KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19

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KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Tracking the Dramatic Pivot of
U.S. Consumer and Shopper Behavior

KEY LEARNINGS
IN MEAT IN THE
ERA OF COVID-19
May 20, 2020

Chris DuBois, Senior Vice President, Protein
Jonna Parker, Principal, Fresh Center of Excellence
Pete Swanson, Senior Consultant, Fresh Center of Excellence
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Today’s Agenda
Exploring how evolving market and consumer outlooks will impact current and likely future behavior

Changing Retail        Evolving           Impact on         Deep Dive into   The Road Ahead
  Experience           Behavior          Meat Buying           Claims

 Sources:
 • IRI Point of Sale Data, including Daily Chain POS Data
 • IRI E-Market Insights®
 • Shopper Basket Analysis from IRI Consumer Network™ Panel and Weekly Consumer Panel Solutions
 • IRI Weekly Pulse Surveys
 • IRI Multi Outlet, Total Store Fresh Model
 • 210 Analytics Consumer Surveys and Marketplace Pictures

Visit IRI’s COVID-19 Insights Portal and COVID-19 Dashboard for more reports and updates.

                                                                                © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   2
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Insights and Strategic
Guidance for Better Decisions
IRI’s Online Resources Include Real-Time
Updates and Weekly Reports Which Track
the Impact of the Virus on CPG and Retail
The IRI COVID-19 Info Portal
Includes COVID-19 impact analyses and reports,
webinar replays, podcasts and the latest thought
leadership on supply chain, consumer behavior,
channel shifts for the U.S. and international
markets
The IRI COVID-19 Data Dashboard and
CPG Economic Indicators
Tracks the daily impact of COVID-19 via
the IRI CPG Demand Index™, IRI CPG
Supply Index™, IRI CPG Inflation
Tracker™ and data on top-selling and out-
of-stock categories and consumer
sentiment on social media

                                                   © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   3
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   4
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Measures Tightening Further, Creating Changed Trip and Traffic Patterns

                                                                                                                Source: 210 Analytics

                                                      © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.       5
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Consumers Anticipate That COVID-19 Shopping Behaviors Will Become the
New Normal
Important Store Factors to Return to Normal Shopping – Very Important: Store Must Have This

“Thinking ahead to your shopping plans in the next month, how important are the below in
determining your level of comfort in returning to normal store shopping habits?”

                                                                                                                                                Most critical
                                                                                                                      41%                     49%                      51%                       56%
                                                     Nice to have
                                                                                                                  Limiting the            Customers                Store staff           Hand sanitizer
                                    23%              23%            25%                  34%                       number of            being required           being required          & wipes being
    Least critical                                                                                                shoppers in            to wear face             to wear face             available
                                   Require        Contact-less   Self-checkout       Presence of                     store                 masks in                  masks                upon store
                                customers to       credit card    option (scan        plexiglass                                             store                                           entry
    11%             14%
                                bag their own      option for    items myself)       dividers for
  Mobile pay      Customer       groceries if       payment                            cashiers
  option (with   temperature      using a re-
 smartphone)     checks upon     usable bag
                  store entry   (so staff don't
                                have to touch
                                    them)

                                                                         Source: IRI Survey fielded 5/1-5/3 among National Consumer Panel representing Total US Primary Grocery Shoppers
                                                                                                                        © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.         6
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
After an Initial Shift to More Stockpile-Oriented Items, Fresh Foods Are a Considerable
    Buyer and Transaction Driver in the Last Few Weeks – A Trend Expected to Continue
    Total U.S. All Outlets Fresh Foods Consumer Purchasing Dynamics
                                                  Trips per Buyer
                                                  % chg. vs. YA

              Buyers
                                                  29%    26%                                                   Less trips to any store
              % Chg. vs. YA                                         2%
                                                                                                               in a week…
                                                                                -5%                 0%
                                                                          -4%
                                                                                      -16%   -4%

                                                  3.5     3.5       2.8   2.7   2.6   2.5    2.5   2.6

                                                                           Actuals

  6%   4%                                   5%                                                             Avg Basket Size
                                       4%
                   0%                                                                                      % chg. vs. YA
                                                                                                                                               28%        32%          35% 33%                31%
                                                        and consistently                                      14%       16%         17%

             -2%
                         -1%
                                 -1%
                                                        bigger total store
                                                        baskets on each trip                                03-15-20 03-22-20 03-29-20 04-05-20 04-12-20 04-19-20 04-26-20 05-03-20

110.1 107.2 102.0 104.5 103.6 104.0 105.9 106.8                                                              $60.2      $60.5      $61.3      $68.7 $70.0           $71.2         $69.3       $69.8
                                                                                                                                               Actuals
                   Actuals (M)

                                                                                                                  Source: IRI Panel 8 weeks ending May 3, 2020. All Outlets.
                                                                                                         © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.           7
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
The World is Reopening: COVID-19 Openings as of May 13, 2020
                              Non-Essential   Approximate
                 Restricted     Business        Weeks in
                 Assembly        Closure       Quarantine         Notes on Re-Openings or Lifted Restrictions

         Italy     Mar 9         Mar 12           10        Bars and restaurants will reopen June 1

                                                            Hair salons and shops begin to open while bars,
       France     Mar 13         Mar 14           9
                                                            restaurants and theatres remain closed

     Germany      Mar 22         Mar 16           8         By mid-June, Germany will ease border restrictions

  Netherlands     Mar 15         Mar 23           9         Primary and middle schools begin to reopen

                                                            On May 14, New Zealand moves to level allowing for
  New Zealand     Mar 19         Mar 23           8
                                                            restaurants and retail stores to open
                                                            Prime Minister Boris Johnson announced a plan for when
          UK      Mar 23         Mar 23           8
                                                            schools and shops will open soon
                                                            Select states have begun to ease restrictions on
         U.S.     Mar 16         by state         9
                                                            businesses and allow for openings with capacity restraints
                                                            Partial reopening on May 11 with stores and restaurants
       Spain     by region      March 14          9
                                                            opening with restrictions
                                                                                                                     Source: Literature Search
                                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   8
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
Re-Opening Measures Have Dominated the U.S. National Conversation in the
Last Week with Varied and Staggered Plans From State-To-State

                                                                                Source: NY Times published on 5/18/20
                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   9
KEY LEARNINGS IN MEAT IN THE ERA OF COVID-19
In April, Many Pandemic Epicenter States Also Saw Extremely High Meat Sales;
As States Re-Open in Varying Ways, Their Meat Sales Will Likely Have Varied Impact

                                                                                                    Latest 4 weeks ending 5/3/20

                                                                                                                         TOTAL MEAT

                              Source: IRI Total US Multi-Outlet, Total Meat Department, data ending 5/3/20, states not shaded are not available as a multi-outlet projection
                                                                                                      © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   10
Consumers Increasingly Believe COVID-19 Will Linger for Months;
Economic Woes Are Predicted to Last More Than a Year
Expected Length of Coronavirus Health and Economic Crises

                                          How Long Respondents Believe the
                                           COVID-19 Health Crisis Will Last*

                                                                           3/13-3/15                5/1-5/3
                                           1 wk. - 3 mos.                       66%                    36%

                                                 4 - 12 mos.                    32%                    37%

                                                                    Concerns About the Duration
                                                                     of an Economic Recession
                                                                        Increased This Week
                                                                53%      believe it will be
                                                               more than                12
                                                                               months before
                                                                  the economy recovers

                      *Note: numbers do not = 100 due to rounding / Source: IRI Consumer Survey fielded among Primary Grocery Shoppers in the National Consumer Panel, March 13 – April 19, 2020.
                                                                                                                              © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   11
Consumers are Cooking More from Scratch vs. Pre-COVID-19; Most
                          Households Will Continue to Cook at Home as Stay-At-Home Orders Ease

                                                            c
     35%
                                                                                 50% or Less

                                                                                 51-80%
                                     40%
Creating more meals
   from scratch                                                                  81-100%
                                                            73%

    53%
Will continue to create
                                     38%

 meals from scratch                                         19%
more than I did before               22%
     coronavirus.*                                           8%

                                  Category
                             Percent of Meals1for      Category
                                                    Percent of Meals2 for
                               All HH Members         All HH Members
                              Prepared at Home       Prepared at Home
                              before COVID-19             Currently

                                                                           *Note: Those who said they are creating meals from scratch at home more due to coronavirus (477)
                                                        Source: IRI Survey fielded 5/1-5/3 among National Consumer Panel representing Total U.S. Primary Grocery Shoppers
                                                                                                        © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   12
Although Shoppers Continued to be Focused on Convenience and Value,
Many are Choosing Stores Based on Social Distancing and Safety Protocols
Store Choice Drivers for Groceries and Household Essentials in Past Month

                Which of the following describes how you’ve been choosing where to shop
                  for groceries and other household essentials during the past month?
                     Can get most things I want to buy in that one store                                                                          53%
                              Most conveniently located near my home                                                                              53%
                                            Lowest prices or best deals                                                  33%
                       Least crowded or limits customers who can enter                                    20%
                           Requires customers and staff to wear masks                                 18%
                                                    Offers self-checkout                              17%
                  Special hours for seniors/those with health conditions                         13%
                              Plexi-glass dividers in front of the cashier                    11%
                                   Online ordering with curbside pickup                      10%
                                Contact-less credit card payment option               4%
                     Store is helping the community (donating food, etc)              4%
                           Mobile-pay option (pay through smartphone)               2%
    Does not apply, only shopped online for home delivery in past month               4%

                                                                     Source: IRI Survey fielded 5/1-5/3 among National Consumer Panel representing Total US Primary Grocery Shoppers
                                                                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   13
For Fresh, Grocery and Club Gained Share from Mass and Specialty;
the Pandemic Favored Limited Trips from Trusted, Local Retailers

                   w/e              w/e                  w/e                   w/e                   w/e                  w/e                   w/e                    w/e                    w/e
                  3/8/20          3/15/20              3/22/20               3/29/20                4/5/20              4/12/20               4/19/20                4/26/20                 5/3/20
      Specialty
                  8.9%             7.0%                  6.1%                 6.0%                  5.8%                  5.9%                  6.1%                   6.4%                   6.3%

          Club
                  10.2%           10.0%                  9.6%                10.5%                 10.4%                  9.9%                 11.3%                 10.9%                  11.6%

    Supercenter
                  17.3%           15.9%                18.1%                 16.9%                 16.6%                16.1%                  16.6%                 16.2%                  15.9%

       Grocery
                  60.2%           64.2%                62.6%                 63.5%                 63.8%                64.3%                  62.9%                 62.7%                  62.4%

                      Source: IRI Household Panel including fixed and random-weight, Data Ending 5/3/2020 – color coding vs prior week / Note: Supercenter = MassX And SupercenterX + Walmart
                                                                                                                           © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   14
Nonessential Workers Will Return to Working Outside the Home but Work-From-
Home Days Will Increase; There will be a Lag Before Kids Return to Daycare
Changes to Work Habits: When there are not any government stay-at-home mandates that impact you,
when will you do each of the following?

                                                                                                    c
                   9%                                                                 Will wait a month or more after the restrictions are lifted before doing this
                                                                                      Will wait a few extra weeks after the restrictions are lifted before doing this
                  19%                                        38%                      Go back to my usual way of doing this as soon as possible after restrictions are lifted
                                                                                      Have been doing this about the same amount as usual during the past month

                  39%
                                                             25%
                                                                                      33% of those employed plan to
                                                                                      work from home 3+ days per
                                                                                      week after restrictions are lifted,
                                                             24%
                                                                                      vs. 21% before COVID-19
                  34%
                                                             14%

 Go to work at location outside home          My young child/children will go to
                                              daycare or I will have a childcare
                                                provider come to my home
Base= the 37% of Total Respondents Who       Base: the 7% of Total Respondents Who
 Plan to Work at least 1 Day at a Location    Have a Child Under Age 6 Typically in
    other than Home and Expect to be            Daycare or with Home Childcare
  Employed after Restrictions are Lifted                 Provider n=85

                                                                                                 Source: IRI Survey fielded 5/1-5/3 among National Consumer Panel representing Total US Primary Grocery Shoppers
                                                                                                                                              © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   15
Retailer product limits dampen demand
Q. For items that were in-stock to buy, did you reduce the number of items you bought on any recent
   shopping occasion due to a retailer limiting the amount per shopper for certain items?

   % who responded: Yes, there was a purchase limit on certain items so I bought fewer than I wanted:
                                                                                                       63%
                                                                           60%
                                               54%
                        46%                                                                                                                                         c
                        Wave 2

                                               Wave 3

                                                                           Wave 4

                                                                                                       Wave 5
       N/A
    Wave 1

                                  Source: IRI Survey 2020, among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers. March 13-15 March 20-22 March 27-20 April 3-5 April 10-12;
                                                                                                                                         © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   16
E-Commerce Gains Will Stick in a Post-
       COVID-19 World; Consumers Increasingly
              Buy Into Click and Collect

                                  13%                                                             14%
                            buying more                                                      using curbside
                          groceries online                                                    pick-up more
                         for home delivery                                                        often

                                        After stay-at-home restrictions end

                                        40%                       using curbside pickup
                                                                  more often

                                        50%                       plan to get more of their
                                                                  groceries this way

Source: IRI Consumer Survey fielded among Primary Grocery Shoppers in the National Consumer Panel, March 13 – April 19, 2020.
                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   17
U.S. E-Commerce Sales Continued to Accelerate                                                                                                                                                           United
in the Second Four Weeks Since COVID-19                                                                                                                                                                 States

Dollar % Change vs. YA, Total E-Commerce                                                              In Store                Online - Edible Only                              # COVID-19 Cases
                                                                                                      Online                  Online - Nonedible Only

       90%                                                                                                                                                                               770k
                                                                                                                                                                                             85%
       80%
                                                                                                                                                                                                73%
       70%                                                                                                                        65%
                                                                                                                                                                                                68%

       60%                                                                                                                        56%

       50%
                                                                                                                                  52%
                            37%
       40%                                                                       30%
                      33%                                                        26%                                              39%
       30%
                            32%
                                                                                 24%
       20%                                                                                                                                                                               15%

       10%                                                                  3%

         0%            0% 0k                                                0k                                                    34k

                 4 Weeks Ending 01-26-20                     4 Weeks Ending 02-23-20                                4 Weeks Ending 03-22-20                                4 Weeks Ending 04-19-20
 E-Comm %
                            16.2%                                           15.7%                                                  14.7%                                                 18.7%
share of total

                                           Source: IRI eMarket Insights Model, based on 204 releasable eMarket Insights categories, In Store from Total MULO / Case count from Worldometer as of May 1, 2020
                                                                                                                                         © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   18
For Meat, E-Commerce Growth has Been Considerable for Brick-and-Mortar Grocers’
Sites While Online Multicategory and Online Specialty Saw Holiday-Related Spikes
Dollar % Change vs. YA, Total Meat, E-commerce Top Channels

                                                          Source: IRI eMarket Insights data, period ending 4/19/20 for tracked Meat categories
                                                                        © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   19
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   20
All Generations Are Impacted by the Health and Economic Toll of COVID-19
But the Most Lasting Shifts Will Occur Among Millennials and Older Gen Z

                                                                         BABY                                              SILENT
         GEN Z             MILLENNIALS              GEN X              BOOMERS                                         GENERATION
      1996 – 2010          1977 – 1995           1965 – 1976          1946 – 1964                                      1945 and prior
      (ages 10-24)         (ages 25-43)          (ages 44-55)         (ages 56-74)                                       (ages 75+)

     Widespread             Columbine           Iranian Hostage          Vietnam                                    Great Depression
   Terrorism: ISIS,        Shootings and              Crisis
   Boston Marathon         Special-Event                              Civil Rights                                            WWII
                             Shootings        Challenger Disaster     Movement
      Bombings                                                                                                           Korean War
                               9/11               Collapse of         JFK / MLK
   Mass Shootings:                                                                                                     The Cold War
                                                  Berlin Wall       Assassinations
     Sandy Hook,
                         Hurricane Katrina
   Parkland, Orlando                            AIDS Epidemic
                        The Great Recession
  The Great Recession                         The Great Recession

                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   21
Millennials Are Among the Hardest Hit By the
Health and Financial Fallout of COVID-19
THEIR JOBS ARE AT RISK                 THEY’RE NOT TAKING                                    THEY’RE ALSO
                                          THIS LIGHTLY                                         PARENTS
45% of 18-29 year-olds and
31% of 31-38 year-olds have                55% are extremely                       Two-thirds of Millennials in
experienced work reductions                 concerned about                       peak child bearing years (30-
   due to the coronavirus                    the coronavirus                       38 year-olds) have children

                                                                                            50%
                45%                                                                                          43%
                                                                           35%
                                31%
       25%

 Working Less / Furloughed / Lost Job                     HH Income at Risk Because of Coronavirus
       Because of Coronavirus
                 Total          Younger Millennials                       Older Millennials
                                  ages 18-29                              ages 30-38

                   Source: IRI Survey fielded 5/1-5/3 among National Consumer Panel representing Total US Primary Grocery Shoppers / 1 Centers for Disease Control and Prevention / 2 SOURCE: www.census.gov
                                                                                                                                           © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   22
Already Financially Vulnerable,
                        Millennials Expect the Economic Crisis
                        to Last Longer Than the Health Crisis
    ~40%
 of Millennials have
    had their work          Expected Duration                                          Expected Duration
  hours reduced or           of Health Crisis                                          of Economic Crisis
 lost their jobs as a
                                     34%
result of the COVID-    42%                           36%
   19 crisis to date                                                             73%                74%              67%
                                     21%              23%
                        20%

  $497.6B               26%
                                     29%              25%
                                                                                 13%                10%
                                                                                                                     13%

  student loan debt     10%          13%              13%                       10%
                                                                                                     8%       15%
                                                                                                     8%        5%
   among 15.1MM                                                                  3%
borrowers aged 25-341   Total      Younger      Older                           Total           Younger      Older
                                  Millennials Millennials                                      Millennials Millennials

                                7+ Months          4-6 Months                2-3 Months                1 Month or Less

                                            © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   23
Millennial Households Saw the Biggest
Increase in Meat-Department Buying
Highest Meat Dept. Dollars Per Buyer
Growth and Their Top Growth Proteins / Cuts

  Demographics with          Highest Growth
   +50% Spending             Proteins / Cuts
     Under 35, Single,       Beef Steak, Chicken                                      c
      No Kids, City          Thighs, Fresh Pork
    Under 35, w/ Kids,      Chicken Wings, Beef
  Mid to Low Income, City    Roast, Sausage,
    Under 35, w/ Kids,           Beef Steak,
    Upper Income, City       Chicken Legs, Ham
   Ages 45-64 with Kids,       Chicken Wings,
    Mid to Low Income       Cubed Beef, Pork Ribs

                                          Source: IRI Panel Data including both fixed and random-weight, Total US All Outlets, 4 weeks ending 4-19-20; Photo credit: 210 Analytics
                                                                                                             © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   24
Moving Forward – Address the Varying
Needs of the Millennial Generation
Build Confidence
Use technology and positive reinforcement to create more personalized
connections to help Millennials through what they don’t know or what they
may want to try, be it budget stretching or meal prep.
Boost Safety and Health
Communicate commitments to safety, whether in-store or on-pack.
Showcase strategies that support wellness goals.
Support the You-Only-Live-Once Connection
Demonstrate how your products or shopping experiences move life ‘beyond the
ordinary’ and into something special. Use social media and/or contests to celebrate.
Create Value Through Ease
From intuitive online grocery shopping and apps, to quick meal
planning ideas, the Millennial value equation is more than low prices.
Reframe Price
Help these shoppers understand cost per meal, or ways to extend/expand product uses.
Bring the Out-of-Home Experience In-Home
Millennials are not in a hurry to resume out-of-home activities; help them
DIY varying aspects of their lives, including meal, cocktail and hair color kits.
Combat Kid Boredom
Two thirds of 30-38 year-olds have kids under 18. Become a trusted source
for fun and learning and facilitate kid involvement in meal planning and prep.

                                                                                       © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   25
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   26
After an Unprecedented Mid-March Peak in Pandemic Buying, Sales Remain
Elevated Week Over Week, With Other Food Outpacing Fresh Growth
Dollar % Chg. vs. YA // Total U.S. MULO // Total Store Including Both Fixed and Random-Weight
52 weeks ending Feb 2020 benchmarks
F&B ex Fresh: +1.7%
                               78.7%     80.6%
Fresh Foods: +1.3%
Nonedibles: +1.4%
                                62.6%

                                          45.9%
                               46.8%

                                        44.3%          25.0%         29.8%               30.1%                                        31.4%
                                                                                                                                                             25.4%
                   20.4%                                                                 18.3%                                          23.1%
                                                                     16.5%
                                                       12.6%                                                                                                        22.3%
        3.9%       9.1%                                                                                        10.5%                   8.8%
                                                                                                                                                              5.4%
         3.1%         4.6%                               3.5%         1.5%                                     1.0%
                                                                                         -1.0%
      0.3%                                                                                           -0.4%
      03-01-20   03-08-20    03-15-20   03-22-20   03-29-20         04-05-20          04-12-20              04-19-20               04-26-20                05-03-20

                                        F&B ex Fresh            Fresh Foods              Non Edibles

                                                                        Source: IRI TSV+ Perimeter Model   Note: Data reflected does not include Costco or Total eComm
                                                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   27
Wider View on Fresh Foods Performance – Meat was Consistently King

 Total Store with Fresh Total Edibles Excl. Fresh                                        Fresh Perimeter                                 Produce Department
 3/1/2020   1.9%                     3/1/2020    2.9%                                3/1/2020   -0.7%                                3/1/2020              0.4%
 3/8/2020       10.6%                3/8/2020    8.9%                                3/8/2020    3.4%                                3/8/2020              3.8%
3/15/2020                     62.5% 3/15/2020                               78.2%   3/15/2020                                 44.9% 3/15/2020                                         34.5%
3/22/2020                  58.2%    3/22/2020                       80.2%           3/22/2020                     45.1%             3/22/2020                            29.7%
3/29/2020   14.3%                   3/29/2020    24.7%                              3/29/2020   11.8%                               3/29/2020              8.1%
 4/5/2020   16.9%                    4/5/2020    29.4%                               4/5/2020   15.8%                                4/5/2020                 14.2%
4/12/2020   16.4%                   4/12/2020    29.5%                              4/12/2020     17.6%                             4/12/2020               16.3%
                                                                                                                                                              17.20
 5/3/2020   18.30%                   5/3/2020    25.40%                              5/3/2020    18.30%                              5/3/2020
                                                                                                                                                               %

  Meat Department                                 Total Bakery                                  Total Seafood                                  Deli Department
 3/1/2020   -1.4%                     3/1/2020                                       3/1/2020   19.2%                               3/1/2020       -1.1%
                                                 -4.2%
 3/8/2020     7.3%                    3/8/2020                                       3/8/2020   2.1%                                3/8/2020                                  1.0%
                                                  2.4%
3/15/2020                        76.7%
                                     3/15/2020                                78.8% 3/15/2020                                76.1% 3/15/2020                                     15.9%
3/22/2020                    91.3% 3/22/2020                                        3/22/2020                          81.3%       3/22/2020
                                                            49.2%
3/29/2020      37.2%                 3/29/2020                                      3/29/2020   21.9%                              3/29/2020
                                                  6.9%
 4/5/2020       41.2%                 4/5/2020                                       4/5/2020   22.2%                               4/5/2020 -20.1%
                                                    9.3%
4/12/2020        42.9%               4/12/2020                                      4/12/2020    26.5%                             4/12/2020 -22.5%
                                                     9.7%
 5/3/2020            52%              5/3/2020                                       5/3/2020       38.50%                          5/3/2020 -27.0%
                                                            25%

                                                                                                                 Source: IRI, Total US, MULO, 1 week % growth versus year ago
                                                                                                             © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.    28
Meat Dollar Sales Continue to Outpace Volume Sales, With Gap Growing;
Price per Volume Is up 13% versus Year Ago in the Last 4 Weeks
Consumer fear of potential product shortages fueled extreme demand, even in light of implied price pressure

Fresh Meat Sales by Week During COVID-19 Crisis

                                         91.8%
                            80.3%        78.0%

                                    71.6%                                                                                                                51.3%
                                                              36.8%                  43.6%                                       49.7%
                                                                   41.4%

                                                      28.5%          34.5%           36.4%                      17.1%                                        37.2%
                                                                                                                                              34.8%
                8.1%
    -0.9%              5.2%                                                                                  2.7%
   -3.9%
       3.1.20      3.8.20      3.15.20      3.22.20       3.29.20       4.5.20               4.12.20               4.19.20                4.26.20                 5.3.20

                                                 Meat Dollar Sales           Meat Volume Sales

                                                                              Source: IRI MULO POS data for periods indicated – Fixed and Random Weight items integrated
                                                                                                       © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   29
As Consumers Buy More Meat for At-Home Occasions, Key
Consumer Purchase Metrics Show Considerable Growth vs. 2019
The Meat Department Has Benefitted From Growth
On Sales, Buyers, Trips and Dollars / Trip
                    Latest 4 Weeks Ending 5/3/2020 vs. YA
            58.4

    36.4

                                 18.3                           19.4     17.9
                                                    13.5
                                            11.4

                        2.6

   Dollar Sales %   Buyers % Change vs. Product Trips per     Dollars per Trip %
   Change vs. YA            YA         Buyer % Change vs.      Change vs. YA
                                              YA

                        All Trip Missions   Pantry Stocking

                                                                             Source: IRI MULO panel, All Outlets Combined – Fixed and Random Weight items integrated
                                                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   30
Continued Short-Term Stress as Meat Wholesale Markets Remain Volatile

                                                          U.S. Wholesale Beef and
                                                          Pork Pricing (USDA)
                                                          • Wholesale beef and pork
                                                            prices doubled in April.
                                                          • Recent pork production is
                                                            down ~24% from 2019
                                                            levels, while beef is 32%
                                                            below 2019 volumes.
                                                          • However, stress is short-
                                                            term and pork should
                                                            rebound to 2019 levels;
                                                            beef will improve but remain
                                                            down 5% from 2019.

                                                                                CLICK HERE FOR MORE!

                                                                                           Source: Bloomberg / USDA
                                                   © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   31
The Supply Chain Stress Can Vary by Day and by Protein

                                                                                                              Source: 210 Analytics

                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.      32
IRI Supply Index Illustrates Meat Supply Chain Stress Impacting
U.S. In-Stock Positions

   % In-Stock

       •   Daily meat in-stock levels are down ~18ppts from pre-COVID-19 levels.
       •   Consumers are encountering sparse inventory levels and out-of-stocks on key items.
       •   A growing number of retailers are enforcing purchase limits on total number of meat packages.
       •   A combination of constrained supply and stock-up buying continues to stress the meat system.
       •   President Trump’s Executive Order on April 29 cites Defense Production Act to keep plants operating.
       •   Starting May 1, processing plants that were closed to address COVID-19 outbreaks are reopening.

                                                                                                                           CLICK HERE FOR MORE

                                                                                                                      Source: IRI CPG Supply Index
                                                                                 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   33
Average Items Per Store Selling is Down – 35 Items vs. a Year Ago for Total Meat

Average Items per Store Selling Chg. vs. YA

                  11

     -9                       -10

                                                                                     -25
                                                                                                                -29
                                                                                                                                                                         -34                       -35
                                                        -32                                                                                  -37

3/8/2020    3/15/2020   3/22/2020           3/29/2020                    4/5/2020                    4/12/2020                   4/19/2020                    4/26/2020                     5/3/2020

                               Source: IRI POS, Total U.S. MULO; Measure Average Items per Store Selling (note: item must sell to be counted- not a measure of impressions on shelf) of 5/3/20
                                                                                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.    34
Average Price Per Pound for Total Meat Has Increased to $0.35 in the Latest
WE 5-3-2020; Prior to the Crisis it was $3.40, But is Now $3.81 in the Latest Week
Average Price per Pound Chg. vs. YA – Total Meat

                                                                                                                             $0.46

                                                                                                                                                         $0.38

                                                                                                                                                                                    $0.35
                                $0.27
                                               $0.22
                  $0.18                                                 $0.18                    $0.18

     $0.10

3/8/2020     3/15/2020    3/22/2020     3/29/2020          4/5/2020                   4/12/2020                  4/19/2020                    4/26/2020                      5/3/2020

                                                    Source: IRI POS, Total U.S. MULO; Measures: Average Price Per Pound (Dollars divided by Volume) Change vs YA as of 5/3/20
                                                                                                           © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.      35
Every Region is Experiencing High Meat Sales Growth, Greatest in South Central
Fresh Meat | % Change Dollars vs. Year Ago | IRI Regions | 52 w/e 2/23/20 and 9 Weeks Ending 5-3-20
                                            WEST           PLAINS
Total U.S. MULO                          2.1% | 42.7%   0.5% | 42.8%
                                                                                     GREAT LAKES
+1.4% 52 Weeks 2/23/20                                                                0.8% | 45.8%
+45.8% 9 Weeks 5/3/20                                                                                                                  NORTH EAST
                                                                                                                                        0.3% | 44.0%

                                                                                                                                  MID SOUTH
                                                                                                                                  1.4% | 47.6%

                       CALIFORNIA
                       1.0% | 46.2%
                                                                                                                      SOUTH EAST
                                                                                                                       2.2% | 46.8%
                                         SOUTH CENTRAL
                                           2.3% | 48.8%

                                                               Source: IRI POS, Total U.S. MULO; Measures: Dollar Sales % Change vs YA as of 5/3/20
                                                                                  © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   36
Meat Has Had an Extremely Strong Presence in Social Media –
3.6 Million Mention Trip as Many as Any Other Food Department
Mentions of Meat and Related Terms Are Up 66% vs. the Pre-COVID-19 Period
25% of Meat Social Media Discussions Are Negative – Up From 20% Before the Pandemic

                                               c
                                          Supply Continues to Dominate the Conversation –
                                               Sample of Posts from May 12-14, 2020

                                                                           Source: IRI Social Pulse powered by Infegy / Jan 1 – 5/14/20
                                                                   © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   37
Meat Sales
                                  Fresh Meat is $45.2B
      in All Outlets
                              Processed Rfg Meat is $14.3B

  +1.4%                       +2.0% $
                              +0.6% lb
                                                                                           -1.1% $
$ Growth 52 w/e 2-23-20                                                                    -3.2% lb
     Pre-Pandemic

   -0.1%                      +1.7% $
                              +1.0% lb
                                                                                        -0.4% $
                                                                                        -0.8% lb

lbs Growth 52 w/e 2-23-20
      Pre-Pandemic
                            Processed Rfg Meat                            +1.5% $ / -0.8% lbs

                                   Source: IRI Market Advantage Total Store View + Perimeter, Total Meat, 52 ending 2/23/2020
                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   38
Meat Sales           Since Pandemic Declared:
  in All Outlets          Fresh Meat is $12.1B

+45%
                       Processed Rfg Meat is $4.0B

                      +48% $                                                         +52% $
$ Growth Latest       +37% lb                                                        +44% lb
 10 w/e 5/10/20

+35%                  +33% $
                      +29% lb
                                                                                  +49% $
                                                                                  +37% lb

lbs Growth Latest
  10 w/e 5/10/20
                    Processed Rfg Meat                              +49% $ / +38% lbs

                         Source: IRI Market Advantage Total Store View + Perimeter, Total Meat, 10 wks ending 5/10/2020
                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   39
Overall the Various Meat Sources Have Trended Similarly Throughout the
 Latest 9 Weeks
 $ % Chg vs. YA Weekly Trend During Pandemic / Total U.S. MULO Data Ending 5-3-2020

                                                                                                                                                                                     59.3%
                                                                                                                                                                                      59.1%
                                                                                                                                                                                      53.1%

                                                                                                                                                                                      32.5%

3/8/2020   3/15/2020   3/22/2020        3/29/2020           4/5/2020                    4/12/2020                   4/19/2020                     4/26/2020                        5/3/2020

                           Total Meat           Beef                  Chicken                       Pork                    Turkey

                                                       Source: IRI POS, Total U.S. MULO; Measures: Dollar Sales % Change vs YA as of 5/3/20; Lamb, Veal and Exotics not show
                                                                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.      40
Dollar Sales for Meat Were Up Only Slightly Prior to the Pandemic, But is a Leading
Area of Store Growth During COVID-19 as All Meat Types See High Sales Change
Dollar Sales Growth / Comparison Pre and During Pandemic / Total U.S. MULO Ending 5-3-20
                                                                                                                                                70.9%

                                              50.7%        51.6%
        45.8%       48.0%

                                34.2%

                                                                                     18.2%                         16.6%

    1.4%         2.0%       1.7%                                           1.2%

                                         -0.4%         -1.1%                                                                         -0.7%
                                                                                                       -9.8%

    Total Meat     Beef      Chicken        Pork         Turkey                 Lamb                          Veal                        Exotic
                                        52 w/e Prior   Latest 9 weeks

                                                               Source: IRI POS, Total U.S. MULO; Measures: Dollar Sales % Change vs YA as of 5/3/20
                                                                                  © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   41
After Years of Flat Pounds Growth, the COVID-19 Pandemic Has Moved
a Considerable Amount More Volume Consistently Across Proteins
Volume (in Pounds) Sales Growth / Comparison Pre and During Pandemic / Total U.S. MULO Ending 5-3-20
                                                                                                                                                  66.2%

                                                           43.9%
                    37.1%                     38.7%
        35.3%
                                29.8%

                                                                                                                     12.3%
                                                                                        9.4%
                 0.6%       1.0%                                             1.0%

   -0.1%                                 -0.8%                                                                                         -2.5%
                                                       -3.2%
                                                                                                         -9.6%

    Total Meat     Beef      Chicken        Pork         Turkey                   Lamb                           Veal                        Exotic
                                        52 w/e Prior   Latest 9 weeks

                                                           Source: IRI POS, Total U.S. MULO; Measures: Volume (lbs) Sales % Change vs YA as of 5/3/20
                                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   42
Meat Sales Surged Due to Consumers Buying More During the Trip
~60% of Meat’s Multi-Billion Year Over Year Gain is Due to
Increased Spend, Not Frequency or Reach Expansion

                      CUTS WITH HIGHEST GROWTH ACROSS ALL OUTLETS

 Whole Bird Turkey      Ground Beef        Chicken Wings                             Cubed Beef                                          Pork Ribs

                                                  Source: IRI Panel Data including both fixed and random-weight, Total US All Outlets, 4 weeks ending 4-19-20
                                                                                         © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   43
COVID-19 Pandemic Expanded Consumers’ Horizons on What Meat to Buy
14% More Protein / Cuts Per Buyer During the 4 Weeks Ending April 19 Than the Same Period Last Year

                              2X       Ground Beef Had 2X More Buyer
                                       Increase Than Any Other Cut

                    Many Meat Cuts that Saw the High Increased Household Penetration
              Fresh Pork – All Cuts, Beef Steak, Chicken Breasts, Chicken Wings, Chicken Thighs

                                                c
                                                  Source: IRI Panel Data including both fixed and random-weight, Total US All Outlets, 4 weeks ending 4-19-20
                                                                                         © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   44
With Deeper Engagement in Meat, Many Cuts Split the Consumer’s Wallet
No One Protein or Cut Had More Than 1/3 of All Dollars Spent by Their Buyers in Fresh Meat

       32%                                                         27%                                                                25%                                                                 23%
      Ground Beef                                                       Lamb                                                    Chicken Breasts                                                  Whole Bird Turkey

                                      Beef Steak                                                          Ham                                                        Beef Roast

                                      31%                                                            25%                                                              25%
Note: Ham and Lamb saw high share of wallet in this period in both years due to Easter falling within these 4 weeks

                                                         Source: IRI Panel Data including both fixed and random-weight Measure: Share of Buyer’s Wallet (among product buyers), Total US All Outlets, 4 weeks ending 4-19-20
                                                                                                                                                      © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   45
Whole Bird Turkey Was an Example of a Slow-Cooking /
Roasted Meat Item That Saw a Demand Surge During
the Pandemic – With New and Surprising Buyers

Growth Across Multiple Purchase Metrics – 4 WE 4.19.20 vs. YA
   − +60% Dollar Sales
   − +30% More Buyers
   − +13% Spent in Dollars Spent per Unit

Households Driving Whole Bird Turkey Sales Growth During COVID-19
   − Female HOH Fill Time Employed +103%
   − Top 25 Largest Markets +83%
   − Lower Income +81%
   − Gen X (Born 1965-1980)
   − 2 Person HHs

                                                   Source: IRI Panel Data including both fixed and random-weight, Total US All Outlets, 4 weeks ending 4-19-20
                                                                                          © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   46
Ground Beef Lead Sales Growth Rates at the Beginning of the Pandemic Period,
 But in the Latest 3 Weeks Chicken Has Experienced Stronger Growth
 $ % Chg. vs. YA Weekly Trend During Pandemic / Fresh Meat Grinds / Total U.S. MULO WE 5-3-20

                                                                                                                                                                            53.9%
                                                                                                                                                                            51.0%
                                                                                                                                                                            46.2%
                                                                                                                                                                            39.3%

3/8/2020   3/15/2020   3/22/2020     3/29/2020   4/5/2020                  4/12/2020                    4/19/2020                     4/26/2020                         5/3/2020
                       Ground Beef      Ground Chicken                  Ground Pork                            Ground Turkey

                                                   Source: IRI POS, Total U.S. MULO; Measures: Dollar Sales % Change vs YA as of 5/3/20; all other grinds not show
                                                                                               © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.      47
Ground Has Been Doing Extremely Well as a Versatile, Easy-To-Prepare Cut;
Smaller Proteins Stepped in When Ground Beef Started Running Low
Over the week ending May 3 versus the comparable week in 2019:

   +51%                       +39%                     +54%                                          +39%

     GROUND                   GROUND                    GROUND                                          GROUND
      BEEF                    TURKEY                    CHICKEN                                          PORK

                                                                     Source: IRI, Total US, MULO, 1 week % growth versus year ago
                                                                 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   48
Ground Meat Has Experienced Very Strong Growth in Both Dollars and Volume;
Yet, Higher Price Per Pound With Dollar Trend Outpacing Especially in Turkey Grind

                            Dollar Sales Growth for Ground Meat
              45.8%               48.0%                                                                                            50.7%
                                                                        34.2%

       1.4%                2.0%                           1.7%

                                                                                                                   -0.4%
        Ground Beef       Ground Chicken                   Ground Pork                                             Ground Turkey
                                   52 w/e Prior   Latest 9 weeks

                            Volume Sales Growth for Ground Meat
              39.4%               41.9%
                                                                        32.8%                                                      36.4%

                           7.7%
       0.9%

                                                         -2.8%                                                     -0.5%
        Ground Beef       Ground Chicken                   Ground Pork                                             Ground Turkey

                                                       Source: IRI POS, Total U.S. MULO; Measures: Volume (lbs) Sales % Change vs YA as of 5/3/20
                                                                                © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   49
Ground Beef’s Explosive 53% Dollar
 Growth Across All Outlets Came from an
Increase in Every Shopper Behavior Metric
  Ground Beef is Truly Having a Material Impact
   in American Households During COVID-19

 49%        of U.S. households bought ground beef in the 4
            WE 4.19, 7 ppts. more than the prior year

 32%        of additional dollars (more than $1B) was from
            buyers who did not buy during the prior year

  $5        The average household spent $5 more on
            ground beef than the prior year, +30%

 23%        23% of buyers bought 2+ times in the 4-week
            period – 6% more than prior year

                                                     Source: IRI Panel Data including both fixed and random-weight, Total US All Outlets, 4 weeks ending 4-19-20
                                                                                            © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   50
Ham Sales Growth Drastically Outperformed Other Processed Meat Initially Driven by
Easter, Recently Surged as Assortment Diminishes, Consumers Seek Comfort, Value
$ % Chg. vs. YA Weekly Trend During Pandemic / Processed Meat Categories /
Total U.S. MULO WE 5-3-2020

                                                                                                                                                                             86.7%

                                                                                                                                                                             58.5%
                                                                                                                                                                             49.7%
                                                                                                                                                                             36.0%

3/8/2020   3/15/2020   3/22/2020   3/29/2020       4/5/2020                  4/12/2020                   4/19/2020                    4/26/2020                      5/3/2020

                          Smoked Ham/Pork          Sausage                       Bacon                     Frankfurters

                                               Source: IRI POS, Total U.S. MULO; Measures: Dollar Sales % Change vs YA as of 5/3/20; Refrigerated Lunchmeats not show
                                                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   51
Frankfurters Led for Dollar Sales Growth of Processed Meats at +54% In Latest 9
Weeks; Higher Average Price Paid Was Large Contributor as Volume Increased Less
                          Dollar Sales Growth for Processed Meats
                                  51.5%                              51.6%                                                    53.7%
                39.9%

                           2.0%                       2.0%                                                     0.7%

        -1.1%
       Smoked Ham/Pork       Sausage                         Bacon                                               Frankfurters

                          Volume Sales Growth for Processed Meats
                                                                     50.4%
                                  43.8%                                                                                       39.6%

                17.3%
                           1.2%

                                                      -0.2%                                                   -0.6%
         -6.4%
        Smoked Ham/Pork      Sausage                          Bacon                                              Frankfurters

                                                  Source: IRI POS, Total U.S. MULO; Measures: Volume (lbs) Sales % Change vs YA as of 5/3/20
                                                                           © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   52
Plant-Based Growth Was Strong Prior to the Pandemic; Similar to Traditional Meat,
Meat Alternatives Have Experienced Immense Weekly Growth During the Pandemic
Fresh Meat Alternatives Total U.S. MULO Ending 5-3-20

                               87.6%
                                                                                                     76.8%

                 26.8%
                                                                       21.5%

                    $ % Chg vs YA                                        Vol $ Chg vs YA

                                       52 w/e Prior   Latest 9 weeks

                                                                        © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   53
Meat Alternatives Posted Sales Explosions During the Initial Stock-Up Weeks, But
 Sales Have Trended Only Slightly Above Pre-Pandemic and Share Remains 1%
 Fresh (Non-Frozen) Meat Alternative Sales and Share of Total Meat

                      Fresh (non-frozen) meat alternatives dollars          Share meat alternatives vs. total (meat + alternatives)

$35,000,000   1.50%                                                                                                                                                       1.60%
                                    1.51%
                        1.42%                   1.43%
$30,000,000                                                 1.32%                                                1.34%                                                    1.40%
                                                                     1.27%                     1.30%                                                   1.27%
                                                                                                                                      1.23%
                                                                                                                                                                          1.20%
$25,000,000
                                                                                   1.18%
                                                                                                                                                                          1.00%
$20,000,000
                                                                                                                                                                          0.80%
$15,000,000
                                                                                                                                                                          0.60%

$10,000,000
                                                                                                                                                                          0.40%

 $5,000,000                                                                                                                                                               0.20%

        $0                                                                                                                                                                0.00%
              3/1       3/8         3/15        3/22        3/29      4/5          4/12        4/19              4/26                  5/3                5/10

                                                                                                 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.     54
Meat Alternatives Saw Increased Social Media Mentions Earlier in the Year
and the Initial Pandemic Buying Period, But Are Much, Much Lower Than Meat
Meat Alternative Terms Have 99% Less Social Media Discussion Than Meat
While Meat is Up 61% During COVID-19; Meat Alternatives Are Only

                                                  c
Seeing a 19% Increase in Social Chatter Since Before The Pandemic

               Mentions Are Mixed – Availability a Common Theme –
                      Sample of Posts From May 12-14, 2020

                                                                            Source: IRI Social Pulse powered by Infegy / Jan 1 – 5/14/20
                                                                    © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   55
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   56
Pre-Pandemic Value-Added Products Continued to Drive Growth for the Meat
Department; Opportunity in Poultry as Growth and Share Decline
Total Meat Department Value-Add Pre-Pandemic 52 weeks ending 2/23/20 :
Dollar Growth +2.4%                        Dollar Share 9.5 % of sales (9.3 share prior year)

     VA Protein Dollar Growth vs Year Ago L52 weeks ending 2/23/20
     X.X = Share Points to Total Protein
                                Beef                     2.9%
                                   8.9

                                -0.5%       Chicken
                                                   8.0

                               Pork                                           6.3%
                                 16.1

                                             Turkey
            -4.8%                               10.4

                                                                 Source: IRI Market Advantage, US MULO, Data Ending 2/232020      *Fixed Weight + Random Weight
                                                                                              © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   57
Value-Added Meat Products’ Growth During Pandemic Is Unprecedented;
Share to Total Protein Has Actually Declined Across All Proteins From Year Prior
Total Meat Department Value-Add Latest 10 weeks:
Dollar Growth 26.5%                               Dollar Share 10.1 % of sales (10 weeks a year ago: 11.1%)

           VA Protein Dollar Growth – Pandemic Time Period vs Year Ago
           X.X = Share Points to Total Protein
 Beef
 10.6                                            25.4%

 Chicken                        16.4%
 7.2

 Pork                                                            36.7%
 15.8

 Turkey                                                                                44.0%
 12.0

                                                               Source: IRI Market Advantage, US MULO, Data Ending 5/102020      *Fixed Weight + Random Weight
                                                                                            © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   58
NAE Continues Growth
                                                                                                  No Antibiotics Ever
  Across All Major
                                                                                                $ % Growth and $ Share
      Proteins

                                                             52 Wk (Pre)
         35%                                                   Growth
                                                                                             +0.6%                       +3.7%                            +0.2%                           +7.8%

                                                               Pandemic
                                                                Growth
                                                                                              +62%                           +32%                          +49%                           +66%

      of consumers said                                           (Pre)
                                                                 SHARE
                                                                                                 4.1                          37.2                            4.1                           11.7
   that free of antibiotics
      is important when                                        Pandemic
     fresh food shopping                                        SHARE
                                                                                                 4.6                          36.6                            4.1                           14.3

                      Source: IRI Market Advantage, US MULO, (Pre)Data Ending 2/23/2020 and (Pandemic) Data Ending 4/19/20     *Fixed Weight + Random Weight       Source: 2019 IRI Fresh Survey
                                                                                                                             © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   59
Southeast, California Experienced Strong Growth Pre-Pandemic; NAE Has Gained
   Share Point in Northeast Since Pandemic
  Fresh Meat – NO ANTIBIOTICS EVER | % Change Dollars vs. Year Ago | IRI Regions
                                WEST                          PLAINS
Total U.S. MULO              2.9% | 36.0%                  -3.2% | 33.8%
                                                                                           GREAT LAKES
  +3.2% 52 wks (Pre)                                                                        -0.5% | 32.7%

  +39% Pandemic                                                                                                                        NORTHEAST
                                                                                                                                       2.3% | 49.5%

                                                                                                                                                                               Share Points - NAE
                                                                                                                                                                           (Pre) Pandemic       Chg
                                                                                                                                                     TOTAL U.S.            13.2%     13.1%      -0.1
                                                                                                                                                     CALIFORNIA             9.4%      9.4%       0.0
                                                                                                                                MIDSOUTH             GREAT LAKES           14.2%     13.5%      -0.6
                                                                                                                                1.7% | 36.3%         MIDSOUTH              14.2%     14.1%      -0.1
                                                                                                                                                     NORTHEAST             17.1%     18.0%       1.0
                                                                                                                                                     PLAINS                11.0%     10.5%      -0.4
              CALIFORNIA                                                                                                                             SOUTH CENTRAL         10.5%      9.9%      -0.6
              9.5% | 36.2%                                                                                                                           SOUTHEAST             15.4%     14.9%      -0.5
                                                                                                                                                     WEST                   9.2%      9.2%       0.0
                                                                                                                       SOUTHEAST
                                                                                                                       10.5% | 38.7%

                              SOUTH CENTRAL
                                -0.4% | 31.6%

                                            Source: IRI Market Advantage, US MULO, (Pre)Data Ending 2/23/2020 and (Pandemic) Data Ending 4/19/20     *Fixed Weight + Random Weight
                                                                                                                 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   60
Organic Growth is Strong
                                                                                                        Organic Claims
   in Beef and Turkey
                                                                                                $ % Growth and $ Share

                                                             52 Wk (Pre)
           20%                                                 Growth
                                                                                             +9.8%                       +4.6%                              -25%                          +8.9%

                                                               Pandemic
                                                                Growth
                                                                                              +57%                           +26%                          -9.7%                          +39%

       of consumers said                                          (Pre)
                                                                 SHARE
                                                                                                 1.3                           5.3                            0.1                             2.1
   that organic is important
   when fresh food shopping                                    Pandemic
                                                                SHARE
                                                                                                 1.4                           5.2                            0.1                             2.2

                      Source: IRI Market Advantage, US MULO, (Pre)Data Ending 2/23/2020 and (Pandemic) Data Ending 4/19/20     *Fixed Weight + Random Weight       Source: 2019 IRI Fresh Survey
                                                                                                                             © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   61
Organic Has Grown Across All Regions Pre and Throughout Pandemic Time Period;
  Nearly 60% of All Organic Meat Sales Derive from Northeast, California and Midsouth
  Fresh Meat - ORGANIC | % Change Dollars vs Year Ago | IRI Regions
                                 WEST                          PLAINS
Total U.S. MULO               7.3% | 32.1%                  0.9% | 33.0%
                                                                                            GREAT LAKES
  +5.7% 52 wks (Pre)                                                                         3.2% | 30.0%

  +35.6% Pandemic                                                                                                                       NORTHEAST
                                                                                                                                        3.9% | 28.5%

                                                                                                                                                                               Share Points - Organic
                                                                                                                                                                            (Pre) Pandemic        Chg
                                                                                                                                                      TOTAL U.S.             2.1%      2.1%        0.0
                                                                                                                                                      CALIFORNIA             3.6%      3.6%        0.0
                                                                                                                                 MIDSOUTH             GREAT LAKES            1.5%      1.5%        0.0
                                                                                                                                 8.4% | 43.3%         MIDSOUTH               2.2%      2.3%        0.1
                                                                                                                                                      NORTHEAST              3.2%      3.2%        0.0
                                                                                                                                                      PLAINS                 1.1%      1.1%        0.0
              CALIFORNIA                                                                                                                              SOUTH CENTRAL          1.2%      1.2%        0.0
              6.6% | 38.5%                                                                                                                            SOUTHEAST              1.3%      1.4%        0.1
                                                                                                                                                      WEST                   2.5%      2.4%       -0.1
                                                                                                                        SOUTHEAST
                                                                                                                        6.4% | 45.6%

                              SOUTH CENTRAL
                                8.2% | 43.8%

                                             Source: IRI Market Advantage, US MULO, (Pre)Data Ending 2/23/2020 and (Pandemic) Data Ending 4/19/20     *Fixed Weight + Random Weight
                                                                                                                  © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   62
Grass-Fed Beef Growth Has Slowed Prior to Pandemic Signifying Opportunity
to Gain New Buyers and Additional Usage Occasions

                                                                                                                Grass-Fed Beef
                                                                                                          HOUSEHOLD PENETRATION

                                                                                                                   12.4%
                                                                                                                  Are Repeat Buyers of
                52 Wk (Pre)   Pandemic                        3 YR CAGR (2019)                                      Grass-Fed Beef

    $ GROWTH     +1%           +48%                                     +7%                                             6.2%
                                                                                                                                                                0.6%
     LBS
     GROWTH      +2%           +46%                                   +11%
                                                                                                                                                          % of Dollars Spent on
     AVG                                                                                                                                                   Grass-Fed Beef per
     PRICE/LB    $7.00         $7.16                                  $7.13                                                                                        Trip

                                                  0.6%                                                                                                      65.5 Days
     SHARE       2.6%          2.7%                                    2.5%                                                                                     Purchase Cycle

                                                                                                  Sources: Household Panel data UPC + RW Reference Guide. All Outlets,
                                                                                                  L52wks 2019 and ^ IRI Shopper Loyalty FSP data for Grocery (Food)

                              Source: IRI Market Advantage, US MULO, (Pre)Data Ending 2/23/2020 and (Pandemic) Data Ending 4/19/20     *Fixed Weight + Random Weight
                                                                                                   © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   63
ahead

        © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   64
Meat Department Takeaways and Key Considerations
• COVID-19 turned consumers’ attention to meat in an unprecedented way with more at-
  home cooking from scratch driving experimentation and interest
• Recent media, supply constraints and price pressures brought about unprecedented
  demand and changed behaviors expected to stay for the near-term
• Shoppers are deeply engaged with meat more than ever before

Recommendations:
• New buyers and behaviors are valuable to reinforce – this summer is a prime time to
  market especially via targeted digital and online ordering engagement
• Proactively plan for the new economic reality – strategic pricing and promotional
  engagement is overdue and now table-stakes in the meat department
• Consider new competitive and departmental realities – now is the time for solutions, not
  silos, to capture and keep concentrated market share

                                                              © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   65
IRI’s Four Part Webinar
Series Tracking the
Dramatic Pivot of the
U.S. Consumer and         Replay Available Here                    Replay Available Here
Shopper During the
COVID-19 Pandemic

                          Replay Available Here                  Replay Available Soon

                                                  © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   66
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   67
Chris DuBois
Chris.Dubois@IRIworldwide.com

Jonna Parker
Jonna.Parker@IRIworldwide.com

Pete Swanson
Peter.SwansonJr@IRIworldwide.com

                                   © 2020 Information Resources Inc. (IRI). Confidential and Proprietary.   68
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