Bob Berry and his family have a long history in the nursery business, founding American Nursery Products in the 1960s. Bob left this company in 1991, founded Tri-B Nursery with his sons Burl and Brian and the company has expanded ever since. The Berrys purchased Zelenka Nurseries, with 5,000 acres in production in Michigan, Tennessee and North Carolina, for $20 million in October. The family now has 6,200 acres in production and estimated annual sales of $130 million-$150 million. I caught up with Bob in late November.

Q. How did your family decide it wanted to purchase Zelenka?

A. We weren't out looking to buy anyone. We were focusing our attention on our present endeavors, including Tri-B Nursery in Tahlequah, Okla., Park Hill Plants and Trees in Park Hill, Okla., Sanders Nursery & Distribution Center Inc. in Tulsa, Okla., and Judkins Nursery in Smithville, Tenn.

However, I had known Zelenka president Rich Brolick and the Zelenka operation for some 40 years, having entered into the nursery business after college in 1961. I was familiar with the management for some time. Upon hearing that the company had shut down, and knowing it is unusual for a company that large to shut its doors, I made a call to Rich to find out what was going on.

He explained to me their situation and explained that they were going to file bankruptcy and find a buyer. He invited me to look at the asset base to see if I would have any interest.

Subsequently, I did tour the three separate operations with my two sons Burl and Brian, and became interested in pursuing the acquisition. I knew Zelenka to be a company with an impressive history, and one with a large group of loyal followers.

Further, it was my belief that it would fit well within our group of nursery companies, and would further complement our customer base and further enhance our ability to provide a quality product to our existing customers here in the Midwest.

Q. Are there any major changes you have planned for the Zelenka organization?

A. It's premature to announce the various changes or strategic variations that we have in mind for the Zelenka operations. We do have some upcoming meetings in early December to discuss Tennessee and North Carolina.

As far as the Michigan operations are concerned, there will be very little change other than to encourage more container production of Taxus and other inventories with less emphasis on field production. However, you will continue to see the sales efforts of Park Hill Plants & Trees and Judkins Nursery at many of the shows where Zelenka has been so visible and where our product and market overlap.

Q. Zelenka has traditionally been very visible at trade shows, etc., while Tri-B usually remains low key. Do you foresee any changes in how Zelenka markets its products? A. It's true, Zelenka and Tri-B differ in their approach to sales. Zelenka has traditionally been very visible in trade shows and has fielded a fairly large sales force to sell its products. We see that continuing, with very little change in how they market their product.

Q. Your current operations appear to run very efficiently. Do you have a plan for reducing expenses at Zelenka?

A. I appreciate the compliment. Do we have a plan for reducing expenses? The only approach that I will take at any operation is to attempt to be a low-cost producer of high-quality plants.

As we look at the various operations and become more familiar with them, we will look at ways that we may be able to reduce costs without impairing the quality of the plants.

Q. Will Zelenka's customer base change? Do you plan to change the focus to increase sales to chains?

A. Zelenka has a well-balanced customer base, with a rather strong percentage of their sales in the independent marketplace. However, they do sell some of the same chain stores we currently sell to in the South.

We don't plan any substantial changes in Zelenka's customer mix. However, changes in the marketplace indicate where a wholesale company must direct its sales effort.

Q. Tri-B grew very quickly after it was founded. What do you credit that to?

A. Again, the marketplace determines your growth rate and the direction that a company tends to take.

Tri-B grew and expanded at a time when my old company, American Nursery Products Inc., was disintegrating, which left a void in the marketplace. Tri-B, a low-cost producer of quality plants, quickly filled that void.

Additionally, the marketplace to a large extent is driven by annuals and perennials. Approximately six years ago, Tri-B added perennials to its product line. The demand has been strong enough that perennials will surpass our woody ornamentals, moving to approximately 55 percent of our sales at Tri-B in 2004. I credit this rapid growth to giving the customers what they want, when they want it and of such quality that it will move through to the consumer.

Q. What did your experiences with American Nursery Products teach you?

A. Your question is interesting. I would have to say, first and foremost, it was an expensive lesson. But I found out that anything less than 51 percent is not worth much in a public corporation.

Also, I believe that it is very difficult to operate in a public-company status in this industry with all the variables that we, in the nursery business, encounter.

We are seasonal, with the bulk of any profits earned in one quarter, and Wall Street has a difficult time dealing with that issue.

It is also very hard to predict the future quarterly and yearly earnings because of the variables that we deal with and, again, Wall Street doesn't understand that. Among other things, I have learned to rely, to a large extent, on my own experiences and abilities in dealing with banks.

Our company is totally family controlled. We do not rely on so-called "financial experts" without any practical knowledge of the nursery industry to make decisions that could affect our company.

Q. Do you have any immediate plans for further expansion? Can you see yourself buying more nurseries in the future?

A. We did not have plans for future expansion when Zelenka came along, and we are not out looking to buy other nurseries at present.

However, we are presently buying a tremendous amount of bare-root merchandise to establish in containers. The thought intrigues me that the right bare-root operation could possibly reduce costs for us and bring us a supply of hard-to-find bare-root trees and plants.

I would not close the door to further growth by acquisitions, if the company's product lines, operations and customer base would complement our present situation.

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© 2002 Branch-Smith Publishing