an overview of your brand: certified angus beef ® mark mccully director of supply development
TRANSCRIPT
An Overview of YOUR Brand: An Overview of YOUR Brand: Certified Angus BeefCertified Angus Beef ®®
Mark McCullyMark McCully
Director of Supply Director of Supply DevelopmentDevelopment
Increase the demand for registered Angus cattle…
The Brand’s Mission
Angus Registrations
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1960 1963 1968 1970 1975 1978
How?
… through a specification-based, branded beef program to identify consistent, high quality beef with superior taste!
Certified Angus Beef ® Brand Structure
• Owned by the American Angus Association• Not-for-profit marketing organization • Only own brand – NOT product• Licensing agreements with all production and
distribution channels• Revenue derived from commissions paid by
packers and processors • 85% of US packing base producing CAB®
Licensing Scope
• Feedlots
• Packers
• Fabricators
• Ground Beef Processors
• Further Processors
• Portion Cutters
• Food Service Distributors
• Retail Distributors
• Restaurants
• Grocery Stores
USDA Certified Beef Programs-In 2006*– 63 programs
*USDA G-Schedule last updated Nov-05
USDA Certified Beef Programs-2006
• 63 total programs• 48 have a breed in their name (46-Angus; 2-
Hereford)• 25 have Modest or higher marbling• 14 are “Angus” with Modest or higher marbling• 19 are USDA Select• 8 are “natural” or have natural extensions• 2 are USDA Standard/Commercial
Certified Angus Beef ® Brand Product Specifications
• Live specification – “Angus-type”– At least 51% black hide OR– AngusSource® tagged - NEW
• Eight carcass specifications evaluated by USDA/CBGA Graders:– Modest or higher degree of marbling– Medium or fine marbling texture– “A” maturity– Consistency: 10-16 in2 REA; < 999 lb HCW - NEW– Moderately thick or thicker muscling characteristics– No hump on the neck exceeding 2-inch height– Practically devoid of internal hemorrhages– No dark cutting characteristics
Certified Angus Beef ® Brand Growth
25
225
532
0
100
200
300
400
500
600
1985 1995 2005
Mill
ion
Po
un
ds
Pounds Sold by Division
Fiscal 2005*Cannot be assigned to a specific division
54.9%
33.8%
6.3%5.0%
RetailFoodserviceInternationalMisc.*
Delivering on a promise with…
• Superior eating satisfaction – flavor, juiciness, and tenderness
• Consistency
• Integrity
• Availability
• Marketing and Customer Service
Marketing Your Brand
Marketing Your Brand
Marketing Your Brand
Marketing Your Brand
Marketing Your Brand
Marketing Your Brand
Demand for High Quality Beef?
A Target: Mid-Choice or higher beef for the upscale domestic and export trade; must have superior eating qualities (tenderness, juiciness, and flavor). Future demand for this product will be approximately 25-30% of the market.
Dr. Harlan Ritchie, Distinguished Professor
The challenges ahead…..
• A branded beef category – many with “Angus” in their name
• SUPPLY!
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1960 1968 1975 1986 1996 2005
Angus Registrations by Year
Angus-type Cattle Identified
Fiscal Year (October 1 - September 30)
12.8
0
2
4
6
8
10
12
14
Million Head
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Carcasses Certified
Fiscal Year (October 1 - September 30)
1.99
0
0.5
1
1.5
2
2.5
Million Head
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Thank you!