Creating value also means more than operational investments. As economic uncertainty lingers, Fresca is evaluating supply chain procurement solutions.
“We are being much more aggressive than we have ever been on ingredients, sourcing and contracting,” Viar said. “We’re looking at going longer on contracts, trying to secure supply and lock in pricing. To some extent, certainty of price may be more important than price alone because we just don’t know what’s going to happen six months from now, especially with tariffs.”
The company is also consolidating suppliers for specific ingredients as a way to boost its buying power and provide customers with access to the highest quality ingredients at the best price.
“We have amazing relationships with our suppliers, and we want to maximize those,” said Nathan Hirsch, director of product development and lifecycle management. “It’s about getting the best quality product for our partners. If we feel we can get a better almond, for example, or a better minimum order quantity, we’re going to work with our partners to ensure they get the best price and quality and that it works with our system.”
Fresca prides itself on its R&D capabilities, after spending years building the Fresca Food Lab. It began as in-house support offered to existing customers, but it’s evolved into a viable standalone revenue stream led by Hirsch.
“We can compete with the best product development houses,” said Maria Plata, Fresca’s chief growth officer. “We’ve developed a repeatable but customizable process that allows us to take clients through product development quite easily. Our mindset around innovation is speed, and we’re proud of how quickly we can bring a product to market without compromising on human or food safety.”
The lab team collaborates with current and potential customers to bring ideas to fruition. From ideation to manufacturing, it offers the full spectrum of product development services.
“We can ‘pre-op’ the space and turn it into a small production facility,” Hirsch said. “Our manufacturing floor and quality control team are right next door, so we can bring them in, too. It’s a cost-effective way for customers to see if there are any tweaks they want to make before going to market. We also work with third parties to offer consumer testing and surveys.”
Fresca provides product development support as a standalone component and as part of a streamlined manufacturing process.
“Maybe a customer has an idea for an item, but their co-manufacturer doesn’t have product development services,” D’Acquisto explained. “Or maybe that customer needs help with formulation for an item Fresca can’t manufacture, but they need product development support. We can bring benchtop samples to life, create a commercially viable sample, offer a guide for how to scale it, and then hand it off to the customer so their co-man can bring it across the finish line.”
Fresca also offers an accelerator service that allows brands to test a product in the market without making a significant financial investment.
“That does two things,” Plata said. “First, you can be there fast, and if it does well, you have a business case that can help you launch nationally. Second, if it doesn’t work, you went fast, you failed fast, and you didn’t spend a lot of money. The accelerator is just another way we provide innovation to our customers.”
Robotic packaging and more automation ahead
As competition grows in the better-for-you snack space, Fresca Foods is focused on strengthening its competitive edge, attracting new customers and expanding its portfolio, all while supporting current accounts. Later this year, it expects to bring a third manufacturing site in Louisville online, adding another 100,000 square feet of space and opportunities for growth. The facility is the company’s first step in ramping up its newly minted partnership with Cerealto, a European biscuits, cereals and snacking bars co-manufacturer with facilities in Portugal, Spain, the United Kingdom and Mexico.
“In concert and coordination with our customers, automation investments are about to kick off across our entire portfolio,” Viar said. “With our new facility, there’s thousands of square feet available that we’re exploring with our current customers — and internally — for different categories. It also holds potential for additional investments.”
For starters, the new facility will house a highly automated chewy bar line from Cerealto’s United Kingdom plant that includes robotic packaging.
“It will be a game changer,” Plata said. “The systems going into the building will look quite different than what we have in our current facilities. The future of the new building will be high-speed lines.”