AUTHORIZATION REQUEST FOR FY 2018

Transcription

1 AUTHORIZATION REQUEST FOR FY 2018 CBB Budget Category: Promotions Name of Contractor: North American Meat Institute Name of Organizations Subcontracting: End Date: September 30, 2018 AR #1801 P I. OVERVIEW A. AR Description: This processed beef promotion FY 2018 authorization request is a new proposal that offers a comprehensive campaign to address challenges and highlight the positive attributes of processed beef products with an emphasis on the choices available in the marketplace. We will directly communicate with consumers and channel marketers to position processed beef products favorably, as a nutritious part of a well-balanced diet that supports an active lifestyle. In addition, we will also reinforce that processed beef items are safe, wholesome and sustainable. Why a Processed Beef Authorization Request: The processed meat category represents over 34 billion dollars in sales*. Beef has approximately 5.9 billion in sales. Poultry is leading new product innovation. Opportunity for beef to increase share and better returns for producers. Processed beef products win in flavor, convenience and safety. However, other proteins like poultry are currently leading the category with new innovations. Through this AR, there is an opportunity for beef to increase its market share of the category. Innovation is driving new products into this category like snack sticks, meat bars, combo meat and other protein snacks and more. Promoting processed beef products is critical to the bottom line of producers. A major component of many ready-to-eat and ready-to-cook processed beef items is 50 percent chemical lean (CL) beef trim. Approximately 10 percent of the weight of a fed steer carcass ends up as 50% CL trim, which is essentially the largest wholesale cut on the beef carcass. Accordingly, the market value of the 50% CL trim, like the cut-out values of whole muscle cuts, directly affects live cattle prices. By creating demand for processed beef items, demand is created for 50% CL, which in turn bolsters live cattle prices and ROI for producers. That s why promoting this growing market segment impacts cattle prices. *source IRI report All meat is processed to varying degrees. This can include any meat product produced via the physical or biochemical transformation of meat from its native form (i.e. carcass, wholesale cut) into a final or finished product deemed desirable by consumers. For this purpose, the following definition of further processed, as NAMI 1801-P Page 1

2 defined by the American Meat Science Association Meat Science lexicon, will serve as the definition of processed meat. Further Processing: Any process where meat products undergo a transformation, beyond minimal processing, containing approved ingredients, and may be subjected to a preservation or processing step(s) through the application of salting, curing, fermentation, thermal processing (smoking and/or cooking), batter/breading, or other processes to enhance sensory, quality, and safety attributes. These products may include ready-to-cook and ready-to-eat products. Processed beef products can fit easily into healthy meals. Examples of processed beef items are corned beef, beef jerky, pastrami, beef bacon, lunch meats, hot dogs, and fully cooked beef based foods like meatballs and sausage. B. Costs for this AR: Source of Funding Direct Costs Implementation Total Beef Board/BPOC $ 400,000 $ 100,000 $ 500,000 Federation of SBCs (FSBCs) $ $ $ Other Potential Sources (describe) $ $ $ Total Cost $ 400,000 $ 100,000 $ 500,000 C. Start date: October 1, 2017 II. PLANNING INFORMATION FOR THIS AR A. Long Range Plan Core Strategies Addressed by This AR: Promote and Strengthen Beef s Value Proposition Grow Consumer Trust in Beef and Beef Production All activities conducted under this authorization request will support the Beef Industry Long Range Plan. Specifically, we will promote and strengthen beef s value proposition by communicating to consumers, influencers and key opinion leaders the value of processed beef s nutrition and health benefits, safety and sustainability. We will also revolutionize marketing to present processed beef as a convenient and nutritious staple of a healthy on-the-go lifestyle. Today s consumers along with the marketplace are dramatically different than just ten years ago. The beef industry needs to seek out new ways to directly connect with consumers in meaningful ways that give them permission to consume the products they enjoy. We will grow consumer trust in beef and beef production by improving processed beef s position in the marketplace. Enlisting key opinion leaders and advocates in NAMI 1801-P Page 2

3 the processed beef discussion will extend the message to their constituents. This strategy will greatly enhance our ability to reach and engage with the target demographics. Food safety continues to be a major driver for today s consumers and processed beef products have an excellent safety record. B. Committee(s) recommendations for work plan funded by this AR: The Consumer Trust Committee scored Tactic 1A: 3.6; Tactic 1B: 3.3; Tactic 1C: 3.4; and Tactic 1D: 3.5. Based upon committee recommendations, Tactics 1B and 1C were combined in this AR as 1B. C. Digital properties and target audience(s) addressed by this AR: Social: Facebook, Twitter, YouTube, Pinterest, Instagram Audience: Millennials and Millennial Parents III. PROGRAM INFORMATION FOR THIS AR A. Committee Name: Consumer Trust Specific Tactic Information: Tactic 1A: Consumer Outreach Export Growth Protect & Enhance Consumer Trust Beef s Value According to the International Food Information Council Foundation s 2017 Food and Nutrition Survey, 78 percent of consumers say they encounter a lot of conflicting information about what to eat or avoid. An opportunity exists to show how all foods can fit into a healthy, balanced diet so that individual foods or nutrients are not condemned by an optimal dietary pattern that is unlikely to reflect the reality of how people live today. In fact, the Academy of Nutrition and Dietetics (AND) embodies this approach. In its position on a total diet approach to healthy eating, the Academy states: that the total diet or overall pattern of food eaten is the most important focus of healthy eating. All foods can fit within this pattern if consumed in moderation with appropriate portion size and combined with physical activity. The Academy strives to communicate healthy eating messages that emphasize a balance of food and beverages within energy needs, rather than any one food or meal. [1] By demonstrating how processed beef products fit in a healthy dietary pattern associated with positive health outcomes, the conversation can be turned towards how these products can contribute to overall health and well-being and away from the focus on negative health outcomes. The goal of this tactic is to delve deeply into consumer attitudes towards processed beef. There are many misconceptions about the nutritional aspects of eating processed [1] Position of the Academy of Nutrition and Dietetics: Total diet approach to healthy eating. J Acad Nutr Diet. 2013;113: NAMI 1801-P Page 3

4 beef products. Today s variety of processed beef products allow them to fit into a healthy diet and in the busy lives of on-the-go millennials and millennial parents. AR #1801 P Nutrition, safety, convenience and flavor are all key drivers for today s consumers. Processed beef products win big in each of these key drivers, except for nutrition. However, innovation is creating healthier options for processed beef, which will significantly help reposition ready-to-eat and ready-to-cook beef items as a healthy and portable protein choice. Protein snacks are showing up everywhere, helping to drive the overall category. Connecting with our target consumers with a message of convenience, nutrition, safety and taste will create more demand for processed beef. NAMI will utilize existing research to support a fact based scientific position that will provide content for our communication tactic, including infographics and other consumer communications. Processed beef products provide the protein that active people want, along with the convenience and portability when dining at home isn t an option. Leveraging social media s strengths, we will connect and communicate directly with our target consumers and provide a positive message of how processed beef products fit into a busy lifestyle. Consumers want permission to eat processed beef products, and influencing our target demographic on social media will be key to our success. YouTube style videos have become very popular and dominate with millennials: Whether consumers are looking for a flatbread recipe or watching their favorite foodie celebrity, food is thriving on YouTube. New research from Millward Brown Digital, Firefly, and Google delves into how YouTube is fueling the foodie fan culture, with insights into the audiences who devour food videos. They're tuning in to watch videos that inspire, educate, or entertain. To better understand what's driving this growth in food content on YouTube, we worked with Millward Brown Digital and Firefly to analyze YouTube data and survey consumers about their viewing patterns. We found that while nearly half of all adults watch food videos on YouTube, millennials (ages 18 to 34) view the most food content, watching 30% more food content on YouTube, on average, then other demographics. According to a report published by Think With Google. Measurable objectives: o Reach goal: 1,200,000 o Engagement goal: 102,000 o Voice/KOL goal: 120 Develop four (4) consumer infographics to illustrate the variety of healthful processed beef choices and to counteract the current negative perceptions. Create four (4) engaging YouTube style videos showcasing a variety of beef product options. NAMI 1801-P Page 4

5 Create and execute four (4) themed social media campaigns using a consumer promotion (achieve 1mm media impressions). Conduct a nationwide survey of 2,000 consumers to measure their knowledge and attitudes about processed beef nutrition. The findings can be used as earned and social media hooks. Tactic 1B: Key Opinion Leader Outreach Export Growth Protect & Enhance Consumer Trust Beef s Value Focus on countering critics to shift the conversation around processed beef products. Processed beef (and all processed meat products) are sharply criticized by groups like IARC, WCRF and more. Animal rights groups like PCRM use processed meat nutrition as a proxy for animal rights agenda. The beef industry must counter claims and set the record straight! Educating key U.S. opinion leaders, nutritionists including those affiliated with the School Nutrition Association and other registered dietitians about the processed beef category, and the significant improvements being made in creating healthier options is key. A fact-based approach to comparing processed beef products to other common consumable products will highlight the many benefits of processed beef. Processed beef companies are listening to what consumers want and are responding with new formulations creating a variety of processed beef options. Creating processed beef advocates and key opinion leaders and arming them with accurate information on the safety record, nutritional facts and convenience of processed beef products will provide an alternative narrative more favorable to the beef industry. Measurable objectives: o Reach goal: 1,614,025 o Engagement goal: 12,025 o Voice/KOL goal: 2,060 Sponsor the 2018 Foodfluence Conference to reach key U.S. Food influencers. Provide key facts and information on processed beef to the 30 KOLs attending this conference. Create key opinion leader focused content: o Three (3) fact sheets that highlight the nutritional value of beef and highlight low and reduced sodium options o Three (3) infographics that compare the variety of processed beef products vs. other common consumable products. Create and send quarterly press release articles to the top 25 media markets, blogs and millennial publications. Goal of 10 media outlets to pickup/publish. Create a processed beef monthly eblast and deliver to health experts which includes process beef infographics, research and nutritional information. (minimum of 500 sent monthly with approximately 20% open rate). NAMI 1801-P Page 5

6 Host a New York City media briefing event featuring experts like Dr. Nathan Bryan and Dr. Jeff Sindelar, showcasing how products are made, and why they are safe and nutritious to a minimum of 25 attendees. Create partnerships with five (5) active lifestyle bloggers who have a minimum reach of 20,000 each. Distribute processed beef infographics at least once a year to school food service operators through the School Nutrition Association program. Reach approximately 8,000; Engagement: approximately 800 Tactic 1C: Channel Marketer Outreach Export Growth Protect & Enhance Consumer Trust Beef s Value Supermarkets and convenience stores account for approximately 82% of sales. The goal of this tactic is to create awareness of how processed beef products have changed and fit into today s consumer s lifestyle. Retailers are listening and watching consumer trends change, and want to be on the forefront of the latest product innovations. Working directly with channel decision makers, we will provide promotional support through educational materials focusing on nutrition, safety, flavor, convenience and sustainability. NAMI s membership has over 200 manufacturers of processed beef products. This network of companies will be key in creating a total go-to-market approach of delivering fact based messaging to the merchandising decision makers. Attending a supermarket trade show promoting the NEW processed beef story, will allow for one-on-one engagement with key decision makers and influencers. Building strong relationships leads to greater opportunities to get more processed beef products on the retail shelves. Measurable objectives: o Reach goal: 4,700 o Engagement goal: 750 o Voice/KOL goal: 750 Provide infographics developed in Tactic 1B to (ten) 10 corporate registered dietitians/nutritionists of national supermarket chains along with other health/science based materials. Develop marketing and merchandising collateral for 10 (ten) corporate supermarket buyers/category managers. Attend NAMI/FMI Meat Conference to promote processed beef products and conduct fifty (50) surveys to gauge channel marketer current perceptions. Distribute all Checkoff funded processed beef information to two hundred (200) processors including infographics, nutrition and research information. NAMI 1801-P Page 6

7 IV. DETAILED BUDGET SUMMARY AR #1801 P Beef Board/BPOC Funding Request: Strategy & Tactic Committee Name: Consumer Trust Tactic 1A: Consumer Outreach Program Manager Completion Date Direct Implementation Total Bill Sessions 09/30/2018 $ 162,850 $ 38,000 $ 200,850 Tactic 1B: Key Opinion Leader Outreach Bill Sessions 09/30/2018 $ 186,000 $ 42,000 $ 228,000 Tactic 1C: Channel Marketer Outreach Bill Sessions 09/30/2018 $ 51,150 $ 20,000 $ 71,150 Totals $ 400,000 $ 100,000 $ 500,000 AR Totals $ 400,000 $ 100,000 $ 500,000 Other Potential Funding Source(s): (Informational only) Strategy & Tactic Funding Source Completion Date Direct Implementation Total Committee Name: Consumer Trust $ $ $ Tactic 1A: Consumer Outreach N/A $ $ $ Tactic 1B: Key Opinion Leader Outreach N/A $ $ $ Tactic 1C: Channel Marketer Outreach N/A $ $ $ AR Totals N/A $ $ $ Total Cost Summary for All Funding Sources: (Informational only) Strategy & Tactic Committee Name: Consumer Trust Tactic 1A: Consumer Outreach Funding Source(s) Completion Date Direct Implementation Total All 09/30/2018 $ 162,850 $ 38,000 $ 200,850 Tactic 1B: Key Opinion Leader Outreach All 09/30/2018 $ 186,000 $ 42,000 $ 228,000 Tactic 1C: Channel Marketer Outreach All 09/30/2018 $ 51,150 $ 20,000 $ 71,150 AR Totals All $ 400,000 $ 100,000 $ 500,000 V. SUPPLEMENTAL INFORMATION A. Will all of the work detailed in this AR be completed by the end of the fiscal year? If not, please provide an explanation. Yes B. Changes from FY 2017 Approved AR: This is a first-year AR C. Subcontractor information (agencies, etc.): NAMI 1801-P Page 7

8 Name of proposed subcontractor: Streetmarc Advertising & Promotions LLC. Will all work with subcontractors be competitively bid? If not, why not? No. The subcontractor has assisted with other checkoff-funded programs and has a proven track record of achieving positive outcomes. D. Identify any relationships between this AR and projects previously funded by the Operating Committee: This is a new, first year AR with no previous funding. E. Summary of Prior Year AR Budgets and Expenses: First-year AR FY 2017 Approved Budgets AR Name/ # N/A CBB/BPOC FSBCs Other Source(s) Total Direct Cost Impl. Total AR Totals AR Name/# N/A AR Totals CBB/BPOC FY 2017 Actual Expenses (through May 30, 2017) FSBCs Other Source(s) Total Direct Cost Impl. Total F. Historical Summary of Budgets and Expenses: (includes all funding sources listed in original AR) AR Name / # N/A Total Approved Budgets Total Actual Expenses FY 2016 FY 2015 FY 2014 FY 2016 FY 2015 FY 2014 AR Totals NAMI 1801-P Page 8

9 POTENTIAL PARTNERSHIP LIST FY 2018 AR Number: 1801 AR #1801 P Please list all potential partners/collaborators* for the related AR and details including the nature and extent of collaboration: (include any partnership and/or collaborations with a third party by identifying the third party, the nature of the collaboration and extent of the collaboration.) 1. Bloggers (TBD): We will develop a relationship with bloggers to promote processed beef products. 2. Nutritionists (TBD): We will develop a relationship with corporate registered dietitians/nutritionists to promote the nutritional attributes of processed beef products. 3. Brands/Products/Manufacturers (TBD): We will partner with selected North American Meat Institute members who manufacture and market processed beef items in the development of new items and marketing strategies. 4. Foundation for Meat and Poultry Research and Education: We will collaborate with the Foundation on nutritional and food safety messaging and research. 5. Retailer Channel: (Retailers TBD) 6. Other Channel: Will seek partnership with Amazon or other meal kit providers. *Partners/collaborators does NOT include subcontractors listed in AR section V.C. Subcontractor Info. Required per USDA Letter dated June 19, 2013 NAMI 1801-P Page 9