Latest / The Inspired Stories Podcast / How DelGrosso Foods Doubled a 78-Year-Old Family Business in Just Two Years | Manufacturing Series
Transcript
- 0:04Welcome to another edition of the Inspired Stories podcast,
- 0:08where leaders share their experiences so we can learn from
- 0:12their successes and be inspired by how they've overcome
- 0:15adversity. My name is Anthony Kotaspodi and
- 0:18today's guest is Michael Delgrosso, Chief Sales and
- 0:21Marketing Officer at Delgrosso Foods.
- 0:24This family owned company, founded in 1947 can actually
- 0:28trace its roots back to the tradition started by Mariana
- 0:33Puccino Pulcino. They are widely known for
- 0:38producing premium sauces and holding the proud title of
- 0:41America's first family of pasta sauce.
- 0:45With a commitment to quality, they offer a range of pasta
- 0:48sauces, pizza sauces, and organic options, all rooted in
- 0:53authentic family recipes. Additionally, they have a huge
- 0:56private label business where they produce products for over
- 1:00half of America's top 20 grocers and many other popular brands.
- 1:06In total, they have over 300 recipes.
- 1:09As an interesting bonus, we will get to hear about an amusement
- 1:13park that plays a key role in the company's history now.
- 1:17Michael began his career in the family business at age 10, later
- 1:21graduated from the US Naval Academy and served as a Naval
- 1:26officer. More recently, Michael, along
- 1:28with several other family members and hundreds of
- 1:31dedicated employees have guided the brand's growth
- 1:33internationally away from Del Grosso Poos.
- 1:36He has served as director on corporate and non profit boards
- 1:40and has appeared on the Food Network and NB CS Today show.
- 1:44With a background in management consulting and global marketing,
- 1:48Michael brings a unique perspective on leadership and
- 1:51innovation. Now before we get into all that
- 1:54good stuff, today's episode is brought to you by my company,
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- 2:19To find out if your company qualifies, contact us today at
- 2:22adbackbenefits.com. Now back to our guest today, the
- 2:25Chief Sales and Marketing Officer of Delgrosso Foods,
- 2:29Michael Delgrosso. I appreciate you making the time
- 2:31to Share your story today. Anthony, thanks for having me as
- 2:35your guest. So Michael, your family's sauce
- 2:39making legacy stretches back over a century, starting with
- 2:44and I. I slipped up on the name in the
- 2:45intro, which makes me a bad Italian Mariana Pulcino.
- 2:50Good job. And her recipe?
- 2:51What stories can you tell us about those early days and how
- 2:54it eventually led to the formation of this company in
- 2:571947? Oh, my.
- 2:59It's, it's it's a unique story. And when you think pasta sauce,
- 3:03you know, you might think a restaurant, sure, that makes
- 3:06sense. But you're not going to probably
- 3:08think of a railroader and an amusement park, right.
- 3:11So how does this how did this all come together?
- 3:14And it is a fascinating story. So, yeah.
- 3:16You mentioned my great grandmother, Mariana Polcino.
- 3:18She came from the region of Lazio, about 70 miles southeast
- 3:21of Rome, She and her husband. But she gets all the credit
- 3:25because she had the recipe. So they came over in the early
- 3:281900s, settled in Altoona, PA. So Altoona is in the central
- 3:33part of the state, a big, bustling railroading center at
- 3:37the time. And a lot of immigrants were
- 3:40flooding into that area to make a better life for themselves.
- 3:43Well, my great grandmother, she knew how to cook.
- 3:46So she established a place called Mom's Cafe in Altoona on
- 3:51Walton Ave. where she started not only making great meals, but
- 3:56I also only in about last 10 years learned that she was
- 3:59actually making beer in the basement during prohibition.
- 4:01So that's pretty cool too. But Mariana had several children
- 4:06and among them was a a girl named Mafalda.
- 4:09Mafalda was my grandmother and and we affectionately know her
- 4:13as Grandma Murph. Now Murph was waiting tables for
- 4:16her mom at that cafe one day and a handsome young railroader
- 4:20named Ferdinando Grosso was travelling with a friend that
- 4:23day. They made a wrong turn when they
- 4:26were looking for another place to eat, but they saw this cafe
- 4:29and they said, well, let's just go in here.
- 4:31That chance encounter was the spark that really created a love
- 4:35story that extends to today. Fred and Murph met that day,
- 4:39fell in love and eventually they created their own cafe do
- 4:43Grosso's Cafe in Altoona. And my grandfather noticed that
- 4:47that original recipe from his mother-in-law, Mariana, was
- 4:51beloved. People thought of them as the
- 4:54best spaghetti at dinner in town.
- 4:56And people were even asking if they could pay a little extra to
- 4:59take home some sauce with them. So, you know, he had this idea.
- 5:03Well, gosh, maybe we can can this product and sell in grocery
- 5:06stores. And now that might make a lot of
- 5:08sense to you and me, but back then, canning and selling in a
- 5:13grocery store prepared sauce was pretty rare.
- 5:16And in fact, it was only in the early 1940s that Ragu and Chef
- 5:20Boyardee, the first big national brands of spaghetti sauce, even
- 5:24started up. And so.
- 5:27This is kind of a cutting edge idea at the time.
- 5:29It was, it really was, and he didn't have the means though to
- 5:33implement it at the time. So this is where the story takes
- 5:37an interesting twist. So 1946, my grandfather's
- 5:41driving down the road from Altoona, just 11 miles north,
- 5:44and stopped at a little town called Tipton where Bland's Park
- 5:48was set up. This is old family owned
- 5:50amusement park that had an old wooden carousel, a few other
- 5:56rides and attractions, and a roller skating rink.
- 5:59In the back of the amusement park he noticed a for sale sign
- 6:03on this amusement park. Now my grandfather had never
- 6:06operated an amusement park, had never had no experience but on a
- 6:11on a after a 2 hour conversation and a handshake with the owner
- 6:15he agreed to buy this amusement park.
- 6:18OK. What did he have in mind?
- 6:20Well, I don't know what he had in mind initially, but it took
- 6:23about two weeks for my grandmother to even speak to him
- 6:26again after he told her the news.
- 6:29But I guess what he had in mind was what he did.
- 6:32He moved the entire family from Altoona into this tiny house in
- 6:37the back end of the amusement park.
- 6:39So if you go into Del Grosso's Park today and you see a little
- 6:45house by the park stage has five rooms in it, That was the
- 6:49original house that they lived in.
- 6:51So my father, all of his six brothers and sisters, grew up in
- 6:55this five room house with one bathroom.
- 6:58There wasn't even a kitchen. My grandmother had to do all the
- 7:01cooking for the family in the park kitchen.
- 7:03OK, so 1947 is the first year they actually started operating
- 7:08the park. And he, you know, had the
- 7:11employees from before, but now he had this, you know, the
- 7:13family, he could help out. But it was also that next year
- 7:17in 1947, where he said, well, hey, this little garage that's
- 7:23right behind the house, we could turn that into a factory and
- 7:27start canning the sauce. So with the help of some
- 7:30friends, he got things up and running, and everything was done
- 7:34by hand. So, you know, you have these
- 7:36romanticized pictures of what an old, you know, sauce factory
- 7:39might look like. Well, that's pretty much what
- 7:41you got. So you had big kettles.
- 7:43I actually have one of the old paddles.
- 7:45All right, It's a it's about 3 or 3 1/2 feet long.
- 7:48I have a olden paddle in my garage as a souvenir from the
- 7:521950s, right. This is even after about 10
- 7:54years after they got started. So they would have to stir that.
- 7:58But think about this. You, you think of the machines
- 8:01they have these days to fill jars or cans.
- 8:03Well, back then you would have the can, you would ladle out the
- 8:06sauce, fill up the can, and then you'd have to set the lid on,
- 8:10put it in a clamp, and you'd have to hand seal.
- 8:12So you're cranking 21 revolutions just to seal a
- 8:16single can. So you can imagine as the
- 8:19company was growing, how just laborious that became.
- 8:22So that took them through the, the, you know, the late 40's,
- 8:25the 50s through the 60s. And by the time the, the mid 70s
- 8:30came around, they were really struggling to keep up with
- 8:33demand. OK.
- 8:34So this was a Pennsylvania brand.
- 8:36It was a what I would call what we would call today, a value
- 8:41tier brand. So a great quality product,
- 8:44natural ingredients and so forth.
- 8:46It was a tomato paste based product, but very inexpensive.
- 8:50So this would compete, if you want to call it that, against
- 8:54the, you know, the Ragus of the world back then.
- 8:58But by the late 70s it was clear that if they wanted to grow,
- 9:01they were going to have to expand.
- 9:02So right across the road from the amusement park was some land
- 9:07that they owned and spent back then.
- 9:10And I don't even know what the amount was back in 1978 that,
- 9:13you know, they put down for this.
- 9:15I was, I was only 8-8 years old at the time, but they started
- 9:18building the plant and now this new plant was modern.
- 9:22It could run much faster volumes.
- 9:25It was much more automated and they eventually were able to run
- 9:29glass jars too. Just just interrupt for a
- 9:31second. So up until the 70s it wasn't
- 9:34still all like hand done like there had been some automations
- 9:38introduced along the way. Yeah.
- 9:39So you know, there was AI have a picture from the the late 50s
- 9:42where there's like a small conveyor belt, right.
- 9:44And there was a a leveraged pool and it would fill up the can.
- 9:47So you weren't ladling it by hand.
- 9:49And I don't know what point they got an automatic, you know,
- 9:52sealer for the for the lids of the cans, right.
- 9:55So yes, little by little, small investments, buying used
- 9:58equipment, whatever they could throw together, you know, this
- 10:01was. All taking place on the grounds
- 10:03of the amusement park. All the amusement.
- 10:06Park and so you know, the, you can imagine there's people out
- 10:09there enjoying the amusement park and, and coming through the
- 10:13park is a forklift with a pallet of spaghetti sauce, putting it
- 10:16in another building to store it, right.
- 10:18So it was, it was really something, you know, and it was,
- 10:24you know, maybe talk about what it was like when I was a kid
- 10:27working at the park, But you know, it was, it was just really
- 10:30step by step, little by little. So by the time the 70s, late 70s
- 10:35came out and they built that new plant, you know, that was a new
- 10:37era for us. And I remember as a kid, we had
- 10:42just had an agreement with a, a family friend that introduced us
- 10:46to the NFL legend Franco Harris, right?
- 10:49You, a lot of people know him from the Immaculate Reception.
- 10:52And so we developed a friendship with Franco.
- 10:54He was actually our spokesperson.
- 10:55He did some TV commercials for us in Pennsylvania and he would
- 11:00come to visit the amusement park when I was a kid.
- 11:02And I thought I was just the coolest kid, you know, walking
- 11:04around with Franco at the amusement park.
- 11:06So some great memories of those days too.
- 11:10So problem came though in the in the early mid 80's, the bills
- 11:17were coming in for this plant. It was a big capital outlay, but
- 11:21the, the growth just wasn't, wasn't there.
- 11:24The, the sales weren't there. So, you know, my, we scrambled,
- 11:29we sold a bunch of other assets, some farmland that my
- 11:31grandfather had purchased before, sold a restaurant that
- 11:35they owned and so forth to try to save the business.
- 11:38But there was really getting no getting around the fact that we
- 11:40needed more volume. And at that time in the early
- 11:45mid 80s, there was some brand new concept that had just
- 11:48arrived from Europe and that was called private label, right
- 11:51store brand. And at first, my grandfather was
- 11:54actually pretty resistant to the idea of making product for other
- 11:58people for, you know, for their label.
- 12:01But it really saved the business.
- 12:04And, and I'll give you the, the specific example, back in the
- 12:09mid 80's, the biggest grocer in America was A&P, the great A and
- 12:12PT company. They had over 3000 locations and
- 12:15they put out a bid to different suppliers, including us saying,
- 12:20hey, provide some formulas, provide some pricing and we're
- 12:24going to award business to somebody, whoever has the best
- 12:27combination. So we came up with this, you
- 12:29know, a, a, a different set of recipes and, you know, something
- 12:33we thought would really resonate with our customers.
- 12:35And we, we got the business and that volume was just enough to
- 12:40keep us above water, keep us, you know, you know, paying the
- 12:43bills, get us a little bit more scale.
- 12:46And then later that decade in the 80s, we had, you know,
- 12:50another one or two private label companies.
- 12:53And by the time you get to the, the late 90s in 2000, we've
- 12:58grown pretty substantially. So we're making a lot of product
- 13:01for a lot of people, almost a third of the top 20 grocers at
- 13:04the time for private label and, and a couple very small regional
- 13:08brands as well. And that actually that that
- 13:12culminated in a, an award, a national award from the Small
- 13:16Business Administration for Small Business of the year.
- 13:19And my grandmother, a couple of my uncles got to go down to the
- 13:21White House and receive that award.
- 13:24And it was a really, really special time.
- 13:26So that was that was the year 2000.
- 13:28That's really cool. Couple things I want to unpack
- 13:30there. I mean what a great chance
- 13:33meeting between Grandma Murph and was it your grandpa or your
- 13:38great grandpa? Missing.
- 13:40Yeah. So my, my, my grandfather and my
- 13:42grandma who who, you know, started do grisa foods.
- 13:45Yeah. Grandma Murph was your
- 13:46grandmother, not your great grandma.
- 13:48OK, just this chance meeting that turned into, you know, a
- 13:53marriage and, you know, building a family and building a business
- 13:55together. So the first product was like a
- 13:58really good value product, right?
- 14:00Yes. He said it, you know, if you
- 14:02would call it that kind of competes with a, with a ragu
- 14:05like great ingredients, you know, affordable for the working
- 14:08family. But you guys were making a lot
- 14:11of investments and you had to change, you had to adapt.
- 14:15You know, you needed more automations, but with that
- 14:19investment that you had to really generate a lot more
- 14:22sales. And it kind of wasn't happening
- 14:24until you guys stumbled upon the idea of private label up until
- 14:27that point. Michael, where would people have
- 14:30found the Delgrosso product? Was it?
- 14:33Just. Regionally in grocery stores,
- 14:36that's right. That's right.
- 14:37And. You know, actually the that
- 14:39original Del Grosso brand is still mainly a regional product.
- 14:42It's Pennsylvania, I call it Pennsylvania plus, right, you
- 14:45got some eastern Ohio, a little bit of Northern Maryland, you
- 14:49know, a couple nibbles of upstate New York and so forth.
- 14:52But it is still a regional brand.
- 14:54But one of the most popular brands.
- 14:57In fact, the Pennsylvania Chamber of Commerce was doing a
- 15:01sort of a March Madness, but Pennsylvania products edition,
- 15:06which I think it either just end or is about the end.
- 15:09But they started out with 64 iconic Pennsylvania brands.
- 15:13We made it to the the 8, the final eight and we were beat.
- 15:17We were beat by the Sheets MTO. So Sheets is a, a very popular
- 15:21convenience store on the East Coast.
- 15:23And yeah, we are, we are pretty honored to lose to them.
- 15:26So yeah, it's it's it's a staple of many Pennsylvania households.
- 15:30That's great. And as a kid you get to meet and
- 15:33hang out a little bit with Franco Harris.
- 15:35I mean, and as being a Pennsylvania, you had to have
- 15:37been a Steelers fan, right? So this is just like the idol of
- 15:40idols at that time. That's exactly right.
- 15:43It was pretty cool. And you know, for a lot of our
- 15:46younger listeners, they probably don't recognize the A&P name,
- 15:49but they used to be just this enormous grocery store chain.
- 15:53And so this was really your first foray into private label,
- 15:57which now is is commonplace, lots of store brands to be found
- 16:02pretty much everywhere you shop. But at the time this was new and
- 16:06you said this idea actually kind of came from Europe.
- 16:09Yeah, you know, it was adopted in Europe and I, I don't know
- 16:12the full history, but it, it probably was in place there for
- 16:15at least a decade before it took hold in the US And A&P was, was
- 16:20a leader in, in starting up this whole store brand idea.
- 16:24And I mean, interesting to think like what would the Delgrosso
- 16:30track record or history have been had that not come to
- 16:33fruition? But here we are today.
- 16:35Thankfully, it did. And it was like a great, not
- 16:38only was it like great revenue for you guys to kind of get your
- 16:41footing under you, but it was a great proof of concept like,
- 16:44hey, this can really work and we can be good at this.
- 16:48Yeah. You know, there's, there are
- 16:50brands, there are manufacturers and sometimes those are the same
- 16:55thing, but not always. And it really solidified us as
- 17:00you know, we've had to make sauce, making sauce at scale we
- 17:03are getting good at. But this really took us to
- 17:06another level. And I have to ask, like, what's
- 17:11what's the state of the amusement park?
- 17:12Like? Is it still open?
- 17:14When did it close? Like what?
- 17:15What's the What's going on? Yeah.
- 17:16So the, the amusement park still operates Dole Grossos Park in
- 17:20Laguna Splash. And you say what's Laguna
- 17:22Splash? Well, that opened about, I want
- 17:25to say 8-9 years ago. And that is a America's only
- 17:29Italian themed water park, Anthony.
- 17:32So if you can imagine floating down the lazy river past, you
- 17:38know, Italian bridges and wine jugs that will squirt water and
- 17:43you'll eventually float around the curve to you pass the the
- 17:46Leaning Tower Pisa with water coming down from it.
- 17:49There's a gondola. There's oh, it's, it's, it's
- 17:52great. And then we have the best
- 17:53amusement park food in America. There are a lot of adults who
- 17:57never stepped foot in a ride but come weekly for our amusement
- 18:01park. We have a lot of Italian
- 18:02specialities and and the amusement park itself.
- 18:05There are lots of typical amusement park fair.
- 18:08But my Aunt Marianne always says we do everything the hard way.
- 18:11So much of it is done by hand. Our steak sandwiches, you know,
- 18:15are sliced by hand. We have this potato salad
- 18:18recipe. My great, my, my grandmother
- 18:20developed, you know, decades ago and we'll sell, you know, a
- 18:25couple 1000 lbs of this stuff over a weekend.
- 18:28It's just so popular. But all that is, you know, the,
- 18:31the potatoes are boiled and peeled by hand and everything's,
- 18:34it's, it's, we do so much work with so much love and care, but
- 18:39it, it's the family wouldn't have it any other way.
- 18:43And so is, is it still a single manufacturing facility and is it
- 18:48at that same property? Yeah.
- 18:50So, you know, there there's, you know, a recent development, I
- 18:54say recent, two years ago we did open a second plant and you
- 18:58know, and that's kind of part of the story of our evolution.
- 19:01So you know, I think we we, we can talk about that because I'll
- 19:05go into that in a bit more detail.
- 19:06But yeah, that has really changed.
- 19:09If, if private label changed our business, this has changed it
- 19:13just as much. So yeah.
- 19:15Let's put a pin in that and come back.
- 19:17I want to hear more about that, but now I want to hear about,
- 19:21well, I guess it it you're sort of double entree into the the
- 19:25family business because I understand you first started
- 19:27working there when you were 10 years old.
- 19:30Let's talk about that. What was that like?
- 19:31What? Were you doing?
- 19:32That's right, you know, Well, imagine you go to work as a kid
- 19:36and every day is a family reunion, right?
- 19:40Your, your, your parents are there.
- 19:42Or at least my mom was there every day.
- 19:43My dad was kind of back and forth between the sauce plant
- 19:46and the park. But I would see my aunts, my
- 19:48uncles, you know, I was one of 23 grandchildren.
- 19:52And I would see almost all of my cousins on a daily basis when
- 19:56the park was open during the summer.
- 19:58So we all had different jobs. You know, the older cousins, you
- 20:01know, my cousin Scott, my cousin Carl, they got to run the rides.
- 20:05You know, my older brothers, you know, they did their thing.
- 20:07My, you know, the, the, the, my sisters, my older cousins.
- 20:12They would often work in the food stands and so forth.
- 20:14So as a 10 year old, I was qualified to pick up litter and
- 20:18run errands, right? Wipe off tables, those kind of
- 20:21things. And I'll tell you what, it was
- 20:23great. My only regret is that I blew
- 20:26every quarter I ever made in the arcade.
- 20:28It's on the on the pinball machine.
- 20:31So I, I, I always think I could either have a lot of money had I
- 20:36invested in the right company back then, or great pinball
- 20:40skills. Well, I'm stuck with great
- 20:41pinball skills and not like, you know, decades old stock that
- 20:44might be worth a lot today. So, but it was a, it was a fun
- 20:48time. And then as I got older, you
- 20:50know, jumped around to different places, but my favorite was a
- 20:54ride that we used to have called Space Odyssey.
- 20:58You get on there, get on the microphone and talk to people
- 21:01and ask them if they wanted to go faster and all.
- 21:03You know, it was just great having you playing music and the
- 21:07whole control and all the lights, kind of like an indoor
- 21:09disco place. So it was a It was a great time
- 21:12growing up spending time with my family, making great friends and
- 21:17blowing my money in the arcade. You checked all the boxes as a
- 21:21yes kid. I love it.
- 21:23And so cool that you got to have those experiences with your
- 21:25cousins every summer. So so you worked there, you
- 21:30know, from 10 years old kind of growing up and then you went off
- 21:33and you you kind of did your own thing for a while.
- 21:36I'm curious like was that intentional?
- 21:40Hey, I want to get away from the family business.
- 21:42I want to make my own name. Was it more of like a I'm going
- 21:45to go do this so I can learn some skills and I know that I
- 21:48want to come back, or just kind of just.
- 21:51Following with life and you weren't really.
- 21:52Sure. Yeah.
- 21:53So, you know, one, one of the things that I, I, I really
- 21:57credit my father with and, and a lot of my family members was
- 22:01that, hey, this is a small business.
- 22:04We got a big family. There's not enough room for
- 22:06everybody, right? Make sure you you chart your own
- 22:09way. And I think I was probably in
- 22:12that direction anyway. My oldest brother, Dan, enlisted
- 22:15in the Navy. I was pretty fascinated by that
- 22:18life. At the same time I knew I wanted
- 22:21to go to college. I was also had my eye on
- 22:24throwing the javelin in college. It was something I did pretty
- 22:27well out of high school. So I was recruited by some
- 22:29different schools and I ended up eventually getting accepted the
- 22:33Naval Academy with a couple missteps, you know, between high
- 22:37school and, and two years later when I finally got admitted, it
- 22:39took me a couple years to get in.
- 22:41But yeah, that's where I ended up.
- 22:44Four years by the Severn River in the Chesapeake Bay.
- 22:48It was a great experience, super hard.
- 22:51I chose an economics major, but they still make you take all of
- 22:54these engineering courses and science courses.
- 22:57And I'll be honest, I did really well in economics and a lot of
- 23:01my electives, and I really struggled at electrical
- 23:04engineering and physics and architecture, or what was it,
- 23:08naval architecture, systems engineering, all those things
- 23:12that were were much more difficult.
- 23:14But it was a great, great experience for me.
- 23:18And of course, that leads to time as a Navy officer, which I
- 23:22was looking forward to and do. I served mainly in San Diego and
- 23:26then I got into industry after that after my obligation was
- 23:29done, I actually didn't even get to serve my full obligation due
- 23:33to a medical discharge. So yeah, so I got out of the
- 23:36Navy just a little bit sooner than I thought, but got a job
- 23:41working. There's there's some of these
- 23:43companies that specialize in placing junior military officers
- 23:47in the civilian world. So one of them I signed up with
- 23:52and got me a good opportunity at a manufacturing company in
- 23:57Michigan. This was part of the whole
- 23:59Michigan supply chain. This they made antilock brake
- 24:01systems and one of the reasons I like the idea of going to
- 24:04Michigan was that I know University of Michigan had one
- 24:07of the best MBA programs in the country at the time and they
- 24:11still do. And I I on a side note, I was
- 24:13thrilled when you interviewed the Co founder of Zingerman's,
- 24:16Zingerman's Deli and Ann Arbor, because I had many meals by
- 24:22Zingerman's, which is great. So yeah, that's that, that's
- 24:26kind of a path that I, I took initially, you know, Naval
- 24:31Academy and, and the early industry.
- 24:33But with going back to your question that I ever think I'd
- 24:38come back to the family business and the answer was no, no way.
- 24:42Not that I, I respected it. I loved it.
- 24:45In fact, even during the short periods I had in the summer,
- 24:50during summer leave from the Naval Academy, I would work at
- 24:53the park for, you know, even 3 or 4 weeks, you know, run the
- 24:55roller coaster, run Space Odyssey, whatever it was great
- 24:58affinity, very proud, very happy that, you know, they were still
- 25:03surviving after all these years. That's really.
- 25:06Cool. And So what were some of the,
- 25:09you know, post post Navy discharge that that you were
- 25:15doing and and then sort of weave us back to how you got back to
- 25:20the Grossos? Yeah, yeah.
- 25:22So I'll touch on this briefly. You know, had a couple stints.
- 25:25I mentioned I work, went to work in a in the automotive industry,
- 25:28started out in a manufacturing plant.
- 25:30I was basically a team leader is what they called it.
- 25:33I guess they figured if you're, if you can lead a bunch of
- 25:37enlisted men on a ship, you can, you know, lead a, a, a shift, a
- 25:40factory shift. And that was interesting.
- 25:45Learned a lot, learned what I didn't know at the same time I
- 25:48started doing my MBA classes at Michigan at night.
- 25:51So that was kind of, you know, long made for long days and long
- 25:55weeks, you know, working during the day and then going to school
- 25:59at night end up getting promoted down to our corporate office in
- 26:02Livonia, MI. And there I did account
- 26:06management. So we did, I did some program
- 26:10management first, then account management, which is my last job
- 26:12I had, which was, you know, certain products that we sold to
- 26:16whether it was GM, Ford, or you know, whatever car company, you
- 26:20know, I was responsible for a piece of that.
- 26:22So that was interesting. The Automotive World is, you
- 26:28know, there are people who spend their entire careers there.
- 26:31I thought it was fascinating, but I knew that's not what I
- 26:35that's not what I wanted to do long term.
- 26:38I was, you know, going to Business School at night and I
- 26:41had known about management consulting and that really
- 26:43appealed to me, just solving problems, coming up with
- 26:48solutions for companies, whether a strategy, operations and so
- 26:51forth. So when I finished my degree, I
- 26:55ended up going to work for a company called Accenture in
- 26:59their Chicago office. And, you know, it's interesting,
- 27:03you know, you think you're going to have this, you know, life
- 27:05that's going to go a certain way, right?
- 27:06I'm going to be with the consulting firm, retire, you
- 27:10know, maybe in my late 50s, you know, very comfortably.
- 27:14And that's going to be how it goes.
- 27:16Well, there was something that your younger listeners might not
- 27:20remember or maybe they've heard about, calledthe.com bubble,
- 27:23right? I graduated from Michigan in
- 27:262000, right, when this thing was happening.
- 27:29So I was in the strategy practice for Accenture and early
- 27:36that I, my first project was in Germany working with Lufthansa
- 27:39Air Cargo, helping them solve some of their problems over
- 27:42there, which is really interesting.
- 27:44Came back and it was clear the work was starting to dry up and
- 27:48they had a round of layoffs, then another round of layoffs.
- 27:52And then by the time the third round of layoffs, some of us
- 27:55were looking at each other, right?
- 27:56We're all that's left, right? So I, I was able to get a head
- 27:59start and start looking for other work, found work with a
- 28:02company called Booz Allen Hamilton in their government
- 28:05practice in, in McLean, VA. And then later I also worked in
- 28:11the government practice for Deloitte Consulting.
- 28:13So a lot of government projects, you know, work in whether it was
- 28:18like with government agencies or you know, solving process
- 28:22problems, you know, organizational structure
- 28:26problems, etcetera. It was interesting.
- 28:28Frankly, I liked the commercial side a lot better.
- 28:32But coming back to the family business, what happened was in
- 28:3719, I'm sorry, 2005, we were expecting our first child, our
- 28:45only child who's now 19 years old.
- 28:48Her name's Sophia. But we are expecting baby.
- 28:52And I happen to be home for Easter.
- 28:54And my dad said, hey, did you know that so and so is going to
- 28:57retire from their job? A guy named Ralph, he was
- 29:01running our private label sales. And I said, oh, that's
- 29:05interesting, I didn't know that. And he said, you know, we don't
- 29:08know who we're going to fill the place and do you think you'd be
- 29:10interested? And I said, I never in a million
- 29:14years thought about that. So he said, well, why don't you
- 29:16talk to your uncles who are really running the company at
- 29:19that time? And so I did.
- 29:21And for whatever reason they saw on me, you know, maybe it was my
- 29:26consulting work, maybe it was, you know, some other attributes.
- 29:29I'm not sure. But they said, you know, yeah,
- 29:31we, we'd like you to come aboard.
- 29:32What do you think? And I'll be honest, coming from,
- 29:35you know, cities like Chicago and downtown DC and my Navy work
- 29:38in San Diego, coming back to Little Tipton, you know, that
- 29:41was going to be a big lifestyle change.
- 29:44But I talked about it with my wife, who was also from the the
- 29:47area originally. And we thought it would be nice
- 29:51to, you know, to raise a child around, you know, 2 sets of
- 29:54families. And I thought also to myself,
- 29:56well, gosh, you know, maybe there's something I can do to
- 29:59help bring this sauce business to the next level.
- 30:04And so it, it, it's still incredibly interesting to me
- 30:07that it, it kind of took you by surprise.
- 30:10Wow, hadn't really, really truly hadn't thought about coming, you
- 30:14know, back to the family business.
- 30:16And I guess, you know, it just been framed well, you know, from
- 30:19your family early on, Hey, small business, big family, we don't
- 30:22have space for everybody. You guys kind of, you know, have
- 30:24to do your own thing. So as you think about those
- 30:27experiences that you got from, you know, the few years of
- 30:29consulting that you did there, maybe just pick one thing.
- 30:33What's what's one thing that you learned there that you were able
- 30:36to bring into a very different environment in the family
- 30:39business? Yeah.
- 30:41You know, we were, we were so focused on being good
- 30:43manufacturers in this regional brand that, you know, you don't
- 30:48have a lot of inputs other than what kind of comes across your
- 30:51desk, right. So what do you hear from
- 30:53suppliers? You know, what do you hear from
- 30:55maybe some of your customers? But a much more global view is
- 30:59not coming to you automatically, right?
- 31:01We weren't paying for like syndicated data to understand,
- 31:04you know, what were the trends in the marketplace.
- 31:06And in fact, honestly, a lot of things in pasta sauce are
- 31:10traditional, right? You're not always chasing the
- 31:13latest trend. You know, there are some major
- 31:16trends that happened over time very slowly, like size reduction
- 31:19and so forth and ingredients. But you know, some of these
- 31:23bright shiny things, you know, they're, they're not really a
- 31:26factor like they are saying the tech space or, you know, other,
- 31:29other industries. So you know, I would say in
- 31:37terms of just what I brought to the company was just a broader
- 31:42understanding of, you know, a strategic viewpoint.
- 31:45Where do we need to position ourselves?
- 31:47What assets can we bring to bear?
- 31:49What are we good at and where can where is the market headed
- 31:53and where can we best position it.
- 31:54So honestly, it was nothing brilliant, but it was just a
- 31:59different perspective. And so as I understand, part of
- 32:02that different perspective was coming up with a new brand, the
- 32:07higher end brand, La Familia del Grosso.
- 32:09Yeah. So, you know, that was an
- 32:11interesting, I'll never forget. It was a December, early
- 32:14December of it was about two months after I had arrived and I
- 32:20had this big presentation. I was so nervous, right,
- 32:23Because, you know, we had this beloved brand, this regional
- 32:26brand that we had been making at that point for what, over 50
- 32:30years, almost 60 years. And, you know, it was yeah, I
- 32:36knew it was going to be a challenge.
- 32:37So I basically I tried to share as much data as I could and
- 32:41saying like, look, here is, you know, look at some of these
- 32:43brands and look at the retails, right?
- 32:47These were 789 dollar jars of sauce on the in the shelf.
- 32:52And I knew that that was going to be a mind, mind shift from,
- 32:55you know, our dollar dollar fifty sauce, right, You know, 10
- 32:59for 10 on special, you know, dollar fifty everyday kind of
- 33:02thing. So I guess I brought enough data
- 33:06and brought enough facts with me and maybe a little bit of
- 33:08passion that they said, yeah, sure, go ahead if you if you
- 33:11think you can make this work. And I just I just went to town.
- 33:15I really loved it was probably one of the most fun processes
- 33:19I've ever been involved with is creating this brand work with a
- 33:23really skilled designer who also had some great ideas.
- 33:27And this is kind of fun because one of the things I do annually
- 33:32now is I lecture to colleges, whether it's, you know, Penn
- 33:35State pretty much every year and and some other schools across
- 33:37Penn, Pennsylvania. But we do a case study and I
- 33:41kind of present like, OK, we decided in this direction and I
- 33:44kind of throw it back to the students, OK, what, what should
- 33:48this brand be? What should the packaging look
- 33:49like? What should the label read?
- 33:51What should we call it, etcetera, etcetera.
- 33:53And one of the things I do is I show them all of the brands in
- 33:57the, in the speciality or the premium space back then, you
- 34:01know, what they looked like. And I show all these pictures
- 34:03because what I actually did, in fact, is after I got the green
- 34:06light, the first thing I did is I went that back to DC, which is
- 34:10the, the last place I had lived that had, you know, lots of
- 34:13grocery stores, lots of speciality offerings.
- 34:16And I bought $600.00 worth of spaghetti sauce of every brand,
- 34:19every high end brand I could find.
- 34:21And I brought it back and I put it on this big, we have a in our
- 34:25lab, we have all these counters and I had it, everything laid
- 34:28out with the pricing in front, what I paid for it and so forth.
- 34:32And it was a big eye opener for everybody.
- 34:34But the, the thing it allowed me to do was seeing all these
- 34:38brands. What were, what was their
- 34:41approach to branding? So most people know about Reyos,
- 34:45right? That iconic Harlem restaurant,
- 34:47right, That you can't get into unless you know somebody, right?
- 34:51You know, Reyos and a few others had this, you know, we're a,
- 34:54we're a famous restaurant by our sauce, right?
- 34:57You had a whole bunch of brands with a person's face, like a a
- 35:00single person, whether it was like, oh, this is my grandma or
- 35:03this is my mom, or this is like a little peasant girl or this
- 35:07is, you know, some fictitious woman, or it could be like
- 35:10males. It was like this famous chef or
- 35:12this was my grandfather and so forth.
- 35:14There were a lot of those that had a, a single person's picture
- 35:17on it. And then there were there was
- 35:20another sort of category. It just like trying to make it
- 35:23look beautiful, right? With, you know, pictures of like
- 35:26a Italian countryside. Maybe it was kind of like
- 35:29artistic and maybe a little bit like modern looking, but not
- 35:33really storytelling, Just sort of like, here's a beautiful jar.
- 35:37So I put these in front of the students and I said these are
- 35:39these three categories. And I said, here's a question
- 35:41you have to ask yourself. Should we imitate one of these?
- 35:44Should we do a slight different take or should we try to be
- 35:47completely different? Should we have a look that when
- 35:49the customer goes down the aisle, they say that stands out,
- 35:52That is completely different than everybody else.
- 35:55So the students will often give me some, you know, great ideas.
- 35:59They'll say, well, maybe you should put a horse on it for the
- 36:01amusement park. Maybe you should, you know, put
- 36:02a carousel or something. You know, a lot of really fun
- 36:05ideas. What we ended up going with was
- 36:08what we are, the story that we can tell that nobody else can
- 36:11say, which is we're America's oldest family owned sauce maker.
- 36:15Nothing says that better than a multi generational family
- 36:20picture. So when you look at La Familia
- 36:22del Grosso, which is the brand that we came out with, you'll
- 36:26see a family picture on it. But there's another element to
- 36:29it that is unique because you don't just have a marinara or a
- 36:33basil or an RB Otter, so forth. You have Aunt Marianne's Sunday
- 36:38marinara, that's the name on it. You have Uncle Fred's firework
- 36:42sauce, right? So we're telling these stories
- 36:46about the family members. So I'll give you an example.
- 36:48Uncle Fred's firework sauce. Fred was my father.
- 36:51You turn the side of the jar, there's a little portrait of
- 36:54Fred, and there is a short story talking about, you know, each
- 36:58person, their sauce in a tradition or occasion when it
- 37:01was served. So in my dad's case, every 4th
- 37:04of July, we have a big firework show at the amusement park,
- 37:07right? Or we call it Summer Thunder.
- 37:09And my dad would make a special recipe.
- 37:12He would get zucchini from his garden, get some garlic.
- 37:15He'd put some crushed red pepper flakes and white pepper in
- 37:17there, create this slightly spicy sauce.
- 37:20And the whole fireworks crew and the whole family loved it.
- 37:23And they started calling it Uncle Fred's Fireworks Sauce,
- 37:26right? So you take these family
- 37:29traditions, put them in a jar, and you introduce this and you
- 37:33share it with the world. And that was the idea of family
- 37:36traditions. Never tasted so good, right,
- 37:39that, you know, you're not just connecting with a, a flavour,
- 37:43you're connecting with a, a family and a, and a specific
- 37:47person who created that. So that was the, that was the,
- 37:51the line that we came out with with the blessing of the family.
- 37:55And then I had to figure out how to sell it, which was we could
- 37:59have a, we could have an entire hour conversation about, you
- 38:02know, getting your product into grocery stores around the
- 38:06country. But that in and of itself was a
- 38:08big, big learning, learning experience because most of the
- 38:13channels, many of the channels I should say, are not the same as
- 38:17some of the local grocers that we were.
- 38:19We were already in with our original line.
- 38:21OK. So it wasn't like you guys had
- 38:23leverage because of the original brand having the relationships,
- 38:28having the sort of the the name cachet.
- 38:30You guys had to kind of figure out sort of a different
- 38:34distribution model because of the players are a little bit
- 38:36different. So there I I don't want to
- 38:38dismiss this. There was some overlap.
- 38:39So you know, the three larger chains in you know, they were
- 38:42based in Pennsylvania. Yes, that definitely helped,
- 38:45right. They gave me an early look.
- 38:47Some of them were the first to bring us in.
- 38:49So that was very helpful. The other really key piece
- 38:53though was our private label relationships, right?
- 38:56Not always, but sometimes it did allow me to get a foot in the
- 39:00door. So if you look at, well, can't
- 39:02name them, but a large retailer in the Southeast, for instance,
- 39:07you know, we were doing their private label for several years
- 39:09and they granted me an appointment.
- 39:10I have no doubt because we were the private label producer.
- 39:14And I said this is a brand that I think would do real well here.
- 39:17And they're one of our biggest customers to this day with the
- 39:20brand. So that all did help, but most
- 39:23of it I did have to figure out, you know, on my own because, you
- 39:27know, there were these distributors that carry only
- 39:30natural and specialty products. We had no relationship with
- 39:34them. So if I wanted to do business
- 39:36with, you know, you know, chain XY or Z in, you know, Michigan
- 39:42or California or New England, I had to learn this system and
- 39:46understand all these, you know, funny charges.
- 39:48Sometimes you get all of the the slotting fees that you have to
- 39:52pay and how they don't, you know it.
- 39:54There's a lot of things that you think you have a preconception
- 39:57of how they should work and then you find out how they actually
- 39:59do work and it and it's tough. So yeah, it's I get, I get a lot
- 40:04of people always referred to me as like, oh, you should talk to
- 40:06Michael. You know, he, he's been through
- 40:08all this and, and people with new brands and new ideas and,
- 40:11you know, it's a big eye opener for a lot of people.
- 40:14And I talk about some of the expenses that are involved in
- 40:17doing business with not just the distributors, but some of the
- 40:20chains in general. So.
- 40:22Yeah, it was. But it was a great experience.
- 40:24A lot of trade shows, a lot of cold calls, a lot of, you know,
- 40:28chance encounters. So yeah, it it definitely,
- 40:32definitely was a process. And so what's different about
- 40:36the product itself? How was the sauce?
- 40:38That's a good question, right? So what?
- 40:39You know what, how do you differentiate a, you know, a 7-8
- 40:42dollar jar of sauce? In a word, tomatoes.
- 40:47There are other things, but the most important cost factor in a
- 40:51jar of sauce is the type of tomatoes you use.
- 40:54So tomato paste, you can get cheap tomato paste, you can get
- 40:59like better quality tomato paste, right?
- 41:01There's a range, but tomato paste tends to be inexpensive.
- 41:05Diced tomatoes, there's crushed tomatoes, there's ground
- 41:07tomatoes, there are heirloom tomatoes, there are pear
- 41:12tomatoes from California, there are whole plum tomatoes from
- 41:15California, like from the San Marzano region that people are
- 41:18familiar with. So these all have a wide range
- 41:21and those San Marzano style tomatoes are on the priciest
- 41:25side of the equation. So you use that you use all
- 41:29other premium ingredients to go along with that.
- 41:31And yeah, that's that's where you're typically getting your,
- 41:35you know, 789 dollar jars of sauce.
- 41:37Now I will say there are some whether they're celebrity brands
- 41:40or just other people putting, you know, 6-7 dollar price tag
- 41:44on something with tomato paste and diced tomatoes.
- 41:47I'm not sure where that comes from.
- 41:49But yeah, on a, on a high end product like, you know, some of
- 41:53the brands that you may know of or, or ours, La Familito Grosso,
- 41:56yeah, you're, you're getting these this really light fresh
- 41:59flavor from these these whole plum tomatoes from Italy.
- 42:02OK. That was going to be my
- 42:03question. I mean, you're talking about
- 42:04more expensive tomatoes, but clearly they must have a
- 42:07different flavor profile and that's what you're after.
- 42:10Yeah, they do. They're naturally sweet so that
- 42:12you, we don't add any sugar to those recipes.
- 42:15And you know, it's not just the tomatoes themselves, but it's
- 42:17getting them here, right? You buy tomato paste from
- 42:20California arrives on a £3000 tote, like a like almost like a
- 42:26crate looking thing on a rail car.
- 42:28That's a, that's a lot more efficient than a little #10 can
- 42:32that you can hold in your hand. That's coming on a, on a boat
- 42:35from Italy, right? I mean, you know, those
- 42:37transportation costs that a lot too.
- 42:39But it is considered the best tomato in the world.
- 42:41And when you, when you're going after that premium customer,
- 42:45that's what they expect. So yeah, that's what we did.
- 42:48And and it's it's, it's a lot of fun.
- 42:50So you came in kind of one of the first things you did is
- 42:53worked on the La La Familia de Grosso brand, the premium brand
- 42:58that you guys are running with now.
- 43:00And then was it once you created the brand that you sort of
- 43:05shifted into this other role of like being in charge of sort of
- 43:09the whole sales direction of the company?
- 43:11Yeah. So what happened was, you know,
- 43:13initially I was responsible for private label and this, right
- 43:17And I kind of had, you know, created something that I didn't
- 43:19realize would take up so much time.
- 43:22So luckily we had just kind of out of the blue an application
- 43:27for a job that didn't exist from a young woman named Terry Fubio.
- 43:33And Terry now is our Vice President of private label
- 43:36sales, doing a better job than I ever could have.
- 43:39She's so detail oriented, she takes care of our customers so
- 43:42well. And that left me free to put
- 43:45most of my time and effort into growing this specialty brand as
- 43:50well as marketing for overall for the company.
- 43:52So marketing for our original Del Grosso brand, we have a
- 43:55partnership with Penn State, the Penn State Red Zone.
- 43:58So you go to a Penn State game, you'll see a big jar of our
- 44:00original Del Grosso, tip over and fill up the screen with
- 44:04sauce. You know, when when Penn State
- 44:06gets in the red zone, you know, we have, we have things like
- 44:08that. We have events, you know,
- 44:10different parts of the state that we do.
- 44:12So I wear both hats. I think most sane people would
- 44:15divide that into at least a couple people.
- 44:18But I guess, you know, I don't mind having weekend after
- 44:21weekend eaten up by special events and trade shows and, you
- 44:25know, wine and food festivals around the country.
- 44:27So I kind of do a little bit of everything.
- 44:30Say, say more about some of those things you just mentioned
- 44:32like the different festivals and whatnot, because I'm always
- 44:34curious, you know, kind of the growth strategies that different
- 44:38companies find have worked best for them.
- 44:41Yeah, So, you know, if you think of and this going back to these
- 44:44these case studies I give the college students, I actually
- 44:48after we've created the brand, I say to them, all right, let's
- 44:52identify our target customer. So I take them through a whole
- 44:54exercise and we basically come up with this kind of rich foodie
- 44:58mom, you know, profile for the new sauce, right?
- 45:01You know, and, and I say, OK, what are you going to do to get
- 45:05brand awareness with this target customer and how are you going
- 45:09to induce trial? OK, how are you going to gain
- 45:11trial with this customer? So they come up with all kinds
- 45:13of great ideas. I love when college students,
- 45:15you know, put their brains together and, you know, some of
- 45:18them are things we've done, some of the things we haven't, but
- 45:21most of them do. Think of this idea of wine and
- 45:23food festivals, which is something we latched onto pretty
- 45:25early. And there's a couple reasons for
- 45:27that. Number one, your target
- 45:28customer's there, right? If you're going to go to an
- 45:32event where someone's paying $150.00 a ticket to sample food
- 45:35and wine, yeah, they're probably, there's a good chance
- 45:37they're in that target customer of somebody who's going to pay
- 45:39$8 for a jar of sauce. The other thing though, too, is
- 45:45I think we get far more mileage out of an event like that than
- 45:50any normal brand because what is our brand?
- 45:54La Familia, The picture? La Familia, I'm Michael Del
- 45:58Grosso. This is La Familia Del Grosso.
- 46:00You're part of the family, part of the family.
- 46:02So when somebody comes up to a wine and food festival, we don't
- 46:05just give them a, a, a sample and have them walk away.
- 46:08We're like, hi guys. You know, we're the Del
- 46:10Grosso's. I'm Michael.
- 46:11That's my sister, that's my cousin and so forth, right?
- 46:14And it just, you can see the wheels turning.
- 46:15Wait a minute. This is a real company, right?
- 46:18And we have, you know, all the, the portraits of the family
- 46:21members, Uncle Fred's fireworks sauce, Aunt Marianne's marinara,
- 46:24Aunt Linda's Alfredo, you know, on and on.
- 46:26Like all these are all real people, right in the story.
- 46:29So it, it, it becomes real to them.
- 46:31And then they taste the product. Now they have a connection.
- 46:34And I, I know that people, other brands use these types of events
- 46:41to create a connection, but that's our unique connection
- 46:44that nobody else can really do on on that big of a scale.
- 46:48So I'll give you an example. The South Beach Wine and Food
- 46:50Festival, that's the biggest show we do each year.
- 46:54We'll serve almost 5000 people over the course of a few days.
- 46:59And those are just super valuable connections that it's
- 47:05really hard to do it through a marketing campaign, through a,
- 47:07you know, even a digital campaign.
- 47:10No, it's, it's pricey. It's, you know, it's a lot of
- 47:12people you're flying. It's expensive to get people
- 47:15down there to, to sponsor this whole thing.
- 47:18But again, it's what can you do that's number one effective and
- 47:22position yourself in a way that other brands can't.
- 47:25So that's who we are. We're a family still making
- 47:28sauce after 78 years. These are our family recipes.
- 47:32And so, you know, this is who we are, this is what we've got.
- 47:36I'm curious, when you do one of those events like in South Beach
- 47:39that you were mentioning, can you see an uptick in sales in
- 47:44that region in the days or weeks afterwards?
- 47:47Or do you not look at it like that?
- 47:49It's more like the long play of building the brand and just kind
- 47:53of establishing yourselves more and more.
- 47:56Yeah, You know, old advertising used to say you need to make an
- 47:59impression 8 times on people, you know, for it to have an
- 48:02effect, right. I don't know if we we need that
- 48:05many, especially when we have such a powerful one-on-one.
- 48:07But it does say that it is a thing that happens over time,
- 48:12right? It is a process.
- 48:14It's not one and done. I used to have these simplistic
- 48:17equations that I would use. If we can reach X number of
- 48:19people and retain, you know, this fraction of them and they
- 48:22buy, you know, we should see these kind of say, well, gosh, I
- 48:24was I was so I didn't know what I was talking about.
- 48:26I tried to take an educated guess but but.
- 48:28You're bringing in your management.
- 48:29Consulting experience, I was, I was trying to do these case
- 48:32studies, you know that they, they, they throw you in the
- 48:35interviews. But yeah, it wasn't exactly
- 48:37relevant. So, you know, there are things
- 48:39you can do. You can track coupon redemption
- 48:40if you're handing out coupons. You can obviously watch for
- 48:43trends over time, but there are so many other dynamics that are
- 48:47playing that are, you know, that that are coming into it as well.
- 48:51But I want to go back Anthony and and talk about one of the
- 48:55interesting side effects that happened once we created this
- 48:58brand. So I mentioned, you know, a lot
- 49:01of these shows and a lot of more trade shows we are going to.
- 49:04So in the first couple of years, you know we're out trying to get
- 49:08this product out into the marketplace.
- 49:10Right before that we did one major show a year.
- 49:14It was called the private label show pre LMA show in Chicago.
- 49:18And that's where a lot of people looking for Packers will come.
- 49:21You'd have discussions and then the show would be over, right?
- 49:24Sometimes we would get contacted sort of out of the blue by
- 49:27either a a, a retailer or a brand who wanted something done.
- 49:31But that was pretty rare. Well, because I'm now at the
- 49:36fancy food show. Actually, they used to have
- 49:38three fancy food shows. You know, they still have one in
- 49:40New York. They still have one in on the
- 49:42West Coast. They used to have one in
- 49:44Chicago, right. Natural Products Expo W Natural
- 49:47Products Expo East various distributor trade show.
- 49:51So you know, in, in in our peak, you know, say going back 10
- 49:55years, 1215 years ago, you know, I was doing probably 1 trade
- 49:59show a month. I mean, it was really a lot, but
- 50:03an interesting thing started to happen.
- 50:05We were more visible. So there was a very large
- 50:12company that everybody's heard of that came to us at one of
- 50:15these shows. It was actually in Chicago and
- 50:17it was me. And they said, do you guys pack
- 50:19this kind of product? And I said, yeah, we do.
- 50:22And OK, we, you know, we're we're searching for another Co
- 50:26Packer. We'd like to, you know, just,
- 50:28you know, we're gathering some information.
- 50:30OK, let let's let's bring in, let's have you come to our
- 50:33factory. Well, they eventually did and
- 50:35that led to our single biggest contract that we've ever had
- 50:38with a big brand, right? And what this brand brought in
- 50:43to us though, was a level of expertise because they had a
- 50:46whole team, because they have supplier, they have probably
- 50:48dozens, if not 100 suppliers around the country that they,
- 50:53you know, this management manufacturing team works with.
- 50:55So they were able to say, hey, this part of your process, we'd
- 50:59like you to do this. We'd like you to have an X-ray
- 51:01here and not just here, we'd like you to have XY.
- 51:04So they've really elevated our process.
- 51:07They not only gave us more volume, but they gave us more
- 51:10expertise, right? Well, that creates A virtuous
- 51:13cycle now because now you've got attention from other people who
- 51:18maybe thought you were too small for them or so.
- 51:23I guess the point is coming out with this brand, yes, it was
- 51:26good margins, good sales for it's time.
- 51:29But what really happened is it got us a lot of attention.
- 51:32So you start to Fast forward now throughout the next 15 years,
- 51:37right, Not only did our volume in our red sauce increase, but
- 51:40we started getting a lot of interest in other products which
- 51:43we couldn't make unfortunately at the time.
- 51:46So the big thing in red sauce and tomatoes is they're acidic,
- 51:51right? They have a low pH and they're,
- 51:55the process you use is something called hot fill and hold.
- 51:59As long as you fill a jar at a certain temperature, a little
- 52:02over 190° and hold it for a short period of time, right and,
- 52:06and slowly cool it, bacteria won't grow in that jar.
- 52:09It's a safe product. OK, so there's a lot of people
- 52:13who do that in North America, right?
- 52:15A lot of sauce makers, salsa makers, other types of acidic
- 52:19products. It is, I'm not going to say it's
- 52:20easy, but it's not super technical.
- 52:23As long as you have the basics and you have you control for
- 52:26these different points, you can do it.
- 52:28So then it's a matter of can you create, you know, product that
- 52:33that number 1 is a good formulation.
- 52:34Can you do it consistently? Can you do it on time and all
- 52:37those other things that any business has to do.
- 52:40But then there's another type of sauce that needs something
- 52:43called a retort process. So the big question we always
- 52:48get is can you make Alfredo? Will you make an Alfredo?
- 52:52And this is a massive investment, right?
- 52:54Because if you think of all the parts you need to make a red
- 52:57sauce factory, right? You need all those, plus you
- 52:59need this extra really big technical, expensive part in the
- 53:05middle, and it's called a retort.
- 53:07What's a retort? So the way I describe it is when
- 53:10you're making red sauce, you have to cook the sauce once.
- 53:13You cook it in a kettle, which we use kettles.
- 53:15There are other ways to do it, but we think kettle cooking is
- 53:18more authentic and tastes better.
- 53:20Cook in a kettle, you fill the jar, you're done.
- 53:22God, I mean, that's simplistic, right?
- 53:24In a retort process, you have to cook the product twice.
- 53:27You cook it in the kettle, you fill the jar, cap the jar, and
- 53:31then after that jar is filled in cap, you have to cook it again
- 53:35for a long period of time, often like 30 to 40 minutes.
- 53:40So if you've ever kind of walked into somebody's canning, like
- 53:43your grandma and my mom still cans each year, she cans
- 53:46Peaches, right? And you'll, you'll see a big
- 53:48boiling, you know, pot of that on the stove, you know, and she
- 53:52has these, you know, jars with the lids, you know, cooking
- 53:54there. That's what they're doing.
- 53:54They're basically they're retorting and can I ask?
- 53:57You real quick, Michael, why do you have to do this sort of
- 54:00second cooking process? Yeah.
- 54:02So for the bacteria or is. It because that's exactly right.
- 54:06So even if you fill it and you're, you know, everything's
- 54:10sterile at the time, right? Bacteria will grow.
- 54:13So you have to continue cooking an Alfredo or a queso dip or,
- 54:17you know, so many other types of products.
- 54:19You have to continue cooking that to kill any bacteria that
- 54:22could grow. Then it becomes shelf stable.
- 54:24So what does a retort look like? Imagine a big stainless steel
- 54:28torpedo tube. OK, the Hatch opens and racks of
- 54:33racks and racks of this product go in, right?
- 54:35the Hatch closes, it fills up basically a hot water bath, and
- 54:39the whole the whole system rotates.
- 54:43So the product is turning upside down and at a slow rate of
- 54:46speed. But the little air bubble at the
- 54:48top of the jar is basically acting as a as a ladle or, you
- 54:52know, a spoon. It's stirring and it's stirring.
- 54:54All the sauce inside gets evenly heated.
- 54:56That's exactly good, good point. Because if you, if you hold it
- 55:00steady, you might have scorching on the outside and then and it's
- 55:03not cooked evenly. You're exactly right.
- 55:05Once that's done, it comes back out and then it kind of resumes
- 55:08a normal, you know, labeling and tray packing and so forth
- 55:12process. So why do I go into all that?
- 55:16Because we've been, we, we've had that request for so, so many
- 55:21years. That was never I, I don't want
- 55:24to say safe enough, but you know, it's a risky investment,
- 55:26right? So we had a couple big companies
- 55:30come to us and give us a volume commitments.
- 55:32This is about four, almost four years ago.
- 55:35And as a board, you know, it was a big discussion.
- 55:40You know, this is going to be a $70 million project.
- 55:43Wow, which I will tell you, for a company our size was massive.
- 55:49This was, you know, even for our size, probably as as big as it
- 55:54was to build that original plant back in the 1970s.
- 55:57Now you could argue that the risk was lower because we had
- 56:00some commitment. So it sure was, but still that
- 56:03kind of money was it's a. Lot of cash up.
- 56:06Front it is, it is. So you know we work with our
- 56:08good, great banking partners and so forth and got this up and
- 56:11running. That was two years ago Anthony.
- 56:15I will tell you what's happened in the last.
- 56:18So we are now 78 years old as a company for a 78 year old
- 56:23company to double in size within a space of two years is almost
- 56:29unheard of and but that's what's happened.
- 56:32So what's interesting is while the brand that you know, I
- 56:37helped create and and piloted, while that got us a lot of
- 56:40attention and, and the marketplace and it it certainly
- 56:43helped us, you know, especially at a key period with, you know,
- 56:46good margins, better financial positioning and so forth.
- 56:49It's been what's happened since then, the increased private
- 56:53label business, additional Co packing and then culminating in
- 56:57this most recent expansion, the biggest in our history, of
- 57:01course. And it it's, it's dramatic to
- 57:05say the least. You know, you go from, gosh, you
- 57:09know, 8090 employees to now 185 over the course of two years and
- 57:15you have a second plant now the, the second plant is just down
- 57:18the road. It's only 6 miles down the road.
- 57:20So everything's still relatively local.
- 57:22But I, you know, I'll just say it, it's, it's a dramatic
- 57:25transformation. Still family run.
- 57:28My Uncle Joe is still our CEO. My cousin Matt is still our COO,
- 57:32My cousin Joey still does the tomato purchasing and he's
- 57:35moving into different parts. You know, I'm still doing this.
- 57:37But we have so many talented people and we have for decades.
- 57:41And there are, there are some, you know, farther some people
- 57:44between them, you know, they've been maybe work for 50-60 years,
- 57:49you know, between the two of them.
- 57:51So we have a lot of longevity, a lot of technical people.
- 57:55And but you know, of course you're bringing a lot of new
- 57:57people when you're expanding that much.
- 57:59So how's that going to go, right?
- 58:01You hear all these horror stories about, you know, younger
- 58:04people don't want to work and so forth.
- 58:05And sure, you have some turnover, you have some
- 58:08challenges, but what this team has done with this new plant has
- 58:13been nothing short of remarkable.
- 58:14And my cousin Matt, our COO, it was really the one who kind of
- 58:18stood this up and got it running and, and where it is today.
- 58:22So, you know, it, it's been dramatic.
- 58:25And interestingly, at a time when we're on the branded side,
- 58:29not the original Del Grossa brand, but on the speciality
- 58:31side, you know, we're now facing you.
- 58:35You know, I'm sure you've heard of Reyos, right?
- 58:38Yeah. So they have been number one in
- 58:40that space for a long time. In the high end space, they're
- 58:44just now number one, period. If you look at the dollar sales
- 58:47of any pasta sauce in America, Reyos is #1 it's no wonder
- 58:51Campbell's paid $2.7 billion for them two years ago, right?
- 58:55So they've been owned by Campbell's, you know, after they
- 58:58went through their private equity, you know, ownership
- 59:00phase. So they, and then, and then you
- 59:03see other people, they're like, well, gosh, look at that, you
- 59:06know, 2.7 billion, if I can get a fraction of that.
- 59:09So you have a lot of people really scrambling.
- 59:11You know, you, you have kind of Rayo's two point O and a company
- 59:14called Carbone, right? The famous restaurant in New
- 59:16York. And they have other locations
- 59:18around the country. You know, they're, they're kind
- 59:20of following the same model and spending, you know, just big,
- 59:24big money. So, you know, it's interesting.
- 59:27There are several, you know, there are probably 100 brands in
- 59:29the high end and we're one of them.
- 59:31You know, we're probably in the top 10, but you know, we're just
- 59:34one of many and we're all kind of feeling the squeeze of these
- 59:37big spends by these much bigger brands.
- 59:41So that's been interesting. And you have to say, well, you
- 59:45know, thankfully we have this, you know, massive growth on the
- 59:50private label and Co packing part of our business.
- 59:52Now. It was all, it's always been
- 59:55there for the last, since the 80s.
- 59:56But now it's, you know, so substantial that, you know, the
- 1:00:01worry is more just about making sure every business unit is
- 1:00:05profitable in its own right, right.
- 1:00:07You're not asking one part to carry the business entirely.
- 1:00:10So that's that it's, it's an interesting place where we are
- 1:00:14because overall growth in the company is never been better.
- 1:00:18But that specialty brand, you know, I am now like fighting
- 1:00:22like crazy, you know, to, to stay, make sure we're staying
- 1:00:25relevant, staying on the shelves, you know, and, and, and
- 1:00:28stay noticed. That's tremendous growth.
- 1:00:31I mean a business that's over 70 years old, family owned business
- 1:00:35and like you said, just in the last two years doubled in size
- 1:00:39is almost unheard of. And I'm sure there are a lot of
- 1:00:42people listening and they're like, wow, like tremendous, like
- 1:00:45amazing. But we all know what life is,
- 1:00:48right? Life comes with struggles and
- 1:00:50ups and downs and bumps in the road.
- 1:00:52I'd be curious to kind of take a little side Rd. here and hear
- 1:00:55about a serious challenge that you've overcome somewhere along
- 1:00:58the way. How'd you get through it?
- 1:01:01Yeah, You know, it's been interesting, you know, starting
- 1:01:03out in this brand, you know, there were so many things that
- 1:01:06I, I say I had to figure out myself.
- 1:01:07But I did ask around a lot, you know, because I had to learn
- 1:01:11very quickly. And I, I found myself at the
- 1:01:14beginning thinking like, gosh, you know, I'm never going to get
- 1:01:17this off the ground. This is, this is a nice idea,
- 1:01:19but holy smokes, what am I, what am I thinking?
- 1:01:22I don't have all these relationships.
- 1:01:23I don't have these broker and distributor relationships.
- 1:01:27And there were sometimes early on where I'm thinking, what in
- 1:01:30the world did I even do this for?
- 1:01:33This is a, this is a failed experiment, you know, but I
- 1:01:37think there's just a matter of you have to give it time.
- 1:01:40And luckily we did have an early enough successes with some of
- 1:01:44our big customers that have that have stayed with us that that
- 1:01:48had, you know, it, it, it, it sold itself to fruition.
- 1:01:52And oddly, I'm now back with the situation I just described as it
- 1:01:57like a new challenge, a new, you know, I, I'm not going to call
- 1:02:01it a failure by any stretch, but like a massive challenge, right?
- 1:02:04So what lessons did I learn from the first time?
- 1:02:07You know, what lessons can I draw from other experiences I
- 1:02:10have to get to get through this time with our brand, knowing
- 1:02:13that the company is doing great, But you know, you still care
- 1:02:16about this brand, you want it to do well.
- 1:02:19And you have these massive brands that are just spending
- 1:02:22like crazy and kind of sucking all the air out of the room for
- 1:02:26for many of the other brands, you know, on the personal side,
- 1:02:30you know, to Draw Something from my life there, it's relevant to
- 1:02:35business as well. You know, I about 8 years ago I
- 1:02:38got into the sport of triathlon and many people who know
- 1:02:43triathlete know that, you know, this takes a lot of time,
- 1:02:46effort, you know, on a typical, you know, time period, you know,
- 1:02:51you're maybe training 8/10/12 hours a week, you know, some,
- 1:02:54some weeks, you know, maybe up to 1516 hours.
- 1:02:58So it's a lot of time and effort.
- 1:03:00So you get to a race and you know, you want it to go well.
- 1:03:04Well, I have had not one, but two really bad accidents,
- 1:03:09neither one of them my fault. The first one was about 3 years
- 1:03:13ago. I was at a triathlon down in
- 1:03:15North Carolina and on triathlon bikes they're they're shaped a
- 1:03:19little funny. On the handlebars you have these
- 1:03:21arrow bars that stick out. You put your elbows down, you're
- 1:03:23kind of hunched down and arrow position.
- 1:03:26Halfway through the bike my left arrow bar just snapped, snapped
- 1:03:30right off and lost control and I remember just something going to
- 1:03:37slow motion and I remember waking up in an ambulance.
- 1:03:42I was unconscious according to my Garmin which was tracking the
- 1:03:45whole thing. I was unconscious for about 12
- 1:03:48minutes and I had a pretty bad concussion and so forth but
- 1:03:54nothing major long term which is great.
- 1:03:58Well Fast forward a year and a half.
- 1:04:01This time my wife was at the race with me because of the
- 1:04:04situation before. I'm on the bike again, passing
- 1:04:10by an aid station and the guy in front of me was trying to stay
- 1:04:15out of the way of somebody else. He ended up running over a
- 1:04:17traffic cone. Now he sailed right through the
- 1:04:20through the the cone, right? And it was fun, but it popped up
- 1:04:25and ran right into my wheel and I took a spill again.
- 1:04:29And you know this one, I flipped over the handlebars and I
- 1:04:33immediately knew something was wrong.
- 1:04:36Turns out in the hospital they told me I had 6 fractured ribs
- 1:04:40and a collapsed lung. So that resolved itself only a
- 1:04:46couple weeks later when I the lung collapsed again back home.
- 1:04:49When I finally got home and they had to put a, a chest tube in
- 1:04:53me. That was demoralizing.
- 1:04:55I'm not going to I'm not going to lie.
- 1:04:57And I thought of maybe never doing triathlon again.
- 1:05:01And, you know, the other thing that happened, though, is when I
- 1:05:04got kind of down in the dumps, I let all my healthy habits slip,
- 1:05:08whether it's eating well or just moving and so forth, you know,
- 1:05:11put on a bunch of weight and so forth.
- 1:05:13And you know, I kind of got through the initial injury
- 1:05:17phase, but left realizing like, OK, I realize you're upset,
- 1:05:23you're challenged, but you didn't do everything you could.
- 1:05:26So it's when you, when things aren't going your way, are you
- 1:05:29going to just fold and just let yourself go say, oh, there's
- 1:05:33nothing I can do? This didn't work out for me?
- 1:05:35Or are you going to say, I'm going to do what I can do?
- 1:05:39You know, I, I, I can't remember who had the quote, but it was
- 1:05:42nobody makes a greater mistake than the person who does nothing
- 1:05:45because they could only do a little.
- 1:05:47And I think that applies to honestly, you know, the the
- 1:05:51challenges we're facing right now with making sure our brand
- 1:05:54stays relevant, stays on shelves, is that, you know, you
- 1:05:58got to do what you can. You got to be innovative.
- 1:06:00You got to think of ways that you smarter that you can, you
- 1:06:03know, you can do what these big brands can't, right?
- 1:06:06So kind of some of the basics you do and generating interest
- 1:06:11that way. So, yeah, those are a couple,
- 1:06:14couple instances that were very painful physically and and
- 1:06:18otherwise that I had to get through and how it relates to
- 1:06:20business. Yeah, I appreciate you sharing
- 1:06:23that. I I can imagine, I mean, you
- 1:06:25have one big spill, you're unconscious for 12 minutes,
- 1:06:28concussion. That's a big deal in itself.
- 1:06:32You still get back up on the bike.
- 1:06:33You still get back into the, you know, the triathlon.
- 1:06:37And I can, you know, as I hear you talk about, I can sense the
- 1:06:39passion there. It was a big part of who you
- 1:06:42were, what you enjoyed doing. It gave you another sense of
- 1:06:44drive and purpose aside from, you know, your work and your
- 1:06:47family. And now, you know, with the
- 1:06:50second spill, it was like, wow, this feels like, probably felt
- 1:06:55like part of your identity had been taken from you.
- 1:06:57And like, this was a big part of who I was and what I did and,
- 1:07:01and, and why I got out of bed in the morning and and now that's
- 1:07:03gone. And and so, yeah, you, you, you
- 1:07:06fell into a slump, right? And eventually you found a way
- 1:07:10to pick yourself up, dust yourself off.
- 1:07:13And what was it you said? I'm going to do what I can.
- 1:07:17And nobody makes a bigger mistake than the people who do
- 1:07:20nothing. I think those are strong words
- 1:07:23to live by. What?
- 1:07:24What's your physical health like today, Michael?
- 1:07:28Yeah. So, you know, other than some,
- 1:07:30you know, recent respiratory infection stuff that's unrelated
- 1:07:35to those accidents, you know, I'm, I'm back training now,
- 1:07:38looking at some triathlons this summer and maybe a big one down
- 1:07:41to Daytona in December. So that's exciting.
- 1:07:44And just got a new gravel bike, you know, for all these mountain
- 1:07:48roads we have around here. So that'll be fun to do some
- 1:07:52writing with my wife on the weekends with that.
- 1:07:55I was going to ask, how does your wife feel about you getting
- 1:07:57back into it? I think if I told her I was
- 1:08:00never going to do triathlon again she would not mind, but
- 1:08:04she understands its place in my heart and I think she'll always
- 1:08:08want to try to be there when I'm racing when she can.
- 1:08:11That's a good partner that you found there, Michael.
- 1:08:14So I've just got one more question for you, Michael.
- 1:08:16But before I ask it, I want to do 2 things.
- 1:08:18First of all, I want to invite all our listeners here to hit
- 1:08:21the follow button on their favorite podcast app so you can
- 1:08:23continue to get more great interviews like we've had today
- 1:08:26with Michael Delgrosso. Also going to let people know
- 1:08:29the best way to get in touch with you or the brand.
- 1:08:32What would that be, Michael? Sure, you know our brand.
- 1:08:36You can visit our website ofcoursedelgrossosauce.com or
- 1:08:40you can visit all of our companies amusement park and our
- 1:08:44sauce factory and so forth by going to delgrossos.com and then
- 1:08:51Instagram and Facebook. You can type in Del Grosso dish,
- 1:08:55right? They'll get a lot of good
- 1:08:56recipes and some fun stuff there.
- 1:08:58Me personally, LinkedIn, Michael Del Grosso and LinkedIn is
- 1:09:02probably the best way to track me down.
- 1:09:05If you have any questions or any any thoughts you want to share,
- 1:09:08I'd be happy to entertain that. That's great.
- 1:09:12Last question for you, Michael. Obviously we've heard about a
- 1:09:15lot of exciting changes just in the last two years as you look.
- 1:09:20Forward. In the next two to three years
- 1:09:23coming, what are the big changes in the future that you're really
- 1:09:27excited about? Yeah.
- 1:09:29You know, I think the fact that we were able to do what we've
- 1:09:34accomplished in the last two years has given us a lot of
- 1:09:39encouragement that we can do big things.
- 1:09:42Now the last thing we want to do is, you know, 2 years from now
- 1:09:46make another massive, you know, new factory investment or
- 1:09:50something like that. So I think what has given us
- 1:09:53success is everyday consistency and operating with integrity.
- 1:09:58And those are very much our family values always being there
- 1:10:04for our customers. Don't we can just day after day
- 1:10:07doing the boring stuff really well because let's face it, you
- 1:10:10know, making anything, even if it's something as delicious as
- 1:10:14spaghetti sauce, you know, it's not glamorous, right?
- 1:10:16It's not, you know, getting all this attention like, you know,
- 1:10:21tech companies or finance or, you know, some of the some of
- 1:10:25the other things that, you know, people follow on on social
- 1:10:28media, right. So I look forward to the, you
- 1:10:32know, us leveraging that reputation, our new found
- 1:10:37capacity and expertise in this new factory and again, just
- 1:10:41slowly advancing that as we've done.
- 1:10:43You know, it's funny people say about triathlon like, well,
- 1:10:46what's the key? You know, what's, you know, what
- 1:10:48are the secrets and so forth. It's just consistency.
- 1:10:51It's day in and day out. It's not doing the big hero
- 1:10:53sessions that you can post on Instagram and look like look
- 1:10:57what I did. I did a 12 hour, you know,
- 1:10:58session of this or you know, 7 hour bike ride today.
- 1:11:02I mean, those are fine, but it's really what makes the difference
- 1:11:06is small things every single day.
- 1:11:09What makes a difference in business, whether it's sauce
- 1:11:12making or anything else, is this doing the small things extremely
- 1:11:15well every day, taking care of your customers, making sure that
- 1:11:18you're delivering on your promises.
- 1:11:20And yeah, so that we have that awesome foundation, amazing
- 1:11:25people working in our organization, on our team, and
- 1:11:27I'm really excited about what the future holds.
- 1:11:29You know, and, and I think I, I want to point something out here
- 1:11:32that that may have gotten a little bit overlooked in you
- 1:11:35telling your story. The fact that some of your
- 1:11:38customers kept coming to you and asking you to get into this new
- 1:11:42line of work that they knew was completely different from what
- 1:11:46you were already doing. And they knew that it was going
- 1:11:48to take a giant investment rather than going to people who
- 1:11:53are well established in the space.
- 1:11:55And taking their business to them, I suspect, says a lot
- 1:11:59about what they saw in the quality of the work that you
- 1:12:02guys do. Yeah, I, I, I think that's a,
- 1:12:05it's a nice compliment and I think that's fair to say.
- 1:12:08You know, our, you know, the family leadership, you know,
- 1:12:11the, the people in there every day that you know, whether in
- 1:12:15the quality people in the lab, people writing, you know, taking
- 1:12:17orders, people communicating with the customers, even down to
- 1:12:21people in accounting and, and every other specialty we have.
- 1:12:23Like these are people who care immensely about what they do.
- 1:12:28And you know, I, I think of people say, well, what's it
- 1:12:31like, you know, the family side of it?
- 1:12:33And I said, you know, it's funny because my, my aunt Linda, who's
- 1:12:37retired, she brings food in for the employees.
- 1:12:39My uncle Joe Saturday when, you know, often it's not uncommon
- 1:12:43for him to be making food for the employees.
- 1:12:44And he's the CEO of the company, right?
- 1:12:47And he'll often be making food for people working on Saturday
- 1:12:49or so. So it, it's, it's all those
- 1:12:54things that really just mean so much and, and that make a
- 1:12:57difference in the end. So I think that has translated.
- 1:13:00I think that has translated people feeling like they're part
- 1:13:02of something bigger and we're really lucky.
- 1:13:06We're really lucky to have the people we have.
- 1:13:09Michael, I want to be the first one to thank you for sharing
- 1:13:11both your time and your story with all of us today.
- 1:13:14I really appreciate it. Well, it's been a pleasure, It's
- 1:13:17been enjoyable. Thanks for your, your podcast.
- 1:13:19It's been able to listen to many episodes and, and, and you're,
- 1:13:23you're getting good content out there and a lot of good lessons
- 1:13:26that we can all learn. I appreciate those kind words,
- 1:13:29Michael. Thank you, folks.
- 1:13:31That's a wrap on another episode of the Inspired Stories podcast.
- 1:13:34Thanks for learning with us today.