the Operation has indeed, enhanced “Vthe profitability and has made the full utilization Of floor space, labor and capitol more easily attainable. Secondly, peOple in the rural areas surrounding Minot and those living in Minot are being offered the opportunity of purchasing meat in a manner, previously impossible for them. Their apparent approval is expressed in the increase in meat sales. There has been a service rendered. The ad- vantages are chiefly more easily obtainable, wider variety and fresher'neat for the consumer and overall more profit- able business for the entrepreneur. A sub-marginal neat Op- eration has been converted to an.afficient and profitable enterprise. The Victory Chain To further broaden our sample Of centralized meat pre- packaging Operations, the Victory Chain Operating in and a- round Norwich, New York offers some fine examples Of how problems Of ordering production and shipping can be handled in a centralized meat prepackaging Operation.3 Mr. Charles A. Smith, Jr., Vice-President in charge Of‘the Central Meat Prepackaging Department states: “Our Operation is similar to any retail meat prepackaging Operation. Really, ordering, product- ion and shipping have been our outstanding problems. Getting the orders from the stores in on time so we can establish a production line schedule which will enable us to cut early enough in the day so our or- ders can be shipped back out to the stores without a large amount of overtime. Remember in the case Of prepackaged meats each item.onuthe.order is a small retail package, and when.each individual package must be billed it is a time consuming Operation. For example, three men working under pressure took eighty minutes tO put up a £350 order for a single store."4 Thus, we see that Mr. Smith's experiences have shown him that the real trials Of such.an Operation as his organi- zation conducts lie not in the packaging Of the nerchandise but rather in the swift and efficient delivery Of it to the outlets. A brief review Of the reason why the Victory Chain in- stalled central prepackaging should help to reveal how and why it has proven successful. many of the Victory stores are in the ”growing-up" stage, They are for the most part, small neighborhood markets which Offer the customer'some services. To hold their trade it was essential that some meat be stocked. 3. Charles A. Smith, Jr. "How we Package meats for Our Vic- tory Stores in Our Central lrepackaging Department." The Self-Service Grocer."(October 1950), p. 6. 4. Smith, ibid., p. 7. Befdre the installation of the prepackaging Operation meat was being Shipped to these stores unwrapped and layered between sheets of ordinary meat paper. Some of the markets were successful and had develOped enough meat volume with this system to warrant a full-time butcher and the Operation of a conventional meat market. Others handled varying quanti- ties of meat, but because of lack of volume or the inability to find a sufficiently capable man, they were not doing enough business to make them profitable. In any event, the handling of meat in this unwrapped fashion was a stOp-gap medium.at best. Thus, it was decided to experiment with a centralized meat pre- packaging department. .Seven representative stores were chosen. Some were located in a city area, others in small communities and still others in extreme rural areas. The volume in each of these stores was carefully analized and two community surveys of customers were conducted to ascertain the acceptability of prepackaged meats. The results showed that any change from.methods used in the past would.be a most welcome improvement. It also*was planned tO Open this department on the basis of a volume Of at least $5000 per week. The pioneer stores could not produce this volume so it was decided that cheese and frankfurters could also be packaged for other stores in the chain in orderto supplement the volume Of the pioneer stores. 64 The actual wrapping methods used by the Victory Chain are very similar to those explained elsewhere in this paper. The layout is equipped.with the usual buthher's aids in- cluding a power saw and gravity conveyor. Packaging is done by women employees, who use hand sealing irons. An auto- matic label printing machine is also used. This quickly prints labels to show the name Of an item.and the price per pound. All packaging tables are equipped.with.adjustable legs so they can be arranged at the prOper height for the women who do the prepackaging. After the merchandise leaves the wrappers a conveyor carries it to the cooler door Where it is placed in card- board'bomes. These measure 18 by 24 by 4% inches deep. The meats are arranged in three layers with a filler'be- tween each layer. After boxing the shipping carton is placed on designated shelves in the cooler. Two coolers are available, one for cheese and cold cuts which measures 6 by 8 feet and is equipped with a normal blower coil and kept at a temperature Of 40 degrees. The other cooler is for fresh.neats. It has a thermabank coil and is kept at 28 degrees. The shipping system is as follows: For the purposes Of standardization, Specific locations are used for vari- ous cuts of meats. There is a two-way communication sys- tem.between a duplicate type adding nachine immediately 65 outside the cooler. The men in the cooler fill the order as it is read tO them from outside by the adding-machine Opera- tor. For example, if she calls for twenty chuck roasts, the men inside choose at random twenty chuck roasts. As they place them in the container for shipment they read each in- dividual price back to the adding machine Operator and a total retail sum for the order is thus received. When the particular store order is completed, the order is totaled and the duplicate tape removed from the machine. One cOpy of the total order then goes to the billing depart- ment and the duplicate is stapled to the store order and goes out to the store with the merchandise when it is de- livered. To date, this is the fastest method that Victory has been able to devise for fresh meats. Cold cuts and cheese are handled in a different way. Standard size packages Of cold cuts and cheese are packed and can be billed according to a specific number Of units to a carton. For example, if a store orders thirty pounds Of sliced bologna, then they are shipped sixty units of one-half pOund packages of bOlOgna and billed for the same. Because of the standardization, the billing difficulties experienced with fresh meats are avoided. Deliveries to the stores are made three times a week in refrigerated trucks. In addition to the refrigeration supplied by the trucks, low temperature control is assured 66 in the following manner: When the order has been put up in a series of Cardboard boxes, each measuring 18 by 24 by 4 1/2 inches deep, four Of these boxes are placed in a packing case, the inside dimen- sions of which are 19 3/4 by 29 1/2 by 20 1/2 inches. This case is insulated on all four sides with one-half inch of celatex. This allows an area at the end Of the cardboard boxes inside the packing case which is 4 1/2 inches wide. Dry ice in a canvas bag is placed in this area to provide additional refrigeration. The only difficulty of this method noticed was a slight freezing condition on a very long delivery. This condition was corrected by covering the Open-handle holes in the cardboard boxes next to the dry ice. As previously mentioned several stores other than the original seven test stores had been allowed to order pre- packaged cold cuts, cheese, frankfurters and cuts Of some of the fresh meats such as cube steaks. This system did not work very smoothly, however. in analysis Of the delivery schedules revealed that 81 deliveries contributed to 40 per- cent Of this meat business and thirty deliveries accounted for 60 percent Of the business. This arrangement resulted in some very disappointing cost figures. The cost figures were as follows prior to any changes: Labor cost in relation to total sales was 8.9 percent. Cost 67 of supplies tO total sales averaged 3.9 percent. Percent of loss which included markdowns, Spoilage et cetera amounted to 3.2 percent. Total cost was determined to be 16.97 percent Of total sales and labor cost per pound Of meat handled was 4.1 cents. The Operation at this point was not profitable. Shipping schedules were revised so that prepackaged meat was shipped to only 16 stores. These stores received complete lines Of merchandise. The orders were telephoned in early Monday morning and on Tuesday and Thursday after- noons before 5 O'clock. Deliveries were made two or three times a week depending on the volume Of a particular store or the distance it was located from the warehouse. Frankfurters, cold cuts and cheese are still shipped to a large number Of small stores that Offer only these articles on a self-service basis. These orders are billed on Tuesdays, Thursdays and Saturdays and continue to be a cumbersome procedure despite the before—mentioned change in billing. The individual orders are so small and the time required to assemble them is so great that the over-all Operation is not as profitable as mightbe desired. The con- tinued delivery of these products to the small stores is based on the premise that they do increase total sales in the stores. That is, they are being offered as a Special feature in an effort to increase the agvregate grocery and produce sales in the stores that are being serviced. The adOption of a labor saving packaging machine is planned and should reduce 68 labor costs to the 1. Din: uh re the operation mill shorw' ;; rt:- Jr. Jnitn believes that his coupany has IrOfressed with the centralized prepackaging operation to the point there it can be considered successful. Lerchandise is being shippe seventy-five to one hundred miles on refrigerated trucks with- out excesrive loss fr a spoilage. The records from one store show that p5,376.o9 worth of meat merchandise received resulted in only a QEC loss from sheilag°. The OVerall figure on Spoila e, retraps and hark-downs has been 3.2 percent. This high percentage of loss Can be contributed to two factor3. Firstly, there pas nted for a great deal of ex;erixentation before the proper texperature for display Cases, and the ir“3er a cunt of Lerchandiee for a r, display in the Cases could be determined. Secondly, store L_Jo managers were given too much latitude in their order.ng of H. fresh meat. A correction of this laxity resulted n lower spoilers figure. - p I Jr. Jmith also warns about the continual battle that must be we ed to keep stocks in belancg. Certgil cuts of F6 J33t: notably those fTOfi the hiHQQUorter, move nor: rapidly than others. In a central prepaccaging Operation the situ- «7+ :3" 0) store involved causes H- * ‘3 Ho (I) {I 0 (1x 0 (L' C U: C 0‘ [p O LY ation is nagn problem to be zulti lied. The backlog of poor cuts is larg- er than normal. 69 This problem has been solved in two ways. triu.ings from the prepackaginf department are 1"; ll EXCESS noved into the 0001“? fihvru they are around my es hanburgcr. w) J..-) etween four thouSand and five thOUSLnU pounds of hanburger are made each week, and the Sale of this hamburger has aided the task of keeping stocks in balance. secondly, *4. n sojervi- sor is constantly visiting the retail stores, and he im e- diately returns any convertible merchandise to the h emburger department. TLiS measure also helps to alleviate the problem. any price changes that must be unde on-merchandise al- ready in the stores is none nith Special stick rs for this purpose. The new price is placed on this which can be sealed on the outside of the old price lable. ho rewrapping is he ded m price Change Signs pasted in the store inform the Shall sticker, in order to make custo: ., Li) 1" V .1. J S that they can have any special cut of m;at desired on 24 hours notice. Special orders, however, have been linited in L/ number. Rhile there are still many problems to be overcom the Victory Chain apparently has made centralized prepack- aging york successfully. As a direct result of chanfes made in packaging, ordering, shipping and other functions m a more favorable cost picture is disc rnable. Labor cost in relation to total sales was reduced from 8.9 percent to 6.6 l,ercent° cost of supplies to total sales was lowered 70 from 3.9 percent to 1.4 percent; percentage of loss from markdowns, spoilage et cetera drOpped from 3.2 percent to 2.2 percent and labor cost was reduced from 4.1 cents to 3.3 cents. Gross profit on merchandise shipped was calcu- lated at 22.5 percent after the change over. exertion of close controls over methods used at the point of Shipment, and in the stores in regard to returned merchandise appear to have solved the Victory Chain's cen- tralized prepackaged meat Operation problems. CHaPTLR VI THJJ’.‘ ROLE} OF THu. RiCKhZR The number of meat packers engaged in processing meat for distribution to retailers is so large and the Various operations they perform are so complex that an exact asser- tion about what the packers are accomplishing in the pre- packaged field is a decided impossibility, in a study of this type. Therefore, it seems advisable to consider the experi- ences or endeavors of a selected number of packers, who have actively participated in prepackaging. In this way the writer hepes to focus attention on specific Operations that have proved to be successful. This method will also re- veal some of the techniques and methods used by these packers and processors. Four companies have been chosen as a Sample. armour and Company, enjoying national distribution of its products will be considered first. The following quotation from a speech to a retail food dealers convention by Mr. W. 3. Shafer, Vice-President and Sales kanager of Armour and Company sums up the general attitude of the Armour Company toward self-service prepackaging: "we are Open-minded, and we intend to continue to eXplore the possibilities of all our products which may conceivably lend themselves to self-service. 72 There is always the possibility that some new tech- nical development or discovery will make it possible at some time in the future for packers like ourselves to deve10p new items as we go along. We in Armour and Company, are fully cognizant of the trend toward self-service meats, and we are making every effort to keep pace with the parade."1 Armour and Company has already marketed a substantial number of packaged products that have gained widespread re- cognition. For example, the company distributes in packaged form in either one pound or one-half pound units the follow- -ing articles: frankfurters, smoked pork sausage lings, fresh pork sausage links and fresh pork sausage rolls. In addition, three types of packaged bacon in one-half pound and one pound units are offered. The first is a vac- uum packed package. This package holds the original flavor and appearance of the bacon from the time it is packed to the time it reaches the ultimate consumer. Discoloration is negligible. The second type is ideally suited for self-ser- vice. It is packaged in celloPhane with a cardboard backing and it has a maximum of transparency. Finally, they offer a standard celloPhane package which many retailers have been selling satisfactorily through self-service cases for many years. l. W. S. Sharer, "Prepackaged Self-Service meats," An unpub- lished speech delivered to a meeting of retail food dealers. may, 1948, p. 36. Also packaged in visible wrapping or casing are: pork butts, beef tongue, smoked pork shoulder picnics and pork jowl bacon. Sausage and tubeéhaped items also have been packaged in consumer size units for self-service. They include: ring bologna, cervelat, chili con carne, sliced dried beef, cooked salami, thuringer, bologna and braunschweiger. Recently, Armour and Company embarked on a sliced lun- cheon meat project. While this Operation is still in the pre- liminary stages, and many problems have been encountered re- garding the type of package to be used and maintenance of the quality of the meat, the endeavor is proving to be successful. The foregoing, inumerated items are some of the prod- ucts that.Armour and Company has been able to make avail- able in packaged form to the retailer. As more is made known about other products that may conceivably lend them- selves to self-service, they will undoubtedly be incorpor- ated into Armour's line of self-service merchandise. So far as fresh red meats such as steaks, ChOpS and roasts are concerned, it does not appear as though these products will be prepackaged for self-service. mr. Shafer states the attitude of Armour and Company about fresh red meats in the following quotation: "This does not mean that we will never be able to prepackage these items. But, from what we know 74 at the present time it is doubtful that we can ever think seriously of prepackaging these items for self-service for a long time to come."2 OSCAR LMYER AND COMPANY The second packing company to be considered is Oscar Mayer and Company of Madison, Wisconsin, The Oscar Mayer Company is somewhat smaller than Armour and Company, but no less progressive, particularly in develOping packaged sau- sage products for self-service. They have approached the problem by attempting to de- vise packages that eliminate shrinkage and discoloration, that give reasonably long shelf-life and that can be delivered ready labeled with fixed weights. By way of eXplanation it should be said that Oscar mayer and Company has specialized in sausage products and owns and Operates slaughtering houses primarily to control raw materials for their sausage operations. To them fresh meat is a by-product and there is serious doubt if they will be concerned with self-service packaging of fresh meats for several years, if at all. This company has two types of self-service production Operations at the present time. In their Chicago plant they are slicing and packaging thirty items in pliofilm and de- 2. Shafer, ibid., p. 36. 75 livering these products in the metropolitan area of Chicago only. The products range all the way from one pound and one-half pound weiners and one pound and one-half pound sliced bacon to six ounce boiled ham, six ounce Canadian bacon and seven ounce sliced bologna. This Operation is very comparable to any good chain store central kitchen Operation except that the product is delivered and sold under the Oscar mayer label rather than the chain store’s label.3 In madison, Wisconsin, they have concentrated on the develOpment of vacuum packages both for sliced loaf goods and for products sold in tubes such as four, eight and 13 ounce sticks Of liver sausage; sandwich spread, which is fundamentally a potted meat in a tube instead Of a can; seven, nine and 13 ounce vacuum sliced packs of bologna and various sizes of other products such as cotto salami and Olive loaf. Properly refrigerated tranSportation facilities allow for almost complete nationwide distribution on a sizable number of these products. Mr. Bruce Ashby, manager of the Self-Service and Shelf Canned Meat Divisions of Oscar Kayer and Company, has stated in a recent letter to this writer: 3. Central kitchen in this instance refers to a centralized Operation. 76 "Generally Speaking, both the trade and we be- lieve that sliced packages and specialty products such as sandwich Spreads should be put out in Odd ounce packages rather than in one-quarter pound or one-half pound or similar units that tend to place a product "on center." Our experience indicates that faster moving products such as bologna, cotto salami and olive loaf may be packaged in larger units than the more costly and/or slower moving pro- ducts such as Canadian bacon, boiled ham, luxury loaf and others. If we are right, then substantial economies can be made in packaging these faster mov- ing items resulting in lower prices, higher margins or both." This interesting commentary by a very well qualified Specialist helps illustrate the extensive planning and pre- paration that Oscar hayer has resorted to in an effort to keep abreast of self-service merchandising. While these ideas reveal nothing that progressive retailers have not known for some time, they do set forth the cooperative atti- tude between the packer and the retailer which can and many times does exist. Mr..Ashby also believes that packers' prepackaged sausage items will gain general distribution and acceptance much faster than packers' fresh meat items. In addition to the Spoilage factor he points out that the very nature of fresh meats creates more varied consumer preferences. Also . 4 there is more reason for catch weights on fresh meat items. 4. Catch weights are determined by the size of the unit weighed. That is no attempt is made to predetermine any given weight. This is particularly true of fresh meat pro- ducts such as beef, the cuts of which cannot be standardized. 77 These two factors, he believes, can best be handled by the re- tailer at the point of sale. Catch-weights and individual customer preferences present no real problem to the retailer. The packer would find these almost insurmountable obstacles. THE GLnNOhlE IROVIiION COXTiNY Some small local and regional packing campanies have been_guick to seize upon the Opportunities offered by self- service. The Glendale lrovision Company of Detroit, Fichigan, is among this group.5 Officials of the Glendale Company firmly ignored the reluctance on the part of some packers to invest in the nec- essary equipment and machinery necessary to bring a self-ser- vice unit package to the consuming public. The Officials also have ignored the tendency on the part of some packers to watch and wait until some of the technical difficulties have been worked out of self-service by retail chains and large supermarkets.6 The Glendale Company management feels certain that the present trend in the direction of self-service meat merchan- 5. hnon., "Packaging Streamlined," teat lasazine, June, 6. ibid., p. 20 78 dising is here to stav. They also feel certain that the in- U P. creasing popularity of consumer unit packages 5 based upon a real need anong consumers for branded, packaged proeucts, which are convenient to buy, handle and use, and which are suited by ruantity and unality to individual fELily require- ments. The following _uotation helps to emphasize another sig- nificant reason thy the Glendale management decided to pro— duce CODS‘ucr size units for self-service: "... is also convinced that this tr» aging is prfiperly the function of the 1 cessor rather than the retailer, and is n s tageous to all concerned when engaged in at the highest distributive level. The processor has the necessary Operating know-ho“, space and facilities and he is in a better position to cope with the many technical problems and details envolved. Then, too, in a manufacturing plant volume procuction methods can be employed to turn out a better fiual- ity product at a lower cost to the ultinate consume ." The first prOduct to be packaged by the Glenrale Com- pany was frankfurters. Requests from customers were so great, however, that it was decided to include the pre- packaging Of their entire line of products. This included 19 of the full line of 23.sausa:e and processe‘ meat items produced at the Glendale plant in Detroit. 7. ibid., I'o 210 79 Ehny proolems tare anticipated in both packaging and handling of the finis 113 a product. Powever, experience rained .\ (I from packaging and handling the frankfurte: line greatly aided their endeavors. The ri ’ in 1 plant 1; y—out Called for some manual hanCling of the products. This was necessary in order to allow a certain amount of flexibility in case of Q: subs e-uent cha nges in machinery or equilment. It has assu- tr -at future changes would be ma Ce in 0rd: r to increase efficiency. Iaoliaging volume is closely controlled and averages 10 percent of the weekly 100,000 pound output of the Glendale plant. aquipment incluCes two OOntinuous, autom1tically-fed U. 3. slicing machines; an Oliver autom;tic packaging mach- ine, check scales; stacking trays and pork tables. The packagino room is unCer refrig_ eration and is held at a 50 to 55 degree temperature. This tetpeyature is maintained by the use of air conditioning unit. The packaging .at1ials for each day's Operation are brought in from the storage department and stacked near the scaling table withing ea sy re each of the check-weighers and packers. These materials consist of fairly hiavy board backing for the sliced sausage products, treated cellOphane iz es of cardboard U) overwrapping and heat seal labels. Three 80 backing are used to conform to the Cimensions of the sliced products. This also provides standardization in the size of the packages. One yorker operates both of the slicers, which are each capable of handling two luncheon meat loaves or three sausage lOaVes simultaneously, at a slicing rate of from 48 to 50 per minute. The machines acconodate products up to 24 inches in length without resetting of the feed mechanism. The slices of meat are automatically collected and stacked on a synchro- nized receiving tray on the slicer, which moves slonly down- ward until filled. when the tray is filled the slices are removed by the Operator and placed on an adjoining table where they are ac- cessible to four check-weighers. These oyerators remove the slices of meat from the stacks as they are needed and weigh them in one-half pound units. Standard under-over scales, counterbalanced for tare of the cardboard backing are used. The weighed, one-half pound units are then placed on trays. Jhen enough have accumulated on several trays, they are moved near the conveyor feed of the wrapping machine. Part of the weighing crew also moves to the wrapping machine to assist in loading and unloading activities. The machine automatically turns up the protective edges of the cardboard backing, puts on the cellophane overwrap and 81 attaches a label bearing the name of the product, net weight, price per pound and total price. The machine wraps, seals and labels approximately 15 pounds or thirty one-half pound packages per minute. The indelible stamping attachment can be adjusted to imprint various product names, poundage and price. Once wrapped, the individual units are bulk-packed in 12 pound cartons for delivery to the loading dock and ship- ment to the retailer. Deliveries are made daily and an effort is made to route the packaged shipments along with the regular bulk products in order to reduce transportation costs. Deliveries are made in refrigerated trucks. The temp- erature in the trucks is kept constantly at 50 to 55 degrees during shipment. Since this is the same temperature main- tained in the packaging room, the products are not subjected to sudden changes in temperature that would prove harmful to quality and appearance. As an added precaution, germicidal ray lamps are kept in operation at all times during the work day. One of these lamps is located just above the receiving tray of each of the slicers. One is above the scaling table and a fourth lamp is above the work table where one-quarter and one-half pound pieces of salami, thuringer, bologna and other products are hand-wrapped in cellophane. The wrapping machine is also used in wrapping small con- sumer packages containing weiners. It is easily adjusted for the different size needed for this product. The Glendale Company officials are enthusiastic over the success and potential of their packaging setup. The products have been well received by retailers and consumers in the Greater Detroit area in which they are distributed. Through mechanization of the slicing and wrapping Operations, the company has been able to realize a reasonable profit on the packaged products without exacting a prohibitive premium from the retailer and the consumer.8 THE GRAND TaSTfi PACKING COMPANY The Grand Taste Packing Company, a subsidiary of Rancho Granada Company of Los Angeles, California, has utilized a new flexible packaging machine. Seven varieties of luncheon meats are packaged with this machine, which can pull a vacuum, heat seal and deliver thirty halfjnund ce110phane pouches a minute.9 This successful Operation actually begins with the pro- cessing of luncheon meats, however. A new mold was devised a. ibid., p. 23. 9. .Anon., "New Machine Aids Self-Service Packaging," National Provisioner, May 13, 1950. p. 20. 83 and used in attaining exact uniformity in each and every loaf Of luncheon meat produced. Without such uniformity the en- tire process would be jeopardized.10 0n the packaging line, two 12 pound luncheon loaves are fed simultaneously into two slicing machines. One girl tends both machines. ‘Modification of standard slicing units has increased their output from one hundred, one ounce slices to one hundred and twenty slices per minute per machine. Because [the luncheon meat loaves are highly uniform, only occasional check-weighing is necessary after slicing. The compact flex- ible packaging line, which requires but one hundred and eighty square feet begins with the modified slicing machines placed side by side. Each machine is capable of handling the 12 pound, 4 by 4 by 24 inch luncheon loaves. Two stacks of eight, one ounce slices come Off the first unit. These slices are automatically stacked for insertion into the pouches by an intermittent conveyor, synchronized in- to motion by the slicing machines and geared to deliver one- half pound stacks to the package line. Stacked meat moves down the conveyor to four staggered mandrels--two on either side Of the line. Thus, four packages can be filled almost simultaneously. One girl Operates on both sides of the line fitting the cellOphane and pliofilm pouches over the mandrels. 10. ibid., p. 20. 84 She then activates a packaging device, which pushes a stack of meat into the pouch. Pouches then fall from the mandrels on to another conveyor which runs between the two packaging lines. This conveyor is continuous and Carries the pouches to the rotary vacuum heat sealing unit. Here, another girl feeds pouches into one Of eight va- cuum chambers arranged around the perimeter of the revolving vacuum machine. The machine pulls a maximum.vacuum on sixty packages per minute. The portion carrying the eight vacuum I chambers makes one revolution every eight seconds. The machine, within limits, can easily be converted to handle packages Of many sized and varied dimensions. Modi- fication Of detachable chambers is an ineXpensive job. The electric heat sealing device built into each chamber is a simple plug-in type. The Granada Company has designed the chambers to handle flexible vacuum packages of up to four pounds in a variety of shapes. The pilot model now in almost continuous Operation has been turning out one-half pound sizes only, but has been successfully tested to the maximum size. Sealed packages are ejected from the machine after the cOmplete revolution. They are then inspected, boxed and moved by conveyor to cold rooms. One Of the factors which has kept many packers from 85 prepackaging luncheon meats is the relatively short life of the product. The Granada pouch is cellophane laminated to pliofilm. Use of the vacuum machine results in a minimum of three weeks package life. This is about seven times longer than the shelf life obtained in non-vacuum wrapped cellophane. This added package longevity reduces Spoilage and discolora- tion immensely. The Grand Taste Packing Company claims that the new ma- chine reduces labor costs. A five-girl production line with the aid of the vacuum, heat sealing machine has produced as much as six thousand pounds of assorted luncheon meats during an eight-hour working period. Addition to the line of a new slicing machine which is still in the development stages is expected to increase production to ten thousand pounds per day. The chief feature or improvement in the Grand Taste Com- pany Operation is the elimination Of the weighing function. As has been seen, the uniformity of the luncheon meat loaves provides enough weight accuracy so that only intermittent weight checking is necessary. In the other Operations, it was seen that a major portion of the labor cost was due to the need Of weighing each indi- vidual unit. The Grand Taste Company system eliminates this weighing function and consequently achieves a substantial saving in labor. 86 The four packing companies mentioned have made noteworthy contributions to the prepackaging field. Machines such as that used by The Grand Taste Packing Company will also play a large part in furthering the cause. While all the activity cited in this chapter has been confined to prepackaging cold luncheon meats and prepared sausage items, only the future shall reveal the extent to which fresh meat will be prepackaged by the packers. New innovations and machinery as well as new ideas and attitudes will undoubted- ly prevail to change existent Opinions within the industry. New technological improvements designed to reduce perishabil- ity and Spoilage will lend greatly to the progress already made. CHATTER VII CONCLUS 0* From a relatively humble inception in the pre-World War II years, the self-service method Of merchandising meat has develOped into an integral part of the retail food business. The reasons for this growth are manifold. One of the most important reasons is the desire on the part of many Op- erators tO eliminate the traditional congestion experienced at meat counters during heavy week-end business. The con- ventionally-styled, service neat department has long been the main source of traffic congestion which arouses the ire of good customers. Self-service neat helps to eliminate this congestion and places the neat department on an equal basis with the remainder of the store. Assuming a broader point Of view, self-service meat will reduce the amount of investment the economy as a whole must make in food Stores. This is true since self-service meat de- partments are capable of handling greater capacity than ser- vice departments. This saving also applies to the labor force that must be employed. Specialization on different tasks makes it possible to enploy fewer skilled personnel in any given Op- eratiOn. Specialization provides the Skilled man a means Of serving more customers with less work. There is less duplic- ation of lifting, rearranging and walking to the various sect- 88 ions of the department. The skilled man can concentrate his knowledge and skill on the function of meat cutting for which his training best fits him. Jhen a customer lingers at a self-service meat diSplay case, it is her own time fliat she is utilizing, not the valu- able time of a highly paid and skilled employee. The question of where meat should be prepackaged, in a central plant or in the individual retail stores has been debated at great length by Operators seeking the most effi- cient system. It appears that the answer can best be resolved, not by making sweeping generalizations about all meat products, but by segregating and classifying these products into two categories. These divisions are the highly perishable red meat items such as beef, veal and lamb and the less perishable but eouallv ihtortant luncheon meats sausage :rolucts and ., J 9 e .L cured meats. The latter items will remain in good condition for a longer tire in packaged form than the fresh meats. For this reason they can be stored at a central later to the retail stores with less loss from Spoilers. Jith this division as a basis of comparison, forthright statements about where meat should he prepackaged assume more feasibility. A central prepackaging plant for luncheon meats, sausage procucts and cured meats appears to have several advantages 89 when utilized by a chain COmEEUy Operating a large nu her of high volume stores in a metropolitan area. The increased SLCed and efficiency which is attained in a c:ntr; l yllnt ’4. Oil and pack- {.1} by the use of encless belts and autu atic s aging e1uilrent results in a lower packaging cost per unit of merchandise. 1—1 Duplicatisn of egumeent is eli inated. n a central CD plant eauL 1e1t is working all of the time. ”fierecs in store level oLera tion, assugin: a cl aLn of one lungred stores, it is necessary to h;ve O;e hundred gieces of each type of equipment required. lone of these are Operated on a full- .61 t e buSlS. The intensive utilization oi f“). equipment reduces the amount of capital investment needed. a central plant does a great deal to alleviate the con- CL) . gas tion and crowding in the individual store fresh meat pack- aging room. This aids in increasing the efficie;cy of the employees working in the store. A uniform pacxgge is ;tt;ined sLlie the same workers are performing the Same job on a regular basis, and soon be- d tion, g1. O. . In a U) cone eff ' 018 nt in t e handling of the pr:”1ct inventory problems with.the se proéuc cts in each store are re- due d The store managers merely submit an order covering weekly or semi-weekly requirements. The control of this or- dering ;en be very ri gidlye exerted at the centr.al plent. sh meats receuse of their Eighly perisha.le nature 90 appear to lend ttegselves best to yxeyackaginfi at the re- tail level. There is a better ogtortunity to csntrol qual- ity and freshness. Fresh neat Can be processed and dis- tlayed as it is needed and stoilnee control is much easier. This is true in Cases where the heat volune of t}e individ- ual store is large enough to allow die use of production line On the other hand, the we oéerations with small volume meat herhets described in Chapter V beCause of peculiar cir- cuustances adepted a central packaging plant. The Shell vol- ume of meat busiiess done in each stone made it impractical to emyloy high-salaried meat cutters. Therefore, by con— certrsting the CUttiUg functions at a central plant and then delivering the finished product to the stores where it could be displayed by unskilled help a more economical oneretion was achieved. Undoubtedly packaging material will be develOped in the future that will retain the arrearance and Quality of fresh meat for extended periods. If such a material is develOped, it may be more advantageous to grepechage fresh meats cent- rally. :owever, until such a miterial is uncovered and placed rears to be substantial indiCation that J.’ on the market there a; UGSt {regacgaaing Of fresh ficat will be done at the retail level. 91 The muat packing industry has devoted a creat 6951 Of tine and resources to experi;entetion and with the actual Lachagirg of the less Ierishable seat products. Tpis pro- Pd gress will continue and increase as more becomes known a- bout the hnny techniCal difficulties encountered in their prepacnaging endeavors. By and large.tne packers do not feel diSposed to pre- pacnaging fresh meets at t'is time. They feel that this is a function that Can still be lerforged better at hie retail level. In one final analysis the future of przpachhged sect, whether it is prepared ;t tie retail level or centrally rests to a great extent in the h his of th: censumiig ;utl;c. To date, acc~ztanoo by th; publi: has been GLZLuraaing. letail- ers have responded to this acceptance by offering more and vaiied meat products via self-service. The ballots cast by the consuming public in the ferm of cash register receipts will ulti ately decide the issue. If public acceptance con- tinues at the rapid pace it has maintained in the post—war years, then the case for centralization will be strengthened. On the contrary, if unforseeable circumstances, such as a cur- tailment of haterials and equipment caused-by the Korean crisis, intervene to disrupt the progress already made, there will undoubtedly be a general retrenching program installed in the prepackaging field. Existent facilities will have to be utilized with emphasis placed on improving methods already in use. BIBLIOGRaPHY Books Dipman, C. W., Mueller, R. N. and Head, R. E. (Editors). Self-Service Food Stores. New York: The lrogressive Grocer, 1946. 299 pp. Sayres, laul. (Editor). Food Marketing. New York: Mc- Graw-Rill Book Company, Inc., 1950. 535 pp. leriodicals Allen, helson. Color Changes in Fresh Meat. Pre-Eak—sgp. ’/ 2 (November 1948), pp. 22-24. , / anonymous. Best Solution we've Found for Discoloration w lroblem. Meat Herchandisiqg. 26 (December 1950). Anonymous. Central Operation for Four S. W. Kagan Karkets. lre-Pak-age. 2 (May 1949), pp. 12-13. Anonymous. Is the heat Industry on;the Threshold of A,har- keting Revolution? Sales hhnagement. 62 (January 15, 1949), p. 37. V7 nnonymous. Labels Cure lrepackaged heat Ills. Su r Market Merchandising. (December 1950}, Reprinted Artie e, I pp. Anonymous. Precision lackaging. The National Trovisioner 29 (December 16, 1950) pp. 16-19 passim. anonymous. irepackaging streamlined. heat Kagazine. (June 1949), 4-pp. “anonymous. Prepackaged Cut heateria. The National Irovision- 2;. 119 (August 21, 1948), p. 34. Anonymous, self-service Record Keeping aided by New Karking hachine. teat herchandising. 27 (Karch 1951), pp. 32-55. Curtis, Glenn R. Advantages and Disadvantages of lliofilm for ireyackaged heat. The Self-service Grocer. ll (Sept- ember 1950), pp. 21 passim. Dickie, Jack W. The 1ersonnel Factor. lre-lak-nee. 2 (Oct- ober 1948) p. 24. 93 Dipman, Carl and LUJgi, Lean D. is; the for self-Jervice. The iroirb-sive Hrocer. pp. 2—45 passim. 'xperts 'rap Keats (December 1949), Lucas, J. D. self-service firings Kev Highs in heat Retailing nfficiency. The lrocressive Grocer. 29 (November 1950), pp. 50-55. Lucas, John D. Je lackage heat for Self—Jervice for Five Stores in Our Jarehouse. The lrogr ssive 1r oer. (Larch 1948), pp. 82—85 passim. Jchrffer, Henry. Centralized Feat lrepackaginq. Chain Stone :53. Reprinted Article, 5 pp, Johaffer, fialter. analysis of Trends i Sale of‘Jome Feat lroduets. (The Latién (October 2, 1948), pp. 130-142. "n Connection fith the el Irovisioner.)ll9 Smith, Chas. n., Jr. How ,e lackage T ntores in Cur Central Irepackafinq L ats for Our Victory Service Grocer. 11 (October 1950), (lp. 6-9 paSSim. ‘wrt'en . (NEE self- Juper harhet Institute. 10m to ;;rch noise and Operate For 1 lrofit. lroceedinés 1f tqe Emelfth annual Convention sugarjfarhet jnstitute. Chicago: (Lay 8- 2, 1949), 119 PPo A Tietelnan, jam. Sel -5ervice heats. The National Zravisioner. 120 (ray 14, 19493, p. 56. Manuscripts Armour and Company. heat Retailing in 1950. Chicago: -rmour and Company, 1950. 5] pp. Armour and Company. Technical Asiects of Jelf-Service Keats. Chicago: lrmour and Company, 1950. 41 pp. 5. I. Dupont De Nemours and Co., (Inc.) Pros and Cons ofwfna- packaged.Meat. Wilmington: E. i. Durant De Neuours and Co. ‘Tinc.), 1950. 15 pp. Self Service teats Pro- “. . u ont de Numonrs and Co. (Inc.). A I D P Wilmington: 1945 grass Report 22.§ Promising New DevelOpment. 45 pp. Lapides, Ezra. How to Nininize Packaging Shortages 1% Self- PP- Service Meats. fiiIIer and NilIEr, Inc., htlanta. Lapides, Ezra. Suggest Meat Case Lay-out for Self-Service heat Cases. hiheograpedjmanuscript. *E'pp. 94: Lapides, Ezra. Technical ASpeCtS of the Central Plant for Cold.Neats and‘Cheese. _Riller and-Eiiler, Inc., atlafita. 8 pp. Shafer, W. S. Frepackaging Self—Service heats. Chicago: armour and Company. 1946,1363 pp. Super Market Institute. The Super Market Industry‘s leaks. New York: Super Market Institute, 1955. 31 pp. Swift and Company. Prepackagipg Fresh Neat. Chicago: Swift and Company 1950. 12 pp. SylVania Division american Viscose Corporation. Packaging Meats for Self-Service. mimeograped Manuscript, pp. U. S. Department of Agriculture. Retailing Prepackaged Meats, Washington: Government Printing Office, 1949. 28 pp. .l‘l‘)‘ ? I! (I‘ll... "”- ’- " Ilov 10599594. "SE 0"” 05‘ '6 'fl W M11055 -0m.15 Eb Ihu 4 2”! #1837 Aor 28 58' .3139 51 Jun 30 '58 (‘i‘ug 7' 'SR‘ d O “. 69 13w n. OW "I7'13(’WMWTIWTITTTI?“