Cargill Meat Solutions Brings Innovation and Higher Margin Potential to the Meat Case with Newly Branded Beef "Value Cuts"

11 Jul 2008

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11/07/08 With its research suggesting that up to 30 percent of consumers may be reluctantly cutting back on beef usage due to economic pressures, Cargill Meat Solutions has introduced a line of newly branded, value-priced beef cuts, providing consumers an affordable way to continue enjoying beef, while offering higher margin opportunities for retailers.

The lesser-known cuts of beef have been repositioned, with their standard, unappetizing cut names replaced with fanciful names derived from the Romance languages as well as the qualities of the individual cuts, such as the Marbello steak, which gets its name from the amount of marbling that it contains. The new trademarked brand names, along with their traditional cut names, are:

* Cabrosa Steak (ball tip)
* Cordelico Sirloin (flap meat)
* Delombre Petite Tender (teres major)
* Maranada Steak (flank steak)
* Marbello Steak (inside skirt)
* Rigosa Roast (eye of round)
* Savran Steak or Roast (top round)
* Solenta Sirloin (tri-tip)

Cargill Meat Solutions is believed to be the first beef producer to brand these particular cuts and views the potential opportunity for the program as significant.

“Cargill sees this value cuts program as a long-term one that can be leveraged in each of the six traditional beef selling seasons,” said Elizabeth Desbien, Cargill brand manager. “And by promoting a less expensive option, retailers can provide options for the value-conscious beef consumer. Retailers will still offer the better-known, middle meat cuts, and there will always be consumers who will purchase those. But these newly positioned, mid-priced products allow retailers to provide another option to their customers who love beef, but who may be more price-sensitive.”

Desbien explained that by promoting products that have not been aggressively marketed before, retailers have the opportunity to boost incremental sales. Retailer profit can also climb because of built-in pricing leeway on the branded cuts as well as a lack of discounting pressure. In the initial phase of market rollout, more than 2,000 grocery stores are offering a combination of the branded value cuts in their meat cases.

“Reaction to the products, names and merchandising has been extremely positive to date,” Desbien said. For example, one retailer initially rolled out the branded Cordelico Sirloin to several of its divisions, she explained. The product has seen so much success that the retailer recently rolled it out to all of its remaining divisions.

A positioning and merchandising campaign, called "Beef Up Your Menu,” supports the products with regular promotions based on key retail selling seasons, including summer grilling. Cargill is supplying participating retailers with a turnkey program with a variety of marketing and point-of purchase merchandising materials to help draw consumer attention and trial and build sales. The focus of consumer communication efforts is entirely centered at the meat case, with colorful on-pack branding as well as menu cards, which provide a recipe for the beef cut and complementary side items, complete with a shopping list the consumer can use while in the store.

In addition to creating inspiration with and awareness of the beef value cuts, Cargill determined that the real key to promoting these items is convincing consumers that the beef can cook up well and anchor complete, easy-to-prepare meals. The menu cards and shopping lists provide all the information consumers need to prepare a wonderful meal for their family and friends to enjoy.

“Cargill is trying to overcome any consumer reticence to buying and trying unfamiliar beef cuts,” Desbien said. “We think this program does that. It also allows more consumers to continue to make beef the obvious center-of-the-plate choice.”