Poore Brothers Essay Research Paper Poore BrothersBrothers

Poore Brothers Essay, Research Paper

Poore Brothers

Brothers Don and Jay Poore had worked on potato chip packaging equipment and thought they would strike out on their own. While servicing packaging machines in Pennsylvania, Don and Jay had met a gentleman who knew a lot about making potato chips in small kettles One Batch at a Time and he helped them get started. By cutting their chips a little thicker and cooking them in kettles, their product had a serious crunch that no other chip had. In 1983, they started a small chip manufacturing operation outside of Houston with a brand called Groff’s of Texas. They sold their Texas business after a few years and decided to move to the Valley of the Sun. In 1986 the brothers founded Poore Brothers in Goodyear, Arizona. They started with one kettle, one delivery truck, and one store that sold their chips, Mayfair, across from the Wigwam. They didn’t have a marketing budget, so they relied on sampling and word of mouth advertisement. It wasn t long before the large grocery stores in the valley began to authorize sale of their products. It was also right around this time they had a couple of bold flavors that were real winners, Salt & Vinegar and Jalape o. Soon, all of Arizona could buy their products. In order to serve all their Arizona customers they started a distribution company. Today Poore Brothers Distributing is the premier snack food distributor in the State of Arizona.

It was only a matter of time until the products found their way across the Arizona border into California and other states. Eventually Don and Jay licensed the brand and manufacturing process to companies in Minnesota and Tennessee. In the early 1990’s, the snack food business began to change with the addition of low fat and baked snack products. So they changed too. They began cooking their product in Sunflower Oil. This oil is low in saturated fat and tastes just as good as their original product that was produced with peanut oil.

In the mid 1990s, the company was getting larger and harder to manage in the hands-on way Don and Jay liked to manage it, so in 1994, they decided to sell Poore Brothers. Since then the owners have taken the company public and opened a new state of the art manufacturing facility in Goodyear, Arizona. Jay still works at the Goodyear plant and takes great pride in making sure the manufacturing equipment runs smooth and that the new owners make the best products possible.

Poore Brothers has since stopped the manufacture of its product in Minnesota and Tennessee. The facility in Goodyear, Arizona, is currently the only Poore Brothers facility in the world. They do all manufacturing and shipping from there. Poore Brothers currently distributes to California, Colorado, Hawaii, Ohio, Illinois, and New Mexico, with the goal of eventually reaching every state. The company that started out with about 40 employees now has 80.

Product:

Mission-Win the hearts of their consumers, the trust of retailers and distributors, and the confidence of investors.

Poore Brothers products have four things in common:

Hand Crafted, Cooked One Batch at a Time-All their products are made in kettles. Potatoes are sliced only minutes before they are dropped into oil. The potatoes are then stirred and the temperature is varied to achieve the unique product texture. The product is done only when the temperature of the oil reaches a certain point. Kettle cooking is more costly and time consuming, but the result is worth the wait.

Bold Flavors-They are not afraid to create intense and unique flavors. They currently produce ten bold flavors to choose from.

Serious Crunch-Kettle cooking creates the crunch. Regular chips can’t match Poore Brothers crunch. Poore Brothers products are the crunchiest, compared to any national brands.

Low in Saturated Fat-They use the most expensive and highest quality oil to manufacture their product. Their chips have only one gram of saturated fat. They are able to achieve this small amount of fat by using a variety of sunflower oil that is low in saturated fat and high in monounsaturates (the good stuff).

Promotion:

Invest in brand equity building marketing programs-They support their brand with radio advertising, outdoor billboards, FSI couponing and are currently executing a consumer promotion with the Arizona Diamondbacks. Given key learnings from each of these vehicles they now believe they have a “recipe” for future brand development.

Headlines:

Phoenix, AZ, March 17, 1999 – Poore Brothers, Inc. (Nasdaq: POOR) announced today that the Company is pleased to continue its sponsorship of the Arizona Diamondbacks during the 1999 baseball season. The sponsorship includes Poore Brothers launching a commemorative package of 6 oz. Original Potato Chips, honoring the Arizona Diamondbacks.

Sponsor of the 1999 Phoenix Open

New Products-The Poore Brothers Brand has been an innovator of unique and different flavors. Constant attention to introducing new flavors has fueled growth and kept their brand fresh. In June of 1998 they introduced a line of dips and tortilla chips. In the future, the brand will be leveraged in other snack categories where they believe their product has something unique and different to add.

Headlines:

Goodyear, AZ, May 14, 1998 – Poore Brothers

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