NewStar sheds commodities, plays to strengths in products, service and food safety
NewStar sheds commodities, plays to strengths in products, service and food safety
SALINAS, CA -- As of June 15, NewStar Fresh Foods, based here, will focus its attention and energies fully on its green onions, asparagus and spinach value-added line.
The company no longer will be involved with Iceberg lettuce, Romaine, leaf lettuces and celery. About a year ago, NewStar got out of broccoli and cauliflower. Its transition out of its commodities business is a positive and proactive step, said John Killeen, vice president of sales and marketing for NewStar.
"We believe what's going to set us apart is our complete focus on core items and improved quality and service on top of our already-outstanding food- safety program," Mr. Killeen said. "We're going to focus all of our resources on becoming the best in those areas."
Mr. Killeen said that NewStar will "continue to look at new business and opportunities for the future" and that the company has "a direction and a focus on growth."
The company's food-safety program is under the direction of Bob Whitaker, who holds a doctorate in food safety and is known throughout the industry for his expertise in the subject.
Dr. Whitaker's presence makes NewStar one of the few processors that employs someone with a doctorate in food safety, Mr. Killeen said.
The transition out of the commodity business also fits because NewStar's facility "was built for light-leaf product," Mr. Killeen said.
NewStar's spinach value-added line includes spinach, spring mix, cilantro, parsley and kale. In addition to being an industry leader in green onions, the company has done well with asparagus, Mr. Killeen said.
NewStar believed strongly "in our ability to grow and sell our commodities" but was never going to be the low-cost provider because of its elaborate food-safety program, Mr. Killeen said.
"We'll take our resources and put them toward core items in which we know we lead the industry," Mr. Killeen said.
The company first considered getting out of commodities back in 2005 and continued giving it a look in 2006. When the E. coli outbreak associated with spinach hit last September, it "put an exclamation point on what we were doing," he said.
NewStar's transition has brought a "very favorable response from our customers," Mr. Killeen said, adding that some customers were upset because they were pleased with NewStar's commodity program, but others reacted favorably, saying that they don't need one-stop shopping but rather need the best quality.
"Customers want the best-available quality at competitive prices, so we're excited about the response," Mr. Killeen said.
NewStar will "pick up efficiencies" throughout its operation, including in its cooler, Mr. Killeen said.
The changes will not call for a reduction in personnel at this time, he said.
The company no longer will be involved with Iceberg lettuce, Romaine, leaf lettuces and celery. About a year ago, NewStar got out of broccoli and cauliflower. Its transition out of its commodities business is a positive and proactive step, said John Killeen, vice president of sales and marketing for NewStar.
"We believe what's going to set us apart is our complete focus on core items and improved quality and service on top of our already-outstanding food- safety program," Mr. Killeen said. "We're going to focus all of our resources on becoming the best in those areas."
Mr. Killeen said that NewStar will "continue to look at new business and opportunities for the future" and that the company has "a direction and a focus on growth."
The company's food-safety program is under the direction of Bob Whitaker, who holds a doctorate in food safety and is known throughout the industry for his expertise in the subject.
Dr. Whitaker's presence makes NewStar one of the few processors that employs someone with a doctorate in food safety, Mr. Killeen said.
The transition out of the commodity business also fits because NewStar's facility "was built for light-leaf product," Mr. Killeen said.
NewStar's spinach value-added line includes spinach, spring mix, cilantro, parsley and kale. In addition to being an industry leader in green onions, the company has done well with asparagus, Mr. Killeen said.
NewStar believed strongly "in our ability to grow and sell our commodities" but was never going to be the low-cost provider because of its elaborate food-safety program, Mr. Killeen said.
"We'll take our resources and put them toward core items in which we know we lead the industry," Mr. Killeen said.
The company first considered getting out of commodities back in 2005 and continued giving it a look in 2006. When the E. coli outbreak associated with spinach hit last September, it "put an exclamation point on what we were doing," he said.
NewStar's transition has brought a "very favorable response from our customers," Mr. Killeen said, adding that some customers were upset because they were pleased with NewStar's commodity program, but others reacted favorably, saying that they don't need one-stop shopping but rather need the best quality.
"Customers want the best-available quality at competitive prices, so we're excited about the response," Mr. Killeen said.
NewStar will "pick up efficiencies" throughout its operation, including in its cooler, Mr. Killeen said.
The changes will not call for a reduction in personnel at this time, he said.
