IN MARKET GROWING DEMAND MIDDLE EAST AND NORTH NORTH AMERICA CHINA AFRICA (MENA) MLA Business Development Manager – MLA Country Manager – MLA Regional Manager – North America, Catherine Golding Greater China, Joe Zhu MENA, Nick Meara The economics of the pandemic have As China was the first to experience Ramadan is usually a high-consumption had a massive impact on consumer COVID-19, many countries have been period for red meat. confidence in North America and eagerly watching to see how China’s This year, with Ramadan falling in the it’s likely spending will be affected retail and foodservice channels recover. middle of the COVID-19 pandemic, the for the next year or more after the COVID-19 battered Chinese Muslim community adapted to feasting pandemic subsides. foodservice – an industry which at home rather than in restaurants and However, there is good news for red represents more than half of beef hotels. However, red meat was still on meat as it has remained centre of plate, consumption in China. All restaurants the menu as iftars (the evening meal although with lower value cuts. were closed during the Chinese New after fasting) went ahead with families The cut mix has changed and we’re Year holiday and they remained closed cooking at home, using larger cuts seeing higher demand for mince until late March. such as lamb shoulders and legs for products, which are more familiar As government lifted restrictions on slow cooking. and easy to cook. foodservice, the recovery process has Where possible, the majority of red Prime cuts like lamb rack and beef seemed slower than expected, with meat destined for foodservice was tenderloins – which are traditionally most venues still operating at 50–70% redirected into the retail channel, but foodservice fare – are now finding of their pre-COVID-19 level. Consumers not all red meat cuts are acceptable a different home with suppliers have needed time to build trust. in retail. pivoting their offering through Chinese consumers have shunned High-end cuts such as Wagyu cube retail and also direct to consumers wet markets, so big retailers and rolls with a marble score six and over, through e-commerce. e-commerce delivery platforms have usually served in high-end restaurants, Interestingly, more than half of North experienced huge growth, ranging from just won’t sell in retail and we expect a American consumers purchased meat 100 to 400%. Fortunately, Australian downturn in sales. online during the pandemic and 26% red meat is skewed more towards the We’ve adapted our marketing activities of consumers say their primary way to bigger retailers and has therefore been to continue driving demand for red buy meat after COVID-19 will be online less affected by COVID-19. meat in MENA. (Midan, 2020). MLA research reported that, during The good news is, we’ve already been MLA has adjusted marketing activities the peak of the pandemic, more than working hard these past few years in North America to ensure the 30% of affluent Chinese consumers building our online presence. messaging of the ‘Simply Spring’ were eating more beef and less poultry, consumer campaign remains relevant. pork and fish. We’ve got strong foundations Chinese consumers were in place to continue talking to Our retail activities are now shopping more regularly, buying consumers about red meat via focused online with tactics more product and favouring social media. which drive awareness and Australian red meat – the We adapted the messaging to provide direct click-to-cart purchasing through shoppable recipe ads, provenance value was clearly more content, such as tips and tricks for more important than ever. ■ storing and thawing red meat, as well as personalised videos and chat recipe ideas for cooking at home. bots directing consumers to China shop where True Aussie red china@mla.com.au Middle East and North Africa meat is sold. mena@mla.com.au North America info@mlana.com 45