News Agribiz Stalking Growth one veggie at a time: Michigan Freeze Pack realizes growth from investments in equipment, quality, safety
Stalking Growth one veggie at a time: Michigan Freeze Pack realizes growth from investments in equipment, quality, safety
Order Reprints
Follow @MiBiz
By Joe Boomgaard | FoodBiz
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
HART — Anyone who has taken a stroll through the frozen foods aisle at any grocery store across the country has likely seen products processed at Michigan Freeze Pack LLC, but people probably have never even heard of the 23-year-old food processing company.
 |
|
Mike Sutton said millions of dollars in investment at Michigan Freeze Pack have started to pay off as the company develops more frozen food products and has started working with new customers. Achieving various quality standards and using SQF auditing has been a key factor in that new business, he said. PHOTOS: JOE BOOMGAARD |
 |
 |
Mike Sutton, the company’s general manager, certainly had never heard of the company before he started working there eight years ago, even though he lived only a short distance away in Shelby and had even worked for local farmers as a youth.
Michigan Freeze Pack specializes in individual quick frozen (IQF) food processing of mostly locally grown vegetables and fruits at its 100,000-square-foot facility. For example, rather than have a mass of frozen vegetables in a bag, the company uses a process that blanches and freezes each piece individually and then bags them, making them easier to handle for the end user.
The company claims it is the world’s largest processor of IQF-processed whole asparagus spears, a main staple for growers in surrounding Oceana County. That product, along with several other innovations, has led Michigan Freeze Pack on a growth spurt. Over the past seven years, the company’s sales have tripled.
“If we don’t grow another 25 percent in the next two years, I’ll be very disappointed,” Sutton told FoodBiz. “Our plan is to grow. We’re on the cusp of getting into new offerings that will allow us to go from an 8-month to an 11-month operation.”
While the business operates 12 months of the year, currently food processing has an 8-month cycle for the company. Processing starts in May with asparagus and ends in December with carrots and cabbage. At the height of production, the company employs about 200 people over two shifts. The company can process 40,000 pounds of food per hour, depending on the mass of the product and the specifications of the customer. Over the production season, Michigan Freeze Pack processes and puts into cold storage an average of 50 million pounds of food, Sutton said.
“And we’re positioned to grow. (Food processors in Michigan) have gained a lot of credibility. Now, we’re being recognized more fully (as an industry) and appreciated,” he said.
A host of investments and new innovations could help the company expand the duration of its food processing. Over the next year, Sutton said the company plans to add $1 million in new equipment to handle a new and as-yet-undisclosed product “if things fall as we anticipate.” That investment comes on the heels of a $3 million equipment investment three years ago and in addition to $500,000 in annual upgrades in the plant, he said.
Michigan Freeze Pack had been fairly stagnant until nine years ago, when the previous owner sold the company in equal parts to four local families, each of them involved in agriculture. The former owner wanted the company to remain small, but the new owners had a vision to turn the company into a year-round business, as well as serve as a home for the products they grew around the region, Sutton said.
But the company has a broader supply chain than just those four families. Sticking within about 50 miles of the Hart facility, Michigan Freeze Pack works with about 60 asparagus growers, 15 celery farmers, and about five carrot growers, Sutton said.
“The whole supply chain is right here, … but diversification is key. If I can have 50 guys supply me with 100,000 pounds each or one supplier supply me 5 million pounds, I’d rather have the 50,” he said, noting that working with numerous growers can pose its own set of challenges at times.
Sutton said the company has 50 active customers, mostly east of the Mississippi. Only two are in Michigan, and both of them are in West Michigan. Last year, the company started a “one-stop shopping” approach for various customers to provide a broad selection of products in one shipment.
“If you go to the frozen food section of many stores, you’ll see our product, but you’ll never see our name,” Sutton said.
He said the company makes connections at an annual food conference in California, where 40 potential customers are on hand. Michigan Freeze Pack also works with food brokers, although many customers are bypassing middlemen so they can get better pricing.
“We think our reputation has grown and that has enabled us to grow the business. We have high quality products,” Sutton said.
In one recent case, the food processor was able to secure asparagus orders away from Peru. It developed a new proprietary process for asparagus spears last year that blew away the competition and impressed the buyer so much that they ordered 1 million pounds of it this year.
One key value proposition for Michigan Freeze Pack, no matter the product, is its product quality and food safety measures. Over the years, the company has driven more and more to control the product before it even enters its doors, all the way back to the seed. Sutton said the company employs third party Safe Quality Food auditing — now demanded by large retailers like Wal-Mart — which has helped it secure and retain customers in a competitive environment. It’s also taken measures to secure its plant as much as possible.
Sutton said securing processed products is made much easier because Hanson Logistics is located right next door to its plant. In fact, finished product always stays under the same roof. Almost 98 percent of Michigan Freeze Pack products go to Hanson Logistics’ facility.
“It’s a big selling point for security and cost,” he said. “A lot of processors produce products and put them on a truck and ship it. There’s a cost and a security issue. Here, it’s all under one roof, and that’s a big selling point we try to exploit.”
As the company looks to grow, Sutton said it would look to new products and processes, as well as new industries. The food services industry remains an untapped market for Michigan Freeze Pack, and he believes the company has a lot to offer chefs looking to promote local cuisine and consumers looking to eat local food.
