BEEF INDUSTRY TAPS CONSUMER RESEARCH HELP FRESH MEAT RETAILERS SHAPE FUTURE SUCCESS

CHICAGO (September 11, 1998)-- Male or female, young or old, Americans continue to make beef a key part of their diet. Yet, beef consumption in the last decade has declined across all genders and age groups. The beef industry knows that to stabilize demand in the next decade, it must deliver on consumer needs, and it must do so primarily through the retail channel.

Seventy percent of total U.S. beef volume is sold at the retail level, making the retail customer a key component to building demand and growing beef's market share. However, because of consumers' changing lifestyles and increased food options, meeting consumer needs is becoming more challenging for the fresh meat industry.

"Consumers today have more food options than ever before, and competition for the same share of plate is intense," said Jerry Kelly, director of retail marketing for the National Cattlemen's Beef Association ~CBA). "If we don't help fresh meat retailers deliver more of what consumers want, when and where they want it, today's shoppers will not hesitate to find alternatives to beef."

Several years ago, NCBA identified category management as a key tool to help build retail beef sales, and the association has been working with many of the nation's top retail companies to help them implement elements of this evolutionary business practice. Because category management must be focused on the consumer to succeed, NCBA conducts ongoing research to help its retailer partners understand how changing attitudes and behaviors are shaping the future of their businesses.

The Power of Women

According to the U.S. Department of Commerce, 70 percent of women were in the workforce in 1996 compared to 42 percent in 1960. In addition, 75 percent of women today say they still do the majority of household chores, including grocery shopping and meal preparation. While women have increased their day-to-day responsibilities in the past 20 years, findings from The NPD Group's Time Study show the rate at which men are chipping in around the house has held steady since 1992.

"Women are burning both ends of the candle and are looking for ways to buy a little more free time," said Kelly. "As Baby Boomer women enter their peak earning years, they will have even more disposable income and buying power."

Return to the Family Fold

Because of increased time demands and other lifestyle factors, consumers today are looking for ways to escape the complexities of life, and many are turning to family time. In fact, 32 percent of consumers say they have dinner at home more often than in years past, and more than seven in 10 have dinner with family five days a week, according to research conducted by The NPD Group. And, the dinner table is changing to reflect today's family structures.

"Instead of gathering at a formal dining table to enjoy one main meal, today's families are gathering in less formal settings, such as a kitchen bar area, and eating several smaller entrees to satisfy different tastes and time schedules of family members," said Annette Robbins, director of consumer research for NCBA.

4:30 Dinner Dilemma

As consumers' lifestyles change, so do their attitudes about shopping for and preparing meals. Because of growing time demands and pressures, consumers are putting off dinner decisions until the last minute. According to NCBA research, two4hirds of dinner decisions are made the same day. Of those, 73 percent wait until 4:30 p.m. to decide what to have for dinner.

This "4:30 dinner dilemma" is reflected in the growth of foodservice sales. In the past 10 years, more consumers have bypassed their local supermarkets for take-out meals, and the level of spending at restaurants has nearly doubled.

However, Robbins reminds retailers that while consumers are spending more on foodservice meals, they aren't necessarily eating out more. Research shows the majority of consumers continue to eat dinner at home with family which presents growth opportunities for retailers.

"By delivering retail beef products that fit the bill for great taste, simplicity and convenience, retailers give their customers more reasons to visit their store," Kelly said. "Over time, this can help chip away at competitors' sales and profits."

These consumer attitudes and behaviors are driving important changes for the beef industry --changes it hopes will stabilize beef's market share. The focus for NCBA Retail Marketing efforts: simpler preparation, simpler products and simpler shopping.

Research shows many of today's consumers, especially younger shoppers, have less cooking knowledge than previous generations. Therefore, they buy a limited range of staple cuts they find easy to prepare. To sell a broader range of cuts and increase consumers' comfort level with cooking fresh beef, NCBA is working with a major retailer to roll-out simple, three-step cooking instructions that take the guess work out of making beef meals. The retailer plans to launch the on-pack instruction labels this fall.

NCBA also has reinvigorated its new product development efforts to deliver more of what consumers are looking for in beef products. It recently completed two years of development and testing for its Rotiss-A-Roast TM product, a premium quality beef roast that is prepared in the same type of rotisserie oven as chicken. According to Kelly, product tests show the Rotiss-A-Roast delivers on criteria important to retailers and their customers, including taste, convenience, and value.

Last year, NCBA introduced the "Best New Beef Product in America" award to recognize companies delivering exciting new beef pro ducts that fit consumers needs and help build demand for these products.

To simplify the shopping experience, NCBA is working with retailers to test alternative meat case layouts that could boost sales of underutilized products. While most fresh meat cases are set by species, research indicates consumers don't think about subprimals when making purchase decisions. Instead, they consider factors such as what meal they want to prepare, their families' tastes, time influences and cooking skills. As a result, consumers tend to buy a limited range of products like ground beef, steaks, pork chops and chicken breasts.

To sell a broader range of cuts and grow consumer demand, the beef industry is helping fresh meat retailers implement alternative case layouts to better market beef products.

"The goal is to help retailers match their case layout to how their customers shop," explained Kevin Yost, executive director of channel marketing for NCBA. "If consumers can consistently find the products they want, sales will increase for all meats. Because beef leads the pack in total meat case volume, the beef industry stands to win proportionally."

-- NCBA --

Initiated in 1898, NCBA is the marketing organization and trade association for America’s one million cattle farmers and ranchers. With offices in Denver, Chicago and Washington D.C., NCBA is a consumer-focused, producer-directed organization representing the largest segment of the nation’s food and fiber industry.