Oregon-Resources-for-Food-Entrepreneurs

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Feb 20, 2013 (4 years and 7 months ago)

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Oregon Resources for

Food Entrepreneurs

Jim Seufert


Seufert Winery

Dayton Community Development Association


jim@seufertwinery.com

Oregon Resources for

Food Entrepreneurs

Topics:


Setting the Stage


Recent Start Ups and a Success Story


The Big Picture of Food Manufacturing in Oregon


Common Challenges


Oregon Resources


Before You Start


University Programs


Quick Start Programs


Solutions to Specific Questions


Selling Your Product


Economic Development Opportunities

What’s New:

Sampling of Oregon’s New Food Products

Fruit Pate from
Oregon Growers
and Shippers

(Hood River)

Toffee from
Cary’s of Oregon

(Grants Pass)

Preserves from
Aloha from
Oregon

(Eugene)

Pretzels and dry dips from
Vibrant Flavors

(Portland)

Biscotti from
Be
-
Bop
Biscotti

(Bend)

Chocolates from
Lillie
Belle Farms

(Central
Point)

Tea from
Smith Tea

(Portland)

Pickles from
Unbound
Pickling

(Portland)

Role Model:

Pacific Natural Foods


Based in Tualatin, Oregon


Vertically integrated
(farm, process, retail)


24x7 operations, 300+ employees


National distribution


Doing things the right way…

Food Manufacturing in Oregon

Source: Oregon Employment Department


Employs ~23,000


Only sector to increase jobs during recession:


2007
-
9 overall Oregon employment dropped 6.9% while food processing employment increased 2.6%


Predicting future growth:


By 2018 Oregon manufacturing will shed 5,300 jobs but food processing is expected add 1,700

So You Want to Start a Food Business?

Common Challenges


Expect all the challenges faced by every start up business:


Market research, product development, business planning, production,
marketing, sales, supply chain, technology, etc.


Add to that:


Frequently processing agricultural crops:


Perishable product


Variability in ingredient quality, yield, timing, etc.


Inventory requirements (seasonal harvest to supply annual sales)


Considerable costs:


Specialized equipment, space, inspections, licensing, etc.


Cost to carry inventory


Food safety:


Processing = preserving = pathogen “kill” step

(Listeria and so many others)


External oversight, reporting, inspections (e.g., FDA, USDA)


Before You Start


Market Research


Small Business Development Centers

Entrepreneur Education:

Research Your Idea and the Market


Read!

(for example)


Starting a Part Time Food Business

(Lewis)


Sell Your Specialty Food

(Hall)


Small Scale Food Entrepreneurship: A Technical Guide for
Food Ventures

(Penn State College of Ag Sciences)


And many more resources…



Research trends and competition


Specialty Food magazine


Fancy Food Show


Jan 15
-
17, 2012 San Francisco



Production equipment and food industry seminars


NW Food Processors Association Expo


Jan 15
-
18, 2012
Portland


Most industry segments have their own “association”

Entrepreneur Education:

Getting Started

(and beyond)




Oregon Small Business Development Center Network


www.bizcenter.org


Offers FREE help with:


Financial, marketing, production, organization, international trade
and feasibility studies.


Develop a business plan, assess a new market, create cash flow
projections, control costs, or break into the global marketplace.



Case Study: Ft. George Brewery (Astoria)


Counseling from Clatsop Economic Development Resources
and the CEDR/SBDC Small Business Development Center


Wanted to expand production


SBDC counselor helped:


Know what it cost to make a keg of Vortex (the brewery’s signature
beer) to justify expansion


Started quarterly (then monthly) inventory schedule


Work with Pacific Power to reduce the cost of converting the
expansion space from single
-
phase to three
-
phase power

University Programs


Portland State University


Food Industry Leadership Program


Oregon State University


Food Science and Technology


Entrepreneur Education:

Running a Food Business

Portland State University: Food Industry Leadership Center

Entrepreneur Education:

Science and Technology

OSU has undergraduate and graduate programs in
these disciplines, as well as periodic seminars:


Food Chemistry and Biochemistry


Food Microbiology and Biotechnology


Flavor Chemistry and Sensory Evaluation


Food Processing and Engineering


Enology (Winemaking)


Brewing Science


Dairy Processing


Seafood Science


Value
-
Added Foods

Oregon State University: Food Science and Technology

Upcoming dairy seminars:


Practical introduction to cheesemaking


Production of French soft cheeses


Production of French hard cheeses


Seminar
-

to pasteurize or not to
pasteurize: the great raw milk cheese
debate, a French perspective


Dairy cleaning, sanitizing, and impact
on food safety


Milk quality, flavor and introduction to
dairy microbiology


Prioritizing safety; GMPs and HACCP

Quick Start Programs


Portland Community College


Getting Your Recipe to Market course


Linn
-
Benton Community College


Food
-
Biz Bootcamp

Entrepreneur Education:

How To Start a Food Business


PCC: Recipe to Market (Portland)


“Comprehensive program that takes food entrepreneurs
from concept to commercial ready”


Food safety and science, recipe formulation, product development,
brand development and marketing, basic financial management,
product distribution, etc.


New Seasons sponsors event


Participants “pitch” products to New Seasons buyers


Winner gets $2,000 launch funding and retail shelf space




Case Study: The Better Bean Company


Fresh refried beans (versus canned)


PCC Recipe to Market graduate; New Seasons Winner

Portland Community College: Recipe to Market

Entrepreneur Education:

How To Start a Food Business

Portland Community College: Recipe to Market

Entrepreneur Education:

How To Start a Food Business

Portland Community College: Recipe to Market

Entrepreneur Education:

How To Start a Food Business

LBCC/Oregon Tilth: Food Biz Bootcamp (Albany)


“Help food entrepreneurs network, gain resources and
perspectives on what it takes to run a successful food
business”


The intent of the workshop is three
-
fold:


Create a community of practice



a cohort of food business
owners throughout the Linn
-
Benton area who can support one
another through the challenge of establishing a local food
business


Give participants a sense of what it takes to create a
successful food business

-

challenges, considerations, stories
from successful entrepreneurs


Expose participants to available resources

-

local food
networks, farmer’s markets, on
-
site processing, distributing,
business planning, financing, marketing and more


Conducted with Oregon Tilth


Linn
-
Benton Community College: Food Biz Bootcamp

Solutions to Specific Questions


OSU Food Innovation Center


OSU Seafood Research Lab

Entrepreneur Resource:

Concept Development


OSU: Food Innovation Center (Portland)


Product and process development


Packaging engineering


Shelf life studies


Consumer sensory testing




Case Study: Chez Gourmet


Veggie burgers


accounts include:


Burgerville, McMenamins, Zupan’s, Fred Meyer, Whole
Foods, New Seasons


2006 launch; 2008 moved to 12,000 sq ft facility


5+ employees; profitable


OSU FIC: Product development

Entrepreneur Resource:

Concept Development


OSU: Seafood Research Lab (Astoria)


Research and Development


Value
-
Added Product Development


Seafood Safety


Seafood Biochemistry and Quality


Surimi and Surimi Seafood


Seafood Byproduct Utilization



Extension Service to the Fishing Industry


Graduate Research, Training and Instruction



Case Study: Annual Surimi School:


Develop knowledge of surimi technology and its
utilization in food product development, as well as
surimi market trends. The course covers:


Chemistry, microbiology, and rheology of surimi,


Functional applicability of surimi additives like
cryoprotectants, enzyme inhibitors, binders, fillers, colorings,
flavorings, and production know
-
how.

Food Production


Rental Kitchens


Outsource Operations

Entrepreneur Resource:


Rental Kitchen
-

Columbia Gorge


Columbia Gorge Community College:
The Dalles, OR


Certified commercial kitchen, rent by the hour


Incubator Services:


Goal is to stimulate small business growth in the Mid
-
Columbia region


Staff assistance in areas of management, financing, and
marketing


Connections to entrepreneurs and regional experts


Equipment


Convection oven; food processor, mixers, etc.


Packaging area includes bottle
-
filler, weight
-
pack, labeling
machine, package sealers


Demonstration area, meeting, & banquet room

Entrepreneur Resource:


Rental Kitchen
-

Southern Oregon


Rogue Valley Kitchen: Central Point, OR


Certified commercial kitchen, rent by the hour


Startup resources including:


Advice on licensing; food label law guidance


Graphic design and packaging; product photography


Connections to suppliers and networks


Referrals to an ever
-
growing base of local resources.


Equipment


Electric convection oven; range; mixers, etc.


Packaging/labeling clean room


Meeting area/conference room



Case Study: Rokz Cocktail Sugars and Salts


Vivid color, sparkle and flavor; new twist on the usual garnish


Superior flavor, brilliant appearance, excellent shelf
-
life, and
exceptional price point


Started 2006 in Eugene sharing space at Food for Lane County


Profitable since 2009, and a “new surge of interest in our products
and private label projects”


Husband/wife share 1FTE, hire PT help, about to hire 1
-
2 people

Entrepreneur Resource:


Rental Kitchen
-

Around the State


Corvallis: Chintimini Senior Center


Bend: Bend Community Center


Newport: Senior Center


Portland: John’s Catering and Food Cart Kitchen


Roseburg: Umpqua Valley Arts Association

Entrepreneur Resource:

Outsource Production


DePaul Packaging (Portland)


Co
-
Pack facility
:


Package bulk product in retail portions


Club store variety packs (and more)



Richmond Baking (McMinnville)


Contract bakery for crackers, cookies, etc.



Case Study: Tao of Tea at DePaul


Retail packaging of loose leaf tea


Strong sales


can’t meet demand in
-
house


Oregon Tilth organic certification


Selling Your Product

The Entrepreneur Rarely Sleeps…

Selling Your Product


Direct to consumer


Food and wine festivals


Farmers markets


Product demos inside retailers


Online

(social media promotions to webstore sales)


Wholesale


Direct sales to retailers


Trade shows


Fancy Foods Show (San Francisco)


Northwest Foodservice Show (Portland/Seattle)


Wholesale distributors


Provvista (Portland)


Specialty food brokers (contract sales reps)


Murdock and White


Cascade Food Brokers

Can’t Find What You Need?


Economic Development Opportunities

Economic Development Opportunity:

Three West Coast Models

Food Technology Center

University Of Idaho

Caldwell, ID

“Multi
-
purpose food

production facility”

Blue Mountain Station

Dayton, WA

“Eco
-
friendly artisan natural

& organic food park”

La Cocina

San Francisco, CA

“Cultivate low
-
income food

entrepreneurs”

Economic Development Opportunity:

Define Your Local Needs


Leverage existing assets:


Community College


Coaching via SBDC, SCORE, etc.


Create new food business courses


Commercial kitchen space


School, church, restaurant, other local food processors




Case Study: Dayton Artisanal Food Center


An innovative new facility that:


Builds a culture around Good Food


Creates businesses and jobs


Develops a workforce


Conclusion



Small Business Development Centers




Final Questions

Jim Seufert


Business Consultant: Strategy definition to plant operational improvement


Owner & Winemaker: Seufert Winery, Dayton Oregon www.SeufertWinery.com


Economic Development: Dayton Community Development Association
www.DaytonOregon.org


Jim@SeufertWinery.com