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PROGRESS
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Agriculture & Industry Facts about the expansion Company starts small Gerry and Jerry Vogt started Mrs. Gerry’s Kitchen in 1973 in a 1,100-square foot building. Mrs. Gerry’s produced 70,000 pounds of three salads the first year. Production volume since has increased to 25 million pounds per year.
Make way for more potato processing
Double the taters A Q&A with Chad Vogt of Mrs. Gerry’s By Sarah Stultz
Employees to increase
Albert Lea-based Mrs. Gerry’s Kitchen is nearing the completion of its new 37,000-square-foot expansion. By this summer, the company is on track to double its potato-processing capacity and increase its cold and dry storage capabilities. The Tribune sat down with Chad Vogt, Mrs. Gerry’s vice president and director of purchasing, to talk about the history of the company and its recent expansion.
With the expansion, Mrs. Gerry’s anticipates hiring an additional five to 10 employees, up from the 140 permanent employees already at the site.
Mrs. Gerry’s has been in operation since 1973. Can you tell us a little about how it got started? What were the goals for the company when it first began?
Dozens of foods being offered
In 1973, Mr. Jerry Vogt was selling salads on his Schweigert meat route to complement his meat — some cheeses, different products and one of them was the line of salads. The lady who made those salads was going to retire, so he came to Mrs. Gerry Vogt and said, ‘Would you make salads for me? And you have until tomorrow to give me answer.’ So they went to bed that night. They both prayed about it, and when they woke up in the morning, they felt a peace that they should start something, that they should start making salads. They started in the kitchen of their home. At the time Gerry had a 5-yearold, a 3-year-old and a 1-year-old in the house. They quickly grew out of the household kitchen, and they bought a place on Seventh Street, a 7,000-square foot building on the south side of town. Their first employees were her parents, Al and Betty Siemer, and their first year they sold 70,000 pounds. In 1978, they moved to the Northaire Industrial Park. Since then, this is the 4P. 5 sixth addition.
The expansion adds an additional 37,000-square feet to the company’s already existing 85,000-square foot manufacturing facility. It will double the potato-processing capacity and provide additional cold storage.
The company supplies more than 100 varieties of salads, dips, entrees and mashed potatoes to retail and food service customers in 17 states. Its most popular product is its readyto-eat mashed potatoes.
Mashed potatoes are No. 1 For 38 years, Mrs. Gerry’s original potato salad was the No. 1 product for the company, but in 2012 that was surpassed by the sales of mashed potatoes.
Brandi Hagen
Chad Vogt is the vice president and director of purchasing for Mrs. Gerry’s Kitchen.The company is based in Albert Lea at 2110 Y.H. Hanson Ave. and its processing plant is at the same location. The company is in the second phase of expanding that plant.
Q: A:
Description Population Population Working age (18-64) Population over 24 with diploma Pop. speaks English less than “very well” Labor force Per capita income Annual average employment Quarter average employment Employment change from prior year Mean travel time to work Unemployed Unemployment rate Pop. below poverty Initial claims for unemployment insurance Initial claims change from prior year Average weekly wage (see chart)
Average annual weekly wage Green: Minnesota Red: Southeast Minnesota Blue: Freeborn County Source: DEED quarterly census of employment and wages
Period Data County rank 2011 31,172 35 2011 -83 35 2001-2011 average 58.1% 55 2007-2011 average 87.3% 69 2007-2011 average 2.3% 21 December 2012 16,482 35 2007-2011 average $24,409 53 2011 12,290 34 2nd Q 2012 12,308 34 2nd Q 2012 -204 2007-2011 average 18 min. 61 December 2012 920 50 December 2012 5.6% 44 2007-2011 average 11% 35 December 2012 194 41 December 2012 -14% 13 2011 $643 42 Source: Minnesota Department of Employment and Economic Development
A PUBLICATION OF THE ALBERT LEA TRIBUNE • FEBRUARY 2013
Freeborn County labor market by the numbers
Page 2 • Albert Lea Tribune • Sunday, February 24, 2013 • PROGRESS 2013
Familiar faces
Portraits of you taken by the Tribune staff
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Danielle Wertman stands in her home amongst pieces she has crocheted. She sells her handmade items over the Internet.
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Tony Segura stands in the McDonald’s near the Interstate 90 exit for Bridge Avenue. Segura has been an employee of the company since he was 15. He now manages the restaurant.
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Lynn Scheevel, left, and Afton Wacholz are athletic trainers for Albert Lea High School. According to the women, it is rare for a school to have more than one. Brandi Hagen
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PROGRESS 2013 • Sunday, February 24, 2013 • Albert Lea Tribune • Page 3
for selecting us
Small Business of the Year! Kelli Lageson, Stacey Bahr
This tractor is a brand new John Deere 8335R. It has 335 horsepower. This tractor is outfitted with a rock box on the front, which are locally made in Emmons.
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Bigger machines, bigger farms By Kelli Lageson Technology is changing farm machinery, which in turn is changing farming. Al Anderson at Ag Power Enterprises in Hollandale, a John Deere dealership, has seen fewer farmers doing the work that used to be done by many more farmers when he started working at the dealership in 1973. Updates to tractors and combines, as well as all the other ag machinery, have made it possible for people to do more in less time. “Farmers who survived specialized in something,” Anderson said. He remembers 38 operations, mostly vegetable farmers, in the Hollandale area when he came to the dealership. Now there are three. In the 1970s, having 500 acres was considered a lot. Now most crop farmers in Freeborn County manage 1,200 to 1,500 acres. There are many more pieces of machinery available to farmers now, too. Anderson said in the ’70s there were a handful of tractors made by John Deere, and now the dealership offers 93 kinds of tractors, with various options. “Everything just got bigger,” Anderson said. And with that, the price increased. Anderson said John Deere tractors in the 1970s cost around $15,000; now some of the tractors cost $200,000. Combine
prices also dramatically increased; in the ’70s a combine could cost $30,000, and now Anderson said a combine “with all the bells and whistles” could be as much as $800,000. So why the cost increase? Machinery now offers so much more innovation and convenience. The big innovation in the 1970s was the enclosed cab, which offered farmers relief from dust and the option of heating and air conditioning. Nowadays, there are the changes a customer would expect, like increased horsepower and better fuel efficiency, but there’s also so much more technology available to farmers. Technicians and parts and sales employees have to take continuing John Deere education courses online just to keep up with all the new technology. “We can help customers during planting season with fertilizer application,” Anderson said. “We can also monitor yields and moisture which helps them select corn varieties for the years to come.” John Deere also offers a service called JDLink, which lets farmers and their local dealership monitor the piece of machinery from an iPhone or computer. The service will alert the farmer and the dealership if something goes wrong, like an alternator failing or if there is low oil pressure. Anderson said the dealership already has used the service to find out
about issues, and then technicians found the machinery using GPS to get to the farm and fix it. JDLink also measures how many hours the tractor has run, and it also measures how many hours the tractor has run idling, or run at 70 percent and so on. Large-operation farmers with multiple pieces of machinery can use the service to set parameters for their employees so that the tractor can only run from 7 a.m. to 5 p.m. or over a certain number of acres. Anderson said he doesn’t know of any farmers locally who do this, but it is an option. Another innovation Anderson is excited about is how some of the more advanced machinery can drive themselves. If a tractor or combine knows the GPS coordinates of the field, a farmer can sit in the cab with no hands on the wheel and the machine will steer itself. The classic image of a farmer on a tractor steering forward while looking backward is fading away. Also, the combine can “call” a tractor via GPS to come alongside it pulling a grain cart so it can collect the crop, using technology John Deere calls implement sync. Anderson said while there’s still a person in the tractor for safety reasons, that the combine has complete control of driving the tractor. “There’s a lot of innovation that a lot of people aren’t aware of,” Anderson said.
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Page 4 • Albert Lea Tribune • Sunday, February 24, 2013 • PROGRESS 2013
It’s back up, running and expanding The biodiesel industry is not just about refining soybean oil anymore
Contractors work in early February to install more than $20 million in upgrades to the Renewable Energy Group Inc. facility in Glenville. One upgrade is the addition of a fatty acid stripper, seen in center.
A biodiesel plant sat vacant from 2008 to 20121; now people are back to work and upgrades are planned By Sarah Stultz The once-shuttered biodiesel plant near Glenville has come a long way in the last few years. By the end of this summer, the Renewable Energy Group Inc. plant will be outfitted with more than $20 million in upgrades. The upgrades will allow the 30-million-gallons-ayear facility to make diesel from low-grade fats, oils and other natural resources that would normally take longer to refine, rather than soybean
oil and other types of refined materials. REG-Albert Lea Plant Manager Bryan Christjansen said the facility will have a fatty acid stripper, which allows the company to take any feedstock that is normally high in fatty acid, strip that fatty acid off of it and then produce biodiesel with what is left over. It will also have new distillation units in place that will produce a cleaner biodiesel than what can be manufactured there today, he said. “To the best of my knowl-
Contractors work to install distillation units at the REG biodiesel plant a mile west of Glenville.
1
edge, no other facility will have this combination,” Christjansen said. “Some have one or the other, but we’ll have the combination of both.” There will also be a new gas line, cooling towers and fuel tanks, among other upgrades. “This plant was originally built for just soybean oil,” he said. “Now we’re going to be able to do a lot more variety.” REG bought the plant in the summer of 2011 after SoyMor Biodiesel LLC suspended production in 2008 due to high prices for soybean oil. The plant started up again in 2011, and construction began in August 2012. Christjansen said there are currently 22 employees with additional staff expected after the upgrades are completed. Many of the current employees were SoyMor employees who had been laid off. Three major contractors have been hired for the construction: Todd & Sargent of Ames, Iowa; Interstates Control Systems of Sioux Falls, S.D., and the Baker Group of Des Moines. He said he expected as many as 60 workers to be working on the project by the end of February.
Sarah Stultz
Four contractors work on a steel beam in early February as part of an upgrade to the Renewable Energy Group Inc. facility near Glenville.
About REG With more than 225 million gallons of owned or operated annual production capacity at biorefineries across the country, Ames, Iowa-based Renewable Energy Group Inc. is the leading North American biodiesel producer. It has the following biodiesel plants: • REG Albert Lea near Glenville • REG Houston in Seabrook, Texas
Why the success of the local biodiesel plant?
There is a growing acceptance of biodiesel Christjansen said the demand for biodiesel across the country is increasing. Some states are already requiring a 10 percent biodiesel blend in diesel fuel, and in 2014 Minnesota will join the group, he said. Currently, the state mandates diesel fuel to contain at least 5 percent biodiesel. Christjansen said it also helps that biodiesel has different markets other than just for fuel. It can also be used as a substitute for heating oil.
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Biodiesel receives tax credits Christjansen said biodiesel blenders receive a federal $1 per gallon tax credit, though there are not state tax credits that apply. He said this helps the industry grow. The federal credit was extended in a vote to avoid a fiscal cliff in January by Congress and President Barack Obama. In a statement after the vote, REG President and CEO Daniel Oh said he was thankful for the support the biodiesel industry received through the reinstatement of the credit. “This tax credit provides certainty for our petroleum distributor customers and, in turn, market stability for commercial biodiesel producers like us,” Oh said.
• REG Danville in Danville, Ill. • REG New Boston in New Boston, Texas • REG Newton in Newton, Ill. • REG Ralston in Ralston, Iowa • REG Seneca in Seneca, Ill. The following biorefineries have yet to be completed: • REG Atlanta in Ellenwood, Ga. • REG Clovis in Clovis, N.M. • REG Emporia in Emporia, Kan. • REG New Orleans in St. Rose, La.
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The facility is owned by REG Christjansen said it helps the local facility’s success to be a part of the largest distributor and manufacturer of biodiesel in the country. Renewable Energy Group Inc. was formed in 2006 as an independent corporation and is headquartered in Ames, Iowa. It has more than 225 million gallons of annual production capacity at seven biorefineries across the country. Four more plants are yet to be completed. Christjansen said having the capability to procure the feedstock and sell the biodiesel with several other facilities also adds to the success.
Enjoy the Silence.
Tribune Albert Lea
PROGRESS 2013 • Sunday, February 24, 2013 • Albert Lea Tribune • Page 5
Brandi Hagen
Mrs. Gerry’s Kitchen has expanded from the kitchen of Gerry Vogt to an entire plant at 2110 Y.H. Hanson Ave.
A contract with SuperValu helped to grow company in early days Continued from Page 1
Q: Did they antici-
pate the company was going to take off like this?
A:
No, not at all. Their first customers were the Schweigert sales people. My dad was one of the Schweigert drivers, and so he went around and got other drivers to buy in on this. Then they landed SuperValu, a distributor out of the Minneapolis market, and then it really started to grow. Other distributors started to come on periodically, and it just kept growing and growing. Really it came down to that they were discovering that a quality ready-made salad could be produced for them without making it in the kitchen and they could sell it on the store shelves. That’s what really drove the sales was the quality.
Q: When did the
we did our expansion. We were growing at such a pace we could not keep up with it. We had to expand to make room for more processing, and thus more storage to the north and opening up the south for more processing.
Q: Do you have ad-
ditional contracts that you are expanding for, or are you expanding some of your existing contracts?
A: One of the bottle-
necks for us was cold storage, and the fact that our potato processing of mashed potatoes continued to increase year upon year forced us to do something different. It wasn’t necessarily this new customer or that new customer; it’s all the sales increasing year after year. Sales continue to increase is the bottom line. We get new customers all the time.
Q: Why did the
company decide to do it all here as opposed to somewhere else?
What has been done and what is still left to be done?
It’s a great community. Albert Lea has been very helpful, in being an asset to us. We think this is a great community to not only raise families but employ people. We wanted to do everything we could to keep it here, and that’s why we’re here.
The shell is up. The dry storage aspect of the addition is full, and we’re waiting for our refrigeration building to the east to get done so we can cool it down, put refrigerant in there, and then move finished goods in there. We’re into Phase 2 of the project, where we’re redesigning the interior of the existing plant to accommodate additional potato-processing equipment. We’re basically redesigning to accommodate more potato production. The bottleneck was cold storage. Unless we alleviated that pressure, we couldn’t redesign to accommodate more processing.
A:
Q:
You ended up receiving help from the city? Did you get any other help?
A:
We received a TIF, tax increment financing, and we received a low-interest loan from the USDA Rural Development Fund for $1 million.
Q:
What was the total cost of the whole project?
A:
Q:
A: I’d prefer not to
What’s the timeline for when everything is going to be done?
Q: Where are you
Probably August of 2013. That’s when
say.
at with the expansion?
A:
we’ll have cold storage up, potato processing going, a new freezer, double our finished-goods cooler and then just some tweaks in production.
Q:
When will you be adding the new employees?
A:
The additional employees will gradually happen as we get a feel for how the new processing is going to operate. They will be added here and there as needed.
Q:
How does everyone in the company feel about the expansion?
A:
The employees have been great. They’ve stood behind us and embraced this whole thing. We’re supplying more jobs to the community. It’s been a great process, a lot of work.
Q:
Looking back since 1973, what do you think about how far the company has come since it started?
A:
It’s phenomenal. What a success story she’s had, and all the glory to God because he has had his hand on this business from the beginning. It’s just been a great success story for this community, and we hope it continues for many years to come.
Q:
You credit the success you’ve had to God. Can you explain that more?
A:
It started in the beginning when my dad came home to my mom. The first thing they did when they went to bed, they said we need to pray about this and we need to sense that God is leading this if we’re going to be successful. From the beginning we’ve relied upon God’s hand, and we still do to this day. God is a very important part of this company, and we feel without his blessing on it, it would not be where it’s at today.
development of the mashed potatoes come in?
A:
That came about in 2005. Our CEO from England, Alan Oliver, was over in England and visited a manufacturer that did mashed potatoes and came back with that idea that we could do something similar. That was kind of the birth of that. We started finding what was out there in the market, who was making mashed potatoes and what we wanted to offer. What was the best product out there? We wanted to at least match it, if not out do it. And we outdid it. There’s no doubt about it.
Q: A: It is.
Is that your topselling product?
The original potato salad was my grandmother’s recipe. That was the No. 1-selling item for 38 years, and last year premium mashed potatoes surpassed that product as No. 1. That’s really why
The expansion of Mrs. Gerry’s, shown here, is on the north side of the building. It adds 37,000 square feet to the plant.
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Page 6 • Albert Lea Tribune • Sunday, February 24, 2013 • PROGRESS 2013
Tim Engstrom, Stacey Bahr
High quality products that will meet your expectations!
Jensales owner Paul Jensen is selling farm implement manuals over the Internet in more ways than one. Above is his work desk, but the Tribune placed a photo of him in front of nondigitized manuals into the computer screen.
Jensales ventures into e-commerce By Tim Engstrom
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Manchester-based Jensales isn’t just about selling tractor manuals anymore. The company has ventured into Internet commerce, sales of tractor parts and directto-garment printing, and all three have been good for business. Owner Paul Jensen figured sales over the Internet in general would be a big hit in rural areas, which is where most of the customers who buy parts manuals, operator manuals and service manuals for older tractors and other aging farm equipment reside. After all, rural folks have to travel farther to buy
products they use every day. However, it took longer than he expected, which he said was due to rural residents typically not being early adopters of technology. That has changed in the last three or four years, he said. Many sellers of ag equipment have increased their web presence. Jensales invested labor and money into developing an online presence, with a website capable of e-commerce and an intuitive user experience. As a result, the company saw a 300 percent increase in sales in 2012. Jensen said part of the reason is the website but
part of it is the company partnering with larger companies that sell parts for ag machinery. When parts are sold for old tractors, customers often request a manual. “Manuals are like fries,” Jensen said. “People buy a part and get asked, ‘Would you like a manual with that?’” The parts companies can sell manuals, provide the order to Jensales, and it ships to the customers. Likewise, when customers buy manuals, they often are seeking parts, too, Jensales in 2013 intends to increase its sale of parts through the website and telephone, even though4P. 7
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PROGRESS 2013 • Sunday, February 24, 2013 • Albert Lea Tribune • Page 7
Excellence in roofing since 1925
Tim Engstrom
A direct-to-garment printing machine enables Jensales to print cherished agriculture implement logos on shop rags. Paul Jensen said this has been a popular gift item for fathers and grandfathers.
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Jensales sells thousands of parts it doesn’t have in stock, but it does have about 1,000 parts in stock. Some of them are for sale in a little store at the front entrace.This includes tractor headlights, steering wheels, nameplates that can double as paper weights and other classic farm pieces.
Printing on garments is changing Continued from Page 6 requested parts are not in the building. Jensales shoots the order over to the correct parts company, and that company ships the part to the customer. “It’s a symbiotic relationship,” Jensen said. “They sell our manuals, and we sell their parts.” Jensen said being a seller of parts manuals gives Jensales a customer-service advantage that often parts guys don’t have. “The root of the story is we have always been asked for parts,” he said. He told an anecdote of a man in the Canadian province of Saskatchewan who had been told by his local implement dealer that the part he sought didn’t exist. The man simply couldn’t find the right term to describe the part. He tried three other parts places and got nothing. The man finally called Jensales, which found the part number in a Saab-Scania manual. Once a part number is discovered, finding the part becomes much easier. Jensales ordered the part through Tom’s Agri Diesel in Harlan, Iowa, which shipped the part — an internal clutch
bushing — directly to Saskatchewan. “We never had the part on site, but we were the only ones who could find what he needed,” Jensen said. Jensales has access to sell more than 100,000 parts, he said, but it maintains an inventory of about 1,000 parts in Manchester — “1 percent of what we offer,” he said. That includes a storefront with collectibles such as tractor lights, steering wheels and nameplates that can double as paperweights. Online sales likely will continue to rise in 2013, thanks to Amazon. Even though many companies have their own websites with the ability to sell products, they also will sell their goods on Amazon because, as Jensen noted, customers trust Amazon. However, anyone who has ordered books on Amazon knows users like to see the first few pages. What will they be getting? Jensales is tackling the gargantuan task of getting that accomplished. After all, it cannot just be title pages. A human must look at the digital versions of the manuals and
declare what users find worthy, Jensen said. Jensen also is looking at eBay, which is changing its model to being more of a general commerce site and less of an auction site. The third area where Jensales has expanded is direct-to-garment printing. He said Jensales can print on anything made of cotton — T-shirts, towels, rags, canvas and so on — almost like how a computer prints to a printer. There is no set-up fee like with silkscreens, and it can print on any color, which often was a limitation of high-heat transfers (iron-ons). The ink, he said, bonds to the threads so the image stands up well over time — no cracking or peeling. He said Jensales is the only company in the region doing direct-to-garment printing. The closest competitor is in Rochester. One popular product, Jensen, has been custom rags. Farmers like to carry a rag in their overalls, and Jensales makes them with logos of companies such as International Harvester, Massey-Ferguson, Caterpiller, Allis-Chalmers and John Deere.
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Page 8 • Albert Lea Tribune • Sunday, February 24, 2013 • PROGRESS 2013
ebrating l e C
1912
100th An n Celebrat iversar y ion, 2012
2012
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Since opening in 1912 in Hartland, the bank has grown quickly to be one of the soundest financial institutions in the area with three locations. Thank you to all of our customers who have helped us grow and provide a valuable service in our community.
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We invite all local businesses and families to consider us to be your financial services partner. We’re celebrating 100 years of service, and just getting started!
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