The Costco Connection - January 2014

Company:

Vitamix Corporation

Leadership:

Jodi Berg, president; John Barnard, executive chairman and CEO

Full-time employees:

803

Headquarters:

Cleveland, Ohio

Phone:

(800) 848-2649

Website:

www.vitamix.com

Products at Costco:

Vitamix model #5200 (warehouse);

5200 super package ( Costco.com);

#6300 (Special Event roadshows)

supplierprofile

Quote about Costco:

“Our company’s vision is to improve the vitality of people’s lives and liberate the world from conventional food-preparation boundaries. Costco and their members share this passion. By partnering with another industry leader, we have created a wonderful opportunity to bring this vision to fruition.”—Jodi Berg

VI TAMIX

“The company made it a priority during that
time to take care of non-family-member
employees. They continued to get paid, but
family members did not,” explains Ciepiel. “A
number of family members actually lived and
slept in the factory [to save on living costs]
until the company got back on its feet.”
Vitamix revived itself with a vengeance,
completely revamping its direct-mail market-
ing efforts to focus more clearly than ever on
whole-foods nutrition and significantly rede-
signing its traveling demonstrations. Now
headed by president Jodi Berg, great-grand-
daughter of founder Papa Barnard, the com-
pany has seen its sales increase by double
digits for the past five years—up almost 50
percent from 2012 to 2013 alone.

Why are consumers willing to spend
more than $400 on a blender, even one that
some users call the “Ferrari of blenders”?
For one thing, says Berghoff, it’s a power-
house. “In addition to the strength and
speed of the motor—which is commercial
grade—the specialized blade design and
container shape work together to create our
special machines.”
Berghoff says the Vitamix can even
replace multiple kitchen appliances, making
it a comparative bargain. “It replaces the
juicer, and does a better job by retaining the
fiber and nutritional value of the fruit and
vegetable skin and pulp,” he explains. “It
replaces the ice cream maker and [some
aspects of the] mixer. It can even grind meat
without specialized attachments.”
Will Vitamix’s success tempt the com-
pany to expand into other product offerings
in the future? Ciepiel is doubtful. “We’re ada-
mant about staying focused on our blending
business, and we think that’s what makes us
so good at it,” he says. “Overall, our core
focus is on improving the vitality of people’s
lives. And we have found that this blender
can definitely do that.” C