Nuts About Granola, a York-based baked granola manufacturer, has scored its first national account — Costco — for one of its branded products.
Costco is now selling Forager Original Nut & Seed granola at its stores in the Northeast. The initial order was for three truck loads of product, or about 140,000 pounds, to supply 89 stores, said Sarah Lanphier, CEO of the granola company, which was started in 2008.
The product is already in some New Jersey and New York stores. It will be in Central Pennsylvania Costco locations by Aug. 20, she said. The 89 stores stretch from Maine to Maryland.
“This is more product than we’ve made in the last two years in one order,” Lanphier said of the deal, which has been in the works for more than a year.
With limited production space in York, Nuts About Granola has contracted with an unnamed third-party company on the East Coast to fulfill this order, she said.
Costco is selling 32-ounce bags of the product that are normally sold in 10-ounce packages, so everything had to be redesigned and branded for the Costco stores, Lanphier said.
If the sales are strong, she sees potential to expand nationwide with Costco.
“If it does well, I’m pretty confident other major retailers will see it as proof of concept,” Lanphier said.
In the long run, that could mean expanded local production, she added. Nuts About Granola has about 700 square feet of production space.
For now, she’s looking for other partners with capacity to fill large orders that might come from the West Coast.