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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.

Transcript

  • 1. ® Certified Angus Beef An overnight success that took 35 years to build
  • 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. 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. Key Discussions • • • • Brand History Brand Scope & Drivers of Growth Promotional Methods Sustainable Benefits to Producers
  • 5. Changes within the U.S. Cowherd throughout the 1970’s ANGUS SHORTHORN HEREFORD
  • 6. Continental Breeds POPULARITY
  • 7. In 1976, USDA Broadened Beef Quality Grade Standards
  • 8. POPULARITY
  • 9. An Opportunity for Branded Beef ?
  • 10. #1 Reason Consumers Buy Beef TASTE!
  • 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. Mission Statement Increase demand for registered Angus cattle through a specificationbased, branded-beef program to identify consistent, high quality beef with superior taste.
  • 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. Product Availability Access more than 85% of North American fed-cattle slaughter ADD Enterprises E.R. Boliantz Inc.
  • 15. Brand Offering
  • 16. Work with every business segment Rancher Feeder Packer End User & Consumer
  • 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. Step 1 Live Animal Eligibility • Only Angus-influenced cattle • Predominantly (>51%) black-hided • Nearly 65% of all fed-cattle are Angus-influenced
  • 19. Step 2 Carcass Certification USDA or CBGA Graders evaluate Angus-influenced carcasses for the brand specifications
  • 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. 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. 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. 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. Pounds Sold by Business Type 46% 9% FY-2013 *Tonnage not assigned to a specific division 32% 13% Retail Foodservice International Misc*
  • 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. 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. Marketing & Sales Strategy Education Public Relations Design & Photos Culinary Our Mission: Your Complete Marketing Team Web site POS
  • 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. 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. Consumer spending decisions are based on a Price:Value relationship.
  • 31. When Making Purchase Choices Taste Is Still King
  • 32. The only sustainable flow of dollars from which to continue to build the beef industry comes from the consumer.
  • 33. Simply branding an inferior product and charging a higher price is asking for failure.
  • 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. 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. Mission Statement Increase demand for registered Angus cattle through a specificationbased, branded-beef program to identify consistent, high quality beef with superior taste.
  • 37. Angus beef at its best ®