Alberta Livestock and Meat Agency Ltd. Canadian Consumer Retail Meat Study October 2016

Context Online survey: 1,609 Canadian meat shoppers Third survey in series (2010, 2012, 2016)

Survey Content Meat attributes Packaging, preparation & retail Nutrition & health Socio-cultural trends & marketing Farming & processing methods Transparency & trust

Methodology Process consistent with past surveys LegerWeb participants Pre-tested June 9-12 Data collected June 10 - July 4 38 minute length Representative by region & age

Target Respondents Adults 18+ Have primary or shared responsibility for grocery shopping for their household Have primary or shared responsibility for household meat purchases Do not work in a disqualifying industry (grocery retail, meat/livestock production, butcher shop, marketing research) Able to complete in English or French

Accuracy Margin of error does not apply to online surveys of the general public Only provided as guidelines to enable comparison of reliability between regions *95% confidence interval (19/20) Region Sample Size Margin of Error* Overall Total 1,609 +2.4 pts Ontario 571 +4.1 pts Quebec 379 +5.0 pts BC 216 +6.7 pts Alberta 235 +6.4 pts Manitoba/Sask. 104 +9.6 pts Atlantic

Demographic Segments ALMA defined the following generational segments: 18-23 years – Generation Z 24-44 years – Millennials 45-50 years – Generation X 51-70 years – Boomers 70+ years – Seniors Respondents described their ethnic/cultural backgrounds. The following oversamples were obtained: Chinese (n=168): ±7.6 pts South Asian: (n=124): ±8.8 pts Muslim (n=112): ±9.3 pts

Meat Attributes Trade Off Task Consumer choice: packages with different combinations of features & pricing

Meat Attributes Importance of Canadian Origin Canadians are willing to pay more for fresh meat of Canadian origin Validates findings from previous surveys

Meat Attributes Importance of Canadian Origin % saying it is Very Important to Buy Canadian Bison (52%) Beef (48%) Chicken (48%) Pork (46%) Lamb (31%) Reasons for Buying & Eating Canadian Fresh Meat Support local/Canadian farmers Support local/Canadian economy Freshness

Meat Attributes – Trade Off Canadians are also willing to pay more to have no hormones or antibiotics, for all types of meat

Meat Attributes – Trade Off The higher cost of organic fresh meat is a significant barrier to purchase = $$$

Reasons for Purchase Derived from Cuts of Meat Purchased & Perceptions of Different Cuts Stronger driver Weaker driver

Retail Choice Consumers appear to be shopping around at a greater number of retailers than previously Most retailers have experienced increases in being considered a place the consumers regularly shop for fresh meat Continuing the trend noted in the 2012 study, mass merchandising/big box retailers experienced the greatest percentage increases in regular fresh meat shoppers

Stocking preferred package sizes & cuts of meat Retail Choice While price is often indicated as a primary reason for retail choice, a number of other factors are also rated very important: Quality Convenience Cleanliness Stocking preferred package sizes & cuts of meat

Information Supporting Purchase Decisions Flyers continue to motivate Canadian consumers to purchase, and are often used from home in advance of selecting where to shop and what to buy In-store recipes can also be motivating to most consumers, particularly when considering an unfamiliar cut of meat

Use of Technology Since 2012, there has been a substantial increase in consumers’ reported ownership of smart phones and tablets Growth in ownership of laptop computers has stabilized but still maintains the highest share among all mobile device types Meanwhile, there has been a decline in ownership of eReaders With smartphones nearing the same level of ownership as laptops, it is increasingly important for web based information to be provided in a mobile-friendly format and via smartphone apps

Consumers’ online activity often includes: Looking at grocery store websites and flyers Looking at details such as retail locations & hours Fewer but still significant numbers: Researched grocery products online before making a purchase decision Downloaded or printed grocery store coupons Posted a recipe online Posted a photo of a meal they had with meat

QR Codes While users of QR codes still represent a limited proportion of consumers in Canada overall, they represent a substantial proportion of smartphone users as smartphone use continues to grow Creating online functions and activities that involve QR codes would be appropriate for inclusion in a mobile app

Past 30 days fresh meat purchase… Fresh Meat Purchases Past 30 days fresh meat purchase… Chicken continues to be the most popular meat purchase Consumption has decreased for all types of meat since 2012

Fresh Meat Consumption – Predicted Five years from now… Meat Type Eat More Eat the Same Eat Less Bison 22 51 23 Chicken 18 69 11 Lamb 13 56 27 Pork 6 68 25 Beef 8 58 32

Meat Avoidance / Reduction [NEW 2016] K1C. For each statement below, please rate your agreement using a 10 point scale where 10=agree completely and 1=disagree completely…

Nutritional Value Canadian meat consumers believe that fish and chicken are the most healthful proteins

Price & Value Shopping [NEW 2016] K2. How often do you do the following?

Trust in Meat Production in Canada Virtually all consumers have at least some trust and confidence Almost two-thirds indicate strong trust/confidence (8,9,10 ratings) [NEW 2016] J6A. To what extent do you agree or disagree with the following statements about meat production in Canada?

Responsibility for Ensuring Trust & Confidence J10. Who should be responsible for ensuring Canadian meat earns your trust and confidence?

Psychographic Segmentation Profiles One of the challenges in understanding consumer needs is that different consumers have different needs and preferences Five consumer segments have been identified, each having different purchase behaviour & opinions with respect to fresh meat Their demographic characteristics help form a picture of these groups and will help enable targeting of applicable messages

Psychographic Segmentation Profiles Convenience Shoppers Healthy Empty Nesters Coupon Clippers Affluent Meat Lovers Trendsetting Professionals