1. Research Funded by The Beef Checkoff 1 Market Research Working Group - Today, Tomorrow and the Future -

2. 2 Program Specific Studies BIWFD.com New Products – Round Testing and Convenient/Value Added Sensory Test

3. 3 Open Exploration Recipes Shopping for Beef Cooking w/ Beef Wrap-up Interview Introduction Interview BeefItsWhatsForDinner.com 1-hour remote usability session 12 qualified participants Primary food planner and preparer in the home Primarily female Online recipe user Serve beef in the household at least weekly Mix of geographic locations Beef and Health Entertaining Community In Order of Priority

4. 4 BeefItsWhatsForDinner.com Pros Comprehensive content “It’s really informative… a lot of the other sites don’t offer basic food information.” “I like this… I don’t really know other techniques besides grilling... I’d love to watch a video on how to pan-broil… This seems straightforward, and the instructions and the timing chart are good.” “I like it, it has a lot of stuff. I like the tool bar on the top. I like that I can choose from Recipes, Shopping for Beef, and different grades of beef.”

5. 5 BeefItsWhatsForDinner.com Pros Comprehensive content Color, look, layout appealing Recipe Landing Page “I really like the format with the ingredients and instructions separate… having the nutritional information is great….” “I like the Top 5 and Most Viewed on recipes on the left.”

6. 6 BeefItsWhatsForDinner.com Pros Comprehensive content Color, look, layout appealing Actual recipes, chef’s hints, video (for some) Home Page Impressions “You’ve got a little something about everything on here!” “The recipes have the photos and they look appetizing.. They are easy to understand, easy to get to.”

7. 7 Cons Site awareness can be increased Recipe finder!!! BeefItsWhatsForDinner.com “This is confusing. It looks like a lot of work… all of the menus and checkboxes… If I was in a hurry, I wouldn’t use it.” If I want to make something and I type in the search “Beef and brocolli”, “Beef and carrots” or “Beef and rice” and I get no results – I’m gone.” Recipe Finder / Search Function “I liked [the Advanced Recipe Finder because you’ll be able to view the type of beef you want to use and you can make quick recipes with what you already have.”

8. 8 Cons Site awareness can be increased Recipe finder!!! Left navigation bars Minimal number of ratings BeefItsWhatsForDinner.com “I don’t like the menu on the left. These should be shown when you roll your mouse over [the main navigation menu].” “I felt like I had to dig through it a little more… I might have given up… Now, it seems different than it was before, I have to relearn where things are.”

9. 9 BeefItsWhatsForDinner.com – NEXT STEPS When funding becomes available the Web site will be changed in order of priority In order to continually keep the consumer needs in mind there are thoughts of conducting ongoing Web site reviews as the site changes Web Site Changes Additional Research

10. 10 New Products Two sensory tests have recently been completed Convenient/Value AddedRound – Value Added Possibilities Top Round Cap/Gracilis Pectineus Adductor Semimembranosus

11. 11 50 adult consumers tasted 18 new products/cuts – 7 whole muscle cuts, 2 controls, 9 handheld products Also included 25 teens (8-12 yo) and 25 tweens (13-18 yo) 6 qualitative exit Interview groups conducted – 2 each group Conducted in Minneapolis from June 23-26, 2009 Convenient/Value Added Sensory Product Test - METHODOLOGY

12. 12 Convenient/Value Added Sensory Product Test - OBJECTIVES Primary objective was to test consumer reactions to a variety of different test products. The products were developed as a response to consumer desires including: –Convenient / Versatile products –Easy and quick packaging Denver Steak Marinade on DemandMongolian Beef Veracruz Fajita George Forman Grill Ready

13. 13 Convenient/Value Added Sensory Product Test - OBJECTIVES Primary objective was to test consumer reactions to a variety of different test products. The products were developed as a response to consumer desires including: –Convenient / Versatile products –Easy and quick packaging –Products for the ‘On the Go’ lifestyle Steak Bites Express Roll - 5 Varieties Standing Sandwiches – 3 Varieties Eggrolls

14. 14 Convenient/Value Added Sensory Product Test – NEXT STEPS Information being communicated to various suppliers to help refine their products Additional testing being designed to present these to ‘end players’ in the channel (grocery / food service) Communication Additional Research

15. 15 Convenient/Value Added Sensory Product Test - OUTCOMES -Please Stay Tuned - Results are currently Under Construction!!

16. 16 Top Round Heel Superficial Digital Flexor Gastrocnemius Cap/Gracilis Pectineus Value Creation Work #3 – Round Cuts Adductor Semimembranosus

17. 17 Testing completed Consumer sensory … 5 round cuts, 3 controls, 2 cutting methods for bottom round Trained sensory panel … 2 round cuts, 2 controls Foodservice chef … 11 chefs, 4 round cuts, 2 controls Online test of name options

18. 18 Name Appeal San Antonio steak Merlot cut Tucson Steak Santé Fe Cut Round Petite Tender Braison Impact at: Most Appealing Great TasteWorth MoreRestaurantGrocery 46%78%65%76%74% 15%63%56%57%58% 33%74%66%76%72% 39%76%65%78%72% 38%74%64%72%71% 19%56%47%55%53% Strongly/Somewhat agree (Net) 6 name alternative finalists were tested for each steak, the winners tested well across a range of variables Adductor 25% 26% 17% 22% 26% 28% 16% 34% 28% 33% 35% 31% 60% 45% 55% 61% 59% 41% ExtremelyVery appealing Gastroc Semimembranosus Gracilis Pectineus Superdigital Flexor

19. 19 Detailed Results Name Choice: Santé Fe Cut Like texture and mouthfeel. See need to jaccard and marinate prior to delivery to chef Beats skirt Topline: Good potential as “fajita” alternative. Is not inherently flavorful, needs a technical solution. Proposed Gameplan: 1.Turn the cut over to the “intervention squad” … tumble, needle, etc. 2.Try 1-2 cooked applications with consumers (fajitas plus ?) 3.Second round of chef testing if possible Gracilis NA

20. 20 Tracking Studies Mintel NET/NMCS

21. 21 Mintel - Beef as “hero” where Full text search matches ("beef" OR "angus" OR "kobe" OR "pastrami" OR "hereford" OR "hamburger" OR "skirt" OR "sirloin" OR "strip") AND NOT ("ham" OR "pork" OR "bacon") and Date Published is between Jan 2004 and May 28, 2009and Sub-Category matches Meat Products and Country matches USA. Number of Beef Product Launches Beef as “Hero” 31% growth from 2004-2008

22. 22 Mintel - Claim trends in beef as “hero” Beef as “Hero” Key trends include: No additives/preservatives Ease of use All natural

23. 23 NET Analysis of long-term shifts in in-home eatings In combination with the National Meat Case Study, suggests product mix is changing to lower priced ground beef

24. 24 2007 NMCS Research All Rights Reserved24 Percentage of Pounds In the Case Fresh Meat or Poultry Category Self-Service Only % of Pounds Counted 200220042007Point Change Chicken35%36% 0% Beef (Whole Muscle)24%21% 0% Pork22%23%22%-1% Ground Beef12%13% 0% Turkey6% 0% Lamb1% 0% Veal<1% 1%+<1% Other<1% 0% Total100% 0% This analysis excludes Sausage, Smoked Offal, Heat & Serve, and Corned Beef. 2X1.6X

25. 25 Analysis of NET confirms that we are losing ground with some key lifestage groups Steaks/RoastsGround BeefMisc.Total Overall (1 B LPE’s)(800 M LPE’s)+300 M(1.5 B) Working Parents (growing #’s) (320 M LPE’s)+45 M+20 M(250)

26. 26 Wrap - Up Research to: –Enhance program effectiveness –Look for opportunities to increase value –Rank messaging … what is most effective

27. 27 Any questions? Thank you!!