2005 News Archive

 

CONTACT:   Joe Schuele          303-850-3360                 jschuele@beef.org        

                   Natalie Carter       334-673-9893                 ncarter@beef.org                      

 

FLAT IRON STEAK GAINS TRACTION WITH KROGER CUSTOMERS

“Value Cut” finds success in Houston, heads for new markets 

CENTENNIAL, COLO. (September 16, 2005) – Beef Value Cuts – such as the Flat Iron Steak – have found great success with the restaurant industry in recent years, and are now gaining momentum in the retail meat case. These cuts are the result of muscle profiling research funded by the Beef Checkoff Program, producing steak from tender cuts of beef that were historically made into ground beef.

Kroger, one of the nation’s largest supermarket chains, debuted the Flat Iron Steak in 116 Houston-area stores beginning in late July, producing a terrific response from customers. The Flat Iron was promoted in Kroger stores through numerous grilling demonstrations, as well as radio, billboard and point-of-sale advertising. The national Beef Checkoff Program, Texas Beef Council and Tyson Foods partnered with Kroger for this promotional effort.  

The joint promotion was initiated on behalf of the Cattlemen’s Beef Board and state beef councils by the National Cattlemen's Beef Association (NCBA). The NCBA serves as one of the Beef Board’s contractors for checkoff-funded programs.  

“The Texas Beef Council saw this as a great opportunity to work with our partners at Kroger, Tyson and the national Beef Checkoff Program to focus a program on one cut – the Flat Iron Steak – and launch that product in Houston-area stores,” said Russell Woodward, senior manager for product marketing for the Texas Beef Council. “The Flat Iron is a delicious and economical beef cut that simply needs greater exposure in the retail meat case. This promotion - especially the in-store demos that actually get samples into the consumer’s mouths - has been highly successful.” 

Woodward noted that Houston-area stores holding in-store demos sold an average of 40 to 60 units per day of the Flat Iron Steak, with some stores selling more than 100. 

“That’s a phenomenal impact on sales,” Woodward said. “So we’re very excited about the results that we’ve seen.”  

“The Flat Iron was a big hit with our Houston customers, “said David Brislin, Kroger corporate vice president of perishables merchandising and procurement.   “The partnership with the Beef Checkoff Program and the state beef councils has provided a great opportunity for Kroger to keep the momentum growing and expand this promotion into additional markets.” 

Cattlemen’s Beef Board Chairman Al Svajgr, a cattleman from Cozad, Neb., added that retail success for the Flat Iron Steak comes as great news for beef producers. 

“Cattle-Fax estimates that Beef Value Cuts such as the Flat Iron have added $60 to $70 per head for cattle producers, as we better utilize these muscles and enhance the value of each animal,” Svajgr said. “The muscle profiling research that developed these cuts, as well as their promotion in the retail and food sectors, are just more examples of how checkoff dollars can generate a positive return for cattle producers.”  

###

The Beef Checkoff Program was established as part of the 1985 Farm Bill. The checkoff assesses $1 per head on the sale of live domestic and imported cattle, in addition to a comparable assessment on imported beef and beef products. States retain up to 50 cents on the dollar and forward the other 50 cents per head to the Cattlemen’s Beef Promotion and Research Board, which administers the national checkoff program, subject to USDA approval.

Producer-directed and consumer-focused, the NCBA is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry. 

The Texas Beef Council is a non-profit organization charged with the promotion and marketing of beef and beef products in Texas. TBC is funded by the beef checkoff program, a $1 per head assessment on the sale of cattle. Checkoff dollars are used to increase beef demand through programs of promotion, research and education. The organization is directed by a 20-member board of cattlemen, representing the state's 140,000 beef producers.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the first quarter of fiscal 2005, the Company operated (either directly or through its subsidiaries) 2,524 supermarkets and multi-department stores in 32 states under two dozen local banners including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s and Smith’s Marketplace, Fry’s and Fry’s Marketplace, Dillons, QFC and City Market. For more information about Kroger, please visit www.kroger.com.