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Golden State Foods

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Golden State Foods
Company typePrivate
IndustryFood packaging, Agriculture, Food industry and Logistics
FoundedLos Angeles Area, California (1947)
HeadquartersIrvine, California
Key people
Brian Dick (President/CEO)[1]
Productsfoods and beverages wholesale
Revenue$5.1 billion USD (2022 estimate)[2]
Number of employees
over 6000 (2024)[2]
Websitewww.goldenstatefoods.com

Golden State Foods (GSF) is a US wholly management-owned and -run[3] business-to-business[4] company that serves quick service restaurants, including McDonald’s, Starbucks, Chick-fil-A, Taco Bell, KFC and Wendy's.[4][5] Through a joint venture with Taylor Fresh Foods Inc.,[6][7]: 213  GSF is one of the biggest and longest-serving suppliers to McDonald's restaurants,[8] including liquid products, and it is McDonald's third-largest beef supplier in the U.S. market.[9][10]

History

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1947-1999

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The company was founded in 1947[11] by Bill (William) Moore and Frank Streeter and began as a small meat company to supply products to Los Angeles area restaurants and hotels. It is a 100% management-owned and -operated company.[11] In the early 1950s, it started providing meat products to McDonald's Corporation.[12]

On June 12, 1984, GSF employee Samuel Vasquez, 22 years old, was ground to death by a meat grinder in Golden State Foods' City of Industry, California facility when his coworker turned on the machine while he was inside.[13][14][15] The machine was able to turn on due to the failure of Golden State Foods to practice lockout–tagout procedures mandated by safety regulations.[16][17] Their practice was to clean with the machine running as it was slightly easier.[18] California OSHA and the Los Angeles County District Attorney filed a criminal charge against the company over this matter.[19][20][21] Golden State Foods pleaded no contest to the criminal charge.[14]

In 1998, GSF was acquired by Wetterau Associates, a St. Louis-based investment group led by the CEO Mark Wetterau and The Yucaipa Companies with the latter as the majority stakeholder.[3] At that time, GSF was valued at $1.4 billion.[4]

2000-2011

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Chef Gold was launched in 2000 to produce liquid products, such as ketchup and mustard, and cooked meat products for a variety of customers. In the same year, GSF formed a self-serving subsidiary called Centralized Leasing Company (CLC) to provide GSF with leasing services. In 2002 Signature Services was launched to offer customized services such as store painting, lot striping, power washing and landscaping. In partnership with The Arthur Wells Group in St. Louis; GSF formed CFM Logistics to help clients with their freight distribution needs. By 2017, the company serviced approximately 25,000 restaurants.[11]

Prior to 2000, the entirety of GSF's revenue came from McDonald's. With the expansion of its customer base, by 2006, the company's dependency on McDonald's was reduced to 80%.[22] The vice president of distribution said in 2006 that they choose their new customers in such a way to avoid upsetting McDonald's.[22]

GSF established the GSF Foundation, a nonprofit organization, in 2002 to provide support to children and families in need through volunteering and donations.[23]

In 2004, Golden State Foods became a 100% management-owned and operated company with the acquisition of 50.3% of the company that was owned by Yucaipa Companies.[3]

Four GSF distribution centers received awards for food safety in 2004.[24]

In 2006, Quality Custom Distribution (QCD) was formed as a subsidiary of GSF. As of February 2020, QCD delivered supplies to over 7,500 stores, including Starbucks, Chipotle Mexican Grill and Chick-fil-A.[25]

In 2009, an employee was crushed and killed by a robotic palletizer at GSF's City of Industry Plant.[26][27][28] The company pleaded guilty to a felony violation of machinery lockout-tagout and fined $2 million.[29] Additionally, the company pleaded guilty to violating California Labor Code 6425 in January 2013 for "the willful violation of Title 8 of the California Code of Regulations § 3314(h)".[30][31] The manager responsible was convicted of a misdemeanor and placed on probation.[31]

2012-present

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In May 2012, a 60-foot truck operated by Dawayne Eacret employed by GSF / Quality Custom Distribution (QCD) killed a bicyclist Kathryn Rickson while making a right turn in downtown Portland, Oregon. The family and GSF settled a subsequent lawsuit on the eighth day of a civil trial, with GSF agreeing to give $700,000 to the family.[32]

In November 2012, GSF acquired KanPak China, a manufacturing company for customers in the quick-service restaurant industry.[33][34] GSF then acquired KanPak U.S. the next year.[35][36] In 2013, GSF sold its Rochester, New York distribution facility to another McDonald's supplier, Anderson-DuBose Co.[37]

A company recalled retail packaged walnuts intended to be sold in Kansas City, Kansas supplied by Golden State Foods when they tested positive for listeria in 2014 in a FDA sampling.[38]

GSF's QCD subsidiary acquired restaurant supplier Mile Hi Specialty Foods, which served approximately 1,000 stores.[39] in November 2016.[40] GSF formed QCD Rocky Mountain LLC to run the unit.[39] QCD opened a new facility in Fontana, California, dedicated to servicing Starbucks stores in July 2018.[41] In March 2019, GSF opened a 165,000-square-foot meat processing plant in Opelika, Alabama.[42] Forbes named GSF in its "Blockchain 50" list in April 2019 for its tracking of food safety data across its supply chain.[43][44] QCD opened a distribution center, in Salt Lake City, in June 2019.[45]

GSF began using RFID to track the movement of their fresh beef as well as Internet of things devices to monitor its temperature in a pilot program with IBM in 2019.[46]

In late 2019, GSF's QCD moved its headquarters to Frisco, Texas and acquired four warehouses in the Midwest and Northeast regions in February 2020, becoming Starbucks' top supplier[47] These four warehouses opened for business between March and September, 2020.[48]

On June 1, 2020, during a protest against police brutality in Portland, Maine, a tractor trailer driver for GSF's Quality Custom Distribution slowly drove into a crowd of protesters following a delivery.[49][50] The driver was arrested on a felony charge of reckless conduct with a dangerous weapon.[51][52][53]

In July 2020, GSF's City of Industry, California facility was closed by the health department after failing to report an outbreak of 43 cases of COVID-19 to the health department as required.[54] The facility reopened less than 24 hours later.[55]

In June 2023, Brian Dick became the president/COO to replace former CEO Mark Wetterau who died in May 2023.[56] Wetterau was the CEO for 25 years.[57] In July 2024, Dick was promoted to president and CEO.[1]

As of August 2024, the company was in the process of selling a controlling interest to the Lindsay Goldberg private equity firm, pending regulatory approval.[2]

In August 2024, it was reported that the company's QCD division planned to close a facility by November 2024 and terminate 54 employees in Schertz, Texas[58]

Operations

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GSF has five core sectors of business: protein products, like hamburgers; liquid products, like salad dressings; dairy, like ice cream; fresh produce; and logistics. As a supplier of McDonald's, GSF helped create the recipe for Big Mac sauce, among others.[59] The company exports products to more than 50 countries.[60] The company also owns locations in China.[59]

References

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  1. ^ a b Brennan, Peter J. (24 July 2023). "Golden State Foods Names Brian Dick as CEO". Orange County Business Journal. Retrieved 9 September 2024.
  2. ^ a b c "Irvine-based Golden State Foods sells majority stake to private equity firm". Daily News. 2024-08-10. Retrieved 2024-10-25.
  3. ^ a b c "Wetterau will control Golden State Foods". Refrigerated Transporter. July 4, 2004. Retrieved 2020-10-19.
  4. ^ a b c "The $4 billion CEO you've never heard of". Orange County Register. 2010-04-25. Retrieved 2020-10-23.
  5. ^ Loyd, Rich (22 May 2023). "GSF's Mark Wetterau Leaves Legacy of Integrity, Generosity". Orange County Business Journal. Retrieved 9 September 2024.
  6. ^ Greenspan, Lorie (2008). Golden Opportunities. Vol. 4. Industry Today. Archived from the original on October 19, 2020.
  7. ^ Hoover's handbook of private companies 2010. Austin, Tex.: Hoover's, Inc. 2010. ISBN 978-1-57311-137-9. OCLC 419862432.
  8. ^ Salahieh, Nouran; Lyster, Lauren (2020-07-28). "3 food suppliers in L.A. County ordered to close after 'significant' coronavirus outbreaks not reported to health department". KTLA. Retrieved 2020-08-11. Golden State Foods Corp. is one of the largest and longest-serving suppliers to McDonald's,
  9. ^ Haberberg, Adrian; Rieple, Alison (2008). Strategic Management: Theory and Application. OUP Oxford. p. 134. ISBN 9780199216468. It is now the largest supplier of liquid products and third-largest beef supplier to McDonald's in the USA
  10. ^ "Golden Opportunities". Industry Today. 2016-07-26. Retrieved 2020-05-18.
  11. ^ a b c "Golden State Foods on the Forbes Blockchain 50 List". Forbes. Retrieved 2019-08-30.
  12. ^ "Golden State Foods opens US meat site to serve McDonald's". FoodBev Media. 2018-07-25. Retrieved 2020-10-23.
  13. ^ "The Los Angeles Times from Los Angeles, California on June 13, 1984 · 2". Los Angeles Times. June 13, 1984. p. 2. he slipped and fell into a heavy-duty meat grinder in the City of Industry. Samuel Vasquez, 22, died instantly in the whirling blades
  14. ^ a b Green, Stephen (September 25, 1988). "Proposition 97 would bring back Cal-OSHA". San Bernardino County Sun. p. 24. Vasquez was working inside a meat blender big enough to turn four or five sides of beef into hamburger at one time. He was cleaning the cutting blade, a circular ribbon of steel more than six feet long. Vasquez had just begun scrubbing when a co-worker, thinking the blender was empty, flipped a switch and turned it on. Vasquez's employer, Golden State Foods of Los Angeles, eventually pleaded no content to a criminal charge of violating a state job-safety standard.
  15. ^ "Crushed in meat grinder". Democrat and Chronicle. Rochester, New York. Jun 13, 1984. p. 1. Samuel Vasquez, 22, of West Covina was killed about 1 a.m. at the Golden State Foods Corp. plant, said Los Angeles County sheriffs Sgt. Steve Finley.
  16. ^ California. Court of Appeal (2nd Appellate District). Records and Briefs: B021804, Petition for Writ.
  17. ^ Criminal penalties for OSHA violations: hearing before a subcommittee of the Committee on Government Operations, House of Representatives, One Hundredth Congress, second session, February 4, 1988. U.S. Government Printing Office, United States Congress House Committee on Government Operations Employment and Housing Subcommittee. 1988. p. 50. In Golden State Foods, an employee was literally ground up in a meat blender when he went in, as was part of their regular practice, to clean out meat stuck at the bottom.
  18. ^ Criminal penalties for OSHA violations: hearing before a subcommittee of the Committee on Government Operations, House of Representatives, One Hundredth Congress, second session, February 4, 1988. U.S. Government Printing Office, United States Congress House Committee on Government Operations Employment and Housing Subcommittee. 1988. p. 42.
  19. ^ Gerrard, Michael B.; Foster, Sheila R. (2008). The Law of Environmental Justice: Theories and Procedures to Address Disproportionate Risks. American Bar Association. p. 764. ISBN 978-1-60442-083-8. People v. Golden State Foods, No. 31386211 (June 11, 1985) (prosecution for violation of California lockout requirements intended to prevent machine operation during cleaning, which resulted in death of an individual who was caught in a meat grinder).
  20. ^ Reiner, Ira; Chatten-Brown, Jan (1989–1990). "When It Is Not an Accident, but a Crime: Prosecutors Get Tough with OSHA Violations". Northern Kentucky Law Review. 17: 83.
  21. ^ Reiner, Ira; Chatten-Brown, Jan (1989-03-01). "Deterring Death in the Workplace: The Prosecutor's Perspective". Law, Medicine and Health Care. 17 (1): 23–31. doi:10.1111/j.1748-720X.1989.tb01068.x. ISSN 0277-8459. PMID 2770342. S2CID 27302009.
  22. ^ a b Luna, Nancy (July 14, 2006). "Handshake sealed supplier's future". The Orange County Register. Retrieved August 21, 2020.
  23. ^ "QCD meals support needy kids". The Suffolk News-Herald. 2013-08-02. Retrieved 2021-07-30.
  24. ^ "Golden State Foods' Quality Assurance Turns to Platinum". www.food-safety.com. Retrieved 2021-07-30.
  25. ^ Ajamy, David (Feb 6, 2020). "Fresh off its HQ move to Frisco, this foodservice distribution company is growing". Dallas Business Journal. Retrieved 2021-07-30.
  26. ^ "Woman found dead in machine at SoCal food processor that supplies McDonald's". The Mercury News. Associated Press. 2009-07-21. Retrieved 2020-10-23.
  27. ^ "La Puente woman crushed by robot at McDonald's supplier in Industry". Los Angeles Daily News. 2009-07-21. Retrieved 2020-10-23.
  28. ^ "La Puente woman crushed by robot at McDonald's supplier in Industry". Pasadena Star News. 2009-07-21. Retrieved 2020-10-23.
  29. ^ Lacey, Jackie (2014). "Report to the People 2013-2014" (PDF). Los Angeles County District Attorney's Office. Golden State Foods was ordered to pay $2 million in fines, penalties and restitution after pleading guilty to a felony violation of machinery lockout regulations that resulted in the robotic crushing death of a female employee in 2009. The company was required to establish a $125,000 college trust fund for the victim's young daughter.
  30. ^ "GOLDEN STATE FOODS CORP. | No. CV 13-8150 RSWL... | 20140630978". Leagle. Retrieved 2020-10-23.
  31. ^ a b Schmidt, Nathan (February 2, 2017). "Cal/OSHA Advisory Committee Meeting February 2, 2017 – 10:00 a.m.Oakland and Santa Ana, California" (PDF). Cal-OSHA. Archived from the original (PDF) on September 13, 2017. Retrieved October 20, 2020. Golden State Foods Corp was a case where a machine operator was fatally crushed by a robotic palletizer. Golden State Foods pled guilty to one criminal violation under Labor Code 6425, and they were required to make equipment safe, pay a $250,000 restitution, and a fine of $450,000 The responsible manager was convicted of a misdemeanor and was placed on a one-year probation with a requirement to pay the victim's family $10,000.
  32. ^ Green, Aimee (2014-02-27). "Parents of deceased cyclist Kathryn Rickson settle with truck driver's employer for $700,000". oregonlive. Retrieved 2020-08-11.
  33. ^ Yu, Jane (7 November 2012). "Golden State Foods Gets China Operation". Orange County Business Journal. Retrieved 5 March 2021.
  34. ^ Sablan, Kevin (8 November 2012). "Golden State Foods acquires KanPak China". Orange County Register. Retrieved 5 March 2021.
  35. ^ Yu, Jane (3 October 2013). "Golden State Foods Buys Kansas Processor". Orange County Business Journal. Retrieved 5 March 2021.
  36. ^ Nunes, Keith (2 October 2013). "Golden State Foods acquires KanPak U.S." Food Business News. Retrieved 6 March 2021.
  37. ^ Yu, Jane (June 4, 2013). "Golden State Foods Sells NY Distribution Center".
  38. ^ "Phoenix Company Announces Walnut Recall, Names California Distributor". Food Safety News. 2014-05-27. Retrieved 2024-10-27.
  39. ^ a b Hughes, Paul (16 November 2016). "GSF Adds Denver Distributor". Orange County Business Journal. Retrieved 6 March 2021.
  40. ^ "Quality Custom Distribution Acquires Assets of Mile Hi Specialty Foods | News". Specialty Food Association. 17 November 2016. Retrieved 6 March 2021.
  41. ^ "Quality Custom Distribution announces grand opening of new location in Fontana, bringing 100 new jobs to local area". Fontana Herald News. 16 July 2018. Retrieved 6 March 2021.
  42. ^ Thornton, William (2018-07-27). "Golden State Foods opens Opelika plant". al. Retrieved 2019-08-30.
  43. ^ del Castillo, Michael (16 April 2019). "Blockchain 50: Billion Dollar Babies". Forbes. Retrieved 6 March 2021.
  44. ^ Murray, Sarah (23 October 2019). "Transformations in the supply chain". Financial Times. Retrieved 6 March 2021.
  45. ^ Coyne, Andy (28 June 2019). "Golden State Foods opens new US distribution centre". Just-food. Retrieved 6 March 2021.
  46. ^ Rosencrance, Linda (14 August 2020). "7 real-life blockchain in the supply chain use cases and examples | TechTarget". Tech Target. Retrieved 11 September 2024.
  47. ^ "Chances increase your Starbucks was stocked by this company". Orange County Register. 2020-02-04. Retrieved 2020-08-12.
  48. ^ Shaffer, Erica. "Golden State Foods subsidiary opens four distribution centers". meatpoultry.com. Retrieved 2021-01-27.
  49. ^ Oatley, Stephen (2020-06-03). "Trucker arrested, charged with a felony after trying to 'inch a large truck' through a group of protesters in Portland ME". PT News Network. Retrieved 2020-08-12.
  50. ^ Schroeder, Nick (2020-06-02). "Portland police report 23 arrests, several vandalism cases from Monday protest". Bangor Daily News. Retrieved 2020-08-12.
  51. ^ MacNeill, Arianna (June 2, 2020). "Multiple New England cities contend with violence, looting after protests". Boston.com. Retrieved 2020-08-12.
  52. ^ "23 arrested after peaceful Portland protest takes a turn". WGME. 2020-06-02. Retrieved 2020-08-12.
  53. ^ "Multiple Businesses Damaged and Twenty-Three Arrested". City of Portland, ME. June 2, 2020. Archived from the original on September 20, 2020. Retrieved 2020-08-12.
  54. ^ Cosgrove, Jaclyn; Lau, Maya (2020-07-29). "L.A. County shuts down three food businesses over unreported COVID-19 outbreaks". Los Angeles Times. Retrieved 2020-08-11.
  55. ^ Sweeney, Don (28 July 2020). "Unreported COVID-19 outbreaks force 3 California food suppliers to shut, officials say". The Sacramento Bee. Retrieved 23 October 2020. Health officials allowed the company's plant to reopen within 24 hours once it updated its reports.
  56. ^ "Status Update: Golden State Foods names new president after death of CEO". Orange County Register. 2023-06-12. Retrieved 2023-07-08.
  57. ^ Fusaro, Dave (May 11, 2023). "Mark Wetterau, Chairman and CEO of Golden State Foods, Dies". Food Processing.
  58. ^ Mahoney, Noi (2024-08-05). "More layoffs ahead for freight-related companies across US". FreightWaves. Retrieved 2024-10-25.
  59. ^ a b Brennan, Peter J. (14 June 2022). "Recipe for Success". Orange County Business Journal. Retrieved 9 September 2024.
  60. ^ https://www.ocbj.com/oc-homepage/recipe-for-success/
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