Beef: Adding ― and Creating ― Value
Meghan Pusey, National Cattlemen’s Beef Association, a contractor to the Beef Checkoff
Wade Hanson, Technomic
What You’ll Learn Today
• Dramatic business opportunity that beef represents to Grocerants
• Deli prepared foods trends and Beef’s current situation
• Consumer & shopper insights on beef and implications for Grocerants
• Resources to help ignite beef’s profitability to fuel your prepared food sales
Beef Leads in Fresh and Foodservice
Beef Chicken Pork Turkey Other Meats$0
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000
Fresh Meat Dollar SalesTotal U.S. Retail, 52 weeks ending 7/26/15 (FreshLook
data)49.6% of
meat sales
Beef Chicken Pork Turkey Other Meats0
1,0002,0003,0004,0005,0006,0007,0008,0009,000
Volume Sold into FoodserviceTotal U.S. Foodservice MM Lbs, 2014 (Technomic data)
35.1% of meat volume
But Not in Retail Prepared Foods!
2.8%Beef’s share of meat dollar sales in deli prepared foods
Source: IRI/FreshLook Marketing, Total U.S. Multi-Outlet, 52 Weeks ending 6/14/2015
37%of shoppers
say beef tastes better than chicken
Your Shoppers Want Beef
37% 15%
Source: Consumer Beef Index, The Beef Checkoff, March 2015
• Millennials have an unexpected preference for beef• 3-to-1: Prefer the taste of beef
over chicken
• They are willing to pay for beef• More than 80% think beef is priced
‘just right’ or is ‘expensive but worth it’ at both retail and foodservice
Millennials Want Beef Choices
Source: Consumer Beef Index, The Beef Checkoff, March 2015
• 38% more likely to shop the prepared foods section more often if it had a great beef selection
• 43% would get their meal from a grocery store instead of a restaurant if there were great beef choices in prepared foods department.
• 40% report that a prepared foods section with great beef choices would increase their likelihood of considering that a “high quality” store
© 2015 Technomic Inc.
MARKET OBSERVATIONS
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Market Observations
Supermarket foodservice is one of the fastest growing segments in the away-from-home food industry and its underlying fundamentals suggest continued robust performance.
Food and beverages being offered within supermarket foodservice are far more sophisticated than one to two years ago.
1
2
Market Observations
One of the primary reasons for the strong historical and projected growth of supermarket foodservice is that core consumer needs are being met – not least among them being the desire for restaurant quality at less-than-restaurant pricing.
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3
Consumer Perceptions
Food Service Atmosphere Speed Convenience ConnectionCSR
Source: Consumer Brand Metrics, Technomic
Restaurants Supermarkets
© 2015 Technomic Inc.
CONSUMER DATA AND INSIGHTS
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Purchase Behavior
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2-3 times4-6 times
10+ times7-9 times
1 time
Purchase Behavior in a Typical Month
17%
42%
23%
8%9% Light Users: 17%
Medium Users: 65%
Heavy Users: 17%
Value-Added Proteins
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Main reasons consumers purchase ready-to-eat and ready-to-heat protein items at supermarkets
Consumers want more ready-to-eat and ready-to-heat chicken and beef options at supermarkets
Convenience - quick and easy option
Taste and flavor
Something I don't want to do at home
Variety, something different
Quality and value of the products
Healthy and nutritious
Flexibility - we get what we each want
Flexibility to customize
Something to impress my family/guests
76%
46%
33%
30%
19%
18%
17%
14%
3%
Proteins consumers would like to see more of
38%
45%50%
63%
Interest in Value-Added Proteins by Age
15
25-34
61%
76%
54%
65%
35-44
49%
57%
45-54
43%
54%
55+
“What Prepared Foods Protein Options Would You Like to See More Of?”
Heavy Users (10+ prepared foods purchases per month)
69%
73%
BeefChicken
© 2015 Technomic Inc.
BEEF OPPORTUNITIES, BY TIER
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Prepared Foods Tiers
Tier Segment Description
Foodservice Specialists blur the line between supermarkets and restaurants. Gourmet menu items, limited table service, a warm atmosphere, and restaurant-type amenities likely exist.
Foodservice Specialists1
Destination Supermarkets have a comprehensive perimeter that offers extensive choice across cuisine types. The perimeter often contains made-to-order stations, well-designed seating, and well-trained service.
Destination Supermarkets2
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Prepared Foods Tiers
Prepared Foods Departments have increasingly shifted focus away from meats and cheeses and to ready-to-eat or ready-to-heat meals. In most cases, shoppers get more than just the basics, including select ethnic offerings.
Prepared Foods Departments3
Extended Delis, while still emphasizing sliced meats and cheeses, typically offer customers several hot meal alternatives as well as a ready-to-eat cooler selection.
Extended Delis4
Tier Segment Description
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Beef Opportunities
Tier Segment Description
Foodservice Specialists1
Destination Supermarkets2
• Steak • Burgers
• Tri-Tip • Meatloaf
• Brisket • Meatballs
• Brisket • Burgers
• Meatballs • Meatloaf
Tiers 3 and 4 focus on ground beef (meatballs/meatloaf) and roast beef – expect that to change
Examples of Beef in Prepared Foods
Coffee & Chili Braised Beef Short Ribs
Roast Tri-Tip
Honey Garlic Skirt Steak
Grilled Teriyaki Flank Steak
Examples of Beef in Prepared Foods
Examples of Beef in Prepared Foods
© 2015 Technomic Inc.
WHY BEEF?
Why Beef? Why Now?
• Consumer Demand for Variety• Changing Demographics• Increased Culinary Capabilities• Food as Theater• Customization Trends
Many barriers to using beef are being broken down
Your Resource for Growing Sales of Beef in Prepared Foods
Product Development and New Cuts
Issues & Crisis Management
Menu DevelopmentCulinary Innovation
Menuing Strategies
Market Research & Intelligence
Nutrition Research
Safety Research
Industry Education and Training/Tools
Beef Production Education and Engagement
Product Quality Research
Sustainability
Pilot Programs
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Questions?