This 85-year-old dairy warehousing and distribution provider has grown beyond a majority of its competitors with its range of offerings
Written by Sarah Wolfe & Produced by Brett Fairbanks
They say the neighborhood milkman is a dying breed – a remnant of 1950s America when glass bottles were left on stoops. Marcus Dairy is among the few, however, that carry on this tradition. The Danbury, CT, company has been delivering fresh dairy products to customers’ doors for nearly a century and today has three home delivery routes.
Make no mistake – this warehousing and distribution provider is not stuck in the past. Since Harry Marcus established the business in 1923 and it passed down to his son and grandson, Marcus Dairy has gone from a small dairy farm to a predominant regional distributor, delivering to customers one to six days a week depending on requests.
“Today we have roughly 300 stock keeping units and go beyond our competitors with our customer service,” says Bill Fitchett, General Manager. “Aside from contracting with local farmers for dairy products, we’re now a full Tropicana distributor and provide Gatorade and other juices and drinks to customers as well.”
The more than 2,000 customers fall into varied sectors including schools, institutions, hospitals and independent supermarkets. Marcus Dairy’s easy access to Interstates 84, 684, 90 and 95 allows it to run 30 of its own trucks each day – delivering as far as Springfield, MA; throughout its home state of Connecticut; into Pennsylvania, Long Island and New York City’s boroughs (minus Manhattan), as well as Westchester, Putnam, Dutchess, Ulster, Orange, Rockland, and Sullivan counties.
Despite its healthy $30 million annual revenue, Marcus Dairy closed its processing and packaging plant five years ago and now has one 12,000-square foot warehouse. Like others in the industry, it felt some of the economic downturn in 2009.
“We’re recession resistant, but certainly not recession-proof and we had a slide in business,” Fitchett says. “Our volume in the restaurant sector dropped for a bit, while our customers in schools and institutions remained steady. We have enough range that if one market is down, the others balance it out.”
DEDICATED MANAGEMENT
In a changing industry, Marcus Dairy remains in good hands. Fitchett joined the company in 1994 following previous stops at Dairlylea Cooperative Inc. and HP Hood. He experienced the industry early on when his parents owned a dairy processing facility.
Sean Marcus, Warehouse Operations Manager, is fourth generation to the family business and officially started in 1992 upon graduation from the University of Colorado. Jeff Marcus, Sean’s uncle, joined Marcus Dairy with his older brother, Michael (Sean’s father), who ran the company for twenty-five years. Jeff is a 25-year veteran with the company and his father, Jack Marcus, managed the business from 1945-65.
This dedicated management team has seen several recent trends emerge.
“School systems are independently shifting to food service companies so now one distributor will have 10 different school districts or more – taking customers away from others,” says Sean. “The dairy farmers have also been consolidating into larger farms, reducing the number of independent operations.”
Smaller product distributors are also thinning out, particularly union companies that have been replaced by non-union corporations, he adds. In addition, milk’s purchasing numbers have declined slightly as people shift away from traditional milk offerings to non-dairy alternatives with an emphasis on single serve “grab and go” containers.
HIGHER SECURITY
Safety regulations have also changed to target more health and security-related issues in relation to food. Record-keeping requirements are more stringent than ever.
“These regulations encompass the bioterrorism threat we face today,” Fitchett explains, adding that Marcus Dairy’s 70 employees are thoroughly trained. “It’s something we keep up with on a daily and monthly basis. Our customers have become much more conscious of these issues as well. We have several other third party audits beyond the basic requirements that make sure we’re delivering safe, quality products to
our consumers.”
Having small employee numbers makes training easier and allows more active involvement in decision-making for the company’s future success. Individuals are recognized for going above and beyond in their jobs and receive tuition reimbursement for industry-related education.
EFFICIENCY & THE FUTURE
Marcus Dairy has upgraded its technology so its staff can process orders on handheld computer devices and download them daily with delivery route information. Drivers use GPS to determine the best sequence for making deliveries. “We’re soon installing a warehouse picking and loading software system for the handhelds,” says Sean.
Additionally, Marcus Dairy’s trucks automatically shut down after idling for three to five minutes to eliminate fuel waste and emissions. It plans to continue the green theme with its soon-to-be constructed LEED-certified facility, using more efficient compressors for refrigerators and lower electricity usage through timers.
Aside from settling into its new location a year from now, Marcus Dairy is aiming for continued growth.
“Five years from now, I’d like to see the cumulative effect of all those environmental advantages – to have lower operating costs that allow us to be more dynamic and have better customer service,” Sean says. “We’d also like to create even more diversity in our product range to satisfy our current customers and attract new ones.”
FACTS at a Glance:
Company Name: Marcus Dairy
General Manager: Bill Fitchett
Operations: Dairy and drink warehousing/distribution
Established: 1923
Employees: 70
Revenue: $30 million
www.marcusdairy.com
View Digital Corporate Profile of MarcusDairy in Food and Drink Digital February 2010