Bison in the Global Perspective: Exotic Meat or The 21st Century Sustainable Premium Protein?

Dr. David Hughes Emeritus Professor of Food Marketing

International Bison Conference Big Sky Resort Big Sky, Montana, USA Thursday, July 6th, 2017

@profdavidhughes

www.supermarketsinyourpocket.com

Traffic Issues in Montana The Morning Traffic Can Be Dreadful in Wales, Too! Global Future for Animal Protein Looks Bright … Particularly in Emerging Markets. 60% of Global Meat Market Growth Will Come from Asia, and Most of This from China That’s a Lot of Meat and Humongous Amounts* of Soybeans!

* 86 million t. soybean imports to China for 2016/17 (25% world production)

Health 58% Saving money 21 Animal welfare concerns 20 Food safety concerns 19 Environmental concerns 11

Groups more pre-disposed to reduce meat consumption: • Women • Older consumers (65+ years)

Source: NatCen Survey of British Social Attitudes, February 2016 US Red Meat Availability Fell from 132 lbs. in 1970 to 95 lbs. in 2014

Source: USDA ERS, 2017 by 2015 and $170 Million by 2016

Bill & Melinda

Li Ka-shing

Backed by Well-Heeled Investors (October 10th, 2016) Flexitarian Trend: • part-time vegetarian • meat-reducer • driven by health and/or social concerns • and, economy, too?

Ground Beef and Haricot Beans Mixture Vegan-Friendly Burger

Flexitarian Burger Quorn is a Meat Substitute (myco-protein) & Replicates Chicken Particularly Well It’s Better for Bison, Too!

Mad Human Disease?: A Case Study (February 21st, 2017) Recommends 460 Grms. per Week NOT 460 Grms. for Dinner

Source: Dietary Guidelines, Netherlands Nutrition Centre, March 2016 Subtle As Ever, PeTA Places Controversial Advertisements on Huge Display in View of the Urban Freeway in Dallas!

June 28th, 2017 1992

Wonderfully Old-Fashioned! Now, “What’s for Dinner?”: • Chinese • Pasta • Italian Gone .. the way of all flesh! • Tapas • Takeaway Or, Increasingly for Millennials “What’s Dinner?”! Canadian beef consumption p.c. down by one-third since 1980 Powerful Global Consumer Trends Powerful Global Consumer Trends Powerful Global Consumer Trends Powerful Global Consumer Trends

NRA 2017 Single diners 42 2015 30 mins 2 diners 36 1990 45 mins 3 diners 11 1980 60 mins 4 or more 11 1950 90 mins diners

5% more For healthy 22% more For better taste Considerably more For ready made meal solution!

Source: Kantar Worldpanel UK

Increasing Complexity Driving Food Purchasing Behaviour

It’s About VALUE & VALUES Including:

• savvy (value) shopping • local/national - place of production - care of local economy - local is fresh/healthier • provenance • heritage • sustainability • animal welfare • worker welfare

Source: Deloitte Inc. Food Value Equation Survey, 2015, IGD and Hughes “How’d You Like Your Meat?”

“With Adjectives, Please”:

• free-range ….; • vegetarian-fed … • American/Canadian .... • Durham/Triple U Ranch … • Rocky Mt. Buffalo Ranch …. • rare breed …. • heritage …. • Omega-3 rich … • organic ….. • happy … • environmental friendly … • dry-aged • “original” Paleo Diet … Not All UK Chicken Meat is Inexpensive Meat: Chickens with Adjectives are £18/kg. ($23)

Bacon Made From Pigs with a College Education!

(and face a bewildering barrage of logos & claims)

• Antibiotic-free • Hormone-free • Additive-free • Campylobacter-free • Salmonella-free • E.coli-free • GMO-free • Woody-breast-free • Free-range • Gluten-free • Deforestation-free Source: Ellison et al, University of Nebraska, 2017

In America, If Something Is Worth Doing, It’s Worth Doing to Excess!

I’d Doubt that the Average Wild Turkey Drinker is Hugely Concerned About Whether The Grains in His Bourbon Are GMO or Not!

• Do you share my (and my peer group’s) values on social, environmental, business issues? • Are you listening to me and how quickly can I contact you (re. food issues, existing and new products, etc.)? • What are you doing to excite me and my taste buds? • What’s the story about your food, its ingredients and producers – provenance, seasonality, heritage, etc.? • How are you helping me be in charge of my health & wellness? Make sure it’s fast, easy and effective! • Can you help me to understand more/have fun/impress my friends about food, cookery, nutrition? • Are your products available when/wherever I want? Eat Right Eat Real*: North America’s Premium Red Meat In-Tune with Consumers’ Values, Health, Nature & the Environment

* © Dennis McKnight, The Innovators (Canada) “Big Food” seeking to expand its product portfolio into a more Millennial-friendly area and much higher growth in sales

Bison (Buffalo) are Blessed as Major Companies Seek the “Green” Halo and Heritage Associated with the Live Animal. Exploit This Ruthlessly! Millennials Want to Cook & Impress Their Friends But They Need Help – Meal Kits Provide a Solution

Source: “The Why Behind the Buy”, ACOSTA 13th Annual Survey, USA, 2016 *

* Bill Niman’s Ranch Dynamic Future: Multi-Channel Routes for Food to the Consumer Restaurant Meals Delivery Electronic Platforms in the USA China: Unequivocally, The Export Market with the Highest Potential

*

* Incomes +$30,000 per year

Premium Export Target: Chinese Millennials

• 400+ million of them (19-35 year old) • “Little Emperors/Empresses” generation (only child) • socially-conscious but, also, narcissistic • hugely internet-connected/social media savvy • world-leading on-line shoppers • free-spenders • privileged, entitled, enjoy the good life & getting better • privileges & status symbols approved and expected • North American product/image associations are cool Xinxin with New Baby Wang Economics Professor with a Banker Husband.

Lives in Apartment with In-Laws Downtown Hangzhou City*.

Singles’ Day November 11th, 2016 She Purchased 90+ Items On-Line Including Imported Meat**, Fruit, Wine

Alibaba Sales 11/11/16 $17.8 Billion

* G20 Global Economic Summit held in Hangzhou, 2016

** Purchased an extra fridge to store frozen goods bought on-line

Global Differences In What Shoppers Value in Meat A Knot of Frogs Hangzhou, China

“Free Range” Eggs or Meat Popular for Food Safety Attributes NOT for Animal Welfare

• key signal of value of relationships • gifting helps to secure future needs (reciprocity) • gift-giving frequency & value increasing each year • for “ordinary” urban folk, range $80-400 per gift • price and perceived quality hugely important • food is seen as an ideal gift (great practicality and can indicate giving “health” to recipient) • over 50% of gifts given in China are food • imported foods have built-in gift appeal (may indicate greater respect and sincerity) • North American foods are firmly on the “gift map”

Source: Mintel, 2016

Lord & Lady Seaford

In the UK, Bison/Buffalo are Exotic & We’re Not Sure Whether to Eat Them or Cuddle Them! Keep Bison Meat Well Away from Meats identified as Being EXOTIC!

Farmers Are Fashionable (But Not EVERY Farmer Should Meet a Consumer!) The Story is About The Farmer

Don’t Put Bison in a Bubble! “I’m Willing to Pay Substantially More for Bison than Beef Because” Finish the Sentence for the Customer! CONTACT POINTS:

e-mail: [email protected]

Telephone contact: mobile +44(0)7798 558276 @ProfDavidHughes Retail Blog: www.supermarketsinyourpocket.com