Existing Industry Spotlight: West Liberty Foods

4/27/2009

From the West Liberty Index

by Sara Sedlacek · April 15, 2009

Nearly 66 years ago, Louis H. Rich moved the Rock Island Produce Co. to West Liberty. Just three years later, in 1946, the plant was converted to a chicken slaughter facility. In 1949, Martin and Norman Rich, sons of Louis, changed the focus of the company to turkey products. These first steps helped to make West Liberty Foods the company it is today.

In 1960, Rock Island Produce Co. changed its name to Louis Rich Foods, Inc. and began expanding the West Liberty plant. Louis Rich operated the plant for nearly 20 years when, in 1979, Oscar Mayer acquired the plant. The West Liberty plant was owned and operated by Oscar Mayer, a division of Phillip Morris, until 1996. On Dec. 31, 1996, Oscar Mayer announced it would be closing the plant.

“The plant was going to close and there would then be 47 (Iowa-based) turkey growers with nowhere to take their birds,” explained Janelle Plantz, Marketing Manager for West Liberty Foods. “The 47 growers banded together to form a co-op.”

The co-op, the Iowa Turkey Growers Cooperative, purchased the plant in 1996 and began doing business as West Liberty Foods.

“The economy at that time was not good. Turkey prices were very low,” Plantz said. “The motto at that time was ‘Strive to Survive.’”

And survive, they did.

Just months away from shutting its doors, the market picked up and West Liberty Foods saw an enormous profit. That wasn’t the only year the company profitted. Since the first turkeys were processed by the Iowa Turkey Growers Cooperative in 1997, West Liberty Foods has continued to profit and grow.

“Right now we have four facilities,” said Plantz. “As our customer-base grew, we expanded.”

In 2000, West Liberty Foods purchased a plant in Sigourney. In 2002, a USDA-inspected Research and Development Center was opened in West Liberty. In 2003, the Mt. Pleasant facility was opened and expanded in 2004. In 2005, West Liberty Foods opened a state-of-the-art Quality Assurance Laboratory in West Liberty. In all, West Liberty Foods has five locations in West Liberty. The company employs a total of 1,680 people in Iowa and Utah, 692 in West Liberty alone.

“Although, we have the feel of a hometown company, we are larger than some realize,” Plantz said. “That’s part of the reason our tagline is, ‘The Surprisingly Big Company.’”

West Liberty Foods’ customer base includes Subway, Denny’s, Arby’s, Wal-Mart, Aldi, Costco, Fairway and Sam’s Club. The company provides Subway with 80 percent of its meat. It also supplies Wal-Mart with the meat and cheese for its sandwich set-ups in the deli.

In 2006, West Liberty Foods formed a sales and marketing alliance with Norbest. Norbest, most well-known in the West, sells mostly whole turkeys and breasts.

“By going into alliance, we’re assisting Norbest with sales and marketing, which is all done in-house in West Liberty,” explained Plantz. “They’re still in charge with their co-op of turkey growers in Utah. They do all their own plant management.”

Plantz explained West Liberty Foods, though it doesn’t produce whole birds like Norbest, is able to use the Norbest name.

“We’re opening a new line of sliced items to sell under the Norbest label,” she said.

Norbest has been operating for more than 80 years on the West Coast.

“We’re trying to attract a younger generation,” Plantz said. “It helps that Norbest is in Utah, too.”

This is because West Liberty Foods opened a new plant in Tremonton, Utah, in 2007. The new plant was expanded and the daycare facility was opened in 2008. As Plantz explained, having the plant in Utah helps West Liberty Foods provide better service to the Western Region of the country.

“We have more trucks off the road and the product has a longer shelf-life,” she said. “With the Utah plant, we’re more centralized. We are able to provide better service nationwide.”

The plants in Iowa service the East Coast more easily than they service the West Coast, Plantz explained, which is why it isn’t necessary, at this time, to have a plant on the East Coast.

West Liberty Foods is also very dedicated to food safety. Last year, West Liberty Foods was awarded the Iowa-Illinois Safety Council Safety Award and the 7th Annual Food Quality Award from DuPont Qualicon.

“We’re industry leaders in food safety,” Plantz said. “The Mt. Pleasant plant was the first of its kind. We really have a concern for food safety.”

The West Liberty Foods executive team is made up of Ed Garrett, President and C.E.O.; Paul Hill, Chairman of the Board; Glenn Elzey, Sr. Vice President and C.F.O.; Gerald Lessard, Vice President and C.O.O.; Mike DeSmet, Vice President of Food Safety & Quality and Michael Quint, Vice President and C.O.O.