Trends in the Protein Landscape

Who’s our consumer and what do they want 20 years from now?

by Troy Smith, field editor

MANHATTAN, Kan. (June 15, 2016) — Getting orders filled and delivered on time is “a given” in the food-distribution business. It takes more to be really competitive. Brad Morgan, an executive with Performance Food Group, says branded beef is a driver of business volume for the national food distribution company, which supplies food and related products to restaurants, hotels and other foodservice institutions.

“Consumer food preferences change slowly compared to other products, so the preferred diet of the future probably won’t be significantly different,” opined Brad Morgan. “What could change far more is who provides the food. Consumers are likely to follow providers on the basis of how food is delivered and the choices available, while seeking consistency of quality and service.”

“If you can get the beef business for a restaurant, you often get the rest of their business, too,” said Morgan, during his presentation to the 2016 Beef Improvement Federation (BIF) Annual Meeting and Symposium hosted June 14-17 in Manhattan, Kan. “And our customers like branded beef products.”

Morgan said his customers’ customers crave red meat, so PFG’s beef sales hinge on the company’s understanding of those end consumers. He told the BIF audience that providing them with satisfying beef-eating experiences requires an understanding of the “5 Ms” associated with today’s consumer.

• MEAT LOVERS: Morgan said these consumers have a passion for food and are willing to open their wallets and pay a premium for highly marbled beef cuts. Baby Boomers often rank among the true meat lovers and tend to be loyal to beef, especially when bringing people together for a quality dining experience. Even value-conscious Baby Boomers often purchase beef as part of their routine. For meat lovers, quality is foundational, and they want it consistently.
• MILLENNIALS: Some people might be surprised at the fact, noted Morgan, but Millennials (born 1981-1996) typically like beef and will be important to the future of red meat sales. While their budgets may be tight presently, they are the group that’s likely to spend more for beef, year after year. However, Millennials want to know more about how their food is grown and processed.
• MOTIVATION: “It’s not enough to know our consumers, but we must also understand the motivations behind why they are buying red meat and what they want from the experience,” stated Morgan, “so we’ve got to be better listeners.”
  
  It is not enough for a company to sell products consumers want at prices they are willing to pay. Morgan said companies are now expected to demonstrate that they care about safety, health, animal wellbeing and sustainability.
• MOMS: Morgan cited survey results suggesting women represent the largest market opportunity in the world. Collectively, they control $20 trillion in annual consumer spending power. It is estimated that women will control two-thirds of the consumer wealth in the United States during the next 10 years. Women handle the bulk of purchasing decisions for everyday items like groceries and clothing — even for those items targeted at men. In fact, 50% of products marketed to men are actually purchased by women. Morgan said it’s also worth noting that 83% of new moms are Millennials.
• MARBLING: Despite economic recession, the demand for high-quality beef continued to improve. Morgan said most of the beef PFG sells is graded Choice or better for quality. While consumers want food producers and processors to exhibit transparency regarding their practices, to be worthy of trust, Morgan emphasized that most customers have a quality focus.

“Consumer food preferences change slowly compared to other products, so the preferred diet of the future probably won’t be significantly different,” opined Morgan. “What could change far more is who provides the food. Consumers are likely to follow providers on the basis of how food is delivered and the choices available, while seeking consistency of quality and service.”

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