Don’t be surprised if Slim Jims start disappearing from convenience store shelves — lovers of the dried meat snack may start stockpiling them now that production has been halted.
ConAgra, the maker of Slim Jim, hasn’t produced any new inventory since an explosion destroyed the only plant in the country that made the beef jerky treat in early June. Three people died in the incident, which appears to have been caused by a gas leak.
The company won’t be able to make new Slim Jims for at least another month, which means that, for the time being, there’s a finite supply available to sate the appetites of hungry truckers.
And just like the infamous “Seinfeld” episode, in which Elaine begins hoarding the Sponge after the female contraceptive is taken off the market, analysts are bracing for a big summer Slim Jim run.
“People who like [Slim Jim], when they find out that there’s a shortage, are going to grab onto them, I’m certain of it,” said Harry Balzer, a food industry analyst with NPD Group. “Maybe [Ben] Bernanke should step in with some TARP money because people can’t live without their Slim Jims.”
That’s true, according to food industry consultant Jim Degan.
“[Slim Jims] loyalty is very high,” Degan said. “If you eat Slim Jims, you aren’t going to find brand B or C to be an acceptable substitute.”
The entire meat-snack category generates more than $250 million in sales annually. ConAgra says Slim Jim products generate $200 million in annual sales for the company, meaning that the brand alone is responsible for all but $50 million in meat snack sales.
About 181 million Slim Jim units were sold at an average price of $1.25 during the 52-week period ending June 14, according to market research firm Information Resources Inc. Sales at Wal-Mart and club stores are not included in those figures.
A ConAgra representative declined to disclose both the number of new Slim Jim products lost as a result of halting production, or how many Slim Jim products the company produces annually.
Analysts estimate that as many as 500 million Slim Jim units could be produced annually since there are different types of products — foot long, two packs, etc. — at price points ranging from as low as 25 cents to more than $1.
While production at the plant in Garner, NC, is halted, ConAgra said it would rely on “existing inventory” to meet demand and has been allocating orders on a proportional basis to extend supply as long as possible.
Still, the company doesn’t expect to be able to meet the full demand for Slim Jim products — or “return to acceptable service levels,” to use its vernacular — until the fall, which can mean as early as September or as late as December.
The sooner, the better — yesterday one convenience store in Midtown Manhattan was still selling foot-long Slim Jims that expired in February.