CAB posts 17.2% sales increase in FY 2010
November 19, 2010
by Meat&Poultry Staff
WOOSTER, Ohio – Certified Angus Beef LLC (CAB) recently closed its books on fiscal year 2010 with 17.2% growth.
The CAB brand provided assurance of consistent value for dollars spent and grew its business across all sectors in a fourth-consecutive year of record gains. From Oct. 1, 2009, to Sept. 30, 2010, product sales topped 777 million lbs., shattering last year’s mark by 114 million lbs.
“That’s more than our total sales for this company’s first 10 years combined, thanks to the commitment of nearly 14,000 licensees worldwide,” said John Stika, CAB president.
Sales of high-value middle meats, such as strip steaks and tenderloins, were up 16%, with end meats up 16.1% and grinds up 24.3%. That increase in steak sales helped lead resurgence among foodservice partners, CAB LLC relays. They enjoyed a 10.8% rebound from last year overall with divisional sales of 223 million lbs.
Retail continued to lead all divisions with 52% of sales; its 404 million lbs. represent 17.3% growth compared to 2009. Although new business figured in, same-store sales were up 10%.
Licensed partners outside the US achieved nearly 15% greater sales at more than 80 million lbs., a nearly full recovery from the disruptions of 2003, when doors were closed to many international markets. The value-added products division record sales of 16 million lbs. were up 10%, led by deli items such as corned beef and pastrami, up 34%, while more recently branded products such as meatballs and meatloaf grew by 51%. Sales of the CAB brand’s Prime and Natural extensions were up a combined 7.4%.
Upward trends were also noted on the supply side, where 64% of US cattle were Angus influenced. Nearly 15 million head were identified, while those certified rose to 3.5 million – a 24% increase over the previous year. A 23% acceptance rate pushed a five-year trend of increases to new levels, proving that quality-minded ranchers are setting the bar higher and meeting it.
“Our response to record growth is to push ourselves, our partners and our consumer advertising to pull more of this proven product through,” Stika said. “That will create more demand and drive more value for the Angus cattlemen who own the brand.”
CAB LLC said its Certified Angus Beef brand is “a cut above” USDA Prime, Choice and Select with 10 quality standards setting it apart. The first lb. of CAB was sold in 1978.