„Future of Meat Consumption“

AMA Marketing Strategies

Dr. Stephan Mikinovic

Content

• Impressions of Austria

• Facts & Figures of Austria

• Meat & Sausages

• AMA Quality Management

• Marketing Strategies

Impressions of Austria

Fleisch & Wurstwaren

Famous AustriansArnold Schwarzenegger Governor of California

Empress Elisabeth, „Sisi“

The sound of music

Wolfgang Amadeus MozartComposer (1756-1791)

Franz Joseph HaydnComposer (1732-1809)

Johann StraussComposer (1825-1899)

Vienna Boys Choir Joe ZawinulJazz musician (1932-2007)

Herbert von KarajanConductor (1908-1989)

Historical monumentsHochosterwitz Castle

Monastery of Melk

Schönbrunn Palace

Facts & Figures of Austria

„Green & clean“

High enviromental standards

Diverse landscapes - diverse products

Farming methods in harmony with man and nature

Austria...

GMO-free

Austria‘s Profile

The French have their delicacies, the Italians are fancy, the Scandinavian are reserved,...

and Austria‘s competitive advantage:N a t u r a l n e s s

Market research among European consumers:

Austria‘s ProfileLogo for campaigns abroad

origin pleasurequality freshness

Structure of Austrian agricultureSize of agricultural holding: 29 ha

Ø livestock/holding:20 cattle

9 cows38 pigs

Small and medium-sized farmsgreat importance of direct marketing

Strong competition within the EUinnovative products and marketing ideas

Consumer requirementsFreshness and qualityMeat crises safety and health The origin of the animals, breeding conditions and feeding practices are becoming more important

Food productionStringent food legislation(Codex Alimentarius Austriacus)

High percentage of organic farms (15 % by area)

Natural production methods (83 % of the agriculturalarea is comprised in the Austrian environmentalprogramme)

Food manufacture as a craft

Spending for food in European countries in 2006(percentage of net household income)

Poland

Slovakia

Hungary

Czech Republic

Italy

France

Belgium

Austria

Finland

EU 27

Germany

The Netherlands

Luxenburg

Great Britain

Irland

Spending for food: only 13 % of total expendituresMonthly budgets in the year 2005

Total: EUR 2.540,--

Cafés, restaurants

Education

Recreation, leisure

Communication

Transport

Health Furnishing

Clothing and shoes

DwellingDwelling

Alcoholic, beverages& tobacco

Food, non-alcoholicbeverages

Others

Average monthly budget for fresh productsin Austria in 2007

Total: EUR 127,8

sausage & ham

milk/yoghurt/butter

meat incl. poultry cheese

fresh fruit

fresh vegetable

ready meals

Durable fruit & vegetableeggs

potatoes

Per capita consumption of meat in Austriain the years 1959 to 2007

53,4

100,2

31,3

58,0

16,2

2,83

18,219,8

0,0

20,0

40,0

60,0

80,0

100,0

120,0

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Meat totalPorkBeef & vealPoultry

Q: Statitik Austria, Versorgungsbilanzen

Changes in shopping behaviour

17

6

8

42

51

53

48

26

41

44

29

38

31

29

47

11

14

7

3

38

4

2

5

2

beef

veal

pork

chicken

turkey

fish

more same amount less not at all

Question: Compared to 10 years ago, please tell me whether you buy more, the same or less of the followingproducts?

Quelle: RollAMA Motivanalyse Juni 08/ AMA MarketingAngaben in %, n=963 Fleischkäufer

PorkThe European per capita consumption of pork

kg/year

60,5

57,9

57,8

55,7

55,4

47,9

46,7

45,2

44,8

40,8

39,3

35,4

34,7

34,3

34,1

31,3

31,1

27,9

24,9

16,3

0 10 20 30 40 50 60 70

Spain

Austria

Denmark

Germany

Poland

Belgium/Luxemburg

Hungary

Portugal

Czech Republic

The Netherlands

Italy

Sw eden

France

Romania

Finland

Irland

Slovenia

Greece

United Kingdom

Bulgaria

Image of meat

40

575659

26

14

49

10

40

56

4653

4742

42

75

56

4346

7173

2427 26

6666

50

8175

62

42

72

57

low-priced

easy to cook

high quality of meat

good taste

can be prepared in many ways

healthy

low-fat

safe to consume

for special occasions

for the family

positive image

porkbeeffowl

Question: Which of the following criteria apply in your opinion to the varieties of pork, beef or poultry?

Quelle: RollAMA Motivanalyse Juni 08/ AMA Marketing Angaben in %, n=963 Fleischkäufer

CEOControlling EU/Public Procurement LawCorporate Communication

Product-Marketing

Dairy products

Meat / meat products, eggs & poultry

Fruit, vegetables & potatoesOrganic food

Market research

Fairs

Export marketing

Special projects

Marketing-Service

Meat / meat products

Farmers beef / pork

Fruit, vegetables, potatoes,eggs and poultry

Dairy products

Structure of AMA Marketing

Marketing-Management

Quality-Management

Marketing instruments and objectives

The Agrarmarkt Austria Marketing GesmbH. uses theinstruments of classical advertising, salespromotions and PR.

Its objectives include the raising of the awarenessof consumers for the importance of quality, freshness and the origin of agricultural products.

Marketing activities do not only focus on Austria, but also on other EU markets, above all on Germany, Italy, and the new Eastern European markets.

Meat & Sausages

Meat & Sausages

Kochpökelware (cooked pickled meat products)

Brühwürste (steamedsausage products)

Gebratenes (specially dried smoked meat products with a longstorage life)

Rohpökelware (raw pickled meat products, usually specially smokedand dried for a distinctive taste and a long life)

Raw sausage (sausages based on raw meat and also eaten raw)

Enormous diversity: more than 300 varieties

Meat & Sausages

Long tradition in meat production

Natural production methods on family farms

Agricultural Production

Efficient health standards for animals:No foot-and-mouth disease since 1981No cases of BSE

Quality assurance programs for livestock breeding

75% of cattle on farms with less than 50 animals

Leading within the EU in terms of technology and hygiene (strictly controlled by the Austrian authorities)

Strict veterinary regulations

Processing

80 meat processors in Austria, all of them meet EU requirements

Meat & Sausages

Quality assurance programs of AMA Marketing GesmbH

0

10

20

30

40

50

60

70

80

90

100

A I E F D B EL EU-15

S NL L FIN P DK UK IRL

Taste

Price

Quality/Freshness

High quality awarness in AustriaCriteria influencing the consumer behaviour

Quelle: L.Frewer, E.Risvik, H. Schifferstein (Eds.), Food, People and Society 2001, zitiert nach M. Lennernäs 1997

For which kind of food do you consider of quality seals most important?

Source: IGF / AMA Marketing, MTU 2007

7872

7070

5552

4646

4343

3934

2618

1416

1618

2324

3128

2930

2526

2515

46

68

141615

171918

2125

2721

12

32

445555

910

1217

234345444455

929

PoultryBeefPorkEggsMilk

SausagesCheesButter

Fresh fruitFresh vegetables

FruchtjoghurtPotatoes

Frozen VegetablesInstant meals

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

Veryimportant

important Lessimportant

Normallyimportant

Not at all important

Quality as decision-making aid

Quality seals in agricultural marketingAgrarmarkt Austria Marketing GesmbH. has developed various qualityassurance programs using different symbols to differentiate betweenthem.

The AMA Quality Seal indicates origin and quality. For the consumers it guarantees proof of origin, higher quality than required by law and independent monitoring.

The AMA Bio-label may only be used fororganically produced foods.

The „bos“ symbol stands for the beefidentification system guaranteeing continuoustraceability from birth of the animal to consumption.

41

95

41

95

37

91

30

90

spontaneous recall

supported recall

2008200720052004

Angaben in Prozent, n=1006 Befragte, rep. A

The level of awareness of the „AMA-Gütesiegel“ is on the increase

Quelle: IGF / AMA Marketing, MTU Februar/März 2008

Without presentation*)

With presentation +)

*) „Which quality seals for food do you know?“

+) „Have you seen this symbol before?“

AMA Quality Seal program for meat

35 - 40% market share of the total market of fresh labelled meat.

Integrated program for proof of origin and quality. Contracts with

8.148 farmers (as of September 2007)49 slaughter houses (as of September 2007)

Quality standards and independent quality monitoring for each step in the chain of distribution.

For beef, pork, turkey, lamb and other foodstuffs (milk, butter, cheese,...)

Source: AMA Marketing

Meat sold in self-service or at the service counter

The AMA Quality Seal

HIGH QUALITY

Proof of ORIGIN

INDEPENDENTINSPECTIONS

Requirementsfor the farmer signing the contract

No chemical performance boosters in the livestock feed (e.g. antibiotics)

Restricted origin (domestic animals only)

Mandatory membership of the animal health service(record of applied drugs, animal welfare, supervisingveterinary)

When applying drugs: waiting period 50 % longer than required by

law.

Source: AMA Marketing

Supervisoryinspections

Externalinspections

Self-monitoring

Commissioned by the licenser or carried out by AMA employees.

Commisioned by the licencee(agencies contracted by the AMA Marketing)

Inspection of the agencies of inspectors

Independent inspections / auditswithout piror notice

Implemented by the production manager in charge oreployees ordered to do so.

Internal quality management

Controlling

Marketing Strategies

AMA AMA -- strategystrategy forfor meatmeat marketingmarketing

Awarness of quality

Confidence and enjoyment

Market development

• Higher awarness of quality in livestock breedingthrough

• Specialisation and quality standards• Wider use of the AMA Bio-label and increase of

confidence in organic food• Increase of food safety and traceability• Further development of the commitment to quality• Communication about the quality advantage of food

with the AMA Quality Seal

Initiative for quality awarness

• Austria´s agriculture as part of the cultural tradition• Increase of the awarness that farmers preserve the

natural beauty of the landscape• Increase of the appreciation of high-quality domestic

agricultural products• Increase of the confidence in agricultural products by

informing on their incredients• Encourage to understand cooking as fun and pleasure

and to enjoy fresh meals from domestic products• Cooperation with the local gastronomy to prepare

traditional dishes with domestic products

Initiative for confidence and enjoyment

• Identification of market potentials, developmentof new sectors and niches

• Strategic cooperation with retail salescompanies

• Information within the EU on typical Austrianagricultural products an their outstanding quality

• Continued strengthening of the position of Austrian products within the European retailsale

Initiative for market development

Past: „Make live easier“Today: „Make live rich“

FOODFOOD

Pleasure Quality

Origin

Nutritional value, effect

Freshness

Authenticity

SubstainabilityHealth

Preparation

AMA Marketing ActivitiesMeat and Meat products

TV-Commercials

Advertorials

Quality initiative

Geschalten in div. Medien: Krone Bunt, Kurier Freizeit, Die Presse, Österreich, insgesamt 15x 1/1

Quality assessment of Austrian food

8385

89 8885 85 85 85 85 84

86

72

84 84

80

8482

86

7982

77

84

55

7780

7577

7375

73

7774

78

55

65

6967 67 67 68 69

7472

75

64 65

7067

62

68 6866 66 66

71

40

50

60

70

80

90

100

1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007

milk, butterbeefporkfowlfruits

„particulary high quality“

AMA Marketing ActivitiesMeat and Meat products

AMA Marketing ActivitiesMeat and Meat products

Campaign „Fleisch bringt‘s“Campaign „2 % Fat – 100 % Enjoyment“

New TV-Spot144x ORF + 756x Privatsender, 27.1.-22.2.2009

Beef

Pork

Poultry

New TV-SpotORF, 9.-28.9.2008, 54x

Beef

Pork

Poultry

AMA-Grillclub(Barbecue club)

Intention: Better results of barbecues

Cookbooks

200.000 pieces400.000 pieces

Cooking withbeef

Cooking withpork

BookletsReprints and new editions of various meat booklets

2008: 1,6 Mio. pieces

BookletsReprints and new editions of various booklets about meat and eggs

2008: 1,6 Mio. pieces

Thank you for yourattention!