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DENVER — December’s BSE incident has had little to no impact on domestic consumer demand for beef, but the loss of export markets is expected to lead to excess tonnage by summer. With that in mind, beef promoters are gearing up their summer advertising programs. Mark Thomas, vice president of global marketing for the National Cattlemen’s Beef Association, talked about the checkoff-funded promotion programs planned for the summer months during a recent press conference. "It’s critical with the supply situation that we be as aggressive as we can be with our checkoff dollars," Thomas stressed. The foundation of the campaign is still the "Beef. It’s What’s for Dinner" advertisements. However, the Beef Board in partnership with state beef councils plans to enhance the Taste of America summer grilling promotion now going into its third year. Three flights of "enjoyment" television ads featuring the "Beef. It’s What’s for Dinner" ads have just completed. Enjoyment print ads are running year-round as well, Thomas noted. "We’re reaching about 90 percent of our target adult audience 11 times with these print ads," Thomas estimated. The print campaign for nutrition, which compares lean beef directly to a boneless, skinless chicken breast, has also been in place for a year. Some 62 percent of the target audience, Thomas said, is being reached about four times with these ads. "We have reason to believe that ad is really moving the needle on the nutrition message," he commented. The plan for the summer grilling campaign is to focus on the 100th anniversary of the hamburger. The campaign includes television, print and radio advertising. State beef councils will participate with point of sale material in retail stores. "We’re also very aggressively using the ‘Beef. It’s What’s for Dinner’ website (www.BeefItsWhatsForDinner.com). We’re starting a new daily dinner bell that’s tied to that website, where consumers can go on a daily basis to get menu ideas. It’s particularly targeted to those consumers who have no idea what to prepare at four o’clock. "The new cheeseburger fries also will be demo-ed in over 700 Wal-Marts. There will be radio ads in over 40 markets. These ads will be tagged to retailers," Thomas continued. "We’re also partnering again with ‘This Old House’ and Beringer Wines. Beringer Wines will have a coupon for beef on almost a million bottles of wine." Another part of the campaign includes a partnership with A-1 steak sauce. "Last year we were able to attract over $4 million of non-checkoff dollars from partners to really enhance our summer grilling program," Thomas said. "We have every reason to believe this summer will be no different." The Flat Iron Steak will be featured in 48 states in more than 200 hotels and McDonald’s has plans for a national rollout in May of their new Fiesta salad featuring ground beef. Beef promoters are working with Sutter Home on the "Build a Better Burger" contest, and with Borden Cheese to boost ground beef sales. The beef operating committee recently approved an additional $2 million expenditure for national radio spots which will be featured during the three summer holidays — Memorial Day, Independence Day and Labor Day. There will also be print ads in USA Weekend and Parade. Increased funding for the summer grilling campaign, which has yet to be approved by USDA, is coming from other already approved sources, primarily funding that would have been spent for promotion in foreign markets. "We thought it would make more sense to shift some of those dollars to move product domestically rather than continue the same pace of promotion in countries where we can’t ship beef right now," commented Monte Reese, chief operating officer for the Beef Board. Reese also commented on the latest in the checkoff court appeals. A three-judge panel from the Ninth Circuit Court of Appeals heard oral arguments by the Charter family and lawyers for the Center for Individual Freedom recently week in Seattle. The checkoff, Reese said, was upheld in the lower court within the ninth circuit, using the same trial record as in the Livestock Marketing Association case in South Dakota, where the ruling went against the checkoff. "We have two opposite rulings in two different federal courts in two different appeal circuits," Reese explained. "The LMA appeal has been petitioned to the Supreme Court. It’s difficult to predict when or which decision will come first. I see two scenarios potentially coming out. We could get a decision from the Supreme Court to hear the case and we do expect them to hear it. That could come before the Ninth Circuit Court of Appeals issues a ruling. If that happens, then it is likely that the Ninth Circuit wouldn’t issue a ruling but would wait for the decision from the Supreme Court. "On the other hand, if the Ninth Circuit rules and rules in favor of the checkoff, then the Supreme Court has a stronger incentive to hear the case," he noted. "And, we anticipate that this will be heard by the Supreme Court." LMA, Reese noted, was given until April 19 to reply to the petition of the Supreme Court. "We hope to hear from the Supreme Court by the end of May, and the lawyers are projecting early 2005, maybe January or February, before we have a final ruling." Thomas concluded by reminding listeners that consumer demand remains at an all-time high. "We will do everything we can with checkoff dollars to maintain that. The bottom line is to continue moving product through the marketplace at retail and food service, at a price point that provides an opportunity for profit for producers." |
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