US Farms enters fresh tomato market
US Farms enters fresh tomato market
US Farms Inc., a diversified nursery and farming business based in San Diego, CA, has further diversified with its entrance into the fresh tomato market.
US Farms grows and markets various horticultural products through several subsidies. Previously, the company's primary fresh produce commodities were aloe vera and asparagus.
"The entry into the tomato market is "a big move for us," said Yan Skwara, the company's president, who has been with US Farms since its founding in 1997. "It is a big part of our overall business strategy. Yesterday [April 3], we made the announcement that we were entering the tomato market, and today we announced Sam Nucci coming on board" as vice president of sales and marketing for a newly formed subsidiary to be known as Sammy's Produce Inc.
Mr. Nucci was previously president of Vista, CA-based Samlis Inc., a tomato distributor doing business as Sammy's Produce.
Over the course of his 28-year career, Mr. Nucci "has sold over $250 million worth of tomatoes," said Mr. Skwara. "He knows the market very well, and we are very excited about the opportunity to work with him."
The assimilation of the Sammy's Produce operation into US Farms is "a very similar scenario" to the way US Farms entered the aloe vera business, he explained. "Basically what you have here" in the case of the aloe vera "is an informal merger of a private farming and nursery operation that merged its business and assets into a public shell.... It wasn't an outright buyout of a company. It was an asset purchase."
For the first eight years of its existence, US Farms was in a very different line of business -- sports marketing -- according to Mr. Skwara. But "because the other business really wasn't moving," the board of directors "felt that a change in direction would be appropriate, in the interest of the shareholders." Therefore, the board "made the decision to pursue a farming and nursery operation that was available and bring it into the fold."
At that time, the company's name was changed from International Sports & Media Group Inc. to its present name, according to Standard & Poor's. In May 2006, US Farms purchased "600,000 full-grown aloe vera plants in the Imperial Valley along with specific farming and nursery equipment" from Phirxus Holdings Inc., dba American Aloe Nurseries, and brought Daren Pines from Phirxus onto the US Farms board of directors, Mr. Skwara said. Mr. Pines is "one of the leading experts in growing aloe vera in the United States," he said.
The aloe vera operation has expanded to about 400,000 full-grown plants in the ground in the Imperial Valley in addition to nursery stock. "We are the largest domestic growers of aloe vera in the United States right now and we believe that we grow the finest quality," due to the weather conditions in the Imperial Valley, Mr. Skwara said. "Our leaves are very thick, juicy and long, and not wavy." The company sells aloe vera to the nursery and nutraceutical markets as well as to the fresh produce market.
In September, US Farms announced the establishment of a wholly owned subsidy, California Produce Exchange, with a mission "to supply quality 'CPE' branded produce to our customers worldwide." Currently, CPE's main commodity is fresh asparagus grown in the Imperial Valley.
According to a company information sheet, CPE is "currently one of the largest ... growers of domestic grown asparagus from January through the end of March."
"We can harvest when a lot of other folks can't, just because of the warm weather" in the Imperial Valley, Mr. Skwara said. "We hired 5 Crowns Marketing to handle the asparagus sales." The company's first season in the asparagus business "went real well," he said. "We were real happy with it."
In its new tomato operations, US Farms projects "in the range of $5 million in revenues in 2007 from tomatoes alone, which is a combination of brokering and growing tomatoes," he said.
The hiring of Mr. Nucci "is a reflection of management's commitment to build an executive leadership team capable of growing the company's sales to exceed $100 million," Mr. Skwara added.
During 2007, US Farms "plans to add over 100 specialty niche produce items to its offerings." Among other things, "we're looking at garlic, we're looking at melons," Mr. Skwara said. "We'll make some announcements here shortly" regarding other new items.
US Farms grows and markets various horticultural products through several subsidies. Previously, the company's primary fresh produce commodities were aloe vera and asparagus.
"The entry into the tomato market is "a big move for us," said Yan Skwara, the company's president, who has been with US Farms since its founding in 1997. "It is a big part of our overall business strategy. Yesterday [April 3], we made the announcement that we were entering the tomato market, and today we announced Sam Nucci coming on board" as vice president of sales and marketing for a newly formed subsidiary to be known as Sammy's Produce Inc.
Mr. Nucci was previously president of Vista, CA-based Samlis Inc., a tomato distributor doing business as Sammy's Produce.
Over the course of his 28-year career, Mr. Nucci "has sold over $250 million worth of tomatoes," said Mr. Skwara. "He knows the market very well, and we are very excited about the opportunity to work with him."
The assimilation of the Sammy's Produce operation into US Farms is "a very similar scenario" to the way US Farms entered the aloe vera business, he explained. "Basically what you have here" in the case of the aloe vera "is an informal merger of a private farming and nursery operation that merged its business and assets into a public shell.... It wasn't an outright buyout of a company. It was an asset purchase."
For the first eight years of its existence, US Farms was in a very different line of business -- sports marketing -- according to Mr. Skwara. But "because the other business really wasn't moving," the board of directors "felt that a change in direction would be appropriate, in the interest of the shareholders." Therefore, the board "made the decision to pursue a farming and nursery operation that was available and bring it into the fold."
At that time, the company's name was changed from International Sports & Media Group Inc. to its present name, according to Standard & Poor's. In May 2006, US Farms purchased "600,000 full-grown aloe vera plants in the Imperial Valley along with specific farming and nursery equipment" from Phirxus Holdings Inc., dba American Aloe Nurseries, and brought Daren Pines from Phirxus onto the US Farms board of directors, Mr. Skwara said. Mr. Pines is "one of the leading experts in growing aloe vera in the United States," he said.
The aloe vera operation has expanded to about 400,000 full-grown plants in the ground in the Imperial Valley in addition to nursery stock. "We are the largest domestic growers of aloe vera in the United States right now and we believe that we grow the finest quality," due to the weather conditions in the Imperial Valley, Mr. Skwara said. "Our leaves are very thick, juicy and long, and not wavy." The company sells aloe vera to the nursery and nutraceutical markets as well as to the fresh produce market.
In September, US Farms announced the establishment of a wholly owned subsidy, California Produce Exchange, with a mission "to supply quality 'CPE' branded produce to our customers worldwide." Currently, CPE's main commodity is fresh asparagus grown in the Imperial Valley.
According to a company information sheet, CPE is "currently one of the largest ... growers of domestic grown asparagus from January through the end of March."
"We can harvest when a lot of other folks can't, just because of the warm weather" in the Imperial Valley, Mr. Skwara said. "We hired 5 Crowns Marketing to handle the asparagus sales." The company's first season in the asparagus business "went real well," he said. "We were real happy with it."
In its new tomato operations, US Farms projects "in the range of $5 million in revenues in 2007 from tomatoes alone, which is a combination of brokering and growing tomatoes," he said.
The hiring of Mr. Nucci "is a reflection of management's commitment to build an executive leadership team capable of growing the company's sales to exceed $100 million," Mr. Skwara added.
During 2007, US Farms "plans to add over 100 specialty niche produce items to its offerings." Among other things, "we're looking at garlic, we're looking at melons," Mr. Skwara said. "We'll make some announcements here shortly" regarding other new items.
