Tuesday, September 24, 2024

Attribute-based food choices bring new opportunities

Neal Wallace
US consumers place real value on the environmental and personal health characteristics of their food, SFF’s man in LA learns.
Reading Time: 2 minutes

The endorsement was timely and reassuring for Brook Leeder.

Leeder, wife Rachel and their two young children had recently arrived in Los Angeles from Dunedin after Brook was appointed market development manager for Silver Fern Farms (SFF).

He was meeting the parents of friends his children had made at school when the conversation drifted to jobs.

Their response when he told them his role took him by surprise.

The day before, the school parents told the Leeders, they had decided to start looking at which foods were healthier for them and their family and better for the environment – exactly SFF’s target demographic.

Leeder said it is something he has since heard many times since moving from New Zealand to the United States last November, as consumers start placing real value on product attributes.

“These concerns are real,” he said.

“US consumers are driven by attribute-based claims. They are willing to pay more for attribute-based products and are constantly looking for products that are healthier for them and benefit the environment.”

Leeder is one of five SFF staff in the US – three on the west coast and two on the east coast, and he said having an in-market presence is critical.

“It is critical to build direct relationships with end customers to unlock extra value and to truly understand what consumers and customers want and need.”

It’s competitive.

An increasing number of companies are producing branded red meat products when supermarkets are providing limited shelf space compared to other proteins.

Restaurants are equally competitive.

Leeder’s focus is beef and venison as The Lamb Company, owned by SFF, Alliance and ANZCO, handles lamb sales and distribution throughout the US and Canada.

Getting a foot in the door of new customers increasingly requires innovation as previous tactics of sending emails seeking meetings and cold calling are often lost in the mass of similar approaches.

Out recently with his family having a meal at a large restaurant chain, Leeder spontaneously decided to approach the chain to see if they would be interested in working with SFF.

He sent a message via LinkedIn and 30 minutes later had secured a meeting.

Converting such invitations to tangible business takes time and Leeder said they are still in negotiations.

Such approaches seeking new business fail more often than they succeed.

In NZ’s favour is the fact that our meat is grass fed and hormone and antibiotic free.

With a population of more than 40 million, Leeder said, California offers enormous potential, but so does the rest of the US.

The key is to focus on the few most promising leads at one time and slowly build trust and integrity, but he said there are opportunities being converted into new business and adding real value.

“It isn’t a quick game but there are new opportunities in the wind.

“There is significant value to be had when considering direct relationships we are building with end users.”

Leeder said one of their ultimate challenges is to add value to as many parts of the carcase as possible, so the overall value of the animal increases.

More: Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.  Read more about his findings here.

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