corporate_img 10.19.2011

Letter From Joe Morelli – Facts About ALC

Dear Rancher,
As we are moving into the prime retail selling season for fur in our important markets around the world, I wanted to take the time to tell you more about us – ALC. Often times, we don’t toot our own horn the way we should. While competitive forces around us continue to offer lower selling commissions and higher rebates to attract your business, I thought it would be important for you to know some facts about your ownership at ALC.

Fact 1:
The Blackglama and American Legend brands have consistently received a price premium over all other competitive brands. Often times, statistics can be very misleading. For example, one of your neighbors who ships to our competition might have overall bigger mink than you do, but you might have similar or better quality mink than he does. You might hear that he had a “better sale” than you did because his “average price” was higher than yours. Well, bigger mink of the same quality will usually draw more money. But, that doesn’t mean your neighbor had a better sale than you did. On a size-by-size basis, you more than likely had a much better sale than he did. But the “average” will suggest otherwise.

Thus, we have taken the initiative to remove “mink size” from the equation and instead have looked at the prices of mink per square inch of pelt. Over the past 5 years – fiscal years 2007 through 2011, did you know that if you compared the price of our branded mink (both Blackglama and American Legend) with our North American competitor’s branded mink, we have sold at a 5.5% premium? I will be more than happy to sit with any of you and disclose these numbers, just so you know we aren’t tinkering with the data.

When running this same comparison with our European competitor’s velvet type mink, you’ll see that the premium has been well over 10%, and if you remove exchange rate fluctuations due to a weakening US dollar, that premium is closer to 20%.

Fact 2:
Since we have become a stock cooperative in FY 2007, we have rebated back to you – in the form of either cash or stock ownership – almost $35 million. This is over a five year period of time. It is also over a total membership revenue of $724 million. If you do the math, you will see that’s 4.8%, which makes the average effective owner selling fee less than 1%.

Fact 3:
We have revised some of our bylaws so that it is much easier to redeem your equity once you decide to retire, sell your farm, hand your farm down, or even ship elsewhere. We want you shipping with us because you want to ship with us, not because you feel handcuffed.

Fact 4:
Each year we have an income stream related to the sales of “non-patronage activity.” We normally retain these earnings into what we call “unallocated equity.” While this equity truly is unallocated, it still is owned by you, and will be allocated to your accounts in the future as our board deems appropriate. With all of our branding activities happening, we expect this to continue to grow.

Fact 5:
In the end, having consumers that desire and covet your brand is far more sustainable than having retailers carry your brand because you paid them to do so. This is not only true for mink, but for all things. Our brands are desired. Blackglama, in particular, is not only desired, but coveted as well. And with our efforts around building it into a true luxury brand, this will only increase. And as this increases, so will the premium you receive for it in our auction room. Our buyers know this, and they embrace it as well. They know that as consumers pay a premium for our brand, they will also enjoy higher margins with their business, even after paying you a premium.

Our buyers continue to enjoy buying your farm lots. They have grown familiar with your crops year after year and know what to expect when they purchase your mink in our auction room.

Our competition believes that placing your mink in “collections” and marketing these collections to consumers is the proper course of action. It’s a little confusing, even internally to our industry since some of these collections are named after individuals who no longer raise mink. As much as I would love to place each of your individual names on our Blackglama brand, that would create too much confusion in consumers’ minds. It would not only cost a fortune to market so many individual brands, it would also seriously dilute the equity that has been built, over decades, of our Blackglama brand.

Let me summarize by simply saying this: After rebates, our net selling price for you has been less than 1% of your hammer revenues, AND you’ve been receiving a 5.5% premium. This nets out to the equivalent of selling for free AND receiving a 4.5% premium in your pocket. If our competition sold your mink for free, AND guaranteed you a 3.5% rebate, you’d still be 1% behind.

I just wanted to put into perspective certain things I’ve seen and heard from our competition recently, whether it’s their willingness to sell your mink for a low fee, or whether they have decided to “guarantee” a future rebate by handcuffing you to sell with them. I appreciate the support, loyalty, and friendship I’ve received from each of you over the last three years. Our future together is very bright.

I look forward to seeing you all and sharing any of this data with you if you’re interested.

Take care,
Joe

NEWS

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FOR IMMEDIATE RELEASE 
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http://www.youtube.com/watch?v=Tvk0ej7wkXw

 

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ALC

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“…NAFIC brings together

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Download PDF: MarchOrderOfSale

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NEWS UPDATE
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October 18, 2013 Continue reading

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In creating the “Auction of the Century,”

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Saga Furs in Helsinki, Finland will host the auction events of a lifetime in the 2014 selling season. Continue reading

07.31.13 ALC Announces Sales Date Revisions for 2014

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The second day of the American Legend May auction continued the success experienced in day one. Continue reading

05.21.13 American Legend Sale Brings Advancing Prices

A record buyer attendance pushed the price level higher on the opening day of American Legend’s May auction. Continue reading

04.23.13 ALC Announces 2014 Sales Dates

American Legend is pleased to announce the selling schedule for the 2014 auction season. Continue reading

03.25.13 American Legend Auction Closing Day

American Legend concluded its March 2013 auction with strong results on the balance of the Mutation collection. Continue reading

03.24.13 American Legend Auction Day Two

Day two of the American Legend auction achieved strong prices that continued to maintain the overall strength of this year’s remarkable sales. Continue reading

03.23.13 American Legend Auction Opening Day

The first day of the American Legend auction in Seattle opened with an outstanding collection of Black and Mahogany males. Continue reading

03.11.13 Major Fur Fairs Cope With High Prices

The recent fur fairs in Hong Kong and Milan have played an important role in determining the fashion trends and upcoming price structure of consumer garments. Continue reading

02.13.13 Brandon Sun Fall 2013 Collection

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01.24.13 Luxury Times

The famous Luxurydale Hotel in Beijing was the site of another fashion show presented by KC Furs and American Legend/Blackglama. Continue reading

01.23.13 Beijing Fair Draws Large Crowds

The 39th edition of the China Fur and Leather Products Fair was held in Beijing at the China National Convention Center from Jan 15-18. Continue reading

12.17.12 ALC & KC Furs Promote Partnership in China

In early December, the ALC staff embarked on yet another eventful tour through northern China to promote the American Legend/Blackglama partnership with KC Furs. Continue reading

12.3.12 Retail Season Begins in Anshan

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12.3.12 Guangzhou Trade Visits and Seminar

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12.3.12 Korean Market Update

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11.13.12 China Market Update II

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11.1.12 China Market Update

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10.30.12 Russian Market Update

Interest was very strong at the seminar as JT highlighted American Legend and Blackglama mink and their unique characteristics to this skin dealing, hat manufacturing, and garment manufacturing area of Russia. Continue reading

06.19.12 American Legend Announces 2013 Auction Schedule

American Legend is pleased to announce the selling schedule for the 2013 auction season. Continue reading

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Day two of the American Legend May auction started with Blackglama females advancing 5% over March 2012 sales results. Continue reading

05.21.12 Strong Prices for Day One

Prices remained high during the first day of selling at American Legend’s May auction. Continue reading

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Agriculture Minister Gerry Ritz and Farm Credit Canada President and CEO Greg Stewart introduced a new loan program called the Young Farmer Loan at a media conference in Saskatoon. Continue reading

05.9.12 WWD In Person: Kathy Ireland

The May 7th issue of Women’s Wear Daily celebrated the career of American Legend’s brand ambassador, Kathy Ireland. Continue reading

04.11.12 ALC Welcomes Kathy Ireland

American Legend Brand Ambassador, Kathy Ireland, makes special guest appearance at ALC during Guest Appreciation Night Continue reading

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American Legend Cooperative Preliminary Order of Sale for May 2012 Continue reading

03.29.12 Blackglama Label Commands Significant Premium

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03.28.12 May 2012 Preliminary Offering

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03.26.12 Auction Concludes with Rising Mutation Prices

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03.25.12 Auction Continues to Establish New Highs

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03.24.12 Record Breaking Prices

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11.22.11 kathy ireland Fashion Collection

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11.21.11 Janet Jackson Blackglama Collection

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11.18.11 A Note From Joe

Hopefully after reading this, you’ll come to the realization that it IS worth it, not only for today, but for the years ahead as well. Continue reading

11.11.11 Janet and Blackglama – Times Square

The Times Square district is one of the most desirable and sought-after neighborhoods for national and international advertising. This is no surprise given the area’s famous electronic screens and massive, striking billboards. Continue reading

11.9.11 ALC Press Release – From Joe Morelli

Hi Everyone, As all of you know, ALC had a record year this past year, with revenues totaling more than $258 million. I’m very happy to announce that along with

10.19.11 Letter From Joe Morelli – Facts About ALC

As we are moving into the prime retail selling season for fur in our important markets around the world, I wanted to take the time to tell you more about us – ALC. Often times, we don’t toot our own horn the way we should. Continue reading

06.29.10 American Legend Named Key Sponsor

American Legend Cooperative today announced that the American Legend® brand will once again serve as a key sponsor of the upcoming 2010-2011 Japan Fur Association Design Contest. Continue reading

05.24.09 ALC Offers Blackglama Charity Bundle

The American Legend May sale began the second day of selling with a touching show of compassion and sincerity from the fur trade community, as an American Legend® Charity Bundle was auctioned off to a packed house of buyers and onlookers. Continue reading

03.10.09 New Program to Guarantee Authenticity

In the current economic market, the value of the return on any investment that you make becomes increasingly important. Continue reading

08.17.08 Blackglama Announces Elizabeth Hurley as Latest Legend

Blackglama, marketers of the world's premium ranch-raised Black mink, announced that renowned actress and supermodel Elizabeth Hurley will star in their new “What Becomes a Legend Most?” advertising campaign. Continue reading

07.17.08 Joseph E. Morelli as President and CEO

American Legend Cooperative announced that longtime Nike and Dupont executive Joseph E. Morelli has been named President and Chief Executive Officer Continue reading