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The Honolulu Advertiser
Posted on: Tuesday, June 27, 2006

Local vendors win military deals

By Dan Nakaso
Advertiser Staff Writer

Dale Gouvea, operations manager of Wong's Meat Market, displays his company's goods at a trade show for vendors seeking space in the military market. Wong's and eight other Hawai'i food suppliers were selected to sell their products in O'ahu's five commissaries.

RICHARD AMBO | The Honolulu Advertiser

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The Department of Defense has selected a record nine new Hawai'i food companies to provide, within weeks, more than 140 new products — also a record — for O'ahu's five military commissaries.

The new, open-ended contracts were offered over the weekend after the biggest trade show of its kind at the Ihilani Resort in which 61 vendors tried to get a piece — or in some cases a bigger share — of the military market.

"We'll help them get through it," said Richard Page, director of the Defense Department's commissary agency for the Western region. "This process is a journey so we're going to help them."

But whatever happens to the nine companies next lies largely with how well they execute their business plans, Page said.

"We're pretty demanding and now they have to meet the criteria that they've accepted," Page said. "They've got to distribute and market and prove it on the shelf, because that's where the ultimate decision will be made."

The new products range from Hamakua mushrooms to Big Island cookies to Hawaiian lollipops and were selected because of the quality of the items and their companies' business, distribution and marketing plans.

Julie Nelsioni, operational manager for Fritz's European Bakery on Dillingham Boulevard, expects her business to more than triple when it begins supplying its eight kinds of pastries and line of 29 breads to the commissaries and additional military outlets starting next week.

"We'll be in all of the commissaries, all the shopettes, all the mini-marts, all the stop and go's," Nelsioni said. "We're excited."

Fritz's European Bakery last month began supplying deli bread and German rye bread to the bakery at Fort Shafter. Even before the company got the new contracts last weekend, Fritz's began setting up a separate military division to ensure that its civilian clients such as Star Markets, Sheraton hotels and others don't see any difference in operations, Nelsioni said.

"We've been ready," Nelsioni said. "But we don't want to take away from our existing companies because they mean a lot to us."

Cheryl To sells her Hawaiian ginger syrup and Thai ginger syrup in places like the R. Field shop inside the Beretania Street Foodland and in KTA Super Stores on the Big Island. She brought her syrups to the Ihilani Resort on Friday but left dejected after speaking to Marine, Air Force and Navy officials representing various military exchanges.

"Each one told me they really liked the products but because it was so new and unique — each used the word unique — they felt it wasn't going to move in their exchange stores," said To, the owner of PacifiKool. "They said I wouldn't be able to do enough volume and I'd have to be out there all the time demo-ing the product. I was pretty darn depressed."

To uses her ginger syrups as pancake syrup, over ice cream, in teriyaki sauces and in martinis. At her brother's urging, To showed up again on Saturday for her final presentation to military officials representing the much larger commissaries — but with her homemade ginger ale recipe made from ginger syrup.

"Once they tasted the ginger ale, they started to understand," To said.

Now her syrups will be carried in the five commissaries and To isn't sure what the added exposure will mean for her business.

But Calvin Wong, who owns Wong's Meat Market on Sand Island Parkway, has some idea what changes will coincide with his new military contracts.

Revenue at Wong's shop is up 15 percent in the two years that his company has been supplying the commissaries with ground beef.

Now Wong's will offer the commissaries three new products: frozen marinated cuts of huli huli chicken, teriyaki beef or boneless short rib kalbi in 4- and 5-pound packages each containing two portions of about 2 1/2 pounds each.

"We'll have to hire a few more people, that's for sure," Wong said. "From all indications it could really take off."

And after last week's food fair, Page already has hopes for an even bigger event next year.

"We started with 23 businesses, grew to 61 this year and had to turn away 10 because we outgrew our facility," Page said. "Next year, we want to find a place where we can bring in 100 companies."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com.