Register for free CAB webinar

“Getting to know the brand”

by Abbie Burnett

November 9, 2020

How do you certify your herd to produce the Certified Angus Beef ^® (CAB^®) brand?

The short answer? You don’t.

The long answer is one of the many that Kara Lee, CAB assistant director of producer engagement, will answer in an upcoming virtual presentation.

The free, one-hour “Getting to Know the Certified Angus Beef ^® Brand” webinar is set for November 19, 1:30 p.m. Central.

CAB was designed to increase demand for registered Angus cattle by adding value throughout the supply chain, and today quality cattle are worth more to every segment. Qualifying carcasses earn upwards of $1.7 million in grid premiums each week, Lee says, but knowing how it all comes together is the first step to capturing some of that value.

“The Certified Angus Beef brand is a well-known, almost household name for many cattle producers. However, the structure of the brand is often less well known,” she says. “This is for any producer who wants a better understanding of how the company works for them and wants to know how to connect that to what they do on the ranch.”

Lee will provide a general overview of the brand and its importance to consumers, and offer insight into how cattle qualify and what typically prevents CAB certification in the first place.

“If you’ve always thought of yourself as familiar with the brand, but find it difficult to explain exactly how it works, this webinar should be a great resource,” Lee says.

From the basic to the complex, she’ll talk through the most common FAQs and allow time for participants to ask questions of their own.

“We want everyone who produces high-quality beef to know what it takes to get involved,” Lee says.

To register for the Nov. 19 webinar, visit www.cabcattle.com/webinars.

CAB communications internship open now

by Morgan Marley Boecker

October 9, 2020

To thrive in a career takes seasoning beyond the classroom, so that learned skills not only shine but grow with on-the-job challenges and direction. The right internship can offer those links.

Certified Angus Beef ^® (CAB) brand interns draw on their writing skills and creativity to share the stories with stakeholders across the beef supply chain. The producer communication internship is meant for college juniors and seniors, and the application is open until Dec. 1.

The opportunity provides practice in photography, videography, website management and more across the brand’s multi-media channels allowing students to learn more in their areas of interest.

Selected students gain real-world experience to benefit journalism, public relations, marketing and other careers in the beef industry.

“A creative and passionate environment drives trust and confidence, and that’s what this team does every day,” says Kylee Kohls, 2019 summer intern. “The producer communications team taught me what it looks, feels and sounds like to be a beef storyteller.”

A strong story starts with good writing – whether it’s a video script, news release or feature. Interns are valued team members and regular contributors to the Angus Journal and Angus Beef Bulletin. They also assist with social media copy, website management, photography and video production.

Interns often hit the road to cover stories at Angus ranches across the U.S. They’re responsible for interviews, photography, video shooting and writing stories sent to most North American ag media and published on the brand’s website and social media pages.

While interns must work independently to meet deadlines, the team works to develop their skills by providing personal feedback on projects.

“One-on-one writing coaching and individual project meetings provided continuous growth opportunities all summer long,” Kohls says.

The team will select from a pool of motivated students to fill the summer 2021 or schoolyear 2021-2022 terms. Summer interns often work from the brand’s Wooster, Ohio, office 40 hours per week throughout the duration. Spring and fall interns work 10 hours per week from their remote location.

The application asks for a resume, cover letter and an online or uploadable portfolio of work samples in writing, photography and videography (if applicable).

Find more information about the internship or apply at www.cabcattle.com/internship/.

Watch the video below for more details and what to expect.

Another billion in the books

Pandemic impacts Certified Angus Beef fiscal year, but sales momentum is strong

by Kylee Kohls

October 7, 2020

Blindfolded on a rollercoaster, this year in the beef business was filled with unexpected upside-downs and lurches.

Whether a restaurateur in New York City or a rancher in Nebraska, the impacts of COVID-19 make 2020 a ride no one will soon forget.

For the first time in 16 years, the Certified Angus Beef ^® brand (CAB^®) reported lower annual pounds sold for its fiscal year that ended September 30. Still, 2020 was one of strong performance and the fifth consecutive year with sales of more than a billion pounds across 52 countries. Those global sales of 1.175 billion pounds were down 6%, or 75 million pounds.

“We’re prepared and positioned today to support our partners’ business recovery and growth as we move forward,” says CAB President John Stika. “We’re fortunate to be in good shape because of the combined effort across our community.”

Supply set to meet demand

Despite market disruption and volatility, Angus cattlemen remained focused on producing high-quality beef. In 2020, a record 35.9% of all Angus-influenced cattle met the brand’s 10 quality specifications at licensed packers.

“Just a decade ago we were celebrating a 23% acceptance rate,” says Paul Dykstra, CAB assistant director of supply management and analysis. “It’s been a pretty steady uptick in both quality and Angus-influence in the cattle available for consideration.”

The 5.54 million cattle certified into the brand were only 1.9% fewer than 2019. That number was just 3.5 million in 2010.

“That demonstrates a clear, concerted effort. Cattlemen are more focused than ever on what demand is telling us about beef quality,” he says. “The brand is widely recognized as the target for successful producers who want to participate in the upper echelon of the market.”

Licensed packers returned more than $1.7 million dollars in premiums to cattle feeders each week for CAB-qualified carcasses, incentivizing that pull-through demand back to cow-calf suppliers.

“In a year when retail beef prices spiked and uncertainty was a theme, producers heard what consumers said again and again: quality still matters,” Dykstra says.

A consistent and growing supply enables licensed processors, distributors, restaurateurs and retailers to deliver. Stika says the brand is focused on meeting demand, though some segments may serve consumers differently moving forward.

Riding the rails

Last October the fiscal year began by working through lingering disruption from the packing plant fire in Kansas. That challenged the brand’s international business and the ability to secure retail feature activity moving into the holidays.

Foodservice, on the other hand, was on record pace.

With a combination of manageable prices and availability in January and February, sales across all segments strengthened, landing both months among the top 10 for all-time CAB sales.

March finished in the history books’ top 10, too.

While the month saw foodservice and international business decline by 40% due to the onset of COVID-19, consumers transitioned their buying patterns. Retail business spiked, all but offsetting the declines in other areas.

At the peak of the pandemic in April and May, foodservice and international sales were down 72% and 64% respectively. Retail business was up almost 44%.

June brought continuity, reestablishing itself in the supply chain, and moved into fall with two months of sales above 100 million pounds.

Putting all 12 months together, retail had a record year, increasing by 12%, while foodservice and international sales were down 22%.

Managing through widespread crisis is not unprecedented for the company. When BSE disrupted the beef industry in 2004, brand sales declined 80 million pounds, a fairly similar volume decrease for 2020.

“In 2004, total sales were roughly 43% of what they are today, so that 80-million-pound loss in business translated into a 13.5% decline in both tonnage and resources compared to the 6% we’ll manage through this year,” Stika says.

The brand remains stable with a steady supply and projections for continued growth, he says.

Closing the books on 2020, Stika is grateful and optimistic.

“For as much as we have enjoyed the past, our focus cannot be on saving the past,” he says. “Rather our focus will be on changing, evolving and being more flexible so that we can really excel for our partners in the future, regardless of what it looks like.”

That’s a promise designed to deliver dollars all the way back through the system.

Everybody wins

50 CAB interns learn, tell brand stories across 20 years

By Maeley Herring

The cow and the egret, the bee and the flower, the Gobi woodpecker and the saguaro cactus. Add an effective internship to that list; symbiotic roles benefit each other.

Two decades ago, the Certified Angus Beef^® (CAB^®) brand created an internship for its new Industry Information—now Producer Communications—Division.

It started as a way to get more done while providing opportunities for ag journalism students.

“We needed help to carry out our expanding agenda,” says Steve Suther, director from 1998 to 2018. “Interns brought fresh ideas and new ways to tell stories while getting professional work experience before entering the real world.”

More than 50 interns from across North America have contributed to the brand since then, and it’s still a two-way street.

“Interns broaden our point of view of how people see the world,” Suther says. “As we help them write more effectively, they teach us, too.”

Professional opportunities

It was her first week on the job. Through the forests of Wisconsin into Iowa’s rolling hills, Becky Church found the three Angus farms she would write about over the next few months – despite sketchy directions and cell phone service.

The 2015 CAB summer intern embraced those challenges, appreciated them even. “That experience put me out of my comfort zone for the better.”

Now communications director for the Minnesota Beef Council, Church looks back on her summer five years ago with “a lot of respect for the work Certified Angus Beef does.”

Then as now, interns are responsible for interviews, notes, photography and writing stories that are sent to most North American ag media and posted on the brand’s web pages.

“I got to see the fruits of my labor pay off by getting published,” Church says, “and that was really exciting as a [University of Minnesota] college student.”

Writing was the skill most improved that summer.

“I’m a woman of words,” she says with a smile, “and Steve really challenged me to develop more of a concise or technical type of writing. It changed my mind about writing, on how I apply it currently in getting a point across.”

Internships offer a sense of direction for students, helping bridge the gap between college and a professional career.

“It’s fun to see the foreshadowing and growth now looking back,” Church adds. “The best thing about internships is that you realize what your passions are maybe without understanding yourself at the time, but it’s pretty clear, just based on your path, that there’s a reason behind it all.”

Brand ambassadors

It didn’t take long for the CAB team to realize where the intern’s roots were.

Julie (Vrazel) Tomascik’s passion for the cattle industry was as evident as her accent.

Growing up on a cow-calf ranch outside of Cameron, Texas, Tomascik knew little about other sectors, but the 2010 CAB spring internship gave the Tarleton State University student a “deeper understanding of the entire cattle industry,” she says. “Getting to talk to feedyard owners and seeing what happens after calves leave the ranch was truly an eye-opening experience.”

So was the interaction with other ranchers focused on quality beef.

“It kind of brought me out of my shell,” she says. “The on-site story trips helped expand my horizons and grow my confidence.”

The internship orients students to how CAB functions in the market so they can create on-target stories that help producers make more money, Suther says. “As they move on, they’re like ambassadors who tell the brand’s story all around the country.”

Tomascik is now Texas Farm Bureau associate director of communications and editor of print and digital publications.

“I’m working to expand public perceptions of ag and making sure our farmers and ranchers are taken care of when it comes to policy issues in Washington, D.C., and Austin,” she says, adding CAB helped her build the foundation for that job.

Successful investments

From the start, she knew she would end up in the beef industry in some way, shape or form.

“I was blessed to have that clarity of interest at a very young age,” says Chelsea Good, vice president of government and industry affairs and legal for the Livestock Marketing Association (LMA).

That passion for cattle pointed Good to the producer communications internship while the Colorado native was a senior at Kansas State University (K-State).

“I was learning how Certified Angus Beef was providing opportunities for producers to get value out of their investments,” Good started, “as well as getting exposure to the producers who were utilizing those CAB tools to drive value.”

Today, she works with interns and realizes what it means to teach instead of correct.

“It takes time to sit down and talk through areas where interns can improve,” she explains. “Certified Angus Beef staff were willing to take that time with me.”

Because of the brand’s intentional investment, “I left that experience much more skilled than when I went into it,” Good says.

The internship helps sharpen writing, interview and general communication skills, she says. “Those are things that have benefited me in every step I’ve had along the way.”

Her position with LMA includes advocacy for the livestock industries.

“I will always think about my time at CAB when working on issues,” Good says. “They gave me one more lens to look through as I’m thinking about our industry as a whole and how certain policies affect our producers driving toward premium quality product.”

Intentional effort

After weeks of gathering notes, sorting through photos and carefully piecing everything together, Lance Zimmerman was confident and ready to turn the feature over to Suther for editing.

Hours later, red marks covered the piece.

Although discouraged then, the K-State senior from Schoenchen, Kan., soon learned how to act on those suggestions to improve his writing.

By the end of his 2002 internship, Zimmerman only had a few editing changes in those stories.

“Steve was always great about pointing interns in a direction and letting them make their own path,” he says. That’s a guiding principle for the program to this day.

Interns had creative freedom, which may result in a rougher first draft or imperfect photos, “but it created better writers and employees.” They took ownership in their work and learned from their mistakes, Zimmerman says.

Those who put forth the most effort get the most out of it.

“It takes desire” to create the kind of quality work that doesn’t go unnoticed, he says. “If you work hard enough in any internship, but especially at CAB, the company is going to give you enough experience and enough freedom to grow within the role,” he says.

Today, Zimmerman works at CattleFax as research and data manager, leading other analysts in research and projects.

With each new year and new crop of interns, the producer communications staff sees their to-do lists get shorter as students find their list of by-lined articles growing longer. It’s a win-win, all the way around.

The CAB producer communications division typically hires for summer and school-year internship positions in the fall of the year. Learn more here.

Opportunity for beef progress continues

Record number join virtual Certified Angus Beef^® conference

by Crystal Meier

September 29, 2020

To those raising beef, this year’s opportunities might look similar to the past. But for those in the business of selling the protein? The horizon looks quite different.

More than 1,100 people from 27 countries gathered online for the Certified Angus Beef ^® (CAB^®) Annual Conference last week, a record attendance for the event, to explore the possibilities.

Ranchers, meat packers, distributors, grocers and restaurateurs together in a virtual room made the supply chain feel smaller, each seeking go-to-market strategies to deliver high-quality beef to consumers.

“As we look at the COVID-19 impact, it hasn’t necessarily changed consumer demand for quality beef,” said John Stika, CAB president. “It just changed dramatically where and how they look to access it.”

Even with a pandemic recession about, the brand will end 2020 with more than a billion pounds sold.

“You have to be amazed, when you think of what we’ve gone through, that demand would stay this strong,” said Randy Blach, CEO of CattleFax. “And we’ve done it basically with one hand tied behind our backs.”

When public health ordinances shifted diners from foodservice to retail, it created one positive unintended consequence: consumers got more comfortable in the kitchen.

This creates retail opportunity, said Chris Dubois, senior vice president of protein for data analysis firm IRI. He encouraged marketers to marry tools with sales to keep beef at the top of the grocery list. CAB offers Roast Perfect, an app that shares how-tos, recipes and cooking inspiration.

Dubois said online food sales grew 50% to 60% this year, while meat e-commerce doubled.

“The retailers, processors and packers who get e-commerce right are going to have more success than those who ignore the trend,” he said. “This is where you’re really going to see the separation in the next three years.”

International business is slowly gaining momentum again, after an optimistic start to 2020.

“We feel like the fundamental demand for U.S. beef has remained quite strong in our key markets,” said Joe Schuele, vice president of communications for the U.S. Meat Export Federation. “For the global meat trade, especially high-end products to reach full potential, we need to return to normal economic activity.”

The brand continues to grow relationships, and highlighted personalized marketing tools such as French and Japanese versions of its logo and a new website for Spanish-speaking consumers, CertifiedAngusBeef.lat.

The CAB Prime brand extension offers another growth opportunity.

“Is there enough high-quality Prime in the marketplace to build a business around?” Blach asked. “The resounding answer is yes.”

Prime beef production used make up only 2% to 3% of beef, but now makes up nearly 10% of the annual supply from fed cattle, or 2.6 million Prime carcasses.

In the past two decades, beef’s market share of consumer spending also grew. It makes up nearly half of the dollars spent on proteins compared to 40% in 1999.

Building on that momentum, CAB launched its consumer loyalty program in February. Steakholder Rewards^™ invites customers to interact with the brand and earn rewards for beef purchases.

While the foodservice division works harder than ever to sell much less, CAB facilitated discussions on keeping quality while cutting costs, offering up ideas such as live training, menu ideation and using value-added products.

“When I look at what the people are doing to drive their businesses forward during difficult times, whether cattlemen or restaurateurs, it’s really exciting,” Stika says. “And we’re just glad to be alongside them, helping to drive momentum.”

Remaining relevant in an ever-changing marketplace requires adaptation. Attendees learned about updates to the brand specifications and sustainability initiatives. CAB honored five cattle businesses for their commitment to quality, including the first-ever sustainability award, and they celebrate success in each segment of the business.

“This brand was started to create value for everyone that produces and touches it through the production and merchandising chain,” Stika said. “As I look at where we’re at today, I think we’ve been able to re-center on the things that are important to ensuring value moving forward for our partners.”

Meating the Need

By: Nicole Erceg

It was the hardest day in the restaurant’s 25-year history.

“We had to let 40 of our 48-person staff go,” said Russ Loub of Little Apple Brewing Company in Manhattan, Kan., calling it the worst day of his life. “It was so hard to say goodbye, but we knew it was the right thing to do. It was the only way to get our people the help they needed.”

COVID-19 protection ordinances shut down the restaurant business nationwide. The hard days aren’t over, but while many restaurants still sit dark, the magic from within lives on.

New Summer Plans

On March 9, Chef Vinnie Cimino opened his new restaurant, Summer House, on Lake Erie in Cleveland.

“It was nonstop go, go, go great times,” he reflected. “It was one of the greatest restaurant openings I’ve ever been a part of.”

Six days later, Ohio closed its restaurants. Less than a week of profits is no time to build up a rainy day fund, so he used the food at his fingertips to keep his team fed. What began as feeding his team quickly evolved into a new non-profit: Cleveland Family Meal. The organization is feeding hospitality workers in the Cleveland area, many who live paycheck to paycheck, providing them an opportunity to stock up on food and other household supplies for free.

Cimino says the non-profit created out of necessity will continue to feed people after coronavirus is a distant memory.

2020_feature_meating-the-need_Republic-Grille-in-Spring-Texas-and-Sysco

A Taste of Home

Stranded in the Miami airport 4,500 miles from home, 200 Argentinian travelers just wanted their own bed and a hot meal. As the novel coronavirus spread across the world, borders closed and left flights home impossible.

Chef Carla DiLorenzo of Los Tanitos – Restaurante Argentino couldn’t get them to Argentina, but she could give them a taste of it. A meal of Certified Angus Beef ^® (CAB^®) churrasco sirloin flap with rice and beans provided familiar flavors that momentarily made the feelings of desertion and chaos fade away.

DiLorenzo didn’t stop there. Like many chefs, her superpower is the healing power of food. She also cooked up a feast for the local Baptist Hospital workers, offering a Latin-inspired bite of hope.

Meals on the Bus

On a normal day, Chef Joe Urban leads a team that feeds kids in 101 schools in the Greenville, S.C., school district. Many would get their only meal of the day from his kitchens.

When schools closed, he took his lunches on the road, feeding 20,000 food-insecure children every day. His logistics power crew includes nurses checking temperatures for safety among those in the food pickup line, and drivers leading a fleet of 90 school buses, getting meals to kids who can’t get to the central meal pickup station.

As for that team of more than 300 volunteers, Urban served up a meal of donated CAB brisket to thank them for continuing to get quality food to his most vulnerable students.

Meaty Masks

Fire, flair and flavor are traditional accessories for Chefs Kristina and Greg Gaardbo. Their Chicago Culinary Kitchen is a BBQ enthusiasts’ fantasy but their creativity lives beyond the kitchen in their sister business, Shockwaves Apparel.

As masks are hard to find and highly un-fun to wear, they began making custom versions, fashionable ways to stay safe for those in their culinary community. Creations include restaurant-logos, the image of licking lips, meaty smiles and more.

Fire up the Grill

The Republic Grille in Spring, Texas, is the local steakhouse favorite. The crisis didn’t stop them from doing what they do best. When their grills went cold, they teamed up with foodservice distributors Sysco Houston and Buckhead to provide protein to eight local fire-station crews and their families.

Picked up in squad cars and fire trucks, the meals included an 8-oz CAB top sirloin and fed more than 170 local firefighters.

2020_feaute_meating-the-need_Face-Masks-from-Shockwaves-Apparel

Little Apple, Big Hearts

March 17, 2020, is a day Russ and Kelly Loub will never forget. In the fray of parting with their staff, they didn’t dwell in the pain, but channeled it into action. The first step, a GoFundMe page to help provide their workers financial aid, quickly raised $12,000. Then, they ceased carryout orders to create care packages, emptying their freezers to feed the team that normally serves Little Apple Brewing Co. diners.

The restaurant, an award-winning beef industry partner and longtime CAB licensee, celebrated its 25^th anniversary with a silent dining room.

“I just hope we can survive this,” Loub said.

They’ve shifted their business, creating LABCo Market, playing off the restaurant’s acronym. Having launched a self-build website, they continue to serve up quality proteins, offering a curbside experience.

“Retail meats were always something we wanted to do,” said Russ, even though this wasn’t how he’d planned on getting it done. Nevertheless, the man who calls sausage making “therapy” keeps searching for ways to get his team back in business and selling the best Angus beef.

Heroism isn’t a word any of these foodservice innovators would use to define their acts of service. In the hospitality industry, serving others is simply the creed. Taking care of people through the power of a good meal, it’s just what you do.

Each is proof that even in times of crisis, restaurants still bustle with activity filled with quality beef and great people, if you just know where to look.

Originally ran in the Angus Journal.

Misaligned Cattle Markets and Record-high Carcass Weights

by Paul Dykstra | Dec 11, 2023

Few things in cattle market trends are entirely predictable but the fact that carcass weights peak in November is as close to a sure bet as one could identify. Genetic selection for growth and advancing mature size has fueled the long-term increase in carcass weights.

Credit End Meats With CAB Value-Add

by Paul Dykstra | Nov 22, 2023

We focused on fourth-quarter middle meat demand as a beef price driver in the last edition of the Insider. This is certainly the case in the current data as rib and tenderloins are pricing near their annual highs. However, a look at annual price trends across the beef carcass shows increasing contributions to CAB premiums from both ends of the carcass.

Middle Meats and Supply Driving Fourth Quarter Spreads

by Paul Dykstra | Nov 8, 2023

At the retail level, November brings a brief shift in focus, away from beef to turkey and ham, for Thanksgiving meals. Turkeys are the classic “loss leader” item in grocery stores during November as retailers practically give them away to lure a volume of shoppers to spend on the high-margin center of the store goods.

2019_feature-header_priming-retial-demand_PrimeCase007

Priming retail demand

By: Steve Ringle

“What’s the percentage of cattle grading Prime?”

A lot of people still say 2%. Calculated against the annual harvest of all cows, bulls, steers and heifers, it was even less than that for decades, but it’s more relevant to note the share of fed steers and heifers from 1997 to 2006 was 2.8%.

As that number crept up to 3, then 4 and above 5% in 2016, even when it blew the doors off in 2018 at 7.8% Prime with a few weeks last fall at near 10% of the mix, a lot of people still were still thinking 2%. Those people included retailers.

If they ever thought of Prime, it was as some exclusive, mostly inaccessible product for somebody else’s business model.

I work in business development for the Certified Angus Beef^® (CAB^®) brand, helping to find opportunities in the market that might spell success for our thousands of partners around the world. I watch trends like that rising “Prime rate,” and have been a bit amazed with what our retail division has been able to get done.

We’re creatures of habit. Those Prime percentages held for so long that folks just said, “Well, we know how much there is, and it’s not going to change.” So when the Prime grades started to run stronger and stronger, we needed to create a tremendous amount of awareness within our licensee base.

We knew it was coming on strong when it got to 5% and began putting more focus on this category in our conferences and seminars, not to mention the countless conversations that our executive account managers had with folks directly involved in the day-to-day at our retail partners.

First we brought the subject up: Prime is getting to be a real opportunity. Then we brought the marketing materials and training. We empowered them to sell, and sell they did.

So far this fiscal year, CAB licensed retailers have doubled their Prime sales over last year. Talk about demand for high-quality beef! They are responding to it and building it (see graph).

2019_feature_priming-retial-demand_primegrowth_2019

As a result, Prime sales went from dismissive assumptions not long ago to a 5-million-pound increase in the first seven months of the year. Our retail partners are committed to this product and have it in their case every day of the week.

Five year ago, we wouldn’t have been able to sustain the demand we’re seeing today. We’ve had some very committed Prime partners for a long time – Reasor’s in Oklahoma for example – but we’ve never seen it sold across major retailers coast to coast.

We’ve never had the ability to promote it across the whole country like we do now. With the supply of Prime doubling in five years, cattlemen have stepped up to the challenge in response to premiums and genetic capabilities, bringing a higher-quality harvest mix to market than ever before. That allows us to bring on new customers who haven’t experienced CAB Prime until now.

Growth in that brand extension was an occasional thing from its start in 2000 until the last few years. Now it’s fueling an explosion in retail growth overall. CAB product sales are up across all divisions so far this fiscal year, but as summer begins we have retail making up about half of that growth, nearly 10% higher year-over-year. That’s double the tonnage of foodservice growth for the same period.

At retail, ad features are the biggest drivers of meat department sales. Perhaps you open the grocery store flier in your mailbox and notice when beef makes the front page. When CAB gets top billing, we shoot emails around among our sales team and talk about it in the hallways here in Wooster. It’s a big deal.

While beef prices are pretty stable right now, our retailers definitely have stepped up to the challenge of featuring. Many of them have different quality levels they could lead with on the front page, but the fact that they’re choosing to lead with quality rather than lowest price shows us their customers appreciate that quality.

There have been very few additions to our 4,000-store licensee base at retail this year. Aside from one new Texas chain, most of that 10% growth has been from long-term relationships. The vast majority of our Top 20 retailers have been with us for two or three decades, and I think that’s a testament to what your brand is able to do for them. They haven’t had a reason to leave.

If you’ve been buying higher marbling bulls, paying attention to all the details as you raise their calves, partnering with or marketing them to people who care about quality…then you are part of this long-term insurance policy. You’ve given our retail partners the quality they need to sell, and that consistency keeps customers coming through their doors. That keeps them at our doors. That keeps your next buyer at your doors.

As the supply of high-quality beef continues to rise, we’re working hard to make sure demand keeps pace. We want you to keep seeing the rewards. Let’s just say retail is pulling their weight this year.

Originally ran in the Angus Beef Bulletin.

More Than Steak and Potatoes

by Morgan Boecker | Mar 14, 2023

Yesterday’s steak and baked potato is today’s beef brisket from the restaurant downtown. The food scene is changing, driven by a new age of consumers who want more. They seek new flavors and attributes on the packaging, but still expect beef to taste great.

Meeting Demand with Better Beef in 2021

by Kylee Kohls Sellnow | Nov 4, 2021

More than forty years after selling the first pound of branded beef on October 18, 1978, Certified Angus Beef continues to deliver for consumers and producers. The brand closed fiscal year 2021 with a few new records and another billion on the books.

The cattle calling

by Kylee Kohls Sellnow | Oct 4, 2021

Telling their story to the cattle curious was awkward at first for John and Gaye Pfeiffer. Their dedication to teaching and connecting with those further down the supply chain earned them the 2021 CAB Ambassador Award.

How and why the brand grows

By: Clint Walenciak

When the branded beef company you own sets sales records every year for decades, anyone might start taking that for granted. Growth is not guaranteed. Let’s take a look at where the extra branded pounds come from and how to keep them adding dollars to your bottom line.

Really, it’s best to break it down into the three primary components of growth. One, our licensed packing plants can process more cattle, those fed steers and heifers coming through the system. Second, we’re seeing a higher percentage of those cattle receiving an “A” stamp, which simply means they came through the packing plant with a predominantly solid black hide coat. And then the third component is the quality performance of those cattle and their ability to meet the 10 carcass specifications for the brand.

We’ve been in a pretty unique frame lately. Sometimes we grow on the basis of just one of those elements; sometimes it is a combination of two. But in each of the last four years, all three of those components increased, as the overall supply of fed cattle rebounded from its prior downward trend that had extended back into the last decade.

When we look at those three avenues by which we can grow, and chart them since 2015, we can see four year-over-year comparisons and a tremendous 15% increase in total fed cattle harvested through the system over those years.

We’ve seen about a 6 percentage-point jump in the share of those cattle that are qualifying as Angus and Angus cross during that time frame, to about 67% of the harvest today. Compound that with about an 8 percentage-point jump in the Certified Angus Beef^® (CAB^®) acceptance rate, which is the share of those black cattle meeting all the brand standards. We’re at about 36% CAB acceptance as we look at things in late summer 2019.

These changes are the result of breeding and management decisions producers have made in response to market signals. As you rebuilt the herd, it’s no coincidence nor even a big surprise that you were able to grow all three CAB components of growth in those years. But cattle numbers are starting to level out to an annual harvest of just above 26 million head.

This is the biggest supply of high-quality beef North America has ever seen, so we are sitting on the biggest supply of high-quality beef we have ever seen. We may see yet another year of at least some growth across all three components, but things are changing. Challenges are on the horizon.

In the final reckoning, the 2019 harvest count may get to 26.1 or 26.2 million head, up about 1.5% over last year, and that’s what we might expect from a typical cattle cycle. Percent black is on a similar trend line but could pull back to just a tie with last year. The CAB acceptance rate is where we still maintain a little bit of momentum as we’re realizing the payoff from increased use of higher quality Angus genetics in recent generations of beef cattle.

Even so, that relatively steep upward trend can’t be maintained. The influx of higher quality genetics to rebuild after the drought forced severe culling early in the decade already may have exerted its primary impact.

We could see the rate of growth in CAB acceptance moderate from what was 2 to 3 percentage points to less than 2 points compared to 2018, and a bit less moving forward. Much depends on the breeding decisions—will Angus producers take stock of the analyses and now proven experience that marbling is a free trait to add?

I’m talking about the lack of correlation between other traits of economic importance and the highly heritable marbling trait. It costs nothing in the sense that producers need not give up any other piece of the profit pie. In fact, maintaining the selection pressure to include marbling can pay dividends as you keep building the brand that leads the beef industry in paid producer premiums.

2019_feature_how-and-why-the-brand-grows_2018_Robertson_Missou_NLE-54

Consumers obviously like what you’re doing, and that’s been fun to watch.

Brand sales over those last four years have surged by about 43% to 44% overall.

When we dive down to look at just the CAB Prime brand extension, we might keep in mind those sales had doubled in the 10 years leading up to 2015. Since then at these higher volume levels, sales tripled in only four years, or we could say demand was up 200%.

Even when we look at commodity beef, more and more we’re seeing retail accounts switch away from USDA Select to offer only Choice grade.

We’ve talked about three main components, but perhaps the most important component is our mindset. This job isn’t over.

As much advancement and increases as we’ve seen in quality beef production, especially since 2015, it’s no less important to continue that momentum. That’s because we’ll no longer have the growth in total herd size and annual fed-cattle harvests to grow supply enough to meet our documented growth in sales.

We’re really going to have to rely on the use of those better Angus genetics to get us more improved commercial Angus and Angus-cross cattle. And then, we need the quality focus in management across all sectors so that a growing share of future calf crops keep qualifying for the brand’s carcass specifications.

That’s how we keep up the win-win-win from ranch to consumer.

Originally ran in the Angus Beef Bulletin.

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Registration opens for Feeding Quality Forum webinar

by Maeley Herring

August 3, 2020

On-target information powers the economy, especially the cattle sector in the challenging world of 2020.

Every year since 2006, cattle feeders, ranchers, educators and allied industry leaders have gathered at the Feeding Quality Forum (FQF) for thought-provoking conversation and networking.

This year offers the same range of topics and interaction – but in a virtual setting.

“You won’t get to shake hands with old friends and new, but we’re still bringing together some of the great minds in the beef industry to present the kind of information folks have come to expect from the Forum,” says Kara Lee, production brand manager for the Certified Angus Beef^® (CAB^®) brand.

The 15^th annual conference as webinar is being condensed to a few hours on Aug. 25 and 26 that will offer key marketing insights and unique perspectives on the beef supply chain’s future.

Many feedyard managers and staff have attended over the years, but Lee says FQF is a great resource for everyone in beef cattle production and marketing.

“Along with cattle feeders, we are targeting commercial cow-calf producers who are retaining ownership, interested in some progressive marketing of their own, or just learning how to raise better beef,” she says. “It’s also a great opportunity for folks in allied industries – anyone who touches the cattle feeding business.”

2020_news-release_FQF-Registration-Opens_Logoed-feedlot

Dan Basse, president and analyst for AgResource Company, will kick-start the webinar Tuesday afternoon with an overview of commodity and financial markets around the world. Back by popular demand, “he brings some perspective on how what’s going on globally can impact our business here on the cattle production side,” Lee says.

Dustin Aherin will follow with “Hindsight 2020.” The RaboResearch vice president and animal protein analyst will show how COVID-19 first affected the cattle industry and what’s next for cattle procurement, processing and merchandising, post-pandemic.

“We know aftereffects of the market disruption will be top of mind for cattle feeders for months to come,” Lee says. “We want to bring in someone who can provide some really excellent perspective on that moment in time and what we can expect looking forward.”

Later that afternoon, FQF will recognize noted cattle feeding research scientist John Matsushima as the 2020 Industry Achievement Award winner for his long career of dedicated service.

CAB’s Paul Dykstra, beef cattle specialist, will lead off Wednesday’s events with ideas on progressive feeder cattle marketing. Focused on maximizing cow-calf investments, Dykstra will address alternative ways of adding value to high-quality calves when retained ownership is not feasible.

“We know that feeder-calf marketing is not a one-size-fits-all topic,” Lee says. That’s why Dykstra offers insight into several types of commercial operations.

Randy Blach, CattleFax CEO, will wrap up the conference with a 20-year forward look at the industry’s future. He brings his extensive knowledge in market trends and analytics to provide unsurpassed insight on what to expect in the next couple of decades.

At the end of each presentation, attendees will have the opportunity to ask questions directly to the speakers.

Feeding Quality Forum will be a free resource to those who register, thanks to its sponsors: AngusLink, Diamond V, Feed-Lot Magazine, Micronutrients and Zoetis.

Registration is now open at www.feedingqualityforum.com, where you can also find the full agenda and learn more about the speakers.

“Feeding Quality Forum is just two hours a day, for two days,” Lee says. “At no cost other than your time, we feel like it’s a great investment to access and interact with some of the best industry leaders available.”

A translation de carne

CAB opens new doors in Latin markets as cultural insider

By: Chelsea Dinternman

Dressed in fashionably bright colors, she greets you with a warm hug and a bright, “Hola!”

Ana Luisa Verba is full of personality and passion, especially for Latin American cultures and premium beef. While at the Certified Angus Beef ^®(CAB^®) partner Sysco for more than 10 years, she was such a fan, people thought she worked for the brand long before she was hired in 2018.

Enthusiasm for CAB matched an opening there to develop new markets.

“Everything just came together,” says the current assistant director of marketing for Latin markets. Her goal is not without ambition: To change the way Latin and Hispanic people think about beef.

“Our people LOVE meat,” Verba says. “We typically eat end meats, but we can also appreciate a good steak, and don’t hesitate to provide the very best for our families and friends.”

The U.S. market alone presents a vast opportunity to drive demand for high-quality beef, with estimated buying power of more than $1 trillion.

“The Latin market is everywhere. If we put it on a map, every corner of the United States is touched by the culture,” Verba says. “Increased connectivity has also helped spread flavors from Latin America and allows chefs to share their knowledge.”

The opportunity continues to widen beyond our borders to the South American tip and “hopefully Spain, too,” reaching out to consumers and those who want to know how to market to that segment.

CAB has focused on Hispanic markets for decades, but Verba, born and raised on Mexico’s Sur peninsula in Baja California, brings a deep understanding of cultures and traditions. Her parents, a teacher and a pediatric nurse, instilled the importance of living a meaningful life filled with learning and appreciation for other cultures.

“Our vision for Latin America is about being the leader for this segment, providing the resources they need and training them to become beef leaders themselves,” she says. “Also, it’s about being culturally relevant, which I think is an important difference.”

It’s much more than just translating the brand’s current English marketing materials.

“I challenge our team to be more intentional in where and how we focus on the nearly unlimited possibilities of this market,” she says.

Verba embodies this vision in every part of her day, bringing CAB’s cultural relevance to new sectors through her own perspective on those cultures, creating more targeted marketing materials to better resonate with those of Latin heritage and celebrate their “uniqueness.”

“Not everything that we create for our broad audience is going to be translated to this market; it’s more about trans-creation,” she says. “We’re recreating and designing original content because it allows for more intentional resources that connect and resonate with this audience.”

Constantly moving and innovating, she never misses an opportunity to take advantage of a teachable moment. You’re just as likely to learn something about the Spanish-speaking world at lunch with her as you are at one of her many training sessions.

“In Spanish or Latin cultures, we say before you eat, like a bon appetite, buen provecho,” she might explain before digging into her salad.

Her knowledge of how to reach these sectors is best seen in the training sessions she holds across the U.S. and Latin America.

“You can go from giving a Latin market-opportunities analysis to teaching them about the attributes of our brand for those who are speaking Spanish,” says Verba.

“If we are going to call it ‘Latin training’ we must bring elements for the Latin segment,” she explains. “We must focus on not only the parts that are going to show applications but give real examples of real objections they’re having in those markets.”

Verba’s passion for the brand is infectious to brand partners.

“The attendance on our Latin trainings are high,” she says. “They care about the brand so much. Once they are aware and they’re educated, they really take pride on it.”

The ability to hear it in their own language and apply more directly targeted strategies to Latin consumers makes all the difference.

“They’ve invited us again to have additional training for their sales force, and the impact on sales has been tremendous,” Verba says, noting a domino effect. “We are starting to hear from partners who have not focused on this segment at a deep level. We are planting the seeds.”

One partner that participated in a multi-ethnic training program in Los Angeles increased their CAB product sales by 30%.

The trend is moving brand sales up and to the right, with plenty of growth still to be made. Verba and her team have big plans to expand markets further.

“We really want to continue to be pioneers and start basing in those markets that we have no base in, while attending to those challenges that are coming up and preventing issues if we can,” she says.

It might sound like a lot for just one person, especially when you factor in time for family and a long commute to the office, but Verba often travels and works from her phone, too. It’s busy for sure, but she wouldn’t have it any other way.

“I love what I do. I don’t see it as a job. I see it as a lifestyle,” she says.

Originally ran in the Angus Journal.

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