Is Your Company On the Fast Track?

It's been said throughout the course of time that some of the best ideas simply fall from the sky. Within the consumer packaged goods industry, the mid-market sector has become the grand beneficiary of these best ideas, transforming them into fresh, exciting and truly innovative products. Read on to find out which up-and-coming companies you should watch out for this year.

paramount farms
The average pistachio harvest season at Paramount Farms totals a half-billion pounds over a six-week period. To keep pace with demand, the company cracked open the Intermec 710 handheld, now used to gather and transmit load details to the central database, using pull-down menus to select the grower's name, ranch, field, product temperature and harvest method. Paramount Farms estimates that the system has helped reduce trailer usage by 30 percent through faster analysis of RF tags and optimization of equipment scheduling and resource utilization. Transaction time for initiating a new load has dropped 60 percent. The company now believes its increased production goals will be met without having to increase labor resources.
www.paramountfarms.com

lions gate entertainment
Even though Lions Gate Home Entertainment is a major force in the DVD and home video marketplace, a fast-growing and highly profitable division of Lion's Gate Entertainment that distributes approximately 100 titles a year, the company hit pay dirt when it acquired Artisan Entertainment for $160 million last year. The merger created an independent motion picture powerhouse with an 8,000-title library that includes "The Blair Witch Project", "Reservoir Dogs" and "Terminator 2". Today, Lion's Gate Films like to release hot-button fodder like Michael Moore's "Fahrenheit 911", which should keep the company's DVD library and bottom line very well fed.
www.lionsgatefilms.com

Sun-Maid growers
Sun-Maid's familiar red box with the smiling maid offering her tray overflowing with grapes is one of the most well known American trademarks. And even though Sun-Maid Growers exports to more than 50 countries worldwide, the privately held firm is still firmly rooted in mid-market terrain, a major reason why the company chose QAD to corral its promotion and deduction management issues.

"We felt the product that QAD has is really oriented towards the smaller food company," says Richard Hampton, director of IT, Sun-Maid Growers. "With food and beverage companies, customer demand is constantly evolving and the adaptability of the QAD software to meet the company's needs without having to touch a transaction is exactly what we were looking for."

Hampton says QAD software is flexible enough to constantly be refined as the company grows. This flexibility had reduced Sun-Maid's deduction balance by 70 percent. A former $5 million deduction balance has been pared down to less than $1 million today. "We're currently working with QAD's design team to further improve the system," says Hampton. "We continually strive to improve it." Now that's one to grow on.
www.sunmaid.com

Beaver Street Fisheries
Rather than considering RFID as an expensive burden, Beaver Street Fisheries is eager to adopt RFID, hoping to convince Wal-Mart to add the $500 million, frozen-fish importer to the list of companies required to meet its January 2005 RFID-compliance mandate. Beaver Street Fisheries will use RFID technology to track cases and pallets of fish and exotic fare -- including alligator and turtle meat -- at the company's seafood-processing and packing plant. An estimated $50,000 to $75,000 will be used to build an RFID-simulation lab that duplicates its processing-plant and inventory-control system. Zebra Technologies will help to make the transition from barcode technology to smart-RFID labels, while Beaver Street's IT department will busy itself rewriting its ERP system to accommodate the pools of data that accompany RFID.
www.beaverfish.com

dyson Appliances
In 1978, while vacuuming his home, James Dyson realized his vacuum cleaner was constantly losing suction due the pores of the bag clogging with dust. Five years and 5,127 prototypes later, Dyson Appliances introduced the world's first cyclonic bagless vacuum cleaner in the U.K. Word of mouth -- which continues to be one of the company's most potent marketing tools -- helped boost sales to such a point that Dyson was soon outpacing Hoover and Electrolux. Today, retailers like Sears, Target, Sharper Image and Bed, Bath & Beyond have no problem charging up to $600 for a Dyson vacuum.
www.dyson.com

K-Swiss
Buoyed by a trend toward retro sneakers,
K-Swiss' numbers doubled over the past two years, with profit reaching $54 million and sales accounting for $465 million. The company introduced two new sneakers this year to complement its top-selling shoe, the K-Swiss Classic. The Ramli features a color stripe running along the bottom of the sneaker; and the Gorzell features five colorful, running stripes down each side of the shoe. So far, retailers report that the news models are selling well. K-Swiss is promoting its full product portfolio with a series of ads encouraging buyers to customize their shoes with personal touches such as fancy laces and graffiti.
www.kswiss.com

roku llc
One of the fastest growing product segments in the digital technology space is a gadget that plays media stored on a PC. The idea behind these gizmos --- which are so new they don't have an official name -- is to play songs stored on a computer hard drive over a separate audio system, like a stereo, via a wireless network. Sound complicated? It is. But once these gadgets work out the bugs and become more user-friendly, companies like Roku LLC, who lead the pack with The SoundBridge (M2000 model, $500) will be able to turn up the profits. www.rokulabs.com

bird's eye foods
To remain category leader and sustain annual sales growth, Bird's Eye Foods must have the right systems and infrastructure in place. Within a recent initiative, dubbed "TPM in 90 Days", Bird's Eye Foods tapped VeriSync Trade Solution's TradeLync technology -- the ASP version of the MEI TPM solution -- to produce more out of each dollar spent and increase trade spending effectiveness. With real-time and actionable information reaching the sales, marketing, trade marketing, finance and production departments, Bird's Eye Foods can now ensure that no money is left on the table.
www.birdseye.com

hanky panky
The little-known company, Hanky Panky, has flourished for the past 15 years on sales from a $15 lace thong known simply as the 4811. Hanky Panky founders Gale Epstein and Lida Orzeck began designing undergarments in the late 70s, which they sold to talent-hungry retailers such as Lord & Taylor and Macy's. While the company occupies just a small share of the $2.5 billion panty market, its reputation for comfort has generated a cult-like following that includes celebs Cindy Crawford and Julianne Moore, in addition to masses of other everyday, hardworking women.
www.hankypanky.com

organic valley of family farms
Organic Valley Family of Farms is the nation's largest organic family cooperative, raking in just over $156 million in sales in 2003 and growing an estimated $25 million a year in sales. This cooperative touts more than 633 farmers in 16 states and one Canadian province, and produces at least 130 organic products that are distributed to more than 500 food cooperatives, natural food stores and supermarkets nationwide. In order to flourish and provide support for its farmers in a market that grows 20 percent annually, Organic Valley needs to keep the larger competition at bay. In efforts to better manage its enterprise-wide information and provide more robust supply chain capabilities, specifically for production planning in a "push" supply-chain environment, Organic Valley selected Agilisys' Supply Chain Planning Solutions, including Advanced Planning, Advanced Scheduling, Demand Planning and ERP capabilities. Once implementation is complete in October 2004, Organic Valley expects to achieve better visibility into its business and more flexible methods for managing its growth. From a costing perspective, Organic Valley hopes that Agilisys' ERP will keep it ahead of the larger competition such as General Mills or Dean Foods, which are now showing interest in the thriving organic market.
www.organicvalley.com

quiksilver
Quiksilver has been an ever-present part of the surfing sub-culture since its founding fathers invented "boardshorts" in 1969. This $975-million company still appeals to the young and athletic today with surfwear, snowboardwear and sportswear sold under brands including Quiksilver, Raisins and Roxy. In May, 2004, Quiksilver completed its purchase of DC Shoes -- a brand notorious in the skate and surf communities. With the new acquisition in its wake, Quiksilver may finally break out of the mid-market and give other sportswear giants such as Nike and Adidas a run for their money.
www.quiksilver.com

energy brands
With 200 percent annual growth since inception and a more than 50 percent share of the highly competitive enhanced water category, Energy Brands Inc., the parent company of Glaceau Vitaminwater, has had tremendous success through grassroots marketing activities since the brand launched in 2000. The company unveiled its first, national marketing campaign last month, entitled "Every Day Needs More." The $5 million campaign plays off the brand's irreverent personality while depicting various characters getting the most out of everything they do during their daily lives. In 2005 the company will spend over $10 million on additional ad buys. "Our goal is to showcase how Glaceau Vitaminwater supports real people in every aspect of their lives," says Rohan Oza, senior vice president, marketing, Energy Brands Inc.
www.energybrands.com

Morgan foods
The private label manufacturer, Morgan Foods, markets products in 18 categories, ranging from canned broth to refried beans. Keeping in toe with the latest technology innovations of the time, Morgan Foods went live with SAP's mySAP All-in-One in 1999 and has since reaped major benefits such as the ability to completely automate production, planning and scheduling. Inventory accuracy improved from 45 percent to a real-time accuracy of 99.95 percent. Additionally, real-time monitoring of finished goods inventory reduces costs by $250,000. For more information on how Morgan Foods positions itself on the cusp of technology innovation, check out this month's "Inside SMB" story on Page 22.
www.morganfoods.com

litehouse foods
Growing rapidly, Litehouse Foods has more than tripled its offerings in the last five years. To facilitate this growth, the refrigerated dressings maker has been using Ross Systems iRenaissance ERP suite to improve operational efficiencies, help ensure product quality and gain comprehensive financial visibility and control. To further improve efficiencies and customer service, Litehouse needs to predict demand more effectively and address increasing distribution complexity. Ross' iRenaissance SCM applications were chosen to produce better forecasts of customer demand and enable the company to avoid stock-outs and oversupply while eliminating the expense of safety stock. Thanks to Ross Systems, Litehouse has boosted product fill rates by 10 percent while reducing finished goods inventory by 6 percent, saving considerably on carrying costs "We needed more timely and accurate demand forecasts to ensure the right amount of inventory was available at the right time," says Bill Hawkins, COO of Litehouse Foods. "By achieving a correct one-number forecast for the entire company, we can now plan, modify and manage at the customer level like never before possible. This data is turned into useful information that allows us to proactively plan for trade promotions, improve overall collaboration with our trading partners and, through this, increase customer satisfaction. We are well-positioned for continued growth and anticipate even greater results."
www.litehousefoods.com

Yak Pak
This trend-designer and manufacturer of urban-oriented bags for the Yak Pak, Levi's and Dickies brands is credited as the creator of such innovative products as the mini backpack. But despite its products' popularity, Yak Pak was weighted down by a financial system that couldn't handle its increasing transaction volume. To drive rather than inhibit growth, Yak Pak chose a business management solution designed for small and midsize businesses: SAP Business One - The American Express Edition for Wholesale Distribution. Within days of implementation, orders were being shipped without a hitch and simplified reporting allowed Yak Pak to receive demand forecasting reports within seconds rather than 45 minutes.
www.yakpak.com

tasty baking
Tasty Baking Company is a leading baker of such popular sweets as Jelly Krimpet and Tastykake-brand single-serve cupcakes, snack-sized cakes and fruit pies, which are sold in approximately 15,000 convenience stores and supermarkets primarily in the mid-Atlantic. Wal-Mart is its largest customer, accounting for approximately 15 percent Tasty Baking's $255 million annual sales last year. Currently, Tasty Baking is pursuing national distribution and is restructuring its senior management team. Former IBM consultant Autumn Bayles joined the company as its first-ever CIO and will help to lay a foundation for change and future growth via an IT overhaul.
www.tastykake.com

Gorilla glue
Gorilla Glue's innovative, industrial-strength adhesive technology recently secured the first-place award in the caulking and sealants category in Builder's magazine's "2004 Brand Use Study", which asked 2,000 professional residential builders to rate the products they recognize most, use msost and rate best in quality. Gorilla Glue brings industrial-strength sticking power to consumers for use on wood, stone, metal, ceramics, Corian, foam board and more. To complement its recent best-in-class recognition and growing reputation, Gorilla Glue recently redesigned its packaging to appear newer, bolder and more eye-catching (pictured right). www.gorillaglue.com

homieshop
At first, HomieShop's two-inch, baggy-panted, tattooed, urban figurines were exiled to convenience store vending machines. But despite criticism from anti-gang and Hispanic groups, HomieShop's little "Homies" proved to have staying power, raking in more than $50 million in sales since 1999. This year, retailers caught on to the Homie's growing popularity, and Kmart was the first to test the urban toy market in January 2004. Both Kmart and Wal-Mart are now selling a related line from HomieShop called Mijos -- urban figurines less the references to drugs and violence -- in thousands of store locations. www.homies.tv/home.html

Alltrista
Alltrista Consumer Products Company markets home canning products, plastic cutlery, kitchen matches, lighters, toothpicks, clothespins and craft items under Ball, Bernardin, Diamond and other brand names. The company adopted the integrated trade promotion and order management solution made possible through the recent alliance between CROSSMARK and Gelco. "By having a single integrated process we expect to improve trade funds visibility and reduce the potential for unauthorized deductions," says Jesse Edelman, SVP of sales, Alltrista. "This heightened visibility should assist us in managing our trade dollars without adding infrastructure."
www.alltrista.com

homedics
HoMedics was first established 15 years ago as a leading manufacturer of back and body massagers. Using the latest technology, HoMedics now turns out one innovative product after another, allowing consumers to relax, renew and simplify their lives.The company massaged its way into the personal healthcare and wellness products category and expanded its offering to include hot/cold compression wraps, footbaths, dental products, sensory relaxation systems, magnetic therapy products, etc. HoMedics distributes its products to department stores, discount, specialty and drug stores in more than 60 countries. www.homedics.com

wind-up records
With a knack for signing multi-platinum rock artists like Creed, Evanescence and Drowning Pool, Wind-Up Records has become the most buzz-worthy label in music for its talent spotting ability. Driving Wind-Up's success is a crop of internal business pros who measure and monitor data from spreadsheets and correlate album sales to tours, radio play and e-mail traffic. With anti-piracy concerns running rampant, Wind-Up embraces the Internet and developed software that produced a flashing icon for one of its bands. Clicking on the icon yielded behind-the-scenes videos and music previews. Should Wind-Up one day abandon its independent credibility and sell out, "there would be a line at the door", says Sony Music exec Rick Dobbins in a Newsweek interview.
www.winduprecords.com

HEEL that pain
As a start up company looking to gain stability in the $200 million foot care market, HEEL That Pain Inc. stepped into IBM and Dassault Systems product lifecycle management (PLM) solutions to bring its new product to market. HEEL That Pain is a joint venture between GID Development Corp. and Dr. Art Smuckler, a certified podiatrist. After developing a few customized foot pads for patients complaining of persistent heel pain, Smuckler wanted to share the benefits of these foot pads with the mass market.

"I knew this product could do wonders for 2.5 million Americans who suffer from chronic foot pain, but I was naive about the complexity of bringing the product to market,"says Smuckler. Using CATIA Version 5, which lies at the heart of IBM's PLM solution set, GID Development designed and manufactured the new heel seats, based on Smuckler's original design. Once the optimal design was determined using the software, CATIA Version 5 was then used to design the tooling. Prototypes were then easily manufactured for clinical trials.

After a successful series of trials, CATIA Version 5 was also used to design the blister package.

The HEEL that Pain footpad product is expected to be available at drug stores across the United States by the end of the year.
www.heel-that-pain.com

smead
Since laying the foundation of Smead Manufacturing in 1906, its business principle has been to provide quality products that best serve the filing needs of customers. While staying true to its values, Smead has achieved more than 200 percent growth in the business without growing its inventory levels. How? The company turned to Logility Voyager Solutions to help increase forecast accuracy; establish a collaborative planning, forecasting & replenishment (CPFR) relationship with top customers; improve service levels; and increase sales while maintaining inventory growth.
www.smead.com

burt's bees
Roxanne Quimby started Burt's Bees in 1984 when she and reclusive beekeeper, Burt Shavitz, began making candles and lip balm from beeswax. Burt's Bees has since carved out a buzzworthy niche among eco-conscious folk who find value in products that are earth friendly and made with all natural herbs and essential oils. The firm produces about 150 personal care products, which are sold in boutiques and health foods stores throughout the United States, Canada, Europe and Japan. In 2003, Burt's Bees brought in $50 million in sales, a 14.9 percent increase from the year before.
www.burtsbees.com