Know more about Riega Foods LLc - a dietary and natural products importer
by Fernando Lopez - Executive Editor
Note from the Editor- In this edition of "Food Biz Talk" I had the pleasure to interview Brad Gampper the young CEO of Riega Foods, an importer of specialty foods based in North Kansas City, Missouri.
Brad talks to FBD about his business, gluten free eating, the new line the company is bringing to the US - Cerealvit - and more.
For our previous coverage of Cerealvit at the last Fancy Food Show in NY, click here.
Enjoy.
August 20 2009
FBD: Give us a brief history of Riega Foods.
BG: Before I started Riega Foods, we (my wife who is gluten intolerant and I) traveled extensively and were continually amazed with the quality and variety of dietary and natural products available in the international marketplace. As consumers of gluten-free products, we were also often frustrated with the cost of high-quality gluten-free products in U.S. stores.
We started Riega Foods in early 2008 with two primary goals: to make the great dietary and natural products we found overseas available to the United States market and to make dietary and natural products available at reasonable prices.
During the past year, we have worked to develop relationships with overseas suppliers, review a number of product lines, and develop packaging. Our first line of products is from Cerealvit, Srl, which is a wonderful family-owned cereal factory in Italy. They have been in business for almost 30 years, and produce a great line of products focused on dietary needs, natural/organic farming and top quality ingredients. They are a model for the kind of company we want to partner with, and for the types of products we want to introduce to the U.S. market.
FBD: Can you describe the lines you currently carry ?
BG: Currently, we carry three gluten-free cereals from Cerealvit. We will be adding a fourth gluten-free cereal in Fall 2009. All four cereals are certified gluten free (under 20 ppm) and NOP Organic. The cereals are:
•Corn Flakes – An unsweetened corn flake with extra thickness and crunch
•Benevit MultiGrain – Buckwheat and rice flake with a light crunch and natural sweetness
•Coffee Flakes – Our standard corn flake enriched with flax and other Omega-3’s then coated with real organic coffee
•Choco Stars (coming soon) – Corn and rice “star” cereal made with real chocolate
As consumers begin to recognize Cerealvit for the quality and value they provide, we plan to introduce other Cerealvit products that are not gluten free, but serve other dietary niches.
We are also developing several other products in cooperation with several established international brands as well as our own brand. We will be launching several new products within the next year.
FBD: What is your criteria for selecting a new product/line to import ?
BG: We understand, first-hand, the difficulties families have finding safe, great-tasting dietary products (especially gluten-free products) at reasonable prices. Because of this, we have very high standards for both the types of products we will import and the producers with whom we will partner.
The first stage of product evaluation is focused on quality and value:
1) Product Quality
a. Is the taste and quality of the product as good or better than any comparable item currently on the market? OR
b. Is this a completely new product that will fit our market?
2) Price/Value
a. Will the product be at a price point that consumers will be willing to purchase? OR
b. Can we significantly undercut comparable products currently in the market?
Once we determine that a product meets both of these tests, the second stage of evaluation is focused on the manufacturer. In this stage, we determine whether we can partner with the manufacturer to form a mutually beneficial relationship:
1) Evaluate the manufacturer/factory and look at their quality standards, core values, willingness to adapt for export markets, stability of ownership and commitment to dietary and natural foods.
2) Determine if a partnership will create value for the manufacturer, Riega Foods and U.S. consumers. During this stage, we evaluate the individual people we will work with as much as we previously did the technical abilities of the factory.
For example, we feel the gluten-free and organic cereals from Cerealvit are a great new product for the U.S. market. We feel Cerealvit’s quality, taste and innovation would be category leaders. The feedback we are getting is backing up our initial assessment. The cereals are also packaged in a family-friendly 13.25 oz box that, ounce for ounce, provides a superior quality for a competitive price.
FBD: OK, after you decide to start importing an item, how do you go about distribution here?
BG: For the past year, we have focused on finding the highest quality products and manufacturers then starting the process of working together. The first fruits of this effort were in mid-July when we received the first shipment of products from Cerealvit. Our focus is now on getting the cereals to market and building distribution channels for these and future products. The goal with these marketing and distribution efforts is to build sustainable and manageable sales growth.
We know that distributors will not take on a new product unless a) one of their large customers asks them to, or b) there is a proven demand for the product. We have put in place several marketing strategies to generate pull-through demand at both the retail and distribution levels. Most of our promotional efforts are aimed at consumers in the gluten-free community, including consumer magazines and bloggers focusing on gluten-free foods.
To reach retailers, we have implemented a direct to retail program, which is going very well. Many small and mid-size retailers are willing to purchase product directly from us, with the understanding that when sales achieve larger volumes, we will work together to make the product available through distributors. The direct to retail program has exceeded our initial sales expectations. This strategy also allows us to target retailers in a concentrated geographic area and gain market insight. Ultimately, we can build a market of retailers in a specific geographic area that a regional distributor will eventually serve when the retailers can prove sufficient sales volumes.
We know that working with distributors will increase demand and also entail some up-front costs. Our direct to retail program will help us understand and work through, on a smaller scale, some of the challenges that will inevitably arise when sales volumes increase through distribution.
To further enhance our sales efforts we have started working with Natural Brokers in the Southwest/Rocky Mountains states. This geographic area is a natural extension of our central location in North Kansas City, Missouri. Natural Brokers’ sales focus will be with our direct to retail program, help guide our products into distribution, and further promote the Cerealvit brand at retail in the region.
We are also in talks with several regional distributors and additional brokers in other key geographic areas. We are very encouraged and there will be several announcements in the coming months placing our products in distribution and retail.
FBD: Are you sourcing other lines to add to your portfolio?
BG: Currently, the Cerealvit brand of gluten-free cereals, and soon some additional products from Cerealvit. We are also actively working on adding several other convenience and snack foods to our product line. All the products we are currently working on are gluten-free, for diabetes control, and/or digestive health (high fiber/probiotic).
FBD: What are the biggest hurdles/challenges related to your activity?
BG: Continuing to make good business decisions. Importing and developing new brands can be a capital-intensive business. You have to make sure that the short and long-term decisions you make allow for sustainability. Additionally, when you are a new business, the tendency is to accept any offer to buy or distribute your products that comes your way. Sometimes this can be a bad business decision. You must weigh every decision and have faith in your products, plan, team and ability. Then you can make educated decisions that move you towards your goals and objectives.
FBD: How do you see your business in 5 years
BG: We want consumers to recognize Riega Foods as the category leader in developing products that can be trusted for taste, quality, safety and value for those with special dietary needs. Then due to the relationship we’ve built with consumers, Riega Foods will be choice of retailers, distributors and overseas manufacturers looking to expand the breadth and depth of their offerings in this segment in the United States.
FoodBizIntel®
Riega Foods, LLC
Address: PO Box 12542 North Kansas City, MO 64116
Telephone: (816) 744.8260
Fax: (866) 774.8118
About Riega Foods, LLC
Located in North Kansas City, Missouri, Riega Foods, LLC is an importer, distributor and marketer of great tasting and high quality foods. Riega Foods focuses on bringing gluten free, organic and natural foods to market in the United States and Canada.
FoodBizIntel®
Cerealvit, Srl
Address: Via Grandi 22 20060 TRUCCAZZANO LOMBARDIA - Milano ITALY
Telephone: +39 02 9583798
Fax: +39 02 95838394
About Cerealvit, Srl
For almost 30 years, Cerealvit has been committed to producing only healthy and natural cereals that are rich in taste and nutritional value. They believe in limited use of sugars and no added fats, colorings, artificial flavorings or chemicals in the production of their foods. In each Cerealvit product, you will find only the best of land, water and sun because Cerealvit believes that the best foods are made with simple ingredients and attention to quality.