Detroit continues to defy its past, surging forward with robust growth in the food and hospitality sector, including all things fresh. Demand for local and greenhouse-grown produce continues to climb—with more than 300 commodities produced in Michigan and greenhouse vegetables from nearby Leamington, Ontario.
Business has as much as tripled for some longstanding wholesalers in the industry. Join us for a tour of Detroit’s two markets to find out what’s hot and what’s not.
Accelerating Growth
“It’s definitely a new era in the city,” proclaims Anthony F. Del Bene, president of Del Bene Produce, Inc., a receiver and jobber at Detroit’s historic Eastern Market. With a dramatic rush of investment and new restaurants, shops, and arenas, the city’s turnaround has “happened quicker than I ever thought as far as transformation.”
More people, more food
Part and parcel of the ongoing rejuvenation is a surge in produce sales. “Things are popping like popcorn,” says Jack LoPiccolo, president of LoPiccolo Bros. Produce, Inc., who has seen spectacular growth, with volume rising between 15 and 25 percent. “With a flood of new restaurants opening after bankruptcy, it’s all turned around with an influx of money.”
He also mentions the former ‘brain drain’—where students from both the city and the state’s top colleges and universities were leaving the region after graduation—has slowed substantially. “Grads are now staying because there’s more opportunity,” observes LoPiccolo.
According to Detroit Regional Chamber of Commerce numbers, ‘brain drain’ does seem to be a problem of the past: since 2011 the figures have dramatically shifted from an annual loss of 10,000 graduates to a yearly gain of 7,000 residents, with Detroit’s impressive growth to thank for the boost.
“Detroit is the hub of the highway,” says George Horkey, president and owner of Roscoe & Horkey Farms, Inc. “Everything that goes to the East Coast comes through Detroit; it’s an exciting city right now.”
He’s optimistic for continued growth and also cites the prior concern over losing students: “We had been losing population, and now it looks like we’re beginning to make gains.”
Steady growth
For Dominic Russo, buying and sales director for Rocky Produce, Inc., the city’s growth has translated to comfort and confidence, which he sees as key in the whole buying and selling circle of life. “We’re able to do more and sell more when consumers are willing to go out and spend.”
Detroit continues to defy its past, surging forward with robust growth in the food and hospitality sector, including all things fresh. Demand for local and greenhouse-grown produce continues to climb—with more than 300 commodities produced in Michigan and greenhouse vegetables from nearby Leamington, Ontario.
Business has as much as tripled for some longstanding wholesalers in the industry. Join us for a tour of Detroit’s two markets to find out what’s hot and what’s not.
Accelerating Growth
“It’s definitely a new era in the city,” proclaims Anthony F. Del Bene, president of Del Bene Produce, Inc., a receiver and jobber at Detroit’s historic Eastern Market. With a dramatic rush of investment and new restaurants, shops, and arenas, the city’s turnaround has “happened quicker than I ever thought as far as transformation.”
More people, more food
Part and parcel of the ongoing rejuvenation is a surge in produce sales. “Things are popping like popcorn,” says Jack LoPiccolo, president of LoPiccolo Bros. Produce, Inc., who has seen spectacular growth, with volume rising between 15 and 25 percent. “With a flood of new restaurants opening after bankruptcy, it’s all turned around with an influx of money.”
He also mentions the former ‘brain drain’—where students from both the city and the state’s top colleges and universities were leaving the region after graduation—has slowed substantially. “Grads are now staying because there’s more opportunity,” observes LoPiccolo.
According to Detroit Regional Chamber of Commerce numbers, ‘brain drain’ does seem to be a problem of the past: since 2011 the figures have dramatically shifted from an annual loss of 10,000 graduates to a yearly gain of 7,000 residents, with Detroit’s impressive growth to thank for the boost.
“Detroit is the hub of the highway,” says George Horkey, president and owner of Roscoe & Horkey Farms, Inc. “Everything that goes to the East Coast comes through Detroit; it’s an exciting city right now.”
He’s optimistic for continued growth and also cites the prior concern over losing students: “We had been losing population, and now it looks like we’re beginning to make gains.”
Steady growth
For Dominic Russo, buying and sales director for Rocky Produce, Inc., the city’s growth has translated to comfort and confidence, which he sees as key in the whole buying and selling circle of life. “We’re able to do more and sell more when consumers are willing to go out and spend.”
Dominic Riggio, president of Riggio Distribution Company on the Detroit Produce Terminal, seconds this line of thought, citing the strength of the overall economy in 2017 and how it allowed many customers to reinvest and expand their own businesses. This not only “translates to opportunities locally for us,” Riggio notes, but this strengthened “business footprint reaches far beyond Michigan.”
Del Bene Produce, which caters to higher-end restaurants, deals predominantly in specialty produce. “A lot of chefs are guided our way when they come to town,” shares Del Bene. As a result, the region’s rejuvenation has “probably tripled our business in and around city limits because of new arenas and restaurants.”
Horkey is also riding high and extremely proud of the turnaround. “It’s the place to be—the number one city: values are increasing, things keep picking up and improving, and restaurants are thriving, so business is better.” The local grower-shipper hoped to see steady increases in earnings every month, and excitingly, that bar is reached “most of the time.”
“It’s just a great time to be at Ben B. Schwartz & Sons and to be in the produce business,” enthuses Nate Stone, in special projects for the fourth-generation company. For him, it’s all about the city’s “incredible independent retailers” that have helped the extended Schwartz family celebrate 110 years in the industry. “The idea of being in the produce business is genetically connected to this family.”
Del Bene is also part of a family-run operation and excited to share that after years of flatline growth, his company has also experienced a dramatic turnaround. “Our company has grown every month, and every month has been our best month,” he says. “It’s truly a bright spot; the second generation is in place, and we feel good that we have a future here.”
Keeping Fresh: Market Trends
Although Riggio cautions “market trends are very cyclical,” the old adage that everyone has to eat and the nation’s renewed focus on health are a great impetus to produce sales. “We sell vitamins in the form of food,” Riggio explains. “When a certain product is identified in any form of media as particularly healthy, we see an increase in sales.”
Recently, Riggio’s seen Brussels sprouts, chard, and kale continue to ride the trend. He also highlights customer movement toward more value-added options and bulk products.
For Russo, “locally grown and organically grown stand out,” as wholesalers gain traction in both categories. However, the trend of constant change is what’s most exciting. “There are always new varieties of fruit with better flavor profiles and appearance,” Russo says. “It’s such a great business to be in to explore and offer our customers and the market the same item in a different way.”
Organics
As a category, Stone sees plenty of room for growth in organics. He believes consumers are beginning to view organics differently, not just through the lens of health, but through what’s sustainable for Mother Earth.
“We don’t have to destroy the earth to grow produce,” Stone states. “We can grow organically without some of the chemicals that aren’t good for our soils or water systems, and we have the younger generations to thank for this.”
LoPiccolo, too, comments on the connection between younger shoppers and organics, saying organics currently account for 10 percent of his product line in comparison to zero just a few years ago.
Del Bene has also “dabbled in organics,” with numerous requests, but “not high enough demand to start stocking, because of short shelf-life.” He explains that organics are often only brought into the city if preordered, and many chefs do not plan far in advance. “They make decisions on the fly, so we stock what we know they’ll want.”
Specialty produce
The desire for exotic produce, from Asian vegetables to hot and spicy vegetables to tropicals, continues to spike. Del Bene cites a clear uptick in demand for these specialty commodities: “Everyone wants a jump on everything—to be the new kid on the block with specialty vegetables,” he says.
Stone believes one of the reasons the produce industry is doing so well is attributable to younger generations who are enthusiastic about the culinary arts and taking many historically cultural produce items mainstream. “The Food Network is a big deal and the mixing of cultures is the way of the future.”
LoPiccolo and Del Bene both highlight movement in micros, for small plate portions and product mixes. “We stock A to Z,” says Del Bene, always sourcing with an eye toward trending items with local chefs, to always stay on the cutting edge.
“Nothing is ever out of season—that’s the point,” explains Stone of the year-round availability area customers seek. “Other countries’ ag practices, no matter which country, keep improving and some are supported by U.S. companies.” This crossover and blending of companies and culture gives consumers access to even greater variety. “What an opportunity for people to enjoy a mix of tastes from different cultures.”
Local, local, local
Hyper-local and state-grown branded produce (under the ‘Michigan Grown, Michigan Great’ label), continue to power consumption and drive sales for wholesalers and retailers in the Great Lakes State. Buyers can source the best of all worlds with fruits, vegetables, and herbs grown conventionally in the field, organically, or from greenhouses throughout the nearly 97,000-square mile state.
Del Bene confirms the popularity of produce grown in Michigan, including downtown growers. His company recently signed a distribution deal with Recovery Park Farms, an urban grower in Detroit that uses high tunnels and glass structures to grow all year. “It’s a huge market for local chefs,” he says.
Like everyone else, Riggio is always happy to provide local product, grown in the field or as protected agriculture. “We distribute locally grown product for as long as the season will provide, and hoophouses can extend those seasons,” he explains. “We also have year-round supplies on certain commodities grown locally, in greenhouses.”
Retail Scene: Urban
Detroit’s retail scene is thriving with new neighborhood additions focused on urban communities. One local entrepreneur, Raphael Wright, is working on Detroit’s only black-owned supermarket franchise, Us Food Market, hoping to bring more diversity to the area’s retail landscape.
His mission-driven grocer is as much about healthy food and great fresh produce as it is about fostering community, offering recipes, and sponsoring events. Earning money from GoFundMe and local ‘Make the Hood Great Again’ campaigns, Wright hopes to fill a gap and serve the community with fairly priced food and topnotch customer service.
Michigan-born and bred Meijer is also capturing opportunities to help satisfy demand for smaller, urban-focused grocery stores. Bridge Street Market is a community-inspired neighborhood store first opened in the retailer’s hometown, Grand Rapids.
Another is set to open in downtown Detroit in fall 2019. Meijer is also revamping its online capabilities to better compete in the grocery delivery and curbside pickup arena. For its part, Aldi is remodeling locations rather than opening new, investing $28 million to renovate 20 Detroit stores by 2019, which will focus on bolstering fresh options and implementing energy-efficient operations. Another innovation came to Michigan State University, which opened Sparty’s Market, a mini grocer to offer students more fresh food options on campus. Product mix was based on market research and focus groups at the university; if the grocer succeeds, it could be the wave of the future for the state’s colleges and universities.
Due to Detroit’s 45-minute proximity to Leamington, Ontario, greenhouse-grown “product is very accessible most of the year and we can fill short-notice orders very easily,” continues Riggio. As the leading greenhouse producing area in North America, suppliers from throughout the United States want to source from Leamington. Riggio says many suppliers “have distribution in the Detroit area, but we also sell product to many of these producers because of how close we are,” he says.
Roscoe & Horkey Farms focuses predominantly on conventional mainstays like potatoes, sweet corn, cabbage, and peppers, along with molokhia (Egyptian spinach). “We planted a few less acres of potatoes and more sweet corn this year,” comments Horkey, but cites no other major changes.
The newest thing in the field for this grower is the explosion of technology, which Horkey says includes the integration of GPS on everything from fertilization to pest management. “Technology is taking over the ag business,” he notes.
Tech talk: freezing and pasteurizing
While it is true that fresh rules the day, two businesses in the Detroit area are going in another direction. The Eastern Market’s Michigan Farm to Freezer is a relative newcomer to the wholesale market scene, working with growers at the market and throughout the state to store and flash-freeze commodities, creating a variety of products such as custom blends and packs for retail and foodservice customers.
There are vegetable packs with rainbow carrots, sweet peppers, and a variety of root crops, as well as plenty of frozen fruit in solo or mixed packages including Saskatoon berries, apple slices, and Michigan’s own famous tart cherries. Organic packs are available too, from mushrooms, broccoli, and kohlrabi to blueberries, strawberries, and tart cherries.
Freezing not only locks in flavor but saves highly perishable specialty crops from the landfill. “It’s a great example of how we can tackle a niche market,” says Mike DiBernardo, director of food innovation for the Eastern Market Corporation, which runs the Eastern Market.
Another high-tech innovation is emerging in the southwestern Detroit suburb of Taylor, where the Michigan Commission of Agriculture and Rural Development awarded a grant to Great Lakes HPP, for a cold pasteurization facility. The HPP stands for high-pressure processing, which applies high pressure to sealed food products, locking in flavor and locking out pathogens.
Using an all-natural process of purified cold water, food is preserved and protected without any chemical additives. Better yet, the pasteurization process retains flavor and nutrients, while increasing shelf life. The new Great Lakes HPP facility will also house an innovation center for local food companies to train employees, test new products, develop new flavor profiles, and create recipes.
A Few Woes
Despite all the good, good, good there are always a few challenges. For those in fresh produce, skilled labor is a resounding and very familiar woe.
Del Bene reiterates that the availability of a skilled, reliable labor force is not just a local or Midwestern problem, but the “single biggest challenge countrywide.”
Horkey has struggled with steady workers as well. “It’s hard to find good help who want to grow with our business; we’re just a stepping stone, so we end up hiring new workers all the time.” And while the lack of a steady pool of workers is still a thorn in every producer’s side, it is somewhat better than several years ago when a number of growers were forced to leave up to 25 percent of their crops in the field or orchard, since there were so few workers to pick and pack at harvest time.
Riggio cites labor and transportation as his top challenges in 2017 and 2018, and Russo echoes these sentiments. “It’s a challenge to find stability in bringing truckloads across the country with the logistics of new laws in place,” comments Russo. “But that’s something everyone is dealing with.”
“Our biggest obstacle is we can’t find drivers,” agrees LoPiccolo. “It’s our Achilles’ heel; all local, regional delivery has a high turnover rate.” And, with the city exploding in growth, “we have tons of business, but we could even do more if we had the right people,” he says.
As a producer of fresh greens, Horkey expresses concern over the E. coli outbreak on romaine lettuce this past spring, which led many big retailers to pull all product from their shelves—not just romaine from Arizona, but romaine from everywhere and other lettuces as well. “It scares people on all leafy greens,” he says, and worse yet, such fear can cast a wide net that “hurts all fresh vegetables.”
Full Speed Ahead
For Detroit’s fresh produce industry, the road is clear and it’s full speed ahead. High demand continues to provide new opportunities and greater returns for the city’s wholesalers at both the Detroit Produce Market and the Eastern Market, as well as plenty of attention and profit for retailers and restaurants.
Images: THINK A, Palokha Tetiana, Jose Diez Bey/Shutterstock.com
