Local firms aim for commissaries

By Sean Hao
Advertiser Staff Writer

Patrick Nixon, of the Defense Commissary Agency, runs a taste-test of Hawaii Coffee Co. Inc. products. The company landed a deal to sell its Lion and Royal Kona brands in Mainland and Asia commissaries. Richard Ambo • The Honolulu Advertiser

So 46 local companies vied eagerly over the weekend for the chance to place products in as many as 270 U.S. military commissaries worldwide. If they are successful in selling to the military stores, the Hawai'i businesses could see a welcome flow of new sales and national and international exposure in the well trafficked commissaries.

"That's valuable real estate," said Jim Wayman, president and chief executive for Hawaii Coffee Co., of the military store space. "It's certainly valuable to us."

Hawai'i's five military commissaries now carry about 4,500 items that are either made locally or distributed by companies with local ties. These products generated about $72 million in sales last year, up from about $40 million in 1998, according to the Defense Commissary Agency.

In an effort to boost its local offerings, the agency recently invited local companies to show their wares to government buyers for possible worldwide distribution.

As a result, Hawaii Coffee, which sells coffee under the Lion and Royal Kona brands, said it now has a contract to sell its products in military grocery stores on the Mainland and Far East in addition to Hawai'i, which could boost its commissary business sales from $1 million a year to $5 million annually.

Hawaii Coffee, Hawaiian Host, Hawaiian Sun and others were among those displaying food products for consideration by the Defense Commissary Agency at the Turtle Bay Resort on Saturday. It was the sixth time the agency invited local businesses to submit items for consideration, and the attendance of 46 companies was the largest ever, said Rick Page, director of the Western Pacific Region Commissaries.

Because of its ethnic diversity, Hawai'i has a greater variety of food products to offer the military than most other areas, he said.

"You name it, they've got it here," Page said.

Page and about a dozen other government officials sampled about 650 different items and chose 120 for inclusion at local commissaries. If demand warrants it and companies can handle the additional work, sales of local products can be expanded to overseas commissaries.

"Now comes the fun part — getting the product through the door," Page said.

Dennis Teranishi, president and CEO of Hawaiian Host Inc., said the commissaries offer a prime opportunity to get military families familiar with the company's lines of chocolate and macadamia nut candies and snacks.

"It's a very, very important part of our business because so many military personnel come through Hawai'i, which is the perfect place to become familiar with our products," he said.

Sales to the federal government offer other benefits.

"From our perspective, you're dealing with a stable entity that's always going to pay its bills," said Hawaii Coffee's Wayman.

Businesses interested in more information about selling their products in military commissaries can call 448-4669 or 843-4242.

Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.

Correction: Hawaii Coffee Co. received a contract to sell to military commissaries before a taste test by Patrick Nixon of the Defense Commissary Agency. The photo caption with a previous version of this story had other information.