7
Farms across the country
Right-Sized Network Footprint While Deploying New Packaging Technologies
A mushroom producer faced industry-wide consumption decline that threatened its seven-farm network’s viability. Together with EFESO, we orchestrated a comprehensive operational transformation across multiple facilities and geographies. This two-year journey transformed the company–from struggling with overcapacity to achieving operational excellence and market readiness.
Food & Beverage
Private Equity
Manufacturing
Operations Strategy and Transformation
People and Organization
Procurement
Supply Chain
Our Client
A mushroom production company founded in the 1960s, pioneering a genetics-focused approach to mushroom cultivation. The company operates a dual business model, selling both mushroom spawn globally and fresh mushrooms primarily to US retail grocery markets. Its focus on spawn genetics as a quality differentiator sets it apart in the fresh produce sector, with operations spanning from California to facilities across the US.
2M
Square feet of facilities
4
States with operations
The Challenge
The mushroom industry experienced an unprecedented decline during COVID-19, with consumption falling by 20%, erasing two decades of market penetration gains. This dramatic shift created severe operational challenges:
- Overcapacity crisis: Multiple underperforming farms accelerated losses as demand decreased, with excess mushrooms flooding an already declining market
- Network inefficiency: Money-losing facilities in two US locations were dragging down overall profitability while serving unprofitable customers across the Midwest to Eastern seaboard
- Operational complexity: Aging infrastructure at legacy sites including embedded pension liabilities, underdeveloped financial rigor at international operations and heating, ventilation and air conditioning (HVAC) deficiencies all affecting yield stability
Real Results Achieved Together
The transformation journey evolved from urgent cost containment into strategic operational reinvention across the entire network. Working hand-in-hand with the organization, we reconfigured its footprint and retooled operations for long-term competitiveness.
$14.5M
EBIT improvement achieved
$9M
Annual fixed costs removed
$6.1M
ERISA penalty avoided (Employee Retirement Income Security Act)
Transformation Impact
- Achieved first on-time month-end close with new KPI dashboards and financial cadence
- Preserved complete service continuity throughout facility closures and network realignment
- Established self-sufficient operations with embedded tools, routines and leadership alignment
Our Approach
EFESO deployed high-discipline PMO structures spanning multiple workstreams, integrating HR, customer communications, environmental compliance and financial modeling. We embedded teams onsite for accelerated sprints, initiating KPI dashboards and instilling financial cadence while fast-tracking capital projects.
The methodology included value-stream mapping, Kaizen events and lean daily management systems implementation across nine workstreams. Through detailed Employment Retirement Income Security Act (ERISA) modeling, virtual PMO command centers and gated executive reviews, we guided delicate labor drawdowns while redesigning corporate structures.
Our teams conducted maintenance reliability assessments, updated infrastructure including HVAC systems and improved process flows. We managed vendor negotiations, SKU and volume analysis and site-by-site execution planning for equipment deployment. Knowledge transfer remained central, building capabilities that left the client with stronger, more self-sufficient operations structured to endure.
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Facing Similar Fresh Produce Industry Challenges?
- Struggling with overcapacity while demand shifts threaten your multi-site operations
- Seeing potential to transform underperforming facilities into strategic assets that deliver measurable returns
- Ready to build operational excellence that turns today’s losses into tomorrow’s sustainable profitability
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