 Island Farms was founded in 1944. Originally, Dick explains, the brand was a cooperative owned by local farmers on Vancouver Island, where all of its products have held a high market share. After 63 years, Island Farms is the leading source of dairy products for Vancouver Island, British Columbia, Canada. "We have a 60 to 70 percent share of the business on the island," says Mike Dick, general manager.
On Vancouver Island, Island Farms serves a population of approximately 750,000. Based in Victoria, British Columbia, Island Farms is a brand of Agropur Cooperative, based in Longueuil, Quebec, Canada. Island Farms' products include milk, cream, ice cream, yogurt and cottage cheese. It is also a distributor of Silk Soymilk and Tropicana Juices.
'Good Things From Good People' Island Farms was founded in 1944. Originally, Dick explains, the brand was a cooperative owned by local farmers on Vancouver Island, where all of its products have held a high market share.
"From our first horse and buggy stocked with glass milk bottles back in 1944 to today's sleek semi-trailer filled with more than 600 dairy and non-dairy products, Island Farms has built a reputation for good things from good people, close by," it states. "In the early days, most of our milk was distributed through home delivery, direct to the consumer," Island Farms states. "Now, at the turn of the millennium, the Island Farms fleet delivers our products to grocery stores up and down the island, on the lower mainland and beyond."
The market on Vancouver Island is dominated by independent retailers, including Thrifty Foods and Fairway. "There's a number of these independent retailers on the island that we've supported [and grown with]," Dick states.
Dick says Island Farms has provided support with superior service, full product offerings and competitive pricing. "We have also partnered with several of our customers in supporting the community," he adds.
As it has moved into mainland Vancouver, Dick says, Island Farms has not had the widespread product distribution it enjoys on Vancouver Island. One factor impacting this, Dick says, has been the geographic challenges of British Columbia. "Population is spread across vast distances," he states, explaining that one often has to travel for several hours before reaching a customer.
Another factor, he says, has been a major competitor of Island Farms, which has an extensive distribution network throughout British Columbia. It has a number of key customers in exclusive contracts that prevent them from carrying Island Farms' products. He asserts, however, that the brand has popular items on the mainland, including its Vanilla Plus yogurt and ice cream.
"We're one of the last two dairies that produce ice cream in British Columbia," Dick adds, explaining that the rest of the ice cream sold in its markets primarily comes from eastern Canada.
Big Acquisition In 2005, Agropur acquired Island Farms. The cooperative has more than 3,900 members and produces nearly 2 billion liters of milk annually.
"They're the largest dairy cooperative in Canada," Dick states, adding that Agropur's purchasing power allows Island Farms to compete more effectively and reduce costs.
Island Farms is part of Agropur's Natrel division, but the brand operates relatively independently. "We run as our own entity within the organization," he explains. Today, Island Farms has production and distribution locations in Victoria and Delta, British Columbia; a production location in Chilliwack, British Columbia; and a distribution facility in Cassidy, British Columbia.
In 2006, Dick says, Agropur converted its Chilliwack plant for its Sealtest brand to an Island Farms facility, because the latter is more recognized in British Columbia. Dick says this conversion has increased Island Farms' market exposure. "The emphasis has remained on Island Farms [as] the brand for western Canada," he states.
'For the Long Haul' Dick joined Island Farms in 1998, when it acquired Direct Advantage, a dairy distribution company that he co-owned. Dick says he has appreciated Island Farms' focus on long-term results.
"Agropur is very much the same way," he adds. "At the end [of the day], the shareholders do understand the business. They're in it for the long haul, and not the short term. I think that type of philosophy fits with me, personally."
A Distinguished Dairy Customers "perceive a difference in our brand and willingly seek that brand out," Dick states. One difference he says they appreciate is the taste of its milk.
A contributing factor to the taste, Dick says, is the area in which cattle are raised. He says Island Farms' milk primarily comes from cattle raised on farms on Vancouver Island.
In addition, Dick says, Island Farms' Vanilla Plus yogurt has been popular with its customers because it has a creamier texture than its competitors' products. "It's almost more of a pudding," he states.
Another notable product is its cottage cheese. "[We] make it still by hand so the curds are larger," Dick explains. "[We] don't put as much dressing in it. [It] tends to be a thicker product than our competitors'."
Most recently, Island Farms has started offering two products from Quebec: Natrel Lactose Free milk and Hershey's Specialty shake drinks. The milk is part of Agropur's Natrel line, which is made with a filtration process that removes nearly all lactose from the milk. In addition, Dick says, the Hershey's shakes are shelf stable, making them ideal to be sold in vending machines.
'Synonymous' With Support Island Farms is closely tied to its communities, Dick says. The brand has sponsored parades and food drives, as well as cancer and ALS charities. "I think that's become synonymous with the brand," he says. "We're here, we're local, we support the community and we're very visual about it."
Its Milk For Kids program provides fresh milk to families in need through food banks. "Begun in Victoria in 1999, the Milk for Kids program now distributes more than 30,000 liters of milk each year to families throughout Vancouver Island and the lower mainland," Island Farms states. |