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990826 Kosher Foods Producers Expanding

August 14, 1999

Mifflintown, PA - Nestled in the middle of farm country, this community is on the front lines of the battle for the stomachs of meat-eaters everywhere.

It is here where Empire Kosher Poultry Inc., the nation's largest processor of kosher poultry products is gearing up to take advantage of the growing interest among non-Jews in kosher food.

“Our research focus groups show that a wide variety of people are very receptive to the notion of eating kosher,” said Michael Strear, Empire's president and chief executive.

Sales figures prove the kosher cravings are serious business.

Americans bought $45 billion worth of kosher products -- including snacks, soft drinks and even beer -- last year, up nearly 29% from $35 billion in 1996, according to Integrated Marketing Communications, a New York City marketing company that specializes in kosher food. In 2000, sales will grow to $55 billion, IMC projects.

But kosher foods are still a relatively small part of the total market. Empire has about 60% of the kosher poultry market, but that represents less than 1% of all poultry sales.

The laws of kosher, spelled out in Leviticus in the Bible, specify how animals must be killed and prepared for consumption. All Orthodox and some Conservative and Reform Jews follow these laws.

For meat to be kosher, animals cannot be stunned before they are slaughtered and the slaughtering must be done by a rabbi. After the animal is killed, it must be soaked in salt for an hour to remove all the blood and then washed in cold water.

Empire, which processes 120,000 chickens and 15,000 turkeys on an average day, employs 80 Orthodox rabbis who work at various stages of the production process.

They ride buses from Baltimore, New York City and Philadelphia every Sunday and stay in dormitories on the premises through Thursday nights. The plant is closed during the Jewish Sabbath, which runs from sundown Friday to sundown Saturday.

The rabbis not only slaughter the birds but inspect them. Often, they reject animals that have passed inspection by the U.S. Department of Agriculture.

Just off the factory floor is a prayer room.

Companies like Empire stress that the kosher process is backed by more than 3,000 years of religious tradition. But they believe they have saturated the market among Jews and see potential for increased sales among Muslims, Seventh- day Adventists, vegetarians and consumers interested in healthier foods.

Empire just started a national advertising campaign.

“We are trying to remain a kosher company and cross over to markets where religion is not a factor,” Strear said.

Recent data shows that a wide range of consumers could be receptive to the pitch.

Jews make up just 20% of the 10-million-buyer kosher market, according to IMC. Muslims and other religions with dietary restrictions make up 30%. Vegetarian and lactose intolerant make up 25%, and the other 25% are people who prefer kosher products because they may be healthier.

Manufacturers of kosher foods have long used the health factor as a selling point. But Joe Reganstein, a professor of food science at Cornell University, said the health value may be over-hyped.

“There is a perception that kosher means cleaner and healthier. In actuality, the way most people define those words it's a lawyerly argument and distinction,” he said. “There is a bit of mythology and a bit of reality.”

Leigh Platte, the senior marketing manager of New York City-based National Foods, which manufactures Hebrew National products -- mostly hot dogs and delicatessen foods, said the company capitalizes on the quality issue even though many consumers do not know exactly what kosher means.

“We want to educate people that kosher is better quality. Nobody is interested in the details,” he said.

Hebrew National, which three years ago expanded its distribution beyond its traditional markets, launched its first national advertising campaign in May and is pursuing other ways to expand its market share.

Platte said the company is in discussions with a fast-food restaurant company, which he would not name, about the possibility of their opening an all- kosher location.

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