|| Print ||
|Articles - January 2010|
|Thursday, December 17, 2009|
It says something about a place when almost 1 million people a year make a pilgrimage to a cheese factory. Yes, the Tillamook County Creamery Association produces more than that, but this house was built on the rock of cheddar 100 years ago and it’s not moving.
A wise CEO does not mess with this kind of thing lightly.
So it would seem that Harold Strunk is well suited for the job: low-key, Midwestern unflashy, with a famous cow in his past. He has spent more than 20 years in marketing and sales in the dairy products industry, including 12 years at Borden in Columbus, Ohio, home of the Eagle Brand Sweetened Condensed Milk and the iconic Elsie the Borden cow. Borden no longer exists and Elsie’s likeness is now licensed to various companies such as Smuckers. “There was no discipline or planning,” says Strunk in explaining the demise of the company, which was at one time the largest producer of dairy products in the U.S. It’s a mistake he will not make at Tillamook. “We are very focused on cheddar cheese.”
Since he arrived two years ago, Strunk has been upgrading business systems and infrastructure so TCCA can compete on the customer service front and be positioned for controlled growth. That growth will stay focused on the core dairy products. “There is not a lot of product innovation at Tillamook,” he says. “It’s a risky proposition.” In 2000, TCAA built a new 85,000-square-foot cheese-making plant in Boardman, and then expanded it again in 2006 to 150,000 square feet, which increased TCCA’s total output by 50%.
“I think it can be a billion-dollar company,” says Strunk. “It’s that strong a brand. It’s one of the truly differentiated products I’ve worked on in my career … This reminds me a lot of Coors beer in the 1970s. There’s a buzz about it back East. There’s a mystique, and zealots.
“One of the biggest things I learned at Borden was the emotional connection to Eagle Brand Sweetened Condensed Milk. It’s the same thing people in the Northwest have — an emotional connection to this cheese. We ran out of sharp earlier this year and there was such an outcry.”
TCCA is a farmer-owned cooperative that is publicly traded and privately held, and also a packaged-goods company. It’s a unique challenge when the suppliers are the owners.
“One different side of [this job] is how to keep the farmers healthy. We try to pay the most for milk, not the least.” TCCA used to lock in the milk price it paid to the co-op farmers for a whole year. Strunk changed that to quarterly, then to monthly pricing.
“How do you grow a co-op based product? There is tension all the time,” Strunk says. “The farmers are interested in their milk supply. What does their milk check look like? I’m trying to get them to understand that they are investors in a company that should grow.” There is also tension around whether to build equity or get a payout.
“The dynamic with the farmers has been really different for me. The idea of keeping your farmers whole has been very difficult. Every farm situation is different. You don’t know what the break-even point is for them.”
Tillamook cheese is a product that takes time to make and age, and pricing needs to be premium, but not too high, says Strunk. Finding that sweet spot on pricing to help manage the margins is where Strunk feels he brings expertise. Still, farmers call him all the time and want to know why he doesn’t charge more for the cheese.
Part of Strunk’s strategy is to keep the emotional connection strong. But being beloved in the Northwest doesn’t mean you can rest on your curds.
The company has invested heavily in social media, notably piling up more than 25,000 fans on its Facebook page. It also will launch this month the Loaf Love tour (“Put a little loaf in your heart”) and a new spokecheese: Loafy, a two-pound Tillamook cheddar loaf. The two-pounder, incredibly, does not exist on the East Coast. “We need people to taste us,” Strunk says. “Then they’ll fall in love.” The tour starts in Tucson and will travel around the country with VW buses reshaped as cheese loafs in tow. It will give Tillamook a chance to tell its story.
“If you don’t go directly to the consumers,” says Strunk, “you put your brand in the hands of the retailers.” He wouldn’t say what markets he might be targeting, but believes “There is cheddar potential everywhere.”
The next question is inevitable. In a Loafy vs. Elsie smackdown, who wins? Strunk quickly considers and decides it would be cow over cheese now, but one day, “I would like Loafy to be as big as Elsie.”
Wednesday, May 27, 2015
BY LINDA BAKER | EDITOR
More than 250 people turned out today for Oregon Business magazine’s seventh annual celebration of the 100 Best Green Companies to Work For in Oregon.
Tuesday, May 26, 2015
BY JACOB PALMER
Live, Work, Play: CEO of Gorilla Capital.
Friday, May 22, 2015
BY AMY MILSHTEIN
Floor plans embrace the great wide open.
Friday, May 22, 2015
BY JACOB PALMER
Mike Morrow and Mike Delos-Reyes first came up with the idea of an ocean power device 23 years ago, when they were students at Oregon State University. They realized a long-held vision last summer, when their startup, M3 Wave, successfully launched the first ocean power device that works underwater.
Monday, April 27, 2015
BY JACOB PALMER
As a general rule, the more people with autism can be provided with visual cues, the better they will be able to understand and manage their environment. It’s a lesson Tom Keating learned well. The 61-year-old Eugene grant writer spent 31 years taking care of his autistic brother James, and in the late 1980s developed a spreadsheet that created a series of nonsense characters that grew or shrank depending on how much money James had in his account.
Friday, April 17, 2015
PHOTOS BY JASON E. KAPLAN
The 32nd annual CBC attracted a record number of attendees (11,000) to the Oregon Convention Center.
Friday, May 22, 2015
BY KIM MOORE
As momentum grows at the state level to introduce far-reaching environmental regulations, such as carbon pricing and the Clean Fuels Program, Oregon employers continue to go the extra mile to create green workplaces for their employees.
|100 Best Green Workplaces in Oregon|
|The Green Paradox|
|Up in the Air|
|Queen of Resilience|
|Report says Intel, Altera deal near|
|DEQ fines Tillamook creamery|
|Pranksters discover iPhone text glitch that shuts down your phone|
|Google: We created $939M in Oregon economic activity last year|
|Information of more than 100K taxpayers breached|
|Media CEOs majority of top-10 highest paid|
|Two protesters chain themselves to Shell ship outside of Bellingham|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
Sussman Shank LLP served as lead counsel for both the sale of 9 assisted living, memory care, and independent living campuses in Washington, Oregon, and California to a publicly-traded REIT, and the acquisition of 11 single-tenant net lease properties. This transaction was unique because it included both the sale of licensed senior housing facilities and a complicated 1031 tax deferred exchange transaction.
The Oregon Entrepreneurs Network (OEN) will be presenting its third annual Entrepreneurial Summit on Friday, June 5 at Castaway in Portland, Oregon.
On June 13th Mayor Charlie Hales will attend nonprofit organization Dream Change’s inaugural Love Summit and will introduce one of its keynote speakers, Dan Wieden of Wieden+Kennedy advertising agency.