Past Winner Stories
Darlington Farms
It’s nearly impossible to pick up a newspaper or turn on the television without hearing about America’s obesity problem. The low-carbohydrate craze,with diets such as Atkins and South Beach,changed the eating habits of millions of Americans over the past few years. When cookies and baked goods are your business,an aversion to sweets and carbs can prove to be a disaster in the making. Darlington Farms faced and overcame this challenge.
Phil Hockemeyer,president,knew he was facing a significant problem when the company began to lose accounts. “Cookies weren’t the staple they had once been,” he said. When their two core business segments – schools and nursing homes – began to ration the sweets,the company immediately felt the hit. Instead of serving cookies with lunch in schools or for an afternoon snack in the nursing homes,these treats became a “special occasion” item. Cost reduction programs through Medicare and Medicaid forced many nursing homes into bankruptcy or precarious financial situations. Cookies became a low priority. The company lost two major accounts representing 10 percent and 12 percent of their sales,respectively. In addition to the lost accounts,the company lost two key managers and faced more sticky situations on the horizon. As Hockemeyer said,“The business was crumbling.”
“We couldn’t continue with the status quo,”he said. “We knew changes were in order for us to survive.” The owners recognized the company needed solid executive sales talent to build the business. Two new regional sales managers were hired to reestablish the sales presence and contribute to new product ideas. New products, that met the new nutrition paradigms of core customer segments,were necessary.
Breakfast programs through the school systems were growing quickly. “There were many references to the notion that you can’t teach a hungry child,”Hockemeyer said. “We took that as our mantra.” The company began developing breakfast pastry items that were nutritious and tasty. Several product categories were launched into the school breakfast programs and the company recently landed one of the largest contract feeders in the U.S.to schools and healthcare,serving 1.4 million meals each day.
The healthcare market also received a new focus. The team created a unique nutritional product for special diets. With a total market potential of $50 to $80 million, Caring Cuisine was crucial for the recovery of the company. Darlington Farms solicited nursing home professionals and dieticians to provide feedback on the products. Then,using trade shows,direct sales and a video training series,the company set out on the road to recovery. After 1 1/2 years of development,it only took four months to get the first sale with a healthcare chain. In the next few months,commitments were secured with over half of the top ten largest chains.
“Through sheer grit,we took a precarious situation and used the talents and determination of our people to seek new solutions,”Hockemeyer said. While the company suffered several years of sustained losses,the investment is now paying off for Darlington Farms. They turned a corner in 2004 and 2005. Sales grew 19 percent in 2004 and the company is already ahead 15 percent for 2005,setting the stage for a solid future.
Phil Hockemeyer,president,knew he was facing a significant problem when the company began to lose accounts. “Cookies weren’t the staple they had once been,” he said. When their two core business segments – schools and nursing homes – began to ration the sweets,the company immediately felt the hit. Instead of serving cookies with lunch in schools or for an afternoon snack in the nursing homes,these treats became a “special occasion” item. Cost reduction programs through Medicare and Medicaid forced many nursing homes into bankruptcy or precarious financial situations. Cookies became a low priority. The company lost two major accounts representing 10 percent and 12 percent of their sales,respectively. In addition to the lost accounts,the company lost two key managers and faced more sticky situations on the horizon. As Hockemeyer said,“The business was crumbling.”
“We couldn’t continue with the status quo,”he said. “We knew changes were in order for us to survive.” The owners recognized the company needed solid executive sales talent to build the business. Two new regional sales managers were hired to reestablish the sales presence and contribute to new product ideas. New products, that met the new nutrition paradigms of core customer segments,were necessary.
Breakfast programs through the school systems were growing quickly. “There were many references to the notion that you can’t teach a hungry child,”Hockemeyer said. “We took that as our mantra.” The company began developing breakfast pastry items that were nutritious and tasty. Several product categories were launched into the school breakfast programs and the company recently landed one of the largest contract feeders in the U.S.to schools and healthcare,serving 1.4 million meals each day.
The healthcare market also received a new focus. The team created a unique nutritional product for special diets. With a total market potential of $50 to $80 million, Caring Cuisine was crucial for the recovery of the company. Darlington Farms solicited nursing home professionals and dieticians to provide feedback on the products. Then,using trade shows,direct sales and a video training series,the company set out on the road to recovery. After 1 1/2 years of development,it only took four months to get the first sale with a healthcare chain. In the next few months,commitments were secured with over half of the top ten largest chains.
“Through sheer grit,we took a precarious situation and used the talents and determination of our people to seek new solutions,”Hockemeyer said. While the company suffered several years of sustained losses,the investment is now paying off for Darlington Farms. They turned a corner in 2004 and 2005. Sales grew 19 percent in 2004 and the company is already ahead 15 percent for 2005,setting the stage for a solid future.