CHB LLC Foodservice Marketing Experiences Tremendous Growth In 2011

KANSAS CITY, Mo. – Fiscal year 2011 was excellent for Certified Hereford Beef (CHB) LLC, posting the second highest year in volume at 40.5 million lb. sold. Foodservice was the big winner with 47% growth and a total of 11 million lb. sold.

“2011 proved to be a very successful year in both growth and exposure for the brand,” says Craig Huffhines, American Hereford Association (AHA) executive vice president. CHB LLC is a subsidiary of the AHA with its fiscal year ending Aug. 31.

This year also proved to be a success in both growth and exposure for the brand. Volume increased this past fiscal year by 6.4%. Total tonnage reached 40.5 million lb.

According to the Food Marketing Institute, 50 cents of the U.S. consumer dollar spent on food is spent at restaurant establishments. Even though the foodservice industry has seen a dip in consumer spending during the recession, CHB has witnessed tremendous growth across the U.S. in this category.

This year, CHB® licensed processors sold 11.3 million lb. of CHB into the restaurant trade, up 3.6 million lb. from a year ago – a 47% increase. The most impressive growth came from three Sysco Food Distribution centers located in Baraboo, Wis.; Minneapolis, and Nashville, Tenn.; and Kohls Foods located in Quincy, Ill. The Minneapolis center was licensed at the beginning of the fiscal year and marketed 1.2 million lb. in its first year of selling the brand. The Baraboo and Nashville divisions marketed a combined 1.35 million lb. this year.

Another highlight of the program this year was the licensing of Sysco Food Distribution in Sacramento, Calif. This new relationship in California has made CHB product available in Reno and Tahoe, Nev., and a large area of northern California. Finally, in its second year of selling CHB, Kohls Food Service located in Illinois grew its business by nearly a million lb.

215,000 total carcasses were certified as CHB in 2011, and the pounds used from each carcass increased 11.4% to 190 lb.

Currently CHB is offered in 233 retail supermarkets in 35 states, as well as 37 foodservice distribution centers serving restaurants in 25 states. Since the inception of CHB, 3.9 million head of cattle have been identified through licensed packing plants as meeting the live animal specifications to carry the CHB name.