Poultry & Eggs : Tapping into Consumer Needs Aidan Cotter Growing the success of Irish food & horticulture AIDAN COTTER Growing the success CHIEF EXECUTIVE BORD BIA of Irish28food & horticulture JANUARY 2009 3rd Nov “A vigorous domestic food and drink sector is important to every nation in this increasingly uncertain world” David Bell & Mary Shelman Harvard Business School, May 2010 Growing the success of Irish food & horticulture Need to show what Irish food & drink stands for Growing the success of Irish food & horticulture Smart, Green Growth: Poultry & Eggs Consumer Confidence New technologies to improve efficiencies Enriched cage & free range systems Innovation & added value Promotion International market access Growing the success of Irish food & horticulture Consumers the focus of everything we do Growing the success of Irish food & horticulture The Consumer Lifestyle Trends “I want to stay in control of my busy life and make sure I am at my best for the challenges the day presents” “I want to be in control of my health and wellness, to manage or improve it through making better choices” “I need to balance the stresses in my everyday life with experiences that are fun and fulfilling” “I like to pursue better value, to help maintain my lifestyle and to get the most from the money I have” “I would like products that create less negative impact on the world; I want choices that make me feel good without harming my wallet ” “I am looking for products and brands that are real and authentic, because they have stood the test of time and remained true to their heritage; they provide me with comfort and reassurance” Growing the success of Irish food & horticulture Drivers Rise of new media and communication technologies Sub-trends Value seeking The deepening desire for good value Accessible luxury Luxury items at more everyday prices Increasing availability of information Exclusive choices The demand for exclusivity and rarity Counselled consumption Economic anxieties The rise of specialist advisers and peer reviews for all consumption matters Expert status Growth in pursuit of knowledge and discernment for identity and status Growing market competition and choice Growing the success of Irish food & horticulture Just right for me The shaping of products and services to meet individual needs Value seeking The deepening desire for good value Counselled consumption The rise of specialist advisers and peer reviews for all consumption matters Growing the success of Irish food & horticulture Value seeking The deepening desire for good value 15.0% Total Meat 10.0% 10.1% Poultry Meat price inflation 5.0% End 2008 2009 2010 0.0% -0.5% -5.0% -4.5% -10.0% Source: Kantar Worldpanel -15.0% 02nd 30th 28th 25th 22nd 22nd 19th 17th 14th 12th 09th 06th 04th 01st 29th 27th 24th 21st 21st 18th 16th 13th 11th 8th Nov Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Nov Dec Jan Feb Mar Apr May June July Aug 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 Growing the success of Irish food & horticulture Value seeking The deepening desire for good value +5% 6 Chicken sales on the increase… 4 2 0 -2 Meat Chicken -1% -2% -4 -6 -7% -8 Volume Value Source: Kantar Worldpanel 52 w/e 4th Oct Growing the success of Irish food & horticulture -6% -6% p/kg Value seeking The deepening desire for good value +6% 7 6 5 4 3 2 1 0 -1 -2 -3 Eggs sales also increase… +3% -3% Volume Value Source: Kantar Worldpanel 52 w/e 8th Aug Growing the success of Irish food & horticulture Av price Value seeking The deepening desire for good value Growing the success of Irish food & horticulture Value seeking The deepening desire for good value Growing the success of Irish food & horticulture Value seeking The deepening desire for good value Eggs … great value for money Growing the success of Irish food & horticulture Drivers Sub-trends Declining trust in governments and big business Going back to the way life used to be Back to basics: Celebrating tradition: Resurgence of respect for tradition and heritage Economic anxieties Craftsmanship: Rising interest in the people and artisan skills behind products Behind the scenes: Rising globalisation Transparency as a mark of quality and trust Passion for place: Growing interest in where things come from as a mark of quality and authenticity Rising consumer curiosity and desire for transparency Growing the success of Irish food & horticulture Reframing tradition and heritage: A modern take on the past Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Back to basics: Going back to the way life used to be Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Drivers Increasing availability of information Sub-trends Boosting the body Strategies to protect against physical illness and disease Finding balance Looking for balance in nutrition, diet and lifestyle Scientific advances Image control Managing weight and external appearance Growing public and media focus on health and image Pure and fresh Seeking reassurance from Mother Nature Coping strategies Using or excluding products in a response to modern-day ailments Increasing life expectancy Growing the success of Irish food & horticulture Guiltless vices Mitigating the effects of indulgence Boosting the body Strategies to protect against physical illness and disease Pure and fresh Seeking reassurance from Mother Nature Growing the success of Irish food & horticulture Image control Managing weight and external appearance Boosting the body Strategies to protect against physical illness and disease Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Eight out of ten consumers are aware of the Bord Bia Quality Mark The vast majority say that it influences their choice of purchase Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity 100 90 80 70 60 50 40 30 20 10 0 Quality Mark usage at retail Q3 2010 Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Quality Mark usage at retail on chicken 16% 56% 28% Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity • 57,000 tns in 2009 60 • 53% chicken fillet 50 40 Trend in imports • Valued at €182 m total fillet 30 20 10 0 2003 2004 2005 2006 2007 2008 2009 Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Growing Consumer Awareness of the Quality Mark 100 90 80 70 60 50 40 30 20 10 0 2004 2005 2006 2007 Growing the success of Irish food & horticulture 2008 2009 2011 (f) New Christmas Promotion Growing the success of Irish food & horticulture Passion for place: Growing interest in where things come from as a mark of quality and authenticity Poultry & Eggs : Tapping into Consumer Needs Aidan Cotter Growing the success of Irish food & horticulture AIDAN COTTER Growing the success CHIEF EXECUTIVE BORD BIA of Irish28food & horticulture JANUARY 2009 3rd Nov