®
Certified Angus Beef
An overnight success that
took 35 years to build
1st carcass certified into the brand
October 6, 1978
Val Decker Packing Co.
Piqua, OH

Mick Colvin congratulates the first...
Certified Angus Beef LLC
• Established as the first brand of beef
• Subsidiary of the American Angus Association
– The Onl...
Key Discussions
•
•
•
•

Brand History
Brand Scope & Drivers of Growth
Promotional Methods
Sustainable Benefits to Produce...
Changes within the U.S. Cowherd
throughout the 1970’s
ANGUS

SHORTHORN

HEREFORD
Continental Breeds

POPULARITY
In 1976, USDA Broadened Beef
Quality Grade Standards
POPULARITY
An Opportunity for Branded Beef

?
#1 Reason Consumers Buy Beef

TASTE!
The Vision for the Brand

Offer a product that is
ultimately ulledddddddd
through the system by the
consumer rather than p...
Mission Statement
Increase demand for
registered Angus cattle
through a specificationbased, branded-beef
program to identi...
The Product
• 10 Science-based specifications
–
–
–
–
–
–
–
–
–
–

Modest or Higher Degree of Marbling
Medium to Fine Marb...
Product Availability
Access more than 85% of North American fed-cattle slaughter

ADD Enterprises

E.R. Boliantz Inc.
Brand Offering
Work with every business segment

Rancher

Feeder

Packer

End User &
Consumer
Brand Integrity
with INTEGRITY, nothing else matters…..
without it, nothing else matters.
• Maintain a brand integrity sys...
Step 1

Live Animal Eligibility
• Only Angus-influenced cattle
• Predominantly (>51%) black-hided

• Nearly 65% of all fed...
Step 2

Carcass Certification

USDA or CBGA Graders evaluate Angus-influenced
carcasses for the brand specifications
Identified Angus & Angus-Influenced Cattle

Cattle Identified (millions)
Million Head

(United States & Canada)
16
15
14
1...
Certified Carcasses Annual Trend
(United States & Canada)

Certified Carcasses (millions)

4.0
3.4

3.5
3.0
2.5

2.0
1.5
1...
Certification Rate Annual Trend

Certification Rate (%)

(United States & Canada)
26%
25%
24%
23%
22%
21%
20%
19%
18%
17%
...
MILLION LBS.

Certified Angus Beef ® brand Sales
900
850
800
750
700
650
600
550
500
450
400
350
300
250
200
150
100
50
0
...
Pounds Sold by Business Type
46%

9%

FY-2013
*Tonnage not assigned to a specific division

32%

13%

Retail
Foodservice
I...
Not All Angus Qualify For the Brand
Nearly 65% are
black-hided and
Angus-influenced

Only 1 in 4 Angusinfluenced cattle me...
An Abundance of Angus Programs
• USDA certified 7.8 million head into 144
different branded programs
– Represent more than...
Marketing
& Sales
Strategy

Education

Public
Relations

Design &
Photos

Culinary

Our Mission: Your Complete Marketing T...
Wholesale Beef Demand Index Values
Base Year = 2002

Certified Angus Beef®

USDA Choice

180
170

Demand Index Value

160
...
Stressing the Price:Value Relationship
15-year Comparative Protein Retail Pricing
$5.00
$4.50
$4.00
$3.50
$3.00
$2.50
$2.0...
Consumer spending
decisions are based on a

Price:Value
relationship.
When Making Purchase Choices

Taste Is Still King
The only sustainable flow of
dollars from which to
continue to build the beef
industry comes from the
consumer.
Simply branding an
inferior product and
charging a higher price is
asking for failure.
Brand Relevance Hierarchy
1. Consumer
2. Supply Chain
–
–
–
–

End-User (Retailer, Distributor, Restaurant, etc)
Packer
Ca...
After 35 Years
• 2.3 million pounds are sold per calendar day
• More than 16,000 licensed partners with the brand in the
U...
Mission Statement
Increase demand for
registered Angus cattle
through a specificationbased, branded-beef
program to identi...
Angus beef at its best ®
[BeefSummit Brasil] John Stika: Certified Angus Beef: uma ideia nova há 35 anos atrás, e um grande sucesso nos dias de hoj...
[BeefSummit Brasil] John Stika: Certified Angus Beef: uma ideia nova há 35 anos atrás, e um grande sucesso nos dias de hoj...
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[BeefSummit Brasil] John Stika: Certified Angus Beef: uma ideia nova há 35 anos atrás, e um grande sucesso nos dias de hoje - como agregamos valor ao produtor, promovendo uma marca de carne bovina

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  • Think of us as your complete marketing team. We are here to service you and help you grow your business with this brand.We offer – Marketing ideas to drive your salesEducation events to help your team be better sales peopleInteraction with the mediaOver 150 great steak photos – use our photos to create something on your own – our ask our talented team to design something for youTap into our culinary team – we offer a selection of consumer and chef targeted recipesMany of these items are available to you on the licensee services section of our web site.
  • [BeefSummit Brasil] John Stika: Certified Angus Beef: uma ideia nova há 35 anos atrás, e um grande sucesso nos dias de hoje - como agregamos valor ao produtor, promovendo uma marca de carne bovina

    1. 1. ® Certified Angus Beef An overnight success that took 35 years to build
    2. 2. 1st carcass certified into the brand October 6, 1978 Val Decker Packing Co. Piqua, OH Mick Colvin congratulates the first meat cutter to offer Certified Angus Beef ® product to consumers at Renzetti’s IGA of Columbus, OH. The date — October 18, 1978.
    3. 3. Certified Angus Beef LLC • Established as the first brand of beef • Subsidiary of the American Angus Association – The Only Brand Owned by the Association – Governed by a Board of Angus breeders – 117 staff members solely focused on the brand • Non-profit structure – Funded by commissions paid at the packing level • Never own cattle or product • License the use of our federally registered marks
    4. 4. Key Discussions • • • • Brand History Brand Scope & Drivers of Growth Promotional Methods Sustainable Benefits to Producers
    5. 5. Changes within the U.S. Cowherd throughout the 1970’s ANGUS SHORTHORN HEREFORD
    6. 6. Continental Breeds POPULARITY
    7. 7. In 1976, USDA Broadened Beef Quality Grade Standards
    8. 8. POPULARITY
    9. 9. An Opportunity for Branded Beef ?
    10. 10. #1 Reason Consumers Buy Beef TASTE!
    11. 11. The Vision for the Brand Offer a product that is ultimately ulledddddddd through the system by the consumer rather than pushed by the supply chain.
    12. 12. Mission Statement Increase demand for registered Angus cattle through a specificationbased, branded-beef program to identify consistent, high quality beef with superior taste.
    13. 13. The Product • 10 Science-based specifications – – – – – – – – – – Modest or Higher Degree of Marbling Medium to Fine Marbling Texture A-Maturity Ribeye Area 10.0 – 16.0 inch2 Hot Carcass Weight less than 1,000 lbs Fat Thickness less than 1.0 inch Moderately Thick or Thicker Muscling No Neck Hump Exceeding 2 Inches Practically Free of Capillary Rupture No Dark Cutters
    14. 14. Product Availability Access more than 85% of North American fed-cattle slaughter ADD Enterprises E.R. Boliantz Inc.
    15. 15. Brand Offering
    16. 16. Work with every business segment Rancher Feeder Packer End User & Consumer
    17. 17. Brand Integrity with INTEGRITY, nothing else matters….. without it, nothing else matters. • Maintain a brand integrity system that tracks every pound of product from the packer to end-user • Assures people of the quality they have been promised • Allows licensees to sell/serve with confidence • Allows us to protect the Certified Angus Beef ® trademark(s)
    18. 18. Step 1 Live Animal Eligibility • Only Angus-influenced cattle • Predominantly (>51%) black-hided • Nearly 65% of all fed-cattle are Angus-influenced
    19. 19. Step 2 Carcass Certification USDA or CBGA Graders evaluate Angus-influenced carcasses for the brand specifications
    20. 20. Identified Angus & Angus-Influenced Cattle Cattle Identified (millions) Million Head (United States & Canada) 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 14.2 Fiscal Year Source: Certified Angus Beef LLC
    21. 21. Certified Carcasses Annual Trend (United States & Canada) Certified Carcasses (millions) 4.0 3.4 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Fiscal Year Source: Certified Angus Beef LLC
    22. 22. Certification Rate Annual Trend Certification Rate (%) (United States & Canada) 26% 25% 24% 23% 22% 21% 20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 24.2% 24.0% 23.1% 22.6% In 2013, improved carcass quality resulted in: • More than 225,000 additional CAB® carcasses • More than 55 million lbs of additional sales 14.0% Fiscal Year Source: Certified Angus Beef LLC
    23. 23. MILLION LBS. Certified Angus Beef ® brand Sales 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 YEAR
    24. 24. Pounds Sold by Business Type 46% 9% FY-2013 *Tonnage not assigned to a specific division 32% 13% Retail Foodservice International Misc*
    25. 25. Not All Angus Qualify For the Brand Nearly 65% are black-hided and Angus-influenced Only 1 in 4 Angusinfluenced cattle meet brand specifications 35% 65% Black-hided Other 14.2 million eligible cattle 3.4 million carcasses certified
    26. 26. An Abundance of Angus Programs • USDA certified 7.8 million head into 144 different branded programs – Represent more than 30% of all fed-cattle • 106 use ―Angus‖ and represent all quality levels – Represent 80% of all carcasses certified by USDA USDA Select Angus
    27. 27. Marketing & Sales Strategy Education Public Relations Design & Photos Culinary Our Mission: Your Complete Marketing Team Web site POS
    28. 28. Wholesale Beef Demand Index Values Base Year = 2002 Certified Angus Beef® USDA Choice 180 170 Demand Index Value 160 150 Since 2002, demand for the brand has increased 79% compared to 3% for commodity Choice 140 130 120 110 100 90 80 70 60 50 2002 2003 2004 Source : Zimmerman and Schroeder, 2013 Data: USDA, Urner Barry and Certified Angus Beef LLC 2005 2006 2007 Year 2008 2009 2010 2011 2012
    29. 29. Stressing the Price:Value Relationship 15-year Comparative Protein Retail Pricing $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Chicken Pork Beef price in 2012: 35% higher than Pork 148% higher than Chicken Beef price in 1998: 4% higher than Pork 64% higher than Chicken 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 Average Retail Price/lb Beef Year Source: USDA ERS, 2013
    30. 30. Consumer spending decisions are based on a Price:Value relationship.
    31. 31. When Making Purchase Choices Taste Is Still King
    32. 32. The only sustainable flow of dollars from which to continue to build the beef industry comes from the consumer.
    33. 33. Simply branding an inferior product and charging a higher price is asking for failure.
    34. 34. Brand Relevance Hierarchy 1. Consumer 2. Supply Chain – – – – End-User (Retailer, Distributor, Restaurant, etc) Packer Cattle Feeder Commercial Cow-calf Producer 3. Brand & Association
    35. 35. After 35 Years • 2.3 million pounds are sold per calendar day • More than 16,000 licensed partners with the brand in the United States and 43 other countries – Certified Angus Beef® brand product is sold into 76 countries • Over 90% consumer brand recall in the U.S. • Cattlemen can reap up to $40-$50 per head in grid premiums specifically for hitting the CAB® brand target • More than $30 million in grid premiums are paid directly to producers by packers annually • More than 4.3 billion servings generating an estimated $2.7 billion in global consumer sales annually
    36. 36. Mission Statement Increase demand for registered Angus cattle through a specificationbased, branded-beef program to identify consistent, high quality beef with superior taste.
    37. 37. Angus beef at its best ®

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