Frank Ross, left and Chuck Ross, the owner and chef of F.A. Ninos in Petaluma, place labels on bottles their custom made hot sauce, Tuesday May 20, 2014, (Kent Porter / Press Democrat) 2014

A helping hand for Sonoma County food producers

The makers of F.A. Nino's gourmet hot sauces and dry rubs admit they didn't know much about the grocery business in May 2011 when a young man walked up to their sales booth at the Cotati farmers market.

"We had no idea how to get into stores," recalled Frank Ross, one of the Petaluma company's four partners and the uncle of chef/product creator Chuck Ross.

But the young man liked what he tasted and said he would tell his bosses at Oliver's Market. And Cotati-based Oliver's became the first of more than 40 Bay Area stores that now carry F.A. Nino's products.

Sonoma County has long had local food makers, but much is afoot these days to help such entrepreneurs launch new products. Local and regional efforts include new types of financing, "foodmaker forums," a new state "cottage food" law and a planned fall conference aimed at helping the business community understand the opportunities that food makers bring to the county.

"I think that Sonoma County is hitting its second wave of being sort of a hub of small food manufacturing," said Tom Scott, vice president and general manager at Oliver's Market.

The first wave came three decades ago, with such natural food producers as Amy's Kitchen, Alvarado Street Bakery, Traditional Medicinals and Barbara's Bakery.

Now, members of a new generation of local food makers are producing such artisanal and specialty items as kombucha tea, organic chicken fingers, kimchi, heirloom tomato sauce and gomasio.

Small food makers say that starting and growing a business takes considerable work — much more than they ever imagined. Even so, they credit the county's grocers for their willingness to stock local products and help introduce the items to customers.

"They legitimately want to help and support our brand," said Serafina Palandech, a partner in Sebastopol's Hip Chick Farms. "They want to support the little guy."

Palandech and partner/chef Jen Johnson began selling their gourmet frozen chicken fingers, wings and meatballs in early 2013 after raising $25,000 from friends and supporters in a Kickstarter campaign. Today, their products are sold in more than 300 stores, and they soon plan to release both organic and gluten-free chicken fingers.

"We're in like the hotbed for natural foods in the whole world," said Palandech, who with Johnson will present their story next month in San Francisco at a "foodmakers forum" sponsored by Whole Foods Market.

Grocers say they keep watch for local products because consumers love them.

Scott, who oversees three stores in Cotati and Santa Rosa, said last year Oliver's worked with more than 300county farmers, wineries and foodmakers. The local products constituted 9 percent of his stores' individual items but 27 percent of sales.

"You can tell how much our customers are demanding these products and are enjoying these products that come from this part of the world," he said.

Similarly, Whole Foods co-CEO Walter Robb said in a presentation last fall in Santa Rosa that the county is "tailor-made" to benefit from the unprecedented demand for healthy, locally produced foods.

"We're on the doorstep of a food revolution like I've never seen," Robb said in November at the first North Coast Food and Agriculture Industry Conference.

Whole Foods seeks to have about 25 percent of its items come from local producers, the company reports. In Northern California, about 60 percent of the produce sold comes from about 120 of the region's growers.

Whole Foods has begun new initiatives to find the region's small food makers and help them build their businesses.

About eight years ago, the national company began making up to $10 million a year available in loans to small food producers. And this July, the company's 40 Northern California stores will provide their first "foodmaker grants," where customers will go online to choose 40 small producers — one for each store. Each winner will receive 5 percent of their store's one-day sales — a grant estimated between $3,000 and $6,000.

As well, Whole Foods in 2007 appointed a "forager" for the Northern California region to assist the buyers at each store who have long worked with small food makers.

Harvindar Singh acknowledged that some people hear about his job and think he must be "an exotic wild mushroom hunter." But being a forager actually involves finding local products and "developing relationships with great, really cool, local food entrepreneurs."

If Whole Foods is going to stock a local product, Singh said, "It's just gotta taste amazing."

But other factors come into the decision of whether to place an item on the shelf, including packaging, price and the details of its production. For example, the company has a list of more than 75 "unacceptable ingredients," including artificial colors, high-fructose corn syrup, nitrates, partially hydrogenated oil and monosodium glutamate.

And while an entrepreneur may be able to dramatically reinvent a common product, most food makers will have a hard time getting Whole Foods to carry a product in a segment that is already saturated.

An example?

"It seems like the entire world is making granola," Singh said.

Along with Whole Foods loans, local food makers are getting help with financing from the 2-year-old North Bay chapter of Slow Money.

The group already has helped a few local producers find investors, said Louis Brouillet, one of the chapter's leaders. He sees momentum building here for the production of more healthy, local foods.

"I think this is slowly but surely gaining steam," Brouillet said.

Even the state Legislature has sought to help small food makers by passing the California Homemade Food Act.

The law took effect last year and allows small business operators to sell relatively low-risk foods that can be made at home. It provides entrepreneurs a new legal way to sell food products without renting expensive commercial kitchens.

The Sonoma County Economic Development Board estimates the county has about 250small food makers, including 30 craft brewers, Executive Director Ben Stone said. This fall, the board plans to hold its first conference on small food makers, what Stone called "a coming out party."

"We think it's going to be a growing movement, and so we want Sonoma County companies to be competitive," he said.

Robert Eyler, director of Sonoma State University's Center for Regional Economic Analysis, acknowledged the enthusiasm but added a note of caution. Just as social media companies want to be the next Google or Facebook, Eyler said, many local food makers want to copy the national success of natural food maker Amy's Kitchen or craft beer maker Lagunitas Brewing, both of Petaluma.

"Everybody's going to aspire to be them, but very few are going to be them," Eyler said.

Food entrepreneurs are looking to find niches and exploit them, he said. But competition typically follows and "those opportunities are going to close up very quickly."

The first step for food entrepreneurs is developing and packaging a great-tasting product. For many, the next step involves cold calling store buyers in the hopes of getting that item onto store shelves.

But the store buyers and employees also keep an eye out for new foods when they're out at farmers markets and other community events.

"That's always fun to find new stuff, especially if it's local," said Melissa Minton, general manager for the nonprofit Community Market outlets in Santa Rosa and Sebastopol.

For example, just as with the Oliver's employee, Minton's buyers came across F.A. Nino's barbecue and hot sauces at a farmers market and recommended the store carry the products.

At G&G Supermarkets in Petaluma and Santa Rosa, the local products go beyond those from businesses to include the Council on Aging's Stag?gourmet food products and Santa Rosa Junior College's Shone Farms estate wines.

For both the for-profit and nonprofit producers, CEO Teejay Lowe said the stores' buyers give advice on how to improve both products and marketing in ways that can benefit the food maker far beyond the walls of his stores.

The reason, Lowe said, is, "your neighbors' success is your success." Helping local companies grow "benefits all of us in the short and long run."

The grocers said they even offer new ideas on how the entrepreneurs can build their businesses.

Justin Tresize, the produce manager at Pacific Market in Santa Rosa, has encouraged some of the dozen local growers he works with to plant organic strawberries.

"That's a big, big crop money-wise and something you can't keep on the shelf," he said.

The markets also find new ways to introduce the local products to consumers. When appropriate, they may place items in the store salad bar or sell them at the deli. But the most common approach is for the maker to set up a food demonstration table at the store.

The food producers agree that something special can happen when they connect with customers and let them taste their products.

In today's food system, "it's very rare you're going to meet the person making your food," said Holly Carter, owner of Get Along Organics in Forestville.

Carter makes her own version of gomasio, a dried condiment of ground sesame seed and sea salt. For her product, she adds in other ingredients, including sunflower and pumpkin seeds, dried shiitake mushrooms, kelp and sea lettuce.

A chef for Bay Area cafes, Carter has gotten her products in about 10 Bay Area stores. At first, she tried to get the items into every possible store. But she learned that she needs to find stores that are more likely to cater to her niche of customers.

"A lot of people don't even know what it is I'm selling," she said.

Even food producers with years in business are trying new ideas.

Healdsburg's Soda Rock Farms founders Dan and Lee Magnuson started selling heirloom tomatoes 15 years ago to G&G Supermarkets in Santa Rosa and Petaluma and to Pacific Market stores in Santa Rosa and Sebastopol. Each day during harvest, the farm picks 1,000 pounds of tomatoes — Cherokee purple, green zebra, pink Brandywine and a dozen other heirloom varieties.

Soda Rock received its organic certification more than a year ago after older daughter Katie joined the operation. Now, with younger daughter Rachel coming on board, the Magnusons are making an heirloom tomato sauce and looking to expand into spring and winter vegetables.

Katie Magnuson said while growing up, she never thought she'd join the family business. But it suits her well.

"I fell in love with it," she said.

(You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com.)

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