Oct. 18,
2012
FOR
IMMEDIATE RELEASE
For More
Information Contact:
Steve Suther, Certified
Angus Beef LLC Industry Information Director, at 785-889-4162 or ssuther@certifiedangusbeef.com
PHOTO: http://www.cabpartners.com/marketing/images/producer_logo.jpg
Sixth Record Sales Year for Top Quality Beef
Brand
CAB celebrates another record despite
market challenges
Amid U.S. cattle and beef supplies
curtailed by economics and drought, Certified Angus Beef LLC (CAB) reported
record sales of its signature brand for a sixth consecutive fiscal year that
ended September 30.
More than 16,000 licensed partners
around the world made that possible by capitalizing on the consistent dining
experience the premium brand brought to consumers as prices for all beef
continued higher. Sales totaled 811 million pounds, surpassing last year’s
record by 4 million pounds and up 49% from just six years ago. During that
period known for its challenging consumer economy, Certified Angus Beef ® brand
sales advanced from representing 5.6% to now more than 9.6% of all federally
inspected cattle harvest.
That continued growth speaks to
brand partners’ commitment to provide and serve the highest quality Angus beef
available, and attests to increasing consumer demand for premium products, said
company president John Stika.
“It
is only because of our partners’ dedication and commitment that we see gains.
Their hard work and leadership of the quality beef movement is what makes this
brand relevant and successful,” he said.
Sector
success stories
Growth varied between company sectors,
led by the foodservice and international divisions. Across all areas of the
business, partners with the greatest success did so by stepping up their
commitment to the CAB brand using innovation, creativity and targeted
promotions. Sales hit all-time highs in March, August and June with the most
growth seen in clod sales from the chuck and in all the grinds.
Comprising more than 32% of total CAB
business volume, foodservice sales grew more than any other area at 4%, setting
an annual record of 260 million pounds. That came mainly from end meats and
grinds, up 6 million and 10 million pounds, respectively.
With
consumers more closely monitoring expenses and tracking favorable dining
experiences, direct sales to licensed restaurants climbed 16%. Those
establishments recognized the continuing demand for high-quality beef, and took
steps to add brand messages on restaurant menus, magnifying their ability to
communicate the value advantage to consumers.
Though retail sales declined a slight
2%, the division finished strong with summer grilling months among the highest
ever for sales. Partners with the most sales tended to have the most brand
features in their advertising circulars. Of the top 25 CAB licensed retailers,
those with increased sales also had an average of 10% more front page ads
compared to 2011, and placed 47% more brand ads overall.
The return to record-setting
international sales is particularly notable since that finally moved past the
global U.S. beef sales setback of 10 years ago. Record sales months in February
and March demonstrated that market access issues and product flow disruptions
would not keep international sales from rising 4%, reaching 94 million pounds
in 55 countries. Canada and Mexico remain the strongest foreign markets, and
the brand was introduced in Colombia, Peru and Chili.
The value-added products division’s
record 21.5 million pounds blew past its 2011 record by 16%. That success was
led by the introduction of such convenient, high-quality items as
retail-packaged marinated cuts and fully-cooked refrigerated and frozen
entrees.
With drought conditions across North
America factoring into an overall decrease in supplies, 3.24 million cattle
were accepted for CAB, down 320,000 head from 2011 but still the third-largest
number to qualify in any year. The key to sales records in spite of lower
cattle supplies came from the increase in pounds sold per carcass. That
utilization increased 10% from 2011, demonstrating additional packer commitment
to meeting demand for the premium brand.
Looking
ahead
The opening of the Education &
Culinary Center in Wooster, Ohio, last February should advance further
collaboration with partners and bridge the gap between ranchers and consumers
through innovative education, Stika said. Since its
opening, more than 40 groups have participated in programs that included menu
merchandising, discovering and using new cuts, beef science and more.
On the supply side, the GeneMax™ DNA test for gain and grade potential, just
introduced at the middle of the fiscal year, saw orders for more than 3,000
test kits from more than 70 Angus ranches by year’s end.
“As we and our partners enter fiscal
year 2013, continued success depends on staying focused on listening and
understanding consumer demand,” Stika said. “We must
prepare for anything but stay intentional on providing a memorable dining
experience that delivers time and time again.”
The brand’s 16,000 businesses partners
worldwide generate an estimated $4 billion in consumer annual sales. Introduced
in 1978, CAB is a cut above USDA Prime, Choice and Select thanks to 10 added
quality standards. For more consumer information, visit
www.certifiedangusbeef.com, or the blog at www.GoRare.com. For producer
information, go to www.cabpartners.com or follow the brand on Facebook and Twitter.
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