By Chad D. Lerch | FoodBiz
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MUSKEGON — Approaching seven decades of business in West Michigan, Cole’s Quality Foods Inc. has a recipe for success that’s simple and tasty: Keep creating foods customers crave.

Cole’s dates back to 1943 when founder L. Carroll Cole purchased the Cruikshank Bakery in Muskegon. The federal government dropped its ration of sugar when World War II ended, which allowed Cole’s to expand with several retail outlets.

But it wasn’t until 1972 when the company introduced what would become its signature creation — frozen garlic bread. Under the direction of new owner Wes Devon, the company closed its retail shops in the 1970s and the Muskegon facility was converted into a frozen food plant.

Goodbye sweet treats... hello garlic bread.

The company’s success with its niche product led to distribution expansions throughout the Midwest, the east coast and the south in the 1980s. In 1986, the Muskegon plant received $5 million in upgrades.

The company continues to be a leading maker of frozen garlic bread — known by consumers as “The Original Garlic Bread” — but it has expanded its offerings to include Garlic Toasts, Mini-Loaf, Breadsticks, Cheesesticks, Pizzasticks and Cinnamonsticks.

The company’s corporate offices are in Grand Rapids, while an additional manufacturing plant is in Iowa. Today, the Muskegon plant is used exclusively for making frozen garlic bread and toast.
Cole’s employs 150 people in West Michigan, 120 of which work in the Muskegon plant at 1188 Lakeshore Drive.

Like many food manufacturers, Cole’s felt a whiplash from an unexpected rise in flour prices in 2008. National reports suggest food commodities could again be on the rise in 2011.

John Sommavilla, president and CEO of Cole’s Quality Foods Inc., said his team is keeping a close eye on commodities “and preparing to deal with it so we don’t have price increases for our customers.”

“We are facing rising commodity costs — that’s for sure,” he said. “You’re already seeing major players in the industry touting price increases. That’s definitely not something we want to pass on to our customers. I think we’ll hold our own.”

Sommavilla said his company survived the recession, thanks in part to products that are inexpensive and tasty. The average Cole’s bread or toast product retails for under $3.

“Our product is a comfort food and an affordable part to a meal,” he said. “When you’re talking about pasta, sauce and bread, you can feed a family of four for under $10. When times are tough, people gravitate to comfort foods or foods that are affordable,” Sommavilla said.

Another ingredient to the company’s success? “We’re so adaptable. We’re nimble enough to change with the industry and be creative in terms of new items,” Sommavilla said. In fact, adaptability is an ingredient built into the company’s vision.

He also said West Michigan is a great place for Cole’s to do business because of the local talent and sales channels.

“We’re from here, we like it here, and we don’t want to do business somewhere else. We have a great source of talent here,” Sommavilla said. “We have great teammates in our corporate offices and our production facilities. And we have the luxury of having some really fine operating retailers.”

The company’s products are sold at Meijer, Spartan independent stores, Kroger and Wal-Mart.

“Having good retailers in your backyard really makes it a lot easier for you to try new products on a small scale before you take it to a large scale on the national side,” Sommavilla said. “New items are our lifeblood. We continually have new items in the hopper that we’re going to come out with. Innovation is one of our strengths and I think you’ll see new products from us this year.”

It’s been four years since the company successfully introduced its Cheesesticks product. “(T)hat was definitely a winner in its category. It’s been very successful for us,” Sommavilla said.

The company followed that up with Cinnamonsticks and a frozen meal called “That’s Dinner.” It’s a meal kit with bread, sauce and frozen pasta. Customers boil the pasta, heat the sauce and bread. It retails for under $9.

“That was different for us. That was a little different reach that is located with the entrées and the meals. It tastes great,” he said.