MONTHLY SALES RECORDS AND CATEGORY GROWTH Records were set <strong>in</strong> all but 3 months of fiscal <strong>2019</strong>; 6 months ranked among the top 10 sales months <strong>in</strong> the brand’s 41-year history. Powered by strong consumer demand and relatively steady market prices, sales records spanned product categories. Sales of premium steaks (middle meats), a perennial eng<strong>in</strong>e, grew by 4.2%. End meats were up 3.4%, and ground beef sales, boosted by the better burger movement, grew by 2 million pounds. Historically high availability of the most highly marbled product propelled sales of the Certified Angus Beef ® brand Prime product extension by 36.6%. Once marketed almost exclusively by foodservice partners, retailers from coast to coast took advantage of the opportunity to enhance their offer<strong>in</strong>gs and appeal to their most discern<strong>in</strong>g customers. (See related story, Page 27.) Consumer choice also drove sales of the brand’s Natural product l<strong>in</strong>e, raised on a completely vegetarian diet with no added hormones or antibiotics. DIVISIONAL SUCCESS Global sales outside U.S. borders reached an all-time high of 207.5 million pounds, demonstrat<strong>in</strong>g the universal appeal of top-quality beef among diverse cultures and markets. Lead<strong>in</strong>g the way <strong>in</strong> growth was Japan, followed by Taiwan, Colombia and the Dom<strong>in</strong>ican Republic. FAMILY FARMERS’ FOCUS ON QUALITY BOOSTS DEMAND, BEEF COMMUNITY The family farmers and ranchers at the heart of the Certified Angus Beef ® brand cont<strong>in</strong>ued to build on a years-long focus on quality, rais<strong>in</strong>g more cattle that met the brand’s 10 exact<strong>in</strong>g standards. The rate of Angus cattle eligible to earn the brand rose to a record 35%, a collective improvement that translated <strong>in</strong>to <strong>in</strong>creased supply of 470,000 head. “That <strong>in</strong>crease is significant because it doesn’t happen by random chance,” said Stika. “It represents an entire community focused on quality, which came about directly through the economic signals generated by the additional demand for the Certified Angus Beef ® brand among consumers.” To put that trend <strong>in</strong> context, Stika noted that s<strong>in</strong>ce 1998, when beef demand was at an all-time low, the entire beef <strong>in</strong>dustry has experienced a $60 billion <strong>in</strong>crease <strong>in</strong> annual consumer expenditures. “Quality improved, and demand followed suit,” he expla<strong>in</strong>ed. “Certified Angus Beef ® brand, through the efforts of its partners, has been a mean<strong>in</strong>gful part of that success. Through their commitment, they’ve helped direct the entire <strong>in</strong>dustry, draw<strong>in</strong>g it closer to the consumer. As they do so, they’re provid<strong>in</strong>g a more susta<strong>in</strong>able future for all.” Represent<strong>in</strong>g 43% of total brand sales, the retail division grew for the fourth consecutive year: up 8.8% to achieve an all-time record of 537.5 million pounds. In addition to Prime product driv<strong>in</strong>g sales, retailers <strong>in</strong>creas<strong>in</strong>gly chose to feature the brand rather than a lower-priced prote<strong>in</strong> option on the front page of their circulars. Creative seasonal promotions focus<strong>in</strong>g on summer grill<strong>in</strong>g, tailgat<strong>in</strong>g and holiday roast<strong>in</strong>g also captured consumers’ attention. Mark<strong>in</strong>g a decade of cont<strong>in</strong>uous, consistent growth was the foodservice division, which achieved a 4.6% <strong>in</strong>crease. Upscale f<strong>in</strong>e d<strong>in</strong><strong>in</strong>g and steakhouse bus<strong>in</strong>ess, along with the gourmet burger and barbecue categories, drove this growth. Led largely by the efforts of licensed distributors, restaurants that actively promoted the brand on their menus <strong>in</strong>creased sales by an average 10% over the previous year. Also for the 10th consecutive year, sales of branded valueadded products set a new record, exceed<strong>in</strong>g 33 million pounds. The jump was driven by processors respond<strong>in</strong>g to <strong>in</strong>creas<strong>in</strong>g consumer demand for high-quality convenience items. Eighteen of 21 product categories experienced growth, led by foodservice accounts purchas<strong>in</strong>g mar<strong>in</strong>ated th<strong>in</strong> meats and smoked brisket, while retailers drove sales of mar<strong>in</strong>ated end meats.
Walter Angus, Hudson, Colo. <strong>2019</strong> <strong>Brand</strong> <strong>Update</strong> 9