Big Grower January 2019 - 4

With Costco being the company's largest customer, there is a lot of
trucking involved.
" We service well over 100 Costcos, " says Costamagna. " We're traveling
as far south to Tallahassee. We go all the way back into Austin, Texas, and
we go up to Illinois and back across to New York. It's a pretty large region
that we serve, but where we're located, we're kind of in the epicenter. "
Other customers include Lidl, a German-owned grocery chain that has
emerged over the past couple of years but continues to expand, and Food
City, a regional grocery chain.
Lidl is American Color's newest customer, having come on just two
years ago. " In Germany, Lidl is one of the largest grocery store chains, "
shares Costamagna. " They recently (in the last two years) made northern
Virginia their North American headquarters. "
For American Color, it's been a valuable addition for multiple reasons.
At a shipping level, they can ship directly to Lidl's distribution centers
located right in Virginia. At a production level, they offer a different
product than other customers. " Their product line is narrow and deep but
also high end at a very competitive retail price point, " says Costamagna.
" When you look at their beer and wine selection, it's very similar to a
retailer like Trader Joe's. With that, they have bouquets and pot plants
and seasonal crops. "
And they are on an impressively fast growth pattern, with about 65
stores in the region currently and nearly a dozen coming on board in the
coming months.
The company also does a fair amount of contract growing for Metrolina
in North Carolina, Battlefield Farms in Virginia, Bell Nursery in Maryland,
and Fernlea Flowers in Ontario, Canada. With those big names servicing
customers like Lowe's, Walmart and Home Depot, American Color must
keep competition in mind and crossover in SKUs must be avoided.
" At the end of the day, we just have to break down the individual
customers, whether they are American Color or contract, " says Costamagna.
" Next thing you know, we really have 12 to 15 customers when you look
at the SKU level. We try to keep the product categories separate. "
The company specializes in annuals, but also grows vegetables
and some perennials.
American Color owns its own fleet of trucks and trailers, and ships
to destinations as far as 900 miles.
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Big Grower January 2019

Table of Contents for the Digital Edition of Big Grower January 2019

Big Grower January 2019 - 1
Big Grower January 2019 - 2
Big Grower January 2019 - 3
Big Grower January 2019 - 4
Big Grower January 2019 - 5
Big Grower January 2019 - 6
Big Grower January 2019 - 7
Big Grower January 2019 - 8
Big Grower January 2019 - 9
Big Grower January 2019 - 10
Big Grower January 2019 - 11
Big Grower January 2019 - 12