Building a better produce box

Date: 
Wednesday, 1 April 2020 - 6:30am

coping41“In times like this, survival has you doing crazy things just to get through,” said Brent Erenwert, chief executive officer of Brothers Produce Houston/Houston Cold Storage.

Well, Erenwert may just be crazy like a fox.

Prior to the COVID-19 pandemic, the majority of Brothers Produce's business went to foodservice. Since March 12 that business has dropped to about 5 percent. The company was able to increase its supply to grocery stores, but something else had to done to ensure it was able to move produce, and just as importantly, keep all of its employees working.  

Erenwert created a secondary business model that initially sold custom produce boxes to co-ops in nearby communities. He said right off the bat the company packed 700 boxes for one little town.

“I’m keeping product moving, I’m keeping my labor going and I still haven’t laid off one person,” said Erenwert. “I’m also taking a good portion of the proceeds and making a relief fund for my hourly employees that have been affected by this.”

There was actually so much demand when people saw the boxes that they wanted home delivery. “It kind of backfired in a good way,” said Erenwert. So, On March 22, Brothers Produce opened an online store to sell produce boxes directly to consumers.

“We packed more than 2,000 boxes last week,” said Erenwert. “This week I expect to do even more.”

During this COVID-19 pandemic, when so many businesses are quickly becoming strapped for cash, Erenwert said the instant sale nature of these produce boxes is generating much-needed cash flow.

He didn’t dismiss the notion that either the home delivery or co-op model could be an option after the pandemic runs its course, though he said the co-op model was more likely. Erenwert talked about the importance of logistics for the home delivery model.

“For home delivery to work for the consumer it has to be convenient and affordable,” said Erenwert. “We can do that and I can make money on the product, but I have to at least break even on logistics.”

Erenwert has found a way to do that now, but post-pandemic it may become more difficult. The co-op model, however, may have staying power.

“I think the co-op is sustainable because there is a potential new business there,” said Erenwert. “It creates new jobs — a potential secondary income for a mom as a lot of these co-ops are headed up by stay-at-home moms — I just serve as a blood line to them.”

Erenwert emphasized that Brothers Produce wasn’t doing anything like this a month ago and that it is not trying to compete with grocery stores.

“I’m just trying to survive,” he said. “My goal is not to lay off one person, and I’ve been able to do that so far.”

About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

Get in touch

D. Otani Produce
1321 Hart St
Honolulu, HI 96817

Phone: (808) 509-8350

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