AFE eNews
AFE Companies To Work For Growth In Tougher 2007 Market


     Acknowledging that least year's favorable market conditions and internal process improvements set a high bar for this year's sales performance, Aga Foodservice Equipment President Mark Whalen said that 2007 growth in sales by his division's companies will have to be accomplished under less advantageous business circumstances.

    "According to industry projections, there will be fewer chain openings and a smaller amount of new unit construction than in 2006, so there will be less low-hanging fruit for us to pursue," he advised. "Nonetheless, we see this year presenting an excellent opportunity for our companies to gain additional market share by building on the sales momentum they established in '06."

    Specifically, Whalen expects Stellar Steam's business volume to grow, in part through the efforts of AFE's newly expanded hot-side rep force. Prospects also look positive for Infinity, according to Whalen, due to the large backlog of orders the company is carrying over from last year. "As for Eloma and Victory, which racked up our strongest sales increases in 2006, their products are continuing to fly out the door," he related. "Our increased focus on sales of boilerless combi oven and blast chiller systems should further contribute to rising sales volume during upcoming months."

    Further support for growing Eloma sales should also come in '07 in the form of a newly opened AFE test kitchen/education center in Chicago. This facility, Whalen related, will serve as a base for equipment demonstrations and culinary presentations by recently hired corporate chefs Mike Nicholson and Steve Goellner, as well as sales training programs for AFE reps and dealers. "We now have a central location where we can introduce and explain the end-user benefits of a new product or feature, such as the new Eloma GeniusTouch controller," he explained.

    Even as AFE continues to improve its products and sales support, Whalen stressed that price competitiveness will be one of several key determinants influencing operators' equipment buying decisions this year. "I do think price will matter more than in '06, but operators are also basing their selections on reliability and feature sets that enhance their productivity," he observed. "With energy efficiency becoming ever more important in foodservice operations, we think that AFE companies and product lines are well positioned to provide outstanding value propositions."