Without a manager to oversee the business, the drive-thru stores declined. When Weigel returned Stateside, he set out to rebuild the retail business. He empowered store managers to run the businesses as if they owned them. They became vested in the success of the stores. The stores were profitable and employee turnover was low. Store managers are on the floor, not in an office. They know customers by name and vice versa.
Broadacre Dairy was another story, however. (See related story on page 50.) It had been in the family since 1931, when Weigel’s grandfather and his two sons converted his vegetable farm into a dairy farm in order to survive the Depression. They sold milk to Civilian Conservation Corps camps in the area and to nearby Oak Ridge, the so-called Atomic City. For a variety of reasons, the plant was running in the red. But about 10 years ago, it started turning a profit, thanks in part to new plant manager Douglas Rouch and increased demand from the stores. In 2001, Broadacre joined the All Star Dairy Association to benefit from the association’s purchasing power for ingredients, equipment and freight. Sterne says other membership benefits include training, employee recruitment and technical assistance in processing.
The competitive landscape
The Weigel’s niche is a premium store with premium products. The dairy produces skim milk, 2% milk, vitamin D whole milk, buttermilk and 2% chocolate milk in quarts, half-gallons and gallons. Egg nog is sold seasonally. Weigel’s also carries pure Valencia orange juice in half-gallons and a variety of natural flavored brewed teas (including sweet tea, sugar-free, orange and peach tea), lemonade and fruit punch.
The chocolate milk won a 1st place blue ribbon at the Tennessee State Fair in 2011. Any processor selling milk in the state of Tennessee was eligible to compete. Because there was no 2% category, Weigel’s chocolate milk competed against whole milk (3.5% fat) along with 10 other entries. Eric Goan, Food Science Plant Manager at the University of Tennessee, who oversaw the contest, says the criteria were flavor, appearance, and body and texture. Billboards near the stores tout the achievement.
Weigel is always looking out for new flavors. Based on trends, he tried a green tea with honey but the market rejected it, he says. A strawberry-flavored milk is under consideration.
Weigel wants customers to be 100% satisfied, and based on fan mail, the company is doing a good job. He pulls from his desk a sheaf of letters and emails from customers who comment positively on the cleanliness of the stores, the taste of the milk and the friendliness of the employees. By producing its own dairy and nondairy beverages, Weigel’s can control the product, and thus the customer experience. Though milk carries a 24-day shelf life, it flies out of the stores in two to three days, Weigel says.
Milk’s healthy halo
The stereotypical C-store is filled with tobacco, beer and unhealthy snacks that appeal to young men. That’s not Weigel’s, which has added fresh fruit and healthy snacks to its menus. Another health initiative this year is a Weigel’s Kitchen sandwich deal that includes a pint of milk.
