Sundia signs packaging pact
SAN FRANCISCO
June 19, 2006 11:15am
- Sees it helping growers cut costs
- One part of a changing produce world
Watermelon product company Sundia Corp. says it has signed a deal with Weyerhaeuser Co. (NYSE: WY) to provide its grower partners with lower-cost packaging materials such as bins and boxes.
Brad Oberwager, CEO and founder of Sundia, says it’s part of the equation where the bottom line is to help growers turn a profit with their melons.
Mr. Oberwager says another major component is the creation of brands for produce and the development of value-added aspects to what is otherwise a commodity industry with inherently low margins.
“Value-added produce is really the future of the produce industry,” he says. “Things like ‘baby’ carrots, cut fruit, bagged lettuce, that’s what’s driving a lot of the profitability of the grocery stores. And if you can drive their profitability, you will be profitable.”
(Listen to Mr. Oberwager’s thoughts in our CVBT interview by clicking on the link below.)
The Weyerhaeuser agreement also gives Sundia grower partners guaranteed pricing on bulk packaging products as well as a reduction in year-end inventories of these items, Sundia says.
“Bins and other paper products are a big cost for growers; this agreement gives them stability in what previously has been a highly volatile market,” Mr. Oberwager says.
Sundia says it has 11 partner growers, including four of the largest growers -- Borders Melon Co., Jackson's Farming Co., Timco Distributors, and Leger & Sons. Combined, over 30 percent of the nation's watermelon supply now carries the Sundia trademark, the company says.
 To listen to the interview, please click here |
