1 00:00:00,360 --> 00:00:02,280 Speaker 1: Jennifer. Hard to believe it, but Thanksgiving is less than 2 00:00:02,279 --> 00:00:04,000 Speaker 1: two weeks. Await are you gonna be here for Thanksgiving? 3 00:00:04,080 --> 00:00:06,320 Speaker 2: I am yeah, and I'm not doing any cooking. 4 00:00:06,440 --> 00:00:08,280 Speaker 1: I was just gonna ask you knew he knew where 5 00:00:08,280 --> 00:00:11,200 Speaker 1: I was going. We're gonna go visit our in laws 6 00:00:11,360 --> 00:00:13,840 Speaker 1: in Uh where am I going? I'm going to Cincinnati. 7 00:00:14,200 --> 00:00:15,280 Speaker 2: I'm going to Connecticut. 8 00:00:15,360 --> 00:00:17,360 Speaker 1: Oh okay, well you get to drive. I have to fly, 9 00:00:17,560 --> 00:00:20,360 Speaker 1: so yeah, I kind of envy that it's the worst 10 00:00:20,360 --> 00:00:21,079 Speaker 1: time of year to fly. 11 00:00:22,040 --> 00:00:22,360 Speaker 3: Okay. 12 00:00:22,360 --> 00:00:24,720 Speaker 1: So these figures that I'm going to cite right now 13 00:00:24,720 --> 00:00:28,600 Speaker 1: are dated because did you know that on Friday? Every Friday, 14 00:00:28,600 --> 00:00:31,720 Speaker 1: the USDA comes out with a turkey National Retail Report. 15 00:00:32,200 --> 00:00:36,080 Speaker 1: And when I did the research for this segment, the 16 00:00:36,200 --> 00:00:39,600 Speaker 1: retail report I was looking at was from Friday, November three, 17 00:00:40,240 --> 00:00:43,159 Speaker 1: and it showed no change in the price of a 18 00:00:43,440 --> 00:00:46,960 Speaker 1: turkey between last year and this year. And then I 19 00:00:47,000 --> 00:00:48,479 Speaker 1: pull it up again right now, and now I have 20 00:00:48,520 --> 00:00:51,519 Speaker 1: the November tenth one up, and it shows that we 21 00:00:51,600 --> 00:00:55,319 Speaker 1: actually are seeing turkeys a little bit more expensive this 22 00:00:55,400 --> 00:00:56,320 Speaker 1: year than last year. 23 00:00:56,480 --> 00:01:00,160 Speaker 2: Interesting. I thought there was a glut. That's something I 24 00:01:00,200 --> 00:01:00,880 Speaker 2: had heard. 25 00:01:00,680 --> 00:01:03,480 Speaker 1: But I know someone now, I know someone who has 26 00:01:03,640 --> 00:01:07,360 Speaker 1: been talking turkey for more than twenty years. We love 27 00:01:07,360 --> 00:01:09,000 Speaker 1: having him join the show because it's kind of a 28 00:01:09,000 --> 00:01:11,720 Speaker 1: Thanksgiving tradition to check in with him. The CEO of 29 00:01:11,760 --> 00:01:15,399 Speaker 1: the turkey company Butterball, Jay Jandrin, is with us right now. 30 00:01:15,400 --> 00:01:17,920 Speaker 1: He joins us on Zoom from Butterball headquarters in Garner, 31 00:01:18,200 --> 00:01:20,520 Speaker 1: North Carolina. So Jay, good to have you back with us. 32 00:01:20,560 --> 00:01:24,240 Speaker 1: What are we getting wrong when it comes to the 33 00:01:24,240 --> 00:01:26,640 Speaker 1: way we're looking at these turkey prices that come from 34 00:01:26,680 --> 00:01:27,720 Speaker 1: the USDA here. 35 00:01:28,720 --> 00:01:31,319 Speaker 3: Well, we really have to get through the entire holiday 36 00:01:31,800 --> 00:01:34,640 Speaker 3: selling season to get a true picture of that. And 37 00:01:34,680 --> 00:01:37,320 Speaker 3: the reason for that is you've got a lot of 38 00:01:37,319 --> 00:01:40,800 Speaker 3: heavy discounting and feature activity from the retailers during the holiday. 39 00:01:41,040 --> 00:01:43,040 Speaker 3: So it's really a matter of timing exactly when we 40 00:01:43,120 --> 00:01:45,400 Speaker 3: pull up the data and once you get through the 41 00:01:45,520 --> 00:01:47,880 Speaker 3: entire holidays so you see exactly what's sold in what 42 00:01:48,000 --> 00:01:51,120 Speaker 3: prices to get a real accurate picture. But overall you 43 00:01:51,200 --> 00:01:52,920 Speaker 3: seek pricing, it's going to be about the same as 44 00:01:52,920 --> 00:01:53,720 Speaker 3: it was last year. 45 00:01:53,800 --> 00:01:56,880 Speaker 1: How closely do you follow these reports from the USDA? 46 00:01:58,360 --> 00:02:00,240 Speaker 3: We do pay attention to those, of course, those are 47 00:02:00,320 --> 00:02:02,840 Speaker 3: things that we look at when we evaluate the holiday 48 00:02:02,920 --> 00:02:05,400 Speaker 3: with the sale through is like with the consumers purchase, 49 00:02:06,280 --> 00:02:08,320 Speaker 3: what our retailers are telling us as far as their 50 00:02:08,360 --> 00:02:10,639 Speaker 3: overall sales, So it goes into kind of a bigger 51 00:02:10,639 --> 00:02:13,200 Speaker 3: picture for us to really look at next year and 52 00:02:13,480 --> 00:02:16,720 Speaker 3: how how we're going to approach next year's holiday season. 53 00:02:17,000 --> 00:02:19,120 Speaker 2: I wondered if you could give us a little bit 54 00:02:19,120 --> 00:02:21,680 Speaker 2: of insight in what retailers are telling you. I mean, 55 00:02:21,960 --> 00:02:24,240 Speaker 2: we had our colleagues talking a little while ago, and 56 00:02:24,280 --> 00:02:26,040 Speaker 2: one of them was mentioning that at one point he 57 00:02:26,080 --> 00:02:29,480 Speaker 2: saw some free turkeys floating around some retailers, and I 58 00:02:29,560 --> 00:02:31,320 Speaker 2: just didn't I couldn't get my head around that. But 59 00:02:31,480 --> 00:02:33,720 Speaker 2: I mean, is that something that you're seeing at all? 60 00:02:35,200 --> 00:02:37,400 Speaker 3: You know, each retailer has their own strategy on how 61 00:02:37,400 --> 00:02:39,680 Speaker 3: they go about that. If some do giveaway turkeys with 62 00:02:39,760 --> 00:02:44,720 Speaker 3: a certain amount of sale in the basket, some heavily discounted. 63 00:02:45,480 --> 00:02:48,000 Speaker 3: It's really all over the board and they're all, you know, 64 00:02:48,040 --> 00:02:50,679 Speaker 3: looking for ways to help get that shopper into the door. 65 00:02:50,800 --> 00:02:53,880 Speaker 3: So they'll try things new each year to see what 66 00:02:53,960 --> 00:02:57,079 Speaker 3: works for them and and or sometimes if feel the 67 00:02:57,080 --> 00:02:59,280 Speaker 3: strategy is working for them, whatever that strategy is for 68 00:02:59,400 --> 00:03:01,720 Speaker 3: their for their stories, they'll stick with it. So it's 69 00:03:01,760 --> 00:03:03,840 Speaker 3: really it's all over the board. You know. We don't 70 00:03:03,840 --> 00:03:05,680 Speaker 3: even know really up until the time of the prices 71 00:03:05,680 --> 00:03:07,320 Speaker 3: are released as well on what they're going to be. 72 00:03:08,000 --> 00:03:10,760 Speaker 3: So we're we're certainly paying attention to those prices and 73 00:03:10,760 --> 00:03:11,760 Speaker 3: those retails as well. 74 00:03:12,400 --> 00:03:15,560 Speaker 1: So how important is Thanksgiving to your your business? I mean, 75 00:03:15,600 --> 00:03:18,040 Speaker 1: give us numbers here, just like how how many you know, 76 00:03:18,120 --> 00:03:21,200 Speaker 1: what percentage of sales do you do during the month 77 00:03:21,200 --> 00:03:23,720 Speaker 1: of November versus year round. 78 00:03:24,400 --> 00:03:26,280 Speaker 3: Well, it's certainly a big part of our business, but 79 00:03:26,360 --> 00:03:28,720 Speaker 3: it's not it's not all of our business. We have 80 00:03:28,760 --> 00:03:32,200 Speaker 3: over a billion dollars in sales, and this represents a 81 00:03:32,240 --> 00:03:37,280 Speaker 3: good portion of that. But what you know, I'm sorry, 82 00:03:37,360 --> 00:03:40,840 Speaker 3: over fifty percent. No, no, much less than fifty percent. 83 00:03:41,720 --> 00:03:43,880 Speaker 3: But what we look at is particularly is how we 84 00:03:43,960 --> 00:03:46,760 Speaker 3: sell versus other brands and other products in the case 85 00:03:46,800 --> 00:03:48,040 Speaker 3: are in that period of time. And one of the 86 00:03:48,600 --> 00:03:51,280 Speaker 3: important facts that we look at is or the measures 87 00:03:51,280 --> 00:03:54,440 Speaker 3: we look at, is the butter balls. Every one of 88 00:03:54,480 --> 00:03:58,320 Speaker 3: every three turkey sold in the retail outlets is a 89 00:03:58,320 --> 00:04:00,360 Speaker 3: butter ball, so that that's the number. We a real 90 00:04:00,400 --> 00:04:02,680 Speaker 3: close attention to what that market share is every year, 91 00:04:02,960 --> 00:04:04,880 Speaker 3: how it goes up or down, and how to just 92 00:04:06,320 --> 00:04:08,680 Speaker 3: throughout each each holiday season. 93 00:04:09,280 --> 00:04:11,160 Speaker 2: So looking away from the holidays, I mean, just to 94 00:04:11,160 --> 00:04:13,040 Speaker 2: help us get a better sense of how your business 95 00:04:13,080 --> 00:04:15,760 Speaker 2: is operating. Where's the big sources of demand for the 96 00:04:15,800 --> 00:04:16,479 Speaker 2: rest of the year. 97 00:04:17,880 --> 00:04:20,599 Speaker 3: Well, it really comes in our CpG products, our consumer 98 00:04:20,640 --> 00:04:23,560 Speaker 3: packaged goods, maybe in our ground turkey products that we 99 00:04:23,600 --> 00:04:26,240 Speaker 3: sell throughout the year. We also do a lot of 100 00:04:26,279 --> 00:04:28,440 Speaker 3: business and food service as well, so that's a big 101 00:04:28,480 --> 00:04:31,320 Speaker 3: portion of our business. May go to restaurant change or 102 00:04:31,360 --> 00:04:34,120 Speaker 3: to food service distributors who are selling to mom and 103 00:04:34,120 --> 00:04:36,720 Speaker 3: pop restaurants, and then we have a portion of our 104 00:04:36,720 --> 00:04:40,440 Speaker 3: business ats international as well, so it's pretty well diversified. Well. 105 00:04:40,440 --> 00:04:42,039 Speaker 1: One of the reasons we like having you on around 106 00:04:42,040 --> 00:04:44,080 Speaker 1: this time of year is not just to prepare us 107 00:04:44,120 --> 00:04:47,880 Speaker 1: for cooking Thanksgiving turkeys, but also because you guys do 108 00:04:48,040 --> 00:04:51,880 Speaker 1: survey each year when it comes to understanding consumers for 109 00:04:51,920 --> 00:04:54,400 Speaker 1: the holidays. The surveys have been a little interesting over 110 00:04:54,400 --> 00:04:57,839 Speaker 1: the last few years because of the pandemic, but it 111 00:04:57,839 --> 00:04:59,560 Speaker 1: seems like a theme this year and the data that 112 00:04:59,600 --> 00:05:02,320 Speaker 1: you found Butterball, we're sort of seeing this return to 113 00:05:02,400 --> 00:05:04,640 Speaker 1: pre pandemic activity. Talk to us a little bit about 114 00:05:04,680 --> 00:05:05,159 Speaker 1: what you found. 115 00:05:06,000 --> 00:05:08,080 Speaker 3: We are and that and that's great news. Everyone is 116 00:05:08,120 --> 00:05:11,200 Speaker 3: finally kind of over the COVID stuff. Then, Uh, celebrations 117 00:05:11,240 --> 00:05:13,279 Speaker 3: are back to what they were pre COVID, which is great. 118 00:05:13,600 --> 00:05:17,279 Speaker 3: You've got more people in households now celebrating together, an 119 00:05:17,320 --> 00:05:19,240 Speaker 3: opportunity for friends and family to get together, which is 120 00:05:19,279 --> 00:05:21,800 Speaker 3: which is fantastic. So we're really happy to see that 121 00:05:21,880 --> 00:05:24,240 Speaker 3: those levels come back. And the good news for us 122 00:05:24,320 --> 00:05:26,120 Speaker 3: is that Turkey will be at the center of the 123 00:05:26,200 --> 00:05:29,120 Speaker 3: table as it has been year and year out. Uh, 124 00:05:29,360 --> 00:05:31,919 Speaker 3: So Turkey sales are expected to be very good this year. 125 00:05:32,440 --> 00:05:34,599 Speaker 3: People don't break too much from tradition and they they're 126 00:05:34,640 --> 00:05:36,760 Speaker 3: gonna they're going to celebrate like they did in the past. 127 00:05:36,839 --> 00:05:39,360 Speaker 3: And uh, and that means the Turkey will be will 128 00:05:39,400 --> 00:05:40,440 Speaker 3: be on the table for sure. 129 00:05:40,720 --> 00:05:42,359 Speaker 2: Yeah, That's one thing I wanted to ask you, is 130 00:05:42,400 --> 00:05:45,080 Speaker 2: how stable is Turkey is a centerpiece of Thanksgiving? 131 00:05:46,400 --> 00:05:49,279 Speaker 3: It is stable. It very very little year in the 132 00:05:49,360 --> 00:05:51,800 Speaker 3: year out and and uh, you know, we're we were 133 00:05:51,839 --> 00:05:54,400 Speaker 3: really curious see what happened during COVID as well. And 134 00:05:54,480 --> 00:05:56,360 Speaker 3: what we found there is that sales were very, very good. 135 00:05:56,400 --> 00:05:58,280 Speaker 3: It was just a little bit different. We had less 136 00:05:58,360 --> 00:06:02,080 Speaker 3: larger sized turkey soul more smaller because the gatherings were 137 00:06:02,080 --> 00:06:04,080 Speaker 3: smaller because people couldn't travel and get together like it 138 00:06:04,160 --> 00:06:07,120 Speaker 3: would otherwise. This year, we're seeing more people at the table, 139 00:06:07,760 --> 00:06:09,440 Speaker 3: so we're expecting you we'll probably see a few more 140 00:06:09,480 --> 00:06:10,920 Speaker 3: sales of larger turkeys this year. 141 00:06:11,120 --> 00:06:14,880 Speaker 1: How early do you have to plan for to anticipate demand. 142 00:06:15,200 --> 00:06:16,640 Speaker 1: I mean, it seems like you have to plan for 143 00:06:16,640 --> 00:06:17,520 Speaker 1: this year ahead of time. 144 00:06:18,200 --> 00:06:20,760 Speaker 3: Well, that's exactly right. As soon as this holiday is done, 145 00:06:20,800 --> 00:06:23,760 Speaker 3: we're producing product for the next holiday season. So it 146 00:06:23,839 --> 00:06:26,920 Speaker 3: is a year round production cycle for us, and it 147 00:06:26,920 --> 00:06:29,160 Speaker 3: gets a little tricky, you know, to try to understand 148 00:06:29,160 --> 00:06:31,280 Speaker 3: whatever retaillers are going to be looking forwardach year. We 149 00:06:31,400 --> 00:06:34,760 Speaker 3: spend a lot of time talking with our customers and 150 00:06:35,040 --> 00:06:38,120 Speaker 3: sharing the information that we have from the holidays so 151 00:06:38,200 --> 00:06:40,200 Speaker 3: they have a good expectation what they think they need 152 00:06:40,240 --> 00:06:43,000 Speaker 3: for the next year as well. So it really begins 153 00:06:43,040 --> 00:06:45,600 Speaker 3: in earnest as soon as the Thanksgiving meal is over, 154 00:06:46,279 --> 00:06:49,200 Speaker 3: we're producing more product and talking to our customers for 155 00:06:49,480 --> 00:06:51,000 Speaker 3: next year's holiday Already. 156 00:06:50,880 --> 00:06:52,839 Speaker 1: Jay, we've got twenty seconds, are you answering any of 157 00:06:52,839 --> 00:06:54,760 Speaker 1: the phones at the Turkey talk Line this year. 158 00:06:55,960 --> 00:06:58,240 Speaker 3: No, No, I want to only leave that to the experts. 159 00:06:58,240 --> 00:07:01,000 Speaker 3: Those folks certainly know what they're doing, and I'm going 160 00:07:01,080 --> 00:07:02,400 Speaker 3: to let them do that. But I did get a 161 00:07:02,480 --> 00:07:04,640 Speaker 3: chance to visit with some of them last week at 162 00:07:04,680 --> 00:07:07,320 Speaker 3: an event we had in New York City with partnership 163 00:07:07,320 --> 00:07:09,400 Speaker 3: with Bumble for Friends that we did and we had 164 00:07:09,440 --> 00:07:11,640 Speaker 3: some of our top line hosts there and it was. 165 00:07:11,640 --> 00:07:16,000 Speaker 1: A great Jay, always great to chat with you. Jajandran, 166 00:07:16,120 --> 00:07:19,400 Speaker 1: Chief executive Officer, President of Butterball, joining us right here 167 00:07:19,520 --> 00:07:23,280 Speaker 1: on a Bloomberg Business Week from Garner, North Carolina. Happy Thanksgiving, Jay, 168 00:07:23,400 --> 00:07:24,720 Speaker 1: if you're listening to Bloomberg.