National Meat Case Study Identifies Shift in Merchandising Strategies

DENVER (Aug. 19, 2004) -- For many years the beef industry has made an effort to make beef easier for consumers to purchase and prepare. To communicate the results of one of these efforts, the Beef Checkoff Program, in partnership with the National Pork Board and Cryovac/Sealed Air, has funded a study to measure the current state of the meat case.

This research, officially titled the National Meat Case Study 2004 (NMCS), was conducted to provide packers and retailers with a deeper insight into emerging retail meat marketing trends on a national level. The NMCS 2004 findings suggest that the retail penetration of heat and serve and value-added products has continued to grow in the meat case.  Cryovac/Sealed Air and the Beef Checkoff Program conducted a similar study in 2002, which was well received by meat department executives, prompting the 2004 study.

Outcomes from this study can also be used to help create new meat merchandising applications to further drive incremental category growth. Results of the top line audit were released Aug. 11.

Funded in part by beef producers through their $1-per-head checkoff, the NMCS 2004 was coordinated for the Cattlemen’s Beef Board and state beef councils by the National Cattlemen’s Beef Association (NCBA.) The NCBA serves as one of the Beef Board's contractors for checkoff-funded programs.

“The face of the meat case is changing and being led by an increase in processed, heat and serve and value-added meat,” says Alan Hess, chairman of the beef industry’s Joint Retail Committee and a producer from Alma, Kan.  “As this shift continues, it’s imperative we provide our industry partners with insight into these emerging trends in order to help them adapt.”

The research showed, to varying degrees, that allocation of the meat case space is shifting, with fresh meat and poultry’s share of linear feet decreasing by six percent since 2002. The big gainers from this shift included processed meats (sausage, ham and other processed) and heat and serve – both up two percent with ready-to-cook, value-added products -- and self-serve seafood, up one percent.

 “Consumer demand is actively changing the meat case,” says Randy Irion, director of Retail Marketing for NCBA. “A better understanding of what consumers want allows us to work collaboratively with the industry to meet those needs and ultimately help increase meat case sales.”

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Beef Checkoff Program

Beef industry demand building efforts are funded by the Beef Checkoff Program. The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

Producer-directed and consumer-focused, the NCBA is a 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.

National Pork Board

The National Pork Board has responsibility for checkoff-funded research, promotion and consumer information projects and for communicating with pork producers and the public. Through a legislative national Pork Checkoff, pork producers invest $0.40 for each $100 value of hogs sold. Pork importers also invest a comparable amount.  The Pork Checkoff funds national and state programs in advertising, consumer information, retail and foodservice marketing, export market promotion, production improvement, technology, swine health and pork safety.  For information on checkoff-funded programs, call the Pork Checkoff Service Center at 800-456-PORK or check the Internet at www.porkboard.org.

Sealed Air Corporation

Sealed Air is a leading global manufacturer of a wide range of high performance fresh food, protective and specialty packaging products.  Reaching nearly 80 percent of the world’s population, Sealed Air’s widely recognized and respected brands include Bubble Wrap^® air cellular cushioning, Cryovac^® performance packaging products, Jiffy^® protective mailers and Instapak^® foam-in-place systems.  The Company’s products protect and preserve our customers’ products from the plant or warehouse through the rigors of the distribution chain.   Many Sealed Air products also provide an appealing merchandising presence for retail display.  Sealed Air’s industry-leading investment in research and development and constant focus on World Class Manufacturing principles allow us to continue delivering innovative packaging solutions that add measurable value to our customers’ businesses around the world.