Beefy Burts
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BEEFY BURT’S CASE HORSE MEAT SCANDAL Jaakko Savolainen
Transcript of Beefy Burts
BEEFY BURT’S
CASE HORSE MEAT SCANDAL
Jaakko Savolainen
BACKGROUND STORY
On the 16th of January 2013 a story broke out in UK that horse DNA was foundin a frozen beef burger product
Since then horse meat has been found from several food products e.g. readymeals, meat balls and burger patties labelled as containing only beef
BACKGROUND STORY
On the 16th of January 2013 a story broke out in UK that horse DNA was foundin a frozen beef burger product
Since then horse meat has been found from several food products e.g. readymeals, meat balls and burger patties labelled as containing only beef
As a result of of these news the customers vanished resulting in a loss of
almost 1/2 of the frozen burger market and over 1/3 of the frozen beef market
SEVERE THREAT TO THE FUTURE OF BEEFY BURT’S BUSINESS
MARKET SITUATION
MARKET SITUATION
£ 8,1 M
£ 6,1 M
0
5
10
2012 2013
£ M
Cumulative frozen beef category sales (weeks 1-12)
£ 8,1 M
£ 6,1 M
0
5
10
2012 2013
£ M
Cumulative frozen beef category sales (weeks 1-12)
- 24,1%
MARKET SITUATION
£ 8,1 M
£ 6,1 M
0
5
10
2012 2013
£ M
Cumulative frozen beef category sales (weeks 1-12)
-40
-30
-20
-10
0
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen beef category salesyear-on-year % change (weeks 1-12)
MARKET SITUATION
£ 8,1 M
£ 6,1 M
0
5
10
2012 2013
£ M
Cumulative frozen beef category sales (weeks 1-12)
-40
-30
-20
-10
0
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen beef category salesyear-on-year % change (weeks 1-12)
-30%
MARKET SITUATION
£13,7 M
£ 9,4 M
0
5
10
15
2012 2013
£ M
Cumulative frozen burger category sales (weeks 1-12)
MARKET SITUATION
£13,7 M
£ 9,4 M
0
5
10
15
2012 2013
£ M
Cumulative frozen burger category sales (weeks 1-12)
-31,2%
MARKET SITUATION
-60
-50
-40
-30
-20
-10
0
10
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen burger category salesyear-on-year % change (weeks 1-12)
£13,7 M
£ 9,4 M
0
5
10
15
2012 2013
£ M
Cumulative frozen burger category sales (weeks 1-12)
MARKET SITUATION
-60
-50
-40
-30
-20
-10
0
10
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen burger category salesyear-on-year % change (weeks 1-12)
£13,7 M
£ 9,4 M
0
5
10
15
2012 2013
£ M
Cumulative frozen burger category sales (weeks 1-12)
-45%
MARKET SITUATION
CONSUMER RESPONSE
96 % of the consumers are aware of the horse meat scandal
76 % have expressed concern over the topic
66 % feel they have been misled by the labeling
CONSUMER RESPONSE
67 % are less willing to buy processed meat in the future
36 % of the frozen burger consumers have stopped buying the product
Those who still consume the product, buy it less frequently and buy less volume
CONSUMER RESPONSE
GAME IS NOT OVER YET
KEY INSIGHTS
KEY INSIGHTS
LACK OF TRUST
CATEGORY PROBLEM
LACK OF TRUST
KEY INSIGHTS
None of the retailers have been singled out as the culprit; allhave suffered a decrease in consumer trust
All retailers have suffered decreases in sales in certain food categories
Surveys indicate that consumers’ attitudes toward the retailersare shifting to positive
KEY INSIGHTS
SUGGESTIONS FOR BEEFY BURT’S
KNOW
• Complete supply chain and supplier audit• Review of HACCP plan
SUGGESTIONS FOR BEEFY BURT’S
KNOW
SHOW
• Complete supply chain and supplier audit• Review of HACCP plan
• Communication strategy• Consumers• Retail accounts
SUGGESTIONS FOR BEEFY BURT’S
KNOW
SHOW
GROW
• Complete supply chain and supplier audit• Review of HACCP plan
• Communication strategy• Consumers• Retail accounts
• Product development• New product development• Packaging development
SUGGESTIONS FOR BEEFY BURT’S
THERE ARE OPPORTUNITIES EVEN IN A CRISIS
Jaakko Savolainen
Thank you for your attention
