Bell & Evans Company Profile

Background

Bell & Evans, established in 1894, is America's oldest branded chicken company. As a fifth-generation family-owned business, it has consistently prioritized producing premium, all-natural poultry products. The company's mission centers on delivering high-quality, antibiotic-free, and organic chicken, adhering to the highest animal welfare standards. Bell & Evans has been a pioneer in the poultry industry, introducing practices such as raising chickens without antibiotics and implementing 100% air-chilled processing methods. Its commitment to sustainability, innovation, and humane animal treatment has solidified its reputation as a leader in the premium poultry market.

Key Strategic Focus

Bell & Evans' strategic focus encompasses several core objectives:

Expansion of Organic Production: With organic chicken accounting for approximately 40% of its business, the company aims to increase this to 50% to meet rising consumer demand.

Technological Innovation: The company has invested in state-of-the-art facilities, including a $360 million organic-certified chicken harvesting plant in Fredericksburg, Pennsylvania, which began operations in December 2021.

Sustainability and Animal Welfare: Bell & Evans emphasizes sustainable practices, such as utilizing 100% air-chill processing to conserve water and implementing humane animal handling techniques like slow induction anesthesia.

Market Expansion: The company supplies its products to premium health-food markets, upscale retailers, and top-tier restaurants nationwide, including Whole Foods Market, Wegmans Food Markets, and Publix.

Financials and Funding

Bell & Evans has demonstrated robust financial growth, with sales reaching approximately $400 million in recent years. To support its expansion initiatives, the company secured a $300 million credit facility from Rabobank, marking the first green loan in the U.S. poultry industry. This funding facilitated the construction of the new harvesting facility and other sustainability-focused projects.

Pipeline Development

The company's recent developments include:

New Harvesting Facility: The 411,500-square-foot plant in Fredericksburg, Pennsylvania, which began operations in December 2021, has doubled the company's production capacity.

Organic Grain Initiative: Bell & Evans launched a five-year, $500 million investment to transition 50,000 acres of U.S. corn and soybeans to certified organic production, ensuring a steady supply of organic feed for its chickens.

Technological Platform and Innovation

Bell & Evans distinguishes itself through several proprietary technologies and innovative practices:

100% Air-Chill Processing: This method conserves water and enhances product quality by avoiding water absorption during cooling.

Slow Induction Anesthesia (SIA): A humane method that gently renders chickens unconscious before processing, reducing stress and improving meat quality.

Automated Processing Systems: The new facility features advanced automation, including fully automated live and empty loading and unloading systems, reducing human handling and enhancing efficiency.

Leadership Team

Bell & Evans is led by a dedicated executive team:

Scott Sechler: Owner and President, with over 50 years in the poultry industry, driving the company's commitment to quality and innovation.

Scott Sechler Jr.: Executive Vice President, overseeing operations and contributing to strategic initiatives.

Margo Sechler: Executive Vice President, focusing on live production, human resources, and marketing.

Competitor Profile

Market Insights and Dynamics

The organic poultry market has experienced significant growth, with U.S. organic chicken sales increasing by 13.1% over a three-year average. Bell & Evans outpaced this trend, achieving a 69.9% growth in organic sales during the same period.

Competitor Analysis

Key competitors in the premium and organic poultry market include:

Perdue Farms: Offers a range of organic and antibiotic-free chicken products, emphasizing animal welfare and sustainability.

Tyson Foods: Provides organic and natural chicken lines, leveraging its extensive distribution network.

Applegate Farms: Specializes in organic and natural meats, focusing on humanely raised poultry.

Bell & Evans differentiates itself through its long-standing commitment to organic practices, innovative processing methods, and stringent animal welfare standards.

Strategic Collaborations and Partnerships

To bolster its market position and innovation capacity, Bell & Evans has engaged in significant collaborations:

Cargill Partnership: A long-term sourcing agreement to secure organic grain supply, supporting the company's organic growth initiatives.

Rodale Institute Collaboration: Providing subsidized organic crop consulting services to farmers transitioning to organic practices, ensuring a reliable supply chain.

Operational Insights

Bell & Evans' strategic considerations include:

Facility Design: The linear layout of the new plant minimizes processing turns, enhancing product quality and operational efficiency.

Employee Welfare: Investments in ergonomic workstations, climate-controlled environments, and on-site amenities contribute to high employee satisfaction and retention.

Sustainability Practices: Utilizing recycled heat and water conservation measures positions the company as an industry leader in environmental responsibility.

Strategic Opportunities and Future Directions

Looking ahead, Bell & Evans plans to:

Expand Production Capacity: Plans are in place to build a second organic-certified harvesting facility on the same campus, further increasing production capabilities.

Enhance Product Offerings: Continued development of value-added products, such as gluten-free chicken tenders, to meet diverse consumer preferences.

Strengthen Supply Chain: Ongoing investments in organic grain production and partnerships to ensure a consistent and sustainable supply of organic feed.