Private-Label Maker Designs Treats for Airlines, Health-Food Distributor
A baker smoothes and presses graham cracker crumbs into molds. Another pours chocolate batter into a man-size mixer and watches as the blades twirl. In another room, two women use large flat knives to slather white frosting onto giant vanilla cakes.
Rudy Pollak, chief executive at Balboa Dessert Co., a Santa Ana-based custom dessert baker, makes his way through the massive kitchen and opens a heavy freezer door. Inside, row upon row of cakes are chilling.
“Everything is im-mediately frozen after it’s finished,” Pollak said. “It keeps quality, from minute one, as high as it can possibly be.”
Baking is a science rather than a sweet-tooth lover’s pastime at Balboa, which makes private label desserts for hotels, airlines and theme parks, among other venues.
Pollak and Mary-knoll Benner, two former Taco Bell Corp. execs and chief operators of Balboa Acqui-sition LLC, purchased the 18-year-old company in 1999, and “repositioned it for rapid growth.”
Both are veterans of the restaurant industry, with Pollak also being an equity partner with former Taco Bell chief John Martin in Newport Beach-based Culinary Holdings. The company is the parent of Culinary Adventures, which owns and operates five restaurants in Orange County, including Chimayo Grill and Sorrento Grill.
Benner said the two saw potential in Balboa, which is known for its decadent desserts.
“We created a company and culture that’s truly sales driven,” said Benner, president and chief operating officer.
The new team began building on the company’s extensive library of products, including its signature Coconut Cloud Nine cake, cheesecakes and tortes, by adding new desserts, such as a giant chocolate layer cake. They also revamped some recipes in the old line and recently opened new channels of distribution by stepping into the “light side of things”,healthy baked goods.
In two years, the business, which moved to its current 18,000-square foot office and manufacturing plant about eight years ago, went from 20 employees to 50. That number is expected to jump to about 100 by year’s end, according to the company.
Pollak attributes the growth to Balboa’s strong research and development department, which recently helped land it several chunks of business, including work for Orlando, Fla.-based Galaxy Nutritional Foods Inc., and Air Canada, Northwest and Virgin Atlantic, among other airlines.
The company, which started by making and delivering custom cakes to Newport Beach restaurants, continues that push, developing private-label desserts for popular chains like Red Robin and P.F. Chang’s China Bistro. It also works with bookseller Barnes & Noble Inc., hotels such as the Waterfront Hilton in Huntington Beach, and a major undisclosed Orange County theme park.
But, the biggest news for Balboa, according to company officials, is its recent partnership with Galaxy, a manufacturer of low- or no-fat plant-based alternatives to dairy products.
The company developed a line of soy-based products for Galaxy (Balboa’s first foray into health foods) that will be distributed in health and grocery stores nationally and internationally,new distribution channels for Balboa.
For eight years, Galaxy worked with various manufacturers to come up with the right taste and formula for a Lite Bakery dessert line, according to Angelo Morini, its chairman, chief executive and president. Balboa got it right,in three weeks,using Galaxy’s targeted list of no fat, no cholesterol and no dairy ingredients, Morini said.
“We chose Balboa due to their outstanding R & D; capability,” he added.
Without giving specific numbers, Pollak said work with Galaxy will initially be “a huge piece of business.”
But in the future Balboa plans to develop that niche.
The company wants to manufacture and sell its own “Lite Bakery by Balboa” line to colleges, grocery stores and assisted living homes, and it has other prospects involving more private label work. The combination of new business could bring in up to $50 million in additional revenue per year, according to Pollak. The privately held company declined to give its current annual revenue figures.
But the dessert business isn’t always silky smooth.
Balboa faces stiff competitors, such as Reading, Pa.-based Sweet Streets Desserts Inc., a gourmet dessert manufacturer, and to some extent local players that include The Cheesecake Factory, which also makes desserts.
However, Paul Ratkovich, vice president and corporate chef, said Balboa’s edge comes back to its ability to meet clients’ needs and make quick turnarounds.
“We’re kind of like a custom hand-built car company,” Ratkovich said.
Plus, he said his dual role,head chef and salesman,makes it easier approaching decision-makers, which are often other chefs.
“You can get in a lot more doors than a salesman carrying a briefcase,” Ratkovich said. n
