Foodservice Trends & American Lamb

Mary HumannA Presentation to the American Lamb Board and American Lamb Council

January 2017

What’s Hot in 2017 – Food Trends1. New cuts of meat2. Street-food inspired dishes3. Healthful kids meals4. Housemade charcuterie5. Sustainable seafood6. Ethnic-inspired breakfast items7. Housemade condiments8. Authentic ethnic cuisine9. Heirloom fruits and vegetables10. African flavors11. Ethnic spices12. Housemade sausage

Source: NRA/ACF Survey – Oct. 2016

What’s Hot in 2017 – Concept Trends1. Hyper-local sourcing2. Chef-driven fast casual concepts3. Natural ingredients/clean menus4. Environmental sustainability5. Locally sourced produce6. Locally sourced meat and seafood7. Food waste reduction8. Meal kits9. Simplicity/back-to-basics10. Nutrition

Source: NRA/ACF Survey – Oct. 2016

Lamb in Foodservice• An estimated 40 percent of

lamb (weight) is sold into foodservice

• Many consumers had first experience with lamb in restaurant

• Many consumers only eat lamb in restaurants

U & A – Lamb in Fine Dining/Hotels• 75% of fine dining operators/

hotels menu lamb• Growing use of lamb in

appetizers, sandwiches, soups and salads

• Common cuts Rack (56 percent)Shank (49 percent)Loin (29 percent)Shoulder (20 percent)Leg (18 percent)Ground/Sausage/Merguez (14 percent)

Source: Technomic Lamb Protein Assessment, June 2016

U & A - American Lamb vs. Imported (Unaided Response)

• American Lamb – Taste– Supporting local farmers– Quality– Texture

• Imported – Cost– Quality

Source: Technomic Lamb Protein Assessment, June 2016

U & A - American Lamb vs. Imported

Source: Technomic Lamb Protein assessment, June 2016

ATTRIBUTE Domestic Imported Both Neither

Is Fresher 80% 20% 16% 2%

Larger Rib Eye 65% 8% 18% 9%

Customers Prefer 64% 12% 15% 9%

Higher Meat to Bone Ratio 63% 8% 18% 9%

Sustainably Raised 62% 3% 31% 4%

Humanely Raised 61% 2% 32% 5%

Has Tender Texture 60% 10% 29% 1%

Offers Consistent Quality 59% 12% 27% 2%

Fair Value 59% 17% 21% 3%

Always Available 59% 13% 26% 2%

Lamb on the Menu Analysis• 1000 U.S. Innovators

(fine dining restaurants, onsite chef, average entrée price of $25) (Spring 2015)

• 4800 chain/regional chain and independents (May 2015 - April 2016)

Source:MenuTrends Datassential 2016

QSR Midscale (MDS) Casual (CAS) Fine Dine

Full Service Restaurants (FSR)

Fast Casual (FC)

Limited Service Restaurants (LSR)

Traditional Casual

Upper Casual

255,964 US units 117,590 US units 187,620 US units 14,142 US units62,799 US units

counter service with no wait staff; focus on speed and food often served on disposables

waiter service at a moderate price; often breakfast-focused, and generally no alcohol

waiter service at a higher price point than midscale, and often offering a full bar

high-end table service with chef-driven menu; most entrées priced $25 or higher

counter service with focus on higher quality, fresh ingredients, and customization

% U.S. Innovators Menuing Lamb• 64.3 percent of

fine dining operators have lamb on their menus

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

Lamb is typically menued as entrée…

Appetizer15.5%Entree

83.3%

Sides1.1%

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

But is experiencing sustained growth in less traditional formats…

Penetration of Lamb Appetizers:

15.5%

10 yr. trend:+173%

Penetration of Non-COP Lamb:

13.7%

10 yr. trend:+112%

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

0%

4%

8%

12%

16%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Entrée Lamb Cuts - Innovators

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

31.3%28.7%

9.4%9.4%

8.8%5.2%

4.7%4.5%

3.0%2.4%

2.1%2.1%

1.5%1.3%1.1%

0.7%0.7%

0.4%

Rack Of LambLamb Chop

Sausage/MerguezShank

LoinLeg

ShoulderBurger

Double CutT-Bone

Baby LambGround…

Lamb SirloinBelly

Lamb RibsKebobSaddle

Medallion

Entrée Lamb – Penetration by Origin

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

25.8%14.4%

6.4%1.7%

1.3%1.1%0.9%0.7%0.6%0.6%0.6%0.4%0.4%0.4%0.4%0.4%0.4%

8.4%5.8%

3.0%

Domestic LambColorado

Farm/Ranch SpecificDomestic/Local…

Anderson RanchAmericanCaliforniaSonoma

Shenandoah ValleyVermont

Watson RanchDixon

IndianaJamison Farms

MaineMarcho Farms

New MexicoImported Lamb

New ZealandAustralia

Lamb Menuing 11 Year Trend by Segment

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Casual: 26.0% +20%

Total US: 17.2% +12%

Midscale:17.0% -2%

QSR: 7.8% +19%

Penetration4-Year %

Change

Entrée Protein – Penetration Growth for Top Menued Proteins – Chains & Independents

Source: Lamb Menu Study for the American Lamb Board - MenuTrends Datassential 2016

TREND #1 – Mindful Menus

TREND #2 – Be Bold –Authentic Ethnic Cuisine

Expanded Interest in Ethnic Cuisines“Americans are more adventurous in their ethnic food choices. The % of consumers who have tried various ethnic cuisines at least once has increased significantly.” The strongest increases since 1999 are found in:

Mediterranean +38%Spanish +28%Caribbean +27%Middle Eastern +24%French +22%Thai +21%

– Global Palates, National Restaurant Association, 2015

Make it with Merguez

TREND #3 - Casualization

Lamb Pasta Dishes

Lamb for Brunch

Lamb Burgers and Sandwiches

Make Mine a Lamb Burger!

0%

1%

2%

3%

4%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Lamb burger penetration has increased every year since 2005. Menuing up 120% in last four years

Thank Ewe