Armanino Expansion

In a comment to my last post on the subject of Armanino Foods of Distinction, I was asked if I thought that Armanino could expand out west. The simple answer is yes, they can. Major expansion by Armanino is not a simple matter, however. The process was explained to me by the company this way about six months ago when I asked about AMNF's selling cycle.

"Our selling cycle with relatively small customers can take anywhere from 2-4 weeks. However, with larger customers, especially large national chain accounts, it can take anywhere from 6 months up to 2 years to close a deal because larger companies tend to plan their menu at least one year in advance and have longer lists of requirements. To give you a sense, here is a typical sales cycle that we might go through in selling to a national chain account:

• Armanino meets and presents samples to buyer(s). Then, if we pass muster …
• Armanino meets with the customer’s culinary team to brain storm different menu ideas
• Armanino works with the customer’s buyers/culinary team to modify a product so that it is profitable and meets the culinary team’s flavor profile.
• Customer’s management samples our product
• Armanino’s lab coordinates with the customer’s lab to conduct stringent lab tests and the completion of lengthy technical compliance paperwork
• Customer conducts test run with a few of their stores
• Even if a customer signs a sales contract, they might only start with a small limited roll out with a few stores to further “test the waters” before placing larger orders

Armanino Foods has a dedicated sales team which exclusively focuses their efforts on large national chain accounts."

So, as you can see, the expansion is an ongoing effort. Previous press releases from Armanino have made clear that the company has a large effort underway to achieve this expansion. Indeed, much of the credit for the revenue and profit increases of the last year go to that very effort.