Lexington, KY - Laura's Lean Beef, which began as a small business on the family farm, has grown into the most successful lean, natural beef company in the country and recently earned the Good Housekeeping Seal.
That recognition is no small feat. The beef industry in general has faced ups and downs through the years, especially as consumers have become more health-conscious and some have avoided red meat altogether.
Those health-conscious consumers are exactly the ones, however, that Laura Freeman had in mind when the idea of healthier beef came to her after returning to the family farm in Winchester from a journalism career in 1982.
Freeman, founder of the company and seventh-generation cattle farmer, got the idea of producing leaner, healthier beef while dieting herself. Like many dieters, she was advised by her doctor to cut back on red meat. This seemed like heresy for a cattle farmer.
Her research led to experimenting with Limousin and Charolais breeds and vegetarian feeding methods free of antibiotics and hormones. The end result was a naturally leaner product. The company made $10,000 in its first year.
In 1991, John Tobe, retired president and CEO of Jerrico, Inc., joined the company as chairman of the board. Jerrico was the parent company of seafood chain Long John Silvers.
Tobe's 30-plus years in the food industry has paid off for the business as it has seen marked growth in the last 18 years, with products in 6,500 grocery stores across 47 states and sales topping $150 million.
Aside from having a quality product, Tobe attributes much of the success to an aggressive marketing effort.
"The primary thing that differentiates us is that we're branded," he said. "Most products in the beef case aren't. They either go by a corporate brand, which in most peoples' minds is generic, or they go with no brand."
Tobe added that the company has developed the ability to distribute nationwide, and through that penetration and ability to market throughout most of the country, they have been able to work with a number of top publishers, including Martha Stewart and Weight Watchers.
"All those things help our sales and help people to seek us out," Tobe said. Help indeed: in a down economy where others in the industry have seen declines, LLB saw a seven percent growth last year and are on target to do the same thus far this year.
Behind the wheel of the company's marketing efforts is Marketing Director Chris Anderson, who has helped guide the company into more of a mainstream arena.
"In some ways, we're still an emerging brand in a relatively new category. This means that there is now opportunity to reach a much broader audience," he said. "In the past, most of our marketing efforts have been through word of mouth and our preferred customer program. Those things continue to work very well for us, especially now that we provide instant electronic coupons, low-fat recipes and cooking videos on our Web site. But now that the market for healthy, naturally produced foods has established itself in the mainstream, we're able to do national advertising."
While the use of effective advertising is a definite advantage, the bottom line is the quality of the product. The company employs several regional cattle buyers, overseeing a network of approximately 750 farms across the country that supply beef according to specific company requirements regarding feed and herd management through legal contracts.
Tobe has another advantage when it comes to running the company: he is a longtime cattle producer. He raises about 600 head a year for the company and has been instrumental in the testing of the different breeds wanted for the program. Through the raising of registered Limousins, Tobe is also able to provide bulls to producers, enabling them to produce the type of cattle the company wants.
Laura Freeman retired from the company in December 2007 and remains close to the organization. It was her vision more than 20 years ago that led the way to success. Tobe is carrying on that tradition with a dedicated staff and a quality network of producers, never forgetting the reason they all do what they do.
"The customers drive this company, we just take care of their needs," he said.
The company is finalizing plans for a new sponsorship campaign with Weight Watchers starting this spring and lining up a year's worth of additional marketing and advertising elements with Good Housekeeping to further support the Seal recognition.
For more information about Laura's Lean Beef, log on to their Web site at www.laurasleanbeef.com.