Success Stories

By Sam Gazdziak,
Senior Editor

Good products, good management, good employees and good operations are just a few of the qualities needed to be a company on The National Provisioner’s annual Top 125 list. There are plenty of other qualifications, of course, which makes getting on the list quite an accomplishment. An unsuccessful company just won’t cut it. Try combining the world’s best chicken with incompetent management or a factory that would make Upton Sinclair wince, and see if that company can generate the sales needed to appear on the list.

Not every company had its best year ever, of course. Some sales figures are down from the 2005 list. But there were many companies that increased sales from last year, and set into motion initiatives to ensure future growth as well. Here are three of this year’s success stories.

Quantum is cooking

Edward Bleka, CEO of Quantum Foods, says that he has wanted to get involved in impingement cooking for a few years. He finally got his chance when Quantum acquired Los Angeles-based Choice One Foods. Choice One had those cooking capabilities, and the results have been so good that Quantum is adding impingement ovens into its Bolingbrook, Ill., facility this year. “We’ll have the capacity to oven-cook more than 70 million pounds a year,” Bleka says. Quantum Culinary, a facility a couple of blocks away from the headquarters, will have similar capacity.

Having a West Coast-based location also is paying off in terms of fuel costs. “We deal with national restaurants, and everything west of the Mississippi could be coming out of that facility, and save [our customers] an enormous amount on freight,” Bleka notes.

Quantum also opened a global distribution center last year, which has 280,000 square feet of cooler/freezer capacity. Bleka says that Quantum will be working with its customers to consolidate their orders in nearby states, helping them to better utilize their transportation dollars.

The Choice One and cooking additions are just two ways Quantum Foods is growing. Bleka says his company has been entering into different markets, such as the fast-food sandwich market, and becoming more involved with proteins besides beef. The company already has mastered the concept of portion control for beef products like steaks. “We can do the same thing in poultry or pork,” he notes. “And for us to get into impingement cooking, we’re already 75 percent there, where a lot of people first have to understand portion control and marination. We’re experts at that.

“It was an easy step, and that’s where the industry’s going, as you can see with the boom with the sandwich shops,” Bleka adds.

The addition of pork and poultry products makes Quantum’s portfolio even more impressive. “We already have the relationships,” Bleka says. “It’s just that we have a better variety of products, and people are getting more and more into the finished cooked product.”

Making the right moves

The last few years have seen Strauss Veal & Lamb International making several noteworthy acquisitions. In 2004, the company acquired Foodtech, an importer of New Zealand and Australian lamb, beef and New Zealand Cervina venison. Last fall, it added Swissland Packing Co. of Ashkum, Ill. But the company also has walked away from several other opportunities in recent years. “It has to be the right fit for us, add value to us and be something that we think can benefit our customers and ourselves,” says Tim Strauss, president of the Franklin, Wis., processor.

In this case, Strauss Veal can offer its deep product line of domestic and imported veal, lamb and other proteins to Swissland’s customers. “We are producing their products in our facility, and we can be a low-cost leader as well as introduce some of their product lines to our customers,” Strauss says. Swissland has added a line of grain-fed veal products, and it also has access to Swissland’s growers, which are largely based on the East Coast. Until that point, Strauss’ growers were mostly in the Midwest.

The company also made upgrades to its facility’s refrigeration systems, including adding state-of-the-art equipment. “We want this plant to be a showcase,” Strauss explains. “We want to have the best food safety, and everything that goes with it.” The plant’s upgrades also benefit the company’s West Coast customers. By optimizing the temperatures within the plant, Strauss Veal can offer a longer shelf-life on its case-ready products.

Between the Swissland acquisition and the plant upgrade, Strauss Veal was able to produce record sales last year, and plans are in place to continue that trend. Strauss says that the company will continue to look to add on other companies or product lines when the fit is right. “We’re growing through acquisitions and also by being a better and bigger company. We’re growing within the veal and lamb industries.”

Efficiency experts

Hatfield Quality Meats, located in Hatfield, Pa., is one of the last survivors of what used to be a large group of mid-sized meat packers in the area. Faced with high labor, infrastructure and utility rates, the company looked inward to improve its operations and reduce costs.

“We had a real focus on what we called maximizing performance,” says Douglas Clemens, president. “We made a tremendous effort in increasing effectiveness in all phases of the operation. That was one of the keys for us this past year.”

One of the things Hatfield did was break the mentality of having employees always working in just one department. Instead, they moved employees to different areas, depending on the demand at the given time of year. While the workers did find themselves in areas where they were not accustomed to working, there was no slowdown in production.

“Also, we really focused on frontline supervisors taking a look at each aspect of their operation, focusing on overtime hours and downtime issues — identifying constraints within each part of their system,” Clemens notes. “We did a lot of quantifying of why we do things and what it cost us, which resulted in pretty big savings to us.”

As a result of the efficiency initiative, Clemens says there was an attitude change from the management group to the hourly employees. The results are readily evident, as Hatfield generated record net sales in this past fiscal year.

The company also broadened its market. Its pork products, which include fresh meat, ham, sausage, bacon, deli items and franks, have been very successful in its core market of Harrisburg, Scranton, Wilkes-Barre, Philadelphia and southern New Jersey. That market has now expanded further into New England, reaching Boston and New York City as well.

Clemens says that Hatfield has the right people in place for the company to build on its success in this past year and continue its efficient ways. “It was a behavior change, it was setting expectations, and it was fostering an accountability culture, which really led to increased performance for us,” he states. NP

If your company was not listed in this year’s Top 125 report, and you would like to participate in next year’s report, please call Sam Gazdziak at (847) 405-4129, or e-mail him at sgazdziak@stagnito.com.

The National Provisioner

Name of Company

MARKET SEGMENT

BEEF
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Tyson Foods Inc.	$11,600	$26,014	1
2	Swift & Co.	$7,469	$9,700	5
3	National Beef	$4,000	$4,000	T11
4	Smithfield Foods Inc.	$2,282	$11,354	4
5	OSI Group LLC	$1,400	$4,000	T11
6	Sara Lee Corp.	$1,276.2	$4,254	10
7	BPI Technology Inc.	$600	$600	T30
8	Kenosha Beef International Ltd.	$494.9	$505	36
9	Lopez Foods Inc.	$331.7	$455	41
10	Harris Ranch Beef Co.	$270	$270	57
11	Quantum Foods Inc.	$240	$400	T46
T12	Aurora Packing	$150	$150	T75
T12	Caviness Beef Packing Co.	$150	$150	75
14	L&H Packing/Surlean Foods	$127.5	$255	59
15	Holten Meat Inc.	$107	$118.9	91
16	Meyer Natural Angus LLC	$100	$100	T98
17	Lincoln Provision Inc.	$99.8	$105	T96
18	West Liberty Foods LLC	$86.4	$288	56
19	Loggins Meat Co. Inc.	$85	$100	T98
20	Zartic Inc.	$66.5	$190	67
21	John Soules Foods Inc.	$55	$110	94
22	Vincent Giordano Corp.	$50	$50	T121
23	Abbyland Foods Inc.	$44	$176	71
24	Murry’s Inc.	$36	$180	70
25	Chicago Meat Authority	$35.3	$75	T112
26	Cook County Cookers LLC	$35	$140	83
27	Cambridge Packing Co. Inc.	$34.8	$58	120
28	Kayem Foods Inc.	$30	$150	T75
29	Manda Packing Co.	$19.2	$48	124
30	Curtis Packing Co.	$16.5	$50	T121
31	Fresh Mark Inc.	$14.5	$482	39
32	Hatfield Quality Meats	$10.3	$516.2	34
33	Peer Foods Group Inc.	$5	$100	T98
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

CHICKEN
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Tyson Foods Inc.	$8,295	$26,014	1
2	Perdue Inc.	$3,026	$3,400	13
3	Pilgrim’s Pride	$2,867.1	$5,700	7
4	Gold Kist Inc.	$2,300	$2,300	16
5	OSI Group LLC	$2,200	$4,000	T11
6	Sanderson Farms Inc.	$905.4	1,006	23
7	Foster Poultry Farms	$896	1,400	19
8	Mountaire Farms Inc.	$849	$849	25
9	Fieldale Farms Corp.	$600	$600	T30
10	Townsends Inc.	$359.5	$418	44
11	Case Foods Inc.	$318.5	$318.5	51
12	Cagle’s Inc.	$245	$245	60
13	Amick Farms Inc.	$202	$202	65
14	Cooper Farms	$200	$200	66
15	Sara Lee Corp.	$170.2	$4,254	10
16	Farmer’s Pride Inc.	$158	$158	74
17	Harrison Poultry Inc.	$140.1	$140.1	82
18	Zartic Inc.	$85.5	$190	67
19	Quantum Foods Inc.	$80	$400	T46
20	Murry’s Inc.	$72	$180	70
21	MBA Poultry	$60.6	$60.6	118
22	John Soules Foods Inc.	$55	$110	94
23	Kayem Foods Inc.	$45	$150	T75
24	Fresh Mark Inc.	$33.8	$482	39
25	Maple Leaf Farms Inc.	$32.2	$161	72
T26	Loggins Meat Co. Inc.	$10	$100	T98
T26	Peer Foods Group Inc.	$10	$100	T98
28	Cambridge Packing Co. Inc.	$8.7	$58	120
29	West Liberty Foods LLC	$5.8	$288	56
30	Lincoln Provision Inc.	$5.3	$105	T96
31	Manda Packing Co.	$4.8	$48	124
32	Lopez Foods Inc.	$1.4	$455	41
33	Chicago Meat Authority	$0.8	$75	T112
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

PORK
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Smithfield Foods Inc.	$7,641	$11,354	4
2	Tyson Foods Inc.	$3,200	$26,014	1
3	Swift & Co.	$2,231	$9,700	5
4	Sara Lee Corp.	$2,169.5	4,254	10
5	Seaboard Foods	$1,024	$1,024	22
6	Premium Standard Farms	$927.6	$927.6	24
7	Hatfield Quality Meats	$500.7	$516.2	34
8	Fresh Mark Inc.	$433.8	$482	39
9	OSI Group LLC	$400	$4,000	T11
10	Abbyland Foods Inc.	$132	$176	71
11	J.H. Routh Packing Co.	$124	$124	89
12	Lopez Foods Inc.	$121.9	$455	41
T13	Evans Food Group Ltd.	$80	$80	111
T13	Peer Foods Group Inc.	$80	$100	T98
15	Kayem Foods Inc.	$75	$150	T75
16	Leidy’s Inc.	$70	$70	115
17	West Liberty Foods LLC	$63.4	$288	56
18	Chicago Meat Authority	$35.3	$75	T112
19	Zartic Inc.	$26.6	$190	67
20	Cook County Cookers LLC	$21	$140	83
21	Quantum Foods Inc.	$20	$400	T46
22	Manda Packing Co.	$19.2	$48	124
23	Murry’s Inc.	$18	$180	70
24	Curtis Packing Co.	$16.5	$50	T121
25	Holten Meat Inc.	$11.9	$118.9	91
26	Cambridge Packing Co. Inc.	$5.8	$58	120
27	Kenosha Beef International Ltd.	$5.1	$505	36
28	Loggins Meat Co. Inc.	$5	$100	T98
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

Turkey/Duck
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Sara Lee Corp.	$638.1	$4,254	10
2	Carolina Turkeys	$516	$516	35
3	Perdue Inc.	$374	$3,400	13
4	Foster Poultry Farms	$238	1,400	19
5	Maple Leaf Farms Inc.	$128.8	$161	72
6	West Liberty Foods LLC	$123.8	$288	56
7	Pilgrim’s Pride	$108.3	$5,700	7
8	Quantum Foods Inc.	$20	$400	T46
9	Hatfield Quality Meats	$5.2	$516.2	34
10	Kenosha Beef International Ltd.	$5.1	$505	36
11	Peer Foods Group Inc.	$5	$100	T98
12	Manda Packing Co.	$4.8	$48	124
13	Zartic Inc.	$3.8	$190	67
14	Cambridge Packing Co. Inc.	$2.9	$58	120
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

Lamb/Veal
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Marcho Farms	$100	$100	T98
2	Catelli Brothers Inc.	$95	$96	107
3	Provimi Foods Inc.	$31.5	$45	125
4	Zartic Inc.	$7.6	$190	67
5	Chicago Meat Authority	$3.8	$75	T112
6	Cambridge Packing Co. Inc.	$2.9	$58	120
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

Prepared Foods
Seg. Rank	Name of Company	Revenue in Segment (millions)	Total Revenue	TOP125 Rank
1	Tyson Foods Inc.	$2,800	$26,014	1
2	Pilgrim’s Pride	$2,080.5	$5.7	7
3	Advance Food Co.	$446	$446	42
4	Foster Poultry Farms	$266	1,400	19
5	Bridgford Foods Corp.	$131	$131	84
6	L&H Packing/Surlean Foods	$127.5	$255	59
7	Sanderson Farms Inc.	$100.6	$1,006	23
8	Cook County Cookers LLC	$84	$140	83
9	Townsends Inc.	$58.5	$418	44
10	Murry’s Inc.	$54	$180	70
11	Quantum Foods Inc.	$40	$400	T46
12	Curtis Packing Co.	$16.5	$50	T121
13	Provimi Foods Inc.	$13.5	$45	125
14	Cambridge Packing Co. Inc.	$2.9	$58	120
15	Catelli Brothers Inc.	$1	$96	107
Note: Market segment rankings include only those Top 125 companies that submitted segment sales information.

PUBLICLY TRADED STOCKS FROM THE TOP125
Company	(Symbol)	Stock price as of May 1
Seaboard Foods (a division of Seaboard Corp.)	(SEB)	$1,652
Hormel Foods Corp.	(HRL)	$33.45
SYSCO Corp.	(SYY)	$29.84
Bob Evans Farms Inc.	(BOBE)	$28.84
Smithfield Foods Inc.	(SFD)	$26.86
Sanderson Farms	(SAFM)	$26.25
Pilgrim’s Pride Corp.	(PPC)	$25.87
ConAgra Foods Inc.	(CAG)	$22.72
Sara Lee Corp.	(SLE)	$17.71
Premium Standard Farms Inc.	(PORK)	$16.51
Tyson Foods Inc.	(TSN)	$14.71
Gold Kist Inc.	(GKIS)	$12.91
Cagle’s Inc.	(CGLA)	$7.80 (est)
Bridgford Foods Corp.	(BRID)	$6.35