This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Omaha Steaks: Carving Out a 21st Century Sales Model

"Our mission is to bring exceptional experiences to bring people together. And we view our primary competitor as any other kind of family gathering around food," primarily restaurants, he says.

Omaha Steaks is in a tight-knit group of family-owned, direct-to-consumer steak companies including Allen Brothers, a Chicago-based family business and Kansas City Steak Company.

Gary Karp, executive vice president at consulting company Technomic, says Omaha Steaks attracts upscale consumers who are looking for more premium cuts.

"In general, consumers are looking at lots of different places. They're shopping at more locations, they're comparing prices, but there is that tier of shopper that wants premium and that's where Omaha Steaks seems to live and do well," he says.

Even if the company doesn't view itself as a grocer, Omaha Steaks' eager adaption to tech trends adds to the company's competitive advantage against grocery stores, discount bulk retailers like Costco (COST) and Wal-Mart Stores (WMT) and restaurants.

Omaha Steaks' busiest state for sales is New York.

"Many specialty food companies sell online as an adjunct to their wholesale business. Others, such as Omaha Steaks, have built their business model on direct-to-consumer sales," says Ron Tanner, vice president of communications at the National Association for Specialty Food Trade. "About 10% of specialty food consumers buy food online. They appreciate the opportunity to discover products which are not available in their geographic area."

Not just steak

Steak isn't all the company sells among its 400 premium products.

Particularly in today's health-conscious times, consumers are seeking not only "locally-sourced" products but leaner cuts of beef and other protein-filled alternatives.

The company answers that demand by offering gourmet chicken and pork. Omaha Steaks is also the largest direct-to-consumer seller of seafood, according to Simon. The company recently rebranded the product line to World Port Seafood in order to expand its distribution and appeal to customers who might not know that Omaha Steaks sells seafood.

"We haven't seen sales suffer because we've been able to answer that need," Simon says.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs