thelocaldiner.com

Wheat Montana, a vertically integrated seed-to-sandwich grain operation based in Three Forks, is a “Buy Montana” success story. We always stop there on drives between Helena and Bozeman for a sweet roll or sandwich and to top off the gas tank, then drive past the fields that fed us along Highway 287. Their bread selection has something for everyone: Multi-Grain, High Fiber, Low Carb, and even No Wheat.

James Larcombe reports in the Tribune that the proprietors, the Folkvord family, shared some of the secrets of their success in Great Falls recently. One of the secrets is distribution and marketing through mega-corporations:

Wheat Montana is working on a deal that could bring Starbucks products to its retail deli operations. A trial run in a Kalispell operation boosted sales by 40 percent, Folkvord said.

The small Montana company also has found success in working with Wal-Mart, the nation’s largest retailer. In fact, about 40 percent of the company’s bread sales take place in Wal-Mart.

“They actually found us,” Folkvord said. “They are always interested in regional products.”

The Three Forks man traveled to Wal-Mart headquarters in Bentonville, Ark., to make a presentation to corporate officials. The meeting went well, with Wal-Mart simply asking Wheat Montana to price its products as low as possible.

“These guys welcomed us in, without any slotting fees or upfront money,” Folkvord said, noting the Wheat Montana’s allotment of space on Wal-Mart shelves has grown. “They’ve been very easy for us to deal with.”

Wheat Montana also learned the value of lean operations and reducing overhead from Wal-Mart. Controlling costs helped the company weather a significant sales slowdown in 2001, which came after a boom in flour sales apparently driven by Y2K millennium concerns.

I would rather see Wheat Montana partnering with homegrown businesses, selling Montana Maid coffee and distributing bread through the Real Food Store. But love them or hate them, a small business can learn a lot from Starbucks and Wal-Mart. If some of that discipline and know-how helps Wheat Montana grow profits and jobs here, then is a deal with these corporate devils really so bad? We’ll see.

This entry was posted on Thursday, May 27th, 2004 at 10:30 pm and is filed under Market, Montana. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.