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Local, Specialty Food Products Help Boost State’s Economy BY EMILY STEVENSON T he best way to be successful in the specialty food industry, it appears, is to not plan to go into the industry at all.While South Carolina boasts a large – and growing – number of local specialty food producers, almost all say their passion for food, not business, is what has made them successful. “I never really thought about putting it to market until my brother- in-law said, ‘You need to sell this’ ” says Valarie “Valine” Davis Lee. Lee is the owner of Valine’s Famous, a line of sauces and dips. She has been making her cocktail sauce, her flagship product, since she was a young girl but only a chance remark caused her to consider bringing it to market. Tracy Blanchard, president of Big T Coastal Provisions seafood dips, has a similar story. She and her husband, Tony, made his mother’s famous crab dip for parties and gifts. For 10 years everyone told the Blanchards they needed to do something more with it. They finally listened, and this month their dips will be available in 1,000 Wal-Mart stores across the southeast. Blanchard laughs, “It’s not ever something I thought I’d be doing, but it’s a lot of fun.” DOLLARS AND SENSE Specialty food products are experi- encing a steep growth curve. While food sales in general have only experienced a three-percent growth in the past two years, the specialty foods industry has grown by about 22 percent during that same time period, according to data collected by the Specialty Food Association. 36 | COLUMBIABUSINESSMONTHLY.COM MARCH 2016 Millenials especially are drawn to locally sourced and created food products.

Transcript of 03MAR_2016_CBM_36_41

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Local, Specialty Food Products Help Boost State’s EconomyBY EMILY STEVENSON

The best way to be successful in the specialty food industry, it appears, is to not plan to go into the industry at all. While South Carolina boasts

a large – and growing – number of local specialty food producers, almost all say their passion for food, not business, is what has made them successful.

“I never really thought about putting it to market until my brother-in-law said, ‘You need to sell this’ ” says Valarie “Valine” Davis Lee.

Lee is the owner of Valine’s Famous, a line of sauces and dips. She has been making her cocktail sauce, her flagship product, since she was a young girl but only a chance remark caused her to consider bringing it to market.

Tracy Blanchard, president of Big T Coastal Provisions seafood dips, has a similar story. She and her husband, Tony,

made his mother’s famous crab dip for parties and gifts. For 10 years everyone told the Blanchards they needed to do something more with it. They finally listened, and this month their dips will be available in 1,000 Wal-Mart stores across the southeast.

Blanchard laughs, “It’s not ever something I thought I’d be doing, but it’s a lot of fun.” DOLLARS AND SENSE

Specialty food products are experi-encing a steep growth curve. While food sales in general have only experienced a three-percent growth in the past two years, the specialty foods industry has grown by about 22 percent during that same time period, according to data collected by the Specialty Food Association.

36 | COLUMBIABUSINESSMONTHLY.COM MARCH 2016

Millenials especially are drawn to locally sourced and created food products.

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Food

MARCH 2016 GREATER COLUMBIA BUSINESS MONTHLY | 37

Passion For

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Ron Tanner, vice president of philanthropy, government, and industry relations for the SFA, attributes this steep growth curve to an increased awareness and importance of the prov-enance and ingredients of foods.

“As consumers are looking more for products that they can identify the place and person it’s coming from, the demand is increasing and fueling growth throughout,” says Tanner.

As with many purchasing trends, this one points back to the Millennials.

“The Millennial generation is prob-ably now the largest consumer group out there,” says Blanchard. “I think that they really are looking for a connection to what they eat and where it comes from.”

Thankfully, South Carolinians don’t have much of a shortage of options, in both crops and prepared food products. Agriculture and related industries are the number one industry in South Carolina – with a $41.7 billion economic impact annually.

“Anything we can do to increase people’s engagement in the agribusiness sector obviously increases our overall

scag_8638_FOTM_Print_ColaBizMonthly_00.indd 1 2/16/16 2:43 PM

Big T Coastal Provisions’ crab dip is available in Wal-Mart stores this month.

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impact on the state’s economy,” says Stephanie Sox, communications director for the South Carolina Department of Agriculture.

Sox says the state is unique in that it has access to seasonal fresh fruits and vegetables year-round, in addition to crops such as cotton and soybeans, as well as livestock. Last year was a chal-lenging one for these farmers due to the October flooding, and many took severe economic hits.

“It’s more important than ever that everyone continue to support our number one industry by seeking local products,” says Sox.

SLOW AND STEADY

Local products aren’t limited to tomatoes and corn, or even sauces and dips. There’s a fair amount of wine and spirits being produced around the state, and another beverage as well: coffee.

While the coffee beans are obviously not grown in the state, South Carolina is home to several roasters, including King Bean Coffee Roasters based in Charleston. Owner and founder Kurt Weinberger spent time near Seattle with the Navy in the early 1990s and saw the coffee scene explode there. He knew there was nothing like that in South Carolina, so he brought his vision back to Hilton Head Island, and eventu-ally moved up the coast to the Low Country.

He says Charleston’s growth as a global community has allowed their business to thrive.

“It’s becoming more of a global community, and what a true south-erner may enjoy in a cup of coffee is completely different than what someone from abroad would enjoy,” Weinberger says. “You’re able to offer more sophis-ticated coffees with nuances that people who have a background culture [in

“Do it out of passion for your product and being able to share what you have with other people,” Tanner says.

Kurt Weinberger wanted to recreate Seattle’s booming scene in S.C.

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“Valine” has been making her famous cocktail sauce since she was a young girl.

King Bean coffee is roasted daily on a 60-kilogram Petrocini roaster. The Blanchards’ crab dip features 100 percent real crab meat.

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Where To Buy:

Valine’s Famouswww.valinesfamous.com

• Mast General Store• non(e)such

• South Carolina State Museum• Wingard’s Nursery

Big T Coastal Provisions

www.bigtcoastalprovisions.com• Publix• Ingles

• Harris Teeter• Lowe’s Foods

• Wal-Mart

King Bean Coffee Roasters

www.kingbean.com• Whole Foods

coffee] can really appreciate.” Weinberger and his wife Katie admit

that while business is booming now, it wasn’t always this easy. In the beginning, Kurt went door-to-door to restaurants to solicit coffee sales. At the time, he was a young independent seller up against institutional coffee roasters. His persis-tence eventually paid off.

“It’s not easy starting out,” says Katie. “Start slowly, take your time, do your research, and know your customer.”

Lee offers similar advice to anyone hoping to bring their special recipe to market.

“You have to be committed and have a passion for it, because you’ve got to be out there doing your stuff on the weekends, visiting your retailers, and being in multiple places at various times,” Lee says. “I try to spread it out to where I’m not burned out.”

Burnout is a common danger for those running a small business selling a food product, especially since many people are doing it as a side job, not

their main source of income. Tanner encourages any potential food sellers to take it slow and keep expectations modest.

“Do it out of passion for your product and being able to share what you have with other people,” Tanner says. “Don’t do it because you think you’re going to get rich, because it doesn’t happen that way in this business.” SHOW AND TELL

Networking is crucial in the food industry. The Specialty Food Association puts on two shows a year, one in New York and one in San Francisco. Lee credits these shows for helping connect her with potential buyers, as well as collateral workers such as co-packers and designers.

“You’re on a journey with yourself and you can get stuck in a bubble,” Lee explains. “You just need to call somebody. They all started in the same spot, regardless of whether they’re a

multi-million dollar company or just a few years older than you.”

She also recommends joining the South Carolina Specialty Food Associa-tion, as well as any business development organizations that are available. These are typically free or inexpensive resources, but their connections can be invaluable.

The Specialty Foods Association’s New York Fancy Foods Show last summer was what led the Blanchards to Wal-Mart. Tracy noticed a man with a Wal-Mart name tag, introduced herself, and told her that he needed her crab dip in his stores. After exchanging contact information, he connected her with the senior seafood buyer, and the Blanchards presented their product. And Wal-Mart bought it.

“They have a $250 billion commit-ment to buy American-made products,” says Tracy. “More importantly, they looked at their products and thought we would be a good fit.”

While delicious by itself, Valine’s Famous cocktail sauce can be mixed in meatloaf, crab cakes and Bloody Marys.