Kiersten Hafer - A "Fresh" Perspective: Driving Key Cutout Sales

©2018 Clemens Food Group
A Fresh Pork Perspective
Kiersten Hafer
June 7, 2018

Nice to Meet You!
Introduction

• Established in 1895 by John C.
Clemens
• 6th generation, American,
family-owned company
• Business family-balanced leadership
across Senior Management, Board of
Directors and Clemens Family
Ownership Board (CFOB)
• Headquartered in Hatfield, PA
(30 miles NW of Philadelphia, PA)
More than 120 Years in Pork

We Are Committed To A Higher
Operating Standard™

The CFG Coldwater Facility:
Changing Pork Production

Production Facilities
– 3 Locations:
• Hatfield – processing
• Emmaus – further processing
• Coldwater – fresh processing
Family Farms
– CFG Family Farms
− Producer Partners
− Forefront of animal welfare
standards
− Conventional and NAE flows
PV Transport
– Live & Refrigerated
Transportation
– 200+ unit fleet, mechanical
and garage services
Farms Food Production Transport
PORK IS OUR CORE COMPETENCY
Agribusiness
We Provide Service And Brand Solutions
That Help Our Customers Grow

Our Brands

What’s Fresh in Pork

Pork Consumer Demographics
34% children
present in HH
38% Under $40k
33% Over $80K
69% Caucasian
16% 25-34
18% 35-44
21% 45-54
20% 55-64
21% 65+
SOUTH 44%
MIDWEST 24%
WEST 19%
NORTHEAST 13%
56%
Married

To Change our Pork Consumer We
Have to Change Our Thinking
Diversity/Ethnicity
Market to the Mass
4
1
2
1:1 Personalization
Segmentation & Targeting
3
UNIQUE

Source: Freshlook Data, CY 2015-2017 Latest 52 WE Feb 25, 2018
Total US Grocery Northeast Grocery
1.2%
V 8.7%
7.0%
0.4%
2.6%
1.8%
1.8%
1.5%
1.2%
2.6%
2015 2016 2017 L52 Wks L26 Wks
2.8%
4.2%
5.7%
3.7%
4.4%
5.4%
3.6%
4.6%
4.8%
6.0%
2015 2016 2017 L52 Wks L26 Wks
3 Year Pork Trend
• Pork Category in Total Grocery
• Pork Category Northeast Grocery
• Our Customers
• Our Brand

Despite Declines in Total Pork, Base Sales
Volume is Reversing Declining Trend
Total US Grocery Northeast Grocery
0.1%
V 2.4%
6.0%
2.3%
1.5%
4.0%
1.5%
4.1%
2.0%
3.2%
2015 2016 2017 L52 Wks L26 Wks
0.7%
4.5%
6.9%
2.7%
4.9%
2.2%
5.8%
2.5%
8.4%
2.9%
2015 2016 2017 L52 Wks L26 Wks
Base Sales
Source: IRI Freshlook Data, CY 2015-2017 Latest 52 WE Feb 25, 2018

Existing
In Line with the Category … The
Hatfield® Brand Was Aging Out

Macro/Micro Trends
Nielsen; Nielsen Global Health & Wellness Survey; 2015; Pg. 16
A VOICE FROM THE MEAT CONSUMER…
“For meat and chicken and produce, it’d be awesome to have
more information.
Like, just saying more than ‘100% grass-fed.’
What does that mean compared to something that isn’t?“
Jenny, 32
©2018 Clemens Food Group Source: 2017 & 2018 Power of Meat

Top 2
Consumer
Label
Desires:
Macro/Micro Trends
“Food companies aren’t interested in being
transparent. They’re interested in giving the
appearance of transparency.”
Kevin, 32
©2018 Clemens Food Group Source: 2017 & 2018 Power of Meat
A VOICE FROM THE MEAT CONSUMER…

We had a Story to Tell … But We Didn’t
Share Our Story with Consumers

Transparency & Switching
Label Insight Food Revolution Study; June 2016; Pg. 3,5
would switch to a
new brand if offered
full product
transparency

Transparency & Brand Loyalty
Would be
loyal for life
if provided
complete
transparency
Likely to more
loyal to a
brand that
offer
complete
transparency

Transparency Transcends Beyond Just Product
Purchase … to Increase Entire Portfolio
Purchases
81%
19%
because it offered greater transparency,
If you chose to switch to a
specific product from a new
brand
would you also try other
products from the new brand?

Millennial Moms are Leading this Charge
of 18-34 year old
women with
children said they
would pay more
for completely
transparent food
products
…compared with 73%of
among all respondents.
86%

Can Transparency Payoff?
$200 Billion
in spending power
Brands Need to be in Control,
Otherwise, Millennial Moms will
Research Online Themselves
Millennials represent

Existing
Crossroads: Change or Become Obsolete

Retell!
Our Brand Story

Retelling Our Story

The Hatfield® Brand has Staying
Power… Now it has Stopping Power!

Consumer/Shopper Permission

©2018 Clemens Food Group Source: Power of meat, 2018
To Protein Shoppers, Brands Mean
Better Quality and Consistency
CONSUMER PREFERENCE PROCESSEDFRESH
30% 44%
20% 15%
50% 42%
Manufacturer Brand
Private Label
No Brand Preference
from 74% from 63%

©2018 Clemens Food Group Source: Power of meat, 2018
To Protein Shoppers, Brands mean
Better Quality and Consistency
Better Quality
Better Value
Better Consistency
Confidence in Safety
Better Shelf Life
BRANDS ARE PERCEIVED TO HAVE:
Inclined to buy
Familiar Brands!

Refresh!

• Set looks dark
• Lacks visual appeal
• Hatfield dividers are present but blend
• Packaging and Product do not stand
out on shelf
• Claims are not visually communicated
on pack
Where We Were!

From Red to Relevant!

Pork is More than Just a Pricepoint!

are worth more than any other protein buyer?
$1644
$1381
$1245
$637
$535
$138
Annual bskt ring
Annual bskt ring
Annual bskt ring
Annual bskt ring
Annual bskt ring
Annual bskt ring
Source: Pork Board , InfoScout- 52 WE 12.31.17 (n=84,262)

VOICE OF THE CUSTOMER: Pork Section clearly
stand out. It’s colorful, fresh looking and eye
appealing. The customers love it.

VOICE OF THE CUSTOMER: The POS is inviting and clean. It
makes it easy for our customers to pick up on the
advantages of buying Hatfield pork.

VOICE OF THE CUSTOMER: All Natural stands out
and many customers were not aware the Hatfield
Fresh Pork was All Natural prior to the POS change.

VOICE OF THE CUSTOMER: Advantage
over our competition

Remind!
At Point of Purchase

Connecting In-store with Pre-Shopping Prep
CIRCULAR AD
Xxx
Xxx

Shopper Engagement at Point of Purchase
11 x 7 CASE CARD
CHANNEL STRIP
4 x 3 SHELF CLIP SIGN
ABOVE CASE SIGN

Rebuild Relevance!
For Fresh Pork!

Making Pork Relevant Again!
ONPACK USAGE STICKERS
Recipe
Videos
INSTORE TV
Ideas for
Inspiration

Rebuild Pork & Our Brand Relevance!

It’s a Journey …
We Don’t Have it All Figured Out …
But we
are Committed
to Growing the
Pork Category!

Kiersten Hafer - A "Fresh" Perspective: Driving Key Cutout Sales

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