Jim and Gail Rosen, owners of Highland Baking Co., receive Baking Management’s Capital Investment of the Year award.

Photos by Paul Strabbing.

During a time of economic challenges, Northbrook, Ill.-based Highland Baking Co. forges ahead with its plans for growth and has literally doubled its production capabilities in the 250,000-sq.-ft. facility it has occupied a mere 19 months. In a little more than a year, the company increased its capacity from one tunnel oven to two, 10 rack ovens to 16; and two deck ovens to three. Highland Baking purchased the building in Northbrook, a former Heinz plant, for $8 million and invested another $12 million to $13 million on equipment, modernization of the building, labor and the installation of a 14,000-sq.-ft., 2,200-pallet freezer. It currently is adding another line, including a mixer, divider and tunnel oven, for an additional $4 million.

Five years ago, the company's sales were at $15 million, but today, they are about $50 million to $55 million — representing more than 200 percent growth. Growth was 25 percent during the past year alone — not only a time when commodity prices were at record highs, but fuel, gas and electricity were costly as well.

While Baking Management presents Highland Baking Co. with the Capital Investment of the Year award, it is Jim Rosen, owner and C.E.O., who is the “real story,” says Stu Rosen, vice president and general manager, and Jim's son. Although he is admittedly biased, Stu feels “the heart and soul of the company beats with his father. He has never looked back or thought about ‘what if.’ He has guided and built this company through all of its changes. He has been integral in so many ways, whether there were five people involved or the 360 people we employ today.”

About 65 percent of Highland Baking's business consists of frozen, fully-baked pan breads, specialty buns and other breads, with the remaining 35 percent dedicated to fresh routes of specialty breads and rolls. Its product line includes pan breads, dinner rolls, focaccia, breadsticks and marble ryes, among others. Various toppings, from white sesame seeds to the white and black variety, to poppy seeds, herbs and spices, cheeses, onion and a host of others, enhance the bakery's product offerings and enable the bakery to create customized items. With an extensive product line of 800 to 900 different items, Highland Baking relies on its ability to be flexible and reactive to change.

Highland Baking’s high-capacity tunnel ovens help the bakery keep pace with growing demand from national chain accounts.

Photos by Paul Strabbing.

Managing change

Jim Rosen comes from a long line of bakers. His grandfather started S. Rosen's, which will be 100 years old next year. Alpha Baking Co., Chicago, acquired S. Rosen's in 1981. Jim left Alpha Baking 18 months after the merger, so he and his wife, Gail, could start a bakery in Florida. When the venture didn't work out, Jim and Gail returned to the Chicago area, and eventually purchased and reincorporated Highland Baking Co. in February 1985.

After Jim acquired the bakery, it began producing bagels, challah and a few other products for Alpha Baking. “Eventually, we decided to get into other products — not the typical hamburger bun — but the upscale bun,” Jim says. “We developed a bun for a national restaurant chain in 1997. We got into the frozen business shortly afterwards with buns and pan breads for Cheesecake Factory, and the business evolved from there. Our frozen business grew out of our fresh business through word of mouth. It's a side of the industry that you have to know. In the frozen business, and even in the fresh, it's about building relationships with buyers and corporate chefs, so as they move around from one account to another, they want to bring you with them because they have trust in you. Up until two years ago, we never really had anybody selling nationally, but we hired a national salesman a couple of years ago, and we'll be adding two more soon.”

Jim's ingenuity, perseverance and ability to overcome adversity have been valuable assets to his company, which has seen much change in the 23 years since its incorporation. Highland Baking began operating in a 1,500-sq.-ft. building in Highland Park, Ill., and went through two additional moves in Lincolnwood, Ill., until its most recent move to its current, fourth and final location, according to Jim. Any further growth will come not by moving, but from an additional 100,000 sq. ft. to 120,000 sq. ft. the company can build without requesting a variance from the city of Northbrook, or by building a second plant in another location to offset fuel charges and shipping costs.