$3 - Greenville SC Economic Development Consulting€¦ · a grocery line with canned soups, beans, ... shredded vegetables and sweet corn and a layer of black beans ... the company’s

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GREENVILLE’S ECONOMIC BIG PICTURE

BESTUpstate Companies for Working Moms

Mark Rudolph, CFOAmy’s Kitchen

www.greenvillebusinessmag.com

June 2011

Amy’s Kitchen:Greenville’s Recipe for Success

Mark Rudolph, CFO

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38 GREENVILLEBUSINESSMAG.COM | JUNE 2011

The air was electric at the press conference on May 11 when Amy’s Kitchen announced its plans to locate its newest manufacturing facility in Greenville. The culmination of tireless efforts on behalf of the company, the Greenville Area Development Corporation (GADC), the South Carolina Department of Commerce and countless other state and local organizations has promised a significant boost to the Upstate economy and a host of new jobs. Such an announcement

means more for Greenville than the initial capital investment and prospective number of jobs announced. It means a trickle-down effect that will impact every facet of our community. More jobs will inevitably lead to increased sales and a greater amount of money circulating throughout the local economy. It also means Greenville gains a new community partner who adds value to the area not only on an economic level but also by becoming a significant contributor to the Upstate quality of life and the ideals established to encourage continued positive growth in our area.

WHO IS AMY’S KITCHEN?

It all started with an idea in 1987, a home kitchen and a shoestring budget. That year, Rachel and Andy Berliner welcomed a baby daughter, Amy, and created a business dedicated to provid-ing convenient and tasty natural organic meals for everyday people who appreci-ate healthful, delicious food but don’t always have the time to prepare meals from scratch. At that time, there was a limited number of frozen meals available for vegetarians or even people desiring to pursue a more healthful lifestyle.

“It occurred to us there must be a lot of people like us who could benefit from great tasting food that was convenient when life was busy,” says Andy Berliner. “It wasn’t long after introducing our first product (Amy’s Vegetarian Pot Pie) that we knew we were on to something. It was the response from consumers that fed our passion to offer more products, something we’ve been enjoying for the past 24 years.”

Upon the success of the pot pie, Amy’s introduced other meal options, having since created more than 128 frozen meals, including pizzas, pocket sandwiches, entrees and more. The

company also branched out to include a grocery line with canned soups, beans, chili, jarred pasta sauces and salsas. The total product offering currently exceeds 180 items. Now Amy’s is a household name, recognized nationally as a leading maker of natural and organic convenience foods. Amy’s products are currently available nationwide in natural food stores, supermarkets, and select warehouse clubs as well as internationally.

Amy’s Kitchen Chief Financial Officer Mark Rudolph says the company has gained notoriety because of its

commitment to quality, as well as its ability to provide tasty, nutritious food to please a variety of palates. “Amy’s has gone beyond catering to people with special dietary needs and now sells effectively to mainstream America and consumers who are looking for quick and healthy alternatives.” More and more Americans believe what they eat effects their health and as such, Amy’s has become the perfect choice for them because it’s great tasting and good for you. For many retailers, Amy’s is now among the top five frozen entree brands sold.

BY BRANDY WOODS SNOW

Amy’s Kitchen:Greenville’s Recipe for Success

Photo provided by Amy’s Kitchen

JUNE 2011 | GREENVILLE BUSINESS MAGAZINE 39

WHY GREENVILLE?Several years ago, Amy’s management

team realized that more than half of sales were occurring on the east coast. With west coast facilities established in California and Oregon, it became obvious that an expansion in the East was necessary. Amy’s initiated “Project Verde” to search for a facility in an effort to expand production capacity and more efficiently reach customers and markets on the east coast. When the economy bottomed out, Project Verde was shelved but then reintroduced this past year when sales figures showed positive movement. Amy’s began looking at potential sites in the upper Midwest and the Virginia-North Carolina-South Carolina region with established criteria. Says Rudolph, “We were looking for an existing facility, previously employed in the food industry, located in an area convenient to the source of our raw materials and to the final destination of the finished products. It was also critical that we find a location with a business friendly environment and a population density to support hires as well as family-friendly community with a superior quality of life.”

Berliner says, “We had been looking for the right opportunity for a while when we visited Greenville to tour a recently closed frozen food plant. We really fell in love with the area and found a plant we could configure to fit our operation. We looked at all the usual cost factors and compared various areas in the eastern U.S., but in the end, we wanted to be in an

area where our family business can thrive. We’ve found that in Greenville.”

The former Sara Lee facility had primarily processed flour and water during its production days, a nice complement to Amy’s commitment to vegetarianism, plus the existing infra-structure, including silos for flour and oil, cooling capabilities and freezer capacity, fits Amy’s production needs perfectly. Rudolph notes that the economic incen-tive package developed through state and local officials and with help of the GADC sealed the deal.

“Governor Nikki Haley helped immensely in navigating Amy’s through some local infrastructure issues with the site, as well as formulating state level economic incentives. I had several phone conversations with the Governor as issues came up and solutions were proposed and acted upon very quickly. The Governor also gave me confidence that South Carolina would be a great partner and supporter,” says Berliner.

“The GADC was able to assist Amy’s in locating and securing the facility, negotiating economic incentive packages and facilitating a connection with the potential workforce,” says Tavia Gaddy, Project Manager of the GADC. “Amy’s has presented Greenville with an outstanding opportunity to bring jobs to every demographic in our area. They have a ‘presence’ as industry leaders that will continue to spur on further Upstate development, and they are a family business that earnestly wants

to be a proactive, positive part of our community.”

Amy’s team was also impressed with the easy access to a reliable workforce pool as well as the emphasis on family and the excellent quality of life found in Green-ville. “We want to successfully impart our culture into the new facility and work-force and feel that Greenville is closely aligned with our family-oriented business concept and will enable this transition easily and seamlessly,” says Rudolph.

“The culture of Amy’s Kitchen has everything to do with our connection to our employees. Rachel and I have stayed very involved not only in the business but also in taking the time to know the people who make Amy’s Kitchen a daily success,” says Berliner. “We value the ability to communicate our ideas directly to the staff. It is essential every employee know our mission.”

A SIGNIFICANTECONOMIC IMPACT

Amy’s Kitchen announced to the press that it would invest $63 million in the development of the new facility and generate more than 700 jobs over the course of six years. And the future looks bright for Amy’s - the market for organic food is among the fastest growing grocery categories with sales increasing at a rate of more than 10 percent annually.

According to Rudolph, Amy’s is currently meeting with construction and engineering professionals in order to assess and begin implementing required

Photos provided by Amy’s Kitchen

40 GREENVILLEBUSINESSMAG.COM | JUNE 2011

“Amy’s has gone beyond catering

to people withspecial dietary

needs and nowsells effectivelyto mainstream

America and consumers who

are looking for quick and healthy

alternatives.”

AMY’S DEBUTS NEW LINEOF LIGHT & LEAN MEALSEarlier this year, Amy’s debuted Light & Lean Meals, a new line of frozen convenience meals containing less than 300 calories, 5 grams of fat, and 590 mg of sodium. Amy’s Light & Lean Meals were created in response to consumer requests for meals that would fit their diet plans. As with all Amy’s products, Light & Lean Meals are organic, vegetarian, and are made without the use of trans fats or GMOs.

Amy’s Light & LeanPasta & VeggiesRotini is one of Amy’s chef ’s favorite pastas. Its twisty shape is ideal for holding the light pasta sauce and tender shallots, organic asparagus spears and broccoli florets. The sauce is made from vine-ripened organic tomatoes seasoned with sweet basil and other traditional Italian herbs, with a sprinkling of Parmesan cheese on top. Just 210 calories, 5 grams fat, and 470 mg sodium.

Amy’s Light & LeanSpinach LasagnaThis spinach lasagna is made with ricotta, Parmesan and mozzarella cheeses and organic spinach layered between organic pasta, then covered with Amy’s special tomato pasta sauce.Only 250 calories, 5 grams fat, and 540 mg sodium.

Amy’s Light & LeanSoft Taco FiestaAmy’s has placed a soft corn tortilla between a layer of brown rice, shredded vegetables and sweet corn and a layer of black beans and cheese. A blend of tomatillo and ranchero sauces makes this a flavor-ful, but not too spicy meal.Just 220 calories, 4.5 grams fat, and 560 mg sodium. Gluten free.

Amy’s Light & LeanBlack Bean & Cheese EnchiladaA mixture of organic black beans, tofu, brown rice, vegetables and cheese is tucked into a tortilla that’s folded by hand and covered with a flavorful blend of tomatillo and ranchero sauces. Organic brown rice with carrots and sweet corn complete the meal.Contains 240 calories, 4.5 grams fat, and 480 mg sodium. Gluten free.

JUNE 2011 | GREENVILLE BUSINESS MAGAZINE 41

facility upgrades, which will take place over the next six to seven months. By the end of this summer, Amy’s will hire a few key employees including a high-ranking human resources contact who will help facilitate the interviewing and hiring process. In fall, Rudolph says Amy’s will begin ramping up the hiring of personnel and initiating training for all new hires. Production is expected to begin around the first of 2012. The facility will start off producing burritos and frozen entrees with plans to phase in a pizza line and a soup canning line over time.

Of the 700 anticipated jobs, Rudolph says the company will be looking for a variety of positions, from management to production to warehousing. “Amy’s uses very little automation in our production process, as most everything is handmade by our employees,” says Rudolph. “We’ll

have workers lined up, creating burritos by hand, so it really fosters a social, family-oriented atmosphere.”

Amy’s will offer competitive wages, profit-sharing opportunities and a 401(k) match retirement program.

A POSITIVECOMMUNITY PARTNER

From the earliest beginnings as a company, Amy’s Kitchen has always strived to utilize local ingredients. For instance, in west coast operations, the vast majority of the company’s organic vegetables are grown within a 200-mile radius of the plant sites. In a specific example, the company leases 1,200 acres in California and hires a farmer who plants and harvests tomatoes specifically cultivated to meet the established flavor profile. Rudolph says the company’s

Rudolph says the company’s commitment to local grown produce will be a win-win for both Amy’s and area farmers looking to expand their business.

Rachel, Amy and Andy Berliner. Photo provided by Amy’s Kitchen

42 GREENVILLEBUSINESSMAG.COM | JUNE 2011

commitment to local grown produce will be a win-win for both Amy’s and area farmers looking to expand their business. “We’ve already commenced discussions with the Commissioner for Agriculture in South Carolina,” says Rudolph. “It is of utmost importance to our product quality that produce be picked ripe and grown organically. It does not fit our sensory profile to bring in produce from afar, where it has been picked green and made to ripen in transit.”

“Local sourcing for organic vegetables will be an important part of our opera-tions in South Carolina and the southeast,” says Berliner. “We have had a good input and cooperation from our agricultural friends at Clemson and North Carolina State Universities. One of the key factors in bringing us here was our belief the majority of our vegetables and other food

ingredients could be grown in this area. We also plan to help small farmers in the area transition to organic growing, which we believe will make the family farm more sustainable and profitable.”

But for Amy’s, being a good commu-nity partner means more than supporting other local business. It also means giving back to the people and the very families that comprise their manufacturing homes.

“Amy’s is the largest donor to the local food banks in the communities where we have manufacturing plants. We look forward to developing the same relationships with food pantries in South Carolina,” says Berliner.

Last year, the company gave over $1.5 million in food donations to local food banks as well as to communities that have been hit by hardships such as hurricanes or earthquakes. In 2006, they sent over

$800,000 worth of food to New Orleans and Mississippi after Hurricane Katrina, and, in 2010, they partnered with ORE World to send supplies to Haiti after the earthquake devastated that region. Currently, Amy’s is arranging a food donation to aid the people in tornado-ravaged areas of Georgia and Tennessee.

Local food banks could be profiting from the company’s generosity as early as this fall when employee training is set to commence. “All of the food made during our training processes will be donated to food banks in the surround-ing communities. Our commitment to assisting local charity organizations is really a natural continuation of the company’s culture and our dedication to fostering a family atmosphere.” GBM

JUNE 2011 | GREENVILLE BUSINESS MAGAZINE 43