As part of the restructuring, Steve bought out former Jays president Thomas E. Howe's 20 percent interest in the company. The Japp family, operating as Special Foods, now controls 96 percent of Jays Foods, which employs 1,200 people. Tom Zwartz succeeded Howe as president, and Dan Madigan was promoted to executive vice president of operations. John Plys, an 18-year veteran of Jays whose father retired after working 39 years in route sales, is now executive vice president of sales. Mike Ellis and Brian Smenos were named area vice presidents of sales.
Jays also continues to introduce new products to maintain a market niche.
John McMillin, food analyst at Prudential Securities, says a regional snack company's ability to innovate is critical to its viability. The market has gotten even tougher now that grocers and retailers, such as Jewel-Osco parent Albertson's, have grown more national in scope, McMillin noted. Jays has had particular success with Oke-Doke cheese popcorn, which claims 75 percent of the business even though its price is twice the competition's. Because corn oil is usually expensive, competitors frequently buy the cheapest oil on the market, be it soy, canola or vegetable oil, Japp said. Japp also re-established family ties with two of Jays Foods' contractors, Pretzels Inc. in Lake Bluffton, Ind., and McCleary Industries in Beloit, Wis., which pack some of Jays' snack foods, such as pretzels and cheese puffs.