Adding Value to Middle Meats

1
Adding Value to Middle Meats

• International Meat Secretariat
• Marketing/Communication Workshop VI
• Chicago, IL
• May 19, 2009
• John Baker

2
Increasing Carcass Weights
3
Heavy sub primal discounts cost the industry as a
whole

• AAA Striploin
• 13 up - 4.98
• 13 dn - 5.63
• AAA Rib Eye
• 13 up -4.86
• 13dn - 5.42
• AAA Top Sirloin
• 13 up - 2.58
• 13dn - 2.53

.65
.56
.05
Source Canfax YTD Report December 2008
4
The changing beef consumer

• Aging population
• Smaller families
• Time starved
• Declining cooking skills
• Diverse ethnic mix
• Shift to healthy/balanced eating plans
• Higher demand for quality

5
Traditional merchandising strategies meet
industry capabilities to deliver

• Techniques passed down through generations
• Simple in nature
• Consistent, well understood throughout delivery
  system
• Not flexible to meet changing consumer needs or
  demands
• Dont address changing economical factors in meat
  production

6
The Challenge

• To commercialize smaller portion middle meat
  steaks roasts that offer competitive price
  points that must,

• Enhance eating quality
• Have unique marketable attributes
• Appeal to growing market segments
• Utilize multiple middle meat sub primal cuts
• Can be fabricated by a case ready/purveyors or in
  house labour force
• Offer profitability opportunities to trade
  partners in both Retail and Foodservice sectors

7
In order to satisfy todays consumers, we need to
think beyond traditional merchandising/educational
strategies

• Next Generation of Beef Cuts
• Medallions
• Quick Roasts

8
Beef Medallions
Rib Eye

• Technical
• Single muscle
• Thick cut
• Devoid of all external fat
• Multiple sub primals
• Case ready or traditional

Striploin
Top Sirloin

• Marketability
• Smaller portions
• Lean
• Enhanced eating quality
• Competitive unit costs

9
Beef Quick Roasts
Rib Eye

• Technical
• Single muscle
• Consistent oval shape
• Devoid of all external fat
• Multiple sub primals
• Case ready or traditional

Striploin
Top Sirloin

• Marketability
• Smaller portions
• Enhanced eating quality
• Quick cooking
• Ease of use

• New images

10
Top Sirloin Fabrication
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Striploin Fabrication
12
Rib Eye Fabrication
13
New concepts offer the beef industry an
opportunity to compete in a growing market

• Increase market share through target market
  approach
• Enhance profitability of beef category for
  Retailers/FS Operators
• Offer competitive beef solutions vs competing
  protein choices
• Mitigate the impact of heavy carcass discounts to
  industry

14
Canadian and US industry partners are working
together to develop viable solutions for growth
15
Technical Resources Enhance Industry Capabilities

• Cuts charts/manuals
• DVD/webinars
• Financial analysis

16
Retail Applications feature multiple sub primal
cut options
17
New concepts are listed as a full time SKU in
over 80 of National retail sector
18
Industry supported marketing campaigns are
utilized to drive consumer awareness
19
Thank You!