Select Food Products: ‘Client-centric’
Featured Content
By Brian Salgado   
Thursday, 21 February 2008
Image
Select Food Products manufactures barbecue sauces, marinades and condiments.
Premier Business Partners:

Richards Packaging
Norampac Inc.
Arla Foods
McCormick Canada

As a food manufacturer for nearly seven decades, Ontario-based Select Food Products (SFP) has never set out to be a trendsetter in the food industry. Instead, President Paul Fredricks says his family owned business creates products that cater to tastes for which demand already exists.

“Being client-centric, we’re continually developing new flavor profiles and products to address the market demand,” Fredricks says.

SFP was founded in 1941 by Fredricks’ grandfather, Joseph, and a business partner, Victor Kolm, after they emigrated from Austria and Czechoslovakia, respectively. Paul Fredricks’ father, Martin, took the reigns before Paul joined the company in the late 1970s. Paul moved up to president in 1997 and gained majority ownership of SFP in 2004.

Today, the company manufactures products for the retail, foodservice and manufacturing markets of the food industry, with the largest category being barbecue sauces, but the company also produces mayonnaises, “spoonable” and “pourable” dressings, marinades and condiments. Most recently, SFP has launched a line of certified organic products.

SFP provides retailers and foodservice distributors with private-label products SFP that can be found in all national and regional chains in Canada.

The Select Brand is recognized by the foodservice sector as a respected and reliable source for excellent, quality products at competitive prices, Fredericks says.

Industrial customers, specifically meat processors, use SFP marinades and sauces in large-scale manufacturing, offering precooked and sauced wings, ribs and burgers for retail and foodservice applications.

With 100,000 square feet of manufacturing space in North York, Ontario, and 130 employees, SFP uses its mid-level size to cater to every customer’s needs.

“Because of our size, we’re small enough to rapidly respond to changes the market demands for new products or packaging,” Fredericks says. “We’re also big enough to command competitive pricing from suppliers.”

Adapting to Trends
SFP addresses market needs that range from new flavors to the latest fad diet. “Whether it be the light products, low-carb products, low-fat products, trans fat-free products, or the most recent functional products loaded with antioxidants, consumers want clean items,” it says.

Fredericks defines “clean items” as organic foods without additives and preservatives and free from artificial flavors and colors.

Historically, trends like this have rarely occurred across sectors; Fredricks says consumers tend to eat healthy at home but put diets off when eating out.

“That’s not the case today,” he adds. “Consumers are more concerned about the nutritional value of all food eaten, creating a demand for these healthier products in the foodservice channel as well as the traditional retail.”

Industry Consolidation
Fredricks says Canada is facing
a period of consolidation among retail customers. This means companies such as SFP are dealing with strict pricing parameters.

“In spite of ingredient costs going up, customers are reluctant to address price increases,” Fredericks says. “When we do address price increases, we go with a significant amount of data related to commodity increases in hopes it will get some understanding on the part of the retailer. We really have to drill down and be very detailed and transparent in the cost structure.”

Price constraints have forced SFP to become more efficient in its operations. This includes evaluating its facility, improving productivity and using lean manufacturing techniques to drive down costs wherever possible. As ingredient costs change, what was once a low-cost ingredient may now be a high-cost ingredient, Fredricks says. “Product reformulation to maintain cost is an option that is difficult to succeed with because in the end, quality is still the top factor for clients,” he adds. “It is easy to say quality doesn’t matter, but it does, in spite of today’s current price market.”

 
< Previous Story   Next Story >