Powder to the People!

First in a 4-part series on DURE FOODS. Taken from a recently published article by Andrew Joseph in the October 2014 issue of Canadian Packaging magazine. Photos by Cole Garside.

DURE FOODS LTD. uses advanced product inspection to formulate a winning packaging strategy for its growing co-packing business.

President Hunter Malcolm says his company provides valuable third-party services offering Flavoured Cappuccino, sugar and more, for a growing number of major national and multinational retail chains by developing and packaging unique dry powder blends for the food and beverage industry.
 
When people tend to think of the food and beverage industry, images of prime cuts of meat, bottled beverages and ready-to-eat meals immediately come to mind.
 
But despite a lack of instant recognition on behalf of Joe Public, one Ontario manufacturer and its niche market products aims to be the creamer in 
your coffee or that cup of hot chocolate perfection on a chilly evening.
 
Situated in Brantford, Ont, an approximate 90-minute drive west of Toronto, the family owned Dure Foods Ltd. performs what can only be described as an efficiency solution for food and beverage suppliers across North America, offering various dry blending services for a multitude of major national and international grocery retail and fast-food chains.
 
The company describes itself as ‘large enough to count on, small enough to care’, for over 30 years providing the food services industry with quality powdered goods such as chai tea, cappuccinos, cappuccino foamers, hot chocolate, vending and reliquifying creamers and sugar, as well as a recent foray into the production of hydrators and whey proteins—all of which are available under the Dure Foods label as well as under private-label programs.
 
Founded with humble beginnings in 1978 by Scott Malcolm, he and one other employee—Chrissy Humphery, who is still with the company—worked out of a small rented space filling orders for its initial product, a liquid dish soap, which certainly doesn’t sound like a dry powdered product.
 
In fact, it was another five years before Dure Foods began manufacturing and packaging dry blends, co-packing coffee whiteners and bulk sugar, then done with a total of five employees.
 
“It was in the mid-1990s when the whole specialty coffee trend opened up. We saw an opportunity for the company to expand our talents and began developing products for this niche market,” company president Hunter Malcolm told Canadian Packaging magazine during recent visit to the company’s 53,000-square-foot facility.
 
Hunter is the son of the company founder, though Scott continues to be involved in the business on a daily basis. “The timing was great for us—just as the whiteners market began to decrease, the flavored cappuccino segment rose sharply.”
 
To create flavored coffees such as the cappuccino, the cappuccino powders would be added by coffee roasting companies to blend the taste sensation.
 With success came the necessity for growth, Malcolm notes, “so we constructed a new 35,000-square-foot facility in 2002, later adding an additional 20,000 square feet in 2006 featuring more loading docks as well as blending and packaging rooms and a total of 36 employees.”
 
In 2005 the company set-up an additional facility down in Columbus, OH, a 12 employee, 48,000-square-foot facility that also blends and packs dry powder products.
 
Nowadays, Dure Foods produces dry powder blended product for some 150 SKUs (stock keeping units), including devising custom formulizations, annually producing over four-million kilograms of powders.
 
“We put out some 20 million one-kilogram packages a years,” notes Malcolm. “And that’s just at the Brantford site.”
 
Still despite the success, the lessons learned from watching the popularity of whiteners shrink while cappuccinos rose have not been lost on Dure Foods, as it has recently begun manufacturing and offering what it calls a Lifestyle line of powders for those people with more than just a passing fancy for fitness and physical health, featuring meal and protein supplements for every stage of life.
 
“Although we are still focusing on our core strengths of dry blending, by diversifying our portfolio it provides a buffer in case one of the core markets we cater to begins to follow any type of downward trend,” explains Malcolm. “And if none ever do, then we’ve also strengthened and increased our production.
 
“It’s win-win.”
 
According to Malcolm, the number one product manufactured and packaged at Dure Foods is its hot chocolate powder.
 
He also noted that because the coffee, tea and hot chocolate powder business is seasonal—fewer people look for piping hot drinks in the summer, “the addition of the lifestyles products will hopefully help us bridge the gap.”

 

Never Underestimate the Importance of Customer Satisfaction

Customer satisfaction is essential to any company’s growth. When you meet or exceed a customer’s expectations, they can do wondrous things for your reputation and even give you free advertising by recommending you to others. However, if you fail to meet their expectations, you’ll likely never see them again. In fact, they might even complain about their experience on public forums, such as social media.

The value of customer satisfaction

According to Bain & Company, it costs 6 to 7 times more to find a new customer than to keep an existing one. Holding on to old customers and building customer loyalty gives you the chance to improve the bottom line drastically compared to a mindset that focuses exclusively on finding new customers.

Satisfied customers can also be fantastic brand advertisers. In the age of digital media, both complaints and compliments can go viral. A customer who takes to Twitter to speak about a poor customer experience can influence untold numbers of people who are debating whether or not to use your company. Fortunately, the same can be said for those who leave positive reviews.

Individuals who feel satisfied with the customer experience are more likely to tell friends, family, and associates about their positive experience. Since people take reviews from those they trust far more seriously than advertising, the value of customer satisfaction cannot be underestimated.

Keeping your customers happy

Customer service entails more than just what happens when a buyer makes a purchase. It encompasses their entire experience and interaction with your company. With that in mind, here are some pointers to consider:

  • Keep your employees happy. They’re the face of your company. When they’re happy, they’ll make your customers happy, too.
  • Undersell and over deliver. For example, if you tell a customer you’ll call them back by the end of the business day with a suggestion, try to call them back before lunch with two suggestions. Instill this same attitude in your team.
  • Work to ensure customers experience helpfulness at every stage. Make sure your website is helpful and easy to use. Train customer service reps to focus on solving problems, rather than just selling. And don’t forget about customers after the sale. Instead, focus on helping them get the most from your product or service.

When customers find their expectations have been met or exceeded, they’ll often share those experiences with friends, family, and followers on social media. At Dure Foods , we make customer satisfaction a focus of our organization to help improve the bottom line and make the entire experience more enjoyable for everyone.

Hope you enjoy our posts!

The Dure Foods Family