Retail Promotions Drive Middle East Beef Sales

USMEF recently conducted retail promotions for U.S. beef in Saudi Arabia, Egypt and the United Arab Emirates (UAE). Over a total of 32 promotional days, the slogan "U.S. Meat: Safe and Delicious" was spread among Arab consumers shopping at a dozen of the most popular retail outlets in these three key Middle East markets.

U.S. high-quality beef cuts were the primary focus of the promotions at Tamimi Markets - Safeway, a popular retail chain in Saudi Arabia. In Egypt, product sampling introduced U.S. beef livers to consumers in three of the country’s most popular retail chains: Mahmal Supermarket, Oscar Markets and Alfa Supermarkets. Customers who visited two Choithram Supermarkets in Dubai, UAE, enjoyed samples of U.S. processed beef products.

A customer in Saudi Arabia samples U.S. beef

Participating retailers noted an increase in U.S. beef sales as a direct result of the promotion. Stores in Egypt reported that sales grew in the range of 150 percent to 200 percent above pre-promotional periods. One week after the activity concluded, sales continued to be 80 percent to 94 percent above their typical pace. While the promotions were running in Saudi Arabia, an increase in sales ranging from 166 percent to 192 percent was reported. In the week following the promotion, sales remained 66 percent to 98 percent higher than normal. Sales in the UAE during promotional days surged within a range of 165 percent to 186 percent and stayed 41 percent to 50 percent higher in the week following the promotion.

USMEF promotions featured beef liver in Egypt (left) and processed beef products in Dubai

“It is very gratifying to see these retail promotions have such a positive impact on sales,” said John Brook, USMEF regional director for Europe, Russia and the Middle East. “The promotions were very well-timed and served as a perfect tool for informing Middle East retailers and their customers about the quality and versatility of U.S. beef.”

Through November 2009, beef plus beef variety meat exports to the Middle East totaled 90,038 metric tons (198.5 million pounds) valued at $134.1 million. While the total volume of exports to the Middle East is very comparable to the previous year, the product makeup has shifted significantly. Year-over-year muscle cut exports to the region have more than doubled in volume (to 21,775 metric tons or 48 million pounds) and increased 29 percent in value (to $66.8 million). As a result, muscle cuts made up 50 percent of the value of beef exports to the Middle East in 2009, compared to about 38 percent in 2008.