Meat&Poultry - August 2012 - 8

Commentary
BY JOEL CREWS, EDITOR
jcrews@sosland.com

Partners in the fast lane
Misery loves company. For meat and poultry processors, business growth is often inhibited by a handful of factors that linger and thwart the growth plans of many of the industry’s highest profi le companies. Economic issues, including rising fuel costs, unemployment and a decline in consumers’ disposable income have played a big role in the struggles of not only processors, but also the once-thriving sport of auto racing, specifically, National Association for Stock Car Auto Racing (NASCAR). Not unlike the meat industry, NASCAR’s growth has also fought resistance from critics that are sensitive to the environmental impact of the sport. The racing industry and meat-processing companies unwillingly share scrutiny from a growing contingency of green-minded critics. For NASCAR, concerns about excessive traffic generated by the millions of fans attending races is one point of contention. Complaints about noise and exhaust pollution and wasting fuel when prices at the pump are at historic highs are also common. Whether a result of the economic downturn, market challenges or a product of interest groups infl uencing business performance, the two industries have struggled significantly as of late. But even on its heels, NASCAR is proving to be an effective marketing vehicle for meat and poultry products. Recession-induced pullouts of NASCAR sponsorships since 2008 have forced the motor head marketers to be even
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EDITORIAL STAFF
Editor

Joel Crews
Executive Editor

Keith Nunes
Senior Editor

Bryan Salvage
Managing Editor

more customer friendly and consumer focused. From the heart of NASCAR country in Smithfield, Va., Joe Luter IV told me how, three years after Smithfield Foods terminated its sponsorship with Team Rensi Motorsports, his company was approached by several racing ownership teams, anxious to make a deal. “It’s far more affordable today than it was,” Luter said of NASCAR sponsorships during an interview for this issue’s cover story (see Page 16). Ultimately, Smithfield partnered with Richard Petty Motorsports, but it was hardly a onecar race. “All the teams have been trying to fi nd sponsorships,” Luter said. “It’s been challenging for them the past three years.” For the next three years, Smithfield plans to market its three independent operating companies using Petty’s legendary stature in the racing world along with its branding messages on the Aric Almirola-driven No. 43 car. Other processors and food companies are taking advantage of NASCAR’s lull in growth, including Cargill, McDonald’s and Hooters. All of these companies have shared some of the same challenges common to successful businesses. Not unlike racing in a tight pack, sometimes drafting behind the momentum of another vehicle delivers the best route to victory lane. ■

Kimberlie Clyma
Contributing Editors

Richard Alaniz Donna Berry Steve Kay Leo Quigley

Larry Aylward Dr. Temple Grandin Steve Krut Bernard Shire

Internet Editor

Erica Shaffer
Graphic Designer

Fiona Rogers

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Charles S. Sosland
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L. Joshua Sosland
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Mark Sabo
Publisher

Dave Crost
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Bruce Brown
Publisher Emeritus

Mike Alaimo

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Melanie Hepperly
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Don Keating
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Sadowna Conarroe
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Becky White
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Lily O’Kane
Classified Designer

Steve Piatt
Digital Systems Analyst

Marj Potts
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Nora Wages
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Sharon Alexander
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Meat&Poultry - August 2012

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