 McCain Foods gains a strong national presence with foodservice distributors as it grows its client base. New food items are another key focus.
McCain Foods USA has come a long way from frozen french fries. When the company was founded in 1957, the frozen fry was its first product. Almost 50 years later, McCain still produces traditional french fries, but has developed an array of innovative, health-conscious and "responsibly indulgent" products.
The largest producer of frozen french fries and appetizers, McCain products are sold in more than 100 countries. The company's U.S. operations are headquartered in Lisle, Ill. Its customers include premier quick-service, casual-theme restaurants, as well as foodservice distributors and retailers.
McCain production facilities are located in California, Maine, Washington, Wisconsin, Idaho, New Jersey and Nebraska so that raw materials can be competitively sourced and customers can be efficiently accessed.
McCain sells its frozen potato products under the McCain and Ore-Ida brand names in foodservice and under the McCain label in retail channels. It also manufactures a limited amount of private-label potato products. Appetizer brands are sold under the Moore's, Anchor and Brew City brands.
Frozen retail potato products are sold under the McCain brand and the No. 1 selling frozen SKU in the Northeast is the Ellio's frozen pizza brand, the company explains.
"The major trends are clearly toward health and convenience," CEO Frank van Schaayk says. "Consumers are looking for things they feel better about eating and that are convenient. But, they must taste good. That's the filter which they put everything through.
"Manufacturers are under pressure to create food products that meet all of these needs," he continues. "Not all products need to be ‘health food,' but we encourage our consumers to follow a balanced diet that includes better-for-you and responsibly indulgent foods.
McCain has developed a range of products, including line extensions and "break-though innovations," van Schaayk notes. The new products are designed to meet both consumer preferences and operator needs.
Van Schaayk says sweet potato products are well received by customers and fall on the better-for-you side of the spectrum. "Bite-sized fudge brownies and cheesecake have been popular responsible indulgences," he notes.
"Our brownies taste indulgent, but since they are bite-sized, customers feel OK about eating one or two of them. It's also a great way for a restaurant operator to add on a dessert to a coffee sale."
McCain recently acquired California-based Jon-Lin Foods, and van Schaayk says its frozen roasted vegetables have been another positive product line.
Supplier relationships are key, and McCain plans to strengthen its ties. Van Schaayk says a large segment of its supplier group is potato growers.
McCain recognizes that it is critical to work with growers in a fair and balanced way. "We're the only ones in the industry who host grower banquets and award ceremonies," he notes. "As tough as negotiations can be, we do our best to be fair to growers and keep a perspective on what their issues are.
"With our other suppliers -especially with cheese and onions, which we process a lot of -we're working to tighten and align those relationships," he continues. "We value our suppliers, and both our business and theirs will run better once we're fully aligned."
Manufacturing operations have also been a focus, and in the last several years, McCain has invested more than $200 million in its facilities -in addition to building a new facility in Maine. "Potato processing is an extremely competitive industry, and investing in cost reduction and quality improvement is a continuous effort," van Schaayk says. "We take it seriously and put money behind it."
Its ongoing commitment has made McCain a leader in its industry. Van Schaayk says the company has national distribution in broadline foodservice and "there isn't a square inch of the United States that we don't cover through our major distribution partners."
The company holds national accounts with major restaurant chains, for which it can develop unique products to fit menu needs. McCain also distributes through retail and club channels, primarily in the Northeast and Midwest. "We're not national yet, but we continue to grow our retail brand," van Schaayk says.
"One of the things we're proud of is that we continue to grow at a steady pace," he continues. "Our strategy blends acquisitions with organic growth, and we're pleased that the integration of our acquisitions has gone smoothly. We're proud of our resilience and that we can innovate from within."
Ten years ago, McCain reported just more than $300 million in sales, and this year, van Schaayk says the company expects to reach more than $1.5 billion.
He attributes the company's success to the stability of the organization and the people in it.
"We're a private company with very rich roots," he notes. "We started with a dedicated group of employees that continued to develop themselves and grow with the company. We have executed our business well and have become well-recognized and well-respected in the process. That's due to all the people here and how they've grown as individuals and as teams."
Van Schaayk says future growth will continue to come from organic efforts, as well as acquisition. Breakthrough product innovations are also key.
"The whole world is moving to better-for-you products that taste great," he says. "It's our job to provide those products, and we're working very hard to do that."
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