45th Anniversary Tribute
Transcription
45th Anniversary Tribute
45th Anniversary Tribute Third Generation Family Business Specialty & Natural Food Distributor Delivering Excellence CHEX2 The Griffin Report of Food Marketing January 2011 Chex Finer Foods Celebrates A 45-Year-Old Partnership Between Customers, Vendors & Team Members The Chex Finer Foods staff has one goal in mind: Delivering Excellence. “ Be a partner, not just a supplier.” This sums up one of the main tenets of the business philosophy of Chex Finer Foods, as it celebrates its 45th year as a regional, third-generation family-owned distributor of natural and specialty foods. In an ever consolidating and changing world of distribution, Chex has been one of the longest standing and strongest players in the Northeast marketplace on the specialty and now natural distribution scene. The company’s continued goal is to “Deliver Excellence” in its products and services to its customers, some of whom have been with Chex since it began out of a garage in Sharon, Mass., in 1965. In our meetings with Chex it became clear that there are two adjectives that best describe Chex’s approach to business: Passion and Commitment It is clear for Chex that its team members love what they do and are passionate about the products that they sell and customers that they serve. Jeremy Isenberg summed it up “When your passion is your work, it is no longer work and that makes it all worthwhile.” Chex is a service focused company, that takes the commitments it makes to its customers very seriously and as one of their core values states “Go the extra mile for the customer, Always.” Mike Isenberg added “In a day and age where many distributors are going to a self service model and pairing back more services, we are coming out with more programs, adding more people, and continually reinvesting back in the business for the long-term growth of the company.” This long-term approach to business is in sharp contrast to some of the short-term profit focused approaches that other companies can find themselves taking. Michael and Jeremy described carrying on the values that were started by their grandparents and reflected how their grandmother Dorothy would always say “you are always selling yourself first.” The value that Chex places on the quality of its relationships - with its employees, customers, and vendors underscores the way in which the company operates. The company’s goals have been and continue to be: • Providing a first class customer experience • Offering a superior product mix • Leveraging insightful tools, expertise and product knowledge Chex has become a major specialty and natural food distributor serving customers throughout New England, New York and New Jersey. A turning point for the company was in 1999 when they started servicing 13 Bread and Circus stores – this helped shift the direction of the company to be more focused on the natural marketplace and shifted its product mix to be more “all natural” in nature. Since that time, Chex has expanded its relationship with what is now Whole Foods Market, servicing 49 stores from Maine to New York. Several of the programs that Chex has developed with Whole Foods Market regionally have been expanded nationally due to their success including many of their Laurel Hill products which can be found in Whole Foods Markets nationwide. The torch that was carried dutifully and skillfully by their father David was passed in 2004 to the next generation, when the third generation of Isenbergs took over running the company. At that time, Jeremy was named president and focused more on the “outside” -growing sales and vendor relationships. In 2003 his brother Michael joined the team and focused on the “inside” building out operations, technology, and enhancing Chex’s marketing programs. The company business performance in 45 years (Continues on page CHEX3) January 2011 The Griffin Report of Food Marketing CHEX3 Chex Finer Foods Celebrates 45 Years... (Continued from page CHEX2) is outstanding. Company sales have tripled in size in the last five years and there is budgeted growth of 15 percent per year. Their in-stock position exceeds 95 percent. In a tough and challenging economy suffered by all in the last year, Chex is finding that business is significantly up. According to Jeremy Isenberg, company president, company sales have increased more than 20 percent this year. Chex is a key supplier to a “diverse, cross section” of independent, natural, and multiple store chains from Maine to New Jersey. They have had many customers for more than 40 years, but at the same time have significantly increased their customer base. These new customers have been attracted to Chex for their top notch service, fresh approach, and commitment to their businesses. An estimated Chex customer count is 800 companies; five years ago, customer count was around 400 companies. According to the Isenberg family “we are dedicated to the growth and success of the independent, natural, and specialty trade in the Northeast.” Chex has reaped the benefits of a growing shopper trend interested in specialty and natural foods as well as wellness and nutrition. More people are cooking at home and looking for value. Mike Isenberg, company vice president, said that these trends have played well into Chex’s approach in the marketplace. For example, Chex’s pasta and pasta sauce category is up 70 percent in sales over two years ago, as Chex has marketed specialty pasta and pasta sauce as a “value meal option.” Olive oil is also showing huge growth category with sales up over six times in the last three years. Jeremy added “I used to think there were 3 kinds of olive oil ¼, ½ and 1 Liter. Now we carry over 65 olive oils from around the globe and I anticipate continued expansion and growth.” Chex has even developed their own oils with their producers, including Verolio and are planning to add an unfiltered extra virgin olive oil under the Laurel Hill ban- Meet the Isenberg family running Chex Finer foods. Pictured above are Mike, Jeremy, and David. ner in 2011. The Isenbergs point to a great collaboration between their vendors and the company as each has shown an unwavering determination and hard work to please their customers. Taking It To the Next Level The Isenbergs have also invested in many technological tools to help each customer grow the business. Each of Chex’s 10 sales staff members has a “Tablet” wireless computer that, at a moment’s notice, can bring up a “sales library” which puts all of chex’s tools right at a sales person’s fingertips. It arms each sales person with category reviews, new item information, top sellers, promotions and also transmits orders wirelessly back to the ware- house. Their salespeople can customize their presentations and information to meet the retailers’ needs and demographics. Within the next year, Chex will be looking to move to a larger facility in Southeastern Massachusetts that will more than double the size of its current Attleboro facility. With this larger facility, Chex will be able to offer even more unique items. But it is not the size of the company that will determine Chex’s continued success. It is the focus on each customer and their needs that will pave the way for continued growth and success. The portfolio and quality of specialty and natural foods that they carry has continues to expand, introducing over 300 new items a year. They anticipate the new items will continue to increase even further once they are in the new facility and could include other product lines not presently carried. “We don’t have to be the biggest company. What I want are customers who keep coming back to us for service and expertise. We focus on customer service and want to grow our customers businesses” said Jeremy, company president. Mike added, “What we want is to be on the cutting edge and educating our customers about new items and new trends.” CHEX4 The Griffin Report of Food Marketing January 2011 When Most Think About Retirement, Jay Isenberg Began A New Family Adventure I n the fall of 1965, Jay Isenberg, at the age of 55 years old, when most men think about retiring, had the vision and fortitude to start a specialty food company with the support and encouragement of his beloved wife, Dorothy. Along with their son, David, they worked tirelessly to build a family business committed to honesty, hard work and a dedication to both valued customers and loyal employees. Mr. Isenberg began his food trade career building a successful wholesale grocery business for many years in Fall River, Mass. From there he went into an unrelated field but his passion for the food business drew him back to the industry and he became president of Bond Foods (subsequently becoming Millbrook Distributors). He grew the business rapidly through strong sales. However, issues with his partner led him to sell his shares and strike out on his own and start Chex. Beginning in a garage in Sharon, Mass, at that time, the name of the company was Chex Distributing Co. But when David was on the road many customers inquired what Chex distributed, so the Isenbergs decided to change the name of the company to Chex Finer Foods, noting the types of customers they were serving and products they were distributing. According to David, his father loved sales, his customers, and the specialty food business. In the first few years of business they developed the Laurel Hill brand, which is now the company’s top selling line. It was initially created to fill a void for products that customers requested that weren’t available in branded options. In the late 1960s Chex also started to import products from Europe, which were some of the ways they solidified relationships with their customers and grew their sales. Interestingly, both Laurel Hill and an expanding import business are two of the drivers of growth for Chex today. Pictured are Chex Finer Foods company founders Jay and Dorothy Isenberg. Among the business principles Jay imparted to David was not just to sell his customers an order but to sell them the right products for their stores and help make their businesses more profitable. “We all worked very hard and we started in on the ground floor and it makes me proud to look at the business now. It has been and is still a great journey,” said David. David and Jay were on the road four days a week selling and then came into the office on Fridays to purchase the company’s weekly requirements from their suppliers as well as taking care of internal Among the business principles Jay imparted to David was not just to sell his customers an order but to sell them the right products for their stores and help make their businesses more profitable. business. David recalls early on “I never had by own desk, but a corner of my Dad’s desk got the job done.” Two years later in 1967, Chex Finer Foods had outgrown the garage in Sharon and the company moved for a short period to a new site in North Attleboro, Mass., before they developed their current site in the Attleboro Industrial Park in 1971. “Having to personally guarantee the business kept you working during the day and worrying about it during the evening,” said David. During the 1970s, the company added additional personnel in sales, office, warehouse and transportation and grew very rapidly. In the late 70s, Chex lost the Star Market account, which was a key part of its business. This was a turning point in the company’s history, as the Isenbergs intensified their focus on the region’s independent and natural food retailers. This has been a great path and has led to many of the opportunities that the company has capitalized on today, including their strong position within the natural food industry today. David ran the business successfully for many years, deepening the relationships with their customers, solidifying the rapport with their vendors, and helping the company create a very strong reputation within the industry. Jay retired in 1994 at the age of 84 years old from Chex, and at the end of his career when he could no longer drive, had a driver take him around to see his customers that he so deeply cared about. Almost nine years ago, David’s sons entered the business – Jeremy in 2002 and Michael 2003. “The boys came into a company with a solid foundation. They have done a terrific job caring for the customers, vendors, employees and have worked hard to continue strong growth. The boys have come in with a lot of energy, enthusisiam and new technol(Continues on page CHEX5) Con gra of CH Proud A tula EX F Par tion iner tner s on Foo 45 Y ds ear s! Sold Sold exclusively exclusively to to Gourmet Gourmet and and Specialty Specialty Retail Retail January 2011 The Griffin Report of Food Marketing When Most Think About Retirement, Jay Isenberg Began A New Family Adventure... A Few Words From David Isenberg C (Continued from page CHEX4) ogy. They have taken it to a new level.” said David. In 2007 due to the company’s strong growth Chex expanded their Attleboro facility by another 33 percent. This additional capacity couldn’t have come at a better time as the next generation pushed the company’s sales to record highs and Chex expanded their trading area. Over the last few years, they have developed very strong business in the Metro New York market, expanded to upstate New York, and added significantly to their more outreaching territories including Northern Vermont and Maine. When asked why he thinks Chex is so successful, David Isenberg said, “We take care of our promises to our customers. We care about them, always have and we listen to them. We create a positive environment for our customers, vendors, and staffers. We try and keep our customers on the cutting edge of specialty and natural foods.” David remains involved with the business, helping out in the purchasing of goods. “After 45 years, it is still in your blood,” he said. “I love the business as did my father. I am proud of what we have done and proud of where the boys have taken it and the value that they have perpetuated.” Chex Finer Foods is headquartered in Attleboro, Mass. A new larger headquarters may be sought out for the future as the company continues to expand. CHEX5 hex Finer Foods has currently achieved the distinction of being in business for 45 years, spanning three generations, serving the independent retailer. When taking a look over the shoulder it is amazing to see how things started – how they progressed, where they are, and what makes the ball keep rolling. My dad, at the age of 55, started Chex Distributing Co. in 1965. This was the year I graduated from college and a good starting salary out of college was around $10,000. After taking the summer off my brother-in-law urged me to go and “help Dad out.” We started out of a garage in Sharon, Mass. My father truly gave me the opportunity to start with nothing – absolutely nothing. I started to work in an unheated warehouse where the olive oil was turning cloudy from the cold and I soon learned that “if you keep moving, you will not be cold.” It seems that I have not been cold since. When I entered into sales, at that time, we were the first guys on the block calling on the independents. We were welcomed by retailers looking for our type of items. We often spoke of how this was a gentlemen’s business. Customers asked for little, were very loyal and there was not lots of competition. How things have changed!! But actually it is a good process to separate the men from the boys. Over the years, the weak or mismanaged fell by the wayside including both retailers and distributors and yes, even vendors. We realized that certain values lend to annual and long term success. You must be passionate and love what you do. Hopefully we work 24/7 not just for the glory or for the paycheck but to service our customers and to take this passion in making them successful. Be a partner, not a supplier. Be all you can and then ask what more can I do. Those who do will be blessed with many more years ahead and a bright future! CHEX6 The Griffin Report of Food Marketing January 2011 Chex Wide Range Of Specialty & Natural Product Offerings Are Sourced Far & Wide Laurel Hill Brand Chex’s relationship with its flagship line of Laurel Hill goes back to the company’s inception in 1965. The expanding line features close to 90 SKUs of tortilla chips, premiums snacks, salsa, imported vegetables, olives, beans and grains, BBQ sauces, capers, and Asian foods. The Laurel Hill line has been reinvigorated with new packaging over the last few years and there is now a clear farm scene identity which helps reinforce the brand positioning Imagine a place where the simple life is the way of life, and true happiness is enjoying the company of your family and friends while sharing the pleasures of great food. Welcome to Laurel Hill Chef Bobby Flay poses with Jeremy Isenberg with the company’s top brand: Laurel Hill. O ver the last five years, Chex has doubled the size of its product mix and the company’s strong partnerships with its vendors have been a key driver of their success. Deborah Eddy, Chex director of purchasing, noted “We work very hard in introducing new products to market and offering our customers better quality and unique items that won’t be found in the big box stores.” In addition to a strong portfolio of local products, the company sources their products both domestically and globally. Presently Chex imports products directly from England, Spain, Italy, and Costa Rica. Chex is consistently innovating and looking for trends to keep the product mix fresh. “We really enjoy introducing new products and establishing them in our marketplace,” added Jeremy Isenberg, “Many of our best products have come from collaborations with our customers and working with them on requests that they have turned to Chex for us to help market.” Jeremy has also been a leader the Regional Distributor Group (RDG), an association of other independent distributors from around the country. This has been a great network of distributors to share ideas, products, and best practices and programs. This group has collaborated on national new product rollouts and is a great source of new products for Chex. Given Chex’s size and ability to be nimble and give more attention to their vendors, Chex has emerged a viable alternative to national distribution options to help vendor grow their business. Over the last several years, Chex has expanded its product portfolio from vendor referrals as well, which in 2010 new vendors have accounted for almost 1/3 of their growth. Retailers and consumers alike have responded very positively to Laurel Hill and the quality of products that they have created. Laurel Hill has begun to emerge as a “friendly alternative” to national brands that have proliferated retail channels and the brand is a high quality option that retailers can rally around. Mike said, “Since 1965, we have been providing our Laurel Hill products to fine retailers throughout the Northeast. We founded Laurel Hill by listening to our customers and developing an initial group of food products that met our high standards for quality and taste. Today, over 45 years later, Laurel Hill has continued to expand our product selections and we are now looking to bring Laurel Hill to passionate food lovers around the country,” he said. The Laurel Hill flagship specialty tortilla chips were a SOFI Award silver finalist for Outstanding New Product at the New York Fancy Food Show in 2009. The Tortilla Chips now include five items: Multigrain, Sea Salt and Lime, Nacho Cheese, Olive and Caper, and Pumpkin Seed. The product line has been featured on Good Morning America and the CBS Early Show with noted Chef Bobby Flay. Laurel Hill has been featured by many newspapers and magazines. Current press accolades for Laurel Hill Chips include Body + Soul Magazine, Parenting Magazine, Cookinglight.com, The Boston Globe, The Nibble, Delish, and more! According to the company, due to the strong performance of the Laurel Hill brand in the Northeast markets serviced by Chex, there will now be a national rollout of three SKUs of the brand in Whole Foods Markets stores in January 2011 and plans for future expansion in the salty snack and other categories. The company has also assembled a sales and brokerage network for 2011 to expand Laurel Hill placement in better quality retailers throughout the country. For more information about Laurel Hill please visit: www.laurelhillfoods.com January 2011 The Griffin Report of Food Marketing Extolling The Laurel Hill Brand CHEX7 CHEX8 The Griffin Report of Food Marketing January 2011 Chex Uses Many Tools To Deliver Excellence C hex Finer Foods is committed to “Delivering Excellence” in specialty and natural foods. Chex Finer Foods’ approach is driven by a commitment to see their customers succeed and add value to their customers’ businesses beyond the products that they sell. Jeremy Isenberg shared “We run our business by making sure we are helping our customers are successful, as if they are successful, it will come back to us.” Chex Finer Foods provides personalized service, builds store awareness about specialty and natural foods and continuously works to maximize its customers’ product mix. Chex has a dedicated and experienced sales team that has been central to the company’s growth. The Chex sales team has territory managers that have been with the company from 12 to 26 years and have had multiple sales people retire with over 20 years of service to the company. The Chex owners also work actively with their sales team and are resources to their customers and help the company respond quickly and thoroughly to requests and opportunities. ing” show to optimize summer profit opportunities, source new items and coordinate vendor support. Extensive shipper program. 4th Quarter Holiday Program - Industry leading holiday program including holiday traditions, baking, entertaining, candy & confection. More than 800 items with everyday & seasonal promotions and advertising opportunities Specialty Food Buzz – The Chex bi-monthly newsletter provides insights on category and retail trends, new items and Chex programs. Shelf Talkers – Chex offer shelf talkers, which generate awareness about specialty and natural foods, drive sales at retail and distinguish their customers’ offerings. Chex customizes its marketing and advertising to meet the needs of its retailers. “We love working hand in hand with our retailers. We customize our presentations to integrate our customer’s sales data and work with them to provide insights, expertise, and support to drive their sales. Many of our best programs have started as collaborations with our customers. We are fortunate to have such committed customers that want to work with us to help grow their business” said Michael Isenberg, company vice president. Marketing Programs To help differentiate their customers from their competition, Chex offers many successful marketing tools, programs, and services that include: New and Unique Items – Chex is consistently innovating and looking for trends to keep its product mix exciting. They also offer upscale and unique items that you won’t find at the big box stores and will attract sophisticated shoppers and food lovers. Business Reviews & Analysis – In-depth reviews of a store’s sales; store audits; benchmark analyis presenting category, top growing items and new item comparison; top movement voids; top new items; and on-trend review. Category Reviews - Monthly insights of category growth, top items, new items and trends. Merchandising Excellence – Chex works with its customers’ hand-in-hand to implement merchandising best practices and resets. Chex conducts store audits to ensure stores are merchandised effectively. Annual Spring Tradeshow - “Two Day BuyShelf talkers, explaining the brand and the product, are common merchandising tools used by Chex Finer Foods. January 2011 T ‘The Heat is On’ At Chex 20th Annual Trade Show wenty years ago, some key Chex vendors urged the Isenbergs to provide a venue to help further build their businesses before the important summer selling season. This collaboration was the initial inspiration for Chex’s Annual Spring Trade Show, which is now in its 20th year. “They told us, we need an opportunity to plan in advance for summer and find out what was new in the specialty and natural trade,” recalls Mike Isenberg. “The first show was a tabletop show held in the Chex Attleboro warehouse 20 years ago. Today it has expanded to a two-day event at Twin Rivers in Lincoln, R.I., with over 150 vendors in attendance. According to Jeremy Isenberg, company president, “While the initial shows were small in size, we all came together to celebrate our amazing customers and vendors, write some great orders, learn about new products and have fun. As we have grown and expanded, that same family spirit of our initial shows still carries on.” The two-day show is set for Wednesday and Thursday, March 16-17. Show hours are Wednesday from 10:00 a.m. to 5:00 p.m., and Thursday from 9:00 a.m. to 4:00 p.m. Four hundred fifty retailers are expected to attend. Mr. Isenberg views the show as not just a selling show but a meeting of ideas and opportunities. Stores can work one on one with vendors to plan out summer purchases, deals and co-op advertising support. They can also see and taste the new items, get merchandising ideas and book shipper displays which help drive incremental sales and introduce new items. The theme of this year’s show is “The Heat is On,” as Chex and its customers prepare for the summer season “We view our show as a great community event,” said Mike Isenberg. “We see our customers as a part of a big extended family and we look forward to seeing them every year as we all collaborate with our vendor partners.” For more information or registration, call 800-2278114 or e-mail info@chexfoods.com. The Griffin Report of Food Marketing CHEX9 A Few Words From Some Chex Customers “I love working with you and your team. You are one of the best on the industry.” - Errol Schweizer, Whole Foods “Before we sold specialty foods, now we have a specialty foods program that is helping drive sales.” - Tim Devanney, Highland Park Market “Chex continues to provide us wit the products and opportunities to grow our specialty food business year after year.” - Mike Flaherty, Crosby’s Marketplace. “It’s great doing business with a partner; Chex is not just a supplier of goods; but a supplier to help meet and exceed our sales goals.” - Russ Meredith, McKinnon’s Markets “We need a supplier who treats us like family and Chex has proven that week after week. They really care about the success of our business." - Pat Ring, Ring Brother’s Marketplace “A true leader in specialty and gourmet foods! Great variety, knowledgeable sales force, service second to none.” - Tom Lajoie, Fitzgerald’s CHEX10 The Griffin Report of Food Marketing January 2011 Thoughts On Charitable Giving David Isenberg helps at the Salvation Army. BY DAVID ISENBERG H ow did this journey begin? If “everything I know,” I learned from my father, then everything charitable and giving, I learned from my mother. Dorothy Isenberg was a most special and unique person. In addition to being a loving mother and the co-founder of Chex Finer Foods, she spent her endless energies and thoughts about how to give back and support a multitude of community causes. She was truly a visionary and never stopped reaching out. Her range was diverse – from bringing the Israel Philharmonic to Rhode Island in 1954 – to establishing a Grandparents Guild for the Children’s Museum - to the Rhode Island Philharmonic – to the Rhode Island Civic Chorale and Orchestra - to mentoring and caring for young underprivileged children, just to name a few. She worked tirelessly and never took no for an answer. “You can never say no to Dorothy!” She solicited for Chex when we started up, she never knew pricing – she sold packages of integrity. And succeeded! Personally, I always had the thoughts of giving money to charitable causes upon my demise, yet I wanted to accomplish and enjoy this process while I was alive and to lead by example for my children. We established the David C. Isenberg Family Foundation focusing on children, education, the arts and Jewish causes which was funded in great part from Chex’s year end planning. We wanted to touch people’s lives. Some of our heart warming efforts include funding a grogram that brings joy and happiness to sick children at the Hasbro Children’s Hospital in Providence as well as the Children’s Hospital in Boston; sending a child to asthma camp, funding seed money to have a book written about children from the Holocaust; giving money anonymously to various causes such as paying for a family’s heating bill before it was going to be turned off during the bitter cold winter; providing food gift certificates for Thanksgiving for families in need; sending a young child in need to a Jewish camp for the summer; and sending money to a Temple in New Orleans that was devastated during Hurricane Katrina. Some of our larger efforts include leadership gifts to the Providence Children Museum; the Library; our Temple and lately establishing an endowment to provide kosher meals for the elderly and shut-ins. It is most rewarding to see all my children carry on the family tradition by becoming involved with causes close to their hearts and continue this legacy of giving. At Chex, we initiated a program of “giving back” wherein our employees can make their own decisions of where charitable company funds can be directed. I feel that it is a truly a privilege to be able to tread this path, reach out to those less fortunate and take the responsibility of giving to others. We must leave our footprints in the sand. May this tradition continue for generations to come! A True Staff Dedication nticipating the blizzard on Wednesday, Jan 12 which hit the East Coast with 18 inches of snow, Chex Finer Foods planned ahead and kept deliveries running on time and ahead of schedule. On Monday night, Jan. 10 the warehouse worked ahead, coordinated with customer service and sales to call the customers and shipped the Boston run a day early. On Tuesday night, Jan. 11 the warehouse worked ahead, coordinated with customer service and sales to call the customers and shipped the Vermont run a day. They also worked ahead and picked the North Shore run which ships on Thursday just in case. On Tuesday night, Chex Operations Manager Glenn Nordstrom slept at Chex Finer Foods headquarters so we could be open at 7 am the morning of the blizzard. Everyone checked in and those that could made it in to ensure all customers would get their orders on time on Thursday. All runs will be delivered on Thursday and all customers were delivered on or ahead of schedule. According to Mr. Nordstrom, "Our customers are open so we need to be open. We worked ahead, communicated with the customers, and are 110 percent dedicated to their success. This is what we do." January 2011 The Griffin Report of Food Marketing Scenes From Past Chex Trade Shows CHEX11 CHEX12 The Griffin Report of Food Marketing January 2011
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