Listening to customers and giving them what they want are recipes for success at Carmen Creek Gourmet Meats.
“Provide what they want, not what you want to produce,” said Dean Andres, who manages about 1,500 head of bison on his land and in a feedlot at Windthorst, Sask. He is Carmen Creek’s director of sales and marketing.
Husband and wife team Pieter Spinder and Kelly Long started the company three years ago, with Andres joining later as a minority shareholder.
All three were bison producers with similar goals and interests, with Spinder’s ranch at Peace River and Andres’ outside Edmonton. Spinder recently moved his herd closer to Calgary to be near a slaughter plant and the company’s head office.
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Andres relocated to his home town at Windthorst, Sask., a half-day’s drive from a North Dakota bison processor.
He said their buyers, which include the large American organic retailer Whole Foods, want consistency, quality, good packaging and customer service, the cornerstones of Carmen Creek’s business plan.
Bison companies previously shipped whatever was slaughtered on a given day, which often was a variety of carcass weights and quality.
By contrast, Carmen Creek sorts about 50 same-sized animals for slaughter each week, chosen from selected producers’ herds. Working with producers allows the company to ensure the animals are finished to its standard, said Andres.
“If you want a premium price, you need a premium product,” he said.
Their products include everything from tenderloins to rib eyes to hamburger. About 70 percent of sales are in the United States, with the remainder in Canada and Europe.
Spinder, a former business person in Holland who speaks several languages, handles much of the European business while Andres visits meat buyers in the U.S. for regular feedback. Long works in administration, sales and marketing.
Andres noted the importance of accessing different markets to make use of the whole carcass. Tenderloin prices are highest in Canada. The U.S. likes strip loins and rib eyes as does Europe, which also buys the hip and chuck cuts for steaks and dicing.
“You really need access to the three markets to maximize the value of the carcass,” said Andres.
A glut of animals on the market in late fall hurts business and drives down prices, leading to shortages for products in January until younger ones are available again in May.
Many producers scramble to sell their calves or to dump animals approaching 30 months of age, beyond which they are no longer exportable because of BSE restrictions.
Producers can get $1.75 a pound on a 600 lb. animal younger than 30 months, but only $1 for ones older than 30 months.
“That’s a $400 difference to producers and economically pretty devastating,” said Andres, who advises bison producers to commit their animals to one company.
“At least marketers know what they have to market and won’t dump and ruin it for everybody.”
BSE and closed international borders slowed growth for Carmen Creek.
Other challenges have centred on packaging to get maximum store shelf appeal in various marketplaces.
Long, who is Carmen Creek’s president, said the trio spent $10,000 on professional photography for the boxes.
“You need a box that stands out,” she said, noting their packaging needs to sell the company’s attributes.
Long said it serves the company well in European markets to incorporate images of Canada, like mountains and cowboys, into the packaging.
“We’re selling a natural, clean, wholesome product,” said Long, who regularly draws on her past career as western Canadian regional account manager for Harley Davidson motorcycles.
“That was absolutely invaluable to what I’m doing now,” she said.
As a strong promoter of bison, she finds it easy to talk about and market the health benefits of the meat, but said it is sometimes difficult “getting people to taste it.”
Their ace is a worldwide movement toward healthier eating.
“There’s a definite move toward healthy natural red meat alternatives,” she said.
Such trends, timing and luck have also played a role in their success.
When Whole Foods lost its bison supplier, the meat buyer stumbled across Carmen Creek and Spinder’s name during an internet search. He recognized Spinder’s name from their shared home town in Holland.
Amy Hopfensperger of Whole Foods Market said the company deals with smaller producers like Carmen Creek because they care about the meat they produce.
“They have worked with us for more than two years and are very flexible to ensure we receive the fresh meat exactly the way our shoppers want it and we appreciate their commitment to quality,” she said.
Whole Foods is one of the largest retailers of naturally produced meats, free of hormones, steroid and antibiotics.
Unfortunately Whole Foods was unable to receive an order before the border closed to Carmen Creek, but contacted it again when it re-opened. The bison company tripled its sales to Whole Foods in six months.
The early days were lean for Long and Spinder’s self-financed enterprise, which sold the equivalent of 100 head in its first year.
Sales have increased to $3 million this year, but the expenses continue to rise for package designs to meet Canadian Food Inspection Agency standards or for specific marketplaces.
The partners travel regularly to meet with customers, do food samplings in stores and talk with buyers, spending $5,000 in demonstrations and brochures and $3,500 in annual audit fees necessary to do business with Whole Foods.
The association with Whole Foods and its reputation for high standards has paid dividends in attracting other buyers.
The bison company also received the Bennett Jones emerging enterprise of the year award from the Calgary Chamber of Commerce, which has generated orders from Calgary restaurants this fall.
Andres called the meat business an emotional roller coaster and credited his partners’ commitment with helping them get through the challenges of the highly volatile, competitive meat business.
“It does take a lot of effort and cost before you make a sale,” he said.
Long called the team a three-legged stool, with each partner supporting the business.
She is optimistic about Carmen Creek’s future and its potential to add products like elk meat.
“If we keep doing what we’re doing, we might get plowed over. We have to stay on top of it, be innovative and persistent,” said Long. “Persistence is how we got this far.”
Spinder said bison has a bright future.
“It’s the meat of the past but it’s also the meat of the future,” he said.
The partners have invested at least $5 million in the company, which is expected to become profitable by 2006. The ultimate goal is to increase the number of bison slaughtered each week to 100 from the current 50 and offer a per pound premium to their producer suppliers.
