Kleinpeter Farms Dairy has acquired a new fleet of delivery trucks that are emblazoned with the company’s new decals—black spots like those of a Holstein cow. It’s the most high profile of several major investments the local dairy has made in the past 15 months, as it strives to rebuild its image and brand loyalty nearly two years after problems surfaced with the taste and quality of the hometown dairy’s beloved milk.
Kleinpeter has spent more than $1 million on the fleet of 28 white and black-spotted trucks, which the dairy is leasing for the time being. So far, three vehicles are plying local roads. The additional 25 will be added in the coming weeks and months.
“Our old trucks were absolutely horrible and were obviously a very neglected aspect of our operation,” says Kenny Kleinpeter, vice president of sales and marketing. “These represent a fresh new start. Everybody can see we are serious and back in business.”
In addition to the new trucks, Kleinpeter has spent several million dollars replacing aging processing equipment at the Airline Highway dairy. Outdated and faulty equipment was largely responsible for the problems with the milk’s taste and shortened shelf life, which drove away even many of the most loyal customers during the first half of 2014 and caused sales to fall by nearly 50%.
In early 2015, then-CEO Jeff Kleinpeter, who had run the family-owned company for 25 years, stepped down. His sister, Sue Anne Kleinpeter Cox, now heads the company as president and CEO.
Cox rules by committee, with Kenny Kleinpeter and several other top-flight managers from the outside, who have joined the team over the past year. It’s a different corporate culture than before, and managers say employee morale has improved dramatically and turnover is now less than 1%.
“The changes I’ve seen in the past year have been tremendous,” says Fred Smith, plant manager. “People are happy to come to work.”
There is a lot of work to do. Investments in new equipment have enabled Kleinpeter Dairy to increase its efficiency and its volume. The company has also devoted time and resources to employee training, implementing higher quality standards, and maintaining a Level 3 Safe Quality Food designation, an important industry certification.
Now, company executives say they need to rebuild trust and bring back loyal customers. Cox estimates the dairy has regained about 80% of the business it lost in 2014. In 2016, she hopes to recapture the remaining 20%—and then some.
“Folks are coming back and we’re growing in sales,” she says. “But we do have room for growth. We’re poised for it.”
—Stephanie Riegel
