Life is a Bowl of Cherries for Entrepreneur

By Steve Delmont, 31 December, 1994

Ray Pleva wants to prove that his healthy cherry-meat products-especially his 91 percent lean ground beef, Plevalean-can change the way people eat

by Larry Aylward, managing editor

The nasty, cold front whipping inland off Lake Michigan has brought rain, chill and dreariness to a Cedar, Mich., autumn morning. Waking up could stand as the most arduous task of the day.

But there is a content-looking Ray Pleva, seizing the day. The husky Pleva is stationed in front of his pint-sized retail meat shop, broom in hand, whisking away the waterlogged October leaves. He looks to be in mid-day form-and it's not even 8:30 a.m.

But when you're the talk-of-the-town, like Pleva, an early rise is a snap. The national spotlight is shining on Cedar, and it's all Pleva's doing.

The owner of Pleva's Meats is fresh off a television appearance on "The Oprah Winfrey Show," where he was invited to unveil his low-fat, low-cholesterol, cherry-blend Plevalean burgers to a national audience.

Pleva, 52, wants to convince consumers that his 17 cherry-meat products-especially the patent-pending, 91 percent lean Plevalean ground beef and ground sirloin-will change the way people eat.

"We can help a lot of people eat meat again," Pleva says. "We have people who come in and say they can't eat beef, but they can eat Plevalean."

Of the 17 products, which include a 3 percent fat cherry Canadian bacon, Italian cherry bratwurst and cherry pepperoni sticks, Plevalean is the most marketable.

In addition to lean ground beef and cherries, Plevalean also contains oat bran, spices and salt. It was named Michigan's new product of the year in 1993 by a committee commanded partly by the state's commerce and agricultural departments.

Pleva claims cherries accelerate the cooking process, replace the need for artificial preservatives, extend shelf life and help seal in moisture and flavor.

A 3-ounce cooked Plevalean burger has 160 calories (72 calories from fat, 36 from saturated fat). Total fat is 8 grams, with 4 grams of saturated fat. Cholesterol is 50 milligrams, protein is 17 grams and sodium is 250 milligrams.

A 3-ounce cooked regular ground beef burger has 245 calories and 18 grams of fat.

Pleva's products are well-known in upper Michigan's Cedar and nearby Traverse City. Thanks to stories in the Detroit newspapers, and other city and community dailies, as well several local television reports, people are paying heed to the products, especially Plevalean, throughout the state.

Pleva's products are held in high regard by the Michigan Department of Agriculture, which amended the food laws twice so Pleva could market meat products made with fruit.

Pleva even received a compliment from the ever-critical Center for Science in the Public Interest. Jayne Hurley, a CSPI senior nutritionist, calls Plevalean a godsend, when compared to regular ground beef.

"I'm completely behind any product that has at least half the fat of regular ground beef," Hurley says.

Cherry country

Cedar, population 125, welcomes visitors with a sign along the road that says, "Cedar: Home of the 1987 National Cherry Queen." The queen happens to be Cindy Pleva Weber, Ray's daughter.

Cherry production is big business in northern Michigan. Traverse City hails itself as the "Cherry Capital of the World."

The industry has slumped, however, not because of supply but because of overproduction, notes K. Terry Morrison, president of Cherry Growers Inc., a Traverse City fruit processor.

"When that happens, profits decline for the processor and the grower," he says.

The U.S. cherry industry processes between 250 million and 350 million pounds of cherries annually, according to Morrison.

"If a large meat company were to implement [Pleva's concept], it would be a big opportunity for the cherry industry to move a lot of product," Morrison says.

If a large company does go forward with the concept, the cherry industry-not to mention Ray Pleva-have Cindy to thank. It was her idea.

When Cindy was cherry queen, she attended an industry marketing meeting. The assembly revealed a troubled industry from an economic vantage point.

Cindy suggested to her father that he formulate a meat product that contained cherries to give the industry a boost. Ray took Cindy's peculiar notion and contrived a cherry-pecan pork sausage in 1988. It was named Michigan's new product of the year in 1989.

Soon, the media came knocking. CNN and several Michigan television stations did stories on Pleva.

Pleva decided to expand the product line, and developed Plevalean in 1991.

In late 1993, Pleva helped finance a Michigan State University study of Plevalean and other ground beef products. The results of the study showed Plevalean favorably over the other products, which included lean ground beef mixtures containing iota carrageenan and soy isolates.

A panel of 12 people taste-tested the ground beef products over a six-month period, judging tenderness, juiciness and flavor. Cooking yield and acidity were also studied.

Panelists rated Plevalean more tender, juicier and flavorful, according to Alden Booren, a Michigan State professor of food science who headed the study. The study did not reveal that Plevalean burgers cook faster, as claimed by Pleva.

Plevalean also had a longer shelf life after refrigeration and freezing when compared to the other products. Panelists favored Plevalean burgers over others when reheated.

Booren says the findings were dramatic. "We are interested in the flavor aspect and what we call an antioxidant effect in cherries," he adds. "We are very interested in the product from a scientific basis. The next step is: Does this apply to other products?"

McPlevalean?

Pleva believes his Plevalean burgers would sell well at McDonald's, adding they would be more popular than the chain's McLean Deluxe.

"[Plevalean burgers] would not replace McDonald's regular burgers," Pleva says. "But they would satisfy customers who want a more healthy burger than a Big Mac."

Pleva sent a sample of Plevalean to Jerry Kolschowski, chairman of Otto & Sons, a top supplier of ground beef to McDonald's Corp. Pleva says Kolschowski expressed concern whether there would be enough cherries to meet the chain's demand to market Plevalean.

"Kolschowski said if McDonald's decided to [produce Plevalean], it would need 53 million pounds of cherries," Pleva says. "[In October, the industry] had 88 million pounds of cherries in surplus."

Kolschowski would not comment on the future of Plevalean when contacted by Meat Marketing & Technology.

Pleva is working with Roy Carroll, general manager of two Traverse City McDonald's outlets, to help push the product. Carroll says he wouldn't be surprised if Plevalean became a hit nationally, but he adds that McDonald's Corp. currently has no interest in it.

Less filling, tastes great

In about 30 minutes, three customers have trekked to Pleva's Meats to purchase Plevalean.

One customer, Jackie Bayne, buys Plevalean because "it is low in fat and tastes good."

"My husband, Johnny, won't eat anything that is low in fat, but he'll eat Plevalean," Bayne says.

Plevalean burgers have become fixtures on the menus of two Traverse City Elias Brothers Big Boy Restaurants.

"Some people come in just for the Plevalean," says Vicky Smith, manager of the downtown Traverse City eatery.

The product is also served in the Traverse City public schools. Theresa Benedick, foodservice coordinator for the school system, says Plevalean's taste and healthy attributes impress her.

Students also enjoy the product for the same reasons, she adds.

In time, Plevalean will be served as part of school lunch programs throughout the nation, Benedick predicts.

Others are not so sure Plevalean will succeed on a national level. George Wilson, executive director for the Michigan Meat Packers Association, says Plevalean will satisfy the low-fat product niche market, but he doesn't expect it to be a national success.

C. Richard Johnston, managing director for the Cherry Marketing Institute, says he is surprised Pleva's business is not doing better.

"He has worked hard at [promoting his business] and has received a lot of publicity," Johnston adds.

Pleva is recognized as a top marketer for the cherry industry. In an editorial, the Traverse City Record-Eagle said Pleva "has done more to put out the word about cherries to the general public than anyone in recent memory."

Johnston begs to differ. In a published response to the paper, he wrote: "Ray Pleva is certainly very effective in giving himself a great boost. As to giving the [cherry] industry a boost, that is highly debatable."

In an interview with MM&T, Johnson backed down somewhat from his statement, saying Pleva has been very innovative. "If a guy is going to make it, he has to promote himself," Johnston says. "We wish Pleva every possible success."

But Johnston declined comment when asked if he thought Plevalean could be a national success. However, he adds, "It would be a real bonanza for [the cherry industry] if we could get that done, even if it lasted only for awhile."

Johnston claims Pleva has spent only $700 of a $5,000 grant issued to him by the Cherry Marketing Institute in 1993 to support cents-off coupons for Plevalean. "[This reflects] what would appear to be very slow retail sales for this product," Johnston said in his newspaper response.

Pleva disputes Johnston's claims, saying he was advised by business consultants to concentrate on selling Plevalean in the foodservice arena. Plevalean is sold at more than 40 food establishments, and the number is increasing rapidly.

"Coupons do not help in foodservice," Pleva adds. "We are working slowly in retail, and that is where the coupons come in."

Plevalean is sold at more than 30 retail establishments.

Pleva claims the Cherry Marketing Institute didn't want him to use the grant for research "because it would help an individual make a nickel." Pleva says he has invested more than $250,000 of his own money into his business.

Business on upswing

Pleva claims that his business is growing daily. In late November, he estimated his retail shop manufactured about 500 pounds of Plevalean a week. Ada, Mich.-based Ada Beef, Pleva's co-packer, produces almost 6,000 pounds a week, a figure that is quickly rising.

"We have, and we will, change the way people eat," Pleva states.

Jack Riley, head of Kansas State University's animal science department, says Pleva faces an uphill battle if he wants to promote Plevalean nationally. Riley suggests Pleva first establish a regional base.

"If you try to go national before you can handle business on a regional level, you are probably going to get in trouble," Riley says.

Riley adds that Pleva has been criticized in some circles for being too aggressive. Pleva's products have also been labeled gimmick-oriented, according to Riley.

"But gimmick doesn't downgrade the product," Riley adds. "It's a good product. Pleva has a concept that people can't shoot holes in."

What will Pleva do if he hits the jackpot? What if a major processor calls, offers Pleva an astronomical salary for the rights to Plevalean and asks him to oversee production of the product?

"I will only work as a consultant," Pleva says, adding that he will also only work with a company that manufactures his product his way.

From the doors of his retail shop, Pleva can see the house he grew up in and the home he now lives in. Tiny Cedar fosters up many memories of working in his father's general's store and the family's two cherry orchards.

Pleva says he will never leave picturesque Cedar, not for all the money in the world. Nor will he abandon the work ethic his father, Joseph, instilled in him at an early age.

"My father was working when he was 90 years old," Pleva says. "He set the pace for me and my family to get up in the morning and get something accomplished. My goal is to help as many people as I can enjoy better food products."

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