Food companies big and small are buying ingredients from Michigan farmers for their products, and state agencies are reporting increased calls from others that want to do so.

Experts say there are many reasons for the uptick: The state’s location — in the middle of the country and relative closeness to the large East Coast market — makes transportation costs cheaper; Michigan-based processing companies’ are loyal to local businesses; and increasing consumer demand for locally grown food.

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An exact figure for how much of Michigan’s $71.3 billion agribusiness industry comes from sales of Michigan farm products to food companies is unavailable. But Christine Lietzau of the Michigan Department of Agriculture said the industry’s 12 percent revenue growth from 2006 to 2007 can be attributed, at least partly, to more companies buying food from local farmers.

With more than 200 commodities grown in Michigan for commercial purposes, the state is a one-stop shop for ingredients.

More food companies have been inquiring about where they can find Michigan commodities in the past two or three years, said Lietzau, manager of the MDA’s Select Michigan program, which connects consumers and companies with local businesses and growers. She said she gets about three calls a day from national and local companies looking for Michigan commodities to put in their products.

“It’s an absolute boost for the Michigan economy,” Lietzau said.

Last year, fast food giant McDonald’s Corp. bought $443 million worth of milk, corn, beef, eggs, sugar, blueberries and apples from Michigan farmers. The company has a good working relationship with local growers, said Marcy Amble, vice president of operations for the Michigan region.

“Any time we can use local suppliers, we do,” Amble said.

Battle Creek-based Kellogg Company has counted on Michigan farmers to supply many of the ingredients in its breakfast cereals and other products since it was founded in 1906. Although the company wouldn’t reveal how much money it spends on Michigan products, officials said its support of local farmers will continue.

Popular commodities sought by processors include cherries, blueberries, apples and asparagus, said Bob Craig, director of the agricultural development division at the MDA.

“We’ve certainly seen an upsurge (in calls from food companies) in the last couple years,” he said. “We get calls every day, and not just from big companies. (They are) all sizes.”

For smaller companies, buying Michigan-grown and -produced ingredients is a way to support local growers and the economy while giving customers the freshest and highest-quality food available.

Randy’s Granola, a start-up in Marne on the west side of the state, uses maple syrup from Sugar Bush Supplies Co. in Mason and brown sugar produced in Zeeland. Owners Suzanne Vier and Randy TenBrink are developing a new granola blend made with cherries from Traverse City, Vier said.

The partners said supporting local businesses is so important that they would rather spend time researching local growers and food producers than buy from vendors in other states. Backing Michigan businesses and the economy ensures that their own company will survive, Vier said.

“With everything we do, we strive to have all products from Michigan,” she said. “Helping the local economy is helping our company.”

Overby Farm LLC in Leland makes cat and dog treats using cherry concentrate, blueberries and cranberries grown at farms in northern Michigan. Owners Carol and Bob Adams never considered getting the ingredients from other states, even if it was cheaper, Carol Adams said. The couple doesn’t keep track of how much they spend on local ingredients.

“We’re loyal to Michigan,” she said. “We want to support agriculture and protect our natural resources because they are the two golden nuggets of this state.”

TenBrink, who lives on the west side of the state, brought along a homemade snack that received more compliments than the chef. Randy’s Granola had arrived, not long after they sat down for dinner, and it was good to the last crumb.
“Within five minutes of reconnecting, he took out a Wasabi Peas tin can, and said it’s his granola,” said Vier, who grew up in Royal Oak and graduated in 1990 from Dondero High School. “I took one taste of it and said ‘It’s too good to keep to yourself.’
“That night over dinner we decided to go into business together.”
Their first sale was May 28 and five months later, Randy’s Granola is in 40 stores in Michigan, Vier said.
Vier was so confident in the venture that she quit her career in human resources for a staffing agency in New York City to concentrate on marketing the healthy snack.
She returned to New York City last week, not just to visit friends, but to sell their product.
“I just delivered two more cases of granola — they’re loving it,” she said. “Granola is a big deal on the east coast. People are receptive and want to eat healthy.”
The early success may also get Vier a television commercial with Mutual of Omaha. She is among 75 people nationwide sharing her “aha moment” in a video contest the insurance company sponsors.
The top 10 vote-getters will have their “aha moments” included in Mutual of Omaha’s 2010 TV campaign. A link to the video and contest is on randysgranola.com.
“(Winning) would take the company to a whole new level,” Vier said. “To have a national reach so soon would be absolutely amazing for us. It’s extraordinarily exciting and I’m just so honored to participate.”
The two rented a vehicle to distribute Randy’s Granola in the first few months. “We called it the ‘Granola Mobile,’” Vier said, laughing.

Sales picked up so well that a distributor, Carmela Specialty Foods, is now getting the product to market, she said.

Westborn Market in Berkley, Hollywood Market in Royal Oak and the Townsend Hotel in Birmingham are among the stores that carry Randy’s Granola, Vier said.
“From last month we increased revenue and production by 25 percent,” she said.
Vier said she owes her business savvy to her mother, Patricia Vier, a single mother who ran a photography business out of the home.
“She turned her kitchen into a dark room, had a desk, an answering machine that was her photography (business) voice mail message,” Suzanne Vier said. “We’d pack up the car, go to photo shows. There were times I was the ‘assistant’ at real big weddings. I’d help carry the equipment, watched her meet with brides and grooms.
“She instilled in me the ability to do what you love and do it successfully.”
skowalsk@hometownlife.com|(313) 222-2047

1st round voting ends Oct. 15th! – Please vote, share this, and help us win!

Click on this link to vote: http://www.ahamoment.com/pg/voting

Experts say the market is an ideal location for new proprietors to get their feet wet because they can meet consumers, get instant feedback on their products, and refine their business skills. The only cost is $65 to rent space on Saturday during open market.

Randy TenBrink and Suzanne Vier say they couldn’t have chosen a better place to set up their company, Randy’s Granola. With little capital, and unsure how the market would react to their product, the business partners opened a stall at the outdoor market in July.

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Today, the granola is sold in at least 30 stores in Michigan and other states and sales are up about 20 percent each month, Vier said. They credit the 118-year-old market complex with jump-starting their company, saying the exposure, experience and customer feedback they’ve gotten at their stall have been key factors to their success.

“As an entrepreneur, it’s a good opportunity to come face-to-face with your demographic,” said 45-year-old TenBrink, of Marne, on the west side of the state. He went into business for himself after he was laid off from an auto supplier.

That personal interaction is why many entrepreneurs are drawn to Eastern Market, said Ed Deeb, co-founder of the Eastern Market Corp., former chairman of the Eastern Market Merchants Association and president of the Michigan Business & Professional Association, a trade group that represents 20,000 small- and medium-sized businesses.

“It gives you a chance to mingle with people to know what they’re looking for,” Deeb said. “It gives you ideas. That’s the spirit of Eastern Market.”

Merchants can rent a 7 foot-by-20 foot stall on Saturdays in the market, bound by Gratiot Avenue, Wilkins, Riopelle and Russell streets. More than 20,000 customers visit on an average Saturday, according to the Eastern Market Corp.

Officials are trying to attract more small businesses to the area by sponsoring parades, having sales and offering other enticements, Deeb said.

It’s a good place for entrepreneurs to test the market, get experience and have access to thousands of customers, without having to make a hefty financial commitment, said Mike Rogers, a spokesman for the Small Business Association of Michigan.

“What’s great about Eastern Market is that it lets them leverage their sweat equity,” Rogers said. “It serves as a tremendous catalyst for success.”

Randy’s Granola was discovered by three distributors at the market, and one picked up the company’s product.

“Eastern Market has given us more exposure than any other venue,” said Vier, 37, who was working in New York City and plans to move back to her native Michigan to run the business. “We’ve grown very quickly.”

Roz Cordova is another example. After taking a buyout from Chrysler Group LLC in November, the 40-year-old Rochester Hills woman launched Crushed Smoothies LLC.

She’s been selling the fruity beverages at local sporting events, fairs and other community gatherings, and recently set up a stand at Eastern Market.

“When you say ‘Hey, I’m at Eastern Market,’ everyone knows what you’re talking about,” Cordova said. “I’m getting great response from Eastern Market customers.”

Most importantly, we want to tell you about Randy’s Granola being nominated for Suzanne’s Aha Moment talking about starting Randy’s Granola. Right now you can vote so Randy’s Granola can be selected to be a part of national commercial campaign for Mutual of Omaha. Voting is thru October 15th and we have the link up on our website where you can vote at www.randysgranola.com or vote directly at Mutual of Omaha’s website: http://www.ahamoment.com/pg/voting/?momentSeed=1254958506&offset=20

This is an amazing opportunity for our growing company to have major reach on a national level and we need your support. Please vote, share this, and encourage others to vote. We can only do this with your help!

Here’s information on this directly from their site: “Our aha moment campaign features real people sharing their real stories. Now, YOU can choose which moments you want to see in Mutual of Omaha’s 2010 TV commercials. We selected 75 semi-finalists from our aha moment tour and you’ll have until October 15th to vote for your favorites – with the top 25 moving on to the finals. On October 19th, the final round of voting will open… and the top ten vote-getters will have their aha moments included in our 2010 TV campaign.”

We’ve also made some changes to the Randy’s Granola website, too. We now offer free shipping on all orders over $50 dollars. We recently partnered with a Michigan-based distributor to help us get our granola to stores near you! We will be creating a store locator on our website in the next month or two but are happy to say that we are now in over 40 stores across Michigan and also in NYC on the UES, too!

Yes, it’s been quite a summer and we thank YOU for the support of us and our company!

Happy Eating!
Suzanne Vier
Randy TenBrink

http://www.gvsu.edu/successstory/index.cfm?fuseaction=home.story&id=D29D3E14-B8AF-1B5B-03E897578F23A7C9

My first call of the day was from a store in Ada, Michigan inquiring about wholesale granola. It seems that a fan of Randy’s Granola walked in to thier store wanting to know if they carried it! Wow! Good news travels fast! So the owner called me to find out more about us. Her samples are in the mail TODAY! Fingers crossed that she likes it as much as her customers!

Randy spent most of the day in the kitchen while I spent most of the day working on our marketing for our launch party in Grand Rapids this Sunday! We were the dynamic duo again!

And a side note: GO RED WINGS!