Consumers

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What is Wagyu Beef

With its exceptional marbling, superior tenderness, and exquisite flavor it’s no wonder Wagyu is the pinnacle of beef and favored by consumers around the world.

Through careful genetic selection and feeding, Wagyu producers create an experience for beef connoisseurs unmatched by any other breed of beef. From executive chefs to the weekend barbecue fan, Wagyu beef offers a level of quality that can be enjoyed by everyone. With its proven health benefits, choosing Wagyu isn’t just a treat for your taste buds, it’s great for your heart as well.

Wagyu really does take red meat to a whole new level.

Learn About Wagyu

Consumers Prefer Wagyu Beef

Here's Why Consumers Are Turning to Wagyu Beef

Exceptional marbling and unique flavor are the keys

By Burt Rutherford

There’s beef. Then there’s Wagyu beef. And more and more discerning consumers are enjoying the unique and tasty dining experience that Wagyu beef brings to the table.

That’s because of Wagyu beef’s unique flavor profile and the exceptional marbling that the breed is known world-wide for, says Andy Pendergrass, CFO of R-C Ranch near Houston Texas. R-C Ranch is a farm-to-fork company selling Wagyu beef through its own retail outlet, e-commerce, grocery stores, and two large food service purveyors.

Demand for Wagyu beef, particularly in the past two years, has increased, Pendergrass says. “The first (reason) is that consumers instantly associate the name Wagyu with quality, and that’s a fair assumption on their part. The second is that it’s healthier. That’s something that consumers are becoming more aware of; they’re seeking out healthier options.”

The difference that Wagyu beef brings to the table are higher levels of oleic and conjugated linoleic fatty acids in the marbling, the flecks of fat interspersed in the meat. “The cattle have a uniquely different fatty acid profile,” says Dr. Dale Woerner, who holds the Cargill Endowed Professorship in Meat Science at Texas Tech University in Lubbock, Texas.

The higher levels of those two important fatty acids give Wagyu beef it’s unique flavor profile, Woerner says. Combining that with the fact that the marbling in Wagyu beef is not only more abundant but more evenly distributed and much finer in texture makes for a dining experience like no other.

“I think what distinctly sets Wagyu apart is flavor performance. There is no doubt that in each of our research studies that we have done involving Wagyu that they perform in a league of their own,” Woerner says.

Then there’s the trend toward healthy eating. While not new, the trend became even more important to many consumers as COVID kept people at home. “And the first place they go when they go down that (healthy) path is their diet. That’s one reason we think Wagyu has been really successful in the market over the past two years,” Pendergrass says.

Oleic and conjugated linoleic fatty acids are associated with a heart-healthy diet, especially when consumed along with other heart-healthy foods, Woerner says. “Adding more of those particular fatty acids across the total of your entire diet is beneficial. So, eating Wagyu beef in combination with olive oil, avocados or other foods that are naturally rich in oleic and conjugated linoleic acids is recommended,” he says.

The Appeal of Wagyu Beef

“We have two main customers,” Pendergrass says. “The first is the weekend warrior who wants the most amazing cut of beef he’s ever had. That’s the person who wants to be king of the pit and impress all his buddies when they come over for dinner.”

The other is the mom who wants only the best for her family. “She wants to know it’s healthy. She wants to know that it’s nutritious. And in our case, a lot of times she wants to know that it is produced the right way by someone she can put a face or name to as it pertains to the producer.”

Beyond its unique flavor profile is tenderness. Research at Washington State University with half-blood Wagyu-Angus and straight Angus looked at the effects of protein restriction in the dams during the last trimester. “Protein supplementation did not affect Slice Shear Force (SSF) in either breed. However, Wagyu-sired cattle had lower SSF than Angus-sired,” according to the research report published online in Science Direct.

“In conclusion, Wagyu-sired cattle had greater tenderness and marbling score compared to Angus-sired, which was associated with lower collagen cross-links,” according to the report.

“Even in the event that something was as tender, it definitely won’t have that really silky texture to it and that really good mouth feel that makes the steak eating experience so enjoyable,” Pendergrass points out. “We find that the juiciness of Wagyu creates a much better mouth feel.” That’s because of the finer, abundant marbling.

The amount and distribution of marbling are just part of the factors that affect tenderness. Genetics, management, and the aging process, among others, are important. And some beef cuts are inherently more tender than others. However, a carcass that has more marbling in its ribeye and thus a higher quality grade, on average, is more tender than a carcass with a lesser amount of marbling in its ribeye, Woerner says.

“I think we’ve all had a filet that was tender, but it was dry,” Pendergrass says. “Something can be very tender, but without the amount of marbling in it, it won’t have that really silky, buttery texture. And I think that’s a part of where all that extra marbling in Wagyu beef really excels in the dining experience.”

Wagyu Beef Ideally Suited to Meet Consumers’ Changing Expectations

To market effectively to consumers, know where they are and what they want

By Burt Rutherford

“Consumers want to be wowed because their expectations are high, and you guys have an amazing quality story that you’re known for.”

But what type of consumer is willing to pay for the quality and remarkable taste that Wagyu beef is known for? Wagyu enthusiasts attending the 2022 Shaping the Future conference of the American Wagyu Association (AWA) got an in-depth look at consumers and what motivates them from Maggie O’Quinn, new business development manager with Midan Marketing.

O’Quinn detailed five different consumer types that the meat-centric marketing firm has identified. The first are protein progressives. “Protein progressives skew younger,” she said, and the category is heavily populated by Gen Zs, those born after 1996.

“They are the most engaged group with red meats. They love protein. They love (Wagyu).” But they are also quick to leave if the marketing efforts miss the mark. “They really are dawn to the sexy, edgy marketing of the Beyonds and Impossibles, which disrupt us all,” she said.

That means beef producers must work hard to keep this group engaged. “They’re very, very adventurous eaters. They love trying new things and they’re willing to shell out more money to pay for a premium product.”

The next group are the family first food lovers. “These individuals are mainly moms. There are kids at home and her M.O. is, ‘I want to cook from scratch and the product has got to have a lot of claims.’ They’re looking on all the social platforms for more ways or inspiration to cook meat products from scratch.”

This group of foodies is willing to pay more for those claims, she said, such as the product is better for you, it’s better for the planet and my animals are well cared for.

The third group is what Midan Marketing calls aging traditionalists. “They have a little more chronological credibility, and they are voracious carnivores,” she said. “There’s going to be meat in the center of their plates.”

The fourth group is called convenience chasers, who tend to be more budget conscious. “This individual does not have time to waste. She’s in a hurry. She’s preparing food for her family, and she is going to shop for coupons. But if you make it easy to engage with her, she is going to be loyal to the bone.”

The last group are the wellness divas, who are least likely to include red meat in their diet. “She’s going to gravitate a lot toward fish and chicken. But the wellness diva, when she eats red meat, is going to have every play known to man,” with the climate-smart play being top of the list. “But the most thing is, she is very critical of what goes into her body,” O’Quinn told Wagyu enthusiasts.

O’Quinn asked the crowd which of the five consumer segments would be most willing to buy Wagyu beef? The protein progressives were a unanimous choice. But the other group generated some discussion.

Surprisingly, it’s not aging traditionalists. O’Quinn told the crowd that it’s convenience chasers. That segment has grown the most during and after the pandemic, “because it’s being driven by retail click-and-collect and online meat purchases.” Maybe she doesn’t have the money to spend on great beef, O’Quinn said, but encouraged Wagyu breeders to acknowledge the premiumization trend in beef sales.

The take-home message: “Don’t ever make the decision for your shopper. Because some shoppers, despite their income, are going to be willing to shell out the money for your product.”

But what about inflation? It’s real and it’s affecting buying decisions across the board. O’Quinn looked back at the 2008 recession for clues.

“What we learned is that the price-value relationship matters more than ever. So as long as you’re communicating that brand promise and the value that you guys do so well delivering, you are going to weather the storm.”

Looking at some numbers backs that up. “Consumers’ meat IQ actually went up in the pandemic,” she said. “Eighty-two percent of meals were cooked in-home during March 2022. Restaurants are open, but consumers are choosing to stay home. And that’s a really positive story for ya’ll.”

However, she challenged Wagyu breeders to not let up, asking what percentage of meat consumers see Wagyu as an indicator of quality? Surprisingly to those in the crowd, it’s 19%. That compares with 50% who recognize Prime as an indicator of quality. “And ya’ll are better than Prime,” she said.

“So, there’s your challenge. And this is your room to grow. There’s room to continue to educate shoppers. And here’s the thing—72% of consumers are buying beef for taste. And that is what you own.”

O’Quinn reminded Wagyu enthusiasts that 60% of American consumers trust farmers and ranchers. “In this day and age of polarization and lack of trust, consumers trust you. So lean into that trust and meet them where they are and tell your story.”

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