September 2015 Big Grower

COVER STORY — The Future’s So Bright … By Tim Hodson

“A Shade Better” is the company motto at Red Oak Greenhouse. Their goal is to provide retail customers (and end-consumers) with the highest quality products and best service possible.

Founded in 1879 as a local flower shop in southwestern Iowa, Red Oak Greenhouse has evolved into a wholesale grower that focuses on its people, its plants and its partnerships with customers and suppliers.

The company is named after the city it is located in; the city got its name from Red Oak Creek that flows through the community of 5,700.

Red Oak Greenhouse produces a wide variety of greenhouse crops including spring bedding plants, edibles, potted annuals, hanging baskets and combinations. They also grow holiday products such as poinsettias, Easter lilies and bulbs, as well as blooming potted plants, including indoor mums and foliage. They ship product every week of the year — and, no, they don’t grow any red oak trees.

A WELL-ROOTED COMPANY

In its 136-year history the company has had different owners, but for nearly 50 years, Russell Johnson has been its principle owner. Today, Red Oak Greenhouse is owned by Johnson and his business partner Dennis Bloom.

In the mid-1960s, Russell’s father, Howard, and brother, Dallas, relocated to Iowa and purchased the flower shop and greenhouse. In 1969 after returning from Vietnam, Russell entered into the family business with them.

Red Oak Greenhouse produces a wide variety of greenhouse crops including spring bedding plants, edibles, potted annuals, hanging baskets and combinations.

Back then, the Johnsons decided they wanted to operate as a production-oriented wholesale greenhouse grower so they began adding new greenhouses to accommodate their customers. To- day, they have approximately 900,000 square feet of covered production area.

In 1980, Russell’s brother left the business to start a new company and Russell was the sole owner until 1987. That’s the year he formed a partnership with Dennis Bloom and they have owned and operated Red Oak Greenhouse ever since.

Today, Red Oak Greenhouse grows and sells plants to grocery, hardware, farm & home and pharmacy stores as well as wholesale outlets within about a 500-mile radius of Red Oak.

A BRIGHT FUTURE

While Red Oak Greenhouse may be 136 years old, Russell and Dennis have positioned the company to be around for many more years to come.

Big Grower recently sat down with two of Russell’s sons, Bryce, general manager, and Mark, sales and marketing director, to find out what the future holds for Red Oak Greenhouse.

Mark and Bryce are both members of the Class of 2015 of GPN’s 40 Under 40. They are the next generation for the company and have a great appreciation for the solid business foundation that Russell and Dennis have created for the company. They are eager to help chart its course for the next century.

Mark and Bryce Johnson’s outside-the-industry experience provides
them with a unique perspective to help drive the company into the future.

The Johnson brothers grew up in the family business but when it came time to go to college, both of them opted for non-horticulture majors. Both brothers knew they would always have an opportunity to work in the green- house business; but they both also knew they wanted to explore different business disciplines.

Bryce received his undergraduate degree from the University of Kansas and a master’s degree in business administration from Drake University and went on to work for a large management consulting firm. Mark graduated from the University of Iowa, then the University of Missouri-Kansas City with a law degree and practiced law in Kansas City.

“We’ve both gone away and done our own things and learned different aspects of the business world,” Bryce remarks. He said that outside-the-greenhouse education provided themselves with newfound perspectives on the greenhouse business and how they can operate.

“The challenge is on us to continue the really good job that Russell and Dennis have done,” Mark says. “I think Bryce and I are up for the challenge.”

“We are always looking to the future. We are always trying to make sure that we are where we need to be,” Bryce says, when it comes to personnel, production capabilities and customers.

Red Oak Greenhouse has approximately 20 acres of indoor production in two different locations.

“We are looking at the big picture of this business because we want to be in busi- ness for the next 100 years, not just the next five,” Mark says. “We are continually investing in our facilities and our people.”

Bryce and Mark concur that it is critical to always be open to change in all aspects of the business. Don’t do something “just because that is the way we always did it in the past,” Bryce remarks.

“At the end of the day, you have to always keep an open mind to stay on the cut- ting edge,” Mark says.

Bryce says they constantly trial new varieties, packaging concepts and processes to find out what works not only for their company but also for their partner customers companies, too.

“Maybe only 10 percent of the things we trial will actually stick [and become a reality], but if you didn’t do any trials, you wouldn’t even have that 10 percent,” Bryce remarks.

He says they learn so much from the trialing process about the products as well as themselves. “You are always pulling some [kind of information] out of the trials.” He says they might not need that information immediately, but they will have it for the future — maybe tomorrow, maybe next season, maybe five years from now.

IT’S A TEAM EFFORT

While Red Oak Greenhouse is a big grower, the Johnson brothers view the company as a small, family run business. Both Bryce and Mark say one of the best things about working at Red Oak Greenhouse is the chance to work with family — and not just their immediate family; they view all of their team members as family.

“You have got to have a good team. There is not one person who knows everything and there is not one person who can do everything; it is a team ef- fort,” Bryce states. “Everybody is important from top to bottom.”

“Everybody brings a unique aspect to the busi- ness. Bryce and I are brothers, but personally we are not the same, which is great,” Mark says. “It’s great to have multiple views on things so we can determine the right direction to go toward.”

“The nice thing is when you have multiple views, then we can make sure we are doing the right things,” Bryce says. They like being able to look at an issue from all angles to make sure nothing is being missed, and they are on target to meet their goals or to be nimble enough to make changes if they are necessary.

“The one thing we really pride ourselves on is putting our team together [with the right people in the right positions] to stay ahead of the curve,” Bryce says. “So we are doing the things we need to be doing to produce the products our customers want and need.”

Mark says in a small company, “you wear multiple hats. That can be a challenge but it can also be exciting” because it allows them to be flexible in their decision making process.

“There are so many different things to having a small business that you have to be an expert on but you can’t do a lot of things [easily] when you are a big organization,” Bryce says.

CULTIVATING PARTNERS

Mark says the company does not view its customers as just customers. He uses the term “partner customer” when talking about the retailers who they service. “Our partner customer base is growing and we want to grow with them,” he says.

“We try to get to know them on a more personal level. We want to partner with them for a long time, not just a one-time sale.”

“We are always going to try the best we can to make sure [our customers] are as successful as they can be,” Bryce adds. That means selecting the top performing varieties, growing them the best way possible and delivering them where they need to be when they need to be there.

Red Oak Greenhouse has its own fleet of trucks to deliver products year-round to customers within about a 500-mile radius of Red Oak, Iowa.

“We are constantly trying to pick the best products for our customers so they can ultimately be successful and the end consumer can be successful. We not only listen to our customers, we act on what they have to say,” he adds. “We make sure things happen.”

“You can’t be complacent. You have to think outside the box and constantly communicate with your customers,” Mark says.

Mark says the company also views its suppliers as partners. Open communication with the supplier community is vital. “Our suppliers are a great asset to our company” providing them insight on trends, new products and other issues.

When it comes to knowing what today’s consumers want in regards to to live goods, “we don’t pretend to have all of the answers,” Mark states. “We continually touch base with our partner customers and suppliers, attend trade shows, follow social media and read con- sumer publications to stay on the cutting edge.”

“It’s amazing what [the supplier community] brings to the table,” remarks Bryce. “They go to so many differ- ent places and see things we may not be able to see and tell what will or won’t work for us.” That type of input is essential to the team at Red Oak Greenhouse.

THE NEXT 100

Bryce and Mark are very cognizant of how much blood, sweat, time and money Russell and Dennis have invested in the company over the years “to help move us into the future and make room for Mark, myself and our brother Jordan as well as other family members,” Bryce says.

Mark adds that Russell and Dennis have always stressed how important it is to find the right team members as well as customers and be sure you de- velop a partnership with them. “Our three biggest assets are our employees, our customers and our sup- pliers. It’s all about partnerships and team effort.

“Thanks to their sound business practices, they have built a solid foundation for the company,” Mark says. “They preach controlled growth and don’t be reckless. The challenge is on us to continue on the really good job they have done, and Bryce and I are up for the challenge.”

“They have helped position us for the future so the company can be around another 100 years,” Bryce declares. “As long as we continue their model, that should easily be attainable!”

RED OAK GREENHOUSE AT A GLANCE
YEAR FOUNDED: 1879
LOCATION: Red Oak, Iowa
TOTAL GROWING SPACE: Approximately 20 acres under cover in two locations in Red Oak
MANAGEMENT TEAM: Russell Johnson, president and co-owner; Dennis Bloom, vice president and co-owner; Bryce Johnson, general manager;
Mark Johnson, sales and marketing director
NUMBER OF EMPLOYEES: 87 year–round (70 full-time and 17 part-time) and 140 during peak season
CUSTOMERS: Grocery, hardware, farm & home and pharmacy stores as well as wholesale outlets within about a 500-mile radius of Red Oak.
WEBSITE: www.redoakgreenhouse.com