1. Matt Southam Multiple Retailer Account Manager AHDB Beef & Lamb UK Beef and Lamb Market Update

2. Red Meat Purchase Trends Factors Affecting Consumption Trends Market Solutions Agenda

3. Red Meat Purchase Trends Factors Affecting Consumption Trends Market Solutions

5. © Kantar Worldpanel Fresh & Frozen Poultry Fresh & Frozen Meat Jul 15Jul 14Jul 13Jul 12Jul 11 Volume (000s Kgs) Primary Red Meat vs Primary Poultry | 52 w/e 19 July 2015 | Volume This volume decline has been consistent over the last 4 years, while primary poultry has grown -2.8% -0.9% -2.5% -1.8%

6. © Kantar Worldpanel Fresh & Frozen Meat Jul 15Jul 14Jul 13Jul 12Jul 11 Penetration % Households buying red meat have declined significantly in the last 3 years Penetration % | Primary Red Meat | 52 w/e 19 July 2015

7. © Kantar Worldpanel Jul 15 Jul 14 Jul 13 Jul 12 Jul 11 Class EClass DClass C2Class C1Class AB Volume (000s Kgs) The most affluent shoppers haven’t reduced their red meat purchases, while C1 and low social class shoppers are buying considerably less. Social Class | Volume | Primary Red Meat | 52 w/e 19 July 2015

8. © Kantar Worldpanel Jul 15 Jul 14 Jul 13 Jul 12 Jul 11 Aged 65+Aged 55-64Aged 45-54Aged 35-44Aged 28-34Under 28 Volume (000s Kgs) Older shoppers have been the key drivers of red meat decline. They account for a third of the category but their volume has dropped by nearly a quarter in the last 5 years. Shopper Age | Volume | Primary Red Meat | 52 w/e 19 July 2015 -23%

9. Volume (000 Kgs) | Total Market | Total Market | 52 w/e | Demog % of Total Demog © Kantar Worldpanel Older shoppers account for a large proportion of beef sales – challenge is to get younger age group engaging

10. GB - LAMB Volume (000 Kgs) | Total Market | Total Market | 52 w/e Demog % of Total Demog © Kantar Worldpanel

11. The growth areas over the last 12 months centre around fresh chicken and convenient meal solutions

12. Primary Meat | 12 w/e | 19 Jul 15 | Net Change (000 Kgs) Existing customers are switching away from most meats in preference for fresh chicken. Fresh pork, lamb and frozen chicken have all seen notable switching losses.

13. main shop top up main shop top up Online main shop top up Convenience main shop top up Discounters main shop top up High street Supermarket Channel Switching £372m Bubble size = £ sales £249m £421m £183m RT43 (Grocery) 52 w/e 24 May 2015 SHOPPING EVOLUTION

14. Red Meat Purchase Trends Factors Affecting Consumption Trends Market Solutions

15. Price is the main driver of product choice Source: IGD ShopperVista 1Price 2Special offers 3Quality or performance 4Taste or smell 5Use by or sell by date 6Familiar 7Healthy option 8Brand 9Ease of using 10Ethical or eco-friendly

16. Eating @ home

17. Multicultural Society Foreign-born population 2011: 13% 2001: 9% Most reported countries of birth of non-UK born residents Ireland India Pakistan 20012001 20112011 India Poland Pakistan 10% 9% 8% 6% 10% 7% India Poland Pakistan 9% 8% 6% 7% Source: ONS / nVision

18. Chart slide – animated. Use this slide for charts. HOUSEHOLDS ARE CHANGING – CATERING FOR A UNIT OF ONE OR TWO INCREASINGLY IMPORTANT UK HOUSEHOLDS COMPOSITION Source: ONS 1-2 Person households 3+ Person households

19. % penetration by number of people at the meal Red meat struggles to get served in single person occasions Source: Kantar Worldpanel

20. © Kantar Worldpanel Eating alone sourced from Tesco +5.4% year on year (c £500m)

21. Convenience

22. 1980 60 minutes 1990 45 minutes 2014 31 minutes Evening Meal Cook/Prep Time

23. Less and less time to prepare

24. % penetration of each occasion Source: Kantar Worldpanel Penetration of Red Meat by meal cook time

25. 25 Scratch 20142013 Number of occasions (Mils) Chart Footnote THE DECLINE OF HOMEMADE FOOD

26. © Kantar Worldpanel Aged 65+ aged 45-64 Aged 35-44 Aged 28-34 Aged under 28 Housewife Age Takeaway Convenience Assembled Assisted Scratch % of occasions KWP Usage 52 w/e March 2015 THE KNOW-HOW, THE TRADTION BUT NOT THE WILL TO COOK THE ELDERLY – NOT WORTH COOKING FOR ONE

27. © Kantar Worldpanel Aged 65+ aged 45-64 Aged 35-44 Aged 28-34 Aged under 28 Housewife Age Microwaved Oven Cooked Grilled/Toasted Heated on Hob Fried Boiled/Steamed % of occasions MICROWAVING THE CHOICE OF THE ELDERLY KWP Usage 52 w/e March 2015

28. © Kantar Worldpanel Child 4 and under Child 5-9 Child 10-15 Female 16-24 Female 25-34 Female 35-44 Female 45-54 Female 55-64 Female 65+ Male 16-24 Male 25-34 Male 35-44 Male 45-54 Male 55-64 Male 65+ Total Sausages TurkeyPorkLambFishChickenBeefTotal BaconTotal Protein Total Foods % of occasions Kantar Worldpanel Usage // Total in Home and Carried Out Consumption // 52 w/e 24 th of May 2015 BEEF & LAMB – NEED TO STRIVE TO ATTRACT THE YOUNG (THROUGH DISHES AND QUICK TO COOK)

29. Health

30. % of servings AND HEALTH AS REASON FOR CONSUMPTION CHOICE REACHING ALMOST 30% …

31. During the past month, 1 in 5 claim to have eaten less meat. 31 Base: All respondents in Meat 1 section (1095) who changed how often they eat red meat (278) EQ7: Thinking about your consumption of red meat during the last month, have you eaten it …? EQ8: Which, if any, of the following are reasons why your consumption of red meat has changed over the last month? Red meat consumption changed because: 26% I’ve changed my diet as I believe it is healthier to eat less red meat 24% Meat has become more expensive 22% The amount of red meat I consume varies by season 10% I allocate my shopping budget differently 10% I have changed my diet to include more protein

32. People recognise fish and chicken to be important in a healthy diet, but less than 1/3 think that red meat or beef is 32 Base: All respondents in Meat 2 section (1031) MQ5: Thinking now about different types of meat or fish, which of these would you say …? Health perceptions relating to meat types More fatty 63% 52% 33% Sausages Bacon Lamb 31% Pork Can cause heart disease 45% 43% 40% Sausages Bacon Red meat 21% Beef Can cause high blood pressure 41% 40% 37% Sausages Bacon Red meat 22% Beef Can cause cancer 22% 21% Red meat Bacon Sausages 11% Beef Good source of iron 63% 49% 19% Red meat Beef Lamb 15% Fish Important in a healthy diet 77% 62% 32% Fish Chicken Red meat 26% Beef Not good for your health 47% 40% 18% Sausages Bacon Red meat 10% Beef, pork Health

33. + ©Kantar Worldpanel

34. Beef is seen as tasty, flavourful and versatile, more so than the other meats. Consumers see poultry as suitable for any day, versatile and easy to cook with, more so than the other meats 34 Base: All respondents in Meat 1 section (1095) EQ17: Which, if any, of these statements do you feel apply to each of the meat or fish options listed? Taste and versatility perceptions relating to meat types Beef Lamb PorkFish Poultry Taste

35. Meals by Cuisine type Millions of occasions % share of total foodActual YOY change% YOY change Italian Food1940.8m3.3%-63.9m-3.2% Indian Food1036.9m1.8%+24.4m+2.4% Oriental Food742.5m1.3%+52.3m+7.6% Mexican Food439.8m0.8%+32.3m+7.9% Total British6798.2m11.7%+35.1m+0.5% Roast Dinners1354.6m2.3%-10.6m-0.8% Other British5539.7m9.5%+33.9m+0.6% Kantar Worldpanel Usage In Home / Carried Out Consumption 52 w/e 24 th of May 2015

36. Cooking Sauces…

37. Changing dietary habits as move towards meal based dishes. 6. Spaghetti Bolognaise 7. Soup & Bread 8. Curry & Rice 9. Curry10. Stew11. Chinese 1. Sandwich2. Roast Dinner 3. Pizza4. Assembled Pasta 5. Soup 12. Chinese & Rice 13. Cheese on Toast 14. Chicken, Pots & Veg 15. Shepherds Pie 16. Pizza & Chips 17. Lasagne18. Beans on Toast 19. Sausage, Pots & Veg 20. Pork Chops, Pots & Veg Source: Kantar Worldpanel

39. © Kantar Worldpanel The average purchase to consumption time for a product bought from a convenience store is HALF that as one bought from a supermarket FOR TONIGHT CONVENIENCE STORES = SOLVING PROBLEMS

40. © Kantar Worldpanel ConvenienceTotal Multiples Total Grocers Total Market Breakfast Lunch Evening Meal Teatime Total Snacks CONVENIENCE STORES OVER TRADE IN EVENING MEALS – FOR TONIGHT KEY % of occasions

41. © Kantar Worldpanel We do much more shopping “for tonight” in MFP

42. Red Meat Purchase Trends Factors Affecting Consumption Trends Market Solutions

43. VALUE FOR MONEY v VALUE FOR TIME

44. Content slide – animated. Use this slide for text and bullet points. Do not add copy outside of the assigned placeholders! Number of Total Food occasions which take over 30minutes to prepare -3% Number of MFP occasions which take over 30minutes to prepare -6%

45. Content slide with image – animated. Use this slide for text, bullet points and images. Do not add copy outside of the assigned placeholders! 7% 5 year volume growth Details: Total RTC MFP

46. Content slide with image – animated. Use this slide for text, bullet points and images. Do not add copy outside of the assigned placeholders! Details: RTC & Primary Chicken Portions – 52w/e Feb 2015 £9 /kg £6 /kg

47. Content slide with image – animated. Use this slide for text, bullet points and images. Do not add copy outside of the assigned placeholders! 15% £15.66 /kg -3% Details: PP Salmon Fillets – TSFC vs Natural – volume growth – 52w/e Feb 2015 vs LY £12.77 /kg

48. MATCH THE OFFER TO THE NEED & SPEND I spend 19% more to save time (convenient/ready-made)I spend 5% more for healthI spend 4% more for ethicsI spend 20% more to look after the countrysideI spend 25% more tasteI spend 234% more for solutionsI spend 87% more when it’s for a special meal Save time uplift based on ready made v homemade; Health based on yoghurts (low sugar/fat) ethics based on coffee, fair trade; Look after countryside based on organic yoghurt; solutions based on meal deals v average cost of a meal for two; special meal based on consumer perception of special meal and amount spent v mean; taste based on Premium PL chilled ready meals

49. Sous-Vide & Ready to Cook

50. Packaging Solutions

51. Meet new needs (Popcorn) Meet new occasions (Belvita) Attract new consumers (Philadelphia) TO GROW THE CATEGORY CRITICALLY APPRAISE INNOVATION & NEW LINES

52. © Kantar Worldpanel Dish Not in dish Total SausagesTurkeyPorkLambFishChickenBeefTotal Protein cuts & dishes Kantar Worldpanel Usage // Total in Home and Carried Out Consumption // 52 w/e 24 th of May 2015 COULD WE INSPIRE THE END SOLUTION BETTER? % of occasions

53. A GAP – Meal Deals to Inspire HOMECOOKED?

54. Home based problems (needs) Store based solutions (execution)

55. STARTING WITH THE END IN MIND.

56. Around two-thirds are inspired to look for recipes to broaden their selection of meal time choices. The willingness to learn is also key for many. Food websites and cookery books are the main sources of information, while 1 in 5 self-create 56 Inspirations to look for new recipe ideas I fancy something different to eat 63% I see the recipe somewhere and want to give it a try 47% I like to try new recipes 46% I want to learn how to cook/cook something new 38% I want to learn to cook more recipes 34% I am looking for recipes which other members of the household will like 32% I want to improve my overall diet 29% Sourcing of new recipe inspiration Base: All respondents in Meat 1, 2 sections who can cook at all (2076) YGq7: What makes you look for new recipe ideas? EQ32: Please select where you go for inspiration for new recipes?

57. © Kantar Worldpanel More focus on line recipe solutions; selling the end result. Meal of the week, dish of the day; seasonal food

58. Summary Beef & Lamb volume sales are in long term decline at the expense of poultry, fish and ready meals Households continue to move toward meal solutions rather than ingredients Time (to prepare, cook and time available) is a key determinant of protein & product choice and relevance. Household make-up, health concerns and cooking confidence also contributes to declining sales Convenient product solutions, packaging and dish inspiration can help ensure beef and lamb remains part of the modern consumer’s meal repertoire