Putting More PorkOn the Plate

A Presentation byNancy Kruse

The Kruse Company1

Putting More Pork on the Plate:Objectives• Explore opportunities for pork• Identify challenges, obstacles• Review ideas that boost consumption

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Putting More Pork on the Plate:Agenda• Five Strategic Issues• Five Hot Food Trends

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Five Strategic Issues:Key Points• Protein Power• Snackification• Food Activism• Real Food • Food Stories

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Five Strategic Issues1. Protein Power• Retail Grocery: product

claims jumped 54% past 5 years

• Restaurants: menu mentions jumped 64% past 5 years

• US is largest market in world for high protein products

Source: Mintel; Technomic, Inc.

High Protein Greek Yogurt, Energy Bars

Take Supermarkets by Storm5

More Than Half of AdultsWant More Protein in Diet

Source: NPD Group

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Dairy Industry Focuses on Protein…

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…And Restaurant ChainsGetting on Board, Too…

Taco Bell Promotes Protein

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…As Consumers View MeatAs “Superior Source of Protein”• 50% believe animal protein to be best source• Consumers identify best sources as:

• Beef• Chicken• FishThen distantly…• Pork• Ham• Shellfish• Lamb• Bacon Panera Bread’s

Smoked Ham & Swiss Sandwich

Source: The NPD Group

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Protein Power:Implications for Pork• Opportunity to exploit• Need to connect pork <--> protein• Emphasis on addition NOT subtraction• Watch for backlash• Expect changing guidelines

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Five Strategic Issues2. Snackification

1%

5%

6%

9%

36%

42%

Usually just snacks, nomeals

3 meals, no snacks

3 meals with many snacksbetween

Usually skip or replace 2meals with snacks

3 meals with few snacks inbetween

Usually skip or replace onemeal/day with snacks

24/7 LIFESTYLES UPENDING CONVENTIONAL MEAL PATTERNS

Source: Technomic Snacking Occasion Consumer Trend Report

Millennials AreSuper Snackers…• “Time-crunched multi-taskers”• Convenience food on demand• Fresh, real, less processed

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…And Entrepreneurs MeetTheir Demands

Nature Box Delivers Healthful Small Bites

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Boomers, Gen XersTaking Small Bites, Too

Lower prices Fewer caloriesGraze-ableShareableGrab and go

Arby’s Snack ‘n Save Menu

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Opportunity for Next-Gen ItemsAt Both Grocers, Restaurants

McDonald’s Snack Wrap

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Snackification:Implications for Pork• Need to reconsider positioning, portioning, packaging• Second-generation product opportunity• Emphasis on good and good tasting• Monitor for changes as Millennials age, form households• Monitor for changes as HH income recovers

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Five Strategic Issues3. Food Activism SELECTED HOT BUTTONS, BUZZ WORDS

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Antibiotic/Hormone/Steroid Free Biodynamic Cage Free Clean Foods Carbon Footprint Energy Efficient Eco-Friendly Ethical Fair Trade Free Range Gestation Crates Grass Fed

GMOs Humanely Raised Local Natural Organic Permaculture Rainforest Alliance Recyclable Sustainable Traceable Transparent Vegetarian/Vegan Whole Foods

Animal IssuesGaining Support

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General Mills SellingNon-GMO Cheerios…

• Announced Jan 2, 2014• GMO Inside waged digital campaign -40M Facebook Posts -200M You Tube Views• Sales “down somewhat” since change

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…And 1MM+ Pro-Labeling Petitioners “Most in USDA History”

• $25MM study begins in 2015• Will look at GMO impact on health• “Impartial” scientists in Russian, Europe, US

McDonald’s shunsSimplot’s Innate potatoes

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Everyone’s A Journalist…

“10 Most Influential Mommy Bloggers” Include:Heather B. Armstrong, 1.5MM+ followers-Based in Utah

Jenny Lawson, 100M+ followers-Based in Texas

Stacie Connerty, 50M+ followers-Based in Georgia

Source: Cision

…In WiredWorld

“FDA Finds Antibiotic Use Rising in Livestock”• “Amount of medically important antibiotics for use in

animals for meat grew 15% 2009-2012”• “Risk to human health more significant than previously known” especially re: children

Source: Reuters, 12/3/14 22

Restaurant ChainsKeeping It “Clean”

Phasing out chickens raised with antibiotics

Verified sustainable beef by 2016

Artificial additives, preservatives out by 2016

New, sweeping animal products policy; no gestation crates, hormones, antibiotics

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Food Activism:Implications for Pork• Monitor digital conversations• Stay ahead on hot-button issues• Enlist appropriate advocates, spokespeople• Recognize emotional underpinnings• Pay special attention to kids, moms• Remember: Farms trump factories

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Five Strategic Issues4. Real Foods Butter Is Back!• Butter consumption +24% past decade• 5.6 lbs per capita 2013 vs. 4.1 lbs in 1997• “Wholesome, pure, not a lot of other ingredients”

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Lard Reappearing In Restaurants

Bang Bang! Pie Shop, Chicago,“Proudly Uses Leaf Lard”

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Saturated Fat Controversy:Jury Is Still Out on Impact

“Personal Ambition, Bad Science, Politics and Bias”*Reasons Americans Are

• Eating 25% more carbs since early 1970s• Consuming more vegetable fats• Consuming more sugar

*Wall Street Journal; May 3, 2014

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Nose-to-Tail Cuisine: Butchers Bounce Back

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Firebird’sPork Porterhouse

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Microwave OvensRunning Out of Steam…

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…As Consumers Seek Involvement in Food Prep

Convenience Alone Isn’t Enough:Small Appliance Category 50%+ Growth Since 2000

• Slow Cookers• Toaster Ovens• Crock Pots • Griddles• Rice Makers

Ball Canning’s FreshTECH Home Canning Machine31

Five Strategic Issues5. Food Stories

FARMERS’ MARKETS ON GROWTH CURVE,THOUGH SLOWING DOWN IN SOME AREAS

1994 2004 2013 Number of Markets 1,755 3,706 8,144

Source: USDA AMS

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Chain Restaurant PromosGoing Straight to Source

McDonald’s ToutsLocal Growers…

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…And Red Lobster“Seas Food Differently”

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American Food + Beverage’sChile-Rubbed Heritage Pork Chop

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Real Food/Stories:Implications for Pork• Quality definition changing

• “Real” foods favored, though undefined

• Powerful consumer drivers• Both millennials and boomers + Gen X

• Convenience pendulum swinging back• No longer ease at any cost

• Need to get out ahead and direct, not follow, the trend• Connectivity, communication key

• Remember: Farms trump factories

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Five Hot Food Trends:Key Points

OPPORTUNITY KNOCKS• Comfort• Ethnic• Premium• Better for You• Heritage

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I. Comfort Foods:Applebee’s Crosscut Ribs• Classic BBQ• Sweet Asian Chile• Smoky Chipotle

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Wendy’sPulled Pork Menu• BBQ Pulled Pork Cheeseburger• BBQ Pulled Pork Sandwich• BBQ Pulled Pork Fries

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Gordon Biersch’sBaby Brats

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• Märzen Lager• Märzen Mustard

Bologna Makes Splash on Menus

Hardee’s Fried Bologna Biscuit

The Root Restaurant & Bar’s Bologna Sandwich

House-Made Green Chile Mustard 42

Cracker Barrel’sApricot-Glazed Pork Chops

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II. Ethnic Foods: Del Taco’s Carnitas Burritos

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Slow-Braised

Shari’sPorchetta Street Sandwich

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Carrabba’s Italian Grill’sProsciutto-Wrapped Pork Tenderloin

With Port Wine-Fig Sauce

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Noodles & Company’sFig & Pig Flatbread

• Naturally-Raised, Slow-Braised Pork• Crumbled Feta, Parmesan• Balsamic-Fig Glaze

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California Pizza Kitchen’sKorean BBQ Pork Pizza

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Which Wich’sBanh Mi Sandwich

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III. Premium:Boarding House’s Pork Chop

• Bone-In Berkshire• Roasted Butternut Squash• Mascarpone Grits• Butternut Squash Aigre-Doux• $31

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Jimmy John’sUltimate Porker Sandwich

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Papa Murphy’s Premium Pizza Line

• Spicy Fennel Sausage• Artisan Thin Crust• Sun-Dried Tomatoes• Creamy Garlic Sauce

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LongHorn Steakhouse’sBourbon-Molasses Pork Tenderloin

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Tea Brined, Served with Homemade Spoon Bread

Fogo de Chao’sCenter-Cut, Bone-In Pork Chops

Brazilian Spice Rub54

Texas Land & Cattle’s Texas Smoked Board for Two• House-Smoked Sirloin• Bacon-Wrapped Quail• Roasted Pork Loin in Whiskey Demi-Glace• $44.99

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IV. Better for You:Cracker Barrel’s Spice-Rubbed Pork Chop

“Campfire seasoning and orange mustard glaze give this bone-in chop real flavor. 420 CALORIES AS SHOWN”

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Shari’sBlackberry Pulled Pork Salad

“Fresh Blackberries Grown in Northwest”

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Corner Bakery’sBBLT

• Bacon• Bacon• Local Tomatoes

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Starbucks’Bacon-Wrapped Dates

Balsamic Glaze 59

Chipotle’sHumanely-Raised Pork

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V. Pork Heritage: Icons, Images Everywhere

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Maialino’sPig’s Head

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Smith & Wollensky’sCracklin’ Pork Shank

• Slow Cooked, then…• …Fried for Crispy Skin• Pineapple-Mustard Glaze• Creamy Sauerkraut• Firecracker Applesauce

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The Alembic’sHot Dog with Chicharrones

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Red Robin’sSouthern Charm Burger• Brown-Sugar Glazed Angus Patty• Honey Barbecue Sauce• Candied Bacon

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Pork + DoughnutsAlso Popping Up

Do-Rite Donuts & Coffee’sMaple-Bacon Donut

Gourdough’sBoss Hog with Pulled Pork

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Five Hot Food Trends:Implications for Pork• Pork products extremely versatile

• Work with major trends

• Pork compatible with assertive spices, flavors• Stands up well to “heat”

• Many trends favor pork as ingredient• Less reliance on primal cuts

• Opportunity to tell pork story• Personalize, give it a face• Remember: Farms trump factories

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Putting More Pork on the Plate:Summary and Conclusion• Outlook bright for pork products

• Demand for real foods• Demand for protein• Demand for authenticity

• Need to communicate, educate• Animal welfare issues• Antibiotics/steroids/hormones

• Major opportunity to tell pork’s story• Remember: Farms trump factories

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