National Meat Case Study 2010 Overview

NMCS Research All Rights Reserved National Meat Case Study Objectives To take a comprehensive look at the U.S. fresh meat case. Build science-based trend analysis over time. Identify changes in today’s meat case. Reveal areas of opportunities. To supplement other industry research.

NMCS Research All Rights Reserved 2010 National Meat Case Study Methodology Audit Team Texas Tech University, Cryovac, National Pork Board, National Cattleman’s Beef Association Sample Major Supermarket Chains All continental US geographic areas Northeast, Southeast, Midwest, Mountain and West Coast. 72% repeated 2007 Study Supermarkets. Scope Physical Count of all Beef, Pork, Veal, Chicken, Turkey, and Lamb, including Sausage, Heat & Serve, and Value-Added. Self-Service & Full Service Linear Feet Counting and Description of SKUs for the Portion of the Meat Case Where Packages Were Not Counted. Merchandising Practices and Point-of- Purchase Materials. Procedures Data gathered in first quarter Visited supermarkets at various times of day and each day of the week. Goal. To be representative of major supermarket chains and major metro markets.

NMCS Research All Rights Reserved Macro Information (New Information in Red)

NMCS Research All Rights Reserved Micro Information (New Information in Red) * Deleted from 2010 Study

The Audits Yielded Large Package Counts to Draw Conclusions Both Comparable and Total Samples Will Be Used in Analysis Comparable Samples, used for Trend Analysis, are based on the 2002 Sample which excluded Heat and Serve, Smoked Offal, Corned Beef, and Sausage NMCS Research All Rights Reserved 6

Pork Packages Declined Both in Supermarkets and Club Stores Percent of Packages NMCS Research All Rights Reserved

Pork Pounds Declined Both in Supermarkets and Club Stores Percent of Pounds NMCS Research All Rights Reserved 8

9 Self-Service Non-Fresh Meat Linear Feet Gained Share in 2010 Percent of Linear Feet  Fresh Meat: Beef, Pork, Lamb, Veal, Chicken, Turkey and Other.  Non-Fresh Meat: Processed, Sausage, Ham, Seafood, Heat & Serve, Value-Added and Non-Meat NMCS Research All Rights Reserved

10 Ground Beef Gained Share in Linear Feet in Fresh Meat Percent of Linear Feet Beef (Whole Muscle) and Ground Beef Combined in NMCS Research All Rights Reserved

11 Higher Shares in Linear Feet for Seafood, Value-Added, Other Processed, and Ham Percent of Linear Feet Sausage and Ham: These were included in the “Other Processed” Category in NMCS Research All Rights Reserved

National Meat Case Study 2010 Pork Module

Pork Categories Shifted Significantly Percent of Packages The analysis excludes Sausage, Heat & Serve and Smoked Offal. Smoked Chops are included. Gainers: Roasts, Ribs, Steaks, and Ground Pork Losers: Chops, Tenderloins, Offal, and Miscellaneous NMCS Research All Rights Reserved

Pork Nutritional Information Percent of Packages % Point Change Chops26%34%40%38%-2% Roasts50%60%65%70%+5% Ribs31%34%41%46%+5% Tenderloins75%78%90%89%-1% Steak28%19%31% NC Ground Pork50%73%71%80%+9% Subprimal38%41%61%68%+7% Ingredient29%31% 45%+14% Offal9% 19%9%-10% Total32%41%53% NC NMCS Research All Rights Reserved

Pork Cooking Information Percent of Packages % Point Change Chops32%38%32%37%+5% Roasts57%63%65%71%+6% Ribs41%42%37%45%+7% Tenderloins73%74%83%76%-7% Steak42%26%16%23%+7% Ground Pork25%24%20%34%+14% Subprimal49%48%44%51%+7% Ingredient30%28%25%34%+9% Offal7%3%11%17%+6% Total40%43%42%47%+5% NMCS Research All Rights Reserved

Supermarkets Displayed Supplier Branded Pork Less Frequently in 2010 Store Branding Was a Larger Factor Percent of Packages NMCS Research All Rights Reserved

Supplier Brand Declined in the Pork Chop and Rib Categories Percent of Packages NMCS Research All Rights Reserved

Supplier and Store Brand of Pork Roasts and Tenderloins Changed Less Percent of Packages NMCS Research All Rights Reserved

Store Brand Increased in the Pork Steak Category Ground Pork Category Had an Increase in Supplier Brand Percent of Packages NMCS Research All Rights Reserved

Enhanced Pork Package Counts Declined Percent of Packages Enhanced was defined as Moisture Added Product with or without flavor NMCS Research All Rights Reserved

Enhanced Pork Chop Package Counts Declined Enhanced Pork Roasts Were Stable Percent of Packages Enhanced was defined as Moisture Added Product with or without flavor NMCS Research All Rights Reserved

Enhanced Pork Tenderloin and Rib Package Counts Declined Percent of Packages Enhanced was defined as Moisture Added Product with or without flavor NMCS Research All Rights Reserved

Enhanced Pork Steaks and Ground Pork Percent of Packages Enhanced was defined as Moisture Added Product with or without flavor NMCS Research All Rights Reserved

“Minimally Processed” Was the Leading Production Claim One or More of These Claims Were Made on 14% of Pork Packages NMCS Research All Rights Reserved New Question in 2010.

Pork Exact Weight Packaging Remained Stable from 2007 Study Percent of Packages 2004 is the baseline data set NMCS Research All Rights Reserved

Exact Weight Roast and Ground Pork Increased Share Chops, Tenderloins and Ribs Maintained Share Percent of Packages 2004 is the baseline data set NMCS Research All Rights Reserved

27 Case Ready Pork Increased Slightly Percent of Packages Case Ready was defined as any product with an establishment number.

2010 NMCS Research All Rights Reserved 28 Case Ready Increased in Pork Chops and Roasts Percent of Packages Case Ready was defined as any product with an establishment number.

2010 NMCS Research All Rights Reserved 29 Case Ready Increased in Ribs, Steak, Ground Pork and Ingredient Percent of Packages Case Ready was defined as any product with an establishment number.