Russ Davis Wholesale Inc. Focuses on the Midwest Organic Consumer

Conventional wisdom says consumers on the coasts are more committed and passionate about organic produce than those in the middle of the country.  But Russ Davis Wholesale Inc., headquartered in Minnesota and servicing the Upper Midwest region, has 10 years of growth disputing that fact.

“There used to be a big discrepancy, but not anymore,” said Adam Gamble, President of Russ Davis Wholesale (RDW).  “There are more organic shoppers in the region than people think.  Minneapolis and Madison (Wisconsin) have been hard-core organic markets for a long time, but now we can reach into small towns in North Dakota and find committed buyers.”

Adam Gamble, President of RDW

RDW is a full-line produce wholesaler with five distribution centers in that Upper Midwest region.  Its target market stretches from Montana to Michigan, including the Upper Peninsula region of that state, and stretches south to Nebraska. The company will soon be opening a new facility in Colorado giving it even greater reach.

Pat Miller, vice president of the firm, said the company has 20 merchandisers spread out throughout the Midwest helping smaller community stores offer organic product.  “We break down cases to allow a 'mom & pop' store to get into organics.  There is a lot of teaching involved in that effort,” he said, adding that in every small town retailers are finding willing organic produce customers.

Pat Miller, vice president, RDW

Gamble said utilizing this strategy has resulted in double digit growth in year-over-year organic sales that is showing no signs of slowing down.  “We don’t see a plateauing (of sales),” he said.

RDW is employee-owned and was founded in the 1950s by its namesake as a local jobber.  His son, Gary Davis, turned it into a full-line distributor in the 1990s, and it began offering organic produce around that time.  “We have had a hard focus on organics for the past six years,” said Gamble, noting that the handful of organic SKUs 10 years ago has now grown to about 450.

He said about 65-70 percent of the firm’s business involves retail distribution to grocers, and organic sales account for about 20-25 percent of that business.  From his perspective, Gamble said consistent supply of product is the biggest challenge they face as a buyer in the organic sector.  While some items have solved that issue, many others haven’t.  He singled out bananas and berries as two items on which demand outstrips supply. Of course, those are two of the top five produce items in virtually every produce department in the country.

Gamble said hydroponic and indoor farming offer possible supply solutions in their area for some items.

Gamble said consistent supply of product is the biggest challenge they face as a buyer in the organic sector. 

The RDW representatives said locally-grown organic produce is probably the most sought-after product line for the shoppers they serve. The growing seasons are relatively short in the Upper Midwest but consumers love to buy local, and if it’s organic, that’s even better.

RDW is especially active in trying to convince future generations to join the produce bandwagon.  The company’s line of processed, fresh produce items is heavily skewed toward snack options. The company’s goal is to turn the fresh produce department into a mecca for fresh snacks. It sells its fresh cut and processed produce items under the “Crazy Fresh” label and markets to consumers through several websites including crazyfreshproduce.com and crazyfreshkids.com.

RDW sponsors a Crazy Fresh Kids Club that delivers a birthday gift to club members and special shopping offers.

Miller said the marketing effort includes bringing kids into stores to experience fresh produce first hand. The company also sponsors a Crazy Fresh Kids Club that delivers a birthday gift to club members and special shopping offers.

Interviewed during the Organic Produce Summit in Monterey in mid-July, Gamble called it a fantastic show.  Miller said it was a great opportunity to meet with current suppliers and find new ones.  He added that suppliers of organic produce are doing a great job but, as mentioned above, the company’s growth in the sector requires finding an ever-increasing list of suppliers.