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fruits and vegetables from three facilities with a combined 250,000 square feet of space on a fleet of more than 150 refrigerated trucks to retailers throughout 15 Midwestern states.
“The biggest change has not been the people we serve but the models they are trying to operate,” says Corsaro. “They are trying to maximize their use of square footage without using a lot of employees.”
The independent supermarkets, in partic- ular, count on wholesalers for much of the managerial work the large chains keep in house.
“The small guys rely more on informa- tion from you and they get more items,” says Matthew D’Arrigo, chief executive of D’Ar- rigo Bros., Bronx, NY. “We are the distribu- tion center for the small guys. We also give them 7-to-14 days out pricing. There is also a lot of delivery service and logistical help. We deliver six days a week, and we’re thinking about moving to seven days.”
Following their service in World War I, Sicilian immigrant brothers Andrew and Stefano D’Arrigo took jobs working in a roadside farmers market and began careers that culminated when Andrew’s son, Stephen, led the family in opening D’Arrigo Bros. of New York following his service in
PHOTO COURTESY OF NICKEY GREGORY
With its own line of trucks and its ability to ‘buy a lot
on speculation,’ according to Andrew Scott, director of business development, Nickey Gregory is able to fill a huge supply chain need for supermarkets throughout the Southeast.
World War II.
D’Arrigo Bros. wholesales a full line of
fresh produce, including vegetables from the company’s 30,000-acre California vegetable farming operation sold under the Andy Boy label.
The wholesalers are indispensable for the independents because they need their contacts and expertise, but wholesalers also play a vital role for even the largest supermarket chains by keeping a savvy ear to the ground.
“We work hand-in-hand with supermar- kets to promote goods,” says Mike Maxwell, president of Procacci Brothers Sales Corp., Philadelphia. “We help them to project ads two or three weeks ahead. Everyone appreci- ates the help. Procacci has information from grower-shippers that allows them to help retailers procure and plan. We work on helping the major chains develop a stable platform for fresh produce through procuring and pricing the product.”
When Joe and Mike Procacci formed Procacci Brothers Sales Corp. in their parents’ cellar, they had no idea their venture would grow to become one of the largest produce wholesaling operations in the country, ship- ping fruits, vegetables and flowers throughout the Northeast from seven warehouses strategi- cally located near the Delaware River in South Philadelphia.
CONSOLIDATION CHANGES
Retail consolidation changed almost every- thing, as it led to supermarket distribution centers and direct buying from shippers, and threatened obsolescence for wholesalers.
“Back when my father ran this business, there were 14 stores in New York that had their own buyers, and we sold to all of them,”
nKNOCKING ON DOORS
With the produce landscape always
shifting, wholesalers who lose some of the older customers must constantly find new ones to replace them.
“We look for all means of looking for new customers — in person, over the phone or texting,” says Dominic Russo, buying and sales director at Rocky Produce, Detroit. “We are always looking.”
That last phrase is repeated by many wholesalers when describing how they find new customers.
“We are always looking,” offers Daniel Corsaro, director of sales and marketing at Indianapolis Fruit Company, Indianapolis. “We have a team of business development managers across the Midwest looking for opportunities for Indianapolis Fruit. We get referrals from our existing customers, and we also get people seeking us out.”
Look as hard as you want, it comes down to performance as the only way to hang onto the new customer base.
“You get the first order and then you have to earn it every time,” says Matthew D’Arrigo, chief executive of D’Arrigo Bros.,
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Bronx, NY. “To get new customers, you knock on doors, and there’s word of mouth. It’s word of mouth and hustle.”
There is relatively little new terrain for wholesalers, and business retention is largely a question of maintaining old rela- tionships.
“You’re friendly with everybody, and honest,” says Dominic “Skip” Cavallaro, president of John Cerasuolo Co., Chelsea, MA. “You email, you talk to them and see what you can do. Right now, it’s all the same business that’s been out there for years. It’s all filled up.”
The competition is tougher, however, because the modern produce buyer has more information than ever before.
“Technology changed a lot of things; there is a lot of information available that didn’t used to be,” says Philip Rosen- stein, president of William Rosenstein & Sons, Scranton, PA. “You go out and beat the bushes for new customers. You make appointments and presentations.”
Location convenient to large population centers plays a major role in opening up
new opportunities for wholesalers.
“We’re centrally located on I-95 in Phil- adelphia,” says Mike Maxwell, president of Procacci Brothers Sales Corp., Philadelphia. “Forty percent of the population of the
country is within 12 hours of us.”
A regional reputation built over time
brings a fair number of new customers through the door.
“We get more business through refer- rals and our 20-year reputation as a high- quality wholesaler here in the Southeast,” says Andrew Scott, director of business development at Nickey Gregory, Atlanta.
The constant display of top-quality fresh produce at the terminal market can be a magnet for customers.
“We are always seeking new customers; big and small,” says Hutch Morton, director of compliance and busi- ness development at J.E. Russell Produce, Toronto, Canada. “Through product choice and product quality, new customers are typically attracted to our business, and we are here six days a week to work with them.” pb