2009 Business Growth Awards: FirstMerit Legacy Award
It’s more than just lip service when it comes from Robert J. Shearer. The CEO of Shearer’s Foods Inc. means it when he says, “You cannot be afraid to hire people smarter than you. A great leader develops future leaders by giving them an opportunity to succeed.”
Shearer especially likes to push those future leaders to think more like an entrepreneur at the food manufacturer and distributor, which increased sales by 146 percent in the last five years. In August 2008, he challenged all of his employees to come up with cost-savings ideas so that he would be able to give them a raise for 2009. The employees rose to the occasion and offered 1,000 suggestions. A committee formed to review the submissions and combined them to 150 suggestions, with 80 to 100 identified to move forward. To date, 65 of them have been implemented. That means for a $620,000 investment, the company garnered a savings of $1.4 million, which is just one example of cross-department collaboration that resulted in long-term improvements and raises for everyone.
So, it’s no surprise that, with that level of employee input, workers are ready and willing to go to work each day. The company’s employees have earned 49 percent perfect attendance for the past three years.
Current employees aren’t the only ones exemplifying the dynamic leadership style of Shearer. The atmosphere Shearer guides also attracts new employees.
The company has witnessed an increase in associate staffing levels in the past 10 years and fully expects to keep hiring this year and beyond. The company ended 2008 with 752 associates and is projected to employ 875 people by the end of 2009.
In that batch, there are certainly going to be a few that Shearer can help mentor like he has so many other workers in the past.
Jeff Thewes started at Shearer’s when he was in high school working the night shift as a first fryer. When Thewes wanted to take the plunge and become a Shearer’s distributor, Shearer helped him finance his operation and guided him along the way.
Rob Augustinsky was a route sales associate in the Youngstown branch, and Shearer helped him start his own Shearer’s distribution business in Ashtabula by financing his truck, providing a business plan and training.
When Doug Harrold approached Shearer about becoming a distributor, he was working in a carryout in Findlay, but he is now one of the company’s most successful distributors.
Yet, while employees like Thewes, Augstinsky and Harrold make Shearer’s as strong as it is today, it’s all a reflection on their leader. Shearer’s guidance is extremely evident in the company’s commitment to outstanding customer service.
Shearer honed his customer service skills at an early age, working in the family-owned grocery store. When the Shearer family decided to buy a potato chip distribution business in 1974, Shearer sold and delivered products to customers. Shearer and his family earned the loyalty of their snack-food customers just like they earned the loyalty of their grocery store customers — through hard work, honesty, integrity and outstanding service.
Shearer’s version of customer service is still taking the company to new heights today and is a unique approach to the market.
Many snack-food companies either focus on their own branded products or make private label products for others. Most also choose between doing their own store-level distribution (DSD) or having other stores distribute their products. Shearer’s approaches the market with a mix of capabilities, therefore the company can provide a full-service offering to retailers (private label and DSD service), yet also provide large scale, co-packing services to major snack-food companies.
This helps Shearer’s stay in tune with the market as well as determine which opportunities to exploit. At times, Shearer’s businesses have to compete with each other for resources, which is actually a positive result that helps the company prioritize investments and use of capital.
But when push comes to shove, the company has to put the needs of its private label customers ahead of the Shearer’s brand needs. During the potato shortage in the summer of 2008, the company suspended promotions of Shearer’s brand potato chips in order to fill orders for the private label customers’ promotions.
As a result, Shearer’s paid more for the brand’s ingredients and reduced overall branded sales and total profit dollars. At the same time, Shearer’s customers received their product on time, as well as addressed promotional requirements during that challenging period at retail.
With Shearer’s leadership driving that hardworking and collaborative culture, the organization is sure to not just be snacking on success but enjoying full meals of it for a very long time.
How to reach: Shearer’s Foods Inc., (330) 767-3426 or www.shearers.com