Gluten-free products
By Russ Oechslin, Journal Correspondent | Posted: Sunday, July 29, 2007
SPIRIT LAKE, Iowa -- When Dick Reed was looking for a business he could run, his research led him in many directions. And when he stumbled on a tasty Brazilian cheese bread on his second visit to Brazil, he saw a product he thought he could sell in this country on taste alone.
SPIRIT LAKE, Iowa -- When Dick Reed was looking for a business he could run, his research led him in many directions. And when he stumbled on a tasty Brazilian cheese bread on his second visit to Brazil, he saw a product he thought he could sell in this country on taste alone.
At the time, he says now, he didn't realize the health need for gluten-free products.
There is an increasing number of people (1 in every 133 people according to a University of Maryland study), who suffer from an allergic reaction to gluten, a protein found in wheat and other grains, Reed explains.
People with Celiac Disease have reactions that manifest themselves in an hour or in a day, Reed says of the cramps, bone and joint aches, anemia or skin rashes that are often cause by the gluten.
"I've known about the cheese bread since 1981 when I first tried it in Brazil. I liked it right away, without even realizing the potential," he says.
The cheese bread, according to Reed, "was not created for a gluten-free market, but it just happens that is gluten-free."
Reed's brand name, Chebe, (a made-up word, pronounced chee-bee) is found not only on the basic bread mix, but on mixes for pizza crust, cinnamon roll-ups, garlic-onion bread sticks and focaccia bread. Chebe also manufactures frozen dough for rolls, two kinds of bread sticks, sandwich buns and pizza crust.
The dry mixes are packaged in 7 1/2 oz. bags, which can be stored in a cupboard until used. While the basic Chebe bread mix contains dry milk, all other mixes are lactose- and casein-free. In addition, where salt is required, Chebe uses Sea Salt, as it contains not Iodine -- another ingredient many people have allergies to, Reed says.
A gluten- and casein (lactose)-free diet have been shown to curb, and sometimes even reverse, the effects of conditions such as autism and rheumatoid arthritis, Reed says.
And, with an eye on marketing, Reed adds, "It's all ... slightly unusual, and unusually good."
Was a home business
While Reed founded the bread mix business in his Des Moines living room in 1999, he later outsourced the production of the manioc (tapioca) flour mixes now produced entirely within the new Spirit Lake facility. The plant was built last summer when he returned from Vermont -- five years after moving there from Des Moines in 2001.
In addition to a desire to move back home, "the logistics just weren't favorable there (in Vermont)," Reed says. "Vermont was beautiful, but difficult for distribution. Spirit Lake is close to the interstate for easy distribution and has a strong work force for production."
Reed is a 1981 graduate of Spirit Lake High School. His father (Bob Reed) and a partner built Stylecraft Furniture, in nearby Milford, from five employees to hundreds before selling that business. His older brother Mark runs Okoboji Wines, a distribution company also based in Spirit Lake.
Great potential
In addition to running the sales and marketing aspects of the business, Reed is often found in the plant working alongside Larry Oleson and Andy Butterworth, who mix and package ingredients and frozen dough products. Sales, he adds, have increased 20-30 percent each year over the last five years. And he expects that to "continue or increase even more with a push to new distributors on the West Coast," which is just getting underway.
Reed notes that working with the larger chain grocery stores is difficult and costly. "But the volume is there if you get in and keep selling. It can be a good deal," he says.
Large grocery stores are but one outlet in Chebe's distribution chain. Orders made on the Internet are shipped for next day delivery of the frozen products. And small stores can buy directly from the factory. Hospital service would provide yet another outlet.
As for competition, Reed explains that "demand for gluten-free products outweighs the supply, but shelf space is very limited" in many stores, "even though there is nothing like the Brazilian cheese bread product in distribution nationally."
Reed's Brazilian wife Jucymara "Ju" is also involved in several aspects of the business, he says, as are their children, Isabel, 11, and Olivia, 14.
Customer response to the Chebe products has been very positive, Reed says.
Chebe products are available locally in most Hy-Vee food stores, and other grocery and specialty stores around the country. Customers can also order directly online at www.Chebe.com
SPIRIT LAKE, Iowa -- When Dick Reed was looking for a business he could run, his research led him in many directions. And when he stumbled on a tasty Brazilian cheese bread on his second visit to Brazil, he saw a product he thought he could sell in this country on taste alone.
At the time, he says now, he didn't realize the health need for gluten-free products.
There is an increasing number of people (1 in every 133 people according to a University of Maryland study), who suffer from an allergic reaction to gluten, a protein found in wheat and other grains, Reed explains.
People with Celiac Disease have reactions that manifest themselves in an hour or in a day, Reed says of the cramps, bone and joint aches, anemia or skin rashes that are often cause by the gluten.
"I've known about the cheese bread since 1981 when I first tried it in Brazil. I liked it right away, without even realizing the potential," he says.
The cheese bread, according to Reed, "was not created for a gluten-free market, but it just happens that is gluten-free."
Reed's brand name, Chebe, (a made-up word, pronounced chee-bee) is found not only on the basic bread mix, but on mixes for pizza crust, cinnamon roll-ups, garlic-onion bread sticks and focaccia bread. Chebe also manufactures frozen dough for rolls, two kinds of bread sticks, sandwich buns and pizza crust.
The dry mixes are packaged in 7 1/2 oz. bags, which can be stored in a cupboard until used. While the basic Chebe bread mix contains dry milk, all other mixes are lactose- and casein-free. In addition, where salt is required, Chebe uses Sea Salt, as it contains not Iodine -- another ingredient many people have allergies to, Reed says.
A gluten- and casein (lactose)-free diet have been shown to curb, and sometimes even reverse, the effects of conditions such as autism and rheumatoid arthritis, Reed says.
And, with an eye on marketing, Reed adds, "It's all ... slightly unusual, and unusually good."
Was a home business
While Reed founded the bread mix business in his Des Moines living room in 1999, he later outsourced the production of the manioc (tapioca) flour mixes now produced entirely within the new Spirit Lake facility. The plant was built last summer when he returned from Vermont -- five years after moving there from Des Moines in 2001.
In addition to a desire to move back home, "the logistics just weren't favorable there (in Vermont)," Reed says. "Vermont was beautiful, but difficult for distribution. Spirit Lake is close to the interstate for easy distribution and has a strong work force for production."
Reed is a 1981 graduate of Spirit Lake High School. His father (Bob Reed) and a partner built Stylecraft Furniture, in nearby Milford, from five employees to hundreds before selling that business. His older brother Mark runs Okoboji Wines, a distribution company also based in Spirit Lake.
Great potential
In addition to running the sales and marketing aspects of the business, Reed is often found in the plant working alongside Larry Oleson and Andy Butterworth, who mix and package ingredients and frozen dough products. Sales, he adds, have increased 20-30 percent each year over the last five years. And he expects that to "continue or increase even more with a push to new distributors on the West Coast," which is just getting underway.
Reed notes that working with the larger chain grocery stores is difficult and costly. "But the volume is there if you get in and keep selling. It can be a good deal," he says.
Large grocery stores are but one outlet in Chebe's distribution chain. Orders made on the Internet are shipped for next day delivery of the frozen products. And small stores can buy directly from the factory. Hospital service would provide yet another outlet.
As for competition, Reed explains that "demand for gluten-free products outweighs the supply, but shelf space is very limited" in many stores, "even though there is nothing like the Brazilian cheese bread product in distribution nationally."
Reed's Brazilian wife Jucymara "Ju" is also involved in several aspects of the business, he says, as are their children, Isabel, 11, and Olivia, 14.
Customer response to the Chebe products has been very positive, Reed says.
Chebe products are available locally in most Hy-Vee food stores, and other grocery and specialty stores around the country. Customers can also order directly online at www.Chebe.com
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John wrote on Jul 30, 2007 7:46 PM: