Sharon Spielman, Food Engineering (SS): Tell me briefly about Texas Food Solutions and its place in the HPP marketspace. Has TFS always been a toller?
Jasmine Sutherland (JS): Our HPP journey started as a manufacturer of ready meals. We had a company called Perfect Fit Meals and we were looking for a way to keep selling fresh, clean label meals over a larger area. We redeveloped as a HPP product and started using a toll processor. Once our volumes grew, it made sense for us to transition to owning a machine. While looking into that, we determined that we had a unique skill set and capability, so we decided to open a tolling operation as a new venture and Texas Food Solutions was born. TFS covers customers over the Southern US. We run a turnkey Product Development Center and specialize in helping customers get their products to market.
SS: How many HPP machines do you employ at TFS? When and why did TFS decide to purchase its HPP machines?
JS: We currently have two HPP machines (JBTAvure 350l & JBTAvure 25l) and are looking at adding a third this year (JBTAvure 525l). We have space in this operation for two more machines. The first machine was installed in 2015 and the second was installed in 2016.
SS: Can you tell me about the cost analysis that helped when choosing to purchase your own HPP machines.
JS: An HPP machine is a very large investment and tolling made sense for us for quite a while. When we got closer to filling more capacity than our local toller had available for us, it became obvious that we would need to invest in our own equipment. Tolling is great if it’s a process you don’t want to take on or don’t want to allocate capital to. I say this as a manufacturer and as a toll processor.
SS: If you were to make lists of the pros and cons for both using a toller and owning HPP equipment, what would those lists look like?
JS: HPP equipment is much harder to operate than a packaging line and is very capital intensive. The cost of ownership is high and the machine needs to be close to full for the decision to own one to make sense financially. There are, additionally, a lot of infrastructure costs attached. Yes, with owning a machine, your HPP cost per lb/unit is offset, but does the volume dictate that the difference makes sense for the bottom line of your operation?
SS: What features were you looking for your HPP equipment to have? How did TFS choose the equipment they ultimately purchased?
JS: We selected a JBTAvure 525l because of the size, access to spare parts, operating cost, flexibility in being able to modify the machine to run faster (we can add an entire skid if we choose), and transparent communication with the manufacturer when we need support.
SS: Did TFS install HPP exclusively to become a toller? Please tell me about how HPP became a part of TFS and how TFS became such a large HPP toller.
JS: The growth of our existing food business determined the need to invest in a machine ourselves. We have always had great relationships with processors in our area and it turned out others had a need for HPP in the Houston area, so we grew a business from the opportunity. We had wanted to own two HPP machines so we would have redundancy and opening a tolling operation gave us the ability to do so faster.
SS: Can you offer any stats (financial, efficiency-wise, production-value, etc.) for using a toller vs. installing HPP equipment?
JS: Every company and product is different in that determination and they are different in how they operate their HPP machine.
SS: What were the biggest challenges when installing your HPP machines? How were these overcome?
JS: Infrastructure is the biggest challenge to start. The machines are so heavy that they require a special slab. We made sure that we had the right team to put the pieces together.
SS: If you had to do it over, would you change anything? What advice might you offer other companies that are thinking about purchasing their own HPP equipment vs. using a toller?
JS: Using an HPP toller is a great way to minimize risk and save capital while growing a business or a new product line. The relationship between toller and customer is so important as their growth is tied to each other. Transparent communication makes for a smooth processing experience and even a useful transition once a toll customer decides to buy their own machine. You never know when you need back up. We have been fortunate to maintain great relationships with manufacturers that own machines even going as far as trading spare parts and maintenance help! FE