Yves Veggie Cuisine: 12 years old and growing! [Promotional supplement]

Award-winning food company ready for the next century This year marks the 12th anniversary of Yves Veggie Cuisine, the award-winning maker of vegetable-based wieners, dell slices and burgers. And with the opening of a brand new production facility, a continuing line-up of innovative new products and ambitious plans for expanding global exports, the Vancouver, B.C.-based company has a lot to celebrate. "This is a company that's here to stay," says founder and president Yves Potvin. Only a dozen years separate the thriving enterprise of today from the small-scale operation Yves Potvin started in a room over a butcher shop in 1985. Back then, Potvin found little support for his idea to make and market meat alternative food products. "People thought I was crazy," he says. "it took me three years to get a line of credit at the bank." Yet, with an initial investment of $10,000 of his own money and $30,000 more borrowed from family and friends, Potvin has taken his company on a remarkable journey with annual growth rates running 35% to 40%, one successful product launch after another and a profusion of entrepreneurial and best product awards. Today, Yves Veggie Cuisine manufactures over 3,000 tons annually and the products are found coast to coast in grocery, health food, convenience and drug stores. About half of Yves' production is exported to the U.S. and four months ago the company began shipping product to the United Kingdom where, Potvin says, Mad Cow Disease is making people look for alternatives to eating meat. How did a fringe company making what many considered to be "vegetarian food" become so mainstream that its brand is carried in 97% of food stores in Canada? For one thing, Potvin knows food and knows how to make it taste good. He trained as a French chef at Ste. Hyacinthe Professional School of Cooking in Quebec and worked for years in catering and restaurants. For another thing, he recognized that a growing number of people were becoming caught up in the health craze of exercise and eating less fat and more vegetables. Why not come up with a healthy fast food that would appeal to active, health-conscious consumers who were concerned about cholesterol and fat intake? By the early '80s, Potvin was in Vancouver experimenting with vegetable protein. He knew that some companies were already making wieners out of chicken and turkey, low-fat versions that had some appeal in the market. At the time, no one was making a tasty meat alternative using vegetable protein. "No one knew how do it," he says. "But it makes sense to invest more and more in vegetable protein, especially with doctors and government telling people to eat more vegetables and fruit. On January 29, 1985, Yves Fine Foods Inc. was incorporated and the first plant opened above Save-On Meats in downtown Vancouver. On February 1, production began on the original Tofu Wieners. Later that year Dell Slices were also introduced. Although the products first began appearing in health food stores, Potvin had already decided not to target the vegetarian market. He insists that the food his company makes is not "vegetarian food"--it's food that happens to be made from a vegetable source. "I looked at the mass of the population and saw a market there because more and more people want to diversify their protein." But the early years were difficult. "In the '80s, if you sold healthy food it was considered granola," says Potvin. When he went to parties and told people he made vegetable hot dogs, people laughed. Yet, his training as a chef helped at least to get retailers to listen and consumers began buying the Yves products, liking them and buying them again. By 1987, the company moved to larger facilities in Vancouver's industrial area and the next year brought out Chili Dogs, a spicy version of the original wiener. reggie Wieners followed in 1989 and in 1990, Yves launched the first of several vegetable-based burgers, Garden Vegetable Patties. The move to the mainstream market was enhanced by a public relations break in 1990 when Yves Tofu Wieners were chosen out of more than a dozen different tofu and low-fat hot dogs to be sold in Candlestick Park, home of the San Francisco Giants. Al Rosen, general manager of the Giants, said the Yves wieners were chosen for "their authentic look and taste." The following year, with a new brand name, Yves Veggie Cuisine, and a new logo, the company launched Garden Vegetable Patties with Mushrooms and Fine Herbs. In 1992, Burger Burgers, Fat-free Veggie Wieners, Deli Slices and Chili Dogs came out. That year, the honors and awards began rolling in. Yves Potvin was honored with a Canada Awards for Business Excellence, receiving a double award in Small Business and Entrepreneurship. In 1993, with yet another new product, Veggie Pepperoni, on the market, Yves Veggie Cuisine became the official supplier of Veggie Dogs for Paul McCartney's North American concert tour. The company also received a Manning Foundation Award for Innovation in recognition of excellence in Canadian innovation. By 1994, the grocery industry was bestowing best new product awards on Yves reggie Cuisine. reggie Pepperoni won not only the Canadian Grand Prix New Product Award, but also the international food industry's top prize--a SIAL D'Or for Best New Product in the Deli category, out of entries from 18 countries. That same year, a B.C. Trade Export Award recognized Yves Veggie Cuisine's export sales rising by 90% from 1992 to 1993. Meanwhile, the little company was growing at annual rates of 35% to 40%. "It's very challenging financially to keep up such growth," says Potvin. "The company becomes cash hungry and needs constant reinvesting." Over the years, the production facilities had expanded into adjacent buildings to keep up with production, eventually taking up 21,000 sq. ft. "We ended up with four different plants each within 100 to 200 feet of each other," he says. "We were transferring goods through the back alley. During peak season we were operating 24 hours a day, seven days a week and it became a logistical nightmare. The back lane became a forklift highway." With an eye to the future, the company sourced land on Annacis Island, an industrial park near Vancouver, as a site for a new larger plant. "We bought the land and waited for the right time to build," says Potvin. While waiting, the company focused on research and development and introduced more new products--Fat-free Garden Vegetable Patties, Veggie Bacon and fat-free Burger Burgers in 1995 and Hot & Spicy Jumbo Veggie Dog and Veggie Pizza Pepperoni in 1996. And more industry honors arrived: a Bronze award for Best New Product from Alive Magazine and another Canadian Grand Prix New Product Award for Burger Burger in the Veggie Lifestyle category. Business in Vancouver Magazine, gave Yves Veggie Cuisine the New Year Achievement Award, "Million Dollar Achievers", in recognition of achieving more than $10 million in sales. By 1996, the time was right to build the new plant. "We were at capacity and couldn't produce anymore at our old place," says Potvin. "And the company was mature enough to take major production under its belt." The new 52,000 sq. ft. facility took eight months to build and cost $5 million. The company moved in October, 1996, although the official opening was held in April, 1997. It's a big step to open a new plant," Potvin says. But he is optimistic. The factory was designed to grow for the next five years. "It's a wonderful building, very innovative in its use of color and the way it's built." And he says it is more efficient than the old place. The new factory has 27 foot ceilings which allows stacking pallets five high in fridges and freezers. So, what's Yves Veggie Cuisine going to do with all that space? Potvin is bubbling with plans and ideas. Recently another new vegetable protein product, Just Like Ground, was launched, as a substitute for ground round. It comes in two flavors, regular and Italian, and can be used to make "meaty" spaghetti and shepherd's pie. In the fall, Yves Veggie Cuisine plans to introduce a line of fresh, vacuum packed concentrated vegetable soups as well as a line of "centre of the plate" meatless entrees such as Sloppy Joes and meatballs. Even more ambitious, Potvin says he's looking at expanding further his international market which already includes six countries in Europe and Asia. "There are a lot of vegetarians in the world, but I don't think they necessarily want to eat burgers," he says. "We'll flavor and shape the products to the local taste." It's not much different than what Yves Veggie Cuisine is doing at home--flavoring and shaping vegetable protein to fit the average consumer's idea of food. "People ask me why I make 'fake meat'," says Potvin. "I don't. I'm just using a vehicle that people understand. It's a lot easier to use the same vehicle, just different ingredients, because people know how to use it." Potvin insists he is not a vegetarian preacher who wants people to give up eating meat. "It's not that it isn't OK to eat a good steak once in a while," he says. "But consumers' lifestyles are changing and our success has been based on introducing quality products that meet the consumers' changing needs. So if there's a healthy fast food on the market and it does the job, why not? The fact that it's made from a vegetable source is only incidental." Getting customers to taste how good it is Retailers now understand what Yves Veggie Cuisine sells," says Yves Potvin. "We don't have to convince them anymore." There is still some convincing to do with consumers, especially men who are more likely to view alternative to meat products with skepticism. Yet, the majority of customers are not vegetarians. They're typically active, young and educated or older and health-conscious. It's mostly women who buy the products and serve them to their families, sometimes without telling them it doesn't contain meat, says Potvin. "If the food is prepared properly, most people say, 'Hey, this tastes good.'" With consumer education such a big part of Yves Veggie Cuisine's mandate, it's important to get consumers to taste the product so they can tell for themselves how good it tastes. "That's why demo-ing is such an important part of our marketing," says Potvin. The company also offers lots of retail programs to help entice consumers--discounts that feature products, couponing and recipe booklets. The refrigerated products should be merchandised in the produce department where, Potvin says, customers are most likely to look for fresh alternatives to meat. Market studies show that when Yves Veggie Cuisine is displayed in the produce section, sales have five times the volume of any other location in the store. AN AWARD--WINNING COMPANY Although Yves Veggie Cuisine was founded by Yves Potvin in 1985, he says the company is "not just me! You build a company with people not by yourself." And he's very proud of how the company has operated for the past 12 years and emphasizes that teamwork is the cornerstone of its success. "We're an innovative company that treats its people well," he says. The 100 non-unionized employees, who together speak 17 languages, are kept informed of company activities with an internal employee newsletter. An employee council represents workers in the plant and administration who work together to fix any problems that come up. The company also has a profit sharing plan and offers employees training and seminars. I believe in quality of life, inside and outside the plant," says Potvin. "If someone works eight hours a day, the working area should be a place where the person can expand themselves and grow as an individual." He is a strong believer in promoting from within whenever possible. Potvin cites the example of Omar Flaminco, a political refugee from San Salvador who joined the company as custodian nine years ago and is now the Production Manager. Although there are many new faces at Yves Veggie Cuisine due to rapid growth, there are still many opportunities for employees to grow with the company. "My employees are my friends, they're the foundation of our success," says Potvin. "When I look to the future, I believe our company is very well positioned to build on that success." The profusion of awards highlights the company's success: 1996 Canadian Grand Prix New Product Award in reggie Lifestyle category for Burger Burgers. 1996 Canada's 40 Under 40 by The Financial Post and Caldwell Partners recognizing Yves Potvin as one of Canada's top 40 entrepreneurs under the age of 40. 1996 New Year Achievement Award, "Million-Dollar Achievers," Business in Vancouver Magazine, in recognition of achieving more than $10 million in annual sales. 1995 Bronze award for Best New Product, Alive Magazine, Canadian Health Food Association Conference. 1994 SIAL D'Or Best New Product in the Deli category for Veggie Pepperoni. 1994 Canadian Grand Prix New Product Award for Veggie Pepperoni. 1994 Gordon Royal Maybee Award by the Canadian Institute of Food Science and Technology for outstanding applied development of a Canadian company in food processing and technology. 1994 B.C. Trade Export Award in recognition of export sales rising by 90% from 1992 to 1993. 1993 Manning Foundation Award for Innovation in recognition of excellence in Canadian innovation. 1992 Double award winner in Small Business and Entrepreneurship, Canada Awards for Business Excellence 1992 New Year Achievement Award, "40 Under 40", Business in Vancouver Magazine, for Yves Potvin, in recognition of the outstanding achievements of individuals under the age of 40.