In the early 1960s, Wallace's grandfather, Bob Dunstan, helped save the American chestnut tree from extinction. A fungus had ravaged an estimated 9 million acres of chestnut trees over a 40-year period, but Dunstan helped develop a resistant hybrid. Chestnut Hill Nursery in Alachua now sits on the land where Dunstan grew his first trees. Bob Wallace carries on the tradition, the third generation in the chestnut business. His father, Alvin Wallace, was a plant geneticist at the University of Florida.
A major factor in the nursery's success has been its ability to diversify and to develop new plant varieties. The nursery holds patents on varieties of apple and peach trees, for example. And in 1986, Chestnut Hill began offering a sweet fruit called the persimmon after a Japanese graduate student of Alvin's sent him several persimmon varieties. The fruit is as popular in Japan as apples are in this country, and given the Asian population in northern Florida, the Wallaces saw potential demand. Persimmons continue to be one of Chestnut Hill's big moneymakers.
Four years ago, Bob and his wife, Debbie, who co-own Chestnut Hill, hired Carl Sherman, a former stockbroker with a finance degree from the University of Florida, to help manage the business. Sherman, whose family had operated nurseries, combined his financial training with a love for horticulture. In 1997, the Wallaces recognized his contribution to the business by giving him a 20% stake. "This is like farming, but it's high-tech, and you can make a lot of money at it," says Sherman.
In recent years, Chestnut Hill's sales have grown 35% annually. The nursery vaulted from $500,000 in sales in 1995 to $1.5 million in 1998, in large part due to a decision in 1995 to stop selling to individuals and to focus on wholesale customers in the Southeastern U.S., such as Wal-Mart, Scotty's, Lowe's and Home Depot.
Chestnut Hill continues to diversify, looking for new markets and breeding new products. About 20 of the 60 acres at Chestnut Hill are used solely for research and development. "We are always looking for new varieties," says Bob. "That's what keeps us up front."
Bob Wallace says it's too soon to know whether his two sons, Ian, 7 years old, and Dunstan, 9, will carry on the business. His focus is on the near term. "Our five-year goal is to continue to introduce new varieties of fruit and flowering trees," he says. "What we're doing is going well, so we've got no reason to change."
SMALL TALK
Cutting Edge
Edward Iacobucci, founder of Miami's Citrix Systems, was named Ernst & Young 1998 National Entrepreneur of the Year. Citrix, which posted revenues of $123.9 million in 1997, developed a "thin-client/server" software that allows desktop computers to run Windows applications off a central server. The Entrepreneur of the Year awards are sponsored by Ernst & Young, USA Today, the Nasdaq Stock Market and the Center for Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation.
Networking, etc.
National Small Business United, the nation's oldest bipartisan small business advocacy organization, will hold its 1999 Small Business Congress in Orlando on February 4-6. Small business attendees will be able to participate in working groups that focus on five key issues: taxation, economic development, health & human resources, environment & regulatory affairs, and information & technology. To register ($325 per person), call 800/345-6728 or check the organization's Web site (www.nsbu.org/thecongress).
New Health Options
The National Federation of Independent Business has launched a new health insurance program, NFIB HealthBenefits, that offers a range of coverage from traditional health insurance to managed care. The plan is available to businesses with up to 99 employees, including sole proprietors. A vision/dental insurance option and a tax-favored Section 125 "cafeteria" program also are available. "With NFIB HealthBenefits, we have selected plans offering the choice, pricing, coverage and options that small firms have told us they want and need," says Bill Herrle, NFIB's Florida director.