"We’ve become much more significant in the food service arena.
Instead of supplying deli's and restaurants, which we had done for 30 years, we went on to service companies like Sysco and U.S. Foods and now Gordon Foods.
I felt that it was advantageous to provide their sales staff and their customer base with a site that would give them some information. It was more of an institutional site than a retail site.
I wanted to make it easier for them to sell my product."
"When I make a contact, I can send them to the website so they can get a good overall view.
Occasionally we get people, retailers or individuals, who just happen to come to the site.
We get a few orders from them, although there’s no profit there because the site isn’t designed for that."
Despite the giant technological strides made by Alexander & Hornung, keeping a small meat company in business is still a huge battle. Unfortunately, it’s a battle Bernie fears will, for many companies like his, be lost.
Recently, the meat industry implemented a program called HACCP (Hazard Analysis and Critical Control Points), which was created to take the FDA inspector’s job and put it in the hands of individual plants.
Although many in the industry heralded this decision, the USDA hasn’t completely relinquished control over the inspection process, meaning the industry must comply not only with HACCP, but with USDA guidelines as well.
It is incredibly expensive for companies to implement measures to fulfill two sets of standards.
There’s also the potential to be shut out completely by larger companies and powerful conglomerates—a reality family business owners in every industry know all too well.
"I see our industry disappearing. We’re on the fence in terms of the size of companies that survive, and we may be on the wrong side of that fence.
Some of them aren’t going to make it with the demands put on them by the Department of Agriculture or the consumer."
"We’re seeing more and more consolidation. Even my company is buying other businesses. And the big guys are really doing it. That’s the natural erosion of things.
We need to be careful to find distributors who are close to our size so we don’t get shut out."
"We’re not going to be a major factor to the big guys. But we are, and need to remain, important to the small guys. But it is tempting to go after the big ones, because their numbers are so good."
In order to keep the business growing, and to preserve the quality products and long-standing history of other small businesses, Alexander & Hornung have extended themselves to food brokering and the acquisition of other companies.
These businesses had long histories (one of them operating for over 70 years), and were often clients of Alexander & Hornung.
Among these are Brookside Foods (Cleveland), known for their quality luncheon meats, and Bosell Foods, makers of an extensive line of fresh salads.
The last 5 paragraphs clearly highlight the necessity for small companies to pay attention to acquiring and maintaining market savvy.
You have to look outside of yourself and your book of business. You’re operating in a very dynamic environment and it is crucial that you play for real.
Don’t underestimate yourself. Respect what you can accomplish and put your full efforts into it.
