Fanestil Meats Accelerates Growth, Promoting 'Made in Kansas'
It’s not often that you hear about a thriving manufacturer that continues to grow in its 80th year after suffering multiple flood disasters, but Fanestil Meats of Emporia has survived setbacks and is now thriving. The company’s most recognizable product is their Party Time Ham but they also make millions of ‘hot dogs on a stick’, a product very popular at fairs. Fanestil Meats distributes their smokehouse meat products throughout the country and as far away as Canada, Singapore and China.
Fanestil Meats, a value-added meat processing facility, distributor, and retail establishment, has started construction of its much-anticipated “Phase 2” expansion. The new facility is located adjacent to the cold storage warehouse, retail store and administrative offices that were constructed in 2015 in Emporia, Kansas.
The new 40,000 square foot meat processing facility will replace the original Fanestil Meats’ processing plant located in a flood plain. According to Dan Smoots, flooding impacted the facility 32-times over the last 25-years, the two worst floods occurring in 1952 and in 1998. For the last six years, the Smoots pursued a FEMA grant to help finance the relocation of its meat processing plant. “We qualified for the grant, but it was fumbled during the process,” said Smoots. Then in 2018, Senator Moran offered a member of his staff to help the Smoots with the federal grant process. The grant required an environmental study on the new property. When an initial soil sample tested positive for a small amount of oil, a more thorough environmental test proved the property had no contaminant levels above the legal limits and gave the green light for the project.
The Smoots were awarded the FEMA grant and they provided the required 25% in matching funds. “The FEMA grant should cover the demolition of the old meat processing facility in 2023 and return the old property back to a green space,” said Smoots.
The Smoots broke-ground on the construction of the new facility in October 2021 after obtaining SBA 7(a) and 504 loan financing. Dan Smoots complimented the assistance received through Wayne Symmonds, President and CEO of Frontier Financial Partners of Emporia, KS. and Gregg Conklin of RCB Bank in Winfield, KS.
Dan Smoots started working in the meat processing industry at Iowa Beef Processors (IBP) in Emporia, while studying education at Emporia State University. “Back in 1972, I also helped the previous owner of Fanestil Meats with his human resources needs on a part time basis for 13 years,” said Smoots. It was that working relationship that led the previous owner to call Dan in 1996 for help selling Fanestil Meats. During that time, the Smoots and a business partner became interested in the opportunity to buy the company themselves and sought a financing deal. “My lender recommended I use the SBA loan program, and it was approved,” said Smoots.
The Smoots and their partner bought Fanestil Meats in October 1997. In November 1998 the facility was damaged by another high flood. “The water was so high that [their partner] was rescued shivering in his truck the next morning when we could get out there in a boat,” said Smoots. It was a devastating blow, but they persevered. Thanks to higher pork prices later that year, Fanestil Meats turned the corner into a more profitable business and have been growing ever since.
Dan and Janeice ended up purchasing their business partner’s interest in the company in 2005 to become the sole owners of Fanestil Meats.
When the COVID pandemic started, all the state fairs and festivals were cancelled, halting the sales of one of Fanestil Meats’ significant products: hot dogs on-a-stick. The pandemic also impacted larger meat producers and distributors that provided Fanestil de-boned pork and chicken. “I brought our team together and gave them a choice,” said Dan, “We either change the way we process our meats or go home.” The team chose to pivot and began processing the raw pork and chicken they could procure and de-boned the meats themselves.
The gamble paid-off and Fanestil Meats was able to process more fresh-product than ever before to satisfy the regional grocery demand for hamburger meat and other products. “For a while there, Fanestil was known as the ‘hamburger supply’ in the marketplace. We sold about 300-400 cases a week and often sold-out due to demand,” said Smoots.
The SBA’s Paycheck Protection Program (PPP) funding also helped keep the company’s 100 employees paid during the turbulent year. “The PPP funding allowed us to maintain our staff, invest in the training to change our operation, and pay for sick leave if an employee was impacted,” said Smoots.
Both native Kansans from the same town of McLouth, the couple recently celebrated 26 years of marriage and are entering their 25th year of owning Fanestil Meats. Dan and Janeice Smoots consider persistence and attention to the little details two important qualities of a successful small business owner.
“We make a great team, Jan and I. Our skills and strengths complement each other,” said Dan Smoots. Jan has extensive experience in the agriculture sector and worked 22 years for an agricultural business that focused on fertilizer, seed and feed markets. Currently, Jan manages the marketing, food safety, sanitation, and the complex regulatory audits, along with other responsibilities to keep the business running smoothly.
Dan and Jan know their business inside and out, and now enjoy seeing their two sons, Joe and Nate, take a larger role in managing the business. Joe Smoots has worked at the company for 11 years and manages meat processing production and product development. Nate Smoots has worked there 6 years and now manages the cold storage warehouse, logistics, inventory and sales for the company.
When asked what advice they would give to someone thinking of starting a business, Dan and Jan said that running a business is not for the faint hearted. “Business is hard, and you have to pay attention to the details. It takes persistence to get through the hard times and being on-call 24/7. Entrepreneurs need to thoroughly understand the business sector they are in and surround themselves with mentors and a dedicated team of skilled employees. When you become successful at managing your business, you’ll feel a real rush when things take-off,” said Dan.
Dan and Jan Smoots consider community an extension of the family and their contributions to the community have been notable. “We are really happy with our business here in Emporia, and we greatly appreciate our customers, vendors and employees,” said Dan. The Smoots regularly donate food and funds to nonprofit organizations like Harvest House, the Rescue Mission and our local schools. “We donate the sausage for the Kiwanis Club’s annual pancake feed event, for example,” said Jan. The Smoots also developed a partnership a long time ago with Brown Shoe store in Emporia to donate shoes every year to women at the Shiloh House women’s shelter and the Emporia Rescue Mission men’s shelter.