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OPN connected with Ken Reagan, vice president of sales and marketing for State Garden/Olivia’s Organics to learn more about their expansive growth and his take on opportunities and challenges for the industry.
Ken will be a panelist at the upcoming Organic Produce Summits’ educational breakout session "The Organic Supply Chain - Opportunities and Challenges.”
Ken Reagan, vice president of sales and marketing for State Garden/Olivia’s Organics
OPN Connect: At Olivia’s Organics, family is a one-word mission statement. Tell us about your history and growth in organic over the years.
KR: “State Garden was one of the earliest produce companies to embrace and pursue the organic food movement. When we purchased a local salad company in 2000, the company was processing 30,000 pounds of salad greens per week, of which 5 percent was organically grown, while 95 percent was conventionally grown. Currently, State Garden processes one million pounds per week of which 95 percent is organic and 5 percent is conventionally grown. In 2006, we launched the Olivia’s Organics brand and today it is the most recognizable brand in the Northeast and Mid-Atlantic areas.”
Organic tender leaf salads
OPN Connect: What are some new innovative products and business practices are you engaged in to grow the category?
KR: “Our innovations and business practices are centered on adding value to our products. We were pioneers in packing lettuce in clamshells, increasing shelf life and giving our brand a premium look. We work hard at our logistics. Efficiently moving product from the farm, through our plant, and onto the shelf is extremely important. Food safety is also one of our focal points. We’re SQF level III."
OPN Connect: What do you see as the industry’s most pressing risks and brightest opportunities in the year ahead?
KR: “Food safety is by far the largest risk to our industry. Consumers expect more from their retailers and food service providers, who in turn expect more from their suppliers. SQF integrates a quality component as well as food safety. We are, and have been, SQF Level III which is the highest mark you can achieve. All suppliers should incorporate product testing for e coli and salmonella prior to harvest and on finished goods. Finished goods product testing should also include listeria. Traceback numbers should also be included on ALL packages.”
OPN Connect: Your holistic approach extends beyond organic farming practices. Talk about your Olivia’s Organic’s Charitable Foundation and your philosophy of giving back.
KR: “Our steady growth over the years has made us proud. As John DeMichaelis, Sr. began to scale down his workload, he challenged the next generation (his sons John, Mark and Kevin) to pursue a course which has made them much prouder than the number of salads we can sell in one week. As we were rolling out our Olivia’s Organics brand, he challenged us to create a more formal structured giving program which aids children in the markets in which we sell our products. Hence the Olivia’s Organics Charitable Foundation was born, privately funded by our family. Since its inception 2006, the Foundation has donated over one million dollars to area children’s charities where the Olivia’s brand is sold. Some of the best moments have been aiding charities in their growth process or in their time of need.”
Olivia's Organics Charitable Foundation
OPN Connect: As a panelist at the Organic Produce Summit you will be addressing the organic supply chain. What message do you hope to convey at this session?
KR: “It’s important for the organic consumer to understand the challenges that face the organic farmer. Weather, disease and insect pressures are constant, and each effect every subsequent step in the process. The cost of production and transportation is higher and at times the yields are lower. As an organic food processor, it’s our job to provide a steady and high-quality supply of greens at a competitive price. It’s an extremely difficult endeavor.
We source 100 percent of our products from the USA and we are constantly searching for different growing areas, so we can eliminate product gaps during transition times.”
OPN Connect: Why is the Organic Produce Summit important for Olivia’s Organics to attend?
KR: “The event is a great opportunity to connect with retailers to see what directions they’re trending; not just organic salads but in their overall “going forward” business plans for their produce departments.”
