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2002 NewsHub Archive

Checkoff Programs Seek To Move Beef This Summer

Striving to move beef supplies during challenging market conditions, the beef industry this summer is focusing its $1-per-head beef checkoff on programs designed to capture consumer attention and increase market channel support for beef.

 

“While some checkoff programs are intended to boost beef demand over the long run, many are designed to provide an immediate impact on beef sales,” said Iowa beef producer Wythe Willey, president of the National Cattlemen’s Beef Association.  For example:

 

Export Programs

Since the discovery of BSE in Japan last September, the U.S. beef industry has worked to assure Japanese consumers that U.S. beef is safe and wholesome. Funded in part with beef checkoff dollars, the $8.4 million promotion is working to restore demand for beef in the No. 1 U.S. beef export market.  It has helped promote a steady return to beef and an increase in U.S. market share during the first half of 2002.

 

Retail Promotion 

The checkoff-funded Summer Grilling promotion was expanded to increase beef sales evenf urther this summer when the Beef Promotion Operating Committee approved an increase of $800,000 to the $2 million program in June.  The additional funds allowed the program to be extended to nine new markets for a total of 16.  Wal-Mart agreed to use elements in over 1,300 of its stores across the country. 

 

In June, 21 TV stations participated in a satellite media tour promoting beef grilling. In July, a grilling radio media tour aired more than 450 segments, generating over 16.5 million impressions. The beef industry’s public relations team worked with 36 radio stations in six key markets to promote the program.

 

Thirty-five state beef councils and 6,100 stores are participating in the program, and more than two million brochures and recipes have been distributed to consumers. Radio advertising has reached 72 percent of the target audience nine times. Public relations activities have generated more than 363 million media impressions.

 

In an effort to create awareness of the nutrition benefits of beef and increase sales at retail, the beef industry partnered with the American Culinary Federation’s Build a Better Burger promotion, running May through September. The contest asks consumers to enter their favorite burger recipe using beef or veal for a chance to win $20,000. The goal is 5,000 stores participating in the program throughout the summer.

 

New Products and Culinary Center

The New Product and Culinary Center team is putting an experienced checkoff-funded team on the road to work with meat cutters on innovative cutting techniques required for new value cuts. R&D Ranch sessions focusing on value cuts have been held or are being planned in nine major U.S. cities.

 

Associated Wholesalers Inc. is launching the beef value cuts line through independent retailers in four states, while Omaha Steaks has added the Flat Iron steak to its permanent catalog and is making it available on their web site. Beef value cuts are under development in several national restaurant chains and in more than 100 independent restaurants across the country.

 

Significant new product programs are taking place with several national manufacturers and restaurant chains to give consumers new reasons to buy beef. For example, the checkoff-developed Homestyle Pot Roast is being sold in three divisions of Kroger (237 stores), with a few other chains also committed to launch.

 

Meanwhile, the beef checkoff helped support new product launches by Schwan’s, Old El Paso and John Morrell this summer. National promotions were developed at no cost to the beef industry with A-1 Sauce, Gallo and Mrs. Dash seasonings. So far this year, manufacturer partners have spent $6 for every checkoff dollar invested to help promote new beef entrees directly to the consumer.

 

Foodservice Promotion

Taco Bell is continuing to put special emphasis on beef, thanks to an earlier partnership with the beef industry. The restaurant is promoting a Southwest Steak Bowl as an extension of its previous checkoff-supported product introductions.  A partnership with Dunkin’ Donuts resulted in the launch of a new Steak, Egg and Cheese breakfast sandwich in the New England market. And a major sandwich shop is launching a roast beef submarine sandwich nationwide next month through a partnership funded by the checkoff.

 

Beef industry promotional programs are funded through the national beef checkoff, which is administered by the Cattlemen’s Beef Board. This 110-member board is appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, certify state beef councils, implement the provisions of the federal order establishing the checkoff and evaluate the effectiveness of checkoff programs.

 

Coordination for many of these checkoff-funded projects is provided by the National Cattlemen’s Beef Association. Producer-directed and consumer-focused, the NCBA is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.

 

 



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