Jim Kras: Heartland right now as we sort of earmarked is got to say, capacity to produce about, call it, $20 million in revenue. We started shipping in April. We really didn’t get a full month of shipping. It was just timing on when we could start to cut over. That’s been a huge impact on the business because it’s allowed us to vertically integrate, get margin expansion where we needed it, to get out from under some third-party growers and producers that we just weren’t making the type of money we needed to make working with them. It’s also allowed us to expand the assortment capabilities from a distribution standpoint. The facility is impressive, not only is it located near one of our biggest customers, Meijer what it’s allowed us to do is really open up that part of the country to service accounts and to drive distribution well beyond Meijer into other regionals as well as local stores.
And we’ve allowed — and it allows us to do that with not only the produce that is being grown there and growing there much more profitably because it’s grown in-house, but also with items like pulp where we can house it, store it, ship it and push it out of that facility, which is centrally located, which gives us some pretty wide reach beyond sort of shipping from the East Coast. So the central location is strategic. It happens in line with one of our biggest customers. It’s allowed us to open up a major metro in Chicago and Chicago Land as well as Detroit and then even St. Louis and some of these other areas, that we’re expanding into right now. So I like the land grab, I like the strategic location, I like the efficiency, I like the control, I like the vertical integration, love the margin expansion.
And then obviously, the top line opportunity is significant, and I think is even potentially beyond the $20 million that we’ve put out there as we deepen the assortment of items that it is that we offer. And I think as time goes by, you’ll see some strategic moves on our end to even to maximize that key location where it is and the cost of doing business there is lower than, let’s say, on New York. So that’s one of the nice things about Grand Rapids, they’re very manufacturing and growing friendly. So it’s a great spot. We’re very happy. We’re happy with the people that we have working with us there. So it worked out great.
Anthony Vendetti: It sounds like there’s a lot of advantages to that facility in Michigan. So can you tell us kind of where it’s at in terms of the capacity? You said $20 million is the capacity. Maybe it’s a little bit more than that now but in terms of the opportunity. But are you at right now 50% capacity and approximately what capacity you’re at now? And when do you think you can get close to that $20 million in annualized revenue.
Jim Kras: Yes. I know you’ll ask that question and I think even Nick did as well, I apologize. I looked to steer away from it. Right now, our capacity is — step back for a second and look at it. There’s almost four aspects of the business. There’s the processing aspect, which is — there’s not really a limiting factor other than time and staffing on that. And as we bring in more business, we can continue to push more units out there. And that currently is up and running and servicing a couple of key players in that part of the country, obviously, Meijer and then another one. That’s a major retailer that brought in some business near term or just within the last few months. And then we have the floral business, which is an existing asset that we’ve been able to leverage, and we continue to ship those products out.
