Success Stories
By Sam Gazdziak,
Senior Editor
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
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 |
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