Spotlight On: Catelli Brothers

Catelli Brothers’ pitch to retailers is pretty simple: Carry more veal and lamb products, preferably from them, and you will make more money.

Tony Catelli, who is the president and CEO of the Collingswood, N.J.-based company, says it is not just because veal and lamb sales are performing pretty well and that they offer good margins. It is also because these products attract a distinct type of consumer, one that usually has more disposable income and spends money on a wide range of upscale merchandise.

“That is the plus side of carrying our products,” he says. “The consumer who is coming to your store for veal and lamb will likely purchase other premium items, and that means more sales and profits for you.”

Catelli comes across as a spokesman for the overall veal industry, not just Catelli Brothers. To paraphrase Rodney Dangerfield, veal, in particular, gets no respect with many supermarket chains across the country. Catelli thinks that is unfair, and more importantly, is costing retailers profit and opportunity. He touts the simplicity of preparing veal and lamb products, the many different cuts available, that many cuts are affordable and that they are healthy alternatives to other meats.

“It is so important for us to educate consumers—especially younger consumers—about the many benefits of veal and lamb,” Catelli notes. “Our website, for example, offers a lot of ideas for consumers and we work with retailers to get the message out as much as we can. We ask that retailers feature these products in their advertising as much as they can to build awareness.”

Catelli’s plan also includes making sure that retailers utilize Catelli Brothers for their veal and lamb needs. He makes a convincing argument, noting that the 35-year old company is North America’s largest producer of veal products, and one of the largest for lamb products. The organization notched sales of around $325 million last year, an impressive 12.5 percent increase from the previous year, Catelli says. The company offers American, Australian, New Zealand and Quebec-grown lamb, as well as its core product line of milk and grain-fed veal from its fully integrated system.

The health and well-being of its animals is paramount to Catelli Brothers. “Our organization has our own staff of vets and feed technicians who make sure the calves are raised properly and that we meet the highest standards in veal production,” says Catelli. The company’s website notes that Catelli has earned Level 2 certification by the Safe Quality Food Institute (SQF Code)—which is one of the highest standards in the food industry—confirming its commitment to producing safe, quality food. The company also has Arrowsight 24/7 third-party video and audio monitoring to ensure its employees abide by humane animal handling practices. 

“Our goal is to offer the best quality and most consistent products, as well as the best service, to our retail customers,” Catelli says, noting that the company offers more than 100 SKUs of veal and lamb products. “Our pitch to retailers is that we sell a branded Catelli program, designed to fit their specific needs. We can create planograms to satisfy their consumers’ demands through our ‘fix to mix’ program that offers a variety of cuts at prices that meet every level of affordability.
Calling it “farm-to-flavor” Catelli offers products that are pre-packaged, pre-seasoned, marinated and pre-priced, as well as seasonal programs during crucial times of the year. “Frankly, there is nothing we cannot do in fulfilling our retailers’ needs,” he says. “Many retailers do not have butchers available. We want to make sure that they can still offer a full variety of products. Let us assist you in managing this category.”

Catelli wants retailers to help too. Besides suggesting a visible location in the meat counter for veal and lamb—preferably placed next to each other—he asks retailers to re-examine their pricing strategies with these meats. Many merchants, he says, increase margins on these meats to as much as 40 percent to 50 percent, making them unaffordable for some consumers and increasing the shrink rate. Catelli recommends that retailers look at margins around the 25 percent range, which should bring new customers to the categories and eliminate most of the shrink issues. “I predict they will be very happy with the results,” he adds.

Besides the quality of the meat, Catelli emphasizes the experience the company possesses. He and his brother Jim founded Catelli Brothers in 1981, but their dad was involved in the veal and lamb business since the mid-1940s. In fact, a photo of their dad, Anthony Catelli, Sr., intently looking at livestock at an auction in the 1950s is prominently displayed at the company office.

“My brother and I borrowed $50,000, bought two used trucks and rented a cooler in Trenton, N.J.,” Catelli says. “We gained a lot of experience working with our dad and that helped us grow and succeed.”

Their first big break on their own came in 1982 when a veal supplier in Whippany, N.J. offered to supply the brothers. Being located just outside of Philadelphia did not hurt either. Catelli notes that his facility is within hours of five of the largest metropolitan areas in the Northeast, though the company now ships to retailers in 40 states. He also acknowledges a special relationship with Acme, the Philadelphia-area supermarket chain. “My family has a 46-year history with Acme Markets. We greatly appreciate the relationship, and they have always been a great partner in developing new products,” he says.

Of course, history and experience alone does not sell veal and lamb. Catelli is fast to note that the company is investing in its infrastructure to stay ahead of the curve.

Catelli Brothers is part of The Fontelli Food Group, which owns more than 85 corporate farms and operates both the largest veal processing plant and abattoir in Canada. It also manufactures their own feed in two plants—located in Quebec and Wisconsin. Quebec-based Fontelli Food Group employs more than 800 workers at its three companies: Delimax Farms, Montpak International and Catelli Brothers.

In the last five years alone, the Fontelli Food Group has invested $25 million in a new group-raised veal farm in Quebec. Earning SQF-certification in all three of its plants required an additional investment of over $6 million. The world’s first SQF certification for milk-fed veal production was awarded recently to Fontelli’s Delimax Group in Canada.

“We realize that it is all about going to our customers and meeting their expectations,” says Catelli. “They have come to expect a lot from us because of our great track record. We want to give them the very best in the future as well. That is our goal.”