Hard work puts Leadbetters a cut above the competition

When Philip Leadbetter took the helm of his father’s business in 1990, it was a two-man operation in Longford Mills – a traditional, old-school butcher shop. An entrepreneur at heart, Leadbetter set out to grow the business.

“I bought a little refrigerated truck and I went and peddled meat,” recalls Phil with a smile. “We also put in large freezers, sort of what you see today at M & M’s; we were one of the first to do that. We individually packaged flavoured meat and people really seemed to like it.”

A few years earlier, Phil’s dad, Bill, had blazed the trail, developing what became known as Cowboy Steaks. Bill “stumbled upon” a method of marinating a less costly cut of beef that was ideal for the barbecue. Consistently tender and tasty, the Cowboy Steaks grew in popularity – a trend Phil was determined to capitalize on.

Buoyed by the success from the personal approach that worked with the refrigerated truck, he went to Abernethy’s IGA and brokered a deal for the grocery store to carry Cowboy Steaks. It wasn’t long before the flavourful steaks, hamburgers and sausages were in every store in the chain now known as Foodland.

“We automated our facility, we put in packaging machines and really started to push the retail end of things,” said Leadbetter.

Quickly, Cowboy Steaks began to account for 40% of the business and the retail portion of the successful enterprise represented almost 90% of the operation. And while the success of the product showed no signs of waning, Leadbetter didn’t want all his eggs in one basket.

So, while cultivating the retail business, he planted seeds in a new realm: food services. A new wholesale division was formed and Leadbetter’s quality meats – most notably bacon, peameal bacon and ground beef – soon became coveted by restaurants big and small.

In 1996, the wholesale division hit the jackpot when Leadbetter landed a contract with Casino Rama that quickly became more than a $1-million-a-year relationship.

“That was pretty critical for us because of the volume. It really gave us buying power,” said Leadbetter.

The growing company soon outgrew its 5,000-square-foot facility in Longford and, in 2001, moved to a 10,000-square-foot space on Brammer Drive. The two-man shop had ballooned to a modern business with 20 employees.

At about that same time, Leadbetter welcomed Will Carson as his partner in the business. Carson – who has many year of experience in the business, most recently at Holly Park Meat Packers – and Leadbetter steered the company through a cycle of growth while staying true to the core principles that underpinned its success.

“Partnering with Will has been a great success that has helped the company grow,” said Leadbetter.

In less than four years, Leadbetter Foods found itself out of space; a 25,000-square-foot addition was built.

“We have grown every year,” said Leadbetter. “We have seen pretty consistent growth of between 12 to 20% each year over the past five years.”

With both sides of the business booming, it was soon time to grow again. And while the company had planned for expansion by buying several lots around its facility, a new opportunity presented itself in late 2010 when Parker-Hannifin, a factory on Hughes Road, announced it was shutting down.

It took almost 10 months to negotiate a deal and many more months to renovate the building. It was an extensive redevelopment of the structure that included raising the roof 10 feet higher to make it suitable for food production – an industry that has exacting standards.

In 2012, the company moved into its new 45,000-square-foot custom-designed facility. It is essentially Leadbetters’ pork facility, where side bacon, peameal bacon and other products are prepared. The original facility on Brammer Drive continues to hum; it’s where the Cowboy Steaks and other products – sausages, bacon wraps, stuffed pork tenderloins etc. – are produced. Meat from both plants is shipped all over Canada, the United States, Cuba and Japan.

In the spring and summer months, when production is running at its peak, the company has more than 150 employees. For the rest of the year, it has more than 110 – a quantum leap from those early days in Longford.

Leadbetter attributes the explosive – and continuous growth – to the quality of his products and to its diversification efforts.

“We try to stay true to the way things used to be made,” said Leadbetter, using his popular side bacon as an example. “I would say 90% of our competitors have gone to a liquid smoke spray. We still smoke our meat in our smokehouse. It’s the way it was done back in the day … that’s why it tastes so good.”

And while old-school methods are critical, the company’s facilities are state-of-the-art, with cleanliness and food safety guiding every process.

“That’s the biggest change we’ve seen in our industry,” said Leadbetter, noting the Canadian Food Inspection Agency has an office inside both its plants. “Our quality department has grown from two to seven in the past three years. It’s just part of doing business and, in the long run, it’s a good thing.”

The transformation from a retail-dominated approach has also proven to be a good thing for the company. The decision to move into food services and the creation of two popular brands – Sunshine City Foods and the Great Canadian Burger Company – has extended the company’s reach.

Today, Leadbetters’ business boasts a healthy 50/50 split between retail and food services. Cowboy Steaks account for about 10% of sales these days; the eggs are no longer in one basket.

“We realized early on that diversification was important for us to grow,” said Leadbetter. “I’ve always felt if you don’t change or if you’re not ready to change, be prepared to be left behind.”

Leadbetters is not prepared to be left behind. While the company’s products are now sold throughout Canada and some parts of the United States, Leadbetters recently branched into the export market, selling its meat in Japan and Cuba.

“Canada is very well respected around the world for food products and some Asian markets will pay a premium for Canadian meat. The export market is another form of diversification that makes sense for us,” said Leadbetter, who noted the company is exploring exporting to Mexico, China and Vietnam.

Leadbetter, a butcher by trade, revealed the company is also looking at expanding its range of products. While he couldn’t divulge details, some products have been created in the company’s test kitchen – tasty offerings that could soon hit store shelves.

The move into international markets and expansion of its products makes sense, Leadbetter says, because the company’s two plants, while busy, could be busier. “We have excess capacity at both plants. We have the potential to grow another 70 to 80% … the future looks good.”

And operating from Orillia has been beneficial, said Leadbetter. “Orillia is a good place to do business and it’s a lovely place to live,” he said.

The Orillia workforce has proven stable and dependable.

“We have been able to support the community by providing employment and we’ve been fortunate to be able to hire a great team here that has been a big part of our success and growth,” said Leadbetter.

“We don’t have a lot of the big-city problems to worry about here and from a business point of view, about 75% of our customer base is south of here and we have excellent highway access here … all in all, it’s good.”

Photo:
Philip Leadbetter outside the Leadbetter Foods’ new facility on Hughes Road. The family-owned company put down its local roots in Longford Mills; the two-man butcher shop has evolved into a modern company that ships its products throughout North America and beyond and employs 150 people during its peak season.