Case for Beefy Burt's about the horse meat scandal

1. BEEFY BURT’S
CASE HORSE MEAT SCANDAL
Jaakko Savolainen

2. BACKGROUND STORY
On the 16th of January 2013 a story broke out in UK that horse DNA was found
in a frozen beef burger product
Since then horse meat has been found from several food products e.g. ready
meals, meat balls and burger patties labelled as containing only beef

3. BACKGROUND STORY
On the 16th of January 2013 a story broke out in UK that horse DNA was found
in a frozen beef burger product
Since then horse meat has been found from several food products e.g. ready
meals, 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

4. SEVERE THREAT TO THE FUTURE
OF BEEFY BURT’S BUSINESS

5. MARKET SITUATION

6. MARKET SITUATION
£ 8,1 M
£ 6,1 M
0
5
10
2012 2013
£ M
Cumulative frozen beef category
sales (weeks 1-12)

7. £ 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. £ 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 sales
year-on-year % change (weeks 1-12)
MARKET SITUATION

9. £ 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 sales
year-on-year % change (weeks 1-12)
-30%
MARKET SITUATION

10. £13,7 M
£ 9,4 M
0
5
10
15
2012 2013
£ M
Cumulative frozen burger
category sales (weeks 1-12)
MARKET SITUATION

11. £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

12. -60
-50
-40
-30
-20
-10
0
10
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen burger category sales
year-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

13. -60
-50
-40
-30
-20
-10
0
10
1 2 3 4 5 6 7 8 9 10 11 12
%
week
Frozen burger category sales
year-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

14. CONSUMER RESPONSE

15. 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

16. 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

17. GAME IS NOT OVER YET

18. KEY INSIGHTS

19. KEY INSIGHTS
LACK OF TRUST

20. CATEGORY PROBLEM
LACK OF TRUST
KEY INSIGHTS

21. None of the retailers have been singled out as the culprit; all
have suffered a decrease in consumer trust
All retailers have suffered decreases in sales in certain food
categories
Surveys indicate that consumers’ attitudes toward the retailers
are shifting to positive
KEY INSIGHTS

22. SUGGESTIONS FOR BEEFY BURT’S

23. KNOW
• Complete supply chain and supplier audit
• Review of HACCP plan
SUGGESTIONS FOR BEEFY BURT’S

24. KNOW
SHOW
• Complete supply chain and supplier audit
• Review of HACCP plan
• Communication strategy
• Consumers
• Retail accounts
SUGGESTIONS FOR BEEFY BURT’S

25. 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

26. THERE ARE OPPORTUNITIES EVEN IN A CRISIS

27. Jaakko Savolainen
Thank you for your attention