FreshEdge Continues to Expand and Eyes Growth in Organics

FreshEdge, a family of produce and specialty food companies backed by Wind Point Partners, operates 899,800 square feet of warehouse space across 26 facilities with a fleet of more than 920 trucks and more than 2,000 employees.

Ross Nelson, director of procurement for FreshEdge, noted the company is built on a united best-in-class infrastructure of fresh food distributors that provide an unmatched assortment and service level across contiguous geographies via multiple locations and refrigerated facilities.

Ross Nelson, Director of Procurement, FreshEdge

The company delivers a wide variety of products built on data and analytics, driving success in each of the markets it serves.

In May, FreshEdge expanded its Midwest operations with the acquisition of Chicago-based Testa Produce, which for over 110 years has served customers in Illinois, Wisconsin, and Indiana, distributing top-quality fresh fruits and vegetables.

“FreshEdge is continuing to look for companies to join our family of customer-focused distributors,” Nelson said. “We’re heavily focused in the foodservice realm but have plenty of retail experience and look to continue growth in both sectors. We have FreshEdge proprietary sourcing, distribution, and other programs in place and are excited to help this new acquisition grow and add value to their customer base.”

Testa Produce is LEED Platinum certified and operates out of a state-of-the-art 91,300-square-foot facility that features the most up-to-date green technologies to utilize energy generation and water conservation.

FreshEdge was originally founded in 2019 when Get Fresh Produce (founded in 1982), Indianapolis Fruit (founded in 1947), and Piazza Produce (founded in 1970) joined together.

“We’re heavily focused in the foodservice realm but have plenty of retail experience and look to continue growth in both sectors." - Ross Nelson

“They created a best-in-class network of distributors focused on the Midwest in multiple states, with many refrigerated facilities,” Nelson said. “FreshEdge has created an impressive infrastructure, and the companies work collectively to ensure the ultimate customer success.”

Since 2020, FreshEdge has added several other companies to its portfolio, including McCartney Produce (November 2020), Valley Produce (June 2021), Vine Line (October 2021), Monteverde’s (November 2021), and City Produce (May 2022).

FreshEdge distributor map

FreshEdge also includes a collection of Garden Cut-branded fresh-cut processing facilities (based in Chicago, Western Florida, Indianapolis, and Pittsburgh), a tomato repacker, a USDA fresh kitchen (CIBUS Fresh), and two transportation companies.

In early 2022, Bobby Grinstead was chosen to lead the consolidation of FreshEdge’s procurement programs, with a focus on developing programs for the overall use of each member company. Nelson’s role at FreshEdge was introduced in early 2023 to further expand this process. Prior to moving into his role at FreshEdge, Nelson was focused on procurement at Indy Fruit.  While the FreshEdge family of companies doesn't do a lot collectively in organics due to its majority foodservice presence, Indianapolis Fruit and Vine Line both have a significant amount of organic business due to their retail focus.

FreshEdge also includes a collection of Garden Cut-branded fresh-cut processing facilities (based in Chicago, Western Florida, Indianapolis, and Pittsburgh), a tomato repacker, a USDA fresh kitchen (CIBUS Fresh), and two transportation companies.

“Indianapolis Fruit ranges from 30-35 percent organic, depending [on seasonal availability], and services a lot of health and natural retail grocers that are focused on that natural and organic mindset,” Nelson said. “One of the retailers they work with is Earth Fare, and the organic presence is their majority, with an emphasis on clean products. Indianapolis Fruit works with many grower/shippers and looks to support regional and smaller farmers in the Midwest and throughout the East Coast.”

Earth Fare Fairview Park produce department at their grand opening

The smaller mom-and-pop retailers, health stores, and independent stores make up the largest segment of organic customers.

“We focus on the niche and smaller markets and servicing them with fill rate and quality,” Nelson said. “Our Indy team has dedicated merchandisers that are out in the field helping to support those retailers—training, developing, building inspiring displays, merchandising, and the whole nine yards.”

In 2023, one of the biggest challenges facing FreshEdge is labor—namely finding experienced people to work within the retail segment.

“Our Indy team has dedicated merchandisers that are out in the field helping to support those retailers—training, developing, building inspiring displays, merchandising, and the whole nine yards.” - Ross Nelson

Mother nature will play a big part in the availability of products in 2023 due to the flooding in California and freezing temperatures in the Southeast in March. So far, the Midwest has held up well and has not been impacted by bad weather.

“The costs for farmers are another challenge; it’s going to be a record year for their inputs, so we’re looking at how that will translate into cost of goods throughout the supply chain—from dirt to dinner table," Nelson said. “We’re monitoring it closely on how it will monetarily affect sales for everyone.”

In the years ahead, FreshEdge will look to continue to grow and add companies that align with its mission.

“We’ll be looking more at organics as people continue to be more mindful of what they are eating,” Nelson said. “We’re going to see more and more consumers investigate that organic realm. The [differentials in] cost between conventional and organic are not as vast as they once were, so there’s an opportunity to move a customer into that organic segment.”