Kim Essex - Being Transparent with the Consumer: The Language of Trust
Dakota Beef
1. The Dakota Beef Advantage
USDA Certified Organic Beef
Dennis Sirianni
Northeast Regional Manager
Dakota Beef
2. Organic Beef
What is it?
• Certified organic beef must meet U.S. Department of Agriculture (USDA) National
Organic Program requirements. The Organic Foods Production Act, effective
October 2002, sets USDA standards for all food labeled organic
http://www.ams.usda.gov/nop/FactSheets/ProdHandE.html
For beef, this means:
• Cattle must be fed 100 percent organic feed, but may be provided certain vitamin
and mineral supplements.
• Organically raised cattle may not be given hormones to promote growth or
antibiotics for any reason. However, if an animal is sick, the animal cannot be
denied treatment to ensure its health; any animal that is treated with antibiotics is
taken out of the National Organic Program
• All organically raised cattle must have access to pasture
• Organic beef must be certified through USDA’s Agricultural Marketing Service (AMS).
Cattle must be raised under organic management from the last third of gestation.
Production:
• Both grass-finished and grain-finished beef can qualify as organic as long as the
cattle are produced according to organic standards
3. The Big Picture
Secretary of Agriculture
USDA National Organic Program
Accredited Certifying Agents
Certified Operations
1980’s – Congress discusses organic standards
1990 – Organic Food Production Act
2002 – National Organic Program fully implemented
4. Our Company
Dakota Beef’s premium Organic products are
always pure, healthy and delicious, the way
Mother Nature intended. Our family-owned
business provides the highest quality and most
flavorful Certified Organic beef to consumers
concerned about their families’ health, the
humane treatment of livestock, and
environmentally-friendly farming.
5. The Dakota Beef Advantage
"Full of Flavor and Nothing Else”
Dakota Beef uses North American beef cattle
• No dairy cows in our program
• Long Term Supply of Organic Angus Calves
Our Cattle are Raised
All Dakota Beef cattle are grain finished on Organic Grass and
Contain Naturally
Higher Levels of Healthy
Omega 3 Fatty Acids
6. We're Cattlemen
Not Middlemen!
100% Vertically Integrated Company
Procurement
• Consistent Supply of Organic Cattle from Ranchers we Know
and Trust
• We own Our Organic Ranch (McEwen Ranch) in Oregon
• We Use Our own Organic Pasture Land in Oklahoma
• We own a majority of the U.S Certified Organic Cattle
• We own our USDA inspected and Certified Organic Processing
Facility in South Dakota
• Managed Under the Highest Standards for humane treatment
of livestock
Delivery:
• We can easily service large national accounts from our 33,000
sq foot state-of-the-art, Certified Organic Processing plant
7. Certified Organic Beef
More than a Promise
Agents of the United States Department of Agriculture
(USDA) verify and endorse that Dakota Beef cattle are:
•Born and raised humanely on Certified Organic pastures free
from chemical fertilizers, pesticides and herbicides for at least
three years
•Never EVER given any antibiotics or hormones
Without added hormones, our cattle develop gradually, in
accordance with nature’s schedule
•Fed only Certified Organic, strictly vegetarian diet completely
free of animal by-products, GMO’s, pesticides and herbicides
•Provided unrestricted outdoor access
•Treated humanely to reduce stress and maintain good health
8. The Organic Complex
Organic food and beverage
sales continue to grow at
phenomenal pace
The market is being driven by consumers,
manufacturers, nonprofits, government agencies,
and the media, all of which have a stake in the
success of environmentally sustainable products.
9. Organic Trends
• Intense media coverage of the obesity epidemic has
resulted in new dieting trends and a wave of health-
conscious consumers
• Consumers are concerned with hormones and pesticides in
food and perceive them as having a negative affect on
their families
• Consumers are choosing Organic because
They Believe That:
– Organic foods taste better
– Organic foods are higher quality
– Organic foods are better for them
– Organic foods are better for the environment
10. Organic Trends
Meat, Poultry and Seafood
“Organic Meat, Poultry, and Seafood is the Fastest
Growing Major Segment of the Organic Foods and
Beverages Industry”
• Organic meat, poultry, and seafood are very popular as
they are made from animals and fish that are not given
antibiotics, growth hormones, or synthetic feeds. Many
consumers perceive them to be safer and more nutritious
than conventional products. Unfortunately, demand
appears to be outweighing supply
• Stronger growth is expected for this segment of the industry
over the next few years. From 2008 to 2013, sales of
organic meat, fish, and poultry should increase by an
average of 23.3% per year, totaling $1.26 billion in 2013
Source; Sundale Research, 2009
11. Demographics
Channel
2007 2013
Index, 100 = Average
Gender:
Male 75 73
Female 125 127
Age Group:
Under 25 33 34
25-34 103 105
Driven by
35-44 121 124
Source; Sundale Research, 2009
Baby
Boomers 45-54 134 135
55-64 130 130
65 and Over 86 84
Region:
Northeast 118 120
Midwest 90 91
South 86 88
West 129 127
12. Organic Trends
“Baby Boomers, In Particular, Are Driving Organic
Food And Beverage Sales With Their High Incomes
And Preference For Fresh, Natural, And Organic
Ingredients.
These Consumers Are Also Passing Their Food
Preferences Down To Future Generations, Setting The
Stage For Long Term Growth In The Organic Foods
And Beverages Industry”
Source; Sundale Research, 2009
13. Channel
2007 2013
Index, 100 = Average
Total Family Income:
$15,000-$29,999 38 37
$30,000-$39,999 77 79
$40,000-$49,999 94 93
Demographics
$50,000-$69,999 115 117
$70,000-$79,999 131 132
$80,000-$99,999 186 188
$100,000 and Over 233 235
Race:
White 118 120
Asian 129 124
Empty Nesters
African American 53 53
Hispanic 90 95
Household Composition:
Husband and Wife 145 145
Husband and Wife with Children 142 144
Single Parent 54 55
Single 88 87
Source; Sundale Research, 2009
14. Organic Food Distribution
By Channel
2007 2008 2013
Channel % of Total % of Total % of Total
Natural Food / Specialty Stores 43 42 39
Grocery Stores 35 36 35
Mass Merchandiser/Club Stores 13 14 16
Farmer’s Markets & Co-Ops 6 6 6
Foodservice 2 1 2
Export 1 1 2
Total 100% 100% 100%
Source; Sundale Research, 2009
16. U.S. Organic Sales
2005-2013
Food & Beverage Sales
% of Total Food & Beverage Sales
Organic Food and Total Food and % Total
Beverage Sales Beverage Sales Organic Food
Year $ Millions $ Millions Sales
2005 13,900 613,784 2.3
2006 16,725 619,382 2.7
15.9%
2007 19,995 Increase 649,729 3.1
2008 23,175 665,651 3.5
2009 27,075 676,947 4.0
2010 32,250 709,624 4.5
2011 37,990 734,718 5.2
2012 44,400 749,939 5.9
2013 52,375 778,430 6.7
Source; Sundale Research, 2009
17. Competitive Advantage
Selling Organic Beef, You Will:
– Create a strategic point of differentiation
– Reduce Cross-Shopping
Keep the “Whole Food” customer in YOUR meat department
– Show strong support for your customers’ concerns
Build loyalty with the Early Adopter Organic Consumer
– Increase Your Average Basket Size
Higher Ring
– Improve profitability
Higher Margin and Penny Profit
– Proactively address consumer demand
18. Our Product Lines
Boxed Primal Cuts
Cut to your specifications in our own facility
NAMP #
Cut – Description
Ribeye, Bone-in Export Style 109E
Ribeye, Lip-on 1x1 112A
Shoulder Clod 114
Flatiron 114A
Boneless Chuck Roll 116A
Mock Tender 116B
Brisket, Deckle off 120
Outside Skirt 121C
Inside Skirt 121D All Products Shipped Fresh or Frozen
Boneless Short Ribs 123D
Beef Bones 134 Shelf Life (from production day)
Stew Meat 135A
Ground Beef – Bulk 85% lean 136-85 Portion and Primal Cuts – 28 Days
Lean Trim 136-80
Hanging Tenders 140 Ground Beef – 21 Days
Beef Round Peeled Knuckle 167A
Top Round (Inside) 169 Hot Dogs - 45 Days
Top Round, (Inside) Cap Off 169A
Outside Round (Flat) 171B
Eye of Round 171C
NY Strip Loin, Boneless 1x1 180
Top Sirloin Butt, Boneless 184
Beef Loin, Sirloin Flap 185A
Tri Tip 185C
Full Tenderloin 189A
Flank Steak 193
19. Our Product Lines
Case Ready Cuts Grass Fed
Grain
Finished
Cut/Description
Count
6 or 16 per SKU# UPC
Case
Ribeye, Boneless, 12 oz Steaks 6/16 1112A 856345001512
Flatiron Steak, 12 oz 6/16 1114A 856345001574
Chuck Roast, 3 lb 6 1115 856345001260
Skirt Steak, 12 oz Steaks 6/16 1121 856345001574
Cubed Stew Meat, 1 lb 8/24 1135 856345001154
NY Strip, 12 oz Steaks 6/16 1180 856345001611
Sirloin Steaks, 12 oz. Steaks 6/16 1184 856345001765
Tenderloin 8 oz. Filet Mignon 8/24 1189A 856345001819
Tri Tip Steak, 12 oz. Steaks 6/16 1185C 856345001222
Ground Beef, 1 lb. 85/15 8/24 136-1 856345001017
20. Organic & Glatt
Kosher 10 million
Americans
Live and Buy Kosher
What is Glatt Kosher?
For meat to be kosher, it must come from a kosher animal and be slaughtered in a
kosher way. For meat to be glatt kosher, in addition to the two above conditions, the
meat must also come from an animal with adhesion-free or smooth lungs.
The word glatt means smooth in Yiddish. In Jewish Law, the term glatt is used to refer to
the lungs of animals. If the lungs are found to be defect-free or smooth, the meat is
considered to be glatt kosher.
Wise Organic Kosher
•100% USDA Organic Dakota Beef
•Double Kosher Certified
David Elliot Farms Kosher
•Double Kosher Certified
•Locally Sourced Wholesome Cattle
The Seal of
The Hechsher of the Crown Heights
Orthodox Union
21. Dakota Beef Direct
and
Private Label
Full service, custom Private Label program
– Dakota Organic Beef will cut to your
specifications
• Retail Ready Steaks
• Hot Dogs
• Ground Beef
• Primal Cuts
– Full service graphic design and production of
your labeling
– Dakota Organic Beef can process, package
and ship direct to you!
22. Marketing Support
The majority of your customers are willing to
experiment with core “Gateway” items:
– Ground Beef
– Hot Dogs
– Seasonal Grilling Steaks
To encourage trial, Dakota Beef provides the following:
–Dakota Beef Demo Program
We will support our product by conducting in-store sampling "Food
In The Mouth Opens The Ears!"
–Meat Department Education
Dakota Beef will train your meat departments on Organic beef
–In-Store POS
Dakota Beef will supply you with branded case dividers, brochures
and in-store signage
23. USDA
Organic Certification
Dakota Beef Offers USDA Organic Certification
Services And Training For Your Meat Department:
– Get certified to handle all organic proteins
– Tremendous Value-Add for your customers
– Cut Dakota Beef Organic Primal cuts in-house for
that fresh, just-cut appearance in your meat case
– Dakota-branded butcher paper and foil stickers
for that premium product presentation
24. USDA On Site Inspection
Inspector Will:
• Physically Verify The Accuracy Of Certification Application
• Inspect Facilities
• Ask Questions Regarding
• Receiving
• Storage
• Handling
• Sanitation
• Displays
Retail Signage Must Comply With USDA National Organic Program
Displays Must Minimize The Potential For Commingling
25. Receiving
• Trailer inspected for cleanliness-absence of odors
• Temperature within desired range
• Organic pallets of product are separated from conventional
• Organic product is stacked above conventional produce
• Invoices identify each organic produce item as 100% organic
• Temperature is within desired range
• All shipped product displays the term 100% organic or organic
• All shipped product displays the name of the grower/packer
• All shipped product displays the accredited certifying agent
Quality Assurance
• Product vendors are on record as certified USDA organic suppliers
Organic Product
• All shipped product displays the accredited certifying agent
Storage
• Organic storage areas are marked
• Organic containers/cases display item information facing outward
Checklist
• Organic products are stored above or next to conventional produce
Cleaning
• Contact surfaces/utensils are cleaned prior to handling organic produce
• Only cleaning agents approved for organics are used
• All contact surfaces are cleaned according to a set schedule
Processing
• Organic product is prepared prior to conventional produce
• Organic product is not prepared with conventional produce
• Only utensils marked “organic” are used to prep organic products
Display
• Organics are displayed so they do not touch conventional product
• Organic product is not prepared with conventional product
• Materials are cleaned when organics replace conventional product on display
Labeling
• Labels differentiate organic from conventional product
• Packaged organic products carry the label “certified organic by”
• Signage displays “100% Organic,” or “Organic” for organic products
26. Record Keeping
Receiving
• Docs depicting date, type and amount
Storage
• Records indicating inventory
Handling & Processing
• Logs demonstrating cleaning and handling
Sales
• Reports verifying date, type and volume
