In the City of Brotherly Love, the wholesale produce industry has deep historic roots but is embracing the future through diversity and expansion. Find out how those on the Philadelphia Wholesale Produce Market (PWPM) are charged up about the city’s evolution and the impact it’s causing.
“You’ll find a city alive like never before,” touts Tom Kovacevich, general manager for T.M. Kovacevich. “The restaurant scene feeds a vibrant residential and business climate, and the region is fortunate to be dissected by the Delaware River and its expanding port industry.”
The city itself, Kovacevich enthuses, “has a growing regional population of six million and business community doing over $400 billion in revenue. Other primary drivers of our local economy are the healthcare, technology, energy, finance, education, and communications industries.”
Communication plays a role in securing more international sales for the City of Brotherly Love. In this instance, the Philadelphia Regional Port Authority underwent a name change recently, when it was officially rebranded as PhilaPort. The moniker may be shorter but the port of entry’s reach is poised for considerable growth on a newly expanded 1,000-acre site.
As the most rapidly growing distribution region in the Northeast, PhilaPort serves over 41 million people within 150 miles, and is considered one of the wealthiest consumer markets in the world.
The port will expand through 2020, doubling container capacity and improving import-export efficiency— including a deep dredge project on the Delaware River to accommodate larger ships—thanks to nearly $1 billion in public and private investment.
Let’s walk the market’s docks to see how suppliers are keeping up with demand, launching new products and services, and carving niches to prosper in the Philly produce industry.
Answering the Call
Similar to many U.S. cities, the Philadelphia metropolitan area is a melting pot of ethnicities that continue to drive change at both the wholesale and retail levels.
Serving Hispanic, Korean, Chinese, Vietnamese, Japanese, Indian, and Jamaican populations, Mark Levin of M. Levin & Company, Inc. cites the diversity of the market as one of the reasons it stays so exciting. The longtime wholesaler’s product line has changed significantly over the years with plenty of once-foreign items growing into popular mainstays.
In addition to the substantial growth of the Hispanic segment, Levin cites both the Asian and Indian markets commanding a rising portion of his business.
From roots like yuca and yama to bitter melon and turmeric, “we carry things that five to ten years ago we may never have even heard of,” he shares.
In the City of Brotherly Love, the wholesale produce industry has deep historic roots but is embracing the future through diversity and expansion. Find out how those on the Philadelphia Wholesale Produce Market (PWPM) are charged up about the city’s evolution and the impact it’s causing.
“You’ll find a city alive like never before,” touts Tom Kovacevich, general manager for T.M. Kovacevich. “The restaurant scene feeds a vibrant residential and business climate, and the region is fortunate to be dissected by the Delaware River and its expanding port industry.”
The city itself, Kovacevich enthuses, “has a growing regional population of six million and business community doing over $400 billion in revenue. Other primary drivers of our local economy are the healthcare, technology, energy, finance, education, and communications industries.”
Communication plays a role in securing more international sales for the City of Brotherly Love. In this instance, the Philadelphia Regional Port Authority underwent a name change recently, when it was officially rebranded as PhilaPort. The moniker may be shorter but the port of entry’s reach is poised for considerable growth on a newly expanded 1,000-acre site.
As the most rapidly growing distribution region in the Northeast, PhilaPort serves over 41 million people within 150 miles, and is considered one of the wealthiest consumer markets in the world.
The port will expand through 2020, doubling container capacity and improving import-export efficiency— including a deep dredge project on the Delaware River to accommodate larger ships—thanks to nearly $1 billion in public and private investment.
Let’s walk the market’s docks to see how suppliers are keeping up with demand, launching new products and services, and carving niches to prosper in the Philly produce industry.
Answering the Call
Similar to many U.S. cities, the Philadelphia metropolitan area is a melting pot of ethnicities that continue to drive change at both the wholesale and retail levels.
Serving Hispanic, Korean, Chinese, Vietnamese, Japanese, Indian, and Jamaican populations, Mark Levin of M. Levin & Company, Inc. cites the diversity of the market as one of the reasons it stays so exciting. The longtime wholesaler’s product line has changed significantly over the years with plenty of once-foreign items growing into popular mainstays.
In addition to the substantial growth of the Hispanic segment, Levin cites both the Asian and Indian markets commanding a rising portion of his business.
From roots like yuca and yama to bitter melon and turmeric, “we carry things that five to ten years ago we may never have even heard of,” he shares.
Paterson Produce, a newcomer to the Philly facility since December of last year, has hustled to quickly carve a niche for itself on the market. “We are unique in what we carry,” comments office manager Chris Hoffman, of the company’s extensive line of Central and South American fruits and vegetables.
Among the supplier’s more exotic offerings are banana leaves, chayote, malanga blanca, yellow and white name, cactus leaves, cactus pears, culantro (Mexican parsley) and yuca or cassava, which are interspersed with more common items such as peppers, radishes, lemons, and limes.
Hoffman says the company’s success lies in Philadelphia’s “diverse interests, restaurants, and supermarkets” and the experience and connections of general manager Jay Betancourt. Betancourt has extensive knowledge of the Latin American community from working in Miami, which has helped propel sales of Paterson’s specialty produce.
Thriving Import/Export Scene
Levin has seen the quantity of imports increase dramatically since the market’s reopening, particularly with the additional space.
“It’s an advantage to look for new items and listen closely to different cultures for what they want to see, but can’t find,” Levin explains. He’s seen staple items such as bananas, apples, potatoes, onions, and tropicals increase, in addition to niche Indian items and Jamaican produce.
Customer demand drives the new items that John Vena, Inc. continues to add to its import line, which has been a mainstay of the business for over 30 years. “Our customer base is hugely diversified across all ethnic and cultural segments, and they use a wide variety of fresh produce,” comments John Vena, company president.
“The volume on these items really picks up when we’re able to find consistent, steady suppliers,” Vena continues. A recent example is dragon fruit, which was a low-volume seasonal item until the company developed strong connections to Vietnam for imports and Florida for domestic supply. Since then, the program has seen steady volume and growth.
John Vena, Inc. also sources year-round from greenhouses in Belgium, Canada, Israel, and the Netherlands, for varieties of hot and sweet peppers, tomatoes, cucumbers, and fresh herbs. Although “some of our overseas partners have changed,” explains Vena, “the item list and countries with which we work have increased wonderfully.”
On the export side, T.M. Kovacevich’s Bermuda distribution has been humming along for two years, and continues to see solid growth. Shipments to Puerto Rico remain level, and Kovacevich says his customers there appreciate both the wide selection and quality of produce offerings available from the market.
Expansion
Growth at the PWPM, by all accounts, has been phenomenal. The oldest tenant on the Philly market, M. Levin & Company, Inc., has been going strong for 111 years and is still family owned and operated. The wholesaler recently purchased two more units and put in a new ripening facility to allow for another 400 pounds of mangos, avocados, and bananas.
In terms of sales, technology, and overall growth, the company is “steadily going uphill” according to Levin. “As far as the cold chain goes,” he adds, “we couldn’t ask for anything better.”
Preferred Fruits & Vegetables Like many states, the Pennsylvania Department of Agriculture supports a locally grown marketing program. Launched in 2003 and signed into law in 2011, the ‘PA Preferred’ initiative helps buyers and consumers identify food and agricultural items grown or processed within the state of Pennsylvania by adorning them with a bright blue and yellow logo.
Over 1,500 producers are currently licensed in the state to use the PA Preferred logo. From individual commodities to packaging and signage, the PA Preferred logo can be found at hundreds of farmers’ markets and roadside stands, as well as grocery stores, restaurants, and many types of foodservice businesses throughout the state’s 67 counties.
Produce grown in the Keystone State ranges from blueberries, cherries, grapes, peaches, pears, and raspberries to beets, cauliflower, eggplant, mushrooms, peppers, and tomatoes.
Mushrooms continue to be the state’s top produce-related crop in terms of value and volume, and is one of three crops available year-round (the other two are apples and lettuce).
Commodities with the shortest window of local availability include grapes (only September); blackberries (August); strawberries (June); tart cherries (July); sweet cherries (June-July); peas (May-June); and blueberries, nectarines, plums, and sweet potatoes (August-September).
Kovacevich agrees; his namesake company has also expanded significantly, doubling its workforce and increasing space from four to nine units with a capacity of over 100 truckloads. And although the company’s team of 12 buyers can sell anything, each “focuses on a relatively small set of items, so they can be most adept at answering the particular needs of each customer,” he says.
With the retirement of the receiver’s “watermelon legend,” Marty Strulson, third generation produce protégé Ry Manos stepped up to the “challenge and responsibility of buying and selling” the succulent fruit, after several years of what Kovacevich terms “learning the tumultuous business of trading watermelons.”
John Vena, Inc. recently welcomed new staff members, with Joe Gallagher as CFO, who Vena says “has made a definite impact in our ability to manage our business.” Nora Schmidt joined the team as food safety and quality assurance manager, adding a science background to the packaging department. Emily Kohlhas also received a promotion to director of marketing.
Produce Rescue
Although a number of area businesses have worked with Philabundance (a local food procurement organization dedicated to feeding the hungry) over the years, the PWPM has recently upped its donations.
A weekly pilot program to shift more of the terminal market’s landfill-bound produce to the group was launched, with Philabundance volunteers sorting through produce to find salvageable fruits and vegetables.
Philadelphia Wholesale Produce Market Merchant Listing & Phone Numbers
A. Vassallo, Inc. (215) 336-1984 B.R.S. Produce Company (215) 336-5454 Collotti & Sons, Inc. (215) 389-3335 Colonial Produce, Inc. (215) 748-6650 Coosemans Philadelphia, Inc. (215) 334-3634 E.W. Kean Company, Inc. (215) 336-2321 G & G Produce, Inc. (215) 336-9922 Hunter Bros., Inc. (215) 336-4343 John Vena, Inc. (215) 336-0766 Kaleck Brothers, Inc. (215) 336-3027 Klinghoffer Bros., Inc. (215) 336-3800 M. Levin & Company, Inc. (215) 336-2900 Nardella, Inc. (215) 336-1558 North American Produce Company (215) 525-6444 Paterson Produce (215) 330-4020 Paul Giordano & Sons, Inc. (215) 755-7900 Pinto Bros., Inc. (215) 336-3015 Procacci Bros. Sales Corp. (215) 334-1400 Produce Interchange (215) 389-1782 Ryeco, LLC (215) 551-8883 T. M. Kovacevich (215) 336-3160 Wick & Brother, Inc. (215) 336-2252
With the PWPM’s recycling room as a staging area, volunteers can claim or ‘rescue’ still edible produce that can’t be sold to retailers or restaurants, but can be repurposed to help feed area residents through more than 350 local food pantries. Merchants are happy to reduce waste and see imperfect items go to families in need, and Philabundance is more than willing to be the market’s conduit.
Keeping Pace
Despite strong sales and plenty of room for growth, there have been a few bumps in the road.
Vena says keeping up with necessary changes to infrastructure, staff, and equipment has been challenging. Due to the sensational speed of technology, he believes the process is one of adaptability and resilience.
“The kind of work we do for our customers is highly specialized and changes from week to week, so we need equipment that is flexible and adaptable,” explains Vena, adding, “Even the design of our newest packaging equipment requires a surprising new skill set and training levels.”
A different spin on packaging comes from a grower-shipper located in Enon Valley, hours from the market and its merchants in eastern Pennsylvania.
FRESH FORUM How does your business this year compare to last year?
Mark Levin, M. Levin & Company, Inc.
I see continued growth and interest in this market, and anticipate needing another one to two units to keep expanding our product line, to make sure customers get what they need.
John Vena, John Vena, Inc.
We’ve continued to grow across all departments. But we see so much opportunity, it’s kind of distracting. One of our goals for the coming months is to narrow our focus, just a bit, and to push resources into those activities that will bring the most success and still keep the needs of our customers in mind.
Tom Kovacevich, T.M. Kovacevich
We’ve expanded significantly since the move. We’re a 24-hour order picking operation with over 90 employees united with the primary focus on customer satisfaction. This TMK team is the reason the company has been able to grow; these dedicated individuals help each other and care for our suppliers and customers every day.
Chris Hoffman, Paterson Produce
We’re only months old and have seen tremendous growth due to the fact that we’re pretty unique in what we carry, which has given us a niche in the market.
Carolyn McQuiston, Dawsons Orchards, Inc.
Due to food safety regulations, I don’t consider adding anything different than what we already deal with. We’re installing a new packing line, mainly because of food safety—it’s a sizable investment for us.
Dawsons Orchards, Inc. grows apples, berries, and stone fruit and has been looking to expand sales with a new single-serve apple bag for convenience stores and airports, replacing individual fruit wrapped in plastic.
Carolyn McQuiston, company president, says the packaging is a “food safety solution, as many hands pass by the apples on display at convenience stores, which are meant to be eaten soon after purchase without being washed.”
The bag not only protects the fruit but provides grab-and-go convenience for busy shoppers. Better yet, the bag has room for logos and other consumer oriented information. For Dawsons, “We feel this is a way to diversify and stay in the game,” McQuiston says.
Although the new packaging is a step forward, getting it into retail chains and consumers’ shopping carts has proven a bit more difficult than planned. “Because we’re a smaller packer, we aren’t in the loop to package the club varieties, nor grow them,” she explains. Nevertheless, McQuiston is hopeful about the bag and its potential.
Providing information to customers is also a top priority for Vena, so keeping the company’s “website and social media outreach fresh and appealing” helps accomplish this goal. “In our segment of the industry, competition is fierce. Our plan is to continue to add the tools and people we need to stay ahead of the other folks,” he says.
New Kid on the Block
For Paterson Produce, which originally began as a pickle supplier in New Jersey, the company’s actual introduction to the Philly market this past winter was the biggest hurdle. “People come in with loyalty, ready to buy with specific people, and we didn’t have that,” admits Hoffman.
It took some time for the six employee company to get its footing; nevertheless Paterson Produce managed to bring in over $2 million in sales in its first six months.
Although the PWPM is working diligently to keep pace with new technology, Hoffman does see room for improvement. “We’re lagging behind the rest of commercial ventures in the use of technology,” he says, because businesses on the market still print tickets. Hoffman hopes this will eventually move to a paperless ordering or scanning system.
Hoffman has also noticed the shift of some businesses moving away from large wholesale markets to more customized space. After the wholesale market in South Philly burned down 10 years ago, a number of tenants chose to “get their own warehouses or purchasing departments as opposed to renting space” on the new market, he says.
Rain, Hail, Sleet & Snow
Every year, Pennsylvania residents experience a broad range of temperature fluctuations and inclement weather. Though last winter’s snowstorms weren’t among the record-breakers (like January 1996’s 31 inches over a two-day period) and there were a few spring freezes that worried growers, 2017 has been mostly catastrophe-free for Philadelphians.
Dawsons Orchards, however, did experience plenty of fluctuations in Enon Valley, part of Lawrence County, near the state line of Ohio. “There was an early warm up this season, affected by a hard frost in mid-May, and hail in early June,” says McQuiston. But despite Mother Nature’s unpredictability, she says this season’s berries, apples, pears, and peaches all looked good.
At the PWPM, the elements can certainly impact the outside world, including the highways and rails and trucks trying to get in and out of the market, but not inside—the cold chain is cold and the merchants are cool as cucumbers.
Kovacevich confirms merchants enjoy the many benefits of the six-year-old “new” facility, but says customers sing the market’s praises too. Loading and unloading are a snap, protected from the weather, and then there’s “the ever-expanding variety of quality offerings [that] make the whole experience a dream compared to the older open-air terminal market of Galloway Street.”
Future Outlook
As growth for the PWPM continues to outpace expectations, merchants look to the future with excitement and a bit of trepidation. “If anything, I’m afraid we could outgrow the market and space,” confesses Levin. “There was a time when we were concerned if we could keep this place filled.”
For many of the market’s longtime merchants, second, third, and fourth generation family members are preparing to run the businesses. “They’re chomping at the bit for the challenge,” remarks Levin, as M. Levin & Company’s all-female fourth generation comes on board.
For McQuiston at Dawsons Orchards, the second generation is already firmly in place, helping shape decisions and to keep the grower-shipper on the cutting edge of the fresh produce industry.
