1. Funded by the Beef Checkoff www.beeffoodservice.com Jane Gibson Executive Director Foodservice Marketing

2. Funded by the Beef Checkoff www.beeffoodservice.com “Foodservice” Definition “Food prepared away from home…” E stablishments that prepare and serve food, meals, snacks and beverages on-premise or for take-out, delivery, catered events

3. Funded by the Beef Checkoff www.beeffoodservice.com Eating-and-drinking places $59,000 Grocery stores$233,000 Gasoline service stations$485,000 Auto dealers$707,000 Restaurants Are Labor-Intensive Average sales per full-time equivalent employee Source: Bureau of Labor Statistics; National Restaurant Association

4. Funded by the Beef Checkoff www.beeffoodservice.com Foodservice = 48% of the U.S. food dollar - Source Technomic

5. Funded by the Beef Checkoff Consumer Spending in Foodservice 1970–2009 (In Billion$) Source: National Restaurant Association

6. Funded by the Beef Checkoff www.beeffoodservice.com $24.5-billion operator purchases (wholesale) 7.9-billion pounds Beef in Foodservice

7. Funded by the Beef Checkoff Targets: menu decision-makers in all segments…  “Commercial” Restaurants: meal destinations  Limited Service Restaurants (LSR)  Full Service Restaurants (FSR)  Noncommercial / on-site foodservice  Lodging (hotel banquet catering, room service)  Retail Hosts (e.g. Nordstrom’s, Neiman-Marcus, Borders)  Recreation (ballparks, theme parks, country clubs, cruise ships...)  Healthcare ■ Military  Business & Industry ■ Bars, taverns  Colleges & Universities ■ Cont. Care Retirement Centers  Schools ■ Correction Facilities

8. Funded by the Beef Checkoff www.beeffoodservice.com FY2010 Program Update

9. Funded by the Beef Checkoff www.beeffoodservice.com FY2010 Promotions Update NCBA Marketing Managers Wendy Timmerman – Southwest Region Allison Wenther – Eastern Region Shelley Bradway – Midwest Region

10. NATIONAL CATTLEMEN’S BEEF ASSOCIATION 2010 Channel Marketing Team (Retail, Foodservice & Veal) Wendy Timmerman Manager, Channel Marketing Southwest Region 303-335-8611 Cell wtimmerman@beef.org Allison Wenther Manager, Channel Marketing Eastern Region 717-449-9102 Cell awenther@beef.org Trevor Amen Manager, Channel Marketing Northwest Region 303-850-3386 Office tamen@beef.org Shelley Bradway Manager, Channel Marketing Midwest Region 317-842-3106 Office sbradway@beef.org Steve Leigh Director, Channel Marketing NCBA Headquarters - Denver 303-850-3324 Office sleigh@beef.org Jim Henger Executive Director, Channel Marketing NCBA Headquarters - Denver 303-850-3379 Office jhenger@beef.org Cheryl Hendricks Manager, Channel Marketing Central Region 303-850-3372 Office chendricks@beef.org Jane Gibson Executive Director, Foodservice Marketing NCBA Headquarters - Denver 303-850-3371 Office jgibson@beef.org Dean Conklin Executive Director, Veal Marketing NCBA Headquarters - Denver 303-850-3387 Office dconklin@beef.org Penny Nau Director, Channel Promotions NCBA Headquarters - Denver 303-850-TBD Office TBD@beef.org

11. Funded by the Beef Checkoff www.beeffoodservice.com FY2010 Promotions Team began Foodservice calls in Jan. To-date: 3 national promotions approved Execution in 2,137 restaurant units In 43 states

12. Funded by the Beef Checkoff www.beeffoodservice.com FY2010 Update Advertising, PR, Information NCBA Executive Director, Foodservice Marketing Jane Gibson

13. Funded by the Beef Checkoff www.beeffoodservice.com “National Best of NAMA”

14. Funded by the Beef Checkoff www.beeffoodservice.com

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17. Funded by the Beef Checkoff www.beeffoodservice.com FY2011 Foodservice Environment

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22. Funded by the Beef Checkoff www.beeffoodservice.com NCBA Foodservice Draft AR 2011

23. Funded by the Beef Checkoff www.beeffoodservice.com 2011 Priorities Addressed: #4 - Make Beef an Easy Choice #5 - Demonstrate Beef’s Value Product Strategy Objective: Enhance the value proposition of beef in the marketplace

24. Funded by the Beef Checkoff www.beeffoodservice.com NCBA Authorization Request $1,360,000

25. Funded by the Beef Checkoff www.beeffoodservice.com 1,000,000 Foodservice Locations 65% = independent trendsetters nimble early adopters 35% = chain high volume long R&D process mass marketers

26. Funded by the Beef Checkoff www.beeffoodservice.com 1,000,000 Foodservice Locations Tactics 1A, 1B REACH AND IMPACT ALL Especially efficient in reaching the 65% among whom are the most influential, trendsetting independents who first adopted “value cuts” which currently sell more than 173-million lbs/yr in foodservice. In addition 1A, 1B = visibility and credibility among high- volume chains Tactics 1C, 1D CONNECT AND PROMOTE with decision makers of the 35% that are multi-unit restaurant chains and foodservice management companies with high-volume sales potential.

27. Funded by the Beef Checkoff www.beeffoodservice.com Tactic 1A Foodservice Channel Communications, Visibility and Image: $440,000 - Paid Media (advertising – print and digital) - Earned Media (editorial)

28. Funded by the Beef Checkoff www.beeffoodservice.com Tactic 1B Menu Development and Information Sharing: $570,000  - recipes, photographs  - brochures, fact sheets  - website, e-newsletter

29. An Exclusive NRN Benchmark Study Produced in partnership with Insights into the Decision-Making Process at Today’s Chains Implications for the development and retention of your business

30. An Exclusive NRN Benchmark Study Produced in partnership with Q. Which of the following members of your team decides whether or not there is a need to implement new product development strategy (example: A pizza chain that adds sandwiches as a new line)? (Please identify who is on this executive strategy team)? (Check all that apply). Which Members Decide on Need:

31. An Exclusive NRN Benchmark Study Produced in partnership with Q. At the end of a new product development project, who has the final say on whether or not the product is introduced into restaurants? (Check all that apply). Final Say:

32. Funded by the Beef Checkoff www.beeffoodservice.com Tactic 1C Foodservice Channel Outreach: $250,000 Connecting with channel influencers, decision-makers to increase demand and build advocacy. -- CEOs, COOs (MUFSO/NRN) -- CMOs (Marketing Executives Group/NRA) -- Corp. Executive Chefs (SOS BBQ, Flavor Summit/Food Arts) -- National Beef Backers

33. Funded by the Beef Checkoff www.beeffoodservice.com Tactic 1D Co-operative Promotions: $100,000 Promotional partnerships that increase beef demand through incremental sales and support breakthrough menu introductions for a variety of products considered high-priority by the industry

34. Funded by the Beef Checkoff www.beeffoodservice.com Attachment A Co-operative Promotions: +$150,000 The Attachment A requests an additional $150,000 for foodservice co-operative promotions.

35. Funded by the Beef Checkoff www.beeffoodservice.com NCBA FY2011 AR Communications: paid, earned… $440,000 Menu devel, info…………………..$570,000 Channel Outreach.……..……….. $250,000 Co-operative Promotions….……. $100,000 Total…..…$1,360,000 Attachment A: Promotions………..$150,000

36. Funded by the Beef Checkoff www.beeffoodservice.com Implementation supports program execution and includes operational and overhead expenses like… - Salaries and benefits - Benefits plan administration - Human resources staff and training - Accounting staff - Facilities (office space, utilities) - Equipment (computers, phones, copiers, printers) - Equipment maintenance and support - Computer software (Microsoft, Outlook, Timekeep, etc.) - Insurance - Taxes - Shipping - Bank fees - Legal fees - Audit fees