Sales growth hits plateau Small increase follows 20 percent rise from the previous year. Tracy Ross

6/23/1997 12:00:00 AM

By Bureau

Sales growth hits plateau Small increase follows 20 percent rise from theprevious year.

Tracy Rosselle

Staff writer

FOREST PARK, Ga. -- After a nearly 20 percent increase in sales the previousyear, business apparently leveled off last year at the Atlanta State FarmersMarket, despite efforts by produce companies to capitalize on the Olympics.

Anticipating a monthlong business boost of 30 percent or more as Atlantaplayed host to the '96 Summer Games, local produce companies found themselvesrealizing the same disappointing returns companies in Southern Californiaexperienced during the Los Angeles Olympics in 1984.

``(The Olympics) really didn't have that great an impact,'' said Mike Bonner,manager of the Atlanta market, which is located in neighboring Forest Park.``We had some tenants that might have benefited more than others.''

Bonner said about $360 million in fresh produce flowed through the market lastyear, up from about $355 million a year earlier. But those numbers areestimates based on trucking fees and exclude shipments brought in by trucksowned by tenants of the market, so the real figure could be substantiallyhigher.

The Atlanta market, however, remains the premier facility of its kind, saidTommy Irvin, commissioner of Georgia's Department of Agriculture. He said thestate-run facility is undergoing a major renovation to help keep it that way.

``At 147 acres, it's the largest in the United States and one of the largestin the world,'' Irvin said. ``But it's over 30 years old, and it has becomeessential that we modernize it and bring it into the 21st century.''

Irvin said the state is spending about $2.5 million annually to upgrade themarket with improvements like enclosed docks, new electrical wiring and newrail tracks.

``The needs of a facility 30 years ago were entirely different from what youneed now,'' he said. ``We're spending, over a period of six or seven years, apretty hefty amount of money to modernize it. All the bigger tenants have madeus aware of what their needs are.''

When completed a couple of years from now, the renovation project likely willtop $15 million, Irvin said.

But despite the capital improvements, observers note the Atlanta marketremains much as it's always been -- dominated by four or five largewholesalers and distributors. That's not likely to change anytime soon, asconsolidations continue to mark the industry generally and the Atlanta producescene specifically.

One such consolidation occurred last July when longtime Atlanta producepowerhouse Sutherland's/Sonny East Produce Inc. bought tomato repacker AtlantaProduce Sales, also of Atlanta.

Sutherland's, celebrating its 50th year in business, serves both the retailand foodservice sectors, including large accounts such as Outback Steakhouseand Rio Bravo restaurants, said Scott Agerton, the company's general manager.

``Having our own tomato house helps us out a lot,'' Agerton said. ``We don'thave to deal as much with other people, and it frees up a man who'd beshopping for tomatoes.''

Yet several local observers remain somewhat critical of the way business getsdone among the produce companies on the Atlanta market. They call it an ``oldboys network'' that lacks the mutual cooperation of other major markets.

``I could be 50 cents a package cheaper and it doesn't matter -- they're goingto take care of the good ol' boys,'' said one observer, who asked not to beidentified. ``You can take a Red Book and go 20 years back, and then look atthem now, and there are going to be the same handful of major players.''

But others would argue that loyalty accrues to produce companies who take careof their customers.

``It's hard to argue with the old way of doing business because it's been sosuccessful,'' Agerton said. ``Obviously those companies must be doingsomething right.''