Originally appeared in Dec. 2000 issue of Greenhouse Grower

Team Terry

2000 Grower of the Year Terry Smith has instilled enthusiasm,
commitment, and strong business ethics into a team of quality
employees at Smith Gardens.

by MATT HOPKINS
Managing Editor
matt@greenhousegrower.com

An individual award doesn’t always capture the essence of the person who receives it. Such is the case with Terry Smith, president of Smith Gardens in Bellingham, WA, and Greenhouse Grower’s 2000 Grower of the Year. There is absolutely nothing individualistic about Terry, a deeply philosophical person who credits a talented group of employees, his supportive wife, Carolyn, and the blessings of God for his success.

“We have been very successful hiring and retaining quality employees and allowing them to develop a team to meet goals and use their specialized skills,” Terry says. “I also put a lot of trust in God for wisdom and direction.”

Modesty aside, GG recognizes Terry for launching the company’s new Pacific Plug & Liner division, serving highly competitive chain store and plug markets, initiating grower-driven brands, and preserving a family-run business in the face of consolidation. But perhaps most of all, it’s Terry’s vision, energy, and enthusiasm, which he has instilled in his employees and shares with the industry, that make him Grower of the Year.

While he’s the one pictured on the cover of the magazine, Terry would be the first to tell you it’s a team award. With that in mind, we not only interviewed Terry for this article, but spoke with several members of his “team” to get the complete story of Smith Gardens and its leader.

Keeping Up With The Smiths
Smith Gardens, which celebrates its 100th anniversary next year, has a long, colorful history. “The Smith family emigrated from Scotland at the end of the 19th century and, like many immigrants in the Northwest, built greenhouses for vegetable transplants and began truck farming,” Terry says.

In the 1950s, Andy and Russ Smith, Terry’s father and uncle, respectively, began growing poinsettias and bedding plants in Bellingham, WA. After Terry graduated from Dupage Horticulture School in 1964, he entered the business and eventually became president in 1993.

Today, Smith Gardens is ranked No. 43 on GG’s Top 100 Growers list with 1.2 million square feet of greenhouse space. In addition to Bellingham, the company has facilities in Marysville, WA, Aurora, OR, and Watsonville, CA. Terry’s sons, Mark and Eric, play key roles in the organization, which employs about 400 people during the peak season.

The Perfect Match
Smith Gardens struck like lightning when it acquired an existing California rose range in fall 1999 and converted it into a plug operation by this year’s spring production. Launching the new division – Pacific Plug & Liner (PP&L) – epitomized Terry’s long-term vision for the company.

“There was a clear need to diversify Smith Gardens for the future,” Terry says. “We believed the natural direction was developing a facility to supply plugs and rooted and unrooted cuttings for in-house use, as well as to become a supplier to other growers.”

The decision to retrofit the six-acre rose range vs. building a brand new facility was based on a number of factors, most notably time.

“We needed a production facility sooner than we would be able to build one,” says Eric Smith, director of development.

The existing facility’s design and location were also important considerations in the selection process. Two-thirds of the range is covered with Dutch glass and one-third with fiberglass, which provided maximum light levels for plug production. In addition, Watsonville, which is located near the California coast, has an average summer temperature of 72°F, ideal for producing plugs. The greenhouse is also located close to a major highway, perfect for shipping to other growers.

Once the facility was picked out, retrofitting it in time for this year’s spring production was the next lofty goal. “One of the major challenges was to finish the retrofit on a short schedule,” says Mark Smith, the company’s director of operations and production. “The retrofit was put under a magnifying glass, both for doing the job right the first time as well as the time making it functional.”
Even observers outside the company have been impressed by the rapid rise of the new division.

“The PP&L operation is a real success story,” says Jim Rearden, president of TrueLeaf Technologies/ BioTherm Hydronic, which provided a hot water, under-bench heating system and Argus environmental control system for the operation. “The speed and ingenuity that Terry and his sons worked to realize this operation is quite impressive.”

Driving The Market
With more than 25 years selling to mass merchandisers in California, Washington, Nevada, Oregon, Idaho, and Alaska, there are bound to be bumps along the way. But for the most part, the relationship between Smith Gardens and its chain store customers has been built on trust, quality, and business integrity, Terry says.

“We made a commitment years ago to serve the chains and we have grown with them and understand their needs,” he says.

The partnership with the chains is mutually beneficial, adds Mark. “We embrace it, although it doesn’t mean we like everything about it,” he says. “But that is our niche, and we are geared around that type of customer.”

The company has developed its own fleet of delivery trucks over the years, which has enhanced its customer-service capabilities. “We have a saying in our company, ’We are only as good as our last delivery,’” says Dave Edenfield, director of sales and marketing. “It’s imperative that our customers are successful and profitable selling Smith Gardens’ products.”

Since it sold its first plant to Fred Meyer in 1974, Smith Gardens has seen competition steadily increase over the years.

“Competition has raised the stakes in the marketplace by increasing the customer’s expectations of merchandising,” says Gary Vollmer, corporate production and culture manager.

To meet customers’ changing needs over the last 25 years, the company has implemented “leave-behind” racks, UPC-labeled pots, in-store merchandising programs, and customer-compatible computer programs with EDI capabilities.
“It comes down to consistent performance – performance of a totally committed team,” Terry adds. “Competition has only made us stronger.”

As fierce as the chain store market has become, the plug market may be even more competitive for PP&L.

“It’s a highly competitive market, but it’s open,” says Chester Bammel, PP&L’s product manager. “There are many good plug growers who will force us to get better. We have the ability to reach out to both the large and small grower with equal service. With the ability to ship nationwide, we are limited only by our desire for growth.”

Branding The Northwest
One of the biggest reasons for Smith Gardens’ success has been its ability to adapt to change, Terry says.

“Change and complexity have accelerated over the last 10 to 15 years,” he says. “There is also less focus and interest on actual varieties and species of plants, which is difficult to accept for a horticulturist like myself.”

Branding was one area of change the business has embraced with open arms. It launched Northwest Grown in 1992 and has since promoted three other brands – Herb Herbert (1998), Pacific Grown, and Nature’s Best (2000).

“These brands have given us identity and our customers the opportunity to market locally grown products,” Edenfield says. The Northwest Grown brand, in particular, has been extremely successful. “We use the brand and logo on all promotional pieces, as well as on pots, tags, and shelf talkers – anywhere it makes sense,” he says. “Most retail customers know and recognize the Northwest Grown brand.”

Building The Team
While Smith Gardens has been approached about consolidation in the past, Terry prefers the team environment he has developed.

“It takes time to effectively pull together a successful team culture without destroying it in the process,” says Terry, referring to the effect consolidation could have on his company.

Keeping the family atmosphere is something the company takes pride in, says Jim Halvorson, production manager and head grower at the Marysville operation. “As Smith Gardens grows, we pride ourselves in that we are a family-owned business,” he says. “We gather strength from this, and feel that the lines of communication are much more open and direct.”

There is no “I” in team, a concept Terry feels strongly about. “People who work for our company must be able to leave their egos at the door every day,”he says. “They must be committed to helping grow our business over the long-term. It is the chemistry that makes us the dynamic and exciting company that we are.”

Staffing PP&L was the most recent example of finding people with the same integrity and passion for the industry. “Building the California team of people from ground zero was a great challenge,” Eric says. “It’s been one of the most fulfilling challenges as we see them standing on their own in many respects.”

With 20 years of industry experience, Edenfield attributes the successful launch of the facility to Terry. “He attracts people to our company who want to work in an exciting environment,” he says. “This enthusiasm and excitement flows through the company because of Terry’s influence.”

Lori Crawford, operation’s manager at PP&L, says Terry’s genuine concern for his employees and their contribution to the company fosters teamwork. “Respect for people and acknowledging the importance of every role in the greenhouse business has allowed Terry to develop a winning team.”

Although he’s not ready to step down just yet, at 59, Terry says he and his sons are exploring ways to develop their roles in the future, including succession of the business.

“I’m keenly aware of the next generation,” he says. “The decisions I’m making today have long-lasting consequences. I never want to look back and wish I had done something differently.”

As the fifth generation of Smith Gardens enters the business picture in years to come, Terry is not concerned about their options. “If the next generation has the desire to enter the business, there will certainly be many opportunities for them,” he says. GG