Pork in the Food Service Industry - Mr. Stephen Gerike, National Pork Board, from the 2017 North American PRRS/National Swine Improvement Federation Joint Meeting, December 1‐3, 2017, Chicago, Illinois, USA. More presentations at http://www.swinecast.com/2017-north-american-prrs-nsif-joint-meeting

1. Pork’s Role in Foodservice
Stephen E. Gerike
Assistant Vice President – Channel Marketing
December 1, 2017

2. Pork in Foodservice
• The Statistics
• Delivering Culinary Inspiration
• Driving Demand
• Ensuring Continued Success

3. Pork in Foodservice Statistics

4. Pork is the Fastest Growing Protein
Since 2011
Over the past six years, pork has grown on a pound basis by
more than double the next fastest-growing protein
Source: NPB Volumetric Assessment of Pork in Foodservice, 2017

5. Foodservice Pork Market Growth
The total foodservice pork market growth has slowed between 2015 and 2017 from recent historic rates.
• The slowed growth can be attributed to declining beef prices, a major competitor of fresh pork, as
well as softness within the chain casual dining market.
5
5,171
5,479
5,820
5,934
2011 2013 2015 2017
2.9% 2.7%* 0.8%*
= 2 YR Compounded annual growth rate.
* = New categories added in 2015 and 2017 not included in growth calculation, but are included in pound totals shown.
MM lbs
Source: Technomic

6. Foodservice Pork Market Size
6
Source: Technomic
20%
16%
12%
11%
7%
34%
Bacon 1,202 MM lbs Ham (processed) 939 MM lbs Breakfast sausage 714 MM lbs
Ribs 651 MM lbs Pepperoni 414 MM lbs All Other Pork 2,014 MM lbs
Total 2017
5,934 MM lbs

7. Pork usage by daypart
Pork pound share of daypart volume All foodservice share of daypart sales
14%
36%
41%
9%
2017
28%
35%
33%
4%
Breakfast Lunch Dinner Snack
Source: Technomic
7
28%
36%
32%
4%
20172015

8. Pork Products and Representative Pounds
8
71
81
111
113
120
135
156
158
171
285
313
414
441
651
714
939
1202
Ingredient…
Carnitas meat
Canadian…
Tenderloin
Pulled pork
Pizza toppings
Pulled pork…
Breakfast…
Bacon
1
1
2
4
9
14
15
16
18
22
23
24
26
30
33
64
Heads/masks
Skin/Chicharron
Hocks/shanks
Whole hog
Cutlet
Breaded/flaked/formed pork
Ground pork
Bratwurst
2017 MM lbs
2015-2017 CAGR
-4%
=
-10%
+2%
+4%
-4%
+21%
-7%
-2%
New in ‘17
+8%
-10%
+15%
New in ‘17
New in ‘17
New in ‘17
+4%
-1%
+4%
-2%
+ <1%
-2%
+1%
-4%
=
-1%
=
+3%
-1
+5%
=
+5%
- <1%
Pulled pork (aggregate) = carnitas, pulled pork, shoulder/butt
Specialty Sausage = Polish, Italian, Chorizo, Dinner
Italian Specialties = Capocollo, mortadella
Source: Technomic

9. Operator Volume Segmentation of Pork
• Limited service and full service
restaurants represent the largest user
groups of pork in foodservice
• LSRs slightly over-index in the volume
compared to their all commodity value.
• An opportunity area appears to be
within c-stores and supermarket
foodservice, where pork’s volume is
underpenetrated compared to all
commodity value.
9
Segment
2017 Volume
% ACV*
MM lbs %
Limited Service Restaurants 2,198 37% 33%
Full Service Restaurants 1,803 30% 30%
Lodging 464 8% 5%
Colleges 298 5% 3%
Healthcare 290 5% 6%
Recreation (including cruise lines) 227 4% 3%
B&I 194 3% 3%
Schools 155 3% 5%
Supermarket foodservice 131 2% 7%
Other retailers 89 1% 2%
C-Stores 85 1% 4%
Total 5,934 100% 100%
Numbers may not add due to rounding.
*All commodity value = share of total purchases of foodservice products.
Source: TechnomicSource: Technomic

10. Bacon Bigger Than Ever
Bacon shows no signs of slowing. Of total foodservice
pork volume in 2017 (5.934 billion pounds), bacon is 20%
- up 4% since 2015.

11. Delivering Culinary Inspiration

12. Consumers Love Pork at Restaurants
12
82%
Are eating as much or
more Pork from
restaurants versus a year ago
Source:TechnomicCenterofthePlateTrendReport,2017
Porkeaters,eatingporkasmuchormoreoften

13. 40% want Pork dishes with ethnic
flavors and ingredients (up 6 points since 2015)
41% want to try Pork made with new,
unique flavors (up 5 points since 2015)
Source: Technomic Center of the Plate Trend Report, 2017, Pork eaters, top two box, six point scale
ConsumersContinuetoWant AdventurousFlavors

14. “If you’re looking for a trendy pork dish to
add to the menu, you’ll certainly be up to
the minute if you dabble in carnitas.”
National Culinary Review, September 2016
Pork isonTrendandAuthentictoGlobal Cuisines

15. Pork is Popularand Chains Love Its Versatility
Source: NPB Foodservice Benchmarking Study 2016
“Pork is very versatile. We can use a variety of cooking
methods and it pairs well with many types of flavors.”
– Casual Dining Restaurant Operator
“Sales of pork dishes have increased for us year over year. Our
LTO with pork was the top selling item in that category.”
– Fast Casual Operator
15

16. Our Strategy is to Deliver Inspiration
• We work with Chefs and industry partners to
identify trends and tell their story through a pork
lens
• Through are trend mapping we are able to deliver
on consumer and operator demands

17. Trend Mapping
We track trends closely throughout the trends path, from foodservice
and through mainstream grocery
Inception Ubiquity
17
1
• Fine Dining
• Independent
Restaurants
• Ethnic
• Food Trucks
2
• Industry/Gourmet
Food Media
• Specialty Retail
3
• Mainstream
Women’s
Magazines
• Recipe Websites
4
• Full-Service Chain
Restaurants
• Food TV
5
• QSR Menus
• Mainstream
Grocery

18. How Trend Mapping Works in Practice
19.5%
20.0%
19.9%
20.2%
20.1%
20.4% 20.4%
20.9%
21.1%
21.9%
22.1%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
22.1% menu
penetration
menu growth rate
MEXICAN CUISINE MENU PENETRATION % of US restaurant menus
that feature
1 YEAR
+1%
4 YEAR
+8%
SINCE 2007
+13%
Source:DatassentialMenuTrends18

19. Tacos on Mainstream Menus
19.2% 19.2% 19.4% 19.8%
20.9%
21.7% 22.1%
23.1%
23.9%
25.1% 25.5%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TACOS MENU PENETRATION % of US restaurant menus
that feature
19 Source:DatassentialMenuTrends
25.5% menu
penetration
menu growth rate
1 YEAR
+1%
4 YEAR
+15%
SINCE 2007
+32%

20. Carnitas Across Menus
CARNITAS MENU PENETRATION % of US restaurant menus
that feature
5.7%
5.9% 5.8% 5.9% 6.0%
6.2% 6.2%
6.5%
6.9%
7.2%
7.4%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
20 Source:DatassentialMenuTrends
7.4% menu
penetration
menu growth rate
1 YEAR
+2%
4 YEAR
+18%
SINCE 2007
+30%

21. Sonora
Baja
Oaxaca
Yucatán
Michoacán
Central Mexico
Regional Mexican is the New Trend

22. Pork’s Authenticity Goes Beyond Tacos
• Regional Mexican Cuisine Dishes Featuring Pork
– Cochinita Pibil (Yucatán)
– Authentic Carnitas (Michoacán)
– Tortas and Cemitas (Central Mexico)
– Moles (Oaxaca)
– Carne Adovada (Baja)
– Parilladas or Authentic Fajitas (Sonora)

24. Other Emerging Trends We’ve Identified
• Specialty, Premium and Regional Hams
• Tronchetto di’ Porchetta
• Pork Buns (Bao) and Dumplings
• High-quality Roast Pork Loin
•Korean Barbecue
•Tonkatsu – Japanese beyond ramen

25. Driving Demand

26. • Increase awareness
• Increase frequency of purchase
• Shift demand curve
• Increase composite pricing
for ham and loin
NPBImpactingDemand

27. TheTasteofNow

28. 28
TheTasteofNow
NOW Is On-trend
NOW Is Any Season
NOW Is Any Time
NOW Is Every Occasion
NOW Is Your Chance To Do More

29. 29
TheResult
Bigger, Bolder,
Better Than Ever

30. CommunicatingThrough
• Integrated Events
• Pork-A-Palooza Part 2 James Beard
House Dinner
• 2017 Pork Crawl
• Print and Digital Advertising
• UNCUT and Make it Like this Chef Videos
• Website Takeovers

31. Ensuring Continued Success

32. 32
NPBIs Focusedon ThreeKeyInitiatives
1) Temperature
2) Nomenclature
3) Quality
Together they ensure a consistent,
delicious eating experience…every time

33. Doneness Range Enables Consumer
33
For the best eating experience
we recommends cooking pork
loin cuts to 145∘F
We are spreading the word on
end-point cooking temperature
160∘
145∘
150∘
155∘

34. 34
“Just try pork medium. It’s not going
to kill you and it will actually make
your life better.”
Nick Solares, The Meat Show, Eater, March 2017
Cookingto145∘FAddsMore Flavor

35. Nomenclature Initiative Delivers Value to Operators
35
The Pork Nomenclature Initiative
Captures Value While Leveraging
Consumer Knowledge
We conducted extensive research to
confirm that people are confused by
the fact that different names are often
used for similar cuts of meat
Collaboration across the meat industry
resulted in the introduction of new,
more consumer-friendly names in the
North American Meat Institute Meat
Buyer’s Guide

36. Pork Quality is About Consistency
36
We are working with the USDA-AMS to
revise the pork grade standards
The revised standards should reflect
the tenderness, marbling and color that
chefs and consumers are looking for
Updated standards will also make it
easier for consumers to buy pork
based on their preferences, and drive
more value from the pork loin

37. This message funded by America’s Pork Producers
Thank You