D’Arrigo Bros. sticks with items it knows and does best
D’Arrigo Bros. sticks with items it knows and does best
Matthew D’Arrigo, vice president of D’Arrigo Bros. Co. of New York Inc., located at the Hunts Point Terminal Produce Cooperative Market, told The Produce News that the company calls itself a full line house of fresh fruits and vegetables, which makes it difficult to find new things to add to its already extensive list of products.
“We like to stick with items that we know and do best with,” said Mr. D’Arrigo. “We’re not interested in specialty or high maintenance items.”
What the company knows very well is a full line of eastern, western and Texas vegetables and fruits. It also handles Asian and Hispanic items, berries and tomatoes, melons, potatoes, onions, a wide range of imports and much more.
Mr. D’Arrigo is joined by his brothers, Paul, president of the company, and Michael, who also serves as a vice president. They are the third generation family members to operate the business, which was founded by their grandfather who emigrated from Sicily in the early 1900s.
Mr. D’Arrigo said that the cultural changes that have taken place over the years have impacted companies like his, and that those changes are now deeply rooted.
“Spanish might be the first language on the platform at some times of the day or night,” he said. “Or it might be one-third Spanish, one-third English and one-third Korean. Just walk around New York City and you’ll see why it’s called a melting pot. But the influences on Asian and Hispanic foods that are now demanded are the strongest. It’s here to stay and it’s a growing part of our product line and our customer base.”
One continuing development among many houses on Hunts Point today is the increase in delivery services being offered. Mr. D’Arrigo explained that 30 years ago about 90 percent of product sold on the market was picked up. Today that figure is somewhere around 60 to 70 percent.
“The smaller firms tend not to deliver, but the larger firms do, and they are increasing their fleets or their outside trucking banks,” he said. “If the customer has a dock you can deliver a pallet. But if you are hand-stacking to a restaurant below street level, you’re probably not involved in that.”
Delivery service, he pointed out, has been one of the few fundamental logistical changes in this market over time. It is a “reactionary market in that it resists change,” he said. “Here, customers shop, pick up product and take it to their stores or restaurants, or they have it delivered. That’s pretty much how this market has functioned in its entire history.”
He said it used to be one big free-for-all on the terminal platform five nights a week, but as companies grew and became more sophisticated, they also began realizing that as their customers grew they would lose them unless they did deliver or drop ship to them.
Produce companies in general hate inefficiencies, Mr. D’Arrigo said, and businesses in general hate inefficiencies unless they just have it way too good.
“We drive out inefficiencies,” said Mr. D’Arrigo. “That’s waste and waste costs money. One of the primary principles of good business is to drive out costs because that’s how you make money and save on prices for customers, and that’s how you keep or gain their business.”
The efficiencies also extend to the cooperation of companies on Hunts Point. They work together to consolidate loads and in other ways to help increase sustainability and efficiencies.
“This is going on in the growing end of the industry as well,” said Mr. D’Arrigo. “They too consolidate, drop ship and do anything else possible help each other out if it means saving money.”
D’Arrigo Bros. has two new staff members on board. Steve Granquist joined the company in the past year to work in corporate sales. He was previously with C&S Wholesale Grocers, and so was on the opposite equation of the industry.
“Steve was a chain buyer for many years, and then he managed buyers for some time,” said Mr. D’Arrigo. “We have hired him to now sell those same people.”
Louis Venuti, also recently joined the company in its sales department working primarily on western potatoes and onions.
“Louis is the son of Robert and Ann Venuti who owned Venco here in the market,” said Mr. D’Arrigo. “The company closed some time ago.”
“We are very happy to have both of them on our team,” he added.