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.

14. 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

15. Product Availability
Access more than 85% of North American fed-cattle slaughter
ADD Enterprises
E.R. Boliantz Inc.

16. Brand Offering

17. Work with every business segment
Rancher
Feeder
Packer
End User &
Consumer

18. 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)

19. Step 1
Live Animal Eligibility
• Only Angus-influenced cattle
• Predominantly (>51%) black-hided
• Nearly 65% of all fed-cattle are Angus-influenced

20. Step 2
Carcass Certification
USDA or CBGA Graders evaluate Angus-influenced
carcasses for the brand specifications

21. 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

22. 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

23. 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

24. 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

25. Pounds Sold by Business Type
46%
9%
FY-2013
*Tonnage not assigned to a specific division
32%
13%
Retail
Foodservice
International
Misc*

26. 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

27. 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

28. Marketing
& Sales
Strategy
Education
Public
Relations
Design &
Photos
Culinary
Our Mission: Your Complete Marketing Team
Web site
POS

29. 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

30. 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

31. Consumer spending
decisions are based on a
Price:Value
relationship.

32. When Making Purchase Choices
Taste Is Still King

33. The only sustainable flow of
dollars from which to
continue to build the beef
industry comes from the
consumer.

34. Simply branding an
inferior product and
charging a higher price is
asking for failure.

36. Brand Relevance Hierarchy
1. Consumer
2. Supply Chain
–
–
–
–
End-User (Retailer, Distributor, Restaurant, etc)
Packer
Cattle Feeder
Commercial Cow-calf Producer
3. Brand & Association

37. 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

38. Mission Statement
Increase demand for
registered Angus cattle
through a specificationbased, branded-beef
program to identify
consistent, high quality beef
with superior taste.

39. Angus beef at its best ®