Dr. David HughesEmeritus Professor of Food Marketing

International Bison Conference

Big Sky Resort

Big Sky, Montana, USA

Thursday, July 6th, 2017

Bison in the Global Perspective:

Exotic Meat or The 21st Century

Sustainable Premium Protein?

@profdavidhughes

www.supermarketsinyourpocket.com

Traffic Issues in Montana

The Morning Traffic Can Be Dreadful in Wales, Too!

Global Future for Animal Protein Looks Bright … Particularly in Emerging Markets.

60% of Global Meat Market Growth Will Come from Asia, and Most of This from China

That’s a Lot of Meat and Humongous Amounts* of Soybeans!

* 86 million t. soybean imports to China for 2016/17 (25% world production)

Health 58%

Saving money 21

Animal welfare concerns 20

Food safety concerns 19

Environmental concerns 11

Groups more pre-disposed to reduce meat consumption:

• Women

• Older consumers (65+ years)

Source: NatCen Survey of British Social Attitudes, February 2016

US Red Meat Availability Fell from 132 lbs. in 1970 to 95 lbs. in 2014

Source: USDA ERS, 2017

by 2015 and $170 Million by 2016

Backed by Well-Heeled

Investors

Bill & Melinda

Li Ka-shing

(October 10th, 2016)

Flexitarian Trend:

• part-time vegetarian

• meat-reducer

• driven by health and/or

social concerns

• and, economy, too?

Ground Beef and Haricot Beans Mixture

Vegan-Friendly Burger

Flexitarian Burger

Quorn is a Meat Substitute

(myco-protein) & Replicates

Chicken Particularly Well

It’s Better for Bison, Too!

Mad Human Disease?:

A Case Study

(February 21st, 2017)

Recommends 460 Grms. per Week NOT 460 Grms. for Dinner

Source: Dietary Guidelines, Netherlands Nutrition Centre, March 2016

Subtle As Ever, PeTA Places

Controversial Advertisements

on Huge Display in View of the

Urban Freeway in Dallas!

June 28th, 2017

Wonderfully Old-Fashioned!

Now, “What’s for Dinner?”:

• Chinese

• Pasta

• Italian

• Tapas

• Takeaway

Gone .. the way of all flesh!

Or, Increasingly for Millennials “What’s Dinner?”!Canadian beef consumption p.c. down by one-third since 1980

1992

Powerful Global Consumer Trends

Powerful Global Consumer Trends

Powerful Global Consumer Trends

Powerful Global Consumer Trends

NRA 2017

Single diners 42

2 diners 36

3 diners 11

4 or more

diners

11

2015 30 mins

1990 45 mins

1980 60 mins

1950 90 mins

5% more For healthy

22% more For better taste

Considerably more For ready made meal solution!

Source: Kantar Worldpanel UK

Increasing Complexity Driving Food Purchasing Behaviour

It’s About VALUE & VALUES

Including:

• savvy (value) shopping

• local/national

- place of production

- care of local economy

- local is fresh/healthier

• provenance

• heritage

• sustainability

• animal welfare

• worker welfare

Source: Deloitte Inc. Food Value Equation Survey, 2015, IGD and Hughes

“How’d You Like Your Meat?”

“With Adjectives, Please”:

• free-range ….;

• vegetarian-fed …

• American/Canadian ....

• Durham/Triple U Ranch …

• Rocky Mt. Buffalo Ranch ….

• rare breed ….

• heritage ….

• Omega-3 rich …

• organic …..

• happy …

• environmental friendly …

• dry-aged

• “original” Paleo Diet …

Not All UK Chicken Meat

is Inexpensive Meat:

Chickens with Adjectives

are £18/kg. ($23)

Bacon Made From

Pigs with a College

Education!

• Antibiotic-free• Hormone-free• Additive-free• Campylobacter-free• Salmonella-free• E.coli-free• GMO-free• Woody-breast-free• Free-range• Gluten-free• Deforestation-free

(and face a bewildering barrage of logos & claims)

Source: Ellison et al, University of Nebraska, 2017

In America, If Something

Is Worth Doing, It’s Worth

Doing to Excess!

I’d Doubt that the Average

Wild Turkey Drinker is Hugely

Concerned About Whether

The Grains in His Bourbon

Are GMO or Not!

• Do you share my (and my peer group’s) values on

social, environmental, business issues?

• Are you listening to me and how quickly can I contact

you (re. food issues, existing and new products, etc.)?

• What are you doing to excite me and my taste buds?

• What’s the story about your food, its ingredients and

producers – provenance, seasonality, heritage, etc.?

• How are you helping me be in charge of my health &

wellness? Make sure it’s fast, easy and effective!

• Can you help me to understand more/have

fun/impress my friends about food, cookery, nutrition?

• Are your products available when/wherever I want?

Eat Right Eat Real*: North America’s Premium Red MeatIn-Tune with Consumers’ Values, Health, Nature & the Environment

* © Dennis McKnight, The Innovators (Canada)

“Big Food” seeking

to expand its product

portfolio into a more

Millennial-friendly area

and much higher growth

in sales

Bison (Buffalo) are Blessed as Major Companies Seek

the “Green” Halo and Heritage Associated with the

Live Animal. Exploit This Ruthlessly!

Source: “The Why Behind the Buy”, ACOSTA 13th Annual Survey, USA, 2016

Millennials Want to Cook & Impress Their Friends

But They Need Help – Meal Kits Provide a Solution

*

* Bill Niman’s Ranch

Dynamic Future: Multi-Channel Routes for Food to the Consumer

Restaurant Meals Delivery Electronic Platforms in the USA

*

* Incomes +$30,000 per year

China: Unequivocally, The Export Market with the Highest Potential

Premium Export Target: Chinese Millennials

• 400+ million of them (19-35 year old)

• “Little Emperors/Empresses” generation (only child)

• socially-conscious but, also, narcissistic

• hugely internet-connected/social media savvy

• world-leading on-line shoppers

• free-spenders

• privileged, entitled, enjoy the good life & getting better

• privileges & status symbols approved and expected

• North American product/image associations are cool

Xinxin with New Baby Wang

Economics Professor with a

Banker Husband.

Lives in Apartment with In-Laws

Downtown Hangzhou City*.

Singles’ Day November 11th, 2016

She Purchased 90+ Items On-Line

Including Imported Meat**, Fruit, Wine

Alibaba Sales 11/11/16 $17.8 Billion

** Purchased an extra fridge to store frozen goods bought on-line

* G20 Global Economic Summit held in Hangzhou, 2016

Global Differences In What Shoppers Value in Meat

A Knot

of Frogs

“Free Range” Eggs

or Meat Popular for

Food Safety Attributes

NOT for Animal Welfare

Hangzhou, China

• key signal of value of relationships

• gifting helps to secure future needs (reciprocity)

• gift-giving frequency & value increasing each year

• for “ordinary” urban folk, range $80-400 per gift

• price and perceived quality hugely important

• food is seen as an ideal gift (great practicality and can

indicate giving “health” to recipient)

• over 50% of gifts given in China are food

• imported foods have built-in gift appeal (may indicate

greater respect and sincerity)

• North American foods are firmly on the “gift map”

Source: Mintel, 2016

In the UK, Bison/Buffalo are Exotic & We’re Not Sure Whether to Eat Them or Cuddle Them!

Lord & Lady Seaford

Keep Bison Meat Well Away

from Meats identified as Being

EXOTIC!

Farmers Are Fashionable (But Not EVERY Farmer Should Meet a Consumer!)

The Story is About The Farmer

Don’t Put Bison in a Bubble!“I’m Willing to Pay Substantially More for Bison than Beef Because”

Finish the Sentence for the Customer!

CONTACT POINTS:

e-mail:

profdavidhughes@aol.com

Telephone contact:

mobile +44(0)7798 558276

@ProfDavidHughes

Retail Blog: www.supermarketsinyourpocket.com