By all accounts, dairies are a dying breed. But don’t tell that to the folks at Guida-Seibert Dairy Co. in New Britain, one of only two independent dairies left in New England.
The business relies on its 125-year reputation for providing a quality product as it weathers an increasingly competitive market.
Alexander Guida Jr. started Guida’s back in 1929 by delivering 13 quarts of milk out of the back seat of his car. He was joined by his brother, Frank Guida, and the business grew. In 1947, they purchased J.E. Seibert and Son, established in 1886, and renamed the new company Guida-Seibert Dairy Co.
Today, Guida’s buys its milk from the New England farm cooperative Agri-Mark, which has some 200 farms supplying the milk it sells, both regular and organic. Mike Guida, Guida-Seibert Dairy’s president and CEO, said 90 to 95 percent of the milk comes from Connecticut farms.
“We offer Connecticut milk to Connecticut people,” Guida said. “We say our milk is miles closer and hours fresher.”
With annual sales of about $130 million and about 265 employees, Guida officials say the business may sound big, but it’s actually small when compared to mega-dairy conglomerates such as Dean Foods.
“We say we do $130 million; they do somewhere between $12 and $16 billion,” Guida said. “We’re really a fly on an elephant’s back.”
Paul Johnston, president and CEO of Agri-Mark, said this is the second Guida generation he has done business with. He said there are many positive aspects to dealing with an independent, family-owned business.
“It’s a little more personal; you’re dealing with the people that own the company,” Johnston said. “It comes through in the quality of their products, and to the extent that they’re involved in New Britain and the surrounding community.”
In 1929, when Guida’s father started the business, he said there were 67 dairies in the city of New Britain alone. These days, there are only two or three fluid dairy plants in the state, and Guida’s is the only FDA-approved plant with interstate shipping.
Profit margins are small in the business. “If we work on two and a half percent (profit) that’s a banner year,” Guida said. “The farmers, they don’t have it any better, and in some cases they have a worse profit margin.”
Guida’s works to maintain quality in its products in what has become a competitive market. The company recently introduced an inner foil seal under the cap on its milk bottles, and is the only dairy on the East Coast to do so.
“It adds protection from tampering,” Guida said. “People wouldn’t think of buying Tylenol without an inner foil seal but they wouldn’t think twice about buying milk without it.” Guida said the seal also maintains freshness longer, and reduces the chances of leakage.
“It’s an added benefit, just an extra step we take,” he said.
At the Naugatuck-based YoFarm, manufacturers of YoCrunch yogurt, over 50 million pounds of Guida’s milk are used each year in its yogurt. Alfred Lechner, vice president of operations, said Guida’s has provided a superior product to YoCrunch since 2004.
“We looked at the quality of their operations and we felt that their standards are in line with ours, which made for a good partnership,” Lechner said. “Service-wise, they really go above and beyond. No matter what the weather, they’re making sure our needs are met. They understand manufacturing very well.”
Guida said a commitment to being independent and carrying on the family’s legacy are what motivate the family to stay the course.
“We want to work for ourselves and not work for someone else,” he said. “We can be much more responsive and reactive to issues (being independent). We have a lot of family pride.”
Indeed, many family members have taken prominent roles in the dairy’s success. Alexander Guida Jr. turned the company over to his three sons. One is deceased, Alexander Guida III is retired and serves as chairman of the board of directors, and Mike Guida is president and CEO.
Mike Guida’s son and daughter, along with two nephews, are all being groomed for upper management positions.
“It’s a big sense of pride, a sense of carrying on a legacy that our forefathers started,” Guida said. “The buck stops here. Having your name and reputation on a carton out in the public, it’s very rewarding, and that’s why the quality is so important to us.”
Employees, even those without the Guida surname, also have that feeling of being honored to be part of the team.
“We treat our employees like family so they feel like family,” Guida said. “Our turnover rate is extremely low.”
The company offers employees who have worked for Guida’s for 25 years a trip to Hawaii. Guida said they have probably sent at least 75 employees and their spouses on vacation so far.
Guida said he and his family have a true love for the business, and plan on continuing to put out the highest quality product they can offer.
“It’s not just our company name, it’s our family name,” he said.
An earlier generation of Guida-Seibert executives get ready to break ground on facilities in New Britain.
