Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.
May jobs report shows mixed economic picture
U.S. employers added 175,000 jobs to their payrolls in May, the U.S. Bureau of Labor Statistics (BLS) reported Friday. That beat economists’ average estimates
SBA to solicit for SBIC early-stage fund this fall, expanding investment leverage
U.S. Small Business Administration (SBA) administrator Karen Mills has announced the agency’s next solicitation for its Small Business Investment Company (SBIC) early-stage fund will open
KIRKWOOD — And the winner of “Do Us a Flavor” is — Karen Weber-Mendham of Land O’ Lakes, Wis. The date: May 6. The location: Eva Longoria’s upscale Beso Restaurant in Hollywood. Representatives of Frito-Lay announce that Weber-Mendham is the recipient of either $1 million or 1 percent of the 2013 net sales of her
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
KIRKWOOD — And the winner of “Do Us a Flavor” is — Karen Weber-Mendham of Land O’ Lakes, Wis. The date: May 6. The location: Eva Longoria’s upscale Beso Restaurant in Hollywood.
Representatives of Frito-Lay announce that Weber-Mendham is the recipient of either $1 million or 1 percent of the 2013 net sales of her award-winning suggestion for “Cheesy Garlic Bread,” whichever is larger. The other two finalists, who submitted “Chicken and Waffles” and “Sriracha” (a hot sauce from Eastern Thailand), each receives $50,000.
Frito-Lay garnered nearly 4 million submissions through social media from American consumers for the contest. A panel of judges picked the three finalists whose recipes were developed by the company and the new products were placed on store shelves last February. Earlier this year, more than 1 million consumers cast ballots by texting or via Twitter or Facebook to determine the winner.
“This is one way the world’s number-one snack and food brand is listening to its customers,” says Mitchell T. Hamilton, director of manufacturing at Frito-Lay North America’s plant located at 10 Spud Lane in Kirkwood, just a few miles from downtown Binghamton. Listening to its customers yielded Frito-Lay $13.574 billion in revenue last year and an operating profit before-taxes of $3.646 billion (26.9 percent profit margin). Of the 48,000 employees companywide, the “Kirkwood plant employs 530 — 330 in manufacturing, 100 in traffic, and 100 in the warehouse,” notes Hamilton.
“The plant opened in November 1974 with 130,000 square feet and about 120 employees. In 1978, we added a warehouse with 65,000 feet and another 46,000 feet in the 1990s,” continues Hamilton. “The plant now [covers] close to 250,000 square feet and is [sited] on 43 acres (The company owns the site and building.) … [Our facility] has eight production lines going three shifts a day, seven days a week, and produces more than 100 million pounds of finished product annually, which includes Lay’s Potato Chips (regular, salt and vinegar, BBQ, sour cream and onion, cheddar), Ruffles, Lay’s Wavy, Fritos, Doritos, Tostitos, and Santitas.
“Kirkwood is a highly automated operation,” says Hamilton. “Frito-Lay takes in 2 million pounds of potatoes every week … We unload the trailers at one end of the plant, wash and peel them; slice them according to the product; and fry, flavor, and package them for storage and shipment at the other end … Sourcing relies on just-in-time inventory deliveries … The plant also processes about 52 million pounds of corn annually … We have 30 maintenance people on staff to ensure our production schedules and 35 tractors and 200 trailers for delivery to our customers, which are located primarily in Upstate and in New England.” Kirkwood inventories 228 different stock-keeping units.
“We buy potatoes from all over the country, although 50 percent of our supply comes from [the province of] Ontario,” adds Hamilton. From the time the crop arrives, we turn it into potato chips within a day and a half. Our corn supply comes by rail from Sydney, Ill., and our corn oil comes in by truck … The purchasing is done from [corporate headquarters] in Plano, Texas … Binghamton is well-located to serve our customers, who are mostly distributors and a few, large, retail customers [to whom] we sell direct. The site’s drivers average about 425 miles a day [round-trip].”
Frito-Lay, a division of PepsiCo, Inc., has been focusing its attention since 2007 on the changing global, consumer environment. That was the year Indra K. Nooyi was appointed chairman and CEO of PepsiCo. Her letter in the 2012 PepsiCo corporate annual report noted continuing consumer shifts. In 2006, emerging markets represented 24 percent of the parent company’s net revenue. At year-end 2012, it was 35 percent. And while consumption is shifting more to Asia, American tastes are also changing, along with a concern for food safety and a heightened environmental consciousness.
“We have eliminated trans-fats from our snack chip, as well as reduced the amount of sodium in many products,” says Hamilton. “We also offer baked products as an option to frying … and introduced multi-grains and whole grains.” In addition to the country’s concern for healthful foods, Christopher T. Kuechenmeister, the senior director of public relations for Frito-Lay, notes America’s changing tastes. “Americans now prefer more flavorful
$61.00 – $249.00Price range: $61.00 through $249.00
Select options
This product has multiple variants. The options may be chosen on the product page
From: $79.00 / year
Select options
This product has multiple variants. The options may be chosen on the product page
$189.00 – $295.00Price range: $189.00 through $295.00
Select options
This product has multiple variants. The options may be chosen on the product page
… [foods that are] more robust. There is a move to more ethnic foods and a more international [cuisine].”
Quality control is a major focus at Kirkwood. “Customers are very sensitive to the taste and freshness of our products,” avers Hamilton. “Analytics don’t tell us everything … We check the raw materials when they are received and each line tastes the product twice each shift while it is being produced. And it’s not just one person; we have a team that rates the product against a benchmark … We offer sensory training on-site and assign three to five members to each tasting team … We also lay a nitrogen barrier into some products to ensure the freshness once the chips are in the package.”
The plant is a model of energy-efficiency and recycling. “Kirkwood buys its electricity off the grid from NYSEG (New York State Electric & Gas). We have multiple ovens running at 350 to 400 degrees (Fahrenheit), and we recover much of that energy to make steam … Of all the waste we produce, less than 1 percent ends up in a landfill … [For example], we collect the starch from our potatoes and bag it for resale. Each truck we fill generates $7,000 [to the company], and the starch is turned into glue for commercial purposes. In the decade from 2000 to 2010, Kirkwood reduced its consumption of BTUs by 31 percent (natural gas), our water consumption declined 63 percent, and electricity usage fell (BTU/lb.) by 29 percent.”
Hamilton is a 28-year veteran at Frito-Lay, with a background evenly split between manufacturing and service/distribution. Born in Kentucky, he started with the company in 1985 and has worked at five different sites. A graduate of the University of North Carolina, Hamilton was an hourly worker at Frito-Lay while earning his degree. In addition to Hamilton, the leadership team at Frito-Lay/Kirkwood includes Jeff Hadwin, senior planning manager; Brian Blackham, human-relations director; Brian Watson, director of logistics, distribution, & traffic; and Tim Polman, director of technology.
PepsiCo, headquartered in Purchase, is the largest food-and-beverage business in the U.S. and the second largest in the world with 2012 annual revenue of $65.5 billion and operating profit before-taxes of $9.1 billion (13.9 percent margin). Net revenues for food and beverage are almost equal. U.S. revenues equal 37 percent of the total and represent 52 percent of companywide profit. Over the last 13 years, PepsiCo shareholder return was $201 on $100 invested; the S&P 500 return was $146.
The company employs more than 300,000 and boasts 19 different product lines that generate more than $1 billion each in annual retail sales. In addition to Frito-Lay, PepsiCo brands include Quaker, Pepsi-Cola, Tropicana, and Gatorade. Its products are distributed in more than 200 countries.
Frito-Lay is the result of a 1961 merger between the Frito Co. and the H. W. Lay Company. In 1965, the new entity merged with Pepsi-Cola to become PepsiCo. Both of the original snack companies were launched in 1932. Frito-Lay brands currently account for 59 percent of the U.S. snack-chip industry.
Contact Poltenson at npoltenson@tgbbj.com
The New York Environmental Facilities Corp. (EFC) board of directors has approved a three-year, $7.3 million loan to the city of Oswego to upgrade equipment
Buffalo Sabres hire Koelmel as president of HARBORcenter
The Buffalo Sabres of the National Hockey League (NHL) on Thursday announced the hiring of John Koelmel as president of HARBORcenter, the mixed-use hockey and
Scolaro law firm and health-care group separate, form new firms
SYRACUSE — The Syracuse law firm Scolaro, Shulman, Cohen, Fetter & Burstein, P.C. and its health-care practice group have separated, and each group of attorneys has formed new law firms. But the separated firms also plan to continue their respective practices in the same building at 507 Plum St. in Franklin Square. The Scolaro firm
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
SYRACUSE — The Syracuse law firm Scolaro, Shulman, Cohen, Fetter & Burstein, P.C. and its health-care practice group have separated, and each group of attorneys has formed new law firms.
But the separated firms also plan to continue their respective practices in the same building at 507 Plum St. in Franklin Square.
The Scolaro firm is changing its name to Scolaro, Fetter, Grizanti, McGough & King, P.C.
The 11 partners in the new Scolaro firm include the five in the firm’s name: Richard Scolaro, who is now retired, Jeffrey Fetter, Anthony Grizanti, Stewart McGough, and John King.
Fetter is serving as the firm’s president and CEO, King is the vice president and CFO, and Grizanti is the COO and secretary, according to Jeffrey Fetter, president and CEO of the new Scolaro firm.
Alan Burstein, who was among the partners in the original Scolaro firm, remains with the new firm as a partner. But he offered to have his name removed from the title of the firm to reflect the beginning of a new generation in the business, according to Fetter. Burstein also remains as chairman of the matrimonial department of the firm.
New York Assemblyman William Magnarelli (D–Syracuse) and Ron Mittleman are also among the 11 partners.
The new Scolaro firm has a total 33 employees, most of whom are full-time employees, says Fetter.
Health-care practice group starts new firm
The Scolaro firm’s former health-care practice group is forming its own law firm with the name Cohen Compagni Beckman Appler & Knoll, PLLC.
The partners in the new firm include Stephen Cohen, Michael Compagni, Marc Beckman, John Appler, and Andrew Knoll.
The new firm has eight lawyers who are leaving the Scolaro firm to form their new “boutique” firm, says Stephen Cohen, one of five partners in the new firm.
“We primarily do health-care work. We have clients from San Diego to Maine, from Florida to Oregon, and most of the places in between,” Cohen says.
The firm employs a total of 13 people, including the eight attorneys, one paralegal, and support-staff members, Cohen adds.
Word of the potential changes at the Scolaro law firm first surfaced in the middle of March.
In an article titled, “Scolaro firm warns staff of possible health-care practice exit” in the March 22, 2013 issue of The Central New York Business Journal, former president and CEO Barry Shulman said the firm had notified the staff on March 18 that the health-care practice might break off to join a downstate law firm.
Cohen, in a June 5 interview, confirmed that the health-care practice group had considered aligning itself with another “large, health-care firm” in the Long Island area.
“We chose not to do that, but instead to form our own firm” Cohen says.
At the same time, Shulman is also leaving the Scolaro firm to joining the Syracuse law firm of Gilberti Stinziano Heintz & Smith, P.C., according to Cohen.
The Scolaro firm also addressed the separation of its former health-care practice group.
“Our former health care department has established its own firm to service their clients’ special needs and we look forward to continuing to work with one another when our clients require services provided by the other,” according to a document the Scolaro firm provided The Business Journal, announcing its new name and structure.
Cohen says that forming a new law firm was a logical move. “We felt that because of the sub-specialty that was involved in our practice … it just made sense to be in a separate practice,” he says.
The attorneys in both firms believe that they can “better serve” their clients in this structure, Fetter says in an interview.
“What they do is so different from what we do … we’re going to continue together on the areas in which neither of us have our own expertise,” Fetter says.
The two firms have an agreement whereby they serve “of counsel” to each other, Fetter adds.
The firms started operating as separate entities at the start of this month and are signing separate leases with The Pioneer Companies for space on the third floor of their Plum Street building, Cohen says.
With the health-care group now practicing on its own, the new Scolaro firm’s practice areas include tax, business, employee benefits, trusts, and estate administration.
Its attorneys advise clients in areas that include the structure and operation or closely held and family businesses, according to the Scolaro firm’s announcement.
Scolaro lawyers also work with business owners in developing estate and business-succession plans, as well as helping clients in acquiring, selling or reorganizing their businesses, the firm said. The firm’s specialty areas also serve clients in matrimonial and family matters and business and estate litigation.
Scolaro, Fetter, Grizanti, McGough & King also has offices in Rochester and Stuart, Fla., according to its announcement.
Contact Reinhardt at ereinhardt@cnybj.com
Golden Artist Colors expands in Chenango County
COLUMBUS, N.Y. — Golden Artist Colors, Inc. has announced the acquisition of the former Apple Converting building in nearby Norwich. The 45,000-square-foot structure will
NFIB critical of federal swimming-pool regulation
The National Federation of Independent Business (NFIB), an organization that advocates for small businesses, is critical of a new federal regulation targeting swimming pools. The U.S. Department of Justice, which administers the Americans with Disabilities Act, issued a new rule requiring businesses with swimming pools and spas to have a lift that can help
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
The National Federation of Independent Business (NFIB), an organization that advocates for small businesses, is critical of a new federal regulation targeting swimming pools.
The U.S. Department of Justice, which administers the Americans with Disabilities Act, issued a new rule requiring businesses with swimming pools and spas to have a lift that can help wheelchair-bound patrons in and out of the water.
The rule that impacts small businesses such as hotels, motels, bed-and-breakfasts, amusement parks, and recreational facilities, took effect in January, the NFIB said in a news release.
The regulation didn’t specify a type of lift, so “naturally,” many small and family-run businesses began considering a temporary version they could use when needed and move to multiple locations, according to Michael Durant, NFIB New York director.
“But the Department of Justice ruled arbitrarily that every pool must have a fixed lift, bolted permanently to the edge of the water,” Durant explained in the news release. “The fixed lifts cost many thousands of dollars more than the temporary versions, so it’s a big mandatory expense that, like so many other federal regulations, can’t really be justified.”
A temporary lift costs $6,000, compared to a fixed lift, which could cost $10,000 or more, according to the NFIB.
“So imagine [a] small water park or a motel with two pools,” said Durant. “The owner is forced to spend $20,000 for two permanent lifts when one temporary lift would have achieved the same goal.”
If the owner fails to comply, the Justice Department could file a lawsuit, which is “a very scary” possibility that could spell the end of the business, Durant added.
Durant would like to see New York’s congressional delegation push for changes that would give “bureaucrats less discretion to impose rules that can kill honest businesses.”
Contact Reinhardt at ereinhardt@cnybj.com
CenterState CEO awards latest round of Grants for Growth
SYRACUSE — CenterState CEO on May 31 announced the winners in the 10th round of its Grants for Growth program. It’s a seed program that supports “innovative” applied-research projects between universities and industry to improve business competitiveness and create jobs. CenterState CEO awarded six “emerging” regional companies a total of more than $398,000, the economic-development
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
SYRACUSE — CenterState CEO on May 31 announced the winners in the 10th round of its Grants for Growth program.
It’s a seed program that supports “innovative” applied-research projects between universities and industry to improve business competitiveness and create jobs.
CenterState CEO awarded six “emerging” regional companies a total of more than $398,000, the economic-development organization said in an email to its members.
When leveraged against private sector and university-matching funds, this new investment will reach more than $936,000, according to CenterState CEO.
The awards have the potential to create 114 new, high-paying jobs and $38 million in new revenue for the region, the organization said.
Through 10 rounds, CenterState CEO has awarded grants totaling more than $2 million to more than 41 companies.
For the first time, companies could apply for an award in one of two categories, including $25,000 “Proof of Concept” grants for early-stage companies, and $150,000 “Concept to Marketplace” investments for later-stage companies.
In this round, CenterState CEO selected four recipients from a pool of 27 applications to receive a “Proof of Concept” grant, and it selected two companies from a field of 18 for “Concept to Marketplace” investments.
CenterState CEO awarded “Concept to Marketplace” grants to Rapid Cure Technologies, Inc. and Simple Admit.
Rapid Cure Technologies develops customer-specific chemistry and process products in the coating, adhesive, sealant and elastomer (or CASE) markets.
The firm is collaborating with the State University of New York (SUNY) College of Environmental Science and Forestry as it works to commercialize its products, according to CenterState CEO.
Simple Admit, which is collaborating with Syracuse University, is described as a new technology that replaces paper-based admissions processes at medical facilities. Using a web-based system, patients can enter their complete medical history online for immediate review by their clinical team.
The “Proof of Concept” grant recipients include Blue Highway, Inc., which will prototype a system for managing care for cancer survivors when their treatment is complete and their care is transitioned back to their primary-care providers.
Blue Highway is working in partnership with the SUNY Upstate Cancer Center.
Captura Diagnostics will use its funding as it continues commercializing technology developed at Cornell University to isolate circulating-cancer cells from patient-blood samples.
A third recipient, Motion Intelligence, is also working with Cornell to develop products meant to enhance the understanding of sports-related concussions.
In addition, Zinnia Safety Systems will use its grant as it works on the first medical-device system developed for monitoring individuals at risk for suicide.
Zinna is working with SUNY Upstate Medical University as it develops the system.
Support for job creation
Grants for Growth has a “proven” record of success, CenterState CEO contends.
For every $18,041 invested in the program a job that pays more $68,000 is created. The investment made through this round has the potential to create $38.1 million in new revenue for the region, the organization said.
CenterState CEO credits support from the New York State Senate with making the Grants for Growth program possible. State Senator John DeFrancisco (R–Syracuse) has secured $5 million in funding for the program, the organization said.
“By targeting investments based on a company’s development stage and providing the tools they need to bring their ideas and products to the next level, I am confident that we will see even more success,” DeFrancisco said in a news release.
CenterState CEO, a nonprofit, regional economic-development organization, serves 2,000 members in a 12-county area of Central New York.
Contact Reinhardt at ereinhardt@cnybj.com
Peacemaker Program expands into Madison County
UTICA — The Peacemaker Program, Inc. announced it is now the court-designated provider of dispute-resolution services to all of Oneida and Madison counties. Previously, Peacemaker was the Community Dispute Resolution Center for Oneida County only. The New York State Unified Court System Office of Alternative Dispute Resolution and Court Improvement Programs awarded Peacemaker this opportunity
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
UTICA — The Peacemaker Program, Inc. announced it is now the court-designated provider of dispute-resolution services to all of Oneida and Madison counties.
Previously, Peacemaker was the Community Dispute Resolution Center for Oneida County only.
The New York State Unified Court System Office of Alternative Dispute Resolution and Court Improvement Programs awarded Peacemaker this opportunity through a grant-application process, according to a Peacemaker news release.
Community mediation and family mediation programs are now available to residents of Madison County through the Peacemaker Program (www.thepeacemakerprogram.org), which is headquartered in Utica. The coverage includes cases currently engaged with family court, small claims court, and municipal courts, the organization said.
Mediation is a process where participants have an opportunity to find their own solutions with the help of a neutral third person, Peacemaker notes. The nonprofit contends that the programs are confidential, faster than a trial, inexpensive or free, and produce lasting, meaningful agreements.
The Peacemaker Program reported $317,600 in total revenue and $365,324 total expenses in 2011, according to the latest available IRS Form 990 filing from the organization.
Contact The Business Journal at news@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.