Market Research Consumer Insights

Market Research Consumer Insights Why Don t Consumers Eat Beef More Often? Market Research Team: John Lundeen Rick McCarty Wendy Neuman 2

Very Important Questions Here are some questions that your Market Research team is concerned about 1. Which is more preferred for dinner beef or chicken? 2. On what attributes do consumers think beef beats chicken and vice versa? 3. Are consumers freaked out about beef prices right now? 4. What are the top concerns that cause consumers to limit beef consumption? 5. Do consumers have a favorable view of ranching? 6. Do consumers eat beef less often because of Meatless Mondays? 7. Are consumers comfortable with use of antibiotics and technology in cattle raising? 8. Did the pink slime media circus affect consumer perceptions of ground beef? 9. Do younger (Millennial) parents feed their children lots of nutritious beef? 10. Is defrosting beef a barrier to increased beef consumption? -and, of course 11. What s the meaning of life? 3

Agenda Consumer Beef Index Update How do Consumer feel about beef prices? Limiters of Consumption Consumer Image Index Perceptions of Ground Beef Millennial Parents and Beef Defrosting beef.and a surprise for you all Questions 4

Consumer Beef Index Update Consumer Beef Index (CBI) July 2012 5

Beef Favorability Segmentation The Bucket Question 6

Beef Buckets Beef Favorability Segmentation 28% Bucket 1 31% by 2013 Chicken 23% 26% 22% 33% 26% 30% 27% 28% 27% 30% 27% 25% Bucket 1 Positives strongly outweigh negatives 45% 70% 73%* 48% 2010 47% 46% 45% 45% 45% 43% 46% 47% 48% 48% 47% Bucket 2 45% Positives somewhat outweigh negatives 20% 20% 20% 16% 20% 18% 19% 16% 17% 15% 17% 18% Bucket 3 Negatives somewhat outweigh positives 7% 4% 10% 8% 10% 7% 9% 9% 8% 8% 8% 7% 8% 9% Bucket 4 Negatives strongly outweigh positives * Rounded % Jan 07 May 07 Feb 08 Jul 08 Mar 09 Jul 09 Feb 10 Jul 10 Feb 11 Jul 11 Mar 12 Jul 12 Key: Significant change from 2011 ( ) or in same season trend ( ) Base: Total (N = 1,000+ per wave) Q.35: Considering all you know about beef, would you say the positives of beef outweigh the negatives or do the negatives of beef outweigh the positives? Q.36: Considering all you know about chicken, would you say the positives of chicken outweigh the negatives or do the negatives of chicken outweigh the positives? Source: Consumer Beef Index July 2012 7

Preference for Dinner 50% 45% 42% 40% 38% 37% 39% 39% 36% 37% 36% 37% 38% 37% 39% 35% 30% 25% 27% 28% 29% 30% 27% 31% 29% 30% 33% 30% 30% 28% 20% 15% Strongly/Somewhat Prefer 10% Chicken 5% Beef 0% Jan '07 May '07 Feb '08 Jul '08 Mar '09 Jul '09 Feb '10 Jul '10 Feb '11 Jul '11 Mar '12 Jul '12 Key: Significant change from 2011 ( ) or in same season trend ( ) Base: Total (N = 1,000+ per wave) Q.34: Overall, thinking about beef and chicken, which do you prefer to eat for dinner? 8 Source: Consumer Beef Index July 2012

Importance & Performance What s important to consumers and how does beef perform compared to chicken 9

Importance and Performance At Home Extremely/Very Important Agree Completely/Somewhat Importance Beef Performance Chicken Performance 87% 86% 87% 79% 83% 59% 65% 69% 61% 69% 57% 69% #1 Great Tasting # 3 Extremely Safe to Eat #8 Is a smart choice #9 Is always Tender Ranked by level of importance to consumer Source: Consumer Beef Index July 2012 Base: Split sample (N = 750) Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home. 10

Importance and Performance At Home Extremely/Very Important Agree Completely/Somewhat Importance Beef Performance Chicken Performance 81% 76% 63% 62% 65% 58% 57% 55% 56% 49% 29% 32% #14 Not contribute to heart problems #19 Fits healthconscious diet #22 Low in saturated fat #23 Can be eaten every day Source: Consumer Beef Index July 2012 Base: Split sample (N = 673) Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the following statements when eating each food type at home. 11

Importance and Performance At Home Extremely/Very Important Agree Completely/Somewhat Importance Beef Performance Chicken Performance 70% 63% 55% 52% 51% 50% 45% 36% 38% 37% 39% 29% #25 Is low in cholesterol #27 Animals raised without hormones #28 Animals raised without antibiotics #32 Important part of children s diet Base: Split sample (N = 673) Q.13a: How important is each of the following characteristics when choosing whether to have beef, chicken, fish, pork or other main dish alternatives for dinner at home? Q.32a: How much do you agree or disagree with each of the Source: Consumer Beef Index July 2012 following statements when eating each food type at home. 12

Which is better beef or chicken? Consumers make some judgments OR 13

Beef/Chicken Superiority - Total Traditional All-American food Taste Protein content Great for grilling Many lean cuts available Makes memorable meals Provides lasting satisfaction Very pleasurable to eat 35% 14% 21% 23% 15% 18% 19% 20% Chicken is better Beef is better 31% 29% 27% 26% 21% 21% 21% 20% Ease of preparation 27% 17% Fat content 58% 15% Good source of fuel for body 21% 13% Variety of preparation methods 25% 13% Good any night of the week Value for the money Nutritional content Calorie content A worry-free food Not feeling guilty about eating Good for kids Source: Consumer Beef Index July 2012 52% 53% 47% 38% 39% 36% 29% Base: Total Q.37: For each of the factors listed below, please rate whether you think that beef is better than chicken, that chicken is better than beef or that the two are about the same. 7% 7% 11% 11% 10% 10% 10% 14

Beef/Chicken Superiority *Millennials Traditional All-American food Taste Protein content Great for grilling Many lean cuts available Makes memorable meals Provides lasting satisfaction Very pleasurable to eat Ease of preparation Fat content Good source of fuel for body Variety of preparation methods Good any night of the week Value for the money Nutritional content Calorie content A worry-free food Not feeling guilty about eating Good for kids Source: Consumer Beef Index July 2012 50% 50% 49% 44% 44% 44% 39% 41% 36% 31% 32% 27% 29% 28% 28% 26% 23% 20% 17% Chicken is better Beef is better Base: Total in segment (N = 591) Q.37: For each of the factors listed below, please rate whether you think that beef is better than chicken, that chicken is better than beef or that the two are about the same. 10% 10% 14% 17% 18% 17% 17% 15% 13% 23% 24% 24% 22% 23% 21% 31% 29% 35% 33% *Born between 1980-2000 15

Among consumers who eat more beef What are the drivers? 16

Why people eat MORE beef? Among consumers (19%) eating more beef Taste, Health convenience, & nutrition are right primary choice reasons drive for eating more eating beef less Taste of beef Quick and easy The right choice for many occasions Extremely important 39% 39% 33% Very important 35% 74% 33% 71% 34% 67% High Impact A family favorite 31% 28% 59% Great prices 28% 32% 60% Grilling more often 28% 31% 59% Learned new ways to prepare beef 27% 32% 59% Moderate Impact Better availability of cuts 27% 28% 55% Adding protein to your diet 27% 27% 54% Lean beef fits a healthy diet 25% 27% 52% Less price-conscious now 24% 25% 49% Tired of the other meats Less worried about safety 24% 24% 22% 24% 46% 48% Low Impact Hearing better news about it being healthy 23% 22% 45% Source: Consumer Beef Index July 2012 Base: Those eating more beef (N = 281) Q.38d: As you noted earlier, you have been eating more beef in the last six months. How important or what impact did each of the following have on your decision to eat more beef? 17

Among consumers who eat less beef What are the barriers? 18

Why people eat LESS beef? Among consumers (17%) eating less beef Extremely important Very important Health & nutrition are primary reasons for eating less Health reasons Limiting cholesterol or fat Other meats seem healthier 36% 31% 30% 25% 27% 28% 61% 58% 58% High Impact Prefer other meal options 21% 20% 41% Too expensive relative to other meat 20% 24% 44% Eating more plant-based protein 20% 22% 42% Concerned about factory farming More price-conscious now 19% 18% 16% 26% 35% 44% Moderate Impact More worried about safety 18% 18% 36% Hard to digest 15% 18% 33% Discovered new non-beef recipes 10% 23% 33% Family member prefers to avoid beef 7% 12% 19% Grilling less Steak dinner takes too long 7% 6% 9% 14% 16% 20% Low Impact Running out of ways to make beef 5% 11% 16% Cuts you like not available 4% 12% 16% Source: Consumer Beef Index July 2012 Base: Those eating less beef (N = 255) 38f: As you noted earlier you have been eating less beef in the last six months, how important or what impact did each of the following have on your decision to eat less beef? 19

How do consumers feel about beef prices? The Goldilocks question: Too high Too Low Just right 21

Perceptions: Steak Value Grocery Store So inexpensive that you d actually doubt its quality Inexpensive and worth it Just about right 3% 2% 34% Steak Pricing At Grocery Store 4% 2% 2% 1% 2% 2% 1% 6% 2% 3% 3% 1% 27% 29% 32% 35% 36% 43% 2% 1% 2% 2% 3% 3% 37% 35% 36% 8% 0% 20% 20% Expensive but worth it 37% 33% 42% 37% 27% 41% 39% 41% 42% 25% 52% Too expensive and definitely not worth it 24% Total Source: Consumer Beef Index July 2012 17% 27% Gen-X 30% Millennial Baby- Boomers Base: Those asked, split sample (N = 750) Q.48x3: Which of the following statements best describes the value for the money of steak bought at the grocery store? 34% Light 20% 20% Moderate Heavy 18% 19% Bucket 1 Bucket 2 32% Bucket 3 Bucket 4 22

Perceptions: Ground Beef Value Grocery Store So inexpensive that you d actually doubt its quality Inexpensive and worth it 4% 6% Ground Beef Pricing At Grocery Store 6% 4% 2% 2% 3% 3% 2% 3% 3% 8% 5% 8% 7% 7% 11% 5% 6% 5% 11% 2% Just about right 48% 50% 44% 48% 41% 48% 54% 50% 52% 43% 31% 15% Expensive but worth it 27% 24% 36% 24% 22% 31% 26% 30% 28% 25% 41% Too expensive and definitely not worth it 15% Total 10% 13% Gen-X 23% Millennial Baby- Boomers 25% Light 14% Moderate 9% Heavy 10% 11% Bucket 1 Bucket 2 22% Bucket 3 Bucket 4 Base: Those asked, split sample (N = 750) Q.48x4: Which of the following statements best describes the value for the money of hamburger or ground beef bought at the grocery store? Source: Consumer Beef Index July 2012 23

Limiters of Consumption Hurdles to be overcome 25

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) PRICE CONCERNS Percent Frequently Limiting Beef Consumption because of concern The cost of a steak meal is very high at restaurants (#1 overall limiter - top 2 box) 40 40 40 Cost per pound of steak is very high at the grocery store (#2) 37 37 32 Cost of per pound of ground beef is very high at the grocery store (#3) 23 25 21 The cost of of hamburger or other ground beef meal is very high at restaurants (#7) 15 Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption - May 2012 26

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) NUTRITION CONCERNS Percent Frequently Limiting Beef Consumption because of concern It is healthier to eat more chicken or fish & less beef (#4 overall limiter - top 2 box) 37 37 32 It is not healthy to eat beef every day (#5) 25 27 21 It's sound nutritional advice to balance beef consumption by eating other proteins (#6) Ground beef can easily be replaced in recipes with ground turkey or chicken (#9) Ground beef is not as healthy as other ground meats such as ground turkey (#10) There are much healthier choices than beef for protein (#13) 17 17 18 17 19 15 Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption May 2012 27

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) PREPARATION CONCERNS Percent Frequently Limiting Beef Consumption because of concern Steak does not have good results when microwaved (#8 overall) 25 27 21 Ground beef does not have good results when microwaved (#14 overall) 21 21 17 Source: Limiters of Consumption May 2012 Total Population Moderate Beef Eaters Millennials 28

Top Limiters of Beef Consumption (Top 10 Frequent Limiters for each consumer segment) QUALITY & SAFETY CONCERNS Percent Frequently Limiting Beef Consumption because of concern Some ground beef is blended with a lean, finelytextured product that is often referred to as "pink slime" (#15 overall limiter - top 2 box) 21 21 17 Is is risky to eat a burger that is a little rare (#20) 18 18 Cattle are pumped full of hormones to make them grow bigger faster - and then have to be given antibiotics to keep them healthy (#19) 15 Total Population Moderate Beef Eaters Millennials Source: Limiters of Consumption May 2012 29

Consumer Image Index Consumer Image Index (CII) October 2012 30

Favorability Product versus Production Total Oct 2012 Beef Product How Cattle Are Raised Bucket 1 Positives strongly outweigh negatives Bucket 2 Positives somewhat outweigh negatives 31% 46% - 11 points 20% 42% Bucket 3 Negatives somewhat outweigh positives Bucket 4 Negatives strongly outweigh positives 15% 8% 24% 14% Q.12: Considering all you know about beef,, would you say? Q.21: Thinking specifically about how cattle are raised for food in the U.S., do you believe that? Consumer Image Index October 2012 31

Consumer Views of Ranching

Like what they see But don t believe it Positive (4/5) Total Liking 74% At all Does (4/5) Reflects The Beef Industry 40% Negative (1/2) 5% 29% Does Not (1/2) Total Consumers Q.27a: What is your overall reaction to this picture? Q.27b: To what extent does this image reflect your view of Consumer Image Index October 2012 the U.S. beef industry? 34

Don t like what they see But do believe it Positive (4/5) Total Liking 23% 23% 14% At all Does (4/5) Reflects The Beef Industry 57% 60% 44% Negative (1/2) 38% 43% 51% Does Not (1/2) 10% 12% 17% Total Consumers Q.27a: What is your overall reaction to this picture? Q.27b: To what extent does this image reflect your view of Consumer Image Index October 2012 the U.S. beef industry? 35

Are consumers eating beef less often because of Meatless Mondays?

Meatless Monday Participation Ever Participate Total consumers 16% Frequency of Meatless Monday participation Weekly Almost weekly 5% 5% 14% At Least Monthly Which Type of Meat Served Less (Among Meatless Monday participants) Beef It varies 31% 21% 17% Chicken Fish 21% 10% Total (N = 189) Pork Q.14a: Do you ever participate in "Meatless Mondays," which is a campaign that encourages people not to eat meat on Mondays to improve their health? Q.14b: How often do you participate in "Meatless Mondays"? Q.14c: When you participate in Meatless Mondays, what type of meat are you most often having one less serving of that week? Consumer Image Index October 2012 37

When are consumers comfortable with antibiotic use?

A quarter to a third of consumers are never comfortable with antibiotic use in cattle production Comfortable with the use of antibiotics when An animal becomes sick 50% Actively Opposed/ Never Appropriate 23% Prescribed by a veterinarian In accordance with [regulations of] the Food and Drug Administration Proactive protection [for animals] from disease The antibiotic is NOT related to any class of human antibiotics 16% 29% 43% 42% 25% 27% 32% 30% The antibiotic helps an animal better metabolize food None of these, it is never appropriate to give antibiotics to animals raised for food 13% 17% Total consumers 38% Q.17: In which, if any, of these situations are you comfortable with the use of antibiotics in raising animals for food? Q.17a: For each of the other situations below, would you say that you are just uncomfortable with the use, actively oppose using antibiotics in that situation or don t really have an opinion? Consumer Image Index October 2012 40

When are consumers comfortable with use of science & technology?

More than a third of consumers are uncomfortable with science and technology or feel it never is appropriate Comfortable with the use of science & technology. To improve the safety of the beef consumers eat 61% Uncomfortable/ Never Appropriate 36% To improve cattle care and comfort 55% 34% To improve the medical treatment for sick cattle To improve the environmental efficiency of raising cattle (e.g., using energy, land and water) To help keep beef prices affordable To provide the optimal diet of grain, forages and nutrient supplements To improve cattle nutrition and decrease the fat content in beef 48% 44% 42% 41% 39% Total consumers 39% 40% 44% 39% 45% Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new Consumer Image Index October 2012 technologies? 42

More than half of consumers are uncomfortable using technology to improve herds or increase lean muscle in cattle Comfortable with the use of science & technology. To help cattle farmers and ranchers select and use the best genetics for improving their herds 29% Uncomfortable/ Never Appropriate 52% To increase lean muscle in cattle None of these, it is never appropriate to use science and new technologies in raising cattle 12% 25% 51% Total consumers Consumer Image Index October 2012 Q.28: For which, if any, of these aspects of raising cattle are you comfortable with the beef industry using science and new technologies? 43

Did the pink slime media circus affect ground beef perceptions? SOURCE: IPSOS Public Affairs April 2012 44

Affordability & Nutrition Q: Please read the following brief statements about ground beef and rate your agreement with each one on a scale of strongly disagree to strongly agree. Ground beef makes a great family meal because everyone loves the taste and it's very affordable 11 61 Ground beef is an affordable, versatile souce of important nutrients 13 55 Ground beef is an important part of the school lunch program because it's something kids love to eat and it provides important nutrients 18 40 I would buy ground beef more often but it is getting to be expensive 25 39 I limit ground beef because it has a lot of saturated fat 33 37 0 10 20 30 40 50 60 70 SOURCE: IPSOS Public Affairs April 2012 % Total Agree % Total Disagree 45

Nagging Quality Issues Q: Please read the following brief statements about ground beef and rate your agreement with each one on a scale of strongly disagree to strongly agree. I worry about the quality of ground beef at fast food restaurants -- I'm never sure what is in it 22 48 The ground beef served to our kids at school is low quality 13 40 I buy ground beef because it's more affordable than other beef, but I worry it's not as good a product 31 32 I hesitate to buy ground beef at the supermarket because I've heard it could contain some sort of filler 27 41 0 10 20 30 40 50 60 SOURCE: IPSOS Public Affairs April 2012 % Total Agree % Total Disagree 46

Millennial Parents and Beef Objective: to explore and learn what drives the decision of when, where and how (Millennials with children) consume beef and how this plays into the food they prepare and give to their children. SOURCE: Millennial Generation and Beef, December 2012

Cooking Beef is Disappointing How often do you find the beef you ve cooked doesn t turn out just right? 56% 55% 46% 40% 31% Over 50% are disappointed with Burger and Steak results 40% 37% 29% 23% Burgers Steaks Ingredient Millennials Gen X Boomers SOURCE: Millennial Generation and Beef, December 2011 49

Flavor and Tenderness are the core issues Millennials are finding it hard to get the flavor and the tenderness right. Over-cooking and the overall look are also a challenge, but underdone isn t as much as a problem. 61% 39% 54% What tends to be the issue? 62% 40% 41% 39% 38% 34% 36% 32% 31% 27% They ARE buying leaner cuts of beef; going for the lower fat, and less expensive beef options means they are eating the less flavorful cuts to begin with. 18% 17% Burgers Steaks Ingredient SOURCE: Millennial Generation and Beef, December 2011 50

Types of Beef Information Sought Easy recipes about beef More "sophisticated" recipes about beef Information about how to cook the different cuts The nutritional content in beef e.g. vitamins, minerals etc. Information about the different cuts Animal welfare or humane treatment of animals Information about how cattle are raised The impact of beef farming on the environment Information about how beef is processed Everyone is interested! 28% Driven by Millennials 27% 33% 30% 39% 44% 38% 45% 43% 38% 42% 49% 50% 54% 58% 57% 61% 53% 52% 59% 65% 67% 66% 60% 76% 80% 80% Boomers Gen X Millennials SOURCE: Millennial Generation and Beef, December 2011 51

Millennial Parents - Chicken vs. Beef Q.16 You said you prefer chicken the MOST to prepare and serve to your child/children, from the list below please let us know why. (n =373), Top 10 Shown CHICKEN CAN BE PREPARED IN A WIDE VARIETY OF WAYS CHICKEN IS EASY TO PREPARE MY CHILD/CHILDREN PREFER THE TASTE OF CHICKEN CHICKEN GOES WELL WITH A WIDE VARIETY OF SIDES AND OTHER FOODS MY CHILD/CHILDREN LOVE CHICKEN NUGGETS OR CHICKEN FINGERS/STRIPS CHICKEN IS ALWAYS A CROWD PLEASER - EVEN FOR FINICKY EATERS Ease of Preparation and Preference for Chicken 61% 59% 57% 56% 52% 52% I KNOW HOW TO PREPARE AND SERVE CHICKEN 47% CHICKEN GOES A LONG WAY AND IS GOOD FOR LEFTOVERS CHICKEN IS NOT EXPENSIVE CHICKEN HAS BECOME A FAST FAMILY MEAL CHOICE 36% 40% 40% SOURCE: Millennial Parents and Beef, December 2012 Total 52

Millennial Parents - Chicken vs. Beef Q. 12 Which of the following are significant reasons you do NOT prefer to serve beef the most to your child/children? (n =415), Top Top 10 reasons Shown to moderate red meat: MY CHILD/CHILDREN PREFER(S) CHICKEN OVER BEEF BEEF, IN GENERAL, IS EXPENSIVE I TRY TO MODERATE HOW MUCH RED MEAT I FEED THEM IT ISN'T HEALTHY TO GIVE CHILDREN TOO MUCH RED MEAT I FIND IT HARD TO MAKE A VARIETY OF MEALS WITH BEEF THAT THEY WILL EAT MY CHILD/CHILDREN HAVE A HARD TIME EATING BEEF BECAUSE IT IS TOO TOUGH FOR THEM TO CHEW I AM CONCERNED WITH THE WAY BEEF IS RAISED AND/OR PROCESSED MY CHILD/CHILDREN DON'T LIKE THE TASTE OF BEEF I AM CONCERNED ABOUT HEALTH RISKS FROM BEEF I DON'T KNOW ENOUGH ABOUT THE DIFFERENT CUTS OF BEEF 1) Should moderate all things 2) Bad for your heart and cholesterol and 3) White meat/fish is healthier 10% 12% 12% 15% 14% 14% 26% 35% 38% 50% SOURCE: Millennial Parents and Beef, December 2012 Total 53

Lack of Confidence, Lack of Understanding, Need for Information 50% would buy more beef if they knew more about the different cuts 75% would like information about steaks and how to cook and prepare them 67% would like to see trained butchers on staff to provide cooking advice SOURCE: Millennial Parents and Beef, Conversion, November 2012 55% would like more information on preparing and serving beef to children 54% say its hard to know what cuts to choose in the meat case 54

Defrosting is a limiter of beef consumption Who d a thunk it? 55

Our Starting Assumption - Steaks and Ground Beef are in the Fridge (No Defrost Needed) 56

Defrosting Discovery Process Focus Groups told us that defrosting beef is a BARRIER! Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution! Safety and New Product Development Teams tested several defrosting methods Consumers tested two defrosting methods in their homes RESULTS SHOW THERE ARE MORE CONVENIENT WAYS TO DEFROST BEEF THAN 24 HOURS IN THE FRIDGE! 57

Convenience Issues with Defrosting Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution! Online study ranked dozens of convenience concerns consumers had with beef. Top 4 were: MAJOR POTENTIAL IMPACT Improving these convenience points will very likely increase beef use Being able to cook from frozen Shortening defrost time Recipes needing hard-to-find ingredients Reheating hurts taste 58 SOURCE: Convenience Study, 2010

Issues with Defrosting Is this common? Online surveys verified defrosting beef is a BARRIER and that consumers want a better solution! Total Beef Purchases 100% of Total Hamburger Patty Purchases 19% of Total Steak Purchases 24% of Total All Beef: Combined almost 60% of all beef purchases go into the freezer 47% Fridge 74% Fresh 53% Freezer 25% Frozen 23% Fridge 77% Freezer 44% Fresh 53% Fridge 47% Freezer 56% Frozen 19% Fridge 81% Freezer 82% Fresh 57% Fridge 43% Freezer 18% Frozen 34% Fridge 66% Freezer Ground Beef: Combined almost 66% of ground beef goes into the freezer Steaks: Combined almost 50% of steaks go into the freezer 59 SOURCE: Defrosting Deep Dive Study, Nov 2011

Convenience Solutions to Defrosting Beef Safety and New Product Development Teams tested several defrosting methods Two different defrosting methods + Two different freezing methods Repackaged Beef - flattened Overwrap beef not flattened 60 SOURCE: Defrosting Study, Nov 2012

Convenience Issues with Defrosting Overwrappers say that their experience with the No Water method would increase their ground beef usage Would Encourage You to Use Ground Beef More Often No Water Water 67% AD 42% 52% 36% A B C D Repack Overwrap Repack Overwrap Base (62) (61) (62) (61) Q. If you knew that ground beef could be defrosted quickly and safely using this method would you use ground beef more often? SOURCE: Defrosting Study, Nov 2012 61

Convenience Solutions to Defrosting Beef Next steps are to discuss with stakeholders USDA/FSIS and others to determine how documents can reflect a different defrosting method other than the highly inconvenient 24 hours in the fridge method. SOURCE: Defrosting Study, Nov 2012 62

Convenience Issues with Defrosting MAJOR POTENTIAL IMPACT Improving these convenience points will very likely increase beef use Being able to cook from frozen Shortening defrost time Recipes needing hard-to-find ingredients Reheating hurts taste 63 SOURCE: Convenience Study, 2010

Market Research Contacts John Lundeen, MBA Sr. Executive Director, Market Research jlundeen@beef.org / 303-850-3391 Rick McCarty, M.A. Vice President, Issue Analysis and Strategy rmccarty@beef.org / 303-850-3361 Wendy Neuman, M.A. Director, Market Research wneuman@beef.org / 303-850-3325

QUESTIONS?