City, Mo. — The American Hereford Association (AHA) and Certified Hereford Beef (CHB) LLC staffs have created a new Hereford-based beef brand specifically targeting Hispanic shoppers.
In 31 Hispanic grocery stores throughout the Los Angeles area, shoppers now have the opportunity to buy Hereford beef labeled Nuestro RanchoTM, from a service case cut just the way they like it.
Through research CHB LLC staff members learned that Hispanics purchase three to four times as much beef as other consumers, and most of the beef they purchase is underutilized cuts from the chuck and round. They seized the opportunity to sell Hereford beef to these consumers, and after careful consideration and planning, launched the new brand.
The name of the brand, “Nuestro Rancho” means “our ranch” in Spanish. “We really wanted a name that would quantify in the minds of Hispanic people in America what the brand was about and would portray the overall feeling of the brand,” says Shonda Anderson, CHB LLC account manager.
The Nuestro Rancho logo can be found on the meats' packaging as well as on other promotional materials in the stores where the brand is sold. Also with the logo, is the brand's tagline: “American Hereford Beef.”
The CHB LLC staff chose Harvest Meat Co. Inc. to distribute the product.
Harvest Meat has large distribution operations in nine U.S. markets, so the next decision was which grocery store group would offer the Nuestro Rancho brand meats.
“Harvest Meat began in earnest looking for just the right combination of location, retail pricing and distribution ease,” says Arden Gremmert, CHB LLC interim general manger. After testing in three different store groups, they chose Superior Grocers, which is now selling Nuestro Rancho in the 31 stores in the Los Angeles area.
The product is sold in a service case, which means the customer asks for a specific amount of each cut. Gremmert says, “The service case is the one that sells the most volume in the Hispanic stores. Hispanic shoppers prefer to buy from a butcher, and they would rather get the exact amount they need packaged to order.”
National Beef Packing Co. LLC is CHB LLC's processing partner that provides the product for the brand. Mike Louderback, National Beef brand manager, says he is excited about the potential for Nuestro Rancho. “I feel it's something that will really take off and grow.” And he adds, “A Hispanic brand is something that the beef industry has needed. It offers a premium program that Hispanics can call their own.”
At this time, the only cuts offered under the Nuestro Rancho brand are from the chuck and round. AHA Executive Vice President Craig Huffhines explains, “This is the type of beef cuts Hispanic families prefer.” He adds, “The hispanic shopper is focused on value and getting more for their dollar. Our Nuestro Rancho strategy is a fantastic complement to those food service accounts that prefer exclusively steak cuts from the rib and loin and enhances overall carcass utilization.”
Gremmert says, “That is the beauty of the whole thing, really. The main purpose of this brand was a carcass balance and utilization idea. We wanted to have a home for the end cuts at a premium and that's what Nuestro Rancho contributes to our program.”
Although it's too early to say conclusively, demand looks good for the product in these first few stores. Judging by the initial orders from the stores, Gremmert says, consumers are buying three to four times more than the average retail customer in other demographic areas.