News & Events | Variety Meat Promoted in Egypt, High-Quality Beef in UAE

Variety Meat Promoted in Egypt, High-Quality Beef in UAE

Enthusiastic consumer participation in an April USMEF U.S. Beef Checkoff promotion in supermarkets in Egypt and the United Arab Emirates (UAE) pushed sales well over forecasts. Supermarket managers reported the biggest impact on the overall sales performance of U.S. beef since its first reentry into their stores in March 2005. The UAE promotions produced sales increases ranging between 160 percent and 180 percent during the promotion and 35 percent to 45 percent the week after. Sales in all four participating stores in Egypt recorded increases between 140 percent and 200 percent during promotions and 75 percent to 90 percent a week later, when compared to the pre-promotion period.

The promoted products in the two markets were different. In the UAE, high-quality beef muscle cuts were featured. Beef livers, kidneys and hearts were promoted in Egypt because of their importance in the Egyptian diet and the dependence of Egyptian consumers on them as the most affordable protein source. Yet the mechanics of the promotions were the same: demonstration stands, experienced presenters, samples, educational communication with end users and point-of-sale (POS) materials for consumers.

Product-specific POS materials, recipe handouts and posters were produced and distributed in both markets to enhance U.S. beef awareness, visibility, product knowledge and purchase intentions among the retail trade and their customers.

Such activities are part of a carefully designed USMEF strategy to establish U.S. beef products in stores, displace the competition, expand the range of products, introduce new items, increase sales and maintain and secure a presence.

While sampling the U.S. beef products, Egyptian shoppers read product brochures and listened to the presenters tell them about the safety, freshness, flavor and meat texture of U.S. beef livers and kidneys as opposed to competitors’ products. Meat cases where U.S. beef variety meat is gaining a better and broader display, thanks to USMEF promotional and marketing efforts, are featuring fresh thawed beef livers and kidneys with prominent identification of their American origin.

Apart from the basic strategy of reassuring buyers of the safety and premium value of U.S. beef, and reinforcing their confidence in the profitability of carrying U.S. beef in their outlets, retail promotions also were tailored to capitalize on the growing retail sector and emphasize the safety and availability of U.S. beef, its product range and its unique quality.

In the UAE, the in-store product demonstrations and samplings permitted USMEF to establish a positive image for U.S. beef based on quality, consistency and value, three elements that reinforce long-term purchasing loyalty. They also spread the word about the availability of high quality chilled U.S. beef cuts in the retail sector, and consumers saw the new cuts in special retail packs and suggested preparation ideas that helped draw attention and arouse interest. Due to the promotion’s success, the local supplier will conduct identical promotions for three months at Géant and Carrefour’s three outlets.

Sales of high-quality U.S. beef to the Middle East are up 50 percent this year, according to USMEF Middle East consultant Simon Bakht. The U.S. January-April statistics reflect this in a 54 percent increase in value to $15.1 million despite a 5 percent drop in volume to 2,789 metric tons (6.15 million pounds).

Bakht reports that the liver market is recovering in Egypt — although variety meat export volume is down 10 percent to 25,227 metric tons (55.6 million pounds), value is up 11 percent to $26.1 million, in the first four months of 2008.

Bakht cautions that U.S. exporters should always check with their importers before shipping. Regulations can change overnight and although Dubai and Abu Dhabi are both in the UAE, regulations are not exactly the same. Abu Dhabi, for instance, mandates Arabic labeling, but Dubai does not.

The Egyptian finance minister announced that the cost of food and energy subsidies would continue to rise in the 2008/9 financial year. Egypt plans to subsidize food to the tune of 20 billion Egyptian pounds ($3.7 billion) from 15 billion pounds this year. Energy subsidies will rise to more than 60 billion pounds ($11.1 billion). Egypt has experienced a massive increase in the prices of wheat and other food products, but the Egyptian government believes the rises in international food prices are temporary and expects them to stabilize.