Funded by the Beef Checkoff www.beeffoodservice.com

Jane Gibson Executive Director Foodservice Marketing

Funded by the Beef Checkoff

“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 www.beeffoodservice.com

Funded by the Beef Checkoff • • • •

Restaurants Are Labor-Intensive

Average sales per full-time equivalent employee Eating-and-drinking places Grocery stores Gasoline service stations Auto dealers $59,000 $233,000 $485,000 $707,000

Source:

Bureau of Labor Statistics; National Restaurant Association www.beeffoodservice.com

Funded by the Beef Checkoff

Foodservice = 48% of the U.S. food dollar

- Source Technomic U.S. Food Dollar

Foodservice Retail www.beeffoodservice.com

Funded by the Beef Checkoff

Consumer Spending in Foodservice

1970 –2009 (In Billion$)

$600 $500 $400 $300 $200 $100 $0 70 73 76 79 Source:

National Restaurant Association

82 85 88 91 94 97 2000 '03 '06 '09

Funded by the Beef Checkoff

Beef in Foodservice

$24.5-billion operator purchases

(wholesale)

7.9-billion pounds

www.beeffoodservice.com

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 Colleges & Universities Schools ■ Bars, taverns ■ Cont. Care Retirement Centers ■ Correction Facilities

Funded by the Beef Checkoff

FY2010 Program Update

www.beeffoodservice.com

Funded by the Beef Checkoff

FY2010 Promotions Update

NCBA Marketing Managers Wendy Timmerman – Southwest Region Allison Wenther – Eastern Region Shelley Bradway – Midwest Region www.beeffoodservice.com

NATIONAL CATTLEMEN’S BEEF ASSOCIATION 2010 Channel Marketing Team (Retail, Foodservice & Veal) Jane Gibson

Executive Director, Foodservice Marketing NCBA Headquarters - Denver 303-850-3371 Office [email protected]

Jim Henger

Executive Director, Channel Marketing NCBA Headquarters - Denver 303-850-3379 Office [email protected]

Trevor Amen

Manager, Channel Marketing Northwest Region 303-850-3386 Office [email protected]

Dean Conklin

Executive Director, Veal Marketing NCBA Headquarters - Denver 303-850-3387 Office [email protected]

Wendy Timmerman

Manager, Channel Marketing Southwest Region 303-335-8611 Cell [email protected]

Penny Nau

Director, Channel Promotions NCBA Headquarters - Denver 303-850-TBD Office [email protected]

Cheryl Hendricks

Manager, Channel Marketing Central Region 303-850-3372 Office [email protected]

Allison Wenther

Manager, Channel Marketing Eastern Region 717-449-9102 Cell [email protected]

Shelley Bradway

Manager, Channel Marketing Midwest Region 317-842-3106 Office [email protected]

Steve Leigh

Director, Channel Marketing NCBA Headquarters - Denver 303-850-3324 Office [email protected]

Funded by the Beef Checkoff

FY2010 Promotions

• Team began Foodservice calls in Jan.

• To-date: 3 national promotions approved • Execution in 2,137 restaurant units • In 43 states www.beeffoodservice.com

Funded by the Beef Checkoff

FY2010 Update Advertising, PR, Information

NCBA Executive Director, Foodservice Marketing Jane Gibson www.beeffoodservice.com

Funded by the Beef Checkoff

“National Best of NAMA”

www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff

FY2011 Foodservice Environment

www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

Funded by the Beef Checkoff

NCBA Foodservice Draft AR 2011

www.beeffoodservice.com

Funded by the Beef Checkoff

Product Strategy Objective:

Enhance the value proposition of beef in the marketplace

2011 Priorities Addressed:

#4 - Make Beef an Easy Choice #5 Demonstrate Beef’s Value www.beeffoodservice.com

Funded by the Beef Checkoff www.beeffoodservice.com

NCBA Authorization Request $1,360,000

Funded by the Beef Checkoff

1,000,000 Foodservice Locations

• • •

65% = independent 35% = chain

trendsetters nimble early adopters • • • high volume long R&D process mass marketers www.beeffoodservice.com

Funded by the Beef Checkoff

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 www.beeffoodservice.com

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.

Funded by the Beef Checkoff

Tactic 1A

Foodservice Channel Communications, Visibility and Image: $440,000

- Paid Media (advertising – print and digital) - Earned Media (editorial) www.beeffoodservice.com

Funded by the Beef Checkoff

Tactic 1B

Menu Development and Information Sharing: $570,000

  - recipes, photographs - brochures, fact sheets  - website, e-newsletter www.beeffoodservice.com

Insights into the Decision-Making Process at Today’s Chains

Implications for the development and retention of your business Produced in partnership with An Exclusive NRN Benchmark Study

Which Members Decide on Need: 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).

Operations President/CEO Marketing R&D Resource outside company Purchasing CFO Other 0% 2% 6% 15% 11% 10% 20% 30% 44% 40% 50% 60% 58% 68% 60% 70% 80%

An Exclusive NRN Benchmark Study Produced in partnership with

Final Say: 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).

President/CEO Operations Marketing Purchasing R&D CFO Resource outside company Other 0% 3% 10% 26% 22% 17% 12% 11% 20% 30% 40% 50% 53% 60% 70% 73% 80%

An Exclusive NRN Benchmark Study Produced in partnership with

Funded by the Beef Checkoff

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 www.beeffoodservice.com

Funded by the Beef Checkoff

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 www.beeffoodservice.com

Funded by the Beef Checkoff

Attachment A

Co-operative Promotions: +$150,000

The Attachment A requests an additional $150,000 for foodservice co-operative promotions.

www.beeffoodservice.com

Funded by the Beef Checkoff

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 www.beeffoodservice.com

Funded by the Beef Checkoff

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 www.beeffoodservice.com