BIC’S MARKETING PLAN AND COMMERCIAL BEEF STRATEGY OVERVIEW

In 2005, BIC carried out successful marketing programs in Canada and the United States, supported through funding received from industry and government partners. Merchandising seminars were held with retailers across the country, focusing on: new cut strategies; maximizing carcass utilization; increasing feature activity; branded beef programs; crosspromotional opportunities; and nutrition. BIC also provided financial tools programs to ensure retailers and foodservice operators understand the profitability of beef. Medallions,
quick roasts, rotisserie roasts and ground beef were promoted through in-store video and consumer brochures at retail counters. BIC’s efforts in promoting new cuts and maximizing carcass utilization have been paying off, as the news cuts are now regular items in 70% of major chains across Canada and sales of medallion steaks increased 14 percent over the past year. BIC worked to re-establish and secure US markets for eligible Canadian beef products, through seminars and technical resource distribution.

In addition to the Beef Up Your Business foodservice quarterly newsletter, distributed in French and English, BIC introduced two new newsletters – one for retailers, and also a monthly electronic foodservice newsletter, The Inside Cut.

BIC also circulated a new Retail Merchandising Guide, Ground Meat Management Manual and Retail Merchandising Manual - resources utilized by many retailers to enhance internal training programs and development of standard operating procedures for cutting and grinding.

In an effort to move ground beef and alternate beef cuts at the foodservice level, BIC supported restaurant promotions with Harvey’s (Black Angus Burger), Red Lobster Canada (steak promotion), Taco Bell, Montana’s, Milestones Restaurant, McDonald’s and Burger King. Many independent restaurants also looked to BIC for promotional materials. Technical resources were developed for the foodservice sector, providing purchasing and menu information on various beef cuts. As a result of BIC’s support, many promotional beef menu items have become permanent menu items, including Harvey’s Black Angus Burger and Taco Bell’s Steak Quesadilla.

Consumer resources continue to be a vital way to educate consumers about the ease of preparation, healthfulness, benefits and variety of Canadian beef. Great Grilling: Budget-Beef From Simmer to Sizzle focuses on grilling value-priced cuts such as marinating and simmering cuts, pot roast and stewing beef. The Burger Basics and More booklet, point of sale materials and a cooking video, were developed to encourage consumers to purchase more ground beef, while promoting its healthfulness. Comfort highlighted contemporary comfort food recipes using under utilized cuts.

Casual Gatherings and companion piece Roasting Prime Rib focus on easy entertaining, using price conscious cuts, as well as promoting prime rib sales over the Christmas season. BIC partnered with the Heart and Stroke Foundation to develop the resource Heart Smart: Cooking with Lean Ground Beef, distributed through January's Reader’s Digest. Continuing Confidence in Canadian Beef, focusing on the BSE safeguards in place to protect Canadian beef, was also distributed to one million households through Readers Digest.

Consumer resources are also promoted through news release packages distributed to food writers and editors across the country - a cost effective way to reach media to promote the benefits of Canadian beef.

BIC continues to respond to industry issues such as: BSE; E. coli; Conjugated Linoleic Acid (CLA); nutrition recommendations; labeling; and trans fats. Activities include media interviews; representation at industry meetings; updating fact sheets and backgrounder information and posting to website; providing media with resources and monitoring media coverage; and resource development.

Consumer perceptions of beef’s healthfulness continue to be a challenge for the industry. As a result, BIC delivers very targeted messages to people of influence in the health community. Two very successful BIC webcasts were held, allowing BIC to present the results of nutrition research electronically, to 700 participants. Healthlink, a health professional electronic newsletter, continues to receive strong support, with 12 issues circulated and posted on the Web site.

A publication, Healthy Food Choices…Good Reasons to Recommend Foods of Animal Origin, was prepared through the collaboration of six commodity groups. In addition, a consumer booklet - Simply Nutritious…Lean Ground Beef – focusing on the goodness of lean and extra lean ground beef was developed and distributed.
BIC continues to respond to customer questions and requests through the toll-free line and Web site www.beefinfo.org.

BIC provided producers, CCA, provincial affiliates, government and industry partners with updates on BIC activities and resources through 22 different farm publications, CCA news lines, direct mailings and representation at provincial association and industry meetings. Four 4-page BIC reports were distributed to 75,000 producers and industry affiliates via insertion in provincial association mailings.

BIC, in conjunction with industry, developed a Commercial Beef Utilization Strategy to enhance utilization of beef from older animals. BIC conducted laboratory research, which focuses on characterizing the meat quality of mature cattle; competing imported product and researching potential ways to enhance the value of commercial beef; and the Product Development and Reformulation Partners Program, encouraging greater use of commercial beef. The result of the Commercial Beef Utilization activities contributed to the displacement of 130,000 tonnes of imported beef.

ORGANIZATIONAL STRUCTURE AND STRATEGIC PLAN

In December, 2005, BIC announced a new structure for the organization. The structure was developed and approved by the BIC Committee and the Canadian Cattlemen’s Association Executive.

BIC also developed a new Strategic Plan through 2015 to maximize demand and optimize value for Canadian beef in both Canada and the United States.