USMEF-Mexico Working on Pork, Beef Rebound

USMEF-Mexico Working on Pork, Beef Rebound

The double whammy of the economic downturn and the A-H1N1 flu virus has dealt a harsh blow to the meat trade in Mexico – both for U.S. exports and the domestic industry.  In response, USMEF-Mexico has engaged in a multifaceted communications program to rebuild consumer confidence in U.S. pork, and to build momentum for U.S. beef as the economy begins to show signs of recovery.

“The economic slump has driven many consumers to curtail their purchases, and the flu virus effectively closed down all economic activity in Mexico City and in many other parts of the country, including tourist destinations, for a good portion of May,” said Chad Russell, USMEF regional director for Mexico and the Dominican Republic.

“While beef sales in Mexico have been hurt all year by diminished consumer spending power, the damage spilled over to pork in May when the A-H1N1 flu virus affected people’s confidence in pork and took millions of people off the streets and out of stores and restaurants,” Russell said.  “Not only did the flu situation lead to cutbacks in U.S. pork imports, but it created a backlog of domestic pork that has taken time to clear.”

“Don Pepe” tells a customer why she should buy U.S. beef and pork

To help offset the impact of this dual challenge, Russell and his team have channeled their resources into programs focused on restoring consumer confidence and stirring demand.  Here is a snapshot of some of those programs:

• Point-of-sale programs – during the May through July period, USMEF has expanded its Ideal U.S. Meat Case program, including the popular retail point-of-sale (POS) meat consultants or “Don Pepes,” who offer meat selection and preparation advice to consumers and who have been proven to boost U.S. beef and pork sales by double digits.  USMEF added Don Pepes to 45 additional retail stores from the Comercial Mexicana, Chedraui and San Francisco de Asis chains in the cities of Puebla, Xalapa, Veracruz and Merida, bringing the total of stores participating in this marketing initiative to 170 nationwide.
• Flu education – to help offset misinformation regarding the A-H1N1 flu virus, USMEF dispatched corporate chef Max Covaliu to Mexico City, Guadalajara, Monterrey, Queretaro, Leon, Puebla, Xalapa, Veracruz and Merida in May, June and July to give influenza-specific training to the team of Don Pepes meat consultants so that they could share this knowledge with consumers.
• In-store nutritionists – focusing on the city hardest hit by the influenza virus, USMEF stationed a team of specialized nutritionists at 17 retail stores in Mexico City in May and June to provide consumers with influenza-specific knowledge.   In anticipation of a potential rebound by the flu virus in the fall, USMEF is prepared to redeploy the nutritionists in August and September.
• Sam’s Club promotion – U.S. pork was the centerpiece of three weekend promotions in April and May at Sam’s Club stores.  Demonstrators sampled U.S. pork and explained its attributes , boosting sales by 30 percent compared to last year.
• Movie promotion – driving increased purchases of U.S. pork is the objective of a new “USMEF Takes You to the Movies” promotion launched last month at 24 San Francisco de Asis stores in the Yucatan Peninsula.  Consumers who buy from 9 to 12 pounds of selected U.S. pork items will receive a movie ticket.  The weekend promotion, which runs through September, is accompanied by sampling of U.S. pork.  A similar promotion was launched this month at 60 Comercial Mexicana stores.
• Targeting institutional buyers – USMEF is launching a three-month pork promotion this month at 39 Carne-Mart retail outlets belonging to BAFAR that will target institutional pork purchases as well as consumers.  Newspaper and television advertising combined with in-store sampling will increase awareness of the quality and value of U.S. pork.
• Back-to-school promotion – a back-to-school promotion is being launched this month at 43 Chedraui stores, supported by newspaper and television advertisements.  Running through the end of August, the promotion is designed to spur purchases by offering a school supplies kit to consumers who buy upwards of 10 pounds of U.S. pork.
• Sampling and demonstrations – the effectiveness of product sampling in driving sales has been demonstrated time and again, and it will be utilized in a two-month promotion starting in mid-July at 29 S-Mart stores in Ciudad Juarez and Monterrey. 
• Costco promotion – 32 Costco stores throughout Mexico will participate in a six-week U.S. pork promotion starting at the end of July.  An aggressive sampling and demonstration program will be conducted at the popular retail chain.
• Doubled sales force training – USMEF’s popular eight-part sales force training seminars held in Monterrey, Mexico, have been expanded to include eight seminars in Mexico City.  Developed in partnership with Monterrey Institute of Technology, the seminars provide sales personnel with valuable information on the attributes of U.S. beef and pork cuts, preparation and cold chain management.  Wal-Mart and Soriana have been added to the roster of participating retailers.

Ask the meat expert ad

• Trade teams – two separate trade teams will travel to the United States from Mexico to visit producers and meat processors.   The program is targeted at Mexican importers who are interested in meeting pork suppliers in the U.S. with the objective of convincing them to switch to U.S. pork
• Best U.S. pork promotions – two separate U.S. pork promotions are slated for later in the year with Costco, S-Mart, Comercial Mexicana, Chedraui and San Francisco de Asis supermarkets.   Demonstrators will give shoppers information on the superior attributes of U.S. pork and will offer samples at “The Best U.S. Pork” promotion in September and “The Best U.S. Meat This Christmas” in November and December.

Through the first four months of 2009, U.S. pork exports to Mexico were outstanding, jumping 71 percent in volume and 62 percent in value over the same period in 2008, making Mexico the largest U.S. pork export market by volume and second only to Japan in value.  Based on unofficial trade data, exports of U.S. pork to Mexico in May were down about 19 percent from the preceding month, less than most analysts had anticipated given that the epicenter of the H1N1 influenza outbreak occurred in Mexico.

At the same time, Mexico remains the No. 1 destination for U.S. beef, although the combined effects of the slower economy and the decline in the value of the Mexican peso versus the U.S. dollar have hurt consumers’ ability to buy U.S. beef.  In the first four months of 2009, beef export volume and value are down about 21 percent.

“As the economy rebounds this summer and fall, we will be positioned to be top-of-mind with consumers as they come back to stores and normal spending patterns return,” said Russell.

# # #

The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

For more information, contact Jim Herlihy at jherlihy@usmef.org.

 

USMEF-Mexico Working on Pork, Beef Rebound

The double whammy of the economic downturn and the A-H1N1 flu virus has dealt a harsh blow to the meat trade in Mexico – both for U.S. exports and the domestic industry.  In response, USMEF-Mexico has engaged in a multifaceted communications program to rebuild consumer confidence in U.S. pork, and to build momentum for U.S. beef as the economy begins to show signs of recovery.

“The economic slump has driven many consumers to curtail their purchases, and the flu virus effectively closed down all economic activity in Mexico City and in many other parts of the country, including tourist destinations, for a good portion of May,” said Chad Russell, USMEF regional director for Mexico and the Dominican Republic.

“While beef sales in Mexico have been hurt all year by diminished consumer spending power, the damage spilled over to pork in May when the A-H1N1 flu virus affected people’s confidence in pork and took millions of people off the streets and out of stores and restaurants,” Russell said.  “Not only did the flu situation lead to cutbacks in U.S. pork imports, but it created a backlog of domestic pork that has taken time to clear.”

“Don Pepe” tells a customer why she should buy U.S. beef and pork

To help offset the impact of this dual challenge, Russell and his team have channeled their resources into programs focused on restoring consumer confidence and stirring demand.  Here is a snapshot of some of those programs:

• Point-of-sale programs – during the May through July period, USMEF has expanded its Ideal U.S. Meat Case program, including the popular retail point-of-sale (POS) meat consultants or “Don Pepes,” who offer meat selection and preparation advice to consumers and who have been proven to boost U.S. beef and pork sales by double digits.  USMEF added Don Pepes to 45 additional retail stores from the Comercial Mexicana, Chedraui and San Francisco de Asis chains in the cities of Puebla, Xalapa, Veracruz and Merida, bringing the total of stores participating in this marketing initiative to 170 nationwide.
• Flu education – to help offset misinformation regarding the A-H1N1 flu virus, USMEF dispatched corporate chef Max Covaliu to Mexico City, Guadalajara, Monterrey, Queretaro, Leon, Puebla, Xalapa, Veracruz and Merida in May, June and July to give influenza-specific training to the team of Don Pepes meat consultants so that they could share this knowledge with consumers.
• In-store nutritionists – focusing on the city hardest hit by the influenza virus, USMEF stationed a team of specialized nutritionists at 17 retail stores in Mexico City in May and June to provide consumers with influenza-specific knowledge.   In anticipation of a potential rebound by the flu virus in the fall, USMEF is prepared to redeploy the nutritionists in August and September.
• Sam’s Club promotion – U.S. pork was the centerpiece of three weekend promotions in April and May at Sam’s Club stores.  Demonstrators sampled U.S. pork and explained its attributes , boosting sales by 30 percent compared to last year.
• Movie promotion – driving increased purchases of U.S. pork is the objective of a new “USMEF Takes You to the Movies” promotion launched last month at 24 San Francisco de Asis stores in the Yucatan Peninsula.  Consumers who buy from 9 to 12 pounds of selected U.S. pork items will receive a movie ticket.  The weekend promotion, which runs through September, is accompanied by sampling of U.S. pork.  A similar promotion was launched this month at 60 Comercial Mexicana stores.
• Targeting institutional buyers – USMEF is launching a three-month pork promotion this month at 39 Carne-Mart retail outlets belonging to BAFAR that will target institutional pork purchases as well as consumers.  Newspaper and television advertising combined with in-store sampling will increase awareness of the quality and value of U.S. pork.
• Back-to-school promotion – a back-to-school promotion is being launched this month at 43 Chedraui stores, supported by newspaper and television advertisements.  Running through the end of August, the promotion is designed to spur purchases by offering a school supplies kit to consumers who buy upwards of 10 pounds of U.S. pork.
• Sampling and demonstrations – the effectiveness of product sampling in driving sales has been demonstrated time and again, and it will be utilized in a two-month promotion starting in mid-July at 29 S-Mart stores in Ciudad Juarez and Monterrey. 
• Costco promotion – 32 Costco stores throughout Mexico will participate in a six-week U.S. pork promotion starting at the end of July.  An aggressive sampling and demonstration program will be conducted at the popular retail chain.
• Doubled sales force training – USMEF’s popular eight-part sales force training seminars held in Monterrey, Mexico, have been expanded to include eight seminars in Mexico City.  Developed in partnership with Monterrey Institute of Technology, the seminars provide sales personnel with valuable information on the attributes of U.S. beef and pork cuts, preparation and cold chain management.  Wal-Mart and Soriana have been added to the roster of participating retailers.

Ask the meat expert ad

• Trade teams – two separate trade teams will travel to the United States from Mexico to visit producers and meat processors.   The program is targeted at Mexican importers who are interested in meeting pork suppliers in the U.S. with the objective of convincing them to switch to U.S. pork
• Best U.S. pork promotions – two separate U.S. pork promotions are slated for later in the year with Costco, S-Mart, Comercial Mexicana, Chedraui and San Francisco de Asis supermarkets.   Demonstrators will give shoppers information on the superior attributes of U.S. pork and will offer samples at “The Best U.S. Pork” promotion in September and “The Best U.S. Meat This Christmas” in November and December.

Through the first four months of 2009, U.S. pork exports to Mexico were outstanding, jumping 71 percent in volume and 62 percent in value over the same period in 2008, making Mexico the largest U.S. pork export market by volume and second only to Japan in value.  Based on unofficial trade data, exports of U.S. pork to Mexico in May were down about 19 percent from the preceding month, less than most analysts had anticipated given that the epicenter of the H1N1 influenza outbreak occurred in Mexico.

At the same time, Mexico remains the No. 1 destination for U.S. beef, although the combined effects of the slower economy and the decline in the value of the Mexican peso versus the U.S. dollar have hurt consumers’ ability to buy U.S. beef.  In the first four months of 2009, beef export volume and value are down about 21 percent.

“As the economy rebounds this summer and fall, we will be positioned to be top-of-mind with consumers as they come back to stores and normal spending patterns return,” said Russell.

# # #

The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

For more information, contact Jim Herlihy at jherlihy@usmef.org.