What's happening is, throughout California, there is excess processing capacity and oversupply of produce. Historically, we have ignored this up to now. The customers have been ahead of us. Where 20 packers used to chase 20 customers, now they chase five retail buyers. We're sending a message.
Demand is flat and declining.
We're in a white-water environment. If it ain't broke, break it or you won't be around. The outspoken Vangelos said the business is being reconfigured to focus on procurement of raw product, sales and marketing and continuation of a domestic sales operation by a subsidiary, Falcon Management Group in Pleasant Hill. It's just one of a half-dozen such closures or consolidations in the Valley in nine months, and it appears to be part of a trend that mirrors consolidation at the retail level. Those in the industry say it's a way to get added clout for dealing with retailers.