CRW • Corporate Report • Wisconsin's Business Magazine

Critical business decisions are made in boardrooms and in golf carts, behind closed doors in corner offices and in stress-filled strategy sessions.

In the case of Strauss Brands Inc., one of the most critical decisions in the company’s 72-year history happened at Randy Strauss’ kitchen table.

“Many years ago my wife Diane led our family down a healthier path,” he says.”Before my very eyes, almost everything in our life became natural and organic; everything had to be just right. Her passion inspired my brother and business partner, Tim, and me to find meaningful ways to make our part of the world a better place.”

Their vision was to produce veal that was good for their family, good for their calves, good for their customers and good for the planet. Today, Randy and Tim have turned that belief into a sound business concept: Nature knows best – simply raise veal naturally, drinking purely mother’s milk, nibbling at pasture grass alongside the herd, never administering antibiotics or hormones.

The brothers’ challenge was to translate that vision into a market-ready product with year-round supply. Before their journey was done, they had rebranded their company, and their entire approach to veal.

A complex industry

Making a change the magnitude that the Strauss brothers were contemplating would not be easy. The industry has changed substantially since Ludwig Strauss – the brothers’ great-great-grandfather – immigrated to America and established his own cattle buying business in 1894. In 1937, his grandsons Milt, Ed and Ray established Strauss Veal in Milwaukee, continuing on in much the same way as their grandfather and father did
“At that time, there were three or four other veal processors in Milwaukee,” says Tim. “We are the only one still operating.”

Though Randy and Tim grew up in the business, they didn’t formally take over the business from their father, Richard, until 1987.

“It was very important to our dad that we learned all facets of the business,” notes Tim. “We worked in our production facility doing everything from unloading calves to boxing the finished product — we weren’t just in the office.”

Unlike many family businesses in transition from generation to generation, this was an easy one for the tight-knit Strauss brothers, who not only share an office, but maintain a mutual respect for each other as co-presidents of the company.

“I don’t think there was ever any question for us about joining the business,” says Tim. “It was something we both wanted to do.”

By this point though, the industry itself was also changing significantly. The number of veal processors was decreasing due to their very own consolidations.

“When we took over the business, there were about 17 strong competitors in the industry nationwide,” says Randy, who notes that he and Tim have selectively used strategic acquisitions to expand their own business during the past three decades. One of those acquisitions expanded their product line to also include domestic and imported lamb.

A paradigm shift

Strauss Brands Inc. employs about 250 people at its Hales Corners facility, processes about 5,000 head of lamb and veal per week and has annual sales of about $140 million a year. From this relatively urban setting, the company is leading a critical change for animal agriculture.

As one of the country’s largest veal producers, Strauss Brands pledged in 2007 to abolish raising special-fed, Holstein veal calves in a tethered and crated environment within two years, a lofty goal considering competitors committed to a 10-year transition timeline, and that was only after the announcement by Strauss that they would be quickly moving in that new direction.

Randy and Tim are proud of their teams’ work; as of Dec. 31, 2008, 100-percent of their special-fed calves are tether-free and group raised. To make this happen, the company relied upon long-time, like-minded supply partners.

Also instrumental was years of their own research, much conducted by Randy’s wife, Diane. Group raising is a more humane veal calf alternative that started in Europe during the 1990s, greatly reducing calf stress and improving overall health. Strauss Brands is now the largest veal company in the United States committed to raising all special-fed veal calves in this manner.

“It’s now a movement within the entire industry and we are proud to lead that change,” notes Randy. The company’s commitment to raising calves humanely has been widely recognized within the last 12 months.

Everyone from Oprah Winfrey to Rush Limbaugh to Harvard University has recognized, featured or studied the company in one way or another. This exposure has driven increased demand for their brand.

“We have new customers now coming to us, requesting exclusives for their marketplace,” says Randy. “That is a nice position to be in.”

During the Strauss’ research into group-raised production options, a bit of serendipity also came into play, fueling the idea that their Free-Raised® veal could be a reality. They were introduced to an alternative breed, one that could be successfully pastured rather than raised via standard confinement methods.

“We discovered the Limousin breed through a bit of happenstance,” says Lori Dunn, executive director of Strauss’ Free Raised program. “One of our existing producers noticed that his neighbor’s Limousin calves were the correct maturity for veal, and he sent one along for us to see.”

The Limousin is a historic breed of cattle that traces its roots to central Europe. It is actually thought to be depicted in the 20,000 year-old cave paintings near Montignac, France. The breed is known for its sturdiness, leanness and meat quality.

“It was like finding the Holy Grail for us,” says Dunn. “The flavor was delicious and the tenderness of the meat was amazing. More than that, it allowed us to fulfill our goals of humane production by pasture-raising calves according to centuries old traditions. It was exactly what we were looking for.”

Making the move from traditional confinement to pasture production was an easy conclusion.

“We worked with the USDA to help define what ‘pasture-raised veal’ should be, this was a huge accomplishment and one that we are very proud of” adds Randy. “Until January 2008 they had no way to classify veal that was raised outdoors in a pasture. Strauss also worked closely with the North American Limousin Foundation to support the sourcing of Strauss’ Free Raised veal calves from like-minded family farmers and ranchers.”

The company tries to work with Midwestern suppliers as much as possible, including several farms in the Wisconsin River valley in Southwestern Wisconsin, perfect pasture ground for all-natural veal herds. During winter months, the company follows the green grass around the country to have a fresh, 52-week supply.

At the table

The combination of mother’s milk and pasture-grass, as opposed to the milk-replacer formula used for special-fed production results in a better quality of meat. The color is naturally richer due to the calves’ natural, dietary iron consumption. One of the most exciting things they discovered was that the nutritional testing has shown that Strauss’ pasture-raised veal is lower in total fat, cholesterol and saturated fats than conventionally raised veal, while still providing flavor and versatility.

“Our customers tell us they love it because it is more tender and has more flavor than traditionally raised veal,” says Tim. “It allows them to feel good about enjoying veal again.

“What we’re doing is reintroducing the traditional art of pasture raising veal. It really goes back to antiquity and the concept of the fatted calf. This is truly authentic veal.”

By following these ancient raising principals, the company was also able to go “green.” A third-party evaluation by Washington, D.C.-based Sustainable Resources International found the company’s Free Raised raising methods to be so naturally sustainable, they are actually a net benefit for the environment.

Strauss Brands has an international fan base including celebrity chefs and high-end restaurants located around the world. The company’s web site includes photos of Randy, Tim and Randy’s wife, Diane, with a virtual Who’s Who of celebrity chefs from Emeril Lagasse to Mario Batali.

The company’s products have been profiled on the Today Show and its eclectic fan base even includes non-chefs, including Milwaukee talk show host Mark Belling.

More than that, it’s the little things that keep telling the Strauss brothers that their commitment is paying off.

“In late March 2008, we became the pasture-raised veal supplier to Whole Foods,” says Randy, who says that the product’s acceptance by the world’s largest retailer of natural and organic foods is a critical one. “We’re very proud to be a part of Whole Foods. Their level of dedication and commitment to healthy and humanely raised foods is very inspiring — it really validates what we’ve been doing.”

By Laurie Arendt

Laurie Arendt is editor of CRW. She can be reached at crweditor@crwmag.com