~ Vacuum packaging represents an alternative way of providing fresh beef to food shoppers. However, the air-tight seal leads to the beef having a brownish-red color in the package. Consequently, there is an information gap between consumers' perception of red indicating quality fresh beef and the appearance in vacuum packaging. A regression model is estimated using scan data to compare four cuts of steak in the two types of packaging. Results suggest that the information gap is a problem for three lower priced steaks hut not for filet mignon.Declining red meat consumption has prompted widespread analyses of the beef industry from the farm level through retail demand. The competitive nature of food retailing, coupled with the wide variety of substitutes, point to consumer demand having played a pivotal role in the decline. Among the causes are changes in relative prices, diet/health concerns, composition of the population, and the introduction of new foods more in line with emerging lifestyles.One of the criticisms of the beef industry is that it has not provided new products comparable to those of poultry (Allen and Pierson 1989; Linsen 1988; Marion and Walker 1978;Menkhaus, St. Clair, and Hallingbye 1985). However, a new form of fresh beef packaging, vacuum packed (V), has recently been offered to food shoppers as an alternative to tray packed (T) fresh beef, which has been available for an extended period of time. V fresh beef is cut into retail portions at the packing plant and wrapped in air-tight vacuum packages.Several advantages for both suppliers and consumers stem from the V process vis-a-vis T. Those affecting the supply side are the ease of handling, lower labor costs at the retail level, less opportunity for spoilage and contamination in shipping, and a longer shelf-life.