Good relationship with growers key for 155 years of Oppy
Partnership Model
“Oppenheimer is a one-stop-shop for retail partners,” said Oppy's Jason Fung. “For them to work with us in that way is unique in North American produce.” As a supplier of fresh produce, they work with growers to secure year-round supplies of fresh fruits and vegetables for retailers throughout North America. That means partnering with growers to provide a wide variety of products. That's beneficial for both growers and retailers because retailers have access to a wide product array from one provider and growers benefit from the marketing and logistics services Oppy has been perfecting throughout its existence.
“Operationally, it's to the advantage of growers to have a partner in the market that handles quality control, transportation, marketing services and packaging,” said Fung. “They don't have the economies of scale we can bring.” Those economies of scale grease the supply chain wheels in order to get products from the growers to retailers in the shortest amount of time.
“Our goal is to turn around fresh produce as quickly as possible,” said Fung. “We expedite that process.” But apart from providing logistics, Oppy also fosters deep relationships with growers.
Growers First
“We're grower-focused,” explained Fung. “Our number one strategic advantage is that we partner with growers, we invest in them, we have joint ventures with them, we offer them pre-season financing, and then we'll go out and sell those programs.” With an eye to retail and consumer trends and preferences, they focus on securing the best product. Then, they then approach their retailer network to optimize the markets for those products.
“Our strategy has always been to partner with the best growers from around the world,” said Fung. “The growers we work with are the top tier ones who do a great job of growing, so with Oppy focusing on the marketing and distribution side, they can stick to what they do best.” Oppy brings their marketing acumen to all of the products their growers produce, which Fung referred to as marketing the whole tree. By dealing with all sizes and grades of produce from their grower partners, not only can they guarantee their growers access to ready markets but they can also build their product portfolio, which is attractive to retail partners.
But putting growers first goes beyond simply marketing. Recently, noting that Sun Select, one of Oppy's grower partners, engaged in many practices that bettered their workforce and brought social benefits, they worked with them to secure Fair Trade certification.
“Sun Select was doing all the right things, Fair Trade certification was just them getting recognition for it,” said Fung. “It was an opportunity to call out all of the great work they're doing, especially in providing fair wages and healthcare to their workers from Guatemala―while formalizing the investment in communities back home through Fair Trade premiums.” The certification was just an extra bit that reflected the work being done while also giving Sun Select added differentiation in the market.
Working with growers also means joint ventures that improve growing techniques. Fung highlighted Sun Select's new greenhouse facility in Tehachapi, California that collects carbon dioxide for re-use in a closed loop system.
“We have investments in some growers, but we also loan money so growers can expand,” said Fung. “So we have a financial stake with growers beyond just the sale of products.”
Boots on the Ground
The way Oppy functions requires market knowledge and deep, consistent interaction with all of their partners. For that reason, they have offices throughout North America and agents throughout the world. Fung explained that this fosters connections and keeps them on top of emerging trends. Keeping abreast of innovations has allowed them to be the first to market with many noteworthy products.
“We introduced the first ever Granny Smith apples to North America, we were the first to import kiwifruit to Canada, we established one of the first large-scale Chilean fruit shipping programs and, with Zespri International, we gave North Americans their first taste of gold kiwifruit,” noted Fung. “Every retailer asks us about what's new because any innovation we can bring to them is an advantage.”
Growth
Despite their large grower network and many retail partners, Oppy is intent on expanding. Their approach is to focus, as they always have, on growers. Finding new growers will be key to their expansion in the coming years, noted Fung.
“Our expansion strategy is to procure more and sell more with more growers, and do all of the things we traditionally have done,” he said. “We've grown significantly year over year by bringing value to growers and retailers, and though that's simple, it's still difficult.” Difficulties come from rising transportation costs, fluctuating currency values and competition from exporters. But Fung sees still more room for growth in the future.
“We are part of a $4 billion marketing and distribution entity through our partnership with Total Produce, and there's tremendous room to expand,” he noted. “We're well-poised in our relationships with growers and retailers to expand with them as they expand or amalgamate; our business will grow with them.”
For more information:
Jason Fung
OPPY | THE OPPENHEIMER GROUP
Tel: +1 6044616779
Email: [email protected]
oppy.com
