Archive for ‘Company Stories’

Cookies for the People! Good Business Case Study: Coppenrath Cookie Bakery

By , 15 March, 2012,

German Sweets Tour: Niederegger | Coppenrath

German Candy Industry Report: Part 2

Did you ever wonder who makes those European cookies you see at the drugstore with cute patterns printed on or a tablet of chocolate…and how they get to our store shelves at some insanely low price like $1.99?

I have. So it was no minor thrill to visit one such bakery, in Northern Germany. In my second report from an epic mid-sized confections tour with German Sweets , learn about Coppenrath Fein Bakerei, a several generation old, family bakery whose intention is to produce natural, excellent baked goods at a price accessible to any consumer.

The answer to that first question came from Andreas Coppenrath: volume. Coppenrath sells in about 100 countries, with 15,000 tons of cookies annually emerging from a relatively small factory where, in the high season, 250 people work. While this may sound like a lot, their reach in the U.S. is limited by their capacity to serve our nationwide chains…as we found with many of Germany’s old family owned sweets businesses. (As someone who enjoys discovering products abroad we can’t get at home, it’s not necessarily a bad thing!)

On our factory tour, Andreas particularly impressed me with his leadership skills, openness about the operations, and innovation. For example, 6-packs of Sponge Cakes for tart bases get sold alongside strawberries. We loved their cookies (especially one reminiscent of a Milano but with coconut).

Andreas left no question unanswered — with something to illuminate bakers and food manufacturers of all sizes:

Some Background – “Honor the past and go for the future.”

This sixth-generation family business started in 1825. World War II might have felled the company, but Andreas’ grandmother, suddenly a single mom in 1942 after her husband died, managed to keep it going with eight kids, all the while harboring Jewish locals in her cellar. The town memorialized her with a street in her name.

Coppenrath cookiesToday Coppenrath is the leading producer of speculaas (or speculoos, in Wikipedia and the Netherlands), a seasonal spice cookie pressed by brass rollers into shapes like windmills, kids, and animals. “Speculaas” may ring a bell. It is also the magic ingredient used in “cookie spread” as well as a filled chocolate currently sold at Trader Joe’s.

Secrets to Sweet Success

Employees are trained in bakery — rather than only in a rote production method — so they can understand if the smell, texture, and result work or how small changes might affect the recipe.

Keep employees very happy. Production workers get a daily 3-4% of salary bonus based on meeting production goals. Andreas has an open door policy. No wonder some employees have been there 40 years.

One line, many cookies. They can switch heavy brass rollers to imprint patterns. At a high enough volume Coppenrath can produce various designs and co-pack for others who want custom designed cookies.

The company prototypes products not in small batches but on the production machines to see what the real result would be.

Much equipment has wheels so it can move around as needed. In one shift they can produce 40,000 packages. In 24 hours, 100,000 600-gram packs.

They source flour from several mills. Flour quality and flavor varies by wheat growing region. They blend to their specification and choose the flours that fit the best. They visit their suppliers to check the facilities.

Challenges

Ingredients prices have skyrocketed (worldwide, really), with sugar increasing from 500 to 900 Euros per ton in one fell swoop. 2011 was the worst year.

Every market has different taste. English market likes colored cookies. Netherland fatty cookies. The more north you go in Germany the more popular dark chocolate. Milk chocolate and sweeter taste, more so in the south. The solution? Pick your market and develop products accordingly.

The UE requires ingredients traceability. For example, eggs can be tracked down to the specific chicken.

International labeling is also tricky. Some countries allow a sticker with their language and others require it printed on.

Packaging Innovations and Challenges

Coppenrath’s resealable packaging for cookies in trays struck me as brilliant. You peel back the top, lined with sticky stuff on the edges, then peel it back closed when you’re done. This format is great for snacking, keeping the product fresh, and making it easier to open the package.

Andreas conducts in-store research himself, going to departments unrelated to his products, like toilet paper. He looks away then quickly turns to the product display to see what catches his eye.

After observing and learning that packaging where a person on the package looking directly at you (or the camera) is the most eye catching they developed a counter top display case with single serve cookies. (It’s true! Check store shelves and you’ll find a striking number of people gazing back into your eyes like the Brawny man.) Each pack includes a thought-provoking saying or quote.

They produce efficient, useful packaging. In a year they use one million meters of cookie packaging, all printed at once. Folding cardboard cookie tray gets assembled automatically without glue, making it perfectly recyclable.

Mixed cases in 1/4 pallet sizes allow an in-store standalone display simply by un-shrink wrapping. This is particularly popular in small stores. Six-packs of cookies in plastic carry packs with a handle are popular at warehouse stores. Cookie totes!

My favorite tidbit: Cookies with chocolate can ship packed below the water line in containers as refrigeration.

US Availability

Coppenrath sells through four importers in the U.S. Look them up at Coppenrath Fein Bakerei.

Spice-capies – Ex-Corporate Gone Spice Entrepreneurs

By , 3 December, 2011,

This week Tasting Table quipped “If we had a nickel for every tech-industry veteran turned food artisan, we would have retired in Ibiza by now.” It’s been a while since I’ve put my pen to this blog, but that made me smile. It’s something I think about a lot – the kitchen divide between the career food professionals the tech escapees gone food who have a nest egg or ongoing job to turn to for funding.

Having looked into options for producing spices with a co-packer, it is more complex than  you can imagine with all the variables. The people I’ve met are sourcing, grinding, and packaging themselves which lends itself to more flexibility and creativity in blends as well as the side benefit that you might know the growers.

Visions of spice (sans sugar) ran through my head as I wondered how many tech veterans I know who’ve entered the spice trade:

Origin Spices makes a beautiful, Indian-inspired spice box with various spice mixes, salts, and rubs to keep handy while cooking for a pinch here and there. Chris’ pedigree includes being a recovering strategy consultant and e-commerce expert. He got the spice bug from his world travels and now hand grinds his spices in Oakland.

Juliet Mae trumps the tech-scapee trend. Kathy was a finance industry professional who followed the call to also hand grind spices in small batches for people and chefs. I was lucky enough to visit their old kitchen at a mess hall in the Presidio. Talk about startup!

napa farmhouse 1885 reflects Diane Padoven’s style and values, honed over years with Levi’s. Having consumed her spices and preserves extensively I can say 1885 is just as classic as a pair of 501s.

Smith and Truslow sprang from a designer and ex-corporate exec of undetermined industry.

And Just Cook, which Tasting Table profiled, is an ex-tech sales fellow and his wife. I look forward to meeting them.

My conclusion: Spice artisans come from all walks of life, not just tech. This has been an unscientific, inadequate sample size but it was still fun to write about!

Now: Who are the non-corporate escapee spice companies you love?

Now, who have I missed?

Cottage Food Laws Keep the Home Stoves Burning

By , 8 November, 2011,

In a Maine airport shop, I beeline for the local food souvenirs, my eye roving from a set of Stonewall Products over to several local blueberry jams. More than I expected, in fact. One comes from Out on a Limb, a small home jam making operation that got started thanks to Maine’s cottage food law.

Today about 30 states have so called “cottage food laws,” allowing legal home-based food production on a small scale. The alternative is renting a commercial kitchen, which can cost $10 per hour, more often $25 or higher. Many of the laws passed recently thanks to grassroots efforts by bakers and jam makers eager to generate extra income, build a food community, control their cooking environments, and / or work at home. State guidelines differ, usually prohibiting riskier foods such as refrigerated items.

Of course, where food is concerned, law changes are about as easy as a croque-en-bouche (whose cream filling would make it a no-no). As a petition gathers momentum in California, along with a Facebook group, I took a look at a few food entrepreneurs operating under cottage food laws in a time where local food reigns and career “Plan Bs” have become more like Plan A. (The San Jose Mercury News also wrote about the California petition.)

In fact, about 40 people a day contact Denay Davis, who supports home bakers. She says. “They have lost their job and want to make ends meet by making extra money,” she says. “They don’t want a huge business. If you’re a mom you may want to be able to stay home, make cakes, and sell them when you want to. You’re bringing in money. But you’re also there for your children.”

However in most states, proponents have faced uphill battles. Two key objections tend to pop up:

1) It’s not fair to businesses who invest in commercial facilities.

As with the food truck versus restaurant battles, yes it’s more competition. I was thinking about a baker in Los Angeles who makes beautiful decorated cookies out of her bakery. If suddenly hundreds of home bakers could do the same without the overhead she might possibly need to drum up more commercial business to keep the bakery going.

But it’s also worth looking at the positive economic impact. Davis believes “little food crafters are simply not a threat. It’s about sharing with other people, having control, and building relationships–not making a killing. Etsy sellers exemplify typical cottage food law businesses, although many states only allow selling home-made goods locally, not online. Says Davis, “It’s about scratch, or quality, or specialized products, not making the $29.99 sheet cake that competes with a commercial bakery.”

Retirees can supplement limited incomes. Says Beth-Ann Betz who bakes Middle Eastern pastries, “If this was my only income I’d be earning about 40 percent of what I need. I didn’t have to make any capital investments. It’s a nice retirement job for me.”

The laws also help those needing gluten-free or nut-free environments. Michigan baker Julie Rabinowitz explains: “We’re gluten-free at home. So it’s easier to bake with confidence at home, without having to pay hourly to scrub someone else’s kitchen free of gluten.” The Michigan law caps her Tasty Sans Gluten sales at $15,000. It’s a delicate balance Commercial kitchens can run $1,000 or more per month, or $12,000 a year. “My farmers market customers worry about price increases when I move to a commercial kitchen,” she adds.

Anni Minuzzo, California food consultant and former biscotti company owner likes the idea of a cap. “It’s more fair to businesses who start out paying for a kitchen.” A cap also forces those who have outgrown their home kitchen to expand. While Lori Jordan enjoys balancing family life with her at-home Out on a Limb jam business, she knows that “in the future if we want to grow beyond New England, we will have to move to a bigger place and hire more people.”

I wonder how much new food will crop up that isn’t already being given away, swapped, or sold underground.

2) It’s not safe and clean.

The laws generally require the same FDA Good Manfacturing Practices required by larger food businesses. Many call for ServSafe food safety certification, no pets, and defined cleaning procedures (see Arizona‘s). “New Hampshire has a good model,” says Betz. “I have a dishwasher, clean water that is tested, and ServSafe certification.”

Kelly Masters, owner of Cake Boss software, started her Texas cake business at a kitchen the Health Department had scored highly. But, she says, it “was so unclean that I would sometimes come home crying. I didn’t even want to sell cakes I made there.” Kelly went on to advocate a Texas’ cottage food law (passed Sept. 2011).

Several years ago, Davis contacted all the departments of agriculture. “None had received sickness reports,” she says, adding that with very small batch production in all likelihood only a few people might be affected. Most or all states require a label to the effect of “made in an uninspected home kitchen,” letting the buyer beware.

Says Lori Jordan of her jams, “Maine requires us to have the same inspections, insurance, and file all the same paperwork as if we were a commercial kitchen.”

One retailer who has seen a few questionable home food processors feels the rules should allow for spot inspections, unannounced–resulting in self-regulation. Farmers’ markets could charge to inspect home kitchens. And a new industry for a third-party inspection services could arise, contributing further business license and tax revenue.

Craft the Best Laws, the Crafters May Follow

While cottage laws are a blessing, they tend to have shortfalls, often odd limitations on allowed foods. For example, Wendy Read, who I thought might switch from a commercial kitchen to home, for make her Sunchowder’s Emporia jams says: “If you are selling on the internet and / or can products outside of jam such as vegetables, you can’t take advantage of the new law.”

Worse yet, some counties’ rules may not sync with the state law. While Cyndi Jacobs makes The Best Damn Granola in a commercial kitchen, she observes that despite Massachusetts’ state cottag food law “there are a lot of local boards of health that will not allow home-based baking. More and more they are telling people the products need to be make in licensed facilities.”

Some believe a nationwide law is the answer. Says Davis, “the cottage food initiative is something for the first time that doesn’t benefit just an individual but a family, and a community, and a state.”

Having costed out starting my own occasional food business, I learned first hand how getting started on a small scale at home makes sense while proving the market. Seeing an array of local jams at the airport rather than only brands you can find everywhere makes a place special. More flexible but smart laws to keep the home fires burning are a good thing, these days.

FYI: How to advocte a cottage food law in your state

Cottage food laws: What do you think? Nationwide or local? Fewer or more guidelines? Have you heard of any problems?

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California Cottage Food Law – What If? Interviews

By , 3 October, 2011,

Today more than 30 of the United States allow people to run a small food business from home. The Eat Real Festival in Oakland, California seemed like the perfect spot to gauge interest of such a law among the throngs of food crafters and DIY devotees. Yes, asking people who are making jams, pickles, etc at home is not an unbiased survey. Still, it was exciting to see the live reactions and thoughts. Interestingly, the majority did not know they aren’t allowed to sell food made at home, unless you’re a farm.

The people you’ll see in this video represent a small sub-set of the types of folk who could benefit from a law allowing people to run a small food business making “non-potentially hazardous foods” at home. These people are engaged in the sustainable, “good food” crafting movement. Imagine the stories from others in pockets of the state who don’t have the luxury to attend wonderful festivals and may be on unemployment, welfare, and otherwise struggling to make ends meet. (If you don’t want to imagine, check out the petition and read some of the comments.)

Many are very likely are making and selling food law or no law. This isn’t guesswork: Pretty much everyone I know who sells food does or has at some time made a little something at home.

I’ll be writing more about this in the future, having worked with many food producers across the country who benefit from their states’ cottage food laws in proving their businesses before expanding. Experiencing “the math” of getting started while working on my Nutless Professor foods, before being able to prove a  product’s potential, I’m more convinced than ever why these laws work and how California could safely and sanely implement such a law.

Please subscribe to my blog for updates! Join the Facebook group to discuss or comment here.

Since it may be hard to hear I’ve transcribed the video interviews, with some paraphrasing:

Two Companies in Business: Dandelion Chocolates and Baia Pasta

From their garage lab–which is for testing–Todd Masonis describes the process Dandelion Chocolate went through to get started: “With the cottage food laws in other states, bean to bar chocolate makers are able to start up in their kitchen or garage, with just time and effort and labor. In our case [in California] to get the ability to sell a single bar we had to get our machines NSF certified. There is no such thing as NSF certified chocolate making equipment. We had to hire machinists and consultants that took months to even call us back to check out the machines. We paid thousands of dollars to have our machines inspected.

To legally sell your bean to bar chocolate in California is literally months of effort and at least $10,000. Whereas in other states to sell it’s after the moment you make a good bar.

In our case we would have loved to have a very low limit like $100,000. If you’re below that limit you can sell out of your home or garage. Then when you start getting something to customers you have to build out a kitchen and get certified. That would make more sense to me rather than requiring everyone to be professional on the first day.”

Dario from Baia Pasta speaks from his booth at Eat Real about how a cottage food law would have helped them get started:

“We were a garage pasta operation for six months. We wouldn’t have been able to get where we are if it weren’t for the Underground Market. We’re now able to open our storefront and it’s absolutely required for me in this new economy to allow people to produce and sell under certain circumstances, when the customers are knowledgeable about what they’re buying and they’re OK with it–as we’ve done for six months. Now people love our pasta.

We filter our water and use organic flours. The flours are stored very carefully. We don’t use any eggs. That would probably be the biggest source of problems with pasta. We dry under controlled situations of temperature and humidity.”

Aspiring Home Business Food Entrepreneurs

1: Jam maker – “If California were to allow food preservation at home, a friend and I would take the surplus seconds from her farm and make jams, pickles, and all sorts of things and sell them at her CS and farmers’ markets.”

2: Jam and pickle maker – “I can probably sell james that I make and pickles. Right now I give this away. But I think everyone should be allowed to run some kind of home-based ubsiness that could help them out economically.”

3: Vegan baker – “I enjoy baking vegan goods, which is something that there isn’t a big market for. Not having funds, this law would help me bring in extra income without it being a big production.”

4: Cake decorator – “I decorate cakes. Being able to start a food business at home would seriously make all my dreams come true. I could quite my corporate job, I could have my own business, and do all the things I love to do without having to worry so much.” (Note from Susie: Ah to be in that state of dreaming before getting into the nitty gritty realities of business…) :)

5: Mochi (Japanese baked sweets) maker - “I make mochi caneles at home for friends, and a lot of people have asked me to sell them. If I were able to do that, it would be a great side business to supplement some of the other things I do, while also making something I love.”

How would the ability to run a small food* business at home help you?
*foods that do not require refrigeration, such as baked goods, jams, granola, roasted coffee, and dry nut, herb and tea blends

Starting Something Big in the Middle of Somewhere Small – Mary’s Gone Crackers

By , 13 September, 2011,

Past orchards, the ground littered with wind-blown nuts. Elephant-eye-high corn fields. Sneeze-and-you’re-past towns. Keep going, down winding roads with frustratingly changing speed limits you know have got to be designed for the radars to catch you. You’re not in the city anymore. You’re not even near the main highway anymore. How did you get here? And why?

In my case I was on a mission to meet Mary Waldner of Mary’s Gone Crackers, someone whose factory in Gridley, CA I’d wanted to visit since the first time I munched on her gluten-free black pepper crackers while on a roadtrip (and had no idea where Gridley was). I honestly didn’t actually think I’d one day be sitting in Mary’s rural office–in a cozy pre-fab building–eating uber crunchy Curry Stick Twigs for breakfast.

Oh sure, the world has thousands of rural businesses and food businesses based on freshly harvested produce, logically situated by the farms. Yet, Mary and her husband dale Dale did not grow up in the countryside. Not at all. They moved here from the Bay Area after putting a stake in the ground to pursue this food business, near their organic rice suppliers. They now love the “country” life.

Touring with Mary through the production facility made me think a lot about the use of “hand made” and small batch. I’ve visited factories my whole life, from Wonder Bread, to General Mills, and the good old Hershey walk-through factory in Oakdale, CA that closed. Much as in I Love Lucy’s time, many food types require hand labor, and many are nearly fully automated including ultra cool mechanisms to discard “bad” batches.

When you see a factory like Mary’s first hand, you realize how even if a company seems “big” it really may run like a small bakery. This is partly due to how simple and natural the ingredients used to make Mary’s products are: organic quinoa, rice, and others. The herb crackers have full pieces of rosemary.

From a smaller facility in Chico, the company moved to this larger warehouse where they set up production, taking employees who had started out as helpers and seeing them move up to managing production. It’s nice to see the heart that goes into healthy products and how locating in a semi-rural location can allow for growth at a more affordable price while building up a regional economy.

Smart Lessons for Food Entrepreneurs

  • Stick to your intuition even if your circle says no or has ideas that don’t seem right to you. The company is expanding into different sorts of products (I’m addicted to the ginger cookies) rather than extending the same product lines to the moon.
  • Source the best ingredients. You can see on the packages the company can make every desirable health claim that makes the products ideal for every sort of eater.
  • Plan your production smartly. With such unique products the team knew they would run production themselves rather than setting up with co-packers to manufacture for them.
  • Solve a need. It was just luck that Mary and Dale started at the beginning of the gluten free boom. However their excellent products that appeal to all snackers are what makes them so successful.
  • Keep improving and be nimble. The spirit of invention and continual process improvement is critical to reduce costs and to be able to expand with demand.
  • Clearly define your founders’ roles. Mary is product. Dale is operations. (“If it weren’t for Dale, I’d probably still be making these in my kitchen,” Mary told me with a smile.)

Come to think of it, these principles apply for any entrepreneur!


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