Unlocking Value Through Innovation

Innovation Change Unlocks Value March Blog

Make no mistake, despite some vocal minority voices that say otherwise–people want to eat beef.  The latest beef demand numbers say plenty, with the All Fresh Beef Demand Index having increased an astounding 13 percent year-on-year during the fourth quarter of 2014. 13 percent – that’s the largest year-over-year increase in any quarter since 1990 – 25 years. Of course, the beef checkoff can’t take credit for the entire growth in beef demand – but our community is realizing this growth despite our tight supply in recent years, which points to growing consumer preference for our product and, according to economist Glynn Tonsor, “strong consumer loyalty to beef.” In fact, demand for beef has increased in 18 of the last 19 quarters through December 2014. And for the full year in 2014, beef demand increased 7 percent – the best growth we’ve since 2004 and the second-best since 1990.

Looking at one area where the beef checkoff focuses on innovation, the NPD Group – a global information company – reported recently that a total of 9 billion servings of burgers landed in U.S. restaurant and foodservice tables in 2014 – up 3 percent from 2013. This was in sharp contrast to overall sandwich servings for the year, which dipped by 2 percent – or 201 million servings. Burgers lead the sandwich segment, and that’s no accident. The checkoff worked closely with restaurant personnel nationwide to help create many of the burger options you see on restaurant menus today. Because we have asked consumers what they want – with market and product research at the base of every checkoff program – we may assist chefs and restaurant owners in understanding and fulfilling beef community desires. Because of this, today’s burger is much more than a bun-wrapped patty. Instead, beef burgers are a discriminating and purely individual selection from hundreds of creative options, including burger bars where folks can put their sandwich together just as they like it. Some people (like me) still want a simple, perfectly grilled beef patty, topped with Wisconsin cheddar, lettuce, tomato, onion, ketchup and mustard. But given the high price of beef, you can understand why many folks feel like their burger experience is more valuable when they get the exact combination of flavors that delight their palate. And we aim to please.

As I mentioned earlier, research forms the base of virtually all beef checkoff programs. That includes market research to keep in touch with our consumers’ demands and product innovation research to keep making improvements and changes to meet those demands. Let me give you a couple of examples of the important connection between research, product innovation, and a blended beef community. Think about breakfast – a meal that in which beef has been largely absent. Our market research tells us that consumers want beef at breakfast, too. So the checkoff’s Beef Innovations Group and culinary team worked through a coordinated product development initiative to help chefs and restaurateurs bring beef products to the breakfast table, developing recipes for breakfast beef burritos, beef and egg breakfast mugs, basic country beef breakfast sausage, beef bacon, steak and eggs breakfast tacos, and beef breakfast pizza, to name a few. Once perfected, we also distribute recipe innovations to consumers through the digital platforms where they say they want to receive their beef information. We rely heavily on partnerships where restaurant of retail partners invest as much as $60 to every checkoff dollar. It’s a win-win-win for farmers and ranchers, restaurants and retailers, and the customers who love beef–a.k.a. the beef community.

So can we celebrate the win? Absolutely. But what we cannot do, is rest.

We need to take a very thoughtful, disciplined approach to the future of the beef community, too.  We are in a unique position to offer a certain experiential value to our customers that separates us from other proteins. We have unmatched equity in the area of creating food experiences to meet our customers’ search for those experiences, not simply chow or belly fill. Serving up these experiences will require that we continue to nurture and grow the trust we have gained in our beef and agriculture community by providing truth, transparency and value. By pleasantly surprising and delighting our customers constantly. By pushing beyond the status quo and reinventing the beef experience, even when we are experiencing tremendous success in demand. Especially when we are experiencing tremendous success.

“Coming together is a beginning; keeping together is progress; working together is success.”  ~Henry Ford

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