Phillips Foods Takes Place
As World Leader in Crab Industry
Phillips Makes $20 Million Investment In Baltimore Plant

By Michael Birchenall

We've got a secret in our region and the word's finally starting to emerge, and yes, it's good news. Say Phillips Foods and most will immediately think of crab houses, crab cakes and busy seafood buffets. Think again: how about the producer of the number-one selling frozen seafood product in Mid-Atlantic retail stores. That's Phillips and their "Signature Crab Cakes" people are just starting to hear that about this not so "sleepy" company that has been on target with a series of impressive accomplishments since 1990.

In a period of unprecedented growth and expansion, Phillips is now an international seafood company with processing plants in Asia (Indonesia, Philippines and Thailand), South America (to Ecuador as of 2000) and of course the original Hoopers Island, Md. which opened around 1916. Sales in 2001 topped $131 million. On the Net A visit to the Phillips Food Web site www.phillipsfoods.com will find the revelation that they have been on the "net" for nearly a hundred years, fishing nets and crab pots are part of the Phillips tradition. Steve Phillips' parents Shirley and Brice probably didn't envision the crab shack growing into six restaurants, worldwide seafood plants and the Internet presence. Could they have imagined their Phillips retail products being sold at over 10,000 stores in the U.S. In the Baltimore/ Washington, DC area, the retail crab cakes are now number 17 in sales in the frozen food section, moving up to join perennial front-runners such as Stouffers and Breyers Ice Cream.

A FAMILY HISTORY
The Phillips family came to Ocean City in 1956, when the small resort town would open on Memorial Day and shut down for the winter Labor Day. From the dreamed of leisurely days for the family (including sons Jeffrey and Stephen) on the beach with the kids, the second season found the parents with a dining room and the grandmothers, Miss Leone and Miss Lillie, as the original "Phillips Girls." The boys would help Dad steam the crabs, or taste their Mom's new recipes. We are very passionate about our product says Mark Sneed, president.

In 1973, they opened their second location in Ocean City with Phillips By-The-Sea. On July 1, 1977, Phillips opened the doors to Phillips Seafood House at 141st Street. Phillips held the grand opening of Phillips Harborplace on July 2, 1980, where it serves seafood in the Phillips tradition, making it available year-round. Phillips expansion was timed with the revitalization of downtown Baltimore City. In December of 1985, they opened Phillips Flagship, located on the Washington waterfront, serving people living in and visiting Washington, DC. In 1994, Phillips embarked on a plan for future growth; expansion plans centered on new restaurants in cities where Phillips has high name recognition. With the newest location in Annapolis, the restaurant decor had taken a turn towards smaller, 300-seat establishments and exhibition-style kitchens. Looking back on the first season at Ocean City Brice Phillips said, "We just wanted to sell off some of the crabs from our packing house on Hoopers Island."

From the four-seat crab stand he and Shirley opened with $2,000, Phillips Seafood Restaurants, a privately held company, is among the largest-grossing family restaurant groups in the country (12th). The Phillips family has actually been in the seafood business for more than four generations. Around the turn of the century, Stephen Phillips great-grandfather opened AE Phillips & Sons, a crab processing plant on Maryland's Chesapeake Bay. To this day, beginning in the spring and operating through late fall, fresh crab meat is hand-picked at the facility for use in Phillips Seafood Restaurants and for sale in local markets.

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