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Emily Krueger
Certified Angus Beef LLC
330-345-2333 ext. 319
Sixth record sales year for top quality beef brand
Certified Angus Beef ® brand celebrates another record despite market challenges
WOOSTER, Ohio—Oct. 18, 2012—Amid U.S. cattle and beef supplies curtailed by economics and drought, Certified Angus Beef LLC 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 federally inspectedbeef.
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 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 grind sales.
Comprising more than 32% of total brand business, 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.
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Though retail sales declined a slight 2%, the division finished with summer grilling months among the strongest ever for sales. Partners with the most sales tended to have the most brand features in their advertising circulars. Of the brand’s top 25 licensed retailers, those with increased sales also had an average of 10% more front page ads compared to 2011, and placed 47% more Certified Angus Beef ®brand ads overall.
The return to record-setting sales in the international division is particularly notable since it 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 Chile.
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 the brand, down 320,000 head from 2011 and the third-largest number of cattle to qualify in any year. The key to that sales record in spite of lower cattle supplies came from the increase in pounds sold per animal. 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. Since its opening, more than 40 groups have participated in programs that included menu merchandising, discovering and using new cuts, beef science and more.
“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, the Certified Angus Beef ® brand is a cut above USDA Prime, Choice and Select thanks to 10 strict quality standards. For more information, visit or follow the brand on Facebook, Twitter or the blog at
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