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Two produce companies cutting out their niche
By Matthew French
Staff Writer
Two companies coming from a similar vein have recently set up shop in the Lowcountry in a somewhat narrow niche: pre-cut, pre-packaged produce.
One of the companies, Easy Tray LLC, incorporated in 2003 and worked with engineering firms, process machinery manufacturers, sanitation experts and Clemson University’s graduate packaging program to perfect its production process.
The other, Phipps Farms Fresh Cut, is a new venture for a family-owned business that has been involved in farming for more than 100 years.
Easy Tray
Easy Tray late last year began investing millions into a 32,000-square-foot facility off Dorchester Road in North Charleston.
“The real impetus (for Easy Tray’s North Charleston choice) was an available building with the specifications the company needed: specifically height,” says Jim Friar, director of the Dorchester County Economic Development department. “They have tall coolers that needed clearance. They were originally looking at a site in (the Eastport Industrial Park in Summerville), but the building was just a shell and would have required an extensive up-fit.”
Easy Tray deals exclusively in pre-cut peppers and onions, and will market to supermarkets as well as restaurants and hotels. The line will be sold under the Too Goo Doo Farms brand, and has already secured customers in local chains Piggly Wiggly, Bi-Lo and Harris Teeter. The Too Goo Doo name was a staple in the area for decades, before management decided to cease operations several years ago.
“Our plan called for an initial rollout in the Southeast, so we considered locations from North Carolina down through Georgia for our first processing plant,” says David Ward, president and chief executive of Easy Tray. “Ultimately, we found an ideal building in the Charleston area that allows for easy access to I-26.”
Ward says the assistance the company received from the economic development community played an important role in the decision to locate in the Lowcountry.
David Ginn, president and chief executive officer of the Charleston Regional Development Alliance, says several of the Easy Tray principals and investors are from the region, which gave it an extra edge in the site selection process.
“Their first customers are going to be in the Southeast, so they focused their search on North Carolina, South Carolina and Georgia,” Ginn says. “The site selection was relatively short, they really didn’t begin until about nine months ago. The quality of life in this region won the day for us, plus the building and operational costs were less than the competition.”
Easy Tray has managed to assemble an impressive collection of people to serve as company officers and on its board of directors. Ward is a former vice president of Coburg Dairy and marketing director for General Mills and James Ferguson, an Easy Tray board member, served as chief executive of General Foods.
Phipps Farms
“The Phipps family has been farming in Loris, S.C., since the 1800s, and they have decided to take something of a new turn,” says Syed Musavi, a consultant working for Phipps Farms. “We are going to process and package produce, such as the salad and coleslaw you see against the wall in your local supermarket. We should have a new plant open in the first week of February in the Palmetto Business Park on James Island.”
The company will begin by employing about 15 people, but hopes to ramp up to full production within two months and bring about 20 more on board. Instead of focusing on a more narrow market, like the onions and peppers route of Easy Tray, Musavi says the company will have more than 100 different product lines being sold under the Phipps Farms Fresh Cut brand.
“A lot of processors buy from brokers, but we thought we could grow and process the vegetables, cut out the middle man and get a better deal to the end user,” he says. “We will be able to offer some products that either aren’t offered or are very hard to find, such as Dixie coleslaw. We will sell directly to retailers and the food service industry, so we’re also looking at restaurants and hotels and the like. We’re already talking to customers and we’ve gotten a good response.”
Randall Phipps, son of company president Robert Phipps, says the company’s family roots and family investment means the employees will be more invested in the success of the company.
“We’re going to grow, process and package the produce, and we can get an order filled the same day from our farm in Loris,” Phipps says.The company is banking on its close South Carolina roots and nearby supply of fresh inventory to set it apart from competitors, says Musavi.
“We’re talking about a South Carolina product and South Carolina people,” he says. “The state will benefit all around from the jobs created and food produced.”
“We have a very favorable business climate here and, combined with the lifestyle, the region offers a compelling place to start a business, expand a business or relocate a business,” he says. “This shows that entrepreneurship is still very much one of the important aspects for economic growth and strong development.”
Matthew French is a staff writer for the Business Journal. E-mail him at mfrench@crbj.com.
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