J.E. Russell Produce Ltd. has seen substantial sales growth since the pandemic to customers who don’t come to the Ontario Food Terminal, says Hutch Morton, senior vice president for the Toronto-based wholesaler.
“Since 2020, we continue to make more sales without a customer present on-site seeing, touching and tasting the product,” Morton said. “Initially this was a requirement of pandemic precautions for staff and customers. Ultimately, because of the trust our sales team has built over time with customers and through various communication channels, we have seen a growth in sales placed through non-face-to-face transactions.”
Morton said the company also has increased delivery capabilities and offerings to support customers who are not present at the terminal on a daily basis.
Related: How inflation is influencing Toronto retailers and consumers
Foodservice has made a strong comeback since the darkest days of the pandemic, he said.
“We are happy to see that our friends and customers in the foodservice space are continuing to get back to a level that is approaching the world before COVID,” Morton said. “While we aren’t totally back, I’m relieved that we continue to be headed in the right direction. Retail sales continue to be strong, though because of the challenge with some of our categories that have fixed pricing, margins have been tighter.”
The wholesaler, founded 45 years ago, has a longtime “laser focus” on quality and service, Morton said.
Sales boost
The company has seen strong growth in its newest categories of grapes, melons, citrus and pineapples, Morton said. “We continue to invest in these programs and look forward to watching them further expand as we become better known for the great brands that we’re marketing.”
Looking ahead, Morton said the focus of J.E. Russell Produce’s growth over the next five years will be on building volume with its current and new lines.
“We anticipate outgrowing our current space at the Ontario Food Terminal and are actively exploring and charting a course of growth ahead,” he said. “It’s a very exciting time at Russell! That said, the focus will continue to be on the culture and ethos of the company and delivering that each and every day to our customers.”
Related: Five retailers dominate Canada’s grocery sales
Facing inflation
Inflation is a challenge for consumers and the entire supply chain, Morton said.
“Historically, while our top-quality products and well-respected brands have been key drivers of sales, we have seen a shift to a focus on price,” he said. “That mindset combined with the leafy greens’ shortage in the fall transition in California ... created some really tough market conditions. However, our team’s relentless drive to deliver value for our customers opened some new doors and created new opportunities for product lines and shippers not typically seen here.”
J.E. Russell Produce is positioned so it can find customers at the high and low end of the spectrum and serve all with the same customer service, he said.
“Ultimately, consumers are trying to make their dollars work as best as they can when filling up their carts, and it’s been a challenge for all parts of the industry to find their price to keep the momentum moving forward,” Morton said. “I don’t expect that this year will be a perfectly straight line up and to the right with the potential for a slowing economy and more cash-strapped consumer, but we will continue to work hard to deliver value and the best produce that we can bring to the market.”
