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!

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.

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.

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.

It is my pleasure to extend this invitation to you all to join us for the Blue Mountain Station Groundbreaking Ceremony April 15th starting at 2:00 pm. The ceremony will be held at the Blue Mountain Station site, which is at the corner of Highway 12 and Wagon Road on the western edge of the City of Dayton.

We are excited to have Dan Newhouse, Director of the Washington State Department of Agriculture, as our guest speaker for the event. Mr. Newhouse and his wife, Carol, operate a 600-acre farm near Sunnyside where they grow hops, tree fruit, grapes and alfalfa. As WSDA director, Dan oversees an agency responsible for animal health, plant inspections, food safety, fruit and grain inspection and certification, and marketing the state’s agricultural products regionally and internationally. We are grateful for his support of our project and honored to have him speak at this historic event.

The groundbreaking ceremony will be followed by a reception at the Harvest Christian Center which is located directly across Wagon Road from the site. Parking for the event is also available at the Harvest Christian Center, and we have the option of holding the groundbreaking ceremony inside in case of inclement weather.

The Port awarded the contract for installation of the first phase of construction to P.O.W. Contracting of Pasco on March 23rd. Work will begin as soon as contracts are in place and ground conditions permit.

We are thrilled to be taking this big step forward on the journey of our project and hope you will join us in celebration on April 15th.

This year’s Natural Products Expo West, March 11 – 13, in Anaheim was definitely the best we have attended over the last three years. The aisles were packed from beginning to end (which is more than I can say about the local shopping center), exhibitors were upbeat and new and exciting products were displayed from booth to booth. Talking about new and exciting products, according to the Natural Products Merchandiser website (www.newhope360.com), the official publication of the Expo, the following were some of the products that took center stage:

Henry’s Stingers. In an effort to confront Colony Collapse Disorder, Henry Miller (all of 13) decided to become a beekeeper. Soon thereafter came Henry’s Stingers, unique and delicious spicy honey blends: Grumpy Grandpa (hmmm, this is what my wife calls me) with spicy red pepper and garlic; Naughty Nana (no comment) with pepper and ginger and Phoebe’s Fireball (named for Henry’s cousin) with chipotle and cinnamon. I asked to speak to the boss and was introduced to Henry. Yea right, I want to speak to the real boss. Henry is the real boss!

Rhythm Superfoods Kale Chips. A healthy leafy green turned into a healthy, crunchy snack…certified organic, air dried (not fried), vegan, gluten-free, featured in five flavors: Bombay Curry, Zesty Nacho, Texas BBQ, Kool Ranch and Mango Habanero. Do you detect a “hot trend”?

Crunchfuls Cereals. A full serving of vegetables in every bowl. What! Yep, these toasty round morsels are made with beans and lentils. They are rich in protein, fiber (more than whole grains), B vitamins and iron. They are minimally processed (milled, steamed, baked and toasted) and contain no gluten, corn, soy, eggs or dairy. A bowlful of crunchy, yet healthy cereal. A great way to start the day. I noticed they missed the “hot trend”.

Innovation was not lost on the beverage side with Natural Products Merchandiser showcasing the following:

Orgain Healthy Kids. This one gets a little deceptive. The product tastes like and has the consistency of chocolate or vanilla milk, but (get this) is made with ten different fruits, vegetables and complex carbohydrates, offering 25 essential vitamins and minerals plus eight grams of protein per serving, as well as being gluten free. I suppose a parent must do what a parent must do to provide healthy beverages to their offspring.

Prometheus Springs. This certified organic product is infused with capsaicin (back to the “hot trend”), the antioxidant that makes chili peppers spicy. Capsaicin is known to boost metabolism, relieve congestion, strengthen immunity, aid circulation, detoxify the body and elevate mood. Three new flavors were introduced at the Expo: Mango Chili, Citrus Cayenne and Spicy Pear.

The natural and organic sector has definitely taken the innovation lead in food and beverage processing. Not only in the product side, but also in the facilities and marketing side. An excellent example is Blue Mountain Station (www.bluemountainstation.com). You were probably wondering when I would get to this.

Next stop: The Summer Fancy Food Show, July 10 – 12, 2011 in Washington, D.C. Amidst all the political bickering let’s talk about something really positive – how you can grow your food/beverage processing operation by expanding to Blue Mountain Station. Call me for a meeting during the Show at 509-539-3575 or send me an email at gary@pchelle.com.

I am pleased to extend warm greetings to all of those attending the Groundbreaking Ceremony for Blue Mountain Station, the world’s first eco-friendly natural and organic specialty food park.

We have much to celebrate today as we break ground on this exciting and unique food park, which has been three years in the making. Designed with cluster development in mind, this innovative project will integrate sustainable, locally-grown produce and natural and organic specialty food processing with the fun and popularity of food tourism. This development strategy makes sense based on growing consumer interest in natural and organic foods and nicely complements the heritage of the Walla Walla Valley, widely recognized as one of the richest agricultural regions in the world.

The State has been a proud partner in this project, and I applaud the many people who have worked hard to make this vision a reality. Blue Mountain Station will play an important role in growing the local economy, creating jobs and strengthening the food industry that has long been the foundation of this region’s cultural and historical legacy. Agriculture represents a significant piece of our state’s heritage and economy, and this rural economic development project is not only a win-win for the state and region, but also represents a unique strategy that could become a model for the future of specialty food processing.

Thank you all for coming, and please accept my best wishes for a memorable time of celebration and much success in the years ahead.

Sincerely,

Christine O. Gregoire

Governor

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Mark your calendar … we’ve set the date for groundbreaking at Blue Mountain Station!

A call for bids was advertised Wednesday, February 16th, starting the clock on the march toward construction. Contractors will have until March 9th to submit proposals for the project, and the Port of Columbia Board of Commissioners will award the contract for work at a special meeting March 16th. After the contract is awarded, construction will begin when weather and supply conditions allow.

In order to have a consistent timeline for the actual groundbreaking ceremony, the Blue Mountain Station Executive Committee has set the date for April 15th, 2011. Even though ground may have been “disturbed” prior to this date, we need a solid ceremony date during construction that will allow us to make appropriate plans to celebrate the official breaking of ground for this project.

A special email will be sent to eNewsletter subscribers with details on the ceremony. It is very important as a community to celebrate our successes, so I hope you will join us for this very special celebration.

In the meantime, a roundtable discussion with growers and processors interested in supplying products for or locating a business at Blue Mountain Station is in the planning stages. Please contact me by February 25th at jennie@portofcolumbia.org if you fit this category and are interested in participating in the discussion.

Roundtable discussion points will include exploring the potential for shared space and equipment in one building for smaller processors, and ways the Port can help now to support local foods and value-added ag entrepreneurs.

The new year, so far, is looking pretty good for the artisan food industry. This was best demonstrated by the 36th Annual Winter Fancy Food Show held in San Francisco January 16 – 18, 2011. Dennis Miller, president of Artmil, and myself had the privilege of attending the Show, continuing to carry the Blue Mountain Station flag. Participation was strong for both exhibitors and attendees and attitudes were positive. Of course, it was only January!

The National Association of the Specialty Food Trade (NASFT), producers of the show, projected over 1,300 exhibitors representing 50 plus countries promoting approximately 80,000 products. More than 17,000 food industry professionals were expected to attend. According to Dennis Deschaine, Chairperson NASFT, the exhibitor count was expected to increase 4 percent over 2010, including 120 first-time exhibitors. Growing first-time exhibitor participation is always a good sign. The Natural & Organic exhibition area continues to grow.

Blue Mountain Station, as usual, was extremely well received. We got our usual, but never tiring, “great concept”, “novel idea”, “it makes a lot of sense” and “send me more information” comments. This is the third Winter Fancy Food Show Dennis and I have attended, promoting Blue Mountain Station. It appears that our efforts are paying off as many companies recognized us and Blue Mountain Station from previous shows, or the Blue Mountain Station E-Newsletter or articles they read in trade magazines or web sites. We both left with a handful, make that two handfuls, of business cards of companies interested in follow-up communication, which, of course, Dennis and I will be happy to provide.

The next stop on the trade show circuit is Natural Products Expo West, in Anaheim March 10 – 13, 2011. If you will be attending the show and are interested in learning more about the exciting growth opportunities provided by Blue Mountain Station, please contact us at the following:

Even with a down economy, organic keeps growing. In its January/February, 2011 issue, Organic Processing magazine covers a bit of interesting news. According to a study titled “U.S. Families’ Organic Attitudes & Beliefs 2010″, conducted by the Organic Trade Association and KIWI Magazine, 41 percent of parents reported they are buying more organic foods today than a year ago, up from 31 percent reporting organic purchases in 2009. The survey highlighted that parents buy organic because they feel organic products are usually healthier, address concerns of pesticides, hormones and antibiotics, and provide a means to avoid highly processed foods and/or artificial ingredients. The study also showed three-quarters of U.S. families purchase some organic products, comprising a growth percentage of 36 percent versus 32 percent in 2009.

It is also looking good on the global stage. Organic Monitor in its new, “Global Organic Food & Drink Market” reports that 2009 sales increased 4.7 percent, small by organic standards, but growth none-the-less. The United Kingdom took a hit in 2009 as organic sales decreased while German sales remained constant. In contrast, some European countries showed significant growth, such as Sweden and France where sales increased by over 15 percent. The North American market became the “big dog”, surpassing Europe to become the largest organic market in the world.

So, food processors are optimistic, interested in new growth opportunities, organic sales are growing at home and abroad, and dirt will soon be turned for the newest innovation in the artisan food processing industry – Blue Mountain Station. Yes, I’d say that it’s looking good!