Bord Bia Meat Market Development & Promotional Programmes Michael Murphy Director of Markets Presentation Outline • Marketing Environment Context • Market Highlights 2009 • Strategy Implementation 2010 – Beef – Pork & Bacon – Lamb – Q-Mark Ireland – Other Programmes • Market Resources at your Disposal GDP Growth in Major Meat Markets Significant declines in nearly all 2008 % 2009(f) % World 3.0 -1.1 USA 0.4 -2.7 China 9.0 8.5 Japan -0.7 -5.4 Russia 5.6 -7.5 Eurozone 0.6 -4.2 UK 0.7 -4.4 Germany 1.2 -5.3 France 0.3 -2.4 Italy -1.0 -5.1 Netherlands 2.0 -4.2 Ireland -3.0 -7.5 Source: IMF World Economic Outlook October 2009 Today’s Consumer • Pursuit of greater value & anxious about 2010 • Looking to simplify life • Need a bit of fun in their lives • Environment is aspirational now • Natural solutions • Looking for reassurance, trust and stability Retailer Pressure UK Fresh & Chilled Retail Sales % Volume sold on promotion 100 22.1 25.4 77.9 74.6 90 80 70 60 50 40 30 20 10 0 52 w/e 30 Nov 08 52 w/e 29 Nov 09 No Promotion On Promotion Sterling/Euro Exchange Rates 1.1 January to December 2009 Sterling 12% weaker versus Euro 1.0 2008 0.9 2009 0.8 0.7 0.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Climate Change & Welfare Eat Less Meat Agenda Irish Livestock & Meat Exports Species 2008 €m 2009(e) €m 200/2008 %+/- Beef 1,607 1,400 -13 Pigmeat 343 290 -15 Poultry 203 180 -11 Sheepmeat 167 166 -1 Live Animals 148 213 +44 2,468 2,249 -9 Total MARKET HIGHLIGHTS 2009 Pigmeat Recall • Recall & Compensation Challenging • Britain – Trade recovered relatively quickly • Continental Europe – Variable reaction, but is largely back to normal • International – Japan & US remained opened throughout – Hong Kong, South Korea & Singapore reopened after clarification – China & Russia are actively being pursued, hopeful for immediate movement Retail Customers Irish Beef 2001 27 2009 70+ Beef Premium Launches Since 2008 New Business (6) Italy New Premium Business (24) 3 new premium retail listings Britain 1 new foodservice account 2 new premium foodservice listings France & Belgium 2 new foodservice account 3 new premium retail listings 2 new retail accounts 2 new premium retail listings 2 new foodservice accounts 2 new premium foodservice listings Germany & E. Europe Netherlands 3 new premium retail listings 3 new premium retail listing Spain & Portugal 3 new premium foodservice listings Scandinavia 3 new premium retail listings UK - Integrated Consumer Promotions Targeted consumer promotions highlighting Ireland’s excellence in beef production and grass-fed beef credentials • Consumer Promotion – 2 National On-Pack Promotion, Summer and Autumn • Advertorials – Regional Press & National Consumer Magazines • Radio – Syndicated Radio Interviews & Recipe Slots on LBC Radio Holland Beef Promotion • Sales promotion with individual retailers to market • Six retailers participating with 1 million onpack offers and advertising • 14 Michelin star and top chefs securing premium Image of Irish beef Italy & Other European Beef Promotions • • Promotions implemented with 8 Italian retailers to support sales of 28,000 tonnes Bespoke promotions to fit individual Italian retailer strategies Foodservice promotion events to partnering key foodservice wholesalers Steakhouse Promotions • • • • • • • Spain Portugal France Belgium Czech Sweden Germany • • Lamb Market Diversification & Generic Promotion France PR Events Trade Website Chefs’ Irish Beef Club & New Media • Chefs key Vehicles in Image Development • Dutch & French Chapters Humming • Successful Lunch in Belgium • Further PR Investment in 2010 Exploiting ‘New Media’ & Web Technology’ to communicate with consumers. Image Development Internet Marketing France • St. Pattrick’s Day online competition with 2 retailers = 20K entrants, 13K visitors to Irish beef website in March alone • Sept: Launch of beefisbeautiful.fr microsite – Podcast Irish beef recipes with chefs club members & leading culinary bloggers – 27 articles published by influential bloggers (incl. the 3 most read French culinary blogs) – 125,800 consumers have read the Irish beef articles on blogs, a further 11K visited the microsite • Sponsor of the Culinary Bloggers Fair for 2nd consecutive year, coverage on Dailymotion and leading blogs Restaurant Chain Promotion Blockhouse – Waitstaff Incentive 56,000 Irish beef steaks served over 3 weeks in 34 outlets nationwide Ireland Q-Mark Promotion • Securing the ‘domestic market’ • Awareness 85% • Understanding 48% • Penetration (% Facings) – – – – – Fresh Beef 90% Fresh Pork 90% Fresh Bacon 40% Cooked Hams 28% Fresh Chicken 85% Source: Bord Bia Survey Nov 2009 Ireland Q-Mark TV Advert (40 Second Version Home Chef Sponsorship) SECTOR PLANS 2010 Beef Plans 2010 • Promotions with Retailers • Business Development activities with key wholesale and foodservice accounts • Consumer Media Promotions • Promoting Premium Image • Building Higher Value Offerings • Sustainability Pork & Bacon Plans 2010 • Promotion & Increased Usage of the Quality Assured Mark in Ireland both at Retail and Foodservice • Bacon & Cooked Ham Priority • Restoration & Re-Building of the Export Trade in Russian and Chinese Markets • Identifying business opportunities for Irish Processors with Continental and Eastern European Manufacturers of value added pigmeat products. • Evaluating opportunities with Manufacturers for increased ingredient customisation in Ireland Lamb Plans 2010 • Promotion to increase consumption in Ireland • Rollout of the Bord Bia Quality Mark in the Irish market • Support Third Year of Agneau Presto’ generic promotions in France • Assist Exporters in diversifying into new markets/niches and increasing boneless exports by customised promotions with retail, wholesale and foodservice accounts Poultry & Other Plans 2010 • Increase consumer awareness of quality assured chicken in Ireland • Indentifying export opportunities for poultry offal, dark meat and other manufacturing cuts • Work with the Irish Egg Association to deliver effective consumer promotion of Quality Assured Irish Eggs • Work with the Craft Butchers Association of Ireland to rollout a Butcher Specific Quality Assurance Accreditation Trade Fairs & Market Access Initiatives Event Date Location Gulf Food February Dubai Foodex March Tokyo Tavola March Courtrai, Belgium Club de Gourmets April Madrid Cibus May Parma Sial China May Shanghai Sial October Paris • • • Asia Beef & Pigmeat 3 Year Programme Market Access Group Emerging Market Access Opportunities Irish Market Promotional Calendar 2010 2010 M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 M T Generic Campaign January 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 February Pigmeat Campaign March 9 10 11 12 13 29 2 31 Easter Lamb Beef Campaign 1 30 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 19 20 21 22 23 24 25 26 27 28 29 30 17 18 19 20 21 22 23 24 25 26 27 28 29 April Chicken 30 31 30 Generic Campaign May 1 2 3 4 5 June 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 27 28 29 30 31 Lamb Campaign 1 2 3 4 5 6 7 Generic Campaign July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 August 1 2 3 4 Lamb Campaign September 1 2 3 4 5 6 7 8 9 11 12 Chicken October 1 2 3 4 5 6 7 8 9 10 11 November 12 13 14 15 16 Generic Campaign 17 18 19 20 21 22 23 24 25 26 27 28 29 30 16 17 18 19 20 21 22 23 24 25 26 27 28 Pigmeat Campaign 1 December 10 2 3 4 5 6 7 8 9 10 11 12 13 14 15 29 31 Packaging & Brand Development Marketplace Ireland 2010 Tuesday February 9th • 300 buyers hosting by Bord Bia • ‘Cost Effective’ Exhibition Model in Croke Park • 150+ Irish Companies Participating • 1000+ Buyer/Supplier Meetings Planned • Business Development & Follow up Plan in Place • Displacement Risks being Managed The ‘Fellowship Programme’ • New & Innovative approach to increasing the sales/research capacity of Irish exporting food & drink companies • 25 Graduates based in 12 markets • 168 assignments for 113 Irish food exporting companies • Partnership with the Smurfit Business College • Evaluate & Refine • 2nd Fellowship Programme to be launched in the 1st half of 2010 MARKET RESOURCES AT YOUR DISPOSAL Bord Bia Footprint 1431 client enquiries 763 client meetings 880 buyer presentations & meetings 545 Buyer Enquiries 788 business services GDP Growth in Major Meat Markets Are we seeing the green shoots? 2008 % 2009(f) % 2010(f) % World 3.0 -1.1 3.1 USA 0.4 -2.7 1.5 China 9.0 8.5 9.0 Japan -0.7 -5.4 1.7 Russia 5.6 -7.5 1.5 Eurozone 0.6 -4.2 0.3 UK 0.7 -4.4 0.9 Germany 1.2 -5.3 0.3 France 0.3 -2.4 0.9 Italy -1.0 -5.1 0.2 Netherlands 2.0 -4.2 0.7 Ireland -3.0 -7.5 -2.5 Source: IMF World Economic Outlook October 2009