Ch. 4

96% of the companies that export in the U.S. are small companies, and Amy’s is one of them. Since Amy’s products are domestically produced, they avoid licensing and contract manufacturing yet they must still adhere to the principles of the marketing mix. Research must be done to gather information in order to create a global marketing strategy. In terms of marketing, “marketing managers” (in Amy’s case, Rachel Berliner), must evaluate the four P’s: product, place (distribution), promotion, and price. These include such things as product adaptation (cooking instructions may vary), transportation, advertising, and exchange rates.

Amy’s has successfully reached global markets most likely on the strength of their competitive advantage. They are still considered “a big fish in a little pond”. The market for packaged health foods is growing yet has considerably small competition. They can still be considered a niche market in that they (obviously) have good growth potential but aren’t crucial to the success of an abundance of major competitors.

Ch. 4: Developing a Global Vision

Amy's leads the nation in prepared organic food sales and boasted revenues of $240 million in 2008. Nationwide sales in those numbers bring the question: “How can a company stay true to their health conscious values in numbers so grand?” Considering the nature of Amy’s Kitchen (natural, organic foods) the company’s practices may not seem conducive to global sales, at least not without the challenge of maintaining the level of quality that they are known for.

All of this said Amy’s hasn’t turned their heads to global responsibility and expansion. They started out in the U.S. in 1988, then Canada in by 1991 and continued on globally as sales grew sky high in 1995. And this all started with an organic, vegetable pot pie. Amy’s theme remains “at home” despite catering to a global market. Amy’s product development is geared toward feeding gaps in the market, including vegetarian and special diets. This market is found where ever people eat (and that’s everywhere). “Freshness” is crucial part of Amy’s business strategy and so far they have successfully maintained this image.

CH 3: Ethics

As a vegetarian I'm absolutely smitten with Amy's Kitchen's organic health foods. It’s the largest vegetarian line of packaged foods on the market. I'm one of those label-readers in the grocery store but because of Amy's undeniable charm I've let down my guard. "Organic", "All Natural Ingredients", "No Bio-engineered Ingredients", "Made with organic vegetables & grains", are all labels that can be found proudly on Amy's products. When I first fell for Amy's I was attracted to this packaging and started out reading all of the ingredients. I wouldn't be so bold to say that I'm an educated food consumer but I do possess quite a bit of common sense and after years of reading labels I tend to stay away from foods that contain ingredients that sound like chemicals, i.e. "glutamic acid". So I ASSUMED that all of Amy's products are chemical free and stopped reading the ingredients on the back of the box. That's any food company's dream consumer, a fully trusting one. I was silly to put my health in the hands of a food corporation.

I've recently discovered that some of (but not many) of Amy's products contain an ingredient called yeast extract. Yeast extract is a processed yeast product used as a "flavoring additive". Yeast extract contains glutamic acid which is also found in monosodium glutamate, more commonly known as MSG, and causes the same health problems. The effects from MSG can range from migraine headaches and dizziness to according to doctors like Russell Blaylock, author of Excitotoxins, may aggravate or precipitate many neurological disorders and cause harm to the nervous system. Looking a little further I've also found that another ingredient used by Amy's is hydrolyzed corn and soy protein which almost always contains MSG or creates MSG during processing.

Amy's is a company that targets vegetarians, the diet-restricted, and health conscious consumers. As the leading producer of packaged "health foods" they carry the huge responsibility of being "HEALTHY". That's what consumers expect when they buy Amy's products. A response to an article written about the matter, ("How I got blindsided by yeast extract in Amy's Kitchen organic foods" by: Mike Adams, the Health Ranger, Natural News Editor) can be found here: http://www.naturalnews.com/021674.html. This article received a large amount of reader feedback. Bill Twieg, the Technical Director of Amy's Kitchen, responded by explaining that Amy's Kitchen is committed to serving a health conscious community and that they would work on eliminating yeast extract from their products. Amy's full response can be found here: http://www.naturalnews.com/021651.html.

Amy's has always fully disclosed all of its ingredients on their packaging, no secrets. Amy's customers demand not only healthy food but FLAVOR and Amy's has delivered both to a great extent. The challenge remains to find a balance. Amy's is less than perfect but they are striving for this balance. Their response to people’s concerns showed that they are willing to work to satisfy their customer’s needs. Amy's standards are high and their performance represents that. Well it's back to the back of the box for me and for many, still loyal, Amy's customers.

CH 3: Food from your friendly neighbor

There is something about biting into a just-picked, red, juicy, sun-ripened tomato that will bring one to a deep-rooted, natural human place. Even just for a moment and even if in ones 450 sq. ft. Brooklyn apartment. Those moments are few and far between for most. We don’t all have thriving gardens in our back yards… We don’t all have back yards. For most Americans what was “once upon a time” a trip to the garden is now a trip to the local fruit stand, grocer, or food super-center. Most people visit a grocery store that seems to magically have the produce they desire even when it’s not in season. It may not be the juiciest, ripest tomato, but it’s there and many people don’t think twice about how it got there. People are very often unaware or disconnected from the journey that food takes to get to us, the resources involved and the great impact on the environment. Amy’s Kitchen receives over 50% of their vegetables from the organic gardens within 200 miles of their headquarters, some even irrigated by water from their own pond, really. What’s so great and responsible about this company and all local farmers, is that they are taking some responsibility off of the average consumer. The closer the garden is you eat from (within the US and within your community) the less waste that is involved in all areas of production and distribution. This means less cost to the environment. It’s just fact. Amy’s has something good going and we’re all benefiting. This is what the modern world requires now, mindful options made easy.

CH 2: Strategic Planning

It’s exciting to see a small business born out of such a unique start become a success. It’s a reminder to all small business owners that success is possible, even from the most humble of starts. They started with a great idea and a passion for their product which guided them to the top. Andy and Rachel Berlinger (the founders, CEO, and head of marketing) had what at one time was probably considered a niche competitive advantage, a growing market with very little competition. Their business sprouted just around the time that the general public was becoming more aware of dietary health issues and the correlation between chemicals in food and health. As the hectic demands of daily life persisted, Amy’s Kitchen had a great starting ramp into what is known a thriving business. Now 22 years later they continue to lead the frozen health food market. They separate themselves by exceeding people’s expectations in taste and quality. This consistent attention to quality as well as an obviously sound market plan has kept them at the top of their game with still very little competition.

America's Healthiest 2009 Awards

Amy’s Kitchen started out as a small business venture in Petaluma, California by a couple named Rachel and Andy. They decided to name the company after their daughter, who was born right around the company’s startup. Their products are now found all over the nation’s shelves and are rated the top of the natural frozen foods chain. The now hugely successful company is often acknowledged in various magazines including Good Housekeeping, Veg News, Pilates Style, Seventeen and Fortune. Amy’s Kitchen’s frozen Indian Mattar Paneer entrée was awarded America’s Healthiest in Health Magazine’s 2009 awards. Continuing with their commitment to quality, Amy’s Kitchen is consistently wowing customers with flavor and variety. They have a countless list of dishes covering one’s ethnic tastes and diet restrictions, and they are rapidly adding to their menu. Once a small family business, they are now a large company still offering small business quality and dedication to fulfill their customers desires.

Amy’s Kitchen

Amy’s Kitchen is the leading frozen natural foods brand. They started out as a small family business in 1987, working out of their home and barn. Their mission was to create a healthy, organic, easy to prepare meal that catered to people that don’t always have time to cook from scratch. Their first product, which was an instant success, was their vegetarian vegetable pot pie. They not only, very quickly, had a huge vegetarian following but a large following of people who simply didn’t have time to cook and wanted a frozen dinner that tastes good. As a loyal Amy’s Kitchen customer I can say that taste, as well as convenience, is what keeps me coming back. Amy’s is still “#1 in popularity and sales” today and they credit their success to their “total commitment to quality”.