Founded in Wisconsin - Huntsinger Farms/Silver Spring Foods, Eau Claire, Wisconsin

greenwoodphilip
Jul 1
12 min read

Central Wisconsin is one of the world's largest sources of horseradish. This resilient root vegetable, known for its sharp flavor, holds a unique position in the global condiment and enzyme industries. Its commercial development, particularly in the United States, mirrors broader themes of agricultural innovation, vertical integration, and strategic brand management. Silver Spring Foods, founded in 1929, exemplifies this progression. As the world's largest grower and processor of horseradish, the company serves as a compelling case study in scaling a family enterprise, achieving competitive differentiation, and adopting adaptive strategies in a mature yet evolving market. This analysis examines the historical significance of horseradish, the operational and strategic development of Silver Spring Foods, and the broader industry dynamics influencing its growth and resilience.

What is Horse Radish?

Horseradish (Armoracia rusticana), a perennial root vegetable belonging to the Brassicaceae family, is renowned for its pungent and spicy flavor, which is activated when the root is grated or crushed. Unlike chili peppers, its heat is derived from allyl isothiocyanate. Horseradish is commonly utilized in sauces, condiments, and traditional cuisines, and is available in fresh, prepared, or powdered forms. Originally native to southeastern Europe and western Asia, it was introduced to the United States by European immigrants during the 18th and 19th centuries. Initially cultivated by settlers for its medicinal properties, horseradish flourished in cool climates and fertile soils, particularly in regions such as Collinsville, Illinois, Eau Claire, Wisconsin, and California's Central Valley. By the late 1800s, it evolved into a crop for specialized farming and commercial bottling.

Huntsinger Farms and Silver Spring Foods - A Timeline

Ellis Huntsinger began cultivating horseradish in 1929, expanding his farm, Silver Spring Gardens, by 1937 with mechanization. In 1941, he innovatively used dairy cream to preserve horseradish flavor. The company incorporated in 1950, and by 1952, it collaborated with universities on horseradish strains. Despite a 1953 drought, the farm expanded, stabilizing prices, and by 1955, it had 1,500 acres under production with notable revenue. Gene Heintz became farm manager in 1960, leading to new product introductions like Bavarian Mustard in 1989. The acquisition of Bookbinder’s food division in 1999 marked diversification. After losing a major client in 2003, Silver Spring automated and diversified, acquiring brands and building a new facility by 2006. Success followed with awards, such as the 2008 Grand Champion for Deli Style Mustard, and the acquisition of Kelchner’s Horseradish in 2009.

Throughout the 2010s, Silver Spring expanded its products and distribution, earning accolades and opening new facilities. Key developments included Ellis Huntsinger's Business Hall of Fame induction in 2012, the launch of Sriracha sauce in 2014, and innovative products like Applewood Smoke Flavored Horseradish in 2017. In 2020, acquiring Brede Foods boosted root supply and retail outlets, alongside solar panel installations. Hosting Wisconsin Farm Technology Days in 2021 and launching a Non-GMO horseradish line in 2022 garnered competition medals. New product lines, including Signature Sauces and Dill Pickle Mustard, were introduced in 2024 and 2025, reflecting ongoing innovation and consumer responsiveness.

Leadership at Silver Spring Foods - Multi-generational

Ellis Huntsinger transitioned from being a lightning-rod salesman to farming in 1929, beginning with half an acre of horseradish, which he sold door-to-door during the Great Depression. Huntsinger Farms, established in 1929 near Eau Claire, Wisconsin, leveraged the region's favorable conditions to cultivate horseradish. As demand grew, Ellis expanded his operations and founded Silver Spring Gardens in 1937. In 1941, he revolutionized the industry by incorporating dairy cream into horseradish, enhancing both its flavor and shelf life. His innovative principle, "You have to keep horseradish cold to keep it hot," and the acquisition of Becky's Gardens, later renamed Silver Spring Gardens, marked his shift towards mechanized farming. By 1950, Silver Spring Gardens, incorporated with his son and son-in-law, collaborated with universities to enhance horseradish strains. Ellis's vertical integration from farming to sales established a strong family business, with his legacy of innovation and quality upheld by his descendants, positioning Silver Spring Foods as a global leader in horseradish production.

Gene Heintz, born in Eau Claire County in the late 1930s, embarked on his agricultural career by working on local farms. In 1960, at approximately 22 years of age, he assumed the role of farm manager at Huntsinger Farms, initiating a distinguished 55-year career, the longest in the history of Silver Spring Foods. His leadership spanned significant periods of growth, transitioning from traditional farming methods to modern agricultural technology, and notably expanding the production of horseradish and dill. Under his stewardship, Huntsinger Farms implemented innovative planting practices, establishing itself as the world's largest grower and processor of horseradish. Gene's profound understanding of Wisconsin's climate and soil was instrumental in the company's success, effectively bridging its founding principles with a modern corporate framework. His unwavering dedication and expertise have left an enduring legacy on the agricultural accomplishments of Silver Spring Foods.

Eugene “Gene” Huntsinger, the son of Ellis Huntsinger, played a pivotal role in transforming the family farm into Silver Spring Gardens. Born around 1915 in Eau Claire County, Eugene collaborated with his father and brother-in-law, Ed Bartusch, in 1950 to incorporate the farm. He spearheaded the farm's expansion by acquiring an additional 1,000 acres during the 1953 drought, which helped stabilize prices and increase market share. Eugene advanced horseradish farming through mechanization and research partnerships, enhancing crop strains and yields. His strategic initiatives transformed the family business into a competitive agribusiness, securing Silver Spring's market position.

Ed Bartusch, in his role as President, led the company until 1972, ensuring its growth and stability. His efforts laid the foundation for Silver Spring's enduring structure, facilitating its expansion under Nancy's leadership. As President of Silver Spring Foods, Ed Bartusch spearheaded significant growth from the 1960s. An incorporator and co-owner since 1950, he was married to Betty, the daughter of Ellis Huntsinger. In a tragic event, Ed, Betty, and their daughter Barbara perished in a plane crash in December 1972. Subsequently, their daughter Nancy Bartusch, at the age of 22, inherited the business and assumed the role of CEO, succeeding Ed's era of consolidation and growth.

Nancy Bartusch has been an instrumental leader at Silver Spring Foods and Huntsinger Farms, steering these family enterprises through decades of growth and innovation. Born around 1950, she encountered a personal tragedy at the age of 22 when her family perished in a plane crash, leaving her responsible for managing the company. She recruited Bill Nelson Sr. from Kraft Foods to stabilize operations and has held the positions of Chairwoman and CEO since 1972. Under her guidance, the company has expanded significantly, constructing a 100,000-square-foot plant and acquiring brands such as Bookbinder’s, Kelchner’s, and Brede Foods. Silver Spring has become the largest horseradish processor globally, producing over 100 million pounds of condiments annually. The company has received numerous accolades, including the Grand Champion title at the World-Wide Mustard Competition and the Wisconsin Small Business of the Year award. Nancy's leadership style is characterized by resilience and collaboration, working closely with her son, Eric Rygg, to ensure a seamless transition and the continuation of the family legacy. Her strategic vision has anchored the company through modernization and market expansion, sustaining its status as a leading brand in the industry.

Bill Nelson Sr. served as President of Silver Spring Foods during the early to mid-1970s. He was recruited from Kraft Foods to lead the company through a period of transition following Nancy Bartusch's acquisition of ownership. As an experienced executive and trusted family friend, Nelson was appointed after the unfortunate passing of Bartusch's parents. He ensured stability, maintained seamless operations, and introduced corporate management practices to professionalize the company. Nelson also prioritized mentoring future leaders, preparing his son, Bill Nelson Jr., to succeed him. This succession initiated a stable executive era that lasted over two decades. Under Nelson's leadership, the company preserved its family heritage while modernizing its operations, facilitating Silver Spring's transformation into a modern food business.

Bill Nelson Jr. served as President of Silver Spring Foods for approximately 25 years, following in the footsteps of his father, Bill Nelson Sr., in the late 1970s. Under his leadership, the company experienced substantial growth and diversification, expanding beyond its core horseradish products into specialty mustards, sauces, and seafood condiments. Noteworthy acquisitions during his tenure included Bookbinder’s in 1999 and Kelchner’s Horseradish in 2009, which strengthened Silver Spring's market presence. Nelson Jr. successfully navigated the company through a major crisis in 2003, when the loss of a key client led to a 30% revenue decline. He played a pivotal role in the construction of a 100,000 ft² automated plant in 2006, which doubled production capacity and facilitated the expansion of private-label and organic product lines. His strategic shift towards private-label manufacturing and product diversification reduced the company's dependence on a few major clients. Additionally, he led Silver Spring into the organic and non-GMO markets, aligning with consumer trends. Nelson Jr.'s tenure was marked by a stable executive period, with leadership transitioning to Mike Walsh around 2009 and later to Eric Rygg in 2018. He skillfully balanced family ownership with professional management, ensuring business continuity and preserving the company's culture.

Edward Schaefer served as CEO and President of Silver Spring Foods and Huntsinger Farms from 2002-2003 until September 2009. He officially resigned on September 11, 2009, after approximately seven years, transitioning with Mike Walsh through October 2009. During his tenure, Schaefer led the construction of a 150,000 ft² state-of-the-art plant to modernize production processes. He managed significant acquisitions, including Thor-Shackel Horseradish Company in 2005 and Kelchner’s Horseradish Products in 2009, thereby expanding the company’s product lines and distribution. Schaefer also introduced new product categories and broadened various sales channels, increasing the workforce from around 120 to over 250 employees. His leadership enhanced production efficiency and scale, establishing a foundation for future growth. After leaving Silver Spring, Schaefer led Citizens Community Federal NA and later became CEO of First Federal Bank of Wisconsin. His leadership transformed Silver Spring Foods into a national condiment manufacturer, leaving a legacy of modern infrastructure and strategic growth.

Mike Walsh served as President and CEO of Silver Spring Foods from 2009 to 2013, a critical period following a substantial revenue decline in 2003. Appointed by Nancy Bartusch, Walsh, an experienced business consultant, succeeded longtime President Ed Schaefer. During his leadership, he preserved the company's employee-centered culture and prioritized operational discipline, enhancing efficiencies and investing in strategic automation. Walsh also diversified the brand by expanding into private-label manufacturing, organic products, and new condiment formats. His leadership ensured stability and prepared the company for future growth, ultimately facilitating a smooth transition to family-aligned management, which led to Eric Rygg's presidency in 2018. Walsh's legacy includes fostering resilience and strategic expansion, ensuring a seamless transition to long-term executives.

Eric Rygg is the President of Silver Spring Foods and Huntsinger Farms. Prior to this role, he served as Vice President of Sales & Marketing from 2015 to 2018. As the great-grandson of the founder, Ellis, and the son of Nancy, who continues to serve as CEO and board chair, Eric oversees daily operations and strategic growth initiatives. Silver Spring Foods boasts a strong legacy of innovation and expansion, marked by the introduction of Bavarian Mustard in 1989 and the acquisition of Bookbinder’s food division in 1999. The company has navigated challenges, such as a 30% revenue decline in 2003, and has expanded its product lines and facilities, including acquiring Kelchner’s Horseradish in 2009 and launching new products like Whole Grain Mustard in 2010. The company has earned accolades, such as the Grand Champion award for Deli Style Mustard in 2008 and being recognized as Eau Claire’s Small Business of the Year in 2010. Recent advancements include the acquisition of Brede Foods in 2020, the launch of a Non-GMO certified line in 2022, and plans to introduce Signature Sauces in 2024–2025. Additionally, the company is dedicated to sustainability, having implemented solar arrays to reduce energy consumption.

The Horseradish and Condiment Industry

The U.S. horseradish market is marked by intense competition, especially in the condiment and enzyme sectors. New entrants face moderate barriers due to significant capital and regulatory demands, though private-label options offer low-cost entry points. Supplier power ranges from moderate to high, driven by the critical role of agribusiness inputs and enzyme-grade roots. Buyer power is strong, with key retail and biotech players exerting considerable influence. Substitutes pose moderate to high pressure, with alternative spices, enzymes, and condiments presenting challenges. The market is moderately to highly competitive, characterized by battles over supply chain control, product innovation, and multi-channel branding.

The condiment market is stable but pressured by health trends, plant-based alternatives, and price competition. The enzyme sector is rapidly growing, fueled by diagnostics, biotech R&D, and food industry applications. U.S. horseradish farming is concentrated in states like Wisconsin, Illinois, and California, facing structural challenges due to limited acreage and agronomic expertise. Silver Spring Foods competes with major brands in prepared horseradish, mustards, and specialty condiments. Gold's, a historic New York brand, is known for horseradish and kosher products, now part of Kelchner's/Silver Spring but retaining strong brand loyalty. Beaver Brand, from Oregon, is recognized for premium condiments in the Pacific Northwest. French’s dominates the yellow mustard market but is less competitive in horseradish. Koops’ Mustard, specializing in stone-ground and deli mustards, focuses on private-label supply in the Midwest. Annie’s targets health-conscious consumers with organic mustards. Major retailers like Walmart and Costco pose a challenge to Silver Spring with cheaper private-label alternatives. In the enzyme sector, Sigma-Aldrich and Thermo Fisher are leaders in horseradish peroxidase applications, emphasizing quality and regulatory compliance.

Due to the competitive nature of the condiment industry, certain strategies are essential for firms aiming to enhance their competitive advantage amidst retail pressures:

Brand differentiation and innovation (such as signature sauces, aiolis, and unique packaging) are crucial to addressing retail challenges.
Vertical integration and a stable supply chain provide companies like Silver Spring with a competitive advantage and mitigate supplier influence.
High enzyme product quality and regulatory compliance are vital for LP-based diagnostics and securing biotech contracts.
Private-label and B2B channels (including food service and biotech companies) present growth opportunities if margins and volumes can be effectively negotiated.

Silver Spring's Strategy using The Strategy Diamond Framework

Utilizing the Hambrick & Fredrickson Strategy Diamond model, Silver Spring can be effectively summarized through the framework's five core elements: Arenas, Vehicles, Differentiators, Staging, and Economic Logic.

Arenas Silver Spring operates in product categories such as prepared horseradish, mustards, specialty sauces, seafood condiments, and enzyme-grade horseradish. They serve retail, foodservice, and industrial enzyme users, primarily in the U.S., with some international presence. The company is fully vertically integrated, from cultivation to distribution.
Vehicles The company grows organically through product development and expanding production capabilities, while also acquiring companies like Bookbinder’s, Kelchner’s, and Brede Foods. Silver Spring forms strategic alliances, including partnerships with universities and private-label collaborations with major grocery chains.
Differentiation Silver Spring differentiates itself through product authenticity, vertical integration, innovation, sustainability, and its reputation as the largest horseradish grower and processor.
Staging Their strategic initiatives are executed in a deliberate sequence, from early innovations in the 1930s to recent acquisitions and sustainability efforts in the 2020s.
Economic Logic Silver Spring capitalizes on scale efficiencies, brand premiums, private-label profitability, agricultural cost advantages, and diversified margins to generate revenue, balancing high-margin branded products with stable industrial sales.

Silver Spring - the Results and the Future

Silver Spring Foods, a prominent producer of horseradish, projects annual revenues between $50 million and $100 million, with a target of $75 million by mid-2025. The company has experienced substantial growth since 2011, when revenues reached $50 million, up from $40 million in 2009. Despite a 30% decline in revenue in 2003, strategic investments in automation and expansion have driven growth. Headquartered in Eau Claire, the company employs between 250 and 260 individuals and boasts a production capacity exceeding 100 million pounds of condiments annually. In 2011, the workforce surpassed 165 employees. Huntsinger Farms cultivates horseradish on 700 to 900 acres, yielding approximately 8 million pounds of root. A 100,000 square foot facility, constructed in 2006, doubled the production capacity. In 2020, Silver Spring acquired Brede Foods, enhancing the horseradish supply by nearly 1 million pounds and expanding distribution to over 1,000 new retail outlets. A solar array installed in the same year supplies 18% of the company's energy needs. During the COVID-19 pandemic, online sales increased by 123%, with overall retail sales rising by 12.5%. Silver Spring leads the U.S. market in prepared horseradish sales, with 50% of sales deriving from branded products such as Silver Spring, Kelchner, and Bookbinder’s, and the remainder from private-label and industrial sales. The product line includes horseradish, specialty mustards, sauces, aiolis, dressings, marinades, and seafood condiments.

Silver Spring Foods: Community Engagement and Economic Growth in Eau Claire

Silver Spring Foods is actively engaged in the Eau Claire, Wisconsin community through a variety of initiatives including philanthropy, educational partnerships, events, and local economic activities. They provide a donation program for local nonprofits, schools, and events, and organize community fundraising events such as the annual "Mustard Night" at Carson Park, benefiting local charities like the Feed My People Food Bank. Their collaboration with UW–Eau Claire involves hiring interns and alumni, as well as hosting research projects. They also work with Chippewa Valley Technical College, notably in culinary competitions. Silver Spring supports local events such as Farm Technology Days by offering educational programs and tours. As a significant employer with approximately 250–260 employees, they contribute to the local economy. Senior leaders participate in local boards, enhancing civic engagement. The Zing Masters team interacts with the public through taste tests and food science demonstrations. Their sustainability programs focus on responsible farming practices, promoting community education on environmental stewardship.

Closing

Silver Spring Foods stands as a powerful example of how strategic foresight, family-driven leadership, and operational excellence can transform a niche agricultural product into a nationally recognized, vertically integrated enterprise. By balancing tradition with innovation—whether through pioneering sustainability initiatives, expanding into enzyme applications, or investing in premium private-label and branded products—the company has secured a resilient position in a competitive global market. Its evolution reflects not only the potential of regional agribusiness to scale successfully but also the importance of adaptive strategy in mature industries. As Silver Spring continues to invest in technology, product development, and community engagement, it offers a compelling model for long-term value creation in the food manufacturing sector.

Citations

Founded in Wisconsin - Huntsinger Farms/Silver Spring Foods, Eau Claire, Wisconsin

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