Business Member: Stemmler’s Meats

Stemmler’s Meats

From Artisan Family Business to Large Scale Manufacturer

By Karen Sample and Janet Morley

Founded in 1985, by Gerard and MaryAnn Stemmler, Stemmler Meats & Cheese is committed to delivering artisan-quality products. Originally located at a small retail outlet in the St. Jacobs Farmers’ Market, Stemmler’s products gained popularity quickly, which allowed them to open their first bricks and mortar store in Heidelberg. Soon after they built a larger facility next door to meet the needs of their growing clientele.

Next came a manufacturing location in Waterloo, with the family leasing half of a large facility, which presented a whole new set of challenges. Gerard and MaryAnn’s sons, Kevin, Shawn and Terry, were now running the company with a focus on Stemmler branded products regulated to sell only in Ontario. They soon realized they needed experienced business guidance to keep

the family business growing while operating a large scale manufacturing facility.

Taking the Business to the Next Level

Enter Atul Gupta to help grow the Stemmler’s brand to a new level of success. The Stemmler brothers reached out to Gupta in 2018 requesting assistance with driving sales and welcomed him as their Chief Revenue & Operating Officer in January 2019.

With over 35 years of experience, primarily in consumer-packaged goods with a Fortune 500 Company, Gupta knew what needed to be done and how to do it. Says Gupta, “I’m the guy that comes on board to assess the landscape, prepare and execute a strategy that will scale a business and result in substantial profitable growth.”

Gupta says of the three brothers, “They’re not afraid of change, they just don’t know how. It’s a totally different business and business model than their parents ever imagined it could be. The challenges are very different.”

Growth and the Pandemic

When Gupta joined Stemmler Meats, the company had already been running their Waterloo manufacturing facility for three years. At that point they were easily keeping up with customer demand both for retail and for wholesale customers. Gupta saw that the facility had tremendous potential, right up to the global level, but was only running at a small fraction of its total capacity.

Significant expansion requires careful planning. Gupta hired Heather Nahatchewitz, an experienced Senior Marketing Manager who previously worked for Meat & Poultry Ontario, to help him craft the strategy. One of their goals was to use digital marketing and introduce real sales acumen to help drive potential sales leads.

Gupta and Nahatchewitz got the wheels turning by achieving federal status and then persuaded the Stemmler brothers to consider co-packing. Stemmler’s had space, capacity, an excellent reputation and top-quality artisan products. They needed a broader customer base to make the most of that capacity and expertise.

COVID-19 however, put those plans on hold temporarily. Due to the change in retail purchasing habits, the Heidelberg store saw extraordinary growth over the two years of the pandemic.

Sales Build Expansion and Modernization

Stemmler’s started looking for co-packing opportunities that focussed on the company’s core competencies including bacon, sausages and protein snacks (jerky and meat sticks). The company decided to expand their flavour profile options with additions like Dill Pickle, Sweet Heat and Korean BBQ to complement their excellent quality, but traditionally flavoured, jerky and meat sticks. The increased flavour profile showcases Stemmler’s ability to design unique, flavourful recipes and appeals to co-packers looking for something to help them gain market share.

The business is now delivering double digit month-over-month and quarter-over-quarter growth, to the point where Stemmler’s leased the remaining half of the building that houses their Waterloo manufacturing facility. Gupta expects that they will more fully expand into that space within the next 24 months.

What’s next?

Currently, they are considering automation and implementing true digital systems. “It’s critical for us to be cost competitive. That requires a different type of employee base. It’s not just production workers. Now the manager level becomes very critical,” Gupta says.

As one example, the company now has a team responsible for regulatory compliance and quality assurance led by an exceptional Director. “Our regulatory compliance has got to be bang on. We’re dealing with co-packers that are building their brands for North American exposure, and some even looking at international. The quality is absolutely critical. The stakes are higher,” Gupta explains.

Future of Stemmler Meats

Higher stakes mean that along with automating manufacturing in the Waterloo plant, marketing for both locations also needs to be up to date. Gupta has put a sales team in place and under Nahatchewitz’s savvy guidance, they are using Search Engine Optimization (SEO) and digital marketing campaigns with geo fencing to target geographically pertinent markets and drive leads. It is working. They have also initiated Enterprise Resource Planning (ERP) systems to allow them to use real time data to manage the business.

Gupta has devised robust business and financial plans that forecast manageable, steady growth over the next three to five years. Gupta says, “This is not a company that has to be built on hierarchy.” As the business grows, he will continue to hire for key management positions as needed and also ensure we have the right operational talent on the floor to drive the cases out the door effectively and efficiently.

Advice for others looking to scale their business

Gupta says you really need to understand what you’re getting yourself into when you’re looking to make an investment or expansion. The firm commitment to product quality stays the same, but everything else changes when scaling. To avoid

financial pitfalls, it’s important to acquire qualified financial, human resources, and operational management when you’re looking at moving from a local to a national or international level. The earlier an expanding business can put great people in place to supplement existing areas of expertise, the smoother the transition to national and international markets will be

The Stemmler Family

While Stemmler’s grows, they will never lose sight of where they came from. Their original Heidelberg location will remain. The brothers will follow in their parents’ footsteps, continuing to be hands on in the plant knowing they can trust Gupta and the team to give them the data and information they need to make business and financial decisions that continue to drive success.

If you are driving through Heidelberg one day, be sure to stop in. Don’t be surprised if you see MaryAnn in the store, continuing to set an example for the next generations. With the Stemmler family at the helm, there are three things that won’t change as they grow: quality product, hands-on, hardworking owners and excellent customer service.

Meat and Poultry Ontario

Gupta says membership in MPO is important to Stemmler Meats. Having an association with regulatory expertise just a phone call away avoids unnecessary delays in production and the confidence we are meeting all requirements.

The camaraderie, idea sharing and knowledge transfer that takes place during MPO events cannot be matched by any webinar or breakfast networking group. “These are our peers with the same challenges and questions we have – its nice to know we are not alone,” concludes Gupta.

Kevin Stemmler

3031 Lobsinger Line

Heidelberg, ON N0B 2M1 Canada

info@stemmlermeats.ca