Case Studies
Food Trading Companies in Action: Case Studies in Agility and Adaptation
As one of the leading food trading companies in North America, we at Marvell Foods work hard to ensure our clients minimize waste and maximize profits. We help businesses in the food industry create new and profitable opportunities from production mishaps such as ingredient or testing readjustments, portion resizing, and packaging errors. Our Case Studies demonstrate how we operate as surplus food buyers, implementing real, innovative solutions that have successfully maximized profits for our clients.
Manufacturers Change their Minds All the Time: We’re There to Help!
Imagine this; a huge national food manufacturer decides to use a particular type of main ingredient – such as shrimp or beef, in a new packaged meal they are preparing to bring to market. Then, for some reason, they change their mind about whether or not they even want to bring that new entrée product to market or what the composition and specifications of those ingredients might be. Maybe they want larger shrimp or shredded chicken instead of diced chicken in the dish. The reasons not to take a product to market, or even the change of its specifications, are endless.ss.
Make Us Your First Phone Call to Buy or Sell
At the end of the day, any of the reasons why a manufacturer chooses not to bring a product to the market do not matter. What matters is that these situations create opportunities for Marvell Foods and our clients. When alleviating problems like these, Marvell Foods is among the initial contacts to be reached out to.
Manufacturer / Supplier – Food Production Issue
How Marvell Solved the Problem
- Salvage Rescue: A national poultry producer made a custom-made product for a national brand manufacturer; while in route, the truck was in an accident, and the top boxes were crushed; despite only the top boxes in the vehicle sustaining damage — 38,000 pounds out of 40,000 of this first quality diced-chicken product were salvaged
- Insurance Claims and Salvage are an excellent source of first-quality products, and Marvell maintains relationships with many, if not all, of the country’s leading Salvage Insurance companies. Recognizing the opportunity, Marvell quickly purchased this product that came in 225-pound boxes and was able to place it with an entrée manufacturer for further processing.
- Off Spec: After cooking nearly one million pounds of chicken tenders, a leading national food manufacturer is dissatisfied with the color of the breading, expecting it to be golden brown. It was discovered that an ingredient composition error by the breading supplier produced a dark brown finish that was unacceptable, forcing the manufacturer to discount this first quality product.
- Despite being a first-quality product, the specifications error rendered it unusable for the national manufacturer. Marvell, recognizing the high demand for the chicken tender market, purchased numerous loads. Then, within thirty days, Marvell was able to place it with a secondary market retailer.
- Consumer Testing Readjustment: After consumer testing, a major manufacturer decides they want to use a larger shrimp in one of their entrée meals than what they originally ordered. Consequently, a half million pounds of that particular frozen shrimp intended for the entrée now becomes available.
- Given the amount of tonnage and the superior nature of this manufacturer’s first quality product, Marvell recognized this opportunity and was able to find another major manufacturer to purchase the product to repackage and sell retail.
- Ingredient Composition Adjustment: The company chooses to include “beef crumbles” in an entrée; during R & D, they decide to omit this product from their line, consequently a load of 40,000 pounds of first-quality “beef crumbles” now become available.
- Knowing that Marvell is a big product buyer, this national manufacturer contacted Marvell. Recognizing the opportunity to close and turn first quality product quickly, Marvell purchased the entire load and sold it in one week to three different prison systems in the midwest and the west coast markets.
- Portion Control Resizing: An airline contracts a food manufacturer to produce a 3.5 oz portion control-size lasagna; After making nearly 20,000 pounds of this first-quality product, the airline changes the specs from 3.5 to 3 ounces; this product now becomes available.
- With a pulse on the market in many sectors, Marvell creates and capitalizes on unique opportunities. In this case, Marvell took possession of this first quality product and turned it around with the sale to a national gourmet independent boutique retail chain.
- Packaging Error: A Produce manufacturer packaging frozen spinach for retail consumption miscalibrated the packaging machine, causing a wrapping malfunction. The product became unsalable for its intended retail use forcing the company to sell 500,000 pounds of unwrapped frozen bulk spinach.
- The large amount of product available and its unique production issues presented the manufacturer with a big challenge. When Marvell learned of this opportunity, it was able to place the entire load of product with a national ravioli manufacturer, all in less than 30 days.