WESRAC Solution
A new strategy focused on growth opportunities with regional grocery chains and wholesalers not being adequately serviced by the U.S . predominate suppliers
Positive Outcomes
Since beginning its public/private sector partnership with the TAA for Firms Program, sales increased 121% to $28.9M, employment increased 40% to 466, profitability doubled, and productivity improved 57% to $62,057 sales per employee.
Details
In the early 1990’s the company added new “ready-to-eat” processed peeled “Baby Whole” carrots. The company achieved limited success marketing and selling its products up until 1996. However, beginning in 1997 increasing price competition from foreign competitors impacted its higher margin process carrot sales. In 1998 processes sales decreased 11% and employment during the first quarter of 1998 declined 7%.
The company, with assistance from the University of Southern California’s Western Trade Adjustment Assistance Center (Western TAAC) became certified as trade impacted by the US Dept. of Commerce, Economic Development Administration (EDA) in June of 1999.
Western TAAC and the company’s management developed a strategy to focus on growth opportunities with regional grocery chains and wholesalers not being adequately serviced by the US predominate carrot suppliers. The implementation of this strategy allowed the company to capitalize on its high quality California grown carrot products and differentiate itself with year-round supply and superior service to this customer base. The company could position itself between the much larger, better-capitalized, market leaders and the smaller regional and foreign import carrot suppliers who rely predominately on seasonal low price competition.
In October 1999 the company began participation in the Post Approval phase of the TAA program. Over a three year period, Western TAAC and the company’s management implement four production engineering projects that were key factors in expanding processed carrot production and waste water treatment capacity.
Three years after program completion, the results are remarkable. These projects along with other strategy implementation led to outstanding growth and stability for the firm.