Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Challenges abound
- Foreign trade helps U.S. suppliers sell more
- Restaurants compete for shrinking food dollars
- Declines in 2005 set market back for years
- Economy and food budgets shrink
- Changing health trends affect both amount and type of red meat demand
- Recalls keep beef in the news
- Beef packing consolidation continues and draws fire
- FDM frozen and refrigerated red meat
- Innovations benefit producers and consumers
- Consumer usage and preparation of red meat
- Consumer purchasing and knowledge
- Consumer attitudes toward meat
- Black respondents’ views on beef differ from whites’ and Hispanics’
- Hispanics hold “greener” views on meat
Insights and Opportunities
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- Emphasize tenderness in beef
- Promote the cost savings of pre-seasoned, marinated, and convenience meats
- Remind consumers of the “hidden costs” of eating out to encourage home cooking
- Liven up circulars offering meals for under $10
- If you want natural and organic red meat, eat at home
- The price is right for pork
Fast Forward Trends
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- Simplicity and convenience
- What it’s about
- What we’ve seen
- Implications
- Trading Up, Trading Down, Trading Over
- What it's about
- What we've seen
- Implications
Market Size and Forecast
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- Key points
- Diet trends, food safety concerns affect sales
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- Figure 1: Total U.S. sales and forecast of red meat, at current prices, 2003-13
- Figure 2: Total U.S. sales and forecast of red meat, at inflation-adjusted prices, 2003-13
- Wal-Mart sales
Competitive Context
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- Key points
- Prices influence choice of meat
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- Figure 3: Protein sources’ retail and wholesale prices, 2003-09
- Per capita consumption of beef on the decline, while pork rises slightly
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- Figure 4: Per capita red meat consumption, 2006 and 2008
- Geopolitical matters impact foreign trade activity
- Red meat imports on the decline due to labeling requirements and low supply
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- Figure 5: Beef and veal imports, 2005-07 and January-September 2007 and January-September 2008
- Exports struggling to top pre-2003 levels
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- Figure 6: Beef and veal exports, 2005-07 and January-September 2007 and January-September 2008
- Import levels of Mexican pork in jeopardy
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- Figure 7: Pork imports, 2005-07 and January-September 2007 and January-September 2008
- Relations with Mexico and Russia have potential to affect pork exports
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- Figure 8: Pork exports, 2005-07 and January-September 2007 and January-September 2008
- Restaurants and retail competing for food dollars
- Competing with a meatless lifestyle
Segment Performance
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- Key points
- Market has yet to recover from 2005 setback
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- Figure 9: U.S. sales and forecast of red meat at current prices, by segment, 2003-13
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- Figure 10: U.S. sales of red meat, by segment, 2006 and 2008
Segment Performance—Beef
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- Key points
- BSE setback and recalls continue to hamper growth
- Muscle cuts slightly outweigh ground beef
- Price increases drive sales
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- Figure 11: U.S. sales and forecast of beef, 2003-13
Segment Performance—Pork
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- Key points
- Lower demand and prices
- Several new natural pork lines introduced
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- Figure 12: U.S. sales and forecast of pork, 2003-13
Segment Performance—Other Meats
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- Key point
- Lunchmeat gains dampened by mutton/goat/game declines
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- Figure 13: U.S. sales and forecast of other meats*, 2003-13
Retail Channels
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- Introduction
- Key point
- Supercenters grab share from supermarkets
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- Figure 14: U.S. retail sales of red meat, fish, and poultry, by retail channel, 2006 and 2008
Retail Channels—Supermarkets and Specialty Food Stores
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- Key points
- The $10 meal
- Promoting private label meat
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- Figure 15: U.S. sales of meat, fish/seafood, and poultry at supermarkets and specialty food stores, 2003-08
Retail Channels—Supercenters and Warehouse Clubs
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- Key points
- Strong sales for low price destination
- Dinners under $10 and daily meal suggestions online
- Supercenters downsize
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- Figure 16: U.S. sales of meat, fish/seafood, and poultry at supercenters and warehouse clubs, 2003-08
Retail Channels—Packaged Red Meat Only
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- Key point
- Share smaller but growth in mass channels still evident
- Private labels versus case ready in refrigerated meat section
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- Figure 17: FDMx sales of packaged red meat, by retail channel, 2006 and 2008
- Figure 18: FDMx sales of packaged red meat at food stores, 2003-08
- Figure 19: FDMx sales of packaged red meat at drug stores and mass merchandisers, 2003-08
Market Drivers
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- Key points
- Economy tightens food budgets
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- Figure 20: Seasonally adjusted unemployment rate, 16 years and older, by month, 2000-08
- Beef recalls affect more than beef
- Demand for natural and organic meat drives pricing
Leading Companies
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- Key points
- Consolidation of beef industry continues
- Shortages of kosher beef
- High feed prices making meat production unprofitable
- Major suppliers
- Tyson Foods Inc.
- Cargill Meat Solutions
- Smithfield Foods
- Swift & Company
- Natural and organic producers
- Coleman Natural Foods
- Laura’s Lean Beef
- Niman Ranch
Brand Share—FDMx Sales Of Refrigerated And Frozen Packaged Meat
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- Introduction
- Key points
- Recalls affect largest FDM supplier
- Natural suppliers’ sales jump
- Mid- and value-priced branded frozen meats grow
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- Figure 21: FDMx brand sales of refrigerated and frozen packaged meats in the U.S., 2007 and 2008
Brand Qualities
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- Key points
- Bubba Burger
Innovation and Innovators
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- New cuts of beef with catchy names lure cash-strapped consumers
- Angus comes to private label
- Gluten-free
- Uncured increasingly appearing
Advertising and Promotion
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- Key points
- Message: Red meat as a luxury
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- Figure 22: Omaha Steaks television ad, 2007
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- Figure 23: Certified Angus Beef television ad, 2008
- Message: If it’s not quick, at least it’s easy to prepare
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- Figure 24: H.E.B Fully cooked Brisket television ad, 2007
- Message: Red meat can be healthy
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- Figure 25: Yama Beef television ad, 2008
- Message: New cuts mean steak is still an option even when money’s tight
Usage
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- Key point
- Despite rising prices, red meat is a key part of most diets
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- Figure 26: How often red meat/poultry/fish/seafood are eaten, by type, September 2008
- Dollar and value menus may beat out cooking burgers at home
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- Figure 27: Incidence of household use of red meat, by household income, April 2007-June 2008
- Consumers shy away from cooking trial and error with expensive cuts
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- Figure 28: Types of red meat eaten, at home vs at restaurants, September 2008
- Older adults more likely to include red meat in their meals at home, but not when dining out
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- Figure 29: Average number of meals eaten per month that include red meat, at home vs at a restaurant, by gender, age, race/Hispanic origin, region and presence of children, September 2008
How Meat is Prepared
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- Grilling is preparation of choice for beef
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- Figure 30: How red meat/poultry/fish/seafood is prepared, by type, September 2008
- Men prefer the grill and the microwave for preparation
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- Figure 31: How beef is prepared, by gender, September 2008
- Older consumers more likely to prefer their meat medium rare
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- Figure 32: Preferences for red meat doneness, by age, September 2008
Purchase and Consumption
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- Female shoppers suffer sticker shock
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- Figure 33: Purchase and consumption behaviors regarding red meat, by gender, September 2008
- Younger consumers need to see the benefits of eating red meat
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- Figure 34: Purchase and consumption behaviors regarding red meat, by age, September 2008
- Celebrity tie-ins may help to educate consumers
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- Figure 35: Purchase and consumption behaviors regarding red meat, by household income, September 2008
Attitudes and Motivations
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- Older consumers least confident in safety of food supply
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- Figure 36: Attitudes regarding red meat and food safety, by age, September 2008
- Chicken cited as posing greatest risk of causing illness
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- Figure 37: Attitudes and opinions regarding red meat/pork in comparison to other meat types, September 2008
Race and Hispanic origin
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- Key points
- Whites significantly more likely to use beef
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- Figure 38: Incidence of household use of red meat, by race/Hispanic origin, April 2007-June 2008
- Black respondents’ preference for oven cooking may be tied to quality of meat
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- Figure 39: How beef is prepared, by race/Hispanic origin, September 2008
- Black respondents much more likely to prefer their meat “well done”
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- Figure 40: Preferences for red meat doneness, by race/Hispanic origin, September 2008
- Hispanics more open to meat alternatives
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- Figure 41: Purchase and consumption behaviors regarding red meat, by race/Hispanic origin, September 2008
- Black respondents not convinced that red meat is a healthy option
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- Figure 42: Attitudes regarding health, diet and red meat, by race/Hispanic origin, September 2008
- Black respondents least likely to doubt safety of food systems
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- Figure 43: Attitudes regarding food safety and environmental concerns, by race/Hispanic origin, September 2008
Cluster Analysis
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- The Simply Red
- Who they are
- Opportunity
- Big Reds
- Who they are
- Opportunity
- Light Reds
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 44: Red meat clusters, September 2008
- Figure 45: How often red meat is eaten, by cluster, September 2008
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- Figure 46: How red meat is prepared for home consumption, by cluster, September 2008
- Figure 47: Attitudes regarding red meat, by cluster, September 2008
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- Figure 48: Types of red meat typically eaten at home, by cluster, September 2008
- Figure 49: Types of red meat typically eaten at restaurants, by cluster, September 2008
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- Figure 50: Preferences regarding beef preparation, by cluster, September 2008
- Figure 51: Purchase and consumption behaviors regarding red meat, by cluster, September 2008
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- Figure 52: Attitudes regarding diet, health and red meat, by cluster, September 2008
- Cluster demographics
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- Figure 53: Red meat clusters, by gender, September 2008
- Figure 54: Red meat clusters, by age, September 2008
- Figure 55: Red meat clusters, by household income, September 2008
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- Figure 56: Red meat clusters, by race, September 2008
- Figure 57: Red meat clusters, by Hispanic origin, September 2008
- Cluster methodology
IRI/Builders—Key Household Purchase Measures
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- Consumer insights—Red meat
- Frankfurters
- Household purchase activity
- Brand map
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- Figure 58: Brand map, selected brands of frankfurters, buying rate, by household penetration, 2007*
- Brand leader characteristics
- Key purchase measures
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- Figure 59: Key purchase measures for the top brands of frankfurters, by household penetration, 2007*
- Overview of refrigerated meat/poultry products purchases
- Refrigerated uncooked meats
- Household purchase activity
- Brand map
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- Figure 60: Brand map, selected brands of refrigerated uncooked meats, buying rate, by household penetration, 2007*
- Brand leader characteristics
- Key purchase measures
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- Figure 61: Key purchase measures for the top brands of refrigerated uncooked meats, by household penetration, 2007*
- Overview of luncheon meats purchases
- Refrigerated sliced lunchmeat
- Household purchase activity
- Brand map
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- Figure 62: Brand map, selected brands of refrigerated sliced lunchmeat, buying rate, by household penetration, 2007*
- Brand leader characteristics
- Key purchase measures
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- Figure 63: Key purchase measures for the top brands of refrigerated sliced lunchmeat, by household penetration, 2007*
- Refrigerated non-sliced lunchmeat
- Household purchase activity
- Brand map
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- Figure 64: Brand map, selected brands of refrigerated non-sliced lunchmeat, buying rate, by household penetration, 2007*
- Brand leader characteristics
- Key purchase measures
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- Figure 65: Key purchase measures for the top brands of refrigerated non-sliced lunchmeat, by household penetration, 2007*
Appendix: IRI/Builders Panel Data Definitions
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- IRI Consumer Network Metrics
Appendix: Other Useful Consumer Tables
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- Household consumption of red meat
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- Figure 66: Incidence of household use of red meat, by age, April 2007-June 2008
- Attitudes regarding health, diet and red meat
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- Figure 67: Attitudes regarding health, diet and red meat, by age, September 2008
- Attitudes regarding red meat and the environment
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- Figure 68: Attitudes regarding red meat and environmental concerns, by age, September 2008
Appendix: Lamb and Mutton Imports/Exports
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- Lamb
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- Figure 69: Lamb imports, 2005-07 and January-September 2007 and January-September 2008
- Figure 70: Lamb exports, 2005-07 and January-September 2007 and January-September 2008
- Mutton
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- Figure 71: Mutton imports, 2005-07 and January-September 2007 and January-September 2008
- Figure 72: Mutton exports, 2005-07 and January-September 2007 and January-September 2008
Appendix: Trade Associations
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