The Business of Food - Resilient Organizations

Micah Elconin, Director of Eugene’s Table writes a regular column for the Register Guard. The Business of Food highlights his perspectives on regional F&B business.

Food and beverage manufacturing is not for the faint of heart. Here in greater Eugene, however, many companies are finding ways to push higher up the proverbial mountain. Starting from humble beginnings, often boot-strapping their way up, many nationally recognized brands have built businesses locally that continue to thrive.

Why is food such a hard business?

Slim margins and substantial infrastructure requirements create a competitive landscape dominated by large corporate entities. With massive players using their substantial resources to dominate distribution channels and push down prices, it’s next to impossible for growing firms to retain enough cash to fund operations, let alone generate the profits necessary for expansion.

Even companies with relatively substantial scale continue to struggle in the market. Often the solution is to “sell out” to a larger competitor. The resulting infusion of capital and distribution resources can be used to sustain growth, or simply to fund a graceful exit for the original ownership.

But our region is home to many firms that want to maintain independence and governance structures that ensure their founding visions will remain intact. Some are building innovative corporate structures to support continued business success without sacrificing values and mission integrity.

* Reported by The Register Guard