Understanding Tomorrow's Consumer

Understanding Tomorrow's Consumer

Understanding Tomorrow’s Consumer Beef industry experts John Lundeen and Joe Pawlak discussed beef consumer trends. business. Sixty-percent of all eating occasions from foodservice are global cuisines. “It goes beyond just Italian, Mexican, Chinese,” Pawlak said. “We have all these different products with ethnic influences that are finding their way into menus. We’ve got everything from chutney to pico de gallo, aioli, sriracha. Even Subway has a sriracha sauce on one of their sandwiches today. So ethnic flavors are taking over foodservice overall. Not just in fine-dining or white table cloth restaurants but all the way down into fast food.” What does this mean for beef? Pawlak points out that there will likely be an evolution in the chain of supply to allow for further processing of specific cuts for specific meals. Perhaps an easier, smaller roast will be more popular for home use, and value cuts will be more in demand because the flavoring takes center stage. Ground beef ohn Lundeen, National is important to those individuals fusion foods, food trucks, one “When the recession started Cattlemen’s Beef Association who are making buying decisions. pot meals, meat with meat and in America, ground beef sales J(NCBA) senior executive of sandwiches are all trends that didn’t go down,” Lundeen said. market research, and Joe Pawlak, Not meat and potatoes anymore beef needs to find a way to fit “Because I could take my family a Technomic vice president, The first thought-starter Lundeen into, according to Lundeen. out and have a great burger.” spoke about beef consumer identified was “It’s not meat and A major change has been In fact, ground beef sales have trends at the Hereford Genetic potatoes anymore.” the drop in numbers for roasts risen. From 2011 to 2013, ground Summit Friday morning, Sept. 5. “This traditional meal of a being purchased. In just 10 years, beef sales increased 2%. Being knowledgeable about the steak with potatoes on the side there’s been a 30% reduction in “Two percent, that doesn’t beef consumer is critical to the is not where the food industry people eating roasts. Because sound like much,” Lundeen said, Hereford industry because while is going,” he said. “And that has roasts were the beef industry’s “but you’re talking hundreds of Hereford seedstock producers implications for our products value whole-muscle cut, that millions of pounds of additional might consider commercial because people are going decline has an impact. ground beef eating.” cattlemen their primary to expect beef to do a lot of “Roasts are too big,” Lundeen The reason is that ground customer, those commercial different things in the future. said, “If I have a small household, beef is very versatile. Americans Hereford-influenced cattle They’re going to expect it to take and I cook a roast, I’d be eating it can make tacos or skillet meals ultimately become the food on flavors. They want a product all week. It’s just fallen out of favor. or burgers with ground beef in consumers’ plates. that’s moist and that holds up What’s growing is Mexican dishes. a short amount of time. It’s also Lundeen and Pawlak spoke in a kitchen environment or a Other things that are growing easy to stretch and serve a family about what is going on with supermarket deli.” are meal kits, sandwich meals with a moderate amount. consumers right now and what He listed six directions the and skillet meals. And beef has to We have the beef version of they want from beef. They also food industry is going instead of perform in all those situations.” the chicken nugget in the burger, spoke about the grocery and the traditional sit-down supper of Pawlak said ethnic foods he added. It is beef’s handheld foodservice industries and what meat and potatoes. Ethnic foods, have taken over the restaurant solution. The burger is also customizable, it’s a crowd and family favorite, it’s tasty. It also has an upside; by adding other meats or gourmet toppings, ground beef can be made fancy. In fact, Pawlak talked about “Healthy eating has changed how that’s exactly what “better burger chains” have done. To in the consumer’s eye. Fresh differentiate themselves from fast food chains like McDonald’s or is the new healthy.” Wendy’s, places like Five Guys, Smashburger and Mooyah, to — Joe Pawlak name a few, have struck gold with a more expensive but better, bigger, more customizable burger. Moving forward, Lundeen said, producers as an industry 30 / October 2014 Hereford.org need to be aware and keep ground beef as their value offering. It’s a big part of sales, “We have to and there is an expectation of quality. He said to expect continue to tell the blending in the future. There story about how we is already some blending of chicken and beef and beef and are caretakers of the mushrooms. Also, he said to expect more toppings and more land and caretakers creativity with burgers. of each animal. It It’s a small meal or snack will become a more “We are seeing a lot more small meals for a variety of reasons,” important thing in Pawlak said. A few reasons for that trend the future.” are smaller households, solitary — John Lundeen eating and people eating less but more often for health reasons. Moms are more like short-order cooks now, preparing one thing the money and splurge on steak. The production story in terms of consumer benefits for themselves, something else It must be a consistently excellent “I want to know where my food — because it gets you a quality, for the kids and a different meal experience or consumers won’t came from,” Lundeen said. “The tasty, safe product. Every one of for dad. The fourth meal, a small pay for it the next time. consumer doesn’t want to know our practices we have to be able meal or snack after dinner before More and more consumers are a lot, but they want to know a to talk about in that context so it bed for those who stay up late, is buying ready-to-eat-food, like a little. Breed name matters, where makes sense to people.” also a new phenomenon. rotisserie chicken, at supermarket was it raised, and what type of The statistics show that now delis. These delis are convenient beef is it? All those things matter Price matters 47% of eating occasions are alone, because the consumer is already to the consumer.” The demand for beef is and 50% of all eating occasions there shopping and the food has Consumers expect continuous exceptional right now, Lundeen are snacks. This information perceived value but the food must improvement, he added. They said, and the consumer is creates problems on the retail side also hold up under a heat lamp or don’t necessarily expect perfection, spending more on beef but for beef. in a refrigerator after preparation. but they expect commitment to buying it less frequently. Retailers Lundeen recently completed Pawlak points out that improvement. That’s why beef- and restaurant operators are a thought-leader survey with healthful eating has changed quality-assurance programs are nervous about beef prices, though, supermarket executives. The for consumers. Where it was all critical to keep ratcheting up the and the impact of these prices on results show that to deal with about what you can’t have — i.e. quality of the product. their businesses. In the future, rising prices and the demand low calorie, low fat and didn’t “Especially with millennials, pork and chicken prices are likely for smaller portions, grocers are taste good — now it’s OK if it’s you’ll hear about sustainability to come down, Lundeen warns. doing three things: either cutting got fat and calories as long as it’s and social responsibility,” And if the economy continues steaks thinner, cutting steaks into natural and wholesome. It’s all Lundeen said. “We have to only slow growth that will portions or starting with a smaller about fresh food in moderation continue to tell the story about certainly become a factor. That’s primal cut. now. Key marketing words with how we are caretakers of the land why efficiency in production is as None of these is a perfect appeal are fresh, unprocessed, and caretakers of each animal. critical as ever, so beef can remain option. Thinner steaks result in local, no preservatives, made- It will become a more important as affordable as possible. overcooking, which compromises to-order, nutritious, premium, thing in the future.” Finally, Lundeen added that the eating experience. Cutting artisan, authentic, seasonal, All retailers are saying we need international demand is a big steaks into portions requires real, homemade. to have a set of animal welfare wildcard that can fluctuate easily labor, which reduces grocer The takeout industry has standards, Lundeen added. and often. profit. Starting with small blossomed to 40% of all “Consumers mistrust science Visit the “Summit Proceedings” primals would require a smaller foodservice sales. And the most or they find their own science page at HerefordGeneticSummit.com carcass, which reduces the important factor to consumers on the Internet. We have to do to watch presentations, download efficiency of the beef business. when purchasing food to go a better job of telling our story slides and listen to audio “Moving forward, we are seeing is that it must taste as good as about growth enhancement interviews of speakers. HW more further processing taking when dining in.

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