“I think the business has just been instilled in our blood,” Earl Ishbia (left) says about himself and Alex Karp. The two started Sherwood Food Distributors in 1969, performing many of the necessary roles themselves.

When it comes to meat and food products, family managed Sherwood Food Distributors (SFD) is the “warehouse of choice” for its supermarket clients, CEO Earl Ishbia says. “An individual supermarket can purchase [anything] for their meat and frozen food departments through our company,” he says.
Based in Detroit, the meat and food distributor operates a network of warehouses in Michigan, Ohio, Kentucky, Georgia and Florida that cater to retail and foodservice clients. “We service approximately 5,000 customers throughout our marketing area,” Ishbia says.

Ishbia and his partner, Alex Karp, started SFD as a modestly sized distributor in 1969. At that time, Ishbia performed many roles in the company himself, including sales, accounting, loading trucks and delivering products.

Back then, “We were probably selling [approximately] 50,000 pounds of meat a week,” Ishbia recalls. “Today, we sell over 16 million pounds of meat a week.“

The company also now occupies more than 900,000 square feet of refrigerated space in its network, Ishbia adds. “We [also] operate over 200 tractor-trailer combinations throughout our distribution operations,” he says.

In addition to supplying the supermarket industry, the company’s clients have grown to include cruise lines, fast food outlets and wholesalers. “We are currently handling the logistics for several different cruise lines in the Fort Lauderdale-Miami area,” he explains.

“Their needs are somewhat different [than our supermarket clients],” Ishbia continues. “They buy similar items … yet they also buy several foodservice items they need to accommodate their passengers.”

The Right Ways
As the size of SFD’s client base has grown, so have its sales, Ishbia says. Last year, the company enjoyed sales of $1.2 billion. SFD’s success, he says, has been achieved by focusing on “hard work and an attention to detail.”

For instance, “Our management team is focused on the details of [our] operation,” Ishbia says. “We drill down into all aspects of it, trying to make sure we are efficient and we are doing things in the right way.”

Food safety also is a strong area of concentration. To keep its products safe, “We have people dedicated solely to handling quality control functions within each of our operations,” he says.

In addition, “We take safety very seriously,” he says, noting that the company employs managers to monitor truck drivers and warehouse employees. “[We] monitor their performance to see that they handle their jobs in a safe and efficient manner.”

The Second Generation
After more than 40 years in the industry, Ishbia says he still enjoys coming to work at SFD. “My partner, who is past the age of retirement for many, still comes to the office every day and is involved in all major decisions,” he adds. “I think the business has just been instilled in our blood.”

The business also has not passed their children by, Ishbia says. Instead, “One of the biggest things that we’re proud of is the fact that we’ve transitioned a second generation into our business,” he says.

For instance, Karp’s son, Gary Karp, an attorney, joined the company more than 25 years ago, and now is in charge of SFD’s corporate affairs. “He is heavily involved with our credit and risk management departments,” Ishbia says.

In addition, Ishbia’s son, Howard Ishbia, oversees sales and marketing for SFD. “He has developed a keen sense for [both] and [meets] expectations for managing our sales and purchasing force,” the elder Ishbia says.

Another son, Jason Ishbia, is a CPA and the company’s CFO. “He runs the financial and accounting end of the business,” Earl Ishbia continues, adding that a third son, Joel Ishbia, has a degree in materials and logistics management, and is in charge of inventory management and vendor relations.
A fourth son, David Ishbia, recently joined the company’s sales force after working as an attorney. “He is in the process of learning the various aspects of the business,” Earl Ishbia says. “We’ll groom him to take on a leadership role in the near future.”

Ishbia adds that another son, Scott Ishbia, may follow in his brothers’ footsteps after finishing his senior year of college. “Even money says that he’ll want to join our company [as well],” he states.
Ishbia notes that all five sons at SFD have made their fathers proud. “They are probably the hardest workers in the company,” he declares. “They’re among the earliest ones here, [and] the latest ones to leave.

“They are very absorbed in their work and very dedicated to what they do,” he continues. “We know that we have a management team that we can count on to do the right thing for the company.”
In addition, the family involvement has helped nurture a strong focus on the company’s success throughout its staff, Ishbia says. “All of our top people try to do the very best for the company at all times,” he says.

Adjusting to the Economy
This year, “Beef, pork and poultry have been reasonably priced,” Ishbia reports. “We see greater movement in these commodities primarily because with the economy the way it is, people are not eating in restaurants as much, and are buying down to lesser expensive cuts of meat.”
The economy has not had many negative effects on SFD, Ishbia says.

“Our comparable business is running the same way this year as it was last year,” he says. “Our volume is running the same as it was last year, even though we have lost a few customers to the economy.”

In addition, “We’re always looking for new products to introduce to our customer base,” he says.
The company also plans to grow by moving into a new facility in Florida that will span approximately 90,000 square feet. This new facility will enable the company to continue growing in the Florida market.

Industry Recognition
This year, Ernst & Young LLP named Ishbia the winner in the Central Great Lakes region of its Entrepreneur of the Year award in the Master Entrepreneur category. “Awards are given to entrepreneurs who demonstrate extraordinary success in the areas of innovation, financial performance and personal commitment to their businesses and communities,” Ernst & Young says.
Ishbia also is eligible for consideration in the organization’s national awards, which will be announced in November. “It’s something [I’m] very proud of,” he says.

In addition to receiving industry recognitions, Ishbia participates as a board member in such organizations as the Michigan Conference of Teamsters Welfare Fund, the National Poultry Food Distributors Association and the Associated Food and Petroleum Dealers of Michigan.

“We try to be active in all of them,” he says. “It’s an opportunity to really meet the people that make decisions in companies and better understand what everybody is looking for as far as products and service.”

Moving Forward
Ishbia predicts SFD will continue growing. “Very often, our type of growth is done through acquisitions,” he says. “We’re always looking for opportunities.”

However, he asserts that SFD looks at each opportunity carefully. “We’ll only take them where they make sense,” he says.

The company’s future also will find the second generation of family leadership taking the reins from Ishbia and Karp. A succession plan is currently “in the works,” Ishbia says. “It is our hope that they are going to carry on this business to the next generation.”