Consumer Insights - BeefResearch · Consumer Insights . New Orleans, January 30, 2019. TABLE OF...

Consumer Insights New Orleans, January 30, 2019

TABLE OF CONTENTS

1Economic Outlook

2Beef & Protein Supplies

3Channel Perspective

4Overall Consumer Attitudes

5Consumers and Beef Recalls

6Understanding Red Meat Messaging

7Meat Alternatives

8Segmentation

1Economic Outlook

2019 growth is projected to slow. Employment and Wages are supportive; investment is uncertain.

Source: U.S. Bureau of Economic Analysis; Forecast: Wall Street Journal Economic Forecasting Survey, January 2019.

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Perc

ent C

hang

e fr

om P

rior Y

ear

Quarterly Percent Change in Real GDP

fore

cast

2BEEF & PROTEIN SUPPLIES

53.9

58.3

5052545658606264666870

Poun

ds

U.S. Per Capita Net Beef Consumption

+8.2%

2019 beef consumption is expected to increase

Source: USDA WASDE, December 11, 2018

0

50

100

150

200

250

Poun

ds

U.S. Per Capita Meat & Poultry Consumption

Beef Pork Chicken Turkey Other

222.4220.2

2019 meat & poultry consumption is projected to be record-high

Source: USDA WASDE, December 11, 2018

200.3

3THE CHANNEL PERSPECTIVE:

BEEF AT RETAIL AND FOODSERVICE

2018 retail Beef demand has been strong!Even November out-performed

859095

100105110115120125

Jan-

12A

pr-1

2Ju

l-12

Oct

-12

Jan-

13A

pr-1

3Ju

l-13

Oct

-13

Jan-

14A

pr-1

4Ju

l-14

Oct

-14

Jan-

15A

pr-1

5Ju

l-15

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

Oct

-16

Jan-

17A

pr-1

7Ju

l-17

Oct

-17

Jan-

18A

pr-1

8Ju

l-18

Oct

-18

Chart 1: U.S. Retail Total Beef Demand Index

Source: Tonsor, Schroeder, Creating and Assessing Candidate Food Service and Retail Beef Demand Indices, January 2017. IRI/Freshlook, Total US MULO ending 11/26/18; Categorized by VMMeat System

2018 vs. 2012: +15%2018 vs. 2017: +6%

10

2018 was an excellent year for Beef at retail. More lower-value cuts were sold as Ground.

-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%

10.0%12.0%

Dollars Pounds Price

Perc

ent C

hang

e

Retail Beef Sales: 2018 vs. 2017 (Jan-Nov)

Total Beef Ground Beef Rib & Loin Steaks Roasts*

*Chuck, Round, Shoulder, Minor PrimalsSource: IRI/Freshlook, Total US MULO ending 11/26/18; Categorized by VMMeat System

7,737

7,816

8,037 8,028

2015 2016 2017 2018

11

Beef volume at foodservice was steady in 2018, despite the challenging year for restaurants

*At the operator purchase, or distributor sales level.Source: 2018 Beef at Foodservice Volumetric Study, Technomic, Inc.

Change in Beef PoundsIn M Lbs.

64%13%

11%

6%4% 2%

2018 Annual Total, In B Lbs.

Ground Beef Pre-cut SteaksRoasts Other BeefPre-cooked Roast Ribs

8.028B Lbs.

• Drives check average (+19)72%• Can make a successful LTO (+20)65%• Increases traffic (+17) 62%• Brings in bigger parties (+19)57%• Eliminates the “veto vote” (+21)49%

Importance of steak on the menu: Operators say steak…

Source: 2018 Beef at Foodservice Volumetric Study, Technomic, Inc.

13

• Overall economy• Uncertainty

• Total protein supplies• Exports/Imports

• Competitive protein prices

2019 question marks…

4Consumer Attitudes

15

Two thirds of consumers are positive towards beef overall, with few fee ling negative ; however, bee f trails chicken

Perceptions

Source: Consumer Beef Tracker

Negative , 13%

Neutral, 20%

Strongly Pos, 36%

Some Pos, 31%

Positive , 67%

Overall Beef Pe rceptions

6%

Neutral, 13%

Strongly Pos, 45%

Some Pos, 35%

Positive , 80%

Overall Chicken Perceptions

16

The majority of consumers are eating beef weekly

Consumption


Weekly+ Beef Eate r

70%

Weekly+ Chicken Eate r

81%

17

The top reason to eat more beef, by far, is taste

Future Consumption

20%

22%

22%

23%

29%

55%

Discovering new beef recipes

Adding protein to your diet

Grilling more often

A beef meal is quick and easy to prepare

Beef is my #1 protein choice

You enjoy the taste of beef

Top Reasons to Eat More Bee f

Plan to Eat More

13%


18

The reasons for eating less beef are related to health and price

Future Consumption


24%

24%

31%

31%

32%

Cutting back due to health conditions such asheart disease, diabetes, etc.

Concerned beef will negatively impact long-termhealth

Beef has too much fat

Price is too expensive

Other meats are healthier

Top Reasons to Less More Bee f

Plan to Eat Less

14%

Beef performs on par or greater than chicken when it comes to top consideration factors such as taste , preparation, and expe rience , but falls short on fit with budge t

Beef vs Chicken


86% 82% 79% 79% 77%83% 81%

66% 71%80%81% 82% 81%

73%79%

Is great tasting Know how to prepare it Fits my budget Is safe to eat Is a very pleasurableeating experience

Considered Most Agree Beef is Doing It Agree Chicken Is Doing It

Top 10 consideration factors T2B scores

20

• Production Perceptions for Beef and Chicken are on a similar plateau

Production Perceptions


Negative , 23%

Neutral, 39%

Strongly Pos, 14%

Some Pos, 23%

Positive , 37%

Chicken Production Perceptions

Negative , 19%

Neutral, 44%

Strongly Pos, 14%

Some Pos, 23%

Positive , 37%

Beef Production Perceptions

21

For the most part, the majority of consumers trust the beef industry's practices, with anothe r se t of consumers who are also on the fence

Top Trust Metrics


48%

51%

51%

51%

52%

53%

54%

66%

69%

Environmental practices are continuously improving

Sanitation guidelines when processing/packaging meat

Beef does not negatively impact your long-term health

Cattle are given room to roam

Cattle health is a priority

The safety of beef is continually researched

Protocols to prevent diseases in beef are followed

Beef is safe to eat

Beef is nutritious

22

Compared to other higher budget brands, BIWFD performs well

Awareness


10%

30%

50%

54%

57%

65%

42%

Pork. Be Inspired

Avocados from Mexico

Chick-fil-A. Eat Mor Chikin

Papa John’s. Be tte r Ingredients, Be tte r Pizza

Arby’s. We Have the Meats

McDonald’s. I’m lovin’ it

Bee f. It’s What’s For Dinne rComparison of Aided Awareness

5Consumers and Beef Recalls

24

Ground beef recalls for Salmonella: • October 4, 2018• December 4, 2018

Background

25

Safety consideration peaked in October, but has since declined slightly; beef safe ty agreement has remained steady

“Is Safe to Eat” Consideration & Agreement

73%70%

72% 73%

July - Sept Oct Nov Dec

Agree Beef is Safe

77%81% 79%

76%


Consider Safety of Protein

T2B Consumer consideration for protein “Is safe to eat”


% Consumers who score beef 70-100

26

Across safety trust metrics, beef has seen only a small decline with the recalls in October and has since re turned to previous leve ls

Safety Specific Trust Metrics

68%64% 67% 67%


Beef is safe to eat

55%50% 54% 57%


The safety of beef is continually researched and monitored


52%49%

51% 53%


Sanitation guidelines followed when processing and packaging meat

T2B Agreement

27

October recalls impacted consumer perceptions of food safety when it came to ground bee f

Consumer Food Safety Grades (A or B)


69% 63% 65% 59%


Fresh hamburger/Ground beef

69% 69% 73%64%


Fresh Beef Steaks & Roasts

28

Consumer concern for beef safety remained lower, and more consistent over time compared to fre sh chicken and vege tables

Concern for Food Safety in Category


14% 18% 16% 16%


Fresh Beef

19% 21% 22% 23%


Fresh Chicken

16%11%

27%15%


Fresh Vegetables

T2B Concern for Food Safety at Supermarkets

29

E. coli and Salmonella, while top of mind for consumers, did not change through July and September to October to December

Food Illness Influencers


28%

34%

28%

34%

Beef E.Coli Beef Salmonella

July - Sept Oct - Dec

6Red Meat Messaging

31

Background & Methodology

18 or older

No negative perception of meat

Beef Eaters

Screening Criteria• Total Sample N=1092OBJECTIVES:• Protein Perceptions• Dietary recommendations

consumers most likely to follow• Educating consumers on red meat• Diet Perceptions

Source: Defining Red Meat Study October 2018

32

Being high in protein and having great taste/flavor are the most mentioned positive associations consumers have with red meat

Positive Associations

18%

11%

6%

4%

4%

4%

3%

Taste/Flavor

Filling/Hearty

Natural/Organic

Vitamins/Nutrients

Versatile

Lean or low in fat

Iron

20%Prote in

Source: Defining Red Meat Study October 2018 A5. First, please list all of the positive terms/phrases that you see or hear used to describe red meat.

33

Negative associations with red meat revolved around health aspects with 19% of consumers not be ing able to think of anything negative .

Negative Associations

12%

10%

9%

3%

19%

Unhealthy

Bad for heart

High in cholesterol

Cancer

Don't know/None19%High in Fat

Source: Defining Red Meat Study October 2018 A6. Next, please list all of the negative terms/phrases that you see or hear used to describe red meat.

14%

18%

48%

49%

15%

11%

79%

81%

55%34

Steak and Ground Bee f have the strongest association with Red Meat while Poultry and Fish have a strong tie to Lean Meat

Red and Lean Meat Protein Associations

88%

78%

32%

24%

23%

21%

8%

6%

6%

Steak

Ground Beef

Lamb

Pork

Bacon

Sausage

Chicken

Turkey

FishSource: Defining Red Meat Study October 2018

Lean Meat Protein Associations Red Meat Protein Associations

35

Balanced diets have higher ratings of being healthy and delicious

Common Diet Perceptions

Balanced Diet

Low Carb Diet

Plant Based Diet

Mediterranean Diet

Nutritious

Healthy

Delicious

Protein Packed

Something I crave

70%

70%

67%

60%

57%

44%

54%

35%

43%

23%

55%

60%

33%

27%

18%

51%

53%

49%

47%

30%


36

Steak and Ground Beef have a clear place in balanced diets

Proteins Associated with Diets

Balanced Diet

Low CarbDiet

Mediterranean Diet

Plant Based Diet

Chicken 75% 65% 50% 14%

Turkey 70% 63% 37% 11%

Steak 67% 47% 36% 11%Fish 66% 66% 64% 16%

Ground Beef 63% 41% 28% 12%

Pork 60% 45% 35% 10%


Dietary Recommendations that suggested eliminating specific foods

underperformed compared to more inclusive recommendations

Dietary Recommendations


MEAT SUBSTITUTES

38

7

Foodservice & Retail: Animal Proteins and Beef vs. Substitutes (billion pounds)

14; 99.5%

0.07; 0.5%

Beef vs. Beef Substitutes

Beef Beef Substitutes

23.3; 99.9%

0.034; 0.1%

Animal Proteins vs. Substitutes

All Animal Proteins AP Substitutes

Sources: Alternative Proteins at Foodservice Study, Technomic, October 2018; Usage and Volumetric Assessment of Beef in Foodservice, Technomic, December 2017;IRI, Refrigerated/Frozen Meat Substitutes, 52 weeks ending 6/16/18; IRI/Freshlook, Total US MULO ending 5/28/18; Categorized by VMMeat System

0

50

100

150

200

250

Poun

ds

U.S. Per Capita Meat & Poultry Consumption

Beef Pork Chicken Turkey Other

222.4220.2

2019 meat & poultry consumption is projected to be record-high

Source: USDA WASDE, December 11, 2018; Alternative Proteins at Foodservice Study, Technomic, October 2018; IRI Refrigerated and Frozen Meat Substitutes, July 2018

200.3vs. 0.37

MeatSubstitutes

1.5 servingsper person

per year

41

Meat Substitutes and Consumers

Never tried meat

substitutes33%

Tried, but rarely

consume20%

Tried & consume at

least monthly47%

Meat Substitutes

Alternative Proteins at Foodservice, Technomic, October 2018

42

Items Consumers Eat Instead of MeatOf the 34% claiming to avoid eating meat monthly, most aren’t replacing meat with traditional meat substitute s

55%

54%

44%

41%

38%

36%

32%

29%

27%

27%

Beans, rice, lentil or grain-based dishes

Salads

Pizza without meat toppings

Vegetable or musroom-based dishes

Baked/other potatoes

Egg-based dishes

Favorite dishes without meat (e.g. spaghetti)

Meat-less sandwiches or wraps

Plant-based protein patties, or "meat-like" crumbles

Nuts


43

Reasons for Choosing Meat SubstitutesMost consider meat substitutes specifically due to their healthier perceptions. Based on those who have intentionally avoided eating meat.

53%

35%

29%

28%

26%

Healthier than meat

Taste/flavor you enjoy as much as meat

Safer than meat

Reduces mistreatment of animals

More environmentally friendly


44

Meat Substitute Users Beef ConsumptionThe majority of meat substitute users still eat beef

70% 70%62%

73%

8%13%

6% 6%

Total Weekly+Meat Sub Eater

Monthly+Meat Sub Eater

Rarely Eat Meat Subs

Eat Beef Weekly+ Do Not Eat Beef


Meat Substitute Consumption

8Segmentation

Consumer Segmentation

*Cluster analysis or clustering is the task of grouping a set of objects (consumers) in such a way that consumers in the same segment are more similar to each other than to those in other segments.

• Online survey and cluster analysis resulted in six consumer segments.

• Three segments identified as being high opportunity, representing over 70% of older millennial parents

• Ongoing analysis using the Consumer Beef Tracker will further profile the segments to maximize utility

Source: Segmentation Study – April – July 2018

Common Themes

Several themes are common across all segments:

• Consumers enjoy the taste of bee f and consume it regularly

• Children in the household can shift be lie fs/aspirations

• Most approach the weekend diffe rently when it comes to food

Pillars

TASTE

STRENGTH

RESPONSIBLE

4.4 82

3.8 73

3.5 64

BEEFPERFORMANCE

PROTEINIMPORTANCE

Average rating of attributes within each pillar5-pt Scale 100-pt Scale


Segment Overview

Family Food Enthusiasts Disciplined Doers Social

EatersConvenience

Seekers Confident Cooks Budget Basics

Segment MembershipTotal Sample

n=306 n=344 n=419 n=219 n=290 n=348

Segment Membership

Older Millennials w/ Kids

Beef Consumption

weekly+

At Home

Away From Home

16%

27%

76%

53%

22%

26%

80%

56%

18%

19%

71%

43%

15%

8%

81%

42%

11%

8%

75%

52%

18%

8%

77%

40%


Segment Overview

CONFIDENT COOKSConsumers who are more positive about beef with a passion for cooking and preparing meals at home. Highly confident in shopping for and cooking all types of beef.

CONVENIENCE SEEKERS

Hectic households who don't enjoy cooking and tend to eat for ease/convenience at home and when dining out. Taste and convenience tend to be greater drivers than health and nutrition.

BUDGETBASICS

Consumers with simple diets and lower incomes, who prioritize price and taste over nutrition. While favorable towards beef, they prefer simple meals and don’t eat out often.


Segment Overview

FAMILY FOOD ENTHUSIASTS

Larger, more affluent, active households who strive to be healthy. Enthusiastic about food and the overall meal experience, they eat out often and care more about how food is raised/processed.

SOCIAL EATERS

Slightly younger consumers who frequently eat a wide variety of proteins. They enjoy socializing, eating with friends and often eat beef, both at home and when dining out.

DISCIPLINED DOERSWell educated consumers who are more conscious about their health. With somewhat limited diets, they have disciplined eating habits and prioritize the nutrition of lean proteins over taste/flavor.


THANK YOUThe presentation reflects highlights from several projects. Feel free to reach out to the team for any

further questions on any of the topics.

Rick Husted, Vice President, Market Research & Strategic Planning [email protected] Krebs, Director, Market Intelligence, [email protected]

Shawn Darcy, Director, Market Research, [email protected] Patton, Associate Director, Market Research, [email protected]

Beejan Mehrabani, Associate Director, Market Research, [email protected]

mailto:[email protected]





Date post:	10-Jun-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Consumer Insights - BeefResearch · Consumer Insights . New Orleans, January 30, 2019. TABLE OF...

Documents