Digital Social Hour - Episode #793: The Untold Truth About Grass Fed Beef Marketing with Nicky Fiorentino

Release Date: October 8, 2024

In this episode of Digital Social Hour, host Sean Kelly sits down with Nicky Fiorentino, the visionary behind The Metery, a renowned butcher shop based in San Diego. They delve deep into the intricacies of beef marketing, the grass-fed versus grain-fed debate, wagyu beef distinctions, and the strategic growth of a modern butcher business. This comprehensive summary captures the essence of their engaging conversation, enriched with notable quotes and timestamps for reference.

1. Introduction to The Metery and Nationwide Shipping

Sean Kelly (B) opens the discussion by introducing Nicky Fiorentino (A) and highlighting The Metery's unique ability to scale beyond local markets.

• Nationwide Reach: Nicky explains how The Metery operates a butcher shop in the Mission Gorge area of San Diego and ships meat nationwide, including to Alaska and Hawaii. This broad reach distinguishes them from many local butcher shops.

  [00:48] A: "We deliver nationwide. We deliver to Alaska and Hawaii. Most of the others don't."

• Warehouse Transformation: Leveraging an existing warehouse, Nicky transformed unused office spaces into a thriving butcher shop, a strategic move that facilitated their expansion.

  [00:54] A: "When I got a warehouse, I had a couple big offices in the front that I didn't need, and I turned them into a butcher shop."

2. Innovative Marketing: The Power of Billboards

One of the standout points in the conversation is The Metery's successful use of billboards as a marketing tool.

• Billboard Impact: After three and a half years in business, Nicky invested in billboards, leading to a significant increase in shop size within three months.

  [01:15] A: "I put up billboards after about three and a half years of the shop being in business, and within three months, the shop had doubled in size."

• Marketing Lessons: Nicky emphasizes the importance of captivating messages and directional placement to maximize billboard effectiveness.

  [02:00] A: "The billboard has to directionally be, if you're trying to grab local traffic, directionally facing the flow of traffic to your store."

• Sean's Skepticism: Initially doubtful about billboards' effectiveness, Sean acknowledges their success for The Metery.

  [01:37] B: "That's insane to me because they're all over Vegas and in my head, I never thought they work, to be honest."

3. The Grass-Fed vs. Grain-Fed Beef Debate

A substantial portion of the episode centers on the contentious discussion between grass-fed and grain-fed beef, exploring both marketing narratives and nutritional claims.

• Product Diversity: Nicky clarifies that The Metery offers a variety of beef types, including grass-fed, grass-finished, grain-fed, and wagyu, catering to diverse customer preferences.

  [03:18] A: "We carry grass fed grass finished beef, we carry grain fed, we carry wagyu. So I do believe that whatever somebody wants, we're going to serve their desires."

• Skepticism Towards Grass-Fed Claims: Nicky critiques the marketing strategies behind grass-fed beef, questioning the validity of claims regarding toxin avoidance and nutritional benefits.

  [04:07] A: "I think that grass fed beef is a very well marketed and positioned product and I don't think that the grass fed versus grain fed Angus beef argument really has a clear winner."

• Nutritional Analysis: He challenges the emphasis on omega-3 and omega-6 fatty acids in grass-fed beef, suggesting alternative protein sources like fish for higher intake.

  [04:07] A: "Why are you not eating fish that has 1000% more omega 3 and 6 than any form of Angus?"

• Market Influencers: Nicky mentions key influencers like Paul Saladino and Liver King, analyzing their impact on the grass-fed narrative.

  [04:13] A: "You had Paul Saladino, Liver King, plenty of other influencers... I think that data... can be manipulated."

• Cost vs. Benefit: He argues that while grass-fed beef may offer marginal nutritional benefits, it often comes at a higher price and may compromise flavor.

  [05:53] A: "You're probably paying potentially more for that."

  [05:58] A: "And on top of it, I think you're sacrificing a lot of flavor."

4. The Superior Alternative: Wagyu Beef

Transitioning from the grass-fed debate, Nicky introduces wagyu beef as a superior alternative, both nutritionally and in terms of flavor.

• Wagyu vs. Angus: Nicky highlights wagyu's higher monounsaturated fat content and CLA (conjugated linoleic acid) benefits, positioning it as a healthier and more flavorful option compared to Angus.

  [07:05] A: "Wagyu is dramatically healthier in a lot of regards. Everything that the grass fed people are stating you get with Wagyu as well as the flavor and tenderness."

• Global Variations: He distinguishes between different types of wagyu, including American, Australian, and Japanese, noting genetic compositions and pricing differences.

  [09:05] A: "American wagyu, there's Australian... Australian is typically at least purebred, which is 93.75% or higher."

  [09:43] B: "And Japanese, it's usually the most expensive, right?"

• Consumer Education: Nicky emphasizes educating consumers about the various wagyu cuts and dispelling misconceptions that equate wagyu solely with overly fatty steaks.

  [10:03] A: "African Wagyu... it's going to eat more like a steak."

• Taste Preferences: He shares customer feedback contrasting Japanese and Australian wagyu, illustrating differing taste preferences.

  [10:57] A: "Japanese was amazing, super rich, but I need more of that Australian."

• Grading Systems Critique: Nicky critiques the USDA grading system for its subjectivity and inconsistency, advocating for more standardized and technology-driven assessment methods.

  [12:15] A: "I've seen such variance in the marbling of prime and choice."

  [13:24] B: "They should be using an AI scale and something put the meat on there for sure, should determine the ratios."

  [14:52] A: "It is subjective."

5. Business Operations: Online Presence and Subscription Services

Nicky delves into the operational aspects of The Metery, highlighting the transition from online sales to establishing a physical storefront.

• Online Launch During COVID: The Metery's online presence was established during the pandemic, allowing continuous operations despite restrictions.

  [17:32] A: "We launched purely online and then the storefront came probably six, eight months after the Internet launch."

• Revenue Streams: While online sales contribute significantly to revenue, the physical storefront offers better profit margins due to the elimination of shipping costs.

  [17:59] A: "Revenue wise is still online. But storefront is, you know, way better. Profit margins because we're not shipping."

• Subscription Model: Introduced in November, the subscription service has been a major focus, allowing customers to receive regular deliveries of varied meat selections. Nicky discusses the logistical challenges and the importance of flexibility for customers.

  [24:56] A: "We've got the subscription... You can pause it, you can swap, you can skip."

  [25:36] B: "What's your top sellers?"

  [25:57] A: "Top sellers are probably our off cuts... Denver steak, Chucktail flap, picanha..."

• Operational Efficiency: Hiring a capable CEO-partner, Carlos, has streamlined operations, enabling Nicky to focus on growth strategies.

  [26:03] A: "We hired a CEO who actually is now a partner of the business. Carlos. And he has just taken so many operational issues out of my life."

• Marketing Attribution Challenges: Nicky discusses the complexities of attributing marketing efforts to sales, especially with recent changes in digital advertising metrics.

  [27:05] A: "Attribution is all messed up... You just have to have an omnichannel approach and you have to just look at the big picture."

6. Customer Service and Product Offerings

The Metery prides itself on exceptional customer service and a diverse product range catering to various preferences.

• Customer-Centric Approach: Nicky underscores the importance of customer service, drawing parallels between lead generation in marketing and quality in meat selection.

  [20:24] B: "You can't cheap out on leads."

  [20:25] A: "Same goes with meat quite frankly. Like if you buy the cheapest meat, you're going to have the cheapest experience."

• Diverse Cuts: Offering a range of cuts like Denver steaks, Chucktail flap, and picanha satisfies different taste and budget preferences.

  [16:35] A: "Top sellers are probably our off cuts... Denver steak... picanha... little filet mignons."

• Exclusive Certifications: The Metery boasts certifications like Kobe beef, a rare accolade that sets them apart in the market.

  [16:42] B: "And you're also Kobe beef certified..."

  [16:48] A: "It is, yeah."

7. Future Plans and Expansion

Looking ahead, Nicky shares ambitious plans for The Metery, focusing on expansion, product diversification, and maintaining quality.

• Expansion of Storefronts: Plans to introduce an express concept in another northern San Diego area reflect The Metery's growth trajectory.

  [27:24] A: "We're going to open up an express concept in a different northern part of San Diego very soon."

• Harvesting Purebred Wagyu: The Metery has recently harvested its first purebred wagyu cow, signaling the introduction of their own wagyu line.

  [28:16] A: "We did just actually harvest our first full blood. I'm sorry, purebred wagyu cow."

• Subscription Growth: Continued emphasis on the subscription model aims to bolster monthly recurring revenue and enhance customer loyalty.

  [24:56] A: "Box is doing well. It's growing."

• Potential New Products: Exploring offerings like primal burgers blending beef and offal indicates The Metery's commitment to innovation.

  [22:51] A: "Primal Burger that's a blend of beef and offal."

8. Closing Thoughts and Offers

In the concluding moments, Sean and Nicky highlight special offers and express mutual appreciation for the insightful discussion.

• Special Discount: Nicky offers a 15% discount for military personnel and first responders, showcasing The Metery's commitment to supporting the community.

  [28:19] B: "If you want some meat, 15% off for military and first responders."

• Acknowledgments: Both express gratitude, reinforcing the collaborative and respectful tone of the episode.

  [28:36] B: "Thanks for coming on, dude."

  [28:41] A: "Appreciate it."

Notable Quotes with Timestamps

• On Grass-Fed Marketing Skepticism:

  [04:07] A: "Why are you not eating fish that has 1000% more omega 3 and 6 than any form of Angus?"

• Billboard Marketing Success:

  [01:15] A: "I put up billboards... within three months, the shop had doubled in size."

• Wagyu Health Benefits:

  [07:05] A: "Wagyu is dramatically healthier in a lot of regards."

• Critique of USDA Grading:

  [12:15] A: "I've seen such variance in the marbling of prime and choice."

• Customer Service Philosophy:

  [20:24] B: "You can't cheap out on leads."

• Future Expansion Plans:

  [27:24] A: "We're going to open up an express concept in a different northern part of San Diego very soon."

Conclusion

This episode of Digital Social Hour provides a deep dive into the strategic marketing and operational decisions that drive The Metery's success. Nicky Fiorentino's insights into the beef industry, particularly the nuanced discussions on grass-fed versus wagyu beef, offer valuable lessons for entrepreneurs and industry enthusiasts alike. Sean Kelly’s adept questioning further enriches the conversation, making this episode a must-listen for those interested in meat marketing, business scaling, and the evolving landscape of modern butcher shops.