Beef products have consistently been a revenue source for grocers; domestic consumption was approximately 57 pounds per person in 2018,¹ and it is expected to grow in the coming year. But is there untapped potential for increased consumer interest, and if so, how can grocers and beef producers capitalize on it?
Consumers would buy more meat if they had more information about different meat products, according to the 2018 Power of Meat industry analysis.² Eighty-three percent of respondents tended to purchase similar cuts of meat, but 42% said they’d try new products and recipes if they were better informed. And consumers expect this information to be accessible, said Alisa Harrison, senior vice president of global marketing and research for the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff.
“I think consumers’ expectations for on-demand information is higher than it’s ever been,” Harrison said. “If you don’t have information readily available in a way consumers want, you’re going to lose them.”
The good news is that consumers can learn more about beef with the help of artificial intelligence. With Chuck Knows Beef, a creation from Beef. It’s What’s For Dinner., managed by the NCBA, consumers can ask about beef cuts, recipes and cooking instructions. With access to information and a lighthearted communication style, a tool like this is an ideal way to inspire consumers to branch out, whether they’re deciding what to purchase at the service counter or planning a meal in their kitchen.
“I think that people will tend to buy what they know. There are many great cuts that are affordable and taste great, but [consumers] may not know about them or how to cook them,” Harrison said. “More knowledge leads to more variety, and more overall dollars in the basket and beef sales for retailers.”
Chuck Knows Beef is available on mobile devices at ChuckKnowsBeef.com, but also responds to voice-based searches on connected home devices through Google Home and Amazon Alexa, which is incredibly important, Harrison said. Many studies indicate that by 2020, more than half of consumer searches will be voice-based, and working with this predominant preference will lead to more comprehensive consumer knowledge of beef products, which can benefit retailers. Looking up recipes can also inspire shoppers to use other ingredients and spices, leading to a positive experience throughout the process, from the initial purchase to the dinner table.
Some consumers may prefer to use a tool like Chuck Knows Beef in the store as opposed to having an in-person interaction. They may not want to wait in line to learn about product options, or they may not want to appear as if they do not know much about cooking beef. Additionally, many retailers do not have a full-time butcher available to answer consumer questions. This technology can help fill the void when an in-person expert is unavailable.
If consumers increase their knowledge about different beef products, it could be advantageous for grocers in ways that extend beyond the service counter. A study conducted on behalf of the Beef Checkoff found that a typical cart which included beef had more than twice the value of an average cart (at $85.70 and $41.33, respectively). Beef was found to bring in more revenue than any other retail item in a store, and carts including beef produced 44% more sales across the entire store than carts with chicken.³ The data speaks to the significant benefits retailers may find when consumers have easier access to beef information; different cuts may suggest different condiments, for example, leading to a rippling effect of revenue across the entire store.
“According to the study and products tested, carts with beef have a greater value than any other meat product or meat substitute,” Harrison said. Therefore, retailers who expand the amount of beef they sell can expect more sales across the entire store. “That’s good for beef producers, and it’s certainly good for grocers.”
Above all, access to information instills consumers with confidence about their purchases and cooking skills, and this can inspire confidence in retailers when they market beef products. Retailers can promote newer or different cuts because they know consumers can easily and quickly learn about those cuts.
“This technology not only gives the consumer confidence, but it also gives the retailer confidence to try new promotions with newer cuts of beef because Chuck Knows Beef can help consumers prepare them properly,” Harrison said.
¹ Maples, Josh. “Beef Cattle Market: 2018 in Review and a Look Ahead.” Drovers, 3 Jan. 2019, www.drovers.com/article/beef-cattle-market-2018-review-and-look-ahead.
² The Power of Meat: An In-Depth Look at Meat and Poultry Through the Shoppers’ Eyes 2018, Food Marketing Institute, Foundation for Meat & Poultry Research & Education
³ IRI Panel Data, Market Basket Study, February 2019