Jennie’s Gems – December 2011

Jennie Dickinson photoBy Jennie Dickinson (Jennie@PortOfColumbia.org), 
Manager, Port of Columbia

I recently had the honor of attending the Tilth Producers of Washington conference in Yakima.  What an inspirational group of people!

Word has it there were 550 organic farmers from across the State of Washington in attendance at the conference, with workshops provided throughout the day on relevant topics such as All About the Organic Certification Process, Farm Paperwork and Business Management, and Ecological Weed Management.

While Blue Mountain Station is focused on providing a location for artisan food processors, it was wonderful to talk with the many regional farmers who grow the products to be processed.  It is inspiring to hear about the innovations being made in the way we grow food.

In fact, we’ve been inspired so far as to decide we need to start farming differently at the Blue Mountain Station site!  While we’re working on the long-term process of locating food processors there, we’re developing a plan to encourage the transition of the land for use in growing fruits and vegetables that can be sold on site and regionally.

We also heard from several conference attendees about the need for a flour mill in the region to accommodate the milling of small quantities of locally-produced grains.  This is also an initiative we will work towards in 2012.

Congratulations to the Tilth Producers of Washington organization for their well-organized, exciting conference!  We look forward to learning more from them as we move forward with our project.

Side Tracks – December 2011

The Prospector

Gary White Photo By Gary A. White (gary@pchelle.com)
President, P’Chelle International

He walks until his feet ache, his legs wobble like rubber bands and his back grows  tighter as the day gets shorter. He learns from his journey. He is persistent and continues while others grow weary and fail. His vision becomes crystal clear and his path forever straight. Finally, his shovel strikes receptive soil and he meets the object of his quest. -Anonymous

Okay, walking a trade show floor for two days straight, talking with hundreds of food processors, some friendly, some not so much, may not exactly be like prospecting, but there are similarities. Believe me, by the end of the day my feet ache, my legs wobble and my back starts to tighten up. I have definitely learned from my journey. Good teachers were the Winter Fancy Food Show  (January) and Natural Products Expo West (March).

It was confirmed, again, that Blue Mountain Station is a ground breaking model for the specialty food industry. There is nothing else like it and it makes perfect sense. Not bad in an un-perfect world where little seems to make sense.  I learned that our market is East Coast and Mid-West food companies looking for West Coast co-packers to tap into an existing or expanding West Coast and Asian market. So, being persistent and continuing when others grow weary and fail (or some might say get smart and move on to other things) off I went to Washington D.C. and the Summer Fancy Food Show in July, looking for co-packers. It was very successful with a handful of companies saying, “let’s talk” or “keep in touch”.

The trade show season concluded in November with PLMA’s 2011 Private Label Trade Show in Chicago. Talk about focus. This is a show of co-packers with the natural and organic guys prominently identified. PLMA  stands for the Private Label Manufacturers Association. It boasts of 3,200 members worldwide.  Its U.S. show (it also has a European and Asian show) featured more than 2,000 exhibitors promoting food, snacks and beverages, kitchen and household products, health and beauty and general merchandise. Fortunately for me, the vast majority of companies exhibiting were food and beverage manufacturers.

The PLMA Show was a great way to end the year. Actually it was a great way to begin 2012.  Like the Prospector, my vision has become clear and my path forever straight. We have the right concept. The market is receptive. We will meet the object of our quest…..food processing tenants in Blue Mountain Station.

Wishing Everyone a Very Happy New Year!

Blue Mountain Station – A Brief History, Pt. 2

Dennis Miller photo

By Dennis Miller (Dennis@Artmil.com),
President/Creative Director, Artmil

Claudia Nassau, executive director of the Dayton Chamber of Commerce, introduced me to The Town That Food Saved by Ben Hewitt. Hewitt writes about a renewal of local agriculture around Hardwick in Northern Vermont. Numerous food-based businesses began locating in the Hardwick area and they “embarked on a quest to create the most comprehensive, functional, and downright vibrant local food system in North America.”

In many ways the book parallels the agricultural growth that’s taking place here in the Walla Walla and Touchet Valley. Wineries, micro-breweries, restaurants, bakeries, organic apples, blueberries and goat cheese all contribute to an expanding agricultural climate in the area. Many local farmers are beginning to process, package and distribute their own produce­—thus adding value to what they grow.

The Tilth Producers of Washington Conference in Yakima this fall brought us in contact with many natural and organic farmers from around the state. Many of these farmers are involved in Community Supported Agriculture (CSA), a popular way for consumers to buy local, seasonal food directly from a farmer. Utilizing Blue Mountain Station (BMS) for an organic CSA may be one way to get the ball rolling on the BMS site’s 28 acres.

The purpose of BMS is to generate economic agricultural development in the Columbia County area. Besides bringing artisan food processors to the area, we also want to encourage existing local food-based businesses. Many local residents have already expressed interest in being involved in BMS. A good way to involve local residents in this project is by starting to actually use some of the land for organic farming. As we continue our search for the first processor to locate on the property, we look forward to 2012 as a ground-breaking year for activity on the site.

Jennie’s Gems, October 2011

Jennie Dickinson photoBy Jennie Dickinson, Manager, Port of Columbia.

A frequent question I hear from local residents is, “Will Blue Mountain Station hurt Dayton’s Main Street businesses?”

Answer: Absolutely not!  In fact, one of the goals of Blue Mountain Station is to help downtown Dayton.

Here’s how:

  • Dayton’s downtown is zoned central commercial.  Like most downtowns, the zoning is purposefully written to encourage retail and service businesses to locate there.  The primary purpose of Blue Mountain Station’s tenants will be wholesale specialty food processing.  Dayton’s downtown buildings aren’t made to accommodate food processing.  Food processors need floor drains, loading docks, coolers, and food-grade wall coverings.  Downtown is not meant for, zoned for, nor has the buildings for this type of business use.  So if we want new manufacturing jobs in the community, appropriately zoned land with the necessary infrastructure is needed.  That is what Blue Mountain Station will provide.
  • The dollars residents spend in local retail and service businesses tend to circulate over and over again within the community. Wholesale products that are shipped and sold outside of the community, like those that will be produced at Blue Mountain Station, bring NEW dollars from outside the community into Dayton. These dollars can then be spent at downtown businesses.
  • In addition to wholesale production, Blue Mountain Station will also offer tours of the processing facilities, culinary events, and on-site sales of specialty foods products as a way to attract new tourists to Dayton.  Besides helping the processing businesses, the goal for increasing tourism traffic is for those tourists to spend money in Dayton’s hotels, retail stores, and restaurants, which will help downtown businesses.

It would be contrary to the Port’s mission to undertake activities that hurt our downtown retail sector.  Dayton’s beautiful, vibrant Main Street is one of the primary attractions to businesses interested in locating here. We’re all in this together!

Find Me a Co-Packer!

 

Gary White Photo“Find me a co-packer!” Wow, how many times have I heard that? More than I can remember, to answer my own question. I keep meeting food companies who are interested in participating in the Blue Mountain Station opportunity, but through a co-packer. There just seems to be a flat out huge demand for co-packers located in Blue Mountain Station. So, for my own edification and those of you who might need it, I scratched around a bit to gain a better understanding of the co-packer world.

Why Use a Co-Packer?

  • Money – theirs, not yours: The co-packer covers the major costs of processing your food product such as facilities, equipment and employees.
  • Paperwork – Food processing, especially organic, involves the government and that involves paperwork in the form of a myriad of licenses and permits, rules and regulations from all levels…..local, state and federal. Let the co-packer work with the government and pay the fees.
  • Time – especially if you are a small company or just getting started. Processing food takes time. Maybe yours is better spent formulating, marketing and selling.

What To Look For In A Co-Packer

  • Find someone that is manufacturing a product similar to yours. They need to have the appropriate equipment and expertise. A good understanding of your category can be very helpful.
  • Sometimes a qualified processor with excess capacity will welcome the opportunity to keep the equipment humming and the cash flow positive by manufacturing your product.
  • Occasionally you can find a company who has a seasonal operation, just the opposite of yours, that would welcome the off-season business. Unfortunately, these guys are usually located in Argentina.
  • Once in awhile, someone with processing experience will be willing to invest in new equipment to accommodate your needs. This usually involves a long term commitment and belief in the Tooth Fairy and Santa Claus.

Now What?

Okay, you’ve found the right company – they have the building, equipment, employees, expertise, desire – they are pleasant and appear to be breathing. Before “pulling the trigger” (a term probably better used if the relationship goes sour) there are a few things to keep in mind:

  • Have them sign a confidentiality agreement before you disclose any proprietary information (i.e. recipes, marketing plans, etc.)
  • Get references and check them out. The best ones are other companies they are co-packing for. If they refuse to provide this information, drop them like a hot tamale!
  • Get financials. If they go out of business, so do you!
  • Make sure they have all the proper permits and licenses to operate (if you are organic, they better have their organic certification, if you are gluten free they better have…..you get it).

I realize this is a very brief analysis but, this is a very brief eNewsletter. Come November 13 – 15 I will be attending PLMA’s 2011 Private Label Trade Show in Chicago. If you will be attending and would like to learn more about the Blue Mountain Station opportunity, please contact me at 509-539-3575 or gary@pchelle.com. Hopefully, the fine folks at PLMA can find me a co-packer (or two or three)!

Blue Mountain Station – A Brief History, Pt. 1

 

Dennis Miller photo

By Dennis Miller, President/Creative Director at Artmil.

For you regular followers of the development of Blue Mountain Station the following information may be a repetition, but I wanted to start with an overview before I get more into some things that might sound rather random if I just started telling you about them. So bear with me. Thanks.

Columbia County’s Blue Mountain Station Project has made great strides in the last few years. We now have the land and infrastructure necessary for natural and organic processors to locate here. Located in Eastern Washington,  the heart of wine country, and just thirty miles from Walla Walla, Dayton is a rustic town with a historic downtown and many lovely Victorian homes and bed & breakfasts. Dayton, known for excellent food and fine dining, has long been the stop of tourists and outdoor enthusiasts.

Dayton has a history of food processing, starting back in 1880 when Jacob Weinhard came to Dayton and established the Jacob Weinhard Brewery. Food processing giants, Green Giant and then Seneca, were in Dayton until 2005 when they closed the Dayton plant. The Eastern Washington area continues be a major agricultural area with the ability to grow a vast array of crops. Blue Mountain Station hopes to capitalize on these assets. Attracting natural and organic food processors who will add value to crops grown in the area will stimulate the rural economy, and the natural and organic food processors will benefit from the local agriculture and be able to build their food processing businesses in a pleasant rural setting.

Recently, Blue Mountain Station joined Washington Tilth Producers. One of Blue Mountain Station’s goals is to assist Washington farmers by connecting them with processors, thus helping them add value to their farm produce. As these farmers understand how Blue Mountain Station can benefit them, we will be building relationships with these Washington farmers and processors. We believe the Seattle, Portland and Spokane markets provide great growth potential for the local foods market. We are developing Blue Mountain Station to help farmers and processors in Washington take full advantage of this opportunity.

Jennie’s Gems – August 2011

What’s Next at Blue Mountain Station? From Highway 12 it was pretty easy to see the physical progress of the installation of infrastructure for the first phase of Blue Mountain Station this spring and summer. But the number one question being asked of Port staff these days is “What’s happening at Blue Mountain Station now?”

While the site itself may not look very exciting right now with its sprouting weeds and occasional dust cloud, a lot is going on behind the scenes.

The Port has an active business recruitment and development plan. Marketing consultants have attended 3 trade shows in 2011 made up of exactly the type of businesses we are trying to attract to the site: natural and organic specialty foods processors. Several local start-up companies are also interested in the site. We have a business lead matrix of about 40 businesses we are working with to expand their product development into the Northwest. The most interest we’re seeing at this time is from companies on the east coast looking for a presence on the west coast. There is also a great deal of interest in “co-packing,” the common practice of one food processor packaging products for multiple companies and putting individualized labels on the products. We think this has good potential for our site, and are working to bring companies and co-packers together to make something work. The Port will attend the Private Label trade show in Chicago in November as well.

To put things in perspective, keep in mind that Blue Mountain Station is the Port’s LONG TERM business development strategy. We don’t expect this to happen overnight, especially in the stagnant economy we are currently facing. Our goal was to be prepared, with land purchased and infrastructure in place, so that when the economy does break loose we’ll be ready.

And we’re ready!

Side Tracks: Something Positive Amid Political Turmoil

Washington D.C. in July is hot and humid. In 2011 it was also hot politically, as politicians and pundits wrangled, hassled, coerced, pleaded and negotiated to come up with an agreement to raise the country’s debt ceiling. While all eyes (well, some, at least) were focused on this national tug-of-war, thousands of businesspeople converged on the nation’s capitol to wheel and deal on something equally important to the nation’s future – business. In this case, the specialty food business. The National Association for the Specialty Food Trade (NASFT) produced the 57th Summer Fancy Food Show, July 10 – 12, 2011 at the Walter E. Washington Convention Center. The Show is advertised as the “largest marketplace for specialty foods and beverages in North America” and it might well be with 2,400 exhibitors, 18,000 attendees and over 60 countries represented.

What is exciting about the Fancy Food Shows is the wide assortment of exhibitors from mom & pop start-ups with stars in their eyes and visions of entrepreneurial glory to multi-national corporations represented by battle-hardened veterans and everything in-between. The specialty food business is a hotbed of start-up activity and product innovation. While walking the show floor I had the pleasure of meeting some companies representing various stages of development that I found to be most impressive and inspiring.

Cherith Valley Gardens, Fort Worth, Texas – This company represents triumph over adversity. Because of an economic collapse in 1987, Alan Werner and family discovered a desire to “return to the land”. What began as tilling the soil, harvesting and canning products for their own consumption and survival evolved into “why don’t you market these products?” (you know how annoying friends and relatives can be). On May 8, 1993 the Werner family officially produced the first Cherith Valley Gardens product. Today their “hot ‘n spicy” line of pickled vegetables, salsas, hors d’oeuvre jellies, spirited fruits, grille and dipping sauces, and assorted condiments are sold to over 2,500 specialty stores in the USA, Canada, Europe and Japan. Their products are hand-packed with no artificial preservatives, colorings or flavorings.

Tokies All Natural & Gluten Free Mixes, Richmond, Virginia – Deborah Tokarz, Founder and President (I wonder where the name Tokies came from) is a ball of fire with entrepreneurial energy surging through her veins. Their product line of brownie, chocolate cake and maple baking and pancake mixes is built on passion, a commitment to excellence, and a desire to please the palate. As they say, “Here are mixes that go beyond the ordinary…Brownies that explore the deep, dark chocolates of Europe…..Chocolate cake that tastes too good to be good for you…..Maple pancakes so full of maple sweetness, you won’t ask for syrup…” Yummy!

Texas Tamale Company, Houston, Texas – Hold on pardner, we’re talkin real tamales here! With the old fashioned tamale vendor rapidly sharing the fate of the dinosaur, what is now the Texas Tamale Company launched a street corner business to fill the gap with their homemade recipes for gourmet tamales and delicious salsas. They now have over 100 products including home style chile, chile con queso, quality drink mixes and BBQ and finishing sauces under several labels including the well-known Brazos Legends brand. Keeping good health in mind, they choose to make their tamales with pure vegetable shortening (instead of artery clogging lard) and the highest quality meat/chicken and cheeses.

Alimentos Finistere S. de R.L. de C.V., Tequisquiapan, Queretaro, Mexico – Talking tamales got me wandering “down Mexico way” (at least mentally). I had the great pleasure of meeting Sr. Carlos Sánchez-Mejorada of Alimentos Finistere. This FDA-Certified Mexican company produces a variety of all-natural honey, milk caramel, salsa, marinades, condiments and stuffed olive products. They also provide a full service product development and manufacturing program as a co-packer for the above listed products as well as RTD beverages. ¡Fantastico!

The Summer Fancy Food Show was a great experience. A number of companies expressed interest in relocating or expanding to Blue Mountain Station (www.bluemountainstation.com). The opportunity for co-packers continues to grow. Many companies expressed interest in working with a co-packer located in Blue Mountain Station to serve their West Coast and Asian markets. Phase One infrastructure construction is finished. We are ready for innovative natural and organic specialty food processors, including co-packers, that wish to relocate or expand to the Great Pacific Northwest and take advantage of this very exciting opportunity. Call me at 509-539-3575 or send me an email at gary@pchelle.com to discover how Blue Mountain Station and its very unique marketing program can help your business grow.

Jennie’s Gems – June 2011

It’s in! The infrastructure for the Blue Mountain Station Phase 1 is in the ground and the construction project is complete. Another big step forward for Blue Mountain Station!

POW Construction of Pasco completed the project in mid-June. The site is now connected to the City of Dayton water system, water and sewer connection points have been extended to 6 building sites, a paved parking lot is complete, and a preliminary road system is in place. Anderson Perry provided construction oversight for the project.

One of the most interesting aspects of this first phase was the installation of an on-site storm water treatment system. Bioswales were created throughout the site, allowing storm water to naturally infiltrate instead of entering the sanitary sewer system. These swales are now planted with a natural grass but will be landscaped in future phases. And recent rains show these swales to be working perfectly!

Another opportunity to “go green” presented itself partway through construction. The Port had the opportunity to utilize warm-mix asphalt vs. the traditional hot-mix asphalt. The end product is the same, but the process used is more environmentally friendly. Compared to traditional hot-mix asphalt, the warm-mix method results in a 40% reduction in diesel consumption, a 31% reduction in CO2 emissions, a 29% reduction in CO emissions, and a 62% reduction in NOx emissions. In addition, there is also less potential to overheat the binder, the contractor can enjoy longer hauling distances due to a slower heat loss curve, and there is increased compatibility.

The Port is extremely pleased with the final product. We are one very important step closer to the location of our first food processing business at Blue Mountain Station.

Side Tracks: Specialty Food Sales Keep Growing

According to a recently released report from the National Association for the Specialty Food Trade (NASFT), consumers are increasing spending of their hard earned dollars on specialty food products. Sales of specialty food and beverages rose 7.7 percent in 2010 to $70.32 billion at retail. This compares to a 4.5 percent increase in 2009. Market researchers Mintel and SPINS also participated with NASFT. The report monitored sales of specialty food through supermarkets, natural food stores and specialty food retailers, including interviews with food retailers, distributors, brokers and others involved in the supply chain. Highlights of the report are as follows:

  • Specialty foods represent 13.1 percent of all food sales at retail.
  • Natural food stores are the fastest growing retail channel with sales rising 14.7 percent between 2008 and 2010.
  • Cheese dominates the specialty food category with 2010 annual sales of $3.23 billion followed by meats, chips and snacks, bread and baked goods and condiments.
  • Functional beverages are the fastest growing specialty food category, followed by yogurt and kefir.
  • Mediterranean and Indian are the most influential emerging cuisines.
  • Seventy-six percent of specialty food manufacturers reported a sales increase in 2010, with 36 percent up more than 20 percent.
  • Gluten-free introductions showed sharp gains, with 119 new products in 2010 versus 67 in 2009.
  • Supermarkets remain the largest seller of specialty foods, with 72.3 percent of sales, but their share is dropping as specialty and natural food stores grow.
  • The average specialty food manufacturer produces 51 different items and has $2.3 million in annual sales.
  • Specialty food processors focused on existing items in 2010, with new product introductions about even with 2009. Launches of premium private-label products, such as store brand cookies and sauces, declined to 455 in 2010 from 518 in 2009, highlighting a return to branded products.
  • Eco-friendly, Fair Trade and sustainable are product claims that are expected to give the current “hot labels” all-natural, organic and local a run for their money in the future.
  • The Fancy Food Shows, customer recommendations and trade magazines are the most important sources for discovering new products.

Speaking of NASFT, I will be attending the NASFT Summer Fancy Food Show, July 10 – 12, 2011 in Washington, D.C. If you are interested in learning more about the most innovative specialty food processing business model to come down the pike in ages, let’s get together and chat. Of course, I’m talking about Blue Mountain Station (www.bluemountainstation.com). Phase One infrastructure construction is finished. We are ready for innovative specialty food processors, including co-packers, that wish to relocate or expand to the Great Pacific Northwest and take advantage of this very exciting opportunity. Call me for a meeting prior or during the Show at 509-539-3575 or send an email to gary@pchelle.com. I am looking forward to meeting and working with you to grow your business.

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