Ladera Ranch-based Dulcinea Farms LLC is a little fruit company with big ties to the agriculture industry.
The grower and seller of mini seedless watermelons, tomatoes and cantaloupes doesn’t disclose its yearly sales but its parent company, Switzerland’s Syngenta AG, does.
Syngenta, which develops seeds, herbicides, fungicides and insecticides, counts more than $9 billion in yearly revenue. It has a market capitalization of about $30 billion.
The company started Dulcinea in 2003 as a side project to develop smaller, easier-to-eat watermelons with thinner rinds.
Syngenta chose to open Dulcinea’s headquarters in Ladera Ranch because it was near the company’s original farms in California and Arizona, according to Keith Kato, senior vice president of sales and marketing.
Dulcinea has quietly expanded the business ever since by creating products and selling them to stores throughout the U.S., Europe and Asia.
The company counts 22 workers in OC and 11 employees who travel to some 45 farms scattered across California, Arizona, Texas, Florida, Indiana, Georgia and other states, as well as Mexico.
Dulcinea taps contract farmers to grow its fruit with Syngenta’s proprietary seeds. The company sends field scouts to monitor the harvests so that the fruits are grown according to Dulcinea’s specifications and to ensure the fruits are consistent in taste, shape and color.
The fruit is sold and shipped via third-party carriers to large grocery store chains owned by Kroger Co., Safeway Inc., Whole Foods Market Inc., Costco Wholesale Corp. and others.
Dulcinea also sells its fruit to restaurant companies such as Corner Bakery Cafe.
Like other fruit companies, Dulcinea battles transportation costs spurred by sky-high gas prices.
It’s a constant challenge that leaves fruit companies, like other commodity-based businesses, to eat the expenses, Kato said.
Having a large parent company with deep pockets keeps Dulcinea’s business afloat despite the rising costs associated with doing business such as fuel and labor, Kato said.
But Dulcinea is trying to manage its costs by having its fruit grown at farms that are closer to its customers, he said.
“We have to think of strategic ways to save on fuel costs so that our customers aren’t just paying for logistics when they’re buying our products,” Kato said.
The price of Dulcinea’s fruit varies from season to season. The company’s mini seedless watermelons and cantaloupes sell from $4 to $5. A half-pound pack of Dulcinea’s tomatoes sells for about $2.50.
Dulcinea’s fruit is on the pricier side but general manager Luzius Caviezel argues that customers are paying for a higher-quality product.
“Our proprietary seeds are developed to produce fruit that’s consistently sweet and better for you,” Caviezel said.
Dulcinea’s mini seedless watermelons, cantaloupes and tomatoes were modified to have more fiber and the antioxidant lycopene, Caviezel said.
Increased awareness of obesity and a growing movement toward healthy living present opportunities for Dulcinea, Caviezel said.
“People are paying more attention to what they eat. They want to be healthier,” he said.
Dulcinea is trying to make its fruit more convenient to eat so that it can capture more business, Caviezel said.
The company recently partnered with fruit packaging company Rancho Cordova-based Renaissance Food Group LLC to launch a line of fresh-cut melon trays and halved or quartered wrapped melons.
The company hopes its packaged fruit project will help generate sales from busy consumers who want to eat fruit but don’t have the time to cut it up themselves, Caviezel said.
Costa Mesa-based Lab Clean LLC plans to hit more than $2 million in sales this year making biodegradable and non-toxic cleaning solutions for household appliances, furniture and cars.
The two-year-old company is trying to make a dent in the consumer products industry by making furniture polish and cleaning sprays for stainless steel appliances, stainless steel barbecue grills, granite and stone countertops and teak furniture under the Bayes Premium Cleaners brand name.
Lab Clean employs about 20 workers at its OC headquarters where its products are manufactured and packaged.
The company sells its products, which cost $14 on average, on its Web site and through retailers such as Restoration Hardware Inc., Williams-Sonoma Inc. and True Value Co.
While heavyweight companies such as Procter & Gamble Co. and SC Johnson dominate the playing field for household cleaning products, smaller companies such as San Francisco-based Method Products are gaining momentum with their environmentally friendly niche.
Lab Clean wants to be the next big thing when it comes to the green-cleaning business, according to Gerald McMillan, vice president.
To help it deepen its eco-friendly niche, Lab Clean created a waterless car wash spray that will be sold at Sam’s Club stores in Southern California, Arizona and Georgia starting this month, McMillan said. The cleaner will hit Albertson groceries throughout Southern California in May, he said.
The company is hoping the product will garner attention from households in drought-prone regions such as Southern California and Arizona, McMillan said.
Households can use up to 80 gallons to 100 gallons per car wash, McMillan said. Using a waterless cleaner can help people save one of the planet’s most important yet depleting resources, he said.
“Everyone is becoming more conscious about water conservation,” McMillan said.
To raise awareness of its product, Lab Clean is traveling the trade show circuit.
McMillan said the exposure should help get Lab Clean’s products into more stores.
Custom Curtains
While many makers and sellers of household goods are battling a weak-housing market and lingering credit crunch, Costa Mesa’s DrapeStyle Inc. says its custom-made niche is keeping business steady during tough times.
DrapeStyle generates $1.2 million in yearly sales making custom-designed drapes and selling them through its Web site.
Chief Executive Chris Sinatra said DrapeStyle’s niche as an Internet seller of custom-made drapes has helped it drum up business even in a down market.
Homeowners who can afford custom-designed curtains still are buying them, Sinatra said.
The added convenience of allowing customers to order their drapes according to their design specifications online is also boosting business, he said.
“People are still buying custom drapes and when you have the added convenience of selling them through the Internet that helps,” Sinatra said.
Sinatra, a former executive at American Express, started DrapeStyle with his wife Lisa in 2003.
Lisa Sinatra, a former commercial interior designer, designs curtains while husband Chris handles sales and marketing.
DrapeStyle taps local factories to make its drapes with fabrics that the company sources from all over the world. Once sewn, the drapes are packed and shipped to customers via third-party carriers.
The company counts 10,000 customers in America, Canada and Europe.
“Our average customer spends about $1,200 online without ever seeing us,” Sinatra said.
A good chunk of DrapeStyle’s business comes from the Midwest and East Coast where a lot of homeowners in those areas opt for traditional window coverings such as drapes instead of shutters and blinds, Sinatra said.
“We get a lot of business in New York, Connecticut, Florida and New Jersey,” he said.
Still, DrapeStyle is trying to appeal to OC. Last month DrapeStyle opened a 2,500-square-foot showroom in Costa Mesa where local customers can browse through drape samples.
Depending on how business goes in the next few years, Sinatra said the company would like to open another showroom on the East Coast.
