VARIETY OF BEEF RETAIL PROGRAMMING FOSTERS SUCCESS

DENVER ( February 3, 2005 ) – Throughout the year, the Beef Checkoff Program executes retail programming to increase consumer awareness and beef sales.A variety of promotions and partnerships have been designed to feature all cuts of beef while incorporating the well-recognized enjoyment message, “Beef. It’s What’s for Dinner.”

These programs were funded by America ’s beef producers through the Beef Checkoff Program. They were coordinated on behalf of the Cattlemen’s Beef Board (CBB) 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.

“There are a variety of retail promotions that we’re supporting this year to increase beef demand at retail,” said Terry Wyatt, chairman of the Joint Retail Committee and CBB member.“We’ve worked hard to establish strong partnerships with the goal of driving consumers to the meat case.”

One major highlight was the success of the 2004 Summer Grilling promotion.The impact of the targeted, seasonal campaign was reflected in the strong growth in sales of beef grilling cuts during the 19-week program.An analysis of FreshLook data found total beef sales up 8.2 percent on a dollar basis and 2.2 percent on a pound basis versus the same period a year earlier. The price-per-pound increase is an indication of the strength of consumer demand for beef during the grilling season.

The timing of the promotion was well-suited for a number of reasons.Between May and Labor Day, the supply situation increases, consumers are firing up their grills and retailers are featuring grilling cuts.With the appropriate support behind beef, it remains the protein of choice.

“The success of the Summer Grilling campaign has been the result of a variety of promotional initiatives furthered by the support of key retailers and strong partnerships,” said Randy Irion, director, retail marketing, NCBA.“Partnerships between the Beef Checkoff Program and A.1. Steak Sauce, as well as Sutter Home’s annual Build a Better Burger promotion, are designed to grow consumer demand through incremental support for beef at retail during the summer months.”

The 2005 Summer Grilling campaign is in its final planning stages and will build upon the success of the past three seasonal promotions.Plans for this summer’s promotion include FSIs with A.1. Steak Sauce that will run in Sunday newspapers on May 22 and June 26, and retail tagged radio ads that will run in markets that equal more than 50% of the U.S. population.Furthermore, consumers will be offered $1 off beef savings on meat packages when A.1. is purchased.Pallet-ready displays of A.1. that contain reprints of a grilling guide from Midwest Living magazine will also be featured in stores.

As part of a current initiative, the beef checkoff is enhancing BeefRetail.org, the Web site that continues to serve as a “beef knowledge center” for retailers.The site, which is continuously updated, features the latest information about the beef industry, such as sales trends as measured by FreshLook.In order to create general awareness of the Web site enhancements, BeefRetail.org will serve as a resource for retailers to view PowerPoint presentations and top line information.

FSIs and partnerships also play a key role in executing successful retail promotions, as they stretch Checkoff dollars and add value.This January, beef partnered with General Mills and A.1. Steak Sauce on two separate campaigns.

The A.1. “Resolve to Eat Great” FSI, which dropped on Jan. 2 nationally, focused on both nutrition and taste qualities of enjoying a satisfying steak, and featured three low fat, low calorie recipes on more than 39 million coupons offering $1 off beef with the purchase of A.1.The recipes were A.1. Steak House Wraps (3.5g fat/serving), Citrus Pepper Steak (3.5g fat/serving) and A.1. Chili (10g fat/serving), each with 300 calories/serving or less.The featured recipes were distributed via one freestanding insert (FSIs).

On January 16, the Beef Checkoff Program partnered with General Mills on a nationwide freestanding insert in Sunday newspapers as part of General Mills’ ‘Dinner Made Easy’ program.The coupon page featured beef as an entrée, pairing beef steak with Green Giant vegetables and Betty Crocker instant potatoes for a quick and delicious meal.The FSI reached over 50 million households, and offered consumers $1 off savings on beef in addition to cents off select General Mills products.

An ongoing effort, with the goal of giving retail meat department staff the information they need to effectively answer consumer questions and be a beef selling source, is the “Beef Training Camp” program.This initiative is designed to give state beef councils, key account managers and retailers the tools and resources needed to conduct the sessions.To date, Beef Training Camp has been very well received by both National Accounts and the State Beef Councils who appreciate the turnkey nature of the program.

Market research is yet another effort being conducted in order to keep tabs on the industry as a whole.The National Meat Case Study (NMCS) was conducted with the goal of taking a comprehensive look at the U.S. fresh meat case and generating trend analysis through a comparison of the 2002 study.The study also sought to identify changes in meat marketing during that time.Conducted across 43 key metro markets in over 100 major supermarket stores, the study was benchmarked in 2002 to help identify industry trends. Information was collected from more than 115,000 packages.Overall, the study concluded that the meat case must continue to evolve to be in step with consumer trends and meet the growing demands consumers have on this key destination department.

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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. The checkoff assessment became mandatory when the program was approved by 79 percent of producers in a 1988 national referendum vote. Checkoff revenues may be used for promotion, education and research programs to improve the marketing climate for beef.

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.