Hickory Farms' HQ Moving to Chicago

Excerpts from the Mar 3, 2017 Toledo Blade story

Chicago:

The new [Hickory Farms'] headquarters is on the city’s West Loop, just south of the Willis Tower, Chicago’s tallest building.

Hickory Farms’ parent company, Modjule LLC, is also headquartered in Chicago.

Though Hickory Farms’ headquarters had remained in metro Toledo, a sizable chunk of business previously left for Illinois.

In 2006, officials announced they would close a warehouse and distribution center in Maumee and consolidate operations at a new 250,000-square-foot facility in Joliet, about 40 miles southwest of downtown Chicago.

At the time, company officials said nearly 90 percent of their vendors were in Iowa, Wisconsin, or Chicago.

Ms. Pearse said Thursday that many of Hickory Farms’ suppliers remain in the Chicago area.

Talent:

Diane Pearse, who took over as the firm’s top executive early last year ...

“We need to attract talent that has experience in retail product development and merchandising, we have to attract talent that has experience in retail marketing, we have to have talent that has e-commerce marketing and e-commerce sales experience,” Ms. Pearse said. “That quite frankly isn’t the focus for Toledo. Toledo is a manufacturing town.”

Toledo:

“We were not aware they were even planning to move,” said Calvin Lawshe the city’s director of economic and business development. “We would have been at the table trying to keep them here.”

While Mr. Lawshe said he wouldn’t question Ms. Pearse’s decision — and acknowledged that Toledo will never be Chicago — he did say that downtown Toledo is in a renaissance period.

“We’re changing and we’re becoming more attractive to young people,” he said. “The ability to live downtown, near water, near work, I think is attractive.”

Mr. Lawshe also said he has not heard similar concerns about attracting top talent to Toledo from other business executives.

HF management:

Hickory Farms is refocusing on growth after the company’s previous ownership attempted to squeeze out as much profit as possible with little thought to the future.

From the Crain’s Chicago Business story

"We determined that in order to take Hickory Farms to the next level, we need to get to a world-class city with great talent in the areas of retail, product development, merchandising, marketing and e-commerce," Pearse said. "On top of that, Chicago is a hub for supply-chain talent and it's located close to a lot of our food manufacturers."

Hickory Farms is following several larger food-related businesses that have relocated to downtown Chicago from the suburbs and outside the area, or are in the process of doing so. The list includes Kraft Heinz and its Oscar Mayer unit, Conagra Brands, McDonald's, Archer Daniels Midland and Sara Lee meat spinoff Hillshire Brands.

The company has about 100 year-round employees but employs thousands during the peak holiday season, Pearse said. But she said Hickory Farms wants to add new products and boost sales in other parts of the year.

"We have a great brand that is very beloved, but it's thought of as your dad's Hickory Farms," Pearse said. "We are transforming and reinventing this brand."

I'm shocked that Pearse did not use the word "millennials" as part of the transformation and reinvention.

Excerpts from the Mar 1, 2017 new release posted to the Hickory Farms' website.

The company is eyeing growth through new customer segments and new product offerings, while expanding current sales channels, which include retail, wholesale, ecommerce and catalog for consumer and corporate gifting.

“Our mission is to be the best retailer in the food-gifting space, and to accomplish that, we need to focus on our strategic priorities,” said Diane Pearse, CEO. “The Chicago market is rich with retail companies, food manufacturers and ecommerce businesses, so as we grow our business, we will be able to attract the additional talent we need to transform the company.”

To grow the company, leadership considered the advantages of creating a central hub that makes it more efficient for Hickory Farms to do business. The company’s key suppliers are in the Chicago area and Midwest region, and its distribution warehouse is in nearby Joliet, Ill.

... the company will continue to maintain roots in its hometown, as some business functions will be run from a Toledo office. However, key business functions will move to Chicago, including senior leadership, marketing, product development and merchandising, and supply chain.

“We are thrilled Hickory Farms is joining the growing family of companies and corporations that call Chicago home,” Mayor Rahm Emanuel said. “Between our diverse economy, transportation infrastructure and unparalleled talent, Chicago is a perfect fit for Hickory Farms, and we look forward to being part of its bright future.”

“This investment by Hickory Farms will produce good jobs for Illinois residents and help strengthen our economy,” Illinois Governor Bruce Rauner said. “We’re thrilled that Hickory Farms chose to relocate to Illinois."

Pearse took over as CEO in March 2016. She has more than 35 years of experience in operations, financial management and leadership roles with consumer product and retail companies such as Redbox, Crate & Barrel and Garrett Brands, LLC.