Tuesday, October 18, 2005

Farm-To-Fork with Deja Moo

This article is part of a series of briefs that I wrote documenting Bon Appétit Management Company's Farm-To-Fork program.

Deja Moo – Bon Appétit Farm Brief

When Jim Odney dissolved the Schultz Creamery in Bismarck, North Dakota in the fall of 2004, he had come to accept the fact that it was nearly impossible for small dairies to exist in the modern dairy market. He had established Schultz Creamery as a thriving, innovative, small dairy only to see his customer base disappear virtually overnight. “Basically, the large dairy conglomerates bought up all of my shelf space” he explains. “Without anywhere to sell our product we were dead in the water. I came to the realization that a small dairy’s only chance for survival in the modern market would be to create a product based on the principles of quality, taste, and respect for the cows that produce the milk.”

The modern dairy industry has staked its future on developing methodologies and technologies for producing the maximum amount of milk in the shortest time possible. Thus, most dairies employ hormones, especially rBGH (recombinant bovine growth hormone), to stimulate milk production in their cows, and they process their milk at high temperatures in order to cut processing time to a minimum. Although this production method is highly cost effective, it robs the resultant milk of a great deal of its nutritional value and sacrifices the fresh taste that is prevalent in less processed milk. As a result of the industry’s steadfast focus on finding production efficiencies, the modern milk supply has become more plentiful, less flavorful, and less healthful.

In January of 2005, Odney decided to revive his dairy and to market Deja Moo, a milk that is free of both antibiotics and hormones. While most large dairies have a small line of hormone-free offerings, Odney’s entire product line would be hormone-free. He would also make maximizing the fresh taste and healthfulness of his milk the foundation of his new dairy’s culture. Contrary to conventional business principles, he would use cold separation technology to allow him to process his milk at colder temperatures in order to preserve its fresh taste. Since he would be at a major competitive disadvantage, he knew that he would have to forge partnerships with discerning customers who could not only respect the principles upon which his product was built but who could also buy large volumes of his product.

“When I was writing our business plan I knew that I needed some concrete prospects and projections to get the necessary financing to reopen the plant,” Odney explains. “After discovering Bon Appétit and the Farm To Fork program, I realized that they represented our best chance for success.”

Odney contacted Bon Appétit and began working with David Toay, Regional Vice President for the Midwest. After meeting with Toay and a team of Bon Appétit chefs, Odney secured a commitment to provide Deja Moo milk to over twenty Bon Appétit accounts, which served as the basis for securing the funding necessary to reopen the plant. “Essentially, Bon Appétit’s commitment to sourcing hormone-free milk and to supporting family farmers made this whole deal happen,” Odney says, “Without Farm To Fork there would be no Deja Moo.”

The dairy reopened in February of 2005 and began shipping milk immediately. So far, the collaboration has been wildly successful. “Deja Moo has really struck a chord amongst our customers,” says Bon Appétit’s Donald Holmblad, Executive Chef of Sandy’s Place at Best Buy Corporate Headquarters in Richfield, Minnesota. “Many of them have commented that they have never tasted such good milk. Our customers have really connected with the Deja Moo brand.” Odney says that Bon Appétit currently accounts for over 90% of his sales, “Without a doubt, they have been the most solid piece of my business.”

Bon Appétit is currently utilizing Deja Moo milk not only in culinary applications and in its beverage services, but is also selling it as a bottled item in its beverage coolers. “We are committed to using Deja Moo everywhere possible,” says David Toay, “we are also committed to expanding our use of hormone-free dairy products and we hope that Deja Moo can provide us with more of these products as well.”

For Odney and Deja Moo, working with Bon Appétit provides not only a much-needed flow of revenue, but also a proof of concept that can be leveraged to create other business opportunities, especially in the retail arena. “My work with Bon Appétit has brought Deja Moo into the kitchens of many of the most respected corporations and universities in our region,” Odney explains. “We lost our business the first time because retailers did not believe in the viability of the hormone-free concept. Now, when retailers ask me where our milk is being sold, I can tell them that we are in the corporate offices of Target, Best Buy, and the Carlson Companies. This has forced our region’s retailers to take our business seriously and this is changing the tide for us. If we can crack the retail market, it will be because Bon Appétit made the opportunity for us.”

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1 Comments:

At 12:28 PM, Blogger Unknown said...

Dear Mr. Kenny,
I wish I had read your story on Deja Moo back in 2005. My name is Marylin Schultz. My former father-in-law estblished the Creamery in the 1920's, and my husband, John was the owner-operator until we divorced in 1997, at which time, I sold the Creamery, which was doing very well,) to Odney, who then managed it so poorly, and borrowed so much money, that I never even received all of the down payment for the place! The last million dollar loan given to him by a local Bismarck bank was made under the stipulation that I relinquish any rights to reimbursement. Since I wanted the business to succeed, I gave up my rights, The bank foreclosed on Odney, so I lost everything. Odney simply quit making payments to me back in 2000. He never apologized or gave me any explanation.
I am now a 70 yr. old woman, alone and having to work full time, instead of enjoying the retirement that the sale of the Creamery was supposed to provide. If Odney is now making money I wish him well, but it sure would have been nice if he had honored his contract and commitment to me, and shared some of that wealth with me and/or my five children! Interesting, right? If you wish to reply to me, my email address is:
marylin.schultz@gmail.com.

 

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