Excellence in an Export Market · –Marketing regional producers –Canadian Beef Brand Mark annual impressions: 182 MILLION •Superstore – 100% Canadian Beef –On pack and counter

Excellence in an Export Market

Saskatchewan Agriculture Trade Summit

February 5, 2014

Rob Meijer – President, Canada Beef

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Canada Beef – Our Core

Vision: A dynamic Canadian Beef

Advantage delivering

recognized value.

Mission: Innovative, collaborative and

sustainable Canadian Beef

solutions.

3

Canada Beef – Our Wheelhouse

Calgary

Mississauga

San Pedro Garza Garcia, Mexico

Hong Kong

Taipei, Taiwan

Tokyo, Japan

Shanghai, China

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Canadian Beef Exports - 2012

Source: Statistics Canada

USA 72.7%

Mexico 9.0%

Hong Kong & Macau 7.9%

Japan 4.8%

Russia 1.8%

Taiwan 0.1%

Other 4.3%

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Top 10 Exporting Nations as % of Production 2012

83%

65%

59%

44%

38%

15%

11%

11%

6%

1%

0% 20% 40% 60% 80% 100%

New Zealand

Australia

Uruguay

India

Canada

Brazil

Argentina

United States

EU - 27

China

Source: USDA

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Strong Global Competition

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Brand Differentiation

• Premium brand identity

• Unique selling points

• Support value proposition

• Technical and emotional attributes

• Supportive of industry brands (producer, packer, retailer)

• Develop and deliver Canadian Beef Story

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Breaking Down our Differentiators

Differentiators

Emotional

Genetics

Meat Quality

Food Safety

Technical

Natural Resources

Commitment

Reputation

Canadian Beef Advantage

Canadian Beef Brand Promise

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The Canadian Beef Brand Promise (Emotional)

The Product The Producer Quality & Safety Sustainability

Canadian beef has a rich heritage and tradition, produced sustainably and with

integrity by Canadians who are global leaders in ensuring quality and safety.

Canadian beef is grain-fed and produced from internationally recognized

livestock genetics to deliver an exceptional eating experience.

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The Canadian Beef Advantage (Technical)

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The Canadian Beef Advantage

Consumer

Preference

“Image”

On Farm

Production

Systems

National Cattle

Identification

System

National

Quality

Grading

Standards

Breeds/

Genetics

Food

Safety

Systems

Natural

Resources

Animal

Health

Systems

Committed

Global

Marketing

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Building Value & Brand Recognition in Export Markets

Key value added accounts

Key FS accounts Key retail accts

Partner Program

Consumers:

-Brand Recognition.

-Repeated business

Collateral business

-Pre qualify customer.

-Supply chain alignment

-Develop trust on CBA.

- Ensure consistent quality messaging.

-Create pull. (CBA).

-Tangible value (trade).

INDUSTRY DISTRIBUTOR CANADA BEEF INC TRADE ACCOUNTS NEW BUSINESS

CB’s and Industry export objectives

Development key partner distributor

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Canada’s Brand Reputation

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Build & Improve Brand Differentiation

• Align with reputable outlets, distributors and quality brands

• Consistent brand image

• Invest in brand awareness through distribution, consumers communications

• Maximize social media

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Sustaining Exports

• Development of distribution accounts

• Convey CBA messaging - Tangible quality attributes that allow for differentiation

• Show the product solves industry challenge

• Sustainable and consistent supply

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Market Specific Strategies & Tactics – U.S.

• Conduct benchmarking research

• Leverage the Canadian beef story

• Enhance key relationships – trade and

industry

• Host in-market strategic planning sessions

• In market field work with packers

• Enhance Canadian beef/veal programs

Bone In4%

Boneless Cuts36%

Trim43%

Offal4%

Misc10%

Veal3%

Canadian Beef Exports to the U.S. by Product Type, 2012 YTD

Source: AAFC

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Brand Loyalty - Domestic Brand Partners

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Brand Loyalty - Domestic Brand Partners

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Market Specific Strategies & Tactics - Hispanic

• Collaborate with Consulate General

and Trade Commissioners

• Conduct technical seminars with

trade customers

• Work in coordination with Canadian

packers

• Collaborate with brand license

partners

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Market Specific Strategies & Tactics - Asia

China

• Maintain strong strategic relationships with Canadian beef/veal packers and

exporters

• Penetrate deeper in Food Service market

• Selectively partner with retailer/online-retailers

• Drive long term partnerships with channel partners

• Strengthen online and offline Advertisement /PR event/Social media

• Leverage relationship with culinary chef association

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Market Specific Strategies & Tactics - Asia

Japan

• Implementation of promotional activity

• Strengthening brand marketing of food service and processed foods

• Create a mascot as a goodwill ambassador

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Market Specific Strategies & Tactics – New Markets

• Product lines in excess

• Plant approval

• Logistic efficiencies

• Learn market access conditions

• Identify reliable distribution

accounts

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Other Operational Strategies • Strategic shift to a “regional hub” approach

• Collaborate with Trade Commissioners in export markets

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Retail Partners in Saskatchewan • Boston Pizza – Pizza Burger

– March – May 2013

– 319% volume increase

– Boston Pizza to Canada Beef investment $: $84:$1

• Canada Safeway – Farmed by Canadians

– Marketing regional producers

– Canadian Beef Brand Mark annual impressions: 182 MILLION

• Superstore – 100% Canadian Beef

– On pack and counter merchandising

– Canada Beef Brand Mark annual impressions: 52 MILLION

• Federated Coop

– Full marketing integration

– Canada Beef Brand Mark annual impressions: 65 MILLION

– Product development work on petit tender

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Summary – Export Dominance & Sustainability

1. Position and strengthen the Canadian Beef Brand in “priority

markets”

2. Position as a premium protein offering

3. Differentiate and leverage unique attributes (CBA)

4. Balance high valued export markets with domestic market

5. Negotiate viable access to key international markets

6. Reliable availability of supply

7. Robust and consistent food safety systems

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