Chicago’s history of blue collar, salt-of-the-earth immigrants building skyscrapers and ethnically-based neighborhoods with names like Bucktown, Old Town, and even Hardscrabble (later renamed Bridgeport) reflect the town’s reputation for toughness and tenacity with a sentimental connection to its roots.
Steeped in history and tradition, what began as a town of 350 people in 1833 eventually grew into what was nicknamed the country’s “Second City” (after New York) on the southern shore of Lake Michigan and home to roughly 3 million people. Outward growth continues unabated, expanding well into the area known as Chicagoland—named for the six counties that surround the city and include 65 percent of Illinois’ population of nearly 13 million.
It’s not surprising then that the Chicago International Produce Market (CIPM) reflects the city’s values. Nestled among the Pilsen, McKinley Park, and Bridgeport neighborhoods, the market is surrounded by a mix of working class families, artists’ studios, college students, medical facilities, and manufacturing plants—a little bit of everything. The same can be said of the terminal market’s merchants, with “old timer” industry veterans working alongside fourth or fifth generation novices.
Changing with the Times, Remembering the Past
While Chicago has hosted a terminal market for over a century, the location has changed twice. The longest running spot was the South Water Market that existed from the mid-1920s until 2002 when the market and most of its tenants moved to the current location at 2404 S. Wolcott Avenue, minutes from downtown Chicago. Tim Fleming Jr., vice president of Strube Celery & Vegetable Company, is part of the only family enterprise that has been at all three Chicago terminals.
Since it was considered a historical landmark, the old South Water Market was renovated into a loft apartment complex called University Commons. Jason Gonzalez, transportation manager for J. L. Gonzalez Produce, Inc. says it wasn’t just Chicago historians who were sentimental about the former market’s building. “It’s very cool and nostalgic for some of the guys who used to do business down there,”he notes, saying a few even bought condominiums in the renovated building.
The current market’s official hours are weekdays from 8:00 a.m. to noon, though, in general, many businesses make their own hours—starting as early at 3:30 a.m. to accommodate customers and some opening for limited hours on weekends. As a wholesale only operation, the CIPM’s customers, according to Gonzalez, tend to be “restaurants, independent store owners, retailers, chains…even churches and food depositories.” The market is open year-round, only closing for six major holidays.
With Midway Airport nearby and the vast O’Hare International Airport about a half-hour to the northwest, air transport is easy to arrange. Shipment to and from the market comes exclusively via truck and most product is shipped over land, taking advantage of the city’s location in the heart of the country and not far from Canada.
Chicago’s history of blue collar, salt-of-the-earth immigrants building skyscrapers and ethnically-based neighborhoods with names like Bucktown, Old Town, and even Hardscrabble (later renamed Bridgeport) reflect the town’s reputation for toughness and tenacity with a sentimental connection to its roots.
Steeped in history and tradition, what began as a town of 350 people in 1833 eventually grew into what was nicknamed the country’s “Second City” (after New York) on the southern shore of Lake Michigan and home to roughly 3 million people. Outward growth continues unabated, expanding well into the area known as Chicagoland—named for the six counties that surround the city and include 65 percent of Illinois’ population of nearly 13 million.
It’s not surprising then that the Chicago International Produce Market (CIPM) reflects the city’s values. Nestled among the Pilsen, McKinley Park, and Bridgeport neighborhoods, the market is surrounded by a mix of working class families, artists’ studios, college students, medical facilities, and manufacturing plants—a little bit of everything. The same can be said of the terminal market’s merchants, with “old timer” industry veterans working alongside fourth or fifth generation novices.
Changing with the Times, Remembering the Past
While Chicago has hosted a terminal market for over a century, the location has changed twice. The longest running spot was the South Water Market that existed from the mid-1920s until 2002 when the market and most of its tenants moved to the current location at 2404 S. Wolcott Avenue, minutes from downtown Chicago. Tim Fleming Jr., vice president of Strube Celery & Vegetable Company, is part of the only family enterprise that has been at all three Chicago terminals.
Since it was considered a historical landmark, the old South Water Market was renovated into a loft apartment complex called University Commons. Jason Gonzalez, transportation manager for J. L. Gonzalez Produce, Inc. says it wasn’t just Chicago historians who were sentimental about the former market’s building. “It’s very cool and nostalgic for some of the guys who used to do business down there,”he notes, saying a few even bought condominiums in the renovated building.
The current market’s official hours are weekdays from 8:00 a.m. to noon, though, in general, many businesses make their own hours—starting as early at 3:30 a.m. to accommodate customers and some opening for limited hours on weekends. As a wholesale only operation, the CIPM’s customers, according to Gonzalez, tend to be “restaurants, independent store owners, retailers, chains…even churches and food depositories.” The market is open year-round, only closing for six major holidays.
With Midway Airport nearby and the vast O’Hare International Airport about a half-hour to the northwest, air transport is easy to arrange. Shipment to and from the market comes exclusively via truck and most product is shipped over land, taking advantage of the city’s location in the heart of the country and not far from Canada.
“It’s easier to get in and out of,” commented Brent Schmit, president of Elburn, IL-based Eclipse Dist., Inc. “The old market was set up for horse and buggies. Now they can handle 53-foot trailers, and trucks have a lot of room to maneuver.”
Outfitted for modern information systems as well as state-of-the-art produce technology, the facility supports ripening rooms, custom repacking, packaging, and private label programs as well as full truckload service, forward distribution, cross docking, and fast delivery throughout the vast Chicagoland area.
While Chicago resides on the second-largest Great Lake and is intersected by the Chicago River, produce is not shipped via these waterways. Though the river was used for shipping in the distant past, its barges move mostly coal, scrap, building materials and occasionally grain, but it gets far more recreational use. Lake Michigan is certainly a shipping route, but it is much faster to move produce over the country’s many expressways than over the often unpredictable lake.
Location, Location, Population
The market’s physical location in the center of North America puts it at an advantage, but Jose Vega Jr., owner of La Galera Produce, based on the market, says it’s the people in the city that keep the CIPM thriving. “Chicago is good because of its diversity,” he says. “It’s perfect to be on the market; you’re where all the action is. I would never go somewhere else.”
“We handle a majority of the Midwest,” Gonzalez explained. “Clients come from as far as Nebraska, Iowa, Ohio—Chicago is a central hub for everything. You have the flexibility of picking everything up in one morning.”
The ‘shoulder-to-shoulder’ competition and the CIPM’s incessant hustle and bustle serves both customers and sellers. The market, casually referred to as ‘the Street’ by its merchants, is a bona fide fixture in the fresh fruit and vegetable trade. “Other produce wholesalers who aren’t on the Street, they miss that vibe,” Fleming says. “There’s a definite ebb and flow” where customers “have the ability to get posted on what this guy is doing on lettuce, what this guy is doing on broccoli…”
When it was determined that the market had to relocate from its Water Street facility, Fleming remembered his father (Robert Strube, Sr., son of the company’s founder Fred Strube) getting owners together to commit to moving to a new market. “We had to find a way to all come together and realize that we do feed off each other, [having] ten different satellite companies all over the city wouldn’t be good for anyone.”
Changes and Challenges
While weather-related issues have been a factor for many at the market, the slow economic recovery, increased competition, and fuel costs have played a significant role in creating challenges. Many at the market were cautiously optimistic most of last year, as business was recovering and they hoped it would continue. “It’s not as good as we thought it was going to be,” Vega admitted. “It has been changing a little bit, it hasn’t dropped much. It’s still steady.”
Gonzalez finds the important thing is to make sure prices are very competitive, particularly in the summer months. He says the CIPM “has its moments where we’re rocking and rolling, and other times it’s like ‘how are we going to keep the doors open?’” Gonzalez has been in the industry for six years, and has heard ‘the sky is falling’ many times. The recent economic turmoil, however, has certainly had an impact, with even food banks struggling because every case counts for merchants. “If you can’t sell it for what you’re asking, [you] sell it for less before giving it away.”
On the transportation side, business is still pretty tough. “We haven’t come back up from the last couple of years,” Schmit commented. “It has been steady, not an overabundance. A lot of it has to do with [few] people keeping product in their warehouse. They’re ordering ‘per order.’ Before, they’d take a full load and keep it in-house for a while.”
Of course, for trucking companies, fuel is an enormous obstacle and the cost must be passed on to customers. “Rates haven’t come down because fuel prices have not dropped,” Schmit said. “You’re not going to see any of the lower rates like you saw two or three years ago.” Gonzalez agrees it has gotten tougher every year for carriers. “To do it the legal way, with insurance, payments on time, one claim can put a whole carrier underwater. In this industry, it’s definitely a giant rollercoaster.”
And the ride can be even bumpier when trying to win new customers in a tight economy. On the upside, loyal customers are often what keep a business afloat. “We have a great customer base,” Schmit says. “It’s easier for us to stick with our regular guys. It’s better to take care of the customers you have.”
Another big change is managing how merchants do business on the market. Even those who have been in the industry for generations have had to change the way they operate to stay competitive. Gonzalez explained that in the past, “each warehouse specialized in one thing—just tomatoes, just bananas, etc.” Now most merchants carry many items. Vega too sees more businesses trying to “be a full-line house of everything so they can try to pick up more business.” These changes also apply to tropical fruits or vegetables many may not have carried in the past, such as mangos from Ecuador, Guatemala, Puerto Rico, and Brazil. Fewer sellers and tighter supplies equaled higher profits; but today’s increased availability means lower prices and more competition.
Nick Gaglione, president of Dietz & Kolodenko Company, Inc., sees at least one positive change from the tough times of the last few years: the rise of the independents. “The independent stores are making a big impact,” he remarked. Though some have been around for years, like Tony’s Finer Foods, or Pete’s Fresh Market—which began as a produce stand on the Southside of Chicago and now boasts nine locations throughout Chicagoland—Gaglione says local stores like these “are able to pinpoint individual needs for their community—Hispanic, Asian, Irish. They put [product] in their stores that people are looking for… and they’re down here [at the Chicago market] buying every day.”
Looking Ahead
While times have been tough, merchants are optimistic about the future. “Chicago seems pretty vibrant,” Fleming says. “We had a good Thanksgiving business, a good Christmas business. We get a lot of opportunities that we can pass on to our customers.”
Coming up, Vega sees people trending toward organics and products certified for food safety. He is confident the market’s sellers can provide what customers need.
The Chicago International Produce Market is many things to many people, and is certainly a unique part of the Windy City’s history and future. “You have your old-school guys,” says Schmit, “who were there from a long time ago, and you have the newer generations. It’s neat to see the different ways they communicate.” Gonzalez agrees, saying the produce business is “in the blood!”
