CANADIAN CONSUMER RETAILCANADIAN CONSUMER RETAILMEAT STUDY

ST

U

Measure attributes of

UD

YO

Measure attributes of the retail environment

M t h

OB

JEC

Meat purchase behaviour and attitudes, by meat type

CT

IVE

Understand  purchase trade‐offs including:

C di f

ES Canadian country of 

origin, Price,Production claims such as Organic, Free Range, or Grass Fed

IMPACT OF ECONOMIC SLOWDOWN ONCANADIAN SHOPPERS

2010(1372)

2012(1365)

Net: Any negative impact from economic downturn 54 29Household income is lower 34 19

More in debt now 20 10

F l l fi i ll d 2 Feel less secure financially compared to 2 years ago 22 16

No impact – financially unchanged 41 65

Positive impact financial picture is better now 5 5Positive impact – financial picture is better now 5 5

SHOPPER ATTITUDES & BEHAVIOUR: CHANGES IN PAST 2-3 YEARS

2010(1372)

2012(1365)

COST-SAVING / PRICE-CONSCIOUSB i t l / i l d lBuying more meat on sale / special deal 50 47Read grocery flyers for meat specials 48 45U i fl d t t i t Using flyers or ads to compare meat prices at different stores 43 40Looking for in-store signs showing meat features or specials 42 35St ki / b i d f i l k Stocking up / buying and freezing larger package sizes of meat 42 36In the store, comparing prices of different meatbrands and cuts 41 37P h i l / l / f il k i Purchasing larger economy / value / family pack sizes of meat 39 33Stretch meat dollar by cooking casseroles and pastadishes 29 17B i l i t f tBuying less expensive cuts of meat 24 16

60%

55%55%

QR CODE USAGE AMONG SMART PHONEOWNERS

QR CODE USAGE AMONG SMART PHONEOWNERS

48% ownership

57% have a QR reader• 39% have ever scanned 

a code = 11% overall• 4% of consumers have 

scanned food

R t il E i tRetail Environment

SHOP AT REGULARLY FOR GROCERIES

B C di M P h 2010 2012Base: Canadian Meat Purchasers 18+(Major mentions 2%+)

2010(1372)

2012(1372)

Net: Any Supermarket 99% 99%Net: Any Supermarket 99% 99%Sub-Net: Loblaw Companies 75% 74%Sub-Net: Sobey’s Companies 57% 60%Sub-Net: Metro Inc 44% 41%Sub-Net: Regional Chains 12% 15%Sub-Net: Jim Pattison Group 12% 9%Net: Mass Merchandiser / Big Box 48% 54%Costco 29% 40%Walmart 27% 29%

Net: Any Farmers Market / Butcher 2% 1%N t N ti l ( D t ) 1%Net: Non-conventional (e.g. Drugstore) 1% 1%Other (e.g. single write-ins) 7% 6%

COSTCO SHOPPING

2010 20122010 2012Shop at regularly for fresh meat 21% 31%One retailer shop at most for 9% 16%fresh meatRetailer with the “best” meat department

14% 20%

POWER OF MEAT – VERBATIM

Varietyy A section that is hormone, antibiotic-free meat More meat selections from local farmers

H f h ild i l t d lt Have more fresh, wild animal meats and poultry I would like to see more types of fish and more

variety of beef and beef cuts that specify what sort of dishes it is for

I would love to buy lamb, but can never find it, except for tat the local farmer’s market. Would be a lot easier to buy it at my grocery store. Maybe run a specialty meat sale every week, something different every time

POWER OF MEAT – VERBATIM

QualityQ y Be more careful to get consistent cuts and stop hiding

the worst pieces on the bottom or tuck gristle underneath where we can’t see itunderneath where we can t see it

I want quality, value and green. Meaning: local meats, no dyes or added water, not weighted down with fat excess skin or boneswith fat, excess skin or bones

Cleanliness Keep the department squeaky clean! Put the courtesy no-mess bags somewhere what I can

reach them instead of two feet above my head Keep sanitary wipes and bags stocked Eternally out Keep sanitary wipes and bags stocked. Eternally out

98%

97%97%

Meat Purchase and 88%

Consumption45%

18%18%

CHANGE IN CONSUMPTION VS. 5 Y AYEARS AGO

QB9: [Among those who ever buy each protein at B1] Overall, how much of each protein doyou eat today, compared to 5 years ago? (5-point scale) Significantly higher / lower at 95% C.L.

CHANGE IN CONSUMPTIONEXPECTED 5 YEARS FROM NOWEXPECTED 5 YEARS FROM NOW

QB10: Among those who ever buy each protein at B1] 5 years from now do you expect youwill be eating more, less or about the same of each of these proteins? (5-point scale)

Significantly higher / lower at 95% C.L.

9.1

8.4

Nutritiousness of Various 7.0Proteins

6.9

6.96.9

6 86.8

TRADE-OFF ANALYSISTRADE OFF ANALYSIS

PURCHASE HIERARCHYPURCHASE HIERARCHY

#1 Price#1 Price

#2 Origing

#3 Value-Add

HOW MUCH DO YOU CARE ABOUT BUYINGCANADIAN MEAT?

REASONS CARE ABOUT BUYING CANADIANMEAT

WILLING TO PAY MORE (%)

Beef Bison Chicken

Lamb Pork

Net: Willing to pay more for ANY of th

56% 73% 50% 53% 52%

these

WILLING TO PAY MORE (%) Beef Bison Chicke Lamb Pork

n

+35% Premium for Organic

6% 19% 14% 10% 12%Organic+25% Premium for hormone and/or

24% 36% 26% 34% 27%hormone and/or Antibiotic free

WILLING TO PAY MORE (%)

Beef Bison Chicken

+20% Premium for Grass Fed

19% 37%

+20% for Grain Fed 21% 32% 23%

WILLING TO PAY MORE (%) Beef Bison Chick

eLamb Pork

en

+20% Premium for Environmentally

22% 30% 24% 26%Environmentally Sustainable+20% Premium for 28% 49% 39% 34%20% Premium for Certified Humane

28% 49% 39% 34%

+20% Premium for 29%Free Range

WHO IS WILLING TO PAY A PREMIUM FORSPECIFIC FEATURES AND BENEFITS?

Health andHealth and WellnessPeople of all agesPeople of all ages are more proactively p yaddressing their health in a more holistic and personalized mannermanner. 

Sensory and IndulgenceThe driving force behind continually higher expectations of quality, variety and immersive “consumption experiences”

Sustainability and Ethics. Mounting awareness and concern surround the scale, complexity and interdependence of shared social and environmental challenges globally.

Smart and Connected.Connected. In a hyper‐connected, technology‐enabled gysociety, consumers seamlessly integrate the use of multiple technologies in their lives and buyinglives and buying behaviour

Easy and Affordable.  

dTime and money are perceived to be the great scarcities ofgreat scarcities of modern life, and consumers are searching for ways to maximize these limited personal resources

INGREDIENTS AND FLAVOURS

1. Unusual product offerings – exotic meats, unique flavours

2. Unique food pairings –meat and alcohol

3. Rare breeds

BENEFITS AND POSITIONINGS

1. Branding – move away from been seen as a commodity product

hi ll d i bl d 2. Ethically and sustainably sourced products

3 Halal meats and poultry – convenience 3. Halal meats and poultry convenience products

4. Specific consumer needs – gluten free sausages

5. More premium options for the “dine at home” trend that makes scratch cooking home trend that makes scratch cooking easier

PACKAGING

1. Premiumize packaging – move away from the commodity looky y

2. Harness smartphone technology to turn packaging into an information gateway

3. Smaller, single serve sizes 4. Sustainable packaging initiatives

MERCHANDISING AND MARKETING

1. Certification logos – to build gconsumer trust

2. Recipes, cooking tips – declining consumer knowledge in the kitchen

3. Social media