New focus at RJO since Rob O'Rourkes return
New focus at RJO since Rob O'Rourkes return
FRESNO, CA -- When Rob O'Rourke, former president of RJO Produce Marketing, here, and a founding partner of the company, left to work for Topco in Chicago nearly four years ago, his brother John O'Rourke, also a founding partner, stepped into the position of president at RJO.
About nine months ago, after spending three years with Topco, Rob O'Rourke returned to RJO as senior vice president of retail development.
"John continues to be president of RJO, and John is our leader, guiding the company as we go forward," Rob O'Rourke told The Produce News in an interview April 23. "My focus is really more on business development, putting programs in place that drive business and provide some services to customers." That is "where I like to be," he added.
Also joining the company last fall as a vice president was Scott Zeier, who has 30 years of retail experience and was previously vice president of perishables for Fresh Brands, a division of Piggly Wiggly in Wisconsin, Mr. O'Rourke said. Mr. Zeier, who is based in the Milwaukee area, will also be involved in business development. "Being located in the Midwest allows him to do store visits a lot quicker" in markets in the Midwest and on the East Coast, he said.
Since his return to RJO, the company has been shifting its focus away from procurement and more toward "sales and marketing and category management," he said.
But sales, as RJO uses the word, does not mean that the company will be doing buy-and-sell, nor does it mean the company will act a sales agent for growers or shippers. Rather, Mr. O'Rourke explained, it means a focus on helping retailers to increase their sales in various fruit categories.
"RJO has historically been known as an on-ground broker, representing retailers in a growing region, helping make procurement decisions," he said. "Prior to my leaving RJO, we began to make a shift toward category management, helping retailers strategically plan the category, and that went well. We had customers who were eagerly involved in that."
But as consolidation at the retail level escalated, some retail buyers felt that category management services were not "as important to them," he said. "They were more focused on the buy and on saving money. As a result, I ended up leaving for a while. I was gone for three years and had a great experience. It was fantastic, and I learned a lot about the grocery business" working for Topco.
During the next three years, RJO responded to the market by becoming more involved in procurement. But as the retail industry continued to evolve, retailer buyers began looking more and more to their suppliers and other outside organizations to provide them with category management and related services, and that gave Mr. O'Rourke the opportunity to return to RJO to focus on providing those services to customers.
"My passion for the industry has always been what works at retail," he said. "That is where I would like to focus my career at this point: growing sales at retail. Coming back to RJO affords me an opportunity to do that."
Along with that, "Actually, we spent the last six months repositioning RJO away from the procurement that we have done historically ... and really focus more on what I'll call sales and marketing as well as on-ground inspections," Mr. O'Rourke said. "We don't have to be involved in procurement. We want to be able to influence procurement and guide procurement based on the strategic decision of the retailer."
That involves "not just making recommendations" according to specifications and "not just inspecting" and furnishing quality reports on the product, but "really looking at product in the field and making the best recommendation based on the strategic direction of the retailer," he said. RJO is becoming "basically a strategic partner" with the retailers, he continued. "We will actually sit down [with the retailer] and put together a category plan for 52 weeks" for specific fruit categories" and then -- a point of distinction -- "make adjustments on a weekly basis to maximize the opportunity," he said.
"When we talk about sales and marketing, our focus is on putting together strategies to grow the sales at retail" and on finding "unique ways to market the category to their consumers," Mr. O'Rourke said. "We are helping the stores to grow their sales. We are not going to represent a grower or brand to sell their program or their inventory."
Being located in Central California "in the middle of the growing regions of California," RJO will continue to focus on certain core products grown in the area. "We are going to continue to look at product and work with growers to make sure the right product is going to the right retailer," he said. "But we are expanding the category management" and working with retailers "on marketing programs to grow the business" and support that with "the bird dog program."
In select cases, RJO may continue doing some procurement for certain customers who really want that service, he said.
Along with a continued focus on retailers, "we are also beginning to reach out to suppliers because we feel there is a lot of opportunity for us to support the supplier community," Mr. O'Rourke said. More and more, retailers are looking for category management and marketing services. Because of consolidation, there are "fewer and fewer people to get the job done, so retailers have less and less time." As a result, they are "relying on the supplier to do it."
But many suppliers, and particularly seasonal shippers, lack the time and the expertise to provide those services. Retailers and suppliers both are being "stretched beyond their core competencies," he said. "So we see a niche" to represent the supplier in providing those services to retailers at "a fraction of the cost" of them hiring a competent staff to give retailers what they want.
About nine months ago, after spending three years with Topco, Rob O'Rourke returned to RJO as senior vice president of retail development.
"John continues to be president of RJO, and John is our leader, guiding the company as we go forward," Rob O'Rourke told The Produce News in an interview April 23. "My focus is really more on business development, putting programs in place that drive business and provide some services to customers." That is "where I like to be," he added.
Also joining the company last fall as a vice president was Scott Zeier, who has 30 years of retail experience and was previously vice president of perishables for Fresh Brands, a division of Piggly Wiggly in Wisconsin, Mr. O'Rourke said. Mr. Zeier, who is based in the Milwaukee area, will also be involved in business development. "Being located in the Midwest allows him to do store visits a lot quicker" in markets in the Midwest and on the East Coast, he said.
Since his return to RJO, the company has been shifting its focus away from procurement and more toward "sales and marketing and category management," he said.
But sales, as RJO uses the word, does not mean that the company will be doing buy-and-sell, nor does it mean the company will act a sales agent for growers or shippers. Rather, Mr. O'Rourke explained, it means a focus on helping retailers to increase their sales in various fruit categories.
"RJO has historically been known as an on-ground broker, representing retailers in a growing region, helping make procurement decisions," he said. "Prior to my leaving RJO, we began to make a shift toward category management, helping retailers strategically plan the category, and that went well. We had customers who were eagerly involved in that."
But as consolidation at the retail level escalated, some retail buyers felt that category management services were not "as important to them," he said. "They were more focused on the buy and on saving money. As a result, I ended up leaving for a while. I was gone for three years and had a great experience. It was fantastic, and I learned a lot about the grocery business" working for Topco.
During the next three years, RJO responded to the market by becoming more involved in procurement. But as the retail industry continued to evolve, retailer buyers began looking more and more to their suppliers and other outside organizations to provide them with category management and related services, and that gave Mr. O'Rourke the opportunity to return to RJO to focus on providing those services to customers.
"My passion for the industry has always been what works at retail," he said. "That is where I would like to focus my career at this point: growing sales at retail. Coming back to RJO affords me an opportunity to do that."
Along with that, "Actually, we spent the last six months repositioning RJO away from the procurement that we have done historically ... and really focus more on what I'll call sales and marketing as well as on-ground inspections," Mr. O'Rourke said. "We don't have to be involved in procurement. We want to be able to influence procurement and guide procurement based on the strategic decision of the retailer."
That involves "not just making recommendations" according to specifications and "not just inspecting" and furnishing quality reports on the product, but "really looking at product in the field and making the best recommendation based on the strategic direction of the retailer," he said. RJO is becoming "basically a strategic partner" with the retailers, he continued. "We will actually sit down [with the retailer] and put together a category plan for 52 weeks" for specific fruit categories" and then -- a point of distinction -- "make adjustments on a weekly basis to maximize the opportunity," he said.
"When we talk about sales and marketing, our focus is on putting together strategies to grow the sales at retail" and on finding "unique ways to market the category to their consumers," Mr. O'Rourke said. "We are helping the stores to grow their sales. We are not going to represent a grower or brand to sell their program or their inventory."
Being located in Central California "in the middle of the growing regions of California," RJO will continue to focus on certain core products grown in the area. "We are going to continue to look at product and work with growers to make sure the right product is going to the right retailer," he said. "But we are expanding the category management" and working with retailers "on marketing programs to grow the business" and support that with "the bird dog program."
In select cases, RJO may continue doing some procurement for certain customers who really want that service, he said.
Along with a continued focus on retailers, "we are also beginning to reach out to suppliers because we feel there is a lot of opportunity for us to support the supplier community," Mr. O'Rourke said. More and more, retailers are looking for category management and marketing services. Because of consolidation, there are "fewer and fewer people to get the job done, so retailers have less and less time." As a result, they are "relying on the supplier to do it."
But many suppliers, and particularly seasonal shippers, lack the time and the expertise to provide those services. Retailers and suppliers both are being "stretched beyond their core competencies," he said. "So we see a niche" to represent the supplier in providing those services to retailers at "a fraction of the cost" of them hiring a competent staff to give retailers what they want.
