Enhanced Pork Labeling Research: Study Results September 24, /24/2015

Research background and objectives Background: The new rule becomes effective January 1, FSIS: Description Designation for Raw Meat and Poultry Products Containing Added Solutions, Final Rule Specifically the new rules states that: All products that contain a solution must have specific details of the information included on the package label. This information must be shown directly below the product name and must use the same font type. The font size must be no less than one-third the size of the font used for the product name and must use the same font style (bold, italic, underline etc.). The term “enhanced” can no longer be used; instead, use the word “contains.” 2

Research background and objectives Objectives: Measure awareness and purchase behavior of “enhanced” meat and poultry under the current labeling regulations Determine how the new labels will impact overall consumer attitudes toward enhanced fresh pork or change purchase intent/behavior Ascertain the reasons for any change in purchase intent/behavior, positive and negative 3

Research methodology A 15-minute online survey with a total of 1,200 respondents was conducted summer of Potential respondents were screened to ensure that they do at least 50 percent of the shopping and food preparation for their households and that they do not avoid red meat or poultry. A sample size of 1,200 respondents has an error rate of +/-2.8% at the 95% confidence level. If this same study were repeated 100 times, in 95 of 100 times, the results would be within +/-2.8% of those of the current study. (Sample sizes of 400 have an error rate of +/- 4.9%.) 4

73% of respondents are aware of enhancements Awareness of Meat and Poultry Enhancement 5

57% of respondents said they purchased enhanced product Purchase of Enhanced Meat and Poultry Products in the Past 6

Many don’t realize they are buying enhanced products Percent of Customers Who Have Purchased Enhanced Meat and Poultry Products in the Past 7

56% said they would purchase with statement Likelihood of Purchasing Pork Product with Solution of Salt, Water and Spices 8

Reasons for concern There are too many additives. 6% I need more information before I could decide. 5% Reasons totally unrelated to enhancement of the product. 17% I don't like added solutions. 8% I prefer my meat more natural with nothing added. 10% Too much salt/sodium. 14% I’m not sure one way or the other. 9% I prefer my own spices, seasonings. 12% Reasons Given for Being Somewhat Or Very Unlikely to Purchase Pork Containing Water, Salt and Spices 9

36% would purchase with expanded statement Likelihood of Purchasing Pork Products with Solution of Water and Various Ingredients 10

Reasons for concern Too many chemicals/artificial ingredients. 24% I don’t understand what these ingredients are and if I don't know, why I would eat them. 23% Too many additives. 12% Too much salt/sodium. 11% I prefer my meat more natural with nothing added. 8% Reasons totally unrelated to enhancement of the product. 4% I’m not sure one way or the other. 4% Reasons Given for Being Somewhat or Very Unlikely to Purchase Pork Containing Water and Various Ingredients 11

Concerns grow as ingredient list grows 12 Percent of Consumers Very/Somewhat Likely to Buy Enhanced Pork Products

Positive attitudes about added solution Consumer Agreement with Positive Statements about Solution Added Meat/Poultry % of Respondents Who Somewhat/Strongly Agree 13

Negative attitudes about added solution Consumer Agreement with Negative Statements about Enhanced Meat/Poultry % of Respondents Who Somewhat/Strongly Agree 14

Conclusions and implications While 73% of consumers state they are aware of enhanced pork products and 57% say they have purchased them, there are still consumers who are not aware of this practice. When provided a label with the new statement format included, 56% of respondents said they would purchase pork with a simple solution called out, and 36% said they would purchase a product with the expanded solution. These statements do raise concerns with some consumers about additives. The simpler the solution on labels, the better the response from these consumers. Consider these results when reviewing current statements that need to be adjusted to comply with the new rule by January 1,

This message funded by America’s Pork Producers Patrick Fleming Director of Market Intelligence & Innovation 16