FireTalkers: Interview with Steve Hoffmann of Old Vienna LLC
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If you live in the St. Louis area, you should unmistakably know about Old Vienna LLC and its flagship product, Red Hot Riplets potato chips. The love and devotion for these snack products are legendary. Fiery foods fans and junk food lovers across the Gateway City come to these when they're craving a tongue-burning crunch. Rapper Murphy Lee of Nelly's St. Lunatics wrote a song about Red Hot Riplets. Readers of St. Louis' alternative paper Riverfront Times have voted these spiced beauties "Best Potato Chips" in town. There was even a Facebook group devoted to distributing the ridge-cut chips to campuses nationwide (the company's official distribution area had largely only been the greater St. Louis metro area). Now, everyone in the United States has a shot at sampling these sweet n' pungent, BBQ-tinged snacks from heaven by purchasing then at the new e-commerce capable Old Vienna website.
It all could have disappeared years ago. According to the St. Louis Business Journal, the snack company, known since the 1930s as the Old Vienna Snack Food Co., was in financial dire straits by the mid-1990s. A then-division sales manager named Steve Hoffmann got together with another investor, the Chicago-based Evans Food Products Co., in 1996 and purchased the snack food company from their previous owners in '96. Now Old Vienna LLC's President and Chief Operating Officer, Hoffmann has helped turn the company around with a keen business sense and has helped them double their revenue since the acquisition.
Such as the nature of business, there have been a few bumps in the road in this newer era. The biggest such setback was the sudden folding of Old Vienna's previous chip manufacturer, Affinity Production Co., but luckily for Steve Hoffmann and crew a new snack food provider was able to fill in the void and things have returned to normal.
I've recently asked Steve a few questions about the company and their products, and he's graciously answered them below.
Scott: What are all of the products Old Vienna produces?
Steve: We have an extension line of snacks, potato chips, corn chips, popcorn, extruded corn products, about 50 line items all together.
Scott: How much product do you make in a week/month?
Steve: Our weekly volume is around $125,000.
Scott: Old Vienna Snack Food Company dates back to the 1930s. Have there been multiple recipes for your most popular product, the Red Hot Riplets Chips?
Steve: The only change to the recipe was back in 2009 when we removed all the trans fats for our products. Also, at this time we reduced the riplet cut in the potato to enhance manufacturing efficiencies.
Scott: What kind of challenges have you had since purchasing the Old Vienna company with Evans Food Products back in 1996?
Steve: I would say the biggest challenge has been competing with the national snack food providers. They offer retailers marketing money ongoing to reduce our space and exposure in all accounts. Even if our sales justify more space in accounts, we are limited by their ongoing programs.
Scott: Was it true that the company that manufactured the chips, Affinity Production Co. in Lincoln, went under without warning in 2008? What happened exactly?
Steve: I was told they lost the potato chip contract with their grower and could not justify continuing operating. I received this call the day they shut down operations. No notice was given.
We had two weeks of inventory on hand, so it was a difficult situation to over come. Lucky for us we secured a new quality manufacturer who help us get back in business without too many shortfalls. We did have a period where we were not able to manufacturer our complete line.
Scott: Who currently makes and packages your chips currently?
Steve: Our new manufacturer is C.J.Vitner's out of Chicago, IL. They have been a step up from our last supplier Affinity Production company.
Scott: Do you see a loyal, hardcore following for the Red Hot Riplets?
Steve: Red Hot Riplets are really the only reason we can compete with the big boys. Our loyal hardcore consumers are what makes us successful.
Scott: Whatever happened to the actual Red Hot Riplets Hot Sauce? I heard about it a year or two ago and haven't been able to get my hands on a bottle of some.
Steve: It's been discontinued. Limited sales in our Schnucks Market stores resulted in our discounting the item.
Scott: How many e-mails from outside of your distribution area does the company get requesting Red Hot Riplets?
Steve: We have not been keeping track until now. With our new site up an running we are getting about 300 to 500 hits per week.
Scott: I've recently seen the Crunchy Nuggets. Are any other new products on the horizon?
Steve: We are considering a bottled Red Hot Riplet seasoning mix.
Scott: What are the long-term goals for Old Vienna? Is nationwide distribution on the radar?
Steve: We are always looking for long term profitable growth.
Scott: What about online sales?
Steve: As you know the new website is up and running now! It has been revamped and has e-commerce capabilities.
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Photo of Steve Hoffmann courtesy of Brian Cassidy
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2010-08-27 02:16:38
~mk
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