This Day On The Street
Continue to site
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

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 - Get Report) and Wal-Mart Stores (WMT - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COST $147.02 2.10%
WMT $66.90 -0.15%
YHOO $27.05 -3.29%
AAPL $95.01 1.05%
FB $99.75 -4.15%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs