National Provisions is poised for expansion
For Immediate Release
If you’ve ordered food at a deli in South Florida in the past two decades, chances are your corned beef special or pastrami sandwich had its genesis at a meat packing plant near Miami International Airport.
The two-story warehouse that houses National Provisions is a frenzy of whirring machines and cooking equipment. Employees in white lab coats work the floor, carving briskets, molding hot dogs, seasoning and curing more than 30 kinds of deli meats.
From their upstairs offices, George Bell and his partner Rick Bruskin mind the helm of National Provisions, which supplies thousands of food services businesses in 38 states – hundreds of them in South Florida.
In the past five years, Bell and Bruskin have grown the company from $15 million in annual revenue to about $40 million in 2006. Their new five-year plan: achieve $100 million in revenue. Getting there involves taking their National Deli brand meats from behind the scenes of restaurants and delis directly to the consumer. Bell believes the recent sale of National Provisions to Chicago-based private equity firm Arbor Investments will bring the company the financial and management resources needed to achieve those goals.
Arbor Investments makes the fourth owner in 25 years for National Provisions.
The firm started in 1982 as a division of kosher meat manufacturer Hebrew National. That company saw a demand for kosher style products prepared without the religious blessings and guidelines that make true kosher products more expensive. National Provisions filled the nonkosher niche with the National Deli brand. Bell, who got his start in meatpacking working part-time with Hebrew National when he was 18, and fellow Hebrew National employee Bruskin were tapped to head the new operation.
Under their management, the company steadily grew, selling its products to food service providers like restaurants, hotels and delis. Long-time customers include the likes of Bill Korenbaum, president and CEO of West Palm Beach-based Toojay’s Gourmet Deli. ”The product has been very good, very consistent and has wide acceptance,” Korenbaum said. Toojay’s operates 24 restaurants throughout Florida.
A decade after it began, National Provisions caught the eye of giant ConAgra Foods, which acquired Hebrew National and its subsidiaries.
With the purchase, Bell and Bruskin decided to call it quits. The pair split to start their own local businesses. ”[ConAgra] didn’t want entrepreneurial people like us running the business, and I couldn’t run the company the way I wanted, so we left,” Bell, 64, recalled.
When ConAgra sought to divest the division in 2001, the two rejoined forces to purchase the company themselves for about $3.5 million with the help of three other partners. ”It was a great deal,” Bell said.
Since buying the company, the team has invested $4 million in upgrading the manufacturing facility. They spent $350,000 on a new pasteurizing system, for example, considered more effective at zapping bacteria. ”Investments like that have driven the company – we did what some smaller companies won’t do or can’t afford to do,” Bell said.
With the new equipment, they’ve expanded their offerings and increased output to 310,000 pounds of deli meats a week – including half a million hotdogs and 130,000 pounds of corned beef, the company’s core products. And, Bell said, the foods are healthier.
PLANNING FOR GROWTH
The company’s new owner, Arbor Investments, sees the opportunity for large-scale growth. ”It’s got very strong business, and the brand is very well known in food service,” said Steven Zoll, a partner with Arbor and National Provisions’ new chairman of the board.
Bell wouldn’t discuss the terms of the deal, but said he and Bruskin, and a third partner Joey Bonomo, maintain significant ownership. Their 120 employees will also remain on board.
Key to the new strategy is to bring the National Deli brand directly to consumers. National Deli products have always been behind the scenes. Even in the deli cases, the labels generally aren’t visible.
”You’d be amazed to know how many of your favorite restaurants serve National Deli products,” said Daniel Singer, the company’s marketing director, ‘but you don’t know it because the menu doesn’t say, ‘You’re eating a delicious roast beef sandwich from National Deli.’ ”
AVAILABLE AT PUBLIX
That’s changing fast. Bonomo, National’s vice president in charge of new sales, said the company’s hot dogs and sliced meats hit the shelves at Publix a little more than a year ago. Another new customer: BJ’s Wholesale Club.
”It’s crazy, we can’t keep up with them,” Bonomo said.
Overall sales of deli meats have grown rapidly, as supermarkets have discovered a well-stocked deli lures customers. Annual service deli sales hit $14.85 billion in 2005, the number of retail delis grew from 26,900 to 27,200 in 2004 – the latest numbers available – and delis are getting bigger, reports the International Dairy-Deli-Bakery Association.
Meanwhile, National Provisions’ traditional business continues to flourish.
In the next few weeks, for instance, the already frenetic production pace at the plant will double as the company rushes to pump out more than 2 million pounds of corned beef in time for Saint Patrick’s Day.
”Saint Patrick’s Day is Corned Beef Day,” said Bruskin, “I thank God for whoever created it.”
For more information, please contact Joseph Campolo (312-981-3781) or Gregory Purcell (312-981-3780).