Hot Topics in Meat RetailTransportation: Robert Voltmann, CAE – President & CEO, Transportation Intermediaries Association

Case-ready: Jason Robertson – Vice President Case Ready Beef and Pork, Tyson Foods

Nutrition: Kim Kirchherr, MS, RD, LDN, CDE, FAND, ACSM-CPT – President, K2 Outcomes LLC

Environment: Eric Mittenthal – Vice President of Sustainability, North American Meat Institute

Tuesday, March 3, 2020 10:15 AM – 11:15 AM

Case Ready – A Hot Topic that is getting Hotter

Retail Case Ready Fundamentals

Retail Case Ready Fundamentals

Macro economic trends continue to support retail Case Ready

conversion and value-added, portioned solutions across channels

Customers 10 Years Ago…

Should I be considering Case Ready?

Customers Today…

I have to consider Case Ready…..

Food Safety & Liability

Operating Costs

Inventory Shrink

Labor Availability

Shelf Life

Industry Regulations

Why is Case Ready a Hot Topic?

Domestic U.S. Retail Landscape

Changing Retail Landscape

The pace of change in the retail industry will only accelerate, requiring participants to evolve and adapt in

order to compete going forward

1990 2018

Source: Public company filings, McKinsey retail study Based on 2018 sales. All sales are for U.S. only.SOURCE: Stores Magazine

Outside Industry Disruption

Changing Retail Landscape

New entrants have disrupted and transformed well-established industries, leveraging technology and improved

consumer experience to provide a better value proposition

NYC taxi medallions were valued at nearly $1

million each in 2014

…In 2019 they traded for as low as $100,000

Airbnb offers more than 6 million listings in

over 190 countries… more listings than the

top 5 hotel chains combined Airbnb

Airbnb does not own any real estate

Blockbuster turned down an offer to acquire

Netflix for $50 million

…Netflix now has a market cap of $170 billion

Evolution of the Retail Meat Case

Changing Retail Landscape

1950’s 1970’s Today

Future Disruptors & Change Accelerators

Changing Retail Landscape

Traceability &

Transparency

Artificial

Intelligence

Sustainability trends and technology

advancements will drive transparency and

traceability to become the expectation for doing

business

Big data, predictive analytics, and machine learning

will drive new level of operational optimization,

predictive distribution, and responsiveness to

increasingly complex market needs

Retail Case Ready Fundamentals

Future Disruptors & Change Accelerators

Changing Retail Landscape

Traceability &

Transparency

Artificial

Intelligence

Digital

Commerce

Sustainability trends and technology

advancements will drive transparency and

traceability to become the expectation for doing

business

Online Path to Purchase: Disruption to brick and

mortar model and established consumer influence

models

Internet of Things: Smart homes and connected

devices drive purchase behavior

Big data, predictive analytics, and machine learning

will drive new level of operational optimization,

predictive distribution, and responsiveness to

increasingly complex market needs

Retail Case Ready Fundamentals

So why isn’t everyone on Case Ready?

Consumer Trends

Retail Case Ready Fundamentals

Quality and

availability rival price

Price is the major driver for

shopping more than one

retailer, but quality and

product availability also

important for shoppers.

Retail Case Ready Fundamentals

A butcher is a person who may slaughter animals, dress their flesh, sell their meat,

or participate within any combination of these three tasks. [2] They may prepare standard

cuts of meat and poultry for sale in retail or wholesale food establishments. A butcher may be employed

by supermarkets, grocery stores, butcher shops and fish markets, slaughter houses, or may be self-

employed. [3] Butchery is an ancient trade, whose duties may date back to the domestication of livestock;

its practitioners formed guilds in England as far back as 1272. [4] Today, many jurisdictions offer trade

certifications for butchers. Trade qualification is earned through a three to four year apprenticeship

although some training organizations qualify their students sooner, depending on their competency. In

some countries, once a butcher is trade qualified, they can learn to become a master butcher

(Fleishmaster) . [5][6]

Source: “Butcher” Wikipedia.org

Retail Case Ready Fundamentals

Butcher Meat Department Ambassador &

Culinary Advisor

Retail Case Ready Fundamentals

Conversion Success Stories

Retailers Embracing Change are Winning

Retail Case Ready Fundamentals

• Case Ready Retailers

Outpacing Non-Case

Ready in Sales $

Growth

• Consumer Confidence in

Product Performance due

to Quality & Shelf Life

• In-Stocks

• Improved Assortment

Data Source: Neilson w/e 9-29-18. Data is reflective of all stores participating with Nielsen at a fresh meats category level

8.1%

4.8%

2.4%

-1.5% -1.9%

-5.5%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Beef Ground Beef Pork

Case Ready ROM

Case Ready Sales $ Growth vs. ROM

What will this list look like in 2028?

Changing Retail Landscape

2018

based on 2018 sales. All sales are for U.S. only.SOURCE: Stores Magazine

2028

?