The Truth About Natural Beef

Transcription

1 fvoch-rs - The Truth About Natural Beef No Added Hormones Organc Generc Branded Beef 100% Vegetaran Det H No Added Antbotcs A Study of Industry and Publc Percepton A Natural beef company looks to meat department managers to answer the ndustry's pressng questons concernng publc percepton and the level of consumer and sales staff understandng.

2 So as each company tres to dfferentate tself from ts compettors, thousands of dfferent standards come nto beng. Ths nconsstent message confounds the buyng publc. Beyond that, ths statstc shows a great need for clarfcaton n Natural foods marketng. The next two questons cement ths need. Nearly 60% of meat managers agree that once the consumer better understands the dfference between generc and Natural, the consumer generally wll prefer the Natural opton. Even wthout the tde of 'Natural 1 an overwhelmng majorty of meat department managers agree that consumers wll prefer meat products wthout added hormones or antbotcs. So f Natural product companes make the extra effort to communcate effectvely the benefts of ther products, they are lkely to Thrd Party Certfcaton Do you thnk certfcaton for qualty handlng or taste by* ah ndependent thrd party would nfluence consumers 1 decsons to purchase Natural beef? Yes: 80.65% No: 19.35% As Natural and organc products engage n a battle of credblty aganst classc brand names and generc products, numerous organzatons for ndependent revew and certfcaton have arsen. It apprears as thought consumers trust the credentals of the thrd partes enough to put ther trust n ther recommendaton. As such, certfcaton (n whatever specalty wshed) by one of these credble organzatons s advsed Even wth labelng such as ths, consumers are often stll unclear on the meanng of the term "Natural."

3 \ took a combnaton approach. An onlne survey was placed on the 1 newly remodeled company web ste - effectvely becomng an on lne focus group. Ths queston- \ nare addressed such thngs as the personal level of understand- 1 ng concernng the Natural beef n dustry, standard rasng clams, the publc's percepton of sad clams, and other related topcs. Letters were sent out to all 1 grocery store meat departments currently partcpatng n the Panted Hlls Natural Beef pro gram. Mangers were asked to vst ; the webste and take the survey. 1 As a token of thanks, partcpants were sent a package of Panted Hlls Natural Beef Jerky and a \ Panted Hlls hat. KesponleDls: Demographcs Of the 150 meat department managers nvted to partcpate, ; only 31 responded. The survey team felt ths excellent turnout yelded a great amount of nformaton. At the begnnng of the study, the survey team knew they would come up aganst several obstacles that would lead to smaller response numbers. Meat department managers partcpatng n the study tended to be males between the ages of 30 and 60. These ndvduals are generally very busy. Meat departments are quck movng wth lots to do n too lttle tme. The researchers understood that ths sort of work envronment could lead to a general dsnterest - mostly dsnterest n takng the tme needed to take a survey or study. When ths group of people uses the Internet, t s probably from the comfort of ther home, not work. Most meat departments, unless they are new or newly remodeled, are not yet connected tecnologcally wth ther vendors and customers. Ths busness s based more on u a smle and a handshake," than anythng else. Ths s what made the probablty of reponse lower for ths group than t would be for others. Locatons of respondents vared, but collectvely were from only West Coast locatons. The length of tme they have been sellng Panted Hlls Natural Beef vared from less than a month to nearly 8 years. For each respondent, the demographcs of ther clentele vared greatly as well. Meat Cases such as ths one n Vancouver, Washngton are the backbone of the Natural Beef Industry.

4 The group of people who buy Natural Beef generally ft nto several categores: 1) Concerned about Healthy Lvng. People n ths category are concerned about a healthy lvestyle for themselves and ther famles. These are generally females age They value exercse and nutrton and strve to be the most nutrtous food products avalable - even at a premum prce. 2) Concerned about Safety People n ths category move toward the Natural and organc ndustry because of an ncreased concern about what goes nto the products they feed themselves and ther famles. They are wllng to pay a premum prce for products they can be assured to the safety of ther food. 3) Hgh-end Consumers wantng the Best of the Best. These consumers are concerned wth obtanng the best of the best - regardless of cost or effort exerted. Only the best n taste, texture and benefts wll do. Anaylss Introducton What follows s an analyss of the gathered nformaton from ths study. It ncluded an analyss of the followng topcs: branded beef, Natural vs. generc beef, sales staff knowledge, thrd party certfcaton. Natural vs. organc beef, clam of "No Added Antbotcs," clam of "No Added Hormones," and the clam of "100% Vegetaran Det." After presentaton of the raw data, analyss wll follow. Branded Beef Do vou fee that Branded Beef, programs have affected Sales n' your department? Yes: 93.55% \ No: 6.45% What percentage of consumers come n specfcally lookng for branded beef products? 0-25%: 54.84% 25-50%: 16.13% 50-75%: 22.58% %: 6.45% Whle branded beef s defntely! havng a postve mpact n meat \ departments, t's clear by ths! response ttat branded beef does' not yet have a large foothold n the meat ndustry. Nearly 30% of re-1 spondents sad that a majorty (over 50%) of ther customers come n; lookng for branded beef, ths could speak to several varables. A large majorty of the stores that I responded n the % span are hgh end markets that specalze; n hgh qualty products nclud- 1 ng a wde selecton of Natural and organc offerngs. Consumers I who tend to shop these types of,' estabhshments are more lkely to' seek out specfc brands and product' benefts that most branded beef I programs offer. t

5 Natural vs. Generc Beef J Can you fas a meat manager) \ easly explan the dfference between generc and Natural beef to your customers? I Yes: 100% ; No: 0% Regardless of ttle, consumers generally prefer meat wth no added antbotcs or added hormones. Strongly Dsagree; 0% Dsagree: 12.90% Agree: 48.39% Strongly Agree: 38.17% About ow often do you feld the queston, "wat's the dfference [between Natural and generc beef]?" 1 Never: 0% Sometmes: 45.16%! Often: 41.94% Usually: 12.90% Almost Always: 0% When beef s advertsed as "Natural beef" consumers generally under- stand what that means. Strongly Dsagree: 6.45% Dsagree: 51.61% Agree: 32.26% I Strongly Agree: 9.68% 4 Researchers were encouraged to note that of those managers who responded 100% of them feel that they are able to adequately explan the dfferences between Natural and generc beef. What s more encouragng, s that consumers are nterested n the dfference - they are askng questons and seekng nformaton. What's more dsconcertng s the report that most meat department managers beleve that consumers generally do NOT understand what Natural beef s or stands for. As seen n the statstcs, nearly 60% of meat department managers do not beleve consumers understand the meanng of Knowng the dfference between Natural and generc beef, consumers Natural. prefer Natural beef over generc when Ths ponts to a lack of clarfca gven the opton. ; Strongly Dsagree: 0% Dsagree: 6.45% Agree: 58.06% Strongly Agree: 22.58% I No Response: 12.90% ton and educaton among consumers. The largest factor that leads to confuson s a lack of defnton from a USDA level. Unlke the Certfed Organc Program, products labeled as "Natural" have no standard beyond the requred statement of "No artfcal ngredents and mnmally processed."

6 Natural Beef: The Emergng Market The Natural Beef ndustry s comng of age. Born out of a newly healthconscence socety, Natural Beef seeks to revolutonze supermarkets and butcher shops around the country by brngng to the classc meat case somethng consumers have never had: optons. For the frst tme n hstory, beef s branded as a nearly endless number of companes, farms and cooperatves ve for poston - poston on the plates and dnner tables of our great country. The ConHMY: Panted Hlls Natural Beef The MY: An Onlne Focus Group Panted Hlls Natural Beef s at The nformaton that Panted the forefront of the Natural Beef Hlls wanted to gather goes ndustry on the West Coast. They beyond the standard consumer! currently serve over 350 restau- and nto the meat departments rants, meat markets and grocery themselves. Not only dd they need stores around the country. Lke to know consumer perceptons, but most Natural Beef companes, they also level of understandng among follow a specfc lst of clams that meat sales staff, serve as ther rasng standards It was realzed that the meat and practces. They are as follows: department managers could be the key to both groups. Unlke the No Added Hormones company tself, the managers are No Added Antbotcs n daly contact wth consumers 100% Vegetaran Det ' takng requests, feldng ques- \ tons, and relayng nformaton. It As they evaluated ther current was decded that these managers operatons, they realzed that there would be the most effectve group! s a certan amount of confuson to queston. among consumers and sales staff In order to collect ths nformaton j alke as to the meanng of these n the most cost effectve manner, statements. So, wth help from the the Panted Hlls managment team. Western Sustanable Agrculture looked to the Internet. Whle ths Research and Educaton group, medum has grown, there are stll \ they set out to measure ths con- varous audences to whch the fuson and fnd the most effectve Internet s a foregn object, way to allevate t. To brdge ths gap. Panted Hlls

7 myeoelarandel Our catde are fed a 100% vegetaran det. Descrbe what they means to you. No Anmal By-Products: 77.42% No Chance of BSE: 3.23% Other: 9.68% No Response: 6.45% What s the pubhc percepton concernng ths clam? No Anmal By-Product: 22.58% No BSE: 22.58% Unsure/Don't know: 19.35% Publc would lke more nformaton on det content: 9.68% Other: 9.68% No Responses: 16.13% One of the man reasons consumers buy Natural beef products s because they know that the cattle are rased on a 100% vegetaran det. Strongly Dsagree: 0% Dsagree: 4.68% Agree: 48.38% Strongly Agree: 41.94% Whle most people understand that our vegetaran det guarantees the absense of anmal by-products n our anmal feed, few make the connecton to Mad Cow dsease - at least not enough to menton t. However, because so many respondents mmedately mentoned the lack of anmal byproducts t could be conjectured that managers and the pubhc so 10 closely relate anmal by-products to the rsk of BSE that they don't feel t's necessary to menton ths. Ths conjecture s a result of the fnal statstc n ths set. The lack of anmal by-products must be a vtal trat - 90% of meat manager respondants agreed or strongly agreed that ths trat s one of the "man reasons" that consumers are drven to buy Natural beef. The evdence speaks for tself. Fnal CommeDts Takng all of ths nformaton nto account, t s clear: educaton s the key. It must begn wth management staff - they must be well educated so that they can sell the product. From that, consumer educaton can take place. Informatonal brochures, flyers, and reference gudes that clearly and concsely explan even the most complcated of concepts. Only those educated on the varous aspects of the program wll be wllng to buy and sell the meat. There s an ever-present outcry for more nformaton. From ranch locatons to slaughter protocols, consumers are hungry - hungry for the detals and hungry for great tastng beef that has all of the added benefts that Natural beef provdes. The key s educaton.

8 The Bo Three The three most common characterstcs of Natural Beef products, regardless of brand, are as follows: NO ADDED HORMONES NO ADDED ANTIBIOTICS 100% VEGETARIAN DIET But how much does the "general publc" really understand about these key concepts? These three prncples are communcated to the publc as postve and mportant - but that doesn't mean they understand the deas behnd the statements. That was the purpose of the followng questons - to fnd out just how much buyng consumers - as well as meat sales staff and managers - understand about these central concepts. No Added Honpones As a meat department- manager, do you feel you can easly explan the clam 'No Added Hormones' to your consumers? Do you feel that you fully understand ths concept? Yes: 90.32% No: 9.68% Jf yes, what do you understand t to mean? Plan &r smple: no added hormones: 22.58% Deeper understandng: beyond the Bascs: 54.84% No Response: 22.58% Do you beleve that consumers understand "No Added Hormones" and what s meant by that clam? Yes: 67.74% No: 32.24% Jf yes, what do they understand t to mean? Plan & Smple: No Added Hormones: 22.58% Deeper Understandng: 12.90% Partally Understood: basc understandng, but confuson one or more key ponts: 19.35% Don't Understand: Responses ndcate that the publc does NOT understand the sgnfcaance ofthe comment: 3.23% Some Do, Some Don't: 6.45% No Response: 35.48% 7

9 Does ths clam nfluence consumers to buy Natural Beef? Never: 3.23% Sometmes: 41.94% Often: 12.90% Usually 25.81% Almost Always: 16.13% A large percentage of meat department managers feel that they understand ths concept. But what s t that they understand? Nearly 78% of respondents understand the role that hormones play n the rasng of Amercan cattle - wth nearly 71% of those havng a deeper understandng of not only the reasons behnd why t's utlzed, but also why Natural beef companes choose not to. Beyond the sales managers and staff members, the consumers need to have an understandng of the concept - they are the ultmate buyng power. Sadly, only 35% managers feel that consumers have a basc or deeper understandng of the concept. But a bt more encouragng s that the number of managers who felt that consumers completely don't understand at all was qute low as well. Ths leads to the hope that more consumers understand than managers know. Or, a majorty of meat department managers smply aren't knowledgeable n ths area, whch would account for 8 A local rancher sts horseback after ropng a calf on brandng day. the hgher percentage of managers who smply ddn't respond to the queston. However, t does seem that ths clam tends to mpact consumer buyng decsons. Collectvely, nearly 55% of managers reported that ths clam often, usually or almost always nfluences consumers to buy Natural beef From ths nformaton, the conjecture can be made that the clam of No Added Hormones, whle complcated, does have a hgher level of understandng than was prevously thought. However, more clarfcaton s needed. Recommended actons wll be located at the concluson of ths analyss. No Added Antbotcs As a meat department manager, do you feel you can easly explan the clam 'No Added Antbotcs' to your consumers? Do you feel that you fully understand ths concept? Yes: 77.42% No: 22.58%

10 Sometmes: Often: Usually: Almost Always: 35.48%' 9.68% 29.03% % Jf yes, what does t mean to you? Plan & Smple: No Added Antbotcs: 38.17% No Antbotcs for Lfe, ncludng those used from Growth Stmulants: 9.68% No Vaccnatons: 19.35% Other: 6.45% No Response: 25.81% Do you thnk the buyng publc understand "No Added Antbotcs" and what s meant by that clam? Yes: No: 48.39% 51.61% If yes, what do they thnk t means? Plan & Smple: No Antbotcs Added: 22.58% No Antbotcs or Vaccnatons: 12.90% People partally understand: publc understands, but are confused about certan aspects: 6.45% Publc doesn't understand: 6.45% Some do. Some don't: 6.45% No Response: 45.16% The level of understandng concernng ths clam s lower than other areas. Ths seems to be, by far, the area of most confuson. Whle 77% of meat department employees feel confdent n explanng the concept, another 23% don't. Those that do beleve they understand are sometmes mstaken. For example, 19% of managers respondng beleve that 'No Added Antbotcs' means that they are never gven any shots of any knds. Ths s, n fact, not true. Just as you would vaccnate a school chld. Natural cattle are generally vaccnated for basc dseases as recommended by veternary professonals. Even more alarmng, 65% of respondents beleve that consumers do not understand or only partally understand ths concept. The mportance of ths clam s seen n the next statstc. Once consumers understand the sgnfcance of the Does the clam "No Added Antbotcs nfluence consumers to buy Natural beef? Never: 3.23%

11 Natural vs. Organc I Doyou feel that there s more value \\ n Natural or Organc products? Yes: 96.77% ' No: 3.23% If so, why? Safety/Health Issues: 30.77% Taste: 11.54% : Prce (perceved added value because of, hgher prce): 15.38% ; All of the Above: 15.38% ' Other: 11.54% I No Response: 11.54% Can you easly explan the dffer- ence between Natural and Organ c products? Yes: 96.77% I No: 3.23% Do you feej there s more value [ n product labeled as Natural vs. products labeled as Organc? Natural: 80% I Organc: 20% Snce the ncepton of the 1 Natonal Certfed Organc Pro gram, there has been confuson between the Natural and Organc products. However, meat depart- 1 ment managers beleve there s added value n Natural or organc products - for a varety of reasons. Most revolve around the advertsed 1 benefts of the products: Safety, Health, and Taste. A somewhat unexpected response was Prce. Several respondents sad that they felt there was added value n these products because of the hgher prce. However, several commented that the prce was the most mportant factor n the consumers' decson makng process and because the prce was hgher than generc beef, consumers were less lkely to buy. Ths ponts back to a need to reemphsze the benefts. As consumers understand the benefts, those that value those benefts wll be wllng to pay a moderately hgher prce to get those benefts. The fnal queston n ths segment measured the perceved value of Organc products vs. Natural products. Due to a proofng error, few managers understood the ntent of ths queston. However, those that dd showed an unexpected answer. Accordng to the comments made wth ths queston, those repondents that voted for Natural dd so because they felt that the added cost needed to certfy products as Organc would push the cost of the products nto a range that was fnancally less vable. To them, certfed Organc s an added cost. They understand that Natural beef companes couldn't make ther clams f they were not backed by some sort of documentaton.

12 Prepared for Western Sustanable Argrcultural Research and Educaton. Prepared by: Panted Hlls Natural Beef, Inc pa ) go - s 0 ^o ^ - CO Q CD