Understanding Consumer Perceptions

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1 Understanding Consumer Perceptions Ashley Hughes Florida Beef Council

2 Today s Goal To provide a base understanding of consumer perceptions and realities of beef production, as well as opportunities for how we can communicate messages around specific issues with the right level of transparency. Marketing Claims Factory Farming Antibiotics Hormones

3 Who s heard

4 The Evolving Consumer

5

6 Consumers What do they know? What do they think? What do they want? (More importantly) How do they FEEL about beef?

7 Beef production in the eyes of the consumer Nearly 2/3 of consumers feel positively about the way beef is raised 62% Positive Negative Those who say they have a high familiarity with beef production in America 33%

8 Common Issues At least Somewhat Concerned 81% 75% 82% Factory Farming Hormones Antibiotics I have heard rumors of cows being mistreated in many locations prior to the process of killing them and packaging their meat as beef. While I believe this rumor is mostly false, if there is such abuse, it has to stop!

9 Importance in the Eyes of the Consumer Top-2 Box Importance 80% 78% 78% 75% 74% 74% 73% Safe For My Family Animal is Cared For Continuous Improvement Industry is Transparent Specific Practices STRICT PROCESSING SANITATION GUIDELINES HOLD CONSUMERS SAFETY AS UTMOST IN IMPORTANCE DEDICATED TO ANIMAL HEALTH CONTINUALLY IMPROVING FOOD SAFETY OPENLY SHARE INFORMATION WITH THE PUBLIC USE ANTIBIOTICS RESPONSIBLY PRODUCTS FREE FROM ADDED HORMONES Q.16: How important is it to you that U.S. meat industries? SOURCE: Consumer Image Index October 2015

10 New Factors at Point of Purchase Website Involvement The Consumer Value Driver Plate

11 Consumer Insights Insights Marketing claims that focus on the positive rise to the top. I'm looking for descriptions that sound like they taste good. I am swayed by adjectives like cured, grass-fed, local; I will admit I don't really know what these specifically mean, but they imply to me that the beef was thoughtfully prepared. Male, 26

12 Consumer Image Association with Claims Rank Conventionally Raised Naturally Raised Grass Fed Local #1 55% 64% 87% 66% #2 49% 63% 77% 46% #3 47% 57% 67% 41% #4 33% 35% 37% 39% #5 25% 35% 30% 39%

13 Phrase Association with Claims Rank #1 #2 #3 #4 #5 Conventionally Raised Cattle can be given hormones (47%) Cattle can be given antibiotics (46%) Readily Available (45%) Cattle can be given vaccines (33%) Cattle may be fed animal by-products (31%) Naturally Raised Grass Fed Local Cattle are mostly free to roam (59%) Cattle are humanely raised (54%) Safe to eat (48%) High quality (45%) Good Source of Protein (35%) Natural (57%) Cattle are mostly free to roam (55%) High quality (43%) Safe to eat (43%) Cattle are humanely raised (41%) High quality (46%) Cattle are humanely raised (41%) Cattle are traceable to the source (39%) Natural (39%) Delicious (35%) Q120. When you hear CLAIM which of the following words or statements do you associate with this claim?

14 What is Quality? Beef should be well marbled and dry aged. I look for a deep red color and a thin crust when searing. Beef should be very moist but not so juicy that it leaves a pool of liquid on the plate. Simple seasoning, salt a bit of pepper. Male, 27 I consider the grade of the beef as well as if it is organic. I prefer ground sirloin burgers and tenderloin or sirloin for steaks. The beef should have a fresh smell to it and look freshly prepared/butchered. Female, 32 Q110. How do you define quality when it comes to the beef that you eat, such as steaks and burgers? Nothing treated or done with the cow (chemicals, preservatives, etc.) Juicy and cuts like butter. Not greasy in any way. Male, 21

15 Product and quality characteristics dominate high quality beef to consumers along with origin information Descriptors for High Quality Juicy 46% Flavorful 36% Fresh Grade (e.g. Choice or Prime) Grass-fed USDA inspected Tender Premium Specific cut (i.e. Ribeye, NY Strip) 46% 44% 43% 42% 42% 38% 36% Prime Natural Local (lists farm or state) Visually appealing Lean Cooked-to-order 36% 34% 34% 33% 30% 30% Q130. Which of these words or phrases are markers of high quality when it comes to beef items?

16 Product characteristics dominate the images consumers associate with high quality Image Association 28% 21% 14% 26% 18% 14% 24% 18% 13% 22% 16% 12% 21% 15% 11%

17 Consumer Insights Perception Factory Farming Perceptions SOURCE: Misperceptions of Beef Production Heart & Mind Strategies June/July

18 Perception While familiarity with factory farming is low, consumer concerns and awareness are high. The Term Factory Farming 83% 81% 23% Heard Of Concerned About Familiar with SOURCE: Misperceptions of Beef Production Heart & Mind Strategies June/July 2014

19 Reality Reality Most unique and complex lifecycle of any food Takes 2-3 years to bring beef from farm to fork 913,246 farms and ranches with cattle - down ~5% since 2007 More than 90% of those cattle operations are family or individually owned/operated Average cattle herd is less than 50 animals

20 Reality Reality Consumers do NOT understand what is involved with raising cattle BMPs Habitat/Wildlife Management Water Use Social Responsibility Animal Care/BQA Sustainability

21 Opportunity: In-person Experiences Shift Perceptions % = V e r y / S o m e w h a t C o n c e r n e d 92% 8% 82% Sample text Sample text Sample test 25% Pre-Tour Perception Post-Tour Perception Humane Treatment Environmental Impact Positively shifts opinions about beef, how beef is raised and key beef issues while making influencers advocates for beef.

22 Reality Opportunity Farm to Fork Tours

23 23 Consumer Insights Antibiotic use is common in mainstream media

24 But familiarity is low But familiarity is low Antibiotic Use in Food Production 82% % Point Gap 54% 28% Concerned About Familiar with SOURCE: Antibiotic Resistance Heart & Mind Strategies October/December 2014

25 Perception Perception Support or oppose the use of antibiotics in raising animals for food? Somewhat support Strongly Support To treat a sick animal 37% 41% To control or prevent illness and disease 33% 33% For growth purposes 14% 6% SOURCE: Antibiotic Research Heart & Mind Strategies October/December 2014

26 Reality Reality We use antibiotics for three reasons in the livestock industry: 1.To treat sick animals: Animals, just like people in all types of families and homes, get sick. Without appropriate antibiotic treatment, animal welfare could suffer. 2.To prevent and control disease: Human and animal health treatment differs. In humans, doctors often treat the individual. In farm animals, veterinarians often treat the herd, as well as the individual. Preventing and controlling the spread of disease is critical to keeping animals safe and healthy. 3.To promote growth: By the end of 2016, antibiotics that are medically important in human medicine will no longer be used for growth purposes, in accordance with FDA Guidance 209 and 213.

27 Opportunities Opportunities Proactively inform the public using a tiered approach: Why Reasons why cattle require antibiotic treatment Human benefits associated with healthy livestock/cattle and food supply How Rigorous methods and precise, research-based application Collaborative and responsible process (everyone has a vested interest) Rarity of antibiotic resistance Impact Healthy, safe and sustainable food supply for consumers SOURCE: Antibiotic Resistance Heart & Mind Strategies October/December 2014

28 Consumer Insights Insights Not all consumers want to know about beef production specifics, such as hormones WHY??? Other industry practices are brought to the consumers attention The description of how the pellet works makes me feel bad for the animals.

29 Keeping with the trend, consumer concern and awareness are high but familiarity is low. Hormone use in cattle production 90% 75% % Point Gap 59% 16% Heard Of Concerned About Familiar with SOURCE: Growth Promotant Research IPSOS November 2014 February 2015

30 Perception Perception Topics desired to increase consumer comfort about hormones Human Health-related 58 Hormone Levels 46 Animal treatment 39 Economics Environmental Government Oversight None of these 25 30

31 Reality Still some consumers do not accept the use of hormones Not truthful/ believable/ convincing 18 About 25% of Consumers Dislike (use of) hormones 12 Unnatural/ inorganic 9 Unreliable source (Beef Checkoff) Not enough information SOURCE: Growth Promotant Research IPSOS November 2014 February

32 Consumer Insights Insights Online is the vehicle for Millennials who want to learn more about beef.

33 What Resonates Most? Total Production Story Post Production Concern Level Treatment Conditions Diet GMOs Hormones Antibiotics I am surprised that there are many different stops from birth to production. I am also pleasantly surprised on the humane treatment they have during their life.

34 Opportunities Bring the entire beef lifecycle to life wherever possible strong visual support, such as in-person or video, work best Incorporate all the people involved in the process including family and other credible parties when possible (e.g. vets) Show what is actually happening throughout the process but get to the point when providing facts (show hormone implant, space in pens for room to move, etc.) While respondents are looking for transparency and show a lack of knowledge about beef production, the slaughter process makes them itchy Place content where Millennials are looking (online) SOURCE: Misperceptions of Beef Production Heart & Mind Strategies June/July 2014

35 Key to Success MUST HAVE involvement from every partner in the beef supply chain to reach consumers and provide the facts about beef production with targeted messages to appeal to consumer perceptions and the methods by which they form their beliefs.

36 Understanding Consumer Perceptions Ashley Hughes Florida Beef Council

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