WOOSTER, Ohio -- The successful introduction of more value-added products helped propel growth in the Certified Angus Beef Program run by the American Angus Association here to a 9.7-million-pound annual total, up 58% from the prior year. It's the 10th year that growth has averaged at least 24%, said officials.
Standout products included a precooked sirloin steak with bourbon sauce, prepackaged deli meats and a variety of heat-and-eat entrees. But it was ground beef, including case-ready product, that proved to be the leading factor, they noted.
"I think the whole industry has a very strong focus right now on case-ready. It's probably one of the hottest topics right now at the retail level," said George Romig, director of the CABP's retail division. "More and more retailers are taking a percentage of their business to case-ready and the first, most likely, option is ground beef, because of some of the negative publicity about E. coli."
Increases in sales of red meat also made 1999 a banner year, according to Romig. While the emphasis has traditionally been placed on middle cuts used for steaks and chops, a shift in focus to end cuts like chucks and rounds has paid handsome dividends.
"Our program has always been successful with middle meats. But the last few years, there have been several retailers around the country who've seen a value in the end meats, and have really moved more into selling those cuts," he said, describing how the organization has helped build demand for particular cuts.
Retail sales of certified Angus beef continued to dominate the program, garnering 56% of sales, vs. 30% in the food-service segment and 14% in the international market. Romig said that retail usually receives higher numbers, because it has a better opportunity to sell more of the carcass than the other segments.
"[Retail] moves about 70% end meats and 30% middles, where food service is a little closer to 50-50," he said, noting that ground beef is classified by the CABP as an end meat.
Retail volume was boosted through several promotions organized by the CABP. One year-long campaign offered retailers point-of-sale materials on five seasonal themes, which tied signage and recipes with use of certified Angus beef products. According to Romig, one promotion that ran around Valentine's Day -- called "Love at First Bite" -- featured middle meats that were in good supply, but were moving slowly during the cold weather months because of their grill-friendly profile.
A new mascot, Certified Clyde, also assisted in promotional efforts by spurring consumer recognition of certified Angus beef products. Sporting a blue denim vest and oversized cowboy hat, Clyde appeared in many of the 42 CABP-sponsored programs.
In-store education classes conducted by the CABP for retail management and meat department associates enjoyed its second year of success. Romig said the Creating Consumer Confidence program covered topics such as brand information, nutrition, food safety and customer service.
"Where we spend the largest part of our time in travelling is working with retail chains around the country that are licensed to train their help at store level in regards to the aspects of the CABP," he said.
When retailers join the program, the CABP usually requires meat managers to take the course, though anyone else can attend. "The more people we can train, the better off we all are," Romig said, adding that classes range in size from 20 to 100 people, depending on the retailer.
The number of supermarkets licensed by the organization to merchandise certified Angus beef products grew in 1999 to 3,506 stores. Albertson's, Boise, Idaho, licensed the most locations last year, with 148 stores, bringing the chain's nationwide total to 475. Other commitments were made by Raley's, Sacramento, Calif., with 23 stores; Weis Markets, Sunbury, Pa., with 23 stores; Schnuck Markets, St. Louis, with 22 stores; as well as 260 other chains and independent retailers, according to Romig.
Angus cattle are first identified by employees at select processing plants, and are monitored by inspectors from the U.S. Department of Agriculture, Washington. Cattle must have at least 51% of a predominantly solid black hair coat to be eligible for certified Angus status. The CABP uses eight other criteria for cattle to receive the organization's certified stamp: modest or higher degree of marbling; "A" maturity range; USDA Yield Grade 3.9 or leaner; medium to fine marbling texture; moderately thick or better beef muscling; neck humps of no more than two inches; absence of rib-eye muscle hemorrhaging; and absence of dark cutting characteristics.
"Only one out of six carcasses evaluated meets all eight of the specifications and is marketed as certified Angus beef under our program," said Romig.
There are a total of 35 branded beef programs run by a variety of processors, but the CAPB is by far the most popular, capturing 65% of U.S. sales, he said.
