European Imports Ltd.

Food, glorious foodGreat food from interesting places is the business of European Imports Ltd. Ruari McCallion gets a taste from Trish Pohanka. As well as interesting dances and colorful parades, the immigrant heritage of the US brings us something else to enjoyÔÇöfood. Fancy a taste of Italy, a soup├ºon of France, a dash of Australia or a slice of Argentina? It shouldnÔÇÖt take long to find, and it may well be served in convivial restaurant surroundings.   Your hosts may very well, in turn, have obtained their supplies from European Imports Ltd., which has been specializing in importing great tastes from faraway places for over 30 years.ÔÇ£We are a business-to-business operation, selling to specialty food retailers and upscale restaurants and hotels,ÔÇØ says Trish Pohanka, director of purchasing and a 16-year veteran with the company. ÔÇ£We were founded in Chicago in 1978 by Beverly and Seymour Binstein, and weÔÇÖre still a family-owned company. We now have five warehouses, in Chicago, Atlanta, Dallas, Arizona, and as the result of a recent acquisition, San Francisco. We sell to 40 states; we even have one account in Alaska, in the center of the state.ÔÇØThe California connection came about as a bit of serendipity. European Imports didnÔÇÖt have an interest in pursuing the well-served California and West Coast market, but a company there was a good match, and it approached its Midwest colleague with the right offer at the right time.ÔÇ£The company is very strong in our core markets in the central US, and we saw no need to expand,ÔÇØ Pohanka says. ÔÇ£But the company there pretty much mirrored what we do, and if we can find a good match and can move in without changing our core business, then we will consider the opportunity.ÔÇØEuropean ImportsÔÇÖ expansion has been a combination of organic growth, new markets and acquisitions. It launched its foodservice operation in Chicago in 1984, serving white-tablecloth restaurants, caterers and foodservice jobbers primarily with European cheeses. It has never gone full-speed down the acquisition trail; its first was the cheese and specialty food division of Noon Hour Foods (Chicago) in 1987. Six years later, the distribution business of Charlotte Charles, Inc. (Chicago), joined the family. Four years on and another Chicago company, Wild Game Inc., came aboard. The year 2000 was relatively busy, with two purchases: the distribution business of the Life in Provence label and Pee-Wee Imports, which enabled the company to branch out of its heartland into the growing market of Arizona. Since then, Raisin River Fancy Foods, another Chicago business, has joined, and Classic Gourmet Inc. of Atlanta provides a strong base in the Southeast. In 2007, the distribution business of two Dallas-based companies were acquired, Gourmet Foods International and World Delicacies.com. While its geographical area has expanded, its core market remains a constant, as do its products. ÔÇ£Thirty-three percent of our business is cheese,ÔÇØ Pohanka says. As itÔÇÖs coming from far afield, that must present some logistical challenges. ÔÇ£Handling perishables is one of our core capabilities, but it isnÔÇÖt all as short-term as you may think. Brie, for example, has a long shelf life. The more perishable items we ship in by air.  Our forecasting system takes into account our sales over the past three months, 12 months, and the levels of the previous year, so any guesses are very educated. Shipments leave weekly from France. The lead time is an issue with some countries: we bring in lamb, beef, olive oil, nuts, muesli, and Murray River salt, an inland salt from Australia, and lead time from there can be eight weeks. We will airfreight if necessary and even inventory-fill from local sources, if need be.ÔÇØ In the Chicago warehouse, European Imports uses RF tagging, which has greatly aided logistical control. ÔÇ£All items are scanned in and tracked, with very precise dating,ÔÇØ Pohanka says. ÔÇ£If something is nearing the end of its shelf life, we offer incentives to help move it.ÔÇØ Government-mandated bioterrorism registration and procedures for suppliers have given a push to expedite products through anti-terrorism import controls and thus has greatly aided logistical control. One thing that has grown is European ImportsÔÇÖ market. Even with the exchange rate moving against the dollar and making foreign foods more expensive, people remain interested and look forward to their taste of something different. ÔÇ£WeÔÇÖre dealing with more sophisticated consumers,ÔÇØ she explains. ÔÇ£Fifteen years ago these foods were seen as luxuries, but theyÔÇÖre more available today and are seen as offering real value. WeÔÇÖre selling to educated consumers who will try new things and to restaurant chefs who like to be on the cutting edge.ÔÇØ However, the company has to be careful with selection and cautious about introducing products at too high a price. ÔÇ£What we have to be able to do is react to different parameters, like raw commodities, freight charges and other items rising in price. And there are weather conditions to consider, also, both in the producer countries and along transport routes. We donÔÇÖt sell the same thing in all areas. While we have nationwide distribution, the majority of products come through Chicago, and we allow our other warehouses to pull them out at the rate that suits them.ÔÇØSome customers still like to do business on the phone and by fax, so the company has internal salespeople who get to know their accounts. The representatives on the road are benefiting from investment in technology, such as laptop order-entry systems, which helps them do their jobs better and improves European ImportsÔÇÖ process control also.ÔÇ£We have around 200 employees, and close to half of them are salespeople. Our representatives have laptops with order-writer systems. TheyÔÇÖre able to check inventory and pricing and are kept up to date by email. The human element in our industry is extremely important,ÔÇØ says Pohanka. ÔÇ£Our sales revenues are now in the $100 million area, including our most recent acquisitions.ÔÇØ For a company that started as a small idea in Chicago, thatÔÇÖs food for thought.┬á