United States Senator Daniel K. Akaka (D-Hawaii) announced the formation of a new initiative to promote Hawaii agricultural products. Under a special marketing arrangement championed by Senator Akaka for the Hawaii Food Manufacturers Association, the products of 18 Hawaii food manufacturers will be sold in four West Coast military commissaries: Naval Station San Diego and Camp Pendleton in California, and Fort Lewis and McChord Air Force Base in Washington.
The first container of products departed for the Mainland yesterday (Thursday) and should appear on commissary shelves during the first week of September. The products include a wide variety of Hawaii agricultural specialties and processed consumer goods, such as coffee, cookies, candies, poi, drinks, and macadamia nut products.
"This is a unique opportunity for Hawaii's farmers and processors to bring their aloha to West Coast commissaries," Senator Akaka remarked. "Military commissaries are found in every major Mainland market and have combined annual sales of $4.9 billion. Gaining a foothold in the commissary market could mean significant sales gains for Hawaii products." Lieutenant Governor Mazie Hirono agreed. "Hawaii manufactures a variety of unique food products – island coffees, tropical fruit condiments and drinks, Maui onion sauces, taro baked goods, Hawaiian macadamia nuts and oils – and now military families on the West Coast will be able to purchase and taste first-hand the many wonderful products of Hawaii."
"Diversified agriculture has been a bright spot in our economy in recent years," Senator Akaka noted. Diversified farm receipts rose an average of 5.5 percent annually for the past three years, surpassing the $300 million mark for the first time. "Any industry enjoying strong growth must constantly seek new markets to sustain that growth," Akaka continued. "West Coast commissaries offer vast potential for Hawaii farmers." The four commissaries featuring Hawaii products had sales of $233 million in 1997. Three of the four stores rank in the top ten commissaries for sales volume. "These businesses will enjoy unprecedented exposure to the huge commissary market," said Akaka.
Senator Akaka applauded efforts of the many individuals who labored to put this initiative together. "Many public and private partners made this venture possible, and they all have the best interests of Hawaii's small business community at heart. Of course, none of this would be possible without the support of U.S. Department of Defense Commissary Agency (DeCA)," he noted. Senator Akaka pressed DeCA to embrace the joint marketing proposal. Richard Cook, Hawaii Zone Manager, Defense Commissary Agency also commented, "The Made in Hawaii Commissary Project provides some very real opportunities for Hawaii's small business food manufacturers while helping us at the Defense Commissary Agency provide a unique and exciting array of products to our military customers on the Mainland."
Steve Geimer, of the Hawaii Food Manufacturers Association and manager of the Made in Hawaii Commissary Project, echoed this sentiment. "This is a concerted effort to bring a taste of Hawaii to a large, new consumer market," he said.
Jane Yamashiro, manager of the nonprofit Industry Network Corporation, which specializes in small business extension initiatives, likewise applauded the effort. "Thanks to a strong public-private partnership we have created an entirely new distribution channel."
Financing and freight consolidation are critical elements of this unique marketing initiative. Financing for the commissary marketing project was provided by City Bank, which has shown a strong commitment to business development in Hawaii, according to City Bank President and Chief Executive Officer Ronald Migita. "City Bank actively encourages the growth and development of small and medium-sized businesses and start-ups because we realize they serve as the backbone of our island economy," he said.
Dependable Hawaiian Express (DHX) is responsible for consolidating products from the 18 companies and shipping them to their West Coast destination. DHX general manager Gary Yaghyazarian remarked, "Consolidating these products so that the participating companies achieve economy of scale is vital to our marketing strategy."
