TransPecos Foods produces many varieties of onion rings, cheese sticks, battered and breaded vegetables, and stuffed jalapeno poppers.

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When onion ring manufacturer Anchor Foods was acquired by a food industry giant in 2001, its parent decided to close the operation in Pecos, Texas, and immediately, more than 15 percent of Pecos’ population was swept into unemployment. Across town, however, bank owner and entrepreneur Pat Kennedy saw an opportunity to help the community.

With a longtime interest in the foodservice industry, Kennedy purchased the operation and reopened the plant in 2002, renaming it TransPecos Foods. According to President Dub Sutherland, Kennedy was successful in a fairly foreign industry due to his strong ties in the community.

“He spent a lot of time talking to other people in the industry, and worked hard to help a struggling rural area,” Sutherland says.

“He was able to pick up enough business to get started in 2002, and we began manufacturing onion rings, and expanded our product line to turn out about 45 different products.”

TransPecos Foods purchased the assets of the plant in Pecos and started to build business from scratch by focusing on quality and customer service. “We have the ability to be flexible and provide the kind of service that can’t be matched by a larger supplier.”

The company now serves customers in the foodservice and retail segments, and operates as the only food manufacturer focusing purely on snack foods and appetizers, Sutherland says. The company produces approximately 15 types of onion rings – including beer battered onion rings, homestyle onion rings, batter dipped onion rings, gourmet crumb onion rings — and five different cheese sticks, 10 battered and breaded vegetables and stuffed jalapeno poppers.

Fry it Up
Even as many heavy hitters in foodservice introduce healthier alternatives to fried foods, TransPecos Foods does not plan to eliminate or reduce its line of greasy grub.

In fact, Sutherland sees consistent demand for these products, particularly throughout the Northeast, he says. However, to appeal to its customer base in the West, where healthy eating trends are taking hold, TransPecos Foods has developed healthier versions of its snacks and appetizers, such as lightly breaded, fresh-cut vegetables.

“We’ve found that we can actually preserve or improve flavors without losing healthy elements,” Sutherland says. “For instance, we’ve taken bell peppers, cut it into slices and put a light bread crumb coating on it. It’s not saturated in oil, but has the crunchy taste that appeals to people.

“There is definitely a trend toward healthy eating, but there are still plenty of people who still want to eat food that tastes good,” he adds. “We’re always pushing for creative ways to develop new products in the fried food category.”   

The company’s newest products combine healthy ingredients and the flavors many consumers demand. Its line of nuggets includes kernels of corn, squash, broccoli and cheese covered in a flaky crust. “We’re always looking for what’s going to become the next popper,” Sutherland says. “We try to focus on commercializing products that might currently be made in the back of the house of some new restaurant. These are the products that might still need to be commercialized to improve consistency and food safety.”

Sutherland sees tremendous growth potential in the desserts and breakfast foods segments. Recently, the company developed an apple-cinnamon nugget, which it plans to introduce with dipping sauces, he adds.

Overcoming Challenges
The most challenging aspect of the business revolves around logistics and distribution, Sutherland says. Few restaurants need to order a truck full of onion rings or jalapeno poppers, so the company partners with nearby suppliers to fill distribution trucks in a more cost-effective way. “We have partnered with chicken suppliers and potato suppliers who use frozen distribution like ours,” Sutherland explains.

Maintaining a cost-effective operation is imperative, and the firm strives to eliminate as much waste as possible in its manufacturing operation.

“We’ve worked very hard at reducing scrap, because it’s important to maximize the materials that we put into the products,” Sutherland says. “We try to make sure that when we put a pound of material in [the production line], we get about a pound of the finished product coming out.”

Climbing the Ladder
Employees at TransPecos Foods have the opportunity to learn many aspects of the business, from production to office work.       

“Everyone wears a lot of hats around here,”according to Sutherland. “When you compare people’s business I.Q. when they start to two years down the road, it will have increased at least three times.”

Sutherland plans to continue providing these opportunities for advancement to ensure the company can continue on its path of growth. The firm is currently at 50 percent capacity in its 140,000-square-foot plant. Although it produces between 25 and 30 million pounds of product each year, Sutherland says his goal is to reach 60 to 80 million pounds in five years. “Our goal is to be at 100 percent capacity, but only while maintaining our balance between retail and foodservice,” he says.