consumers: their beef expectations a presentation by nancy kruse the kruse company
TRANSCRIPT
Consumers:Consumers:Their Beef Their Beef
ExpectationsExpectations
A Presentation byA Presentation by
Nancy KruseNancy Kruse
The Kruse CompanyThe Kruse Company
Beef ExpectationsBeef ExpectationsSession AgendaSession Agenda
Changing ConsumersChanging Consumers Implications to BeefImplications to Beef
Dietary TrendsDietary Trends Implications to BeefImplications to Beef
Value ExpectationsValue Expectations Implications to BeefImplications to Beef
Changing Consumers:Changing Consumers:We’re Getting OlderWe’re Getting Older
Population Change, 2000-2010Population Change, 2000-2010
(In Millions)(In Millions)
Age GroupAge Group Population Gain (Loss)Population Gain (Loss)
Under 18Under 18 +1.7+1.7
18-2418-24 +3.6+3.6
25-3425-34 +1.4+1.4
35-4935-49 (3.1)(3.1)
50-6550-65 +16.1> +16.1>Total gain ofTotal gain of
65+65+ +4.3> +4.3> 20.4 MM20.4 MM
Source: Census BureauSource: Census Bureau
Changing Consumers:Changing Consumers:We’re More DiverseWe’re More Diverse
Ethnic Population Will GrowEthnic Population Will Grow
By 31 Million by 2010By 31 Million by 2010
% Population% Population
GroupGroup 20002000 20102010
WhiteWhite 74% 74% 67% 67%
BlackBlack 12 12 13 13
HispanicHispanic 10 10 14 14
Other*Other* 4 4 6 6
*Asian, Native American, Pacific Islander*Asian, Native American, Pacific Islander
Source: Census BureauSource: Census Bureau
Hispanics RepresentHispanics Represent13% of US Population13% of US Population
hispanicshispanics
Changing Consumers:Changing Consumers:Mom’s on the JobMom’s on the Job
Married Women in WorkforceMarried Women in Workforce With Kids 6-17 Years OldWith Kids 6-17 Years Old
YearYear PercentPercent19601960 39% 39%1980 1980 62 62
20002000 77 77
Source: Bureau of Labor StatisticsSource: Bureau of Labor Statistics
Changing Consumers:Changing Consumers:Culinary EducationCulinary Education
600+ culinary schools600+ culinary schools 15,000+ enrolled15,000+ enrolled CIA, J&W graduate 3,000+/yearCIA, J&W graduate 3,000+/year
Source: American Culinary FederationSource: American Culinary Federation
Chefs Everywhere:Chefs Everywhere:They’re Media StarsThey’re Media Stars
Changing Consumers:Changing Consumers:Media BombardmentMedia Bombardment
TV Food NetworkTV Food Network Emeril in 50MM households/dayEmeril in 50MM households/day
Cookbook salesCookbook sales 10% of publishing sales10% of publishing sales
Food websites Food websites 8MM food sites=3.9MM recipe pages*8MM food sites=3.9MM recipe pages*
Food radio Food radio 100 shows, some national100 shows, some national
Print mediaPrint media Consumer and trade magazinesConsumer and trade magazines
*Note: 2000 data. Source: Foodservice Innovation Network*Note: 2000 data. Source: Foodservice Innovation Network
Changing Consumers:Changing Consumers:Implications to BeefImplications to Beef
CONSUMER TRENDSCONSUMER TRENDS Aging populationAging population
Ethnic diversityEthnic diversity
Working womenWorking women
Culinary educationCulinary education
Food mediaFood media
IMPLICATIONS TO BEEFIMPLICATIONS TO BEEF Palate appealPalate appeal Health concernsHealth concerns
Fully flavored foodsFully flavored foods Menu mainstreamingMenu mainstreaming
Convenience demandConvenience demand Dual income householdsDual income households
Tools and techniquesTools and techniques Entire food chainEntire food chain
Rising expectationsRising expectations Open attitudesOpen attitudes
Obesity BecomesObesity BecomesNational EpidemicNational Epidemic
Super-Sized ConsumersSuper-Sized Consumers 61% of population overweight61% of population overweight
14% of kids 6-1914% of kids 6-19 20% of population obese20% of population obese
300,000 children have Type 2 Diabetes300,000 children have Type 2 Diabetes 37 states have obesity rates >15%37 states have obesity rates >15%
Source: The Wall Street Journal; italics mineSource: The Wall Street Journal; italics mine
““Short Orders” WillShort Orders” WillAddress Micro-DietsAddress Micro-Diets
Fads and trends will multiplyFads and trends will multiply Low carbohydrateLow carbohydrate Fat/calorie restrictedFat/calorie restricted Allergy freeAllergy free Vegetarian/veganVegetarian/vegan
Combat aging processCombat aging process Pharmifoods and nutriceuticalsPharmifoods and nutriceuticals
Food scares, media stories will impactFood scares, media stories will impact May impact consumptionMay impact consumption May increase demand for organic, all-natural, etc.May increase demand for organic, all-natural, etc.
Chipotle Grill’s Chipotle Grill’s Salads and ProteinsSalads and Proteins
Dietary Trends:Dietary Trends:Implications to BeefImplications to Beef
Remain proactiveRemain proactive Promote benefitsPromote benefits Underscore choiceUnderscore choice Beware charlatans Beware charlatans
Value Equation Value Equation More ComplexMore Complex
Then…Then…V=Q/PV=Q/P
Now…Now… V=(Q/P) x TV=(Q/P) x T²² x F x O x CI x F x O x CI
V=value, Q=quality, P=price, T=time savings/convenience,V=value, Q=quality, P=price, T=time savings/convenience,F=flavor, O=other personal values, CI=culinary influenceF=flavor, O=other personal values, CI=culinary influence
Source: Yankelovich; The Kruse CompanySource: Yankelovich; The Kruse Company
Value Expectations:Value Expectations:Implications to BeefImplications to Beef
STRESS FLEXIBILITY, STRESS FLEXIBILITY, MONITOR CHANGESMONITOR CHANGES
QualityQuality PricePrice ConvenienceConvenience Flavor/ethnicFlavor/ethnic Other valuesOther values Culinary influenceCulinary influence
Picture: Bon Appetit Magazine, Jan. ‘04Picture: Bon Appetit Magazine, Jan. ‘04