Omaha Steaks: Carving Out a 21st Century Sales Model
"The transmission of commodity price changes into retail prices typically takes several months to occur, and most of the impact of the drought is expected to be realized in 2013," Volpe said in a research note that accompanied the department's outlook.
The USDA expects food prices will accelerate past other consumer costs through the end of 2013. Beef prices will rise by 5%. Overall, the USDA reports food prices will rise by up to 3.5% in 2012 and by up to 4% in 2013.
Omaha Steaks intends to keep pricing the same, even as the supply of beef declines. "We intend to continue to be as selective as we always have in sourcing and producing our beef, so that we remain the 'go to' premium beef company in the market," Simon says.
Simon family's future stake
Omaha's most famous succession planning discussion may be about a man who has a healthy love for family run businesses just like Omaha Steaks: Warren Buffett, chairman and CEO of Berkshire Hathaway(BRK.B) . But succession is a big discussion for Omaha Steaks as well. Today there are currently four Simon's in executive positions: Todd's father Fred, as executive vice president; his uncle Alan as chairman; and his cousin Bruce, who is the president and CEO of Omaha Steaks. The eldest of the sixth generation is just entering college.
While it is the hope that a Simon would always be a part of the 18-person senior management team, the family doesn't expect it.
"We are more interested in having the most talented people in all of the management positions of the company than we are in having family manage the business. That is just the appropriate way for a 95-year-old business to be perpetuating itself, " Simon says. "If a family member shows interest in being in the business it's not a forgone conclusion that they would ever reach a senior management level in the company. They would have to distinguish themselves the same way we would bring in somebody from the outside."
-- Written by Laurie Kulikowski in New York.
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