Consumers love steak… Steak remains hugely popular and our latest independent consumer research shows that among regular buyers, more than half of them – 56% – buy premium quality steak (Chart 1). The research, conducted exclusively for AHDB Beef & Lamb in February and March 2016 among those consumers who buy pre-packaged beef steak at least every two months, indicates that 69% of respondents buy steak at least every two weeks, with almost half of all consumers including steak in their main household shop and enjoying steak as part of a family meal (Chart 2). The most popular steak cuts are sirloin – bought by 74% of consumers – and rump – 69% (Chart 3).

FACT: Consumers agree steak is easy to prepare

(91%); it can be a healthy choice (81%) and that it is versatile (77%).

Chart 2 How often do you typically buy fresh beef steak?

Chart 1 What types of steak do you buy?

72%

Standard range

56%

Premium range Pre-seasoned

Once a fortnight

26%

Value range

21%

Organic

18%

Chart 3 Which steak cuts do you buy?

74% 69%

Rump

59%

Frying steak

51%

Fillet

40%

Ribeye

Bavette

31% 38%

Once a month

23%

Once every two months

7%

31%

Sirloin

Flat Iron

Once a week or more often

INSIGHT

Steak is especially popular with younger consumers (aged 18 to 24) and those with children – both groups being most likely to buy steak at least once a week

8% 6%

… BUT CONSISTENCY IS THE KEY FOR GROWTH Mike Whittemore, Head of Trade and Product Development, AHDB Beef & Lamb There is much to be positive about in the beef steaks sector. As our research among regular steak purchasers shows: • They’re POPULAR – seven out of 10 of them buy steak at least fortnightly • They’re CONVENIENT – almost all of them believe steaks are easy to prepare • They’re VERSATILE – 77% say so • They’re HEALTHY – eight out of 10 say they can be a healthy choice. I believe, however, that we’re missing an opportunity to grow

the sector even further. Our latest research shows that three out of four regular steak consumers have experienced a tough steak and that of these, 22% were put off buying again for some time – a third of them for more than three months. That’s a lot of people we’re hacking off. Not just in terms of a poor eating experience but in effectively dissuading them from repeat purchase – some for weeks, many for months – and missing out on a significant potential sales uplift. The reason is inconsistency of product. It’s an issue we at AHDB Beef & Lamb have been

working hard to resolve. Ensuring consistency right across the steak range is a critical element of the new cut development activity we undertake in partnership with processors and retailers. Using modern butchery techniques, establishing the optimum specification for each product and then ensuring that specification is delivered every time are the key steps to getting it right. Ensuring product consistency is a clear message coming out of our latest consumer research into the steak sector. Consumers were also clear about the kind of on-pack information that motivated them

to buy – origin, maturation periods and quality assurance. The main findings are outlined in this short report. My colleagues in the AHDB Beef & Lamb trade development team would be happy to discuss the research in more detail and the retailerspecific aspects of the findings in confidence with individual retailers and their processor/suppliers. My team and I look forward to working with you to add value and grow the steak sector of the beef market even further. An outline of our work in the beef steak category can be seen on the back page of this report.

A positive take on the p APPEARANCE IS CRITICAL

When respondents were asked, unprompted, what were the most important factors in deciding to buy steak, the top two answers were price and quality. When prompted, however, the appearance of the meat is overwhelmingly the main purchasing influence with half of all respondents rating this as extremely important (Chart 6). Among premium quality buyers, the maturation time and process, local production and cattle breed took on significantly more importance (Chart 7). Chart 6 Important factors when purchasing steak

Chart 7 Maturation time more important for those buying premium steak

5

5

6

7

% rating on a 7 point scale where 7 is extremely important

Appearance of the meat

13%

Colour of the meat

16%

33%

Price

16%

31%

Visibility of fat

19%

Use-by date

17%

29%

25% 23%

Quality Assured Mark

22%

23%

Fat content

20%

14%

30%

37%

Colour of the meat

17%

28%

28%

Cut Visibility of fat

20%

49% 43% 32%

27%

24%

38%

Fat content

17%

20%

Price

15%

28%

30%

25%

Quality Assured Mark

21%

21%

30%

28%

Use-by date

22%

21%

26%

21%

Weight

21%

22%

Special offers/discounts

23%

24%

Pack size

22%

24%

16%

25%

21%

13%

18%

Appearance of the meat

31%

30%

15%

% rating on a 7 point scale where 7 is extremely important

50%

31%

20%

Country of origin

7

32%

Cut

Weight

6

21%

29%

22%

Special offers/discounts

19%

26%

Country of origin

19%

21%

26%

Pack size

37%

17% 21% 25%

23% 14%

Locally/regionally produced

21%

14% 14%

Maturation time

23%

Maturation time

20%

17% 10%

Locally/regionally produced

20%

20%

19%

Maturation process

20%

15% 11%

Maturation process

21%

19%

18%

Breed

22%

20% 11%

Breed Premium labelling design Packaging

15% 14%

4%

16% 10%

5%

13% 7% 7%

50%

Premium labelling design Packaging

20%

22%

17%

18% 12%

19% 12% 8%

Agree important when buying (score 5, 6 or 7)

Total sample

Buying premium

Maturation time

47%

62%

Locally/regionally produced

49%

59%

Maturation process

46%

58%

Breed

33%

53%

beef steak sector INCONSISTENCY = LOST SALES More than three-quarters of consumers surveyed have experienced a tough steak when cooking at home (Chart 4a). While only 10% of them complained or returned INSIGHT the steak, 22% indicated the Around one-third of consumers reported experience had put them variability in quality between off buying again – one-third purchases. Premium steak buyers are more likely to of them for more than note variation according three months (Chart 4b). to maturation time Chart 4a When cooking at home, have you ever had a tough steak?

Yes No Don’t know

19% 3%

10% of those who had had a tough steak complained or returned it

77%

Chart 4b How long did it take before you bought steak again?

12%

22% of those who had had a tough steak were put off buying again

Under 2 weeks

11%

2-4 weeks

27% 22%

PREMIUM LOYALISTS More than half of those respondents who buy premium steak do so at least once every two weeks (Chart 5).

FACT: 39% of premium quality

steak buyers do not buy from any other quality tier.

Chart 5 How often do you buy premium steak?

1-2 months 3-4 months

30%

INSIGHT For those consumers who buy across the quality ranges, special offers were an important incentive to trade up to premium; but general appearance was also rated highly, indicating that the steak had to look good as well as be at the right price to tempt trading up

37%

Over 4 months

24% 21%

9% 5% Once a week or more often

Once a fortnight

Once a month

Once every two months

Once every three months

3%

2%

Once Less than every four every four months months

premium quality beef st MATURATION

When asked specifically about the types of production process they associate with premium steak, half of all respondents selected 28-day maturation (Chart 8). INSIGHT Those consumers buying Displaying maturation periods clearly on-pack premium quality steaks provides a strong incentive for and those buying more consumers to buy. 28-day maturation periods resonate most strongly with frequently, are most consumers. For most consumers, longer periods are perceived to add cost likely to associate without necessarily adding quality or maturation times and value; premium steak consumers, however, can be attracted processes with premium to longer maturation steak. periods

PACKAGE TO SHOW Product visibility is the most important factor for consumers when it comes INSIGHT to packaging (Chart 9). The pack Consumers have noticed the increasing use should also carry information of skin packaging for steak, on origin and an indication of are now familiar with it and most liked the method, saying it maturation period – both of allowed for more information to be carried on pack while which are especially important also clearly showing for those consumers buying the product premium quality or organic steak.

Chart 8 What do you associate with premium steak? 51%

28 day maturation

48% 28%

21 day maturation

Dry aged

23% 27% 24%

35 day maturation

19% 24% 27% 13% 15% 14%

50+ day maturation

14 day maturation

Wet aged

Respondents buying premium steak Buying steak once a week or more often

13% 16% 15%

Don’t know

23%

Chart 9 Thinking about the packaging of beef steaks, which of these are important to you?

The whole product is visible

73%

It clearly tells me the origin of the product

KEY INSIGHT

In focus group research, consumers ranked information on origin and quality assurance as key elements of on-pack information. This was thought to be especially important when buying a product for the first time – indicating its importance in persuading consumers to trade up to premium

34% 36%

All respondents

8% 11% 14% 5% 6%

59%

47%

The packaging is minimal

33%

It tells me about the production of the product

32%

Nutritional information

30%

It tells me how to cook the product The packaging makes the product look appealing The packaging is attractively designed

25% 20% 12%

52% for premium and 62% of organic steak consumers 38% for premium and 45% of organic steak consumers

teak sector BRITISH AND QUALITY ASSURED When asked about premium quality steak, Chart 10 How strongly do you associate the following with premium beef steak? consumers’ strongest associations were that the meat was British (76% either associated 41% 4% 35% 19% British Beef or strongly associated premium steak with British beef) and that it carried 41% 3% 2% 33% 19% Quality Assured an indication of quality INSIGHT 35% 32% 22% 3% 2% 6% 28 days matured When asked to reflect assurance (74%). Maturation on the link between quality time was also associated 36% assurance and premium 4% 4% 4% 34% 18% Outdoor/grass fed products, consumers rated high with premium quality, standards of animal welfare 36% 21% 4% 3% 35% Lean with 67% linking premium most important by some margin. Organic steak with 28 days was also highly 21 days matured 26% 28% 33% 3% 4% 6% matured and 59% with 21 regarded days matured (Chart 10). 5 - strongly associate 4 3 2 1 - Do not associate Unfamilair with the term

AHDB Beef & Lamb can offer expert advice on the specification, selection and presentation of the premium steak range

Make sure the display is attractive Appearance is critical to the purchase decision – and a tempting display gives local butchers an edge Consumers who buy steak across the quality tiers can be persuaded to trade up to premium steak through special offers and promotions. Above all, though, the product has to look good as appearance is critical to the purchase decision. Incidentally, consumers generally don’t understand the term ‘tier’, thinking it to

mean different cuts and prices and that taste might vary with tier. It’s an industry term and best avoided in consumer communication. Many consumers, premium quality steak buyers included, will choose to go to their local butcher where they believe they will get a wider selection of cuts. This can be a

competitive advantage for butchers who are able to provide personal advice and information. Equally, it presents an opportunity for supermarkets to make more of their serveover counter, concentrating on ensuring a highly attractive display including a key range of premium quality steaks.

MAXIMISE CATEGORY POTENTIAL WITH STEAK BAR CONCEPT The Steak Bar range was developed by AHDB Beef & Lamb to provide retailers with a great selection of contemporary and affordable cuts to appeal to today’s consumers. The range includes a number of quality, added value alternative steaks, such as the Flat Iron, Bistro Rump and Centre Cut, as well as traditional steak cuts such as the Rib-Eye which has been highly trimmed. The concept has been well received throughout the beef and lamb supply chain. Retailers,

foodservice operators and processors acknowledge the objectives that lay behind the concept: how effective specifications allied to modern butchery techniques can not only deliver better product quality and greater consistency but also has the potential to add value to the overall sector and improve profit. Above all, it delivers a better eating experience for consumers – as those businesses that have embraced the Steak Bar concept can testify.

ASSURANCE GUARANTEED The Quality Standard Mark Scheme for beef and lamb provides one of the highest levels of independently inspected assurance for meat in the United Kingdom. The standards contain combined guarantees of food safety, animal welfare, care for the environment and enhanced eating quality. The scheme provides multiple retailers and their customers with beef and lamb which is fully assured and independently

inspected from farm to the point of purchase, providing provenance and integrity throughout the supply chain, thereby improving customer confidence and encouraging a purchasing preference.

For further information, visit www.qsmbeefandlamb.co.uk or contact Mike Whittemore by emailing [email protected] © Agriculture and Horticulture Development Board 2016. All rights reserved. AHDB Beef and Lamb is a division of the Agriculture and Horticulture Development Board (AHDB).