A Movement Rooted in Quality

Over the past year, beef supply tightened by 3% and retail prices climbed to an average of $8 per pound. And yet, consumer demand for beef surged to a 40-year high. Despite challenges, demand for high-quality beef pushed on, driving sales for the Certified Angus Beef® brand to 1.235 billion pounds globally, marking one of the brand’s strongest years in its history.

“The brand’s success this year is the direct result of the hard work and innovation across our entire community,” says Certified Angus Beef President John Stika. “It’s their intentional efforts to win with Certified Angus Beef year in and year out that has allowed this brand to thrive over 47 years. And while we’re in an environment today that is more complex and competitive, there’s no doubt their collective efforts will continue to shape our business and brand to be strongly positioned to meet the growing demand for premium beef.”

This year marks the brand’s third best year, with a record-setting month in November and the brand’s all-time best sales month in March. April and May followed with strength heading into grilling season, landing in the brand’s top 10 for monthly sales. Consumer preference for the best beef supported record sales of Certified Angus Beef® Prime across all segments of the brand’s business – retail, foodservice, international and value-added – collectively increasing 9.7% to 55 million pounds sold.

Meeting Consumer Demand

Diners enjoyed Certified Angus Beef® brand offerings from fine-dining restaurants to barbecue establishments and burger joints, where foodservice partners sold more than 417 million pounds, marking the second-best year in the brand’s history for foodservice sales. Sales in March recorded an all-time record with 40.3 million pounds sold in a single month. Growth was fueled by middle meat sales increasing 3.3%; end meats increasing 8% and setting an all-time record; and Certified Angus Beef® Prime up 9%.

In the meat aisle, shoppers continued to reach for premium beef cuts, ground beef and value-added products. Despite higher beef prices, the brand’s retail sector sold 525.8 million pounds, with 9 out of the brand’s top 10 retail partners experiencing growth. More retailers offered premium grinds to their shoppers, increasing ground beef sales collectively by 6%. And Certified Angus Beef® Prime grew by 5.6% or 22.3 million pounds.

In retail, international, and foodservice, convenient and globally flavored cuts drove a 9.7% growth for Certified Angus Beef® brand value-added products like deli meats, hot pot beef rolls and shaved steak. This marks the fifth consecutive year of growth in the brand’s value-added sector, illustrating the need for premium, great-tasting products for time-crunched consumers and chefs. New brand research shows that 85% of Certified Angus Beef® brand shoppers are willing to pay more for Certified Angus Beef ® and Certified Angus Beef ® Prime deli meats and 80% would drive farther to purchase them.

Despite international trade dynamics and loss of access in key markets like China, brand partners had record sales in areas like Costa Rica, Dominican Republic, Honduras, Peru and Panama, resulting in 179 million pounds sold across more than 55 countries. Canada, South Korea and Mexico were the brand’s leading international markets for sales. Certified Angus Beef® Prime was also in high demand, showing a 20.6% increase. Again, proving the commitment to quality is truly a global movement.

With an expanded portfolio of products, Certified Angus Beef continues to deliver on consumer choice world-wide. While small in scale, Certified Angus Beef® Grass-Fed; Certified Angus Beef ® Natural; and Certified Angus Beef® Ranch to Table accounted for more than 3.2 million pounds collectively, reaching consumers looking for great-tasting niche beef products.

The Backbone of the Brand

“Our brand partners are sending a very loud, economic signal back to cattle country,” Stika says. “And ranchers are more focused on quality than ever before.”

Amidst the tightest brand supply in five years, this past fiscal year has been a defining year for quality beef production, too. Down 2.9% over last year’s record number of certified carcasses, cattlemen and women still produced 5.77 million certified carcasses. Brand acceptance rates hit an annual average of 37.6% acceptance rate, with 12 weeks reaching record highs of 40% or more throughout the year. Angus farmers and ranchers’ focus on quality led to a 3.6% growth in carcasses qualifying for Certified Angus Beef® Prime, setting a new benchmark for the brand’s highest quality offering.

“Tight supply will intensify over the next year, and we’ll have to work through those dynamics,” Stika says. “But, the value proposition for Certified Angus Beef is strong and only strengthening in the market.”

Consumers continue to prove their willingness to pay more for beef that will deliver a consistently good eating experience. And that is driving the movement toward quality.

The signals across the industry are clear. Protein, and specifically high-quality beef, is not just a having a moment, it’s becoming a movement. And it’s shaping the beef community, from dedicated farming and ranching families to end-users delivering on consumer demand.