Food Drink and Franchise - October 2014

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O c tobe r 2014

Get a Slice of Expansion Growing your business without over extending your brand

Cargill Faces the Perils of Regional Risk

Fair Trade Making a Difference Through Fair Trade

Tesco Tackles its Product Waste Problem

editor’s comment

Taking Charge Making a decision can be a source of anxiety, even for a top executive – is the decision you’ve made truly the best choice for the company? Is it the choice that will allow your business the most support and room to grow?

This month we’re looking at decisions that can benefit your business, from making the decision to expand your franchise overseas to deciding what to do when one of your production facilities is in a region undergoing political conflict. These decisions can be complex, and there is often no easy solution except to examine the facts and do what’s best for your business. But when you do that, it can make all the difference.

So read on, enjoy, and consider your own confidence to do what’s best for the business.

Sasha Orman Editor Sasha.Orman@wdmgroup.com 3

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CONTENTS

Features

8

Production How Can Your Business Guard Against Risk During Conflict?

30 Supply Chain Fair Trade practice in the Supply Chain

22

TOP 10

Wine producing countries in 2014

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14

Franchising Regional to Global: Making the Leap to International Expansion

Retail Tesco Tackles Food Waste: One Year Later 5

CONTENTS

74 Corporación

52

92

Company Profiles

Harry Ramsden’s

San Diego

62 Kekén The Pancake Parlour

AFRICA 52 Harry Ramsden’s

LATIN AMERICA 62 Kekén

84

Houston Canada Inc.

74 Corporación San Diego

ABIEC: Brazilian Beef Exporters Association

106

CANADA 84 Houston Canada Inc.

AUSTRALIA 92 The Pancake Parlour 100 Association: GermanAustralian Chamber of Industry and Commerce

100 Association: German-Australian Chamber of Industry & Commerce

BRASIL 106 Friato 118 Frigorífico Silva 130 Association: ABIEC 7

P ROD U C T ION

How Can Your Business Guard Against Risk During Conflict?

What can we learn from Cargill’s disasters this summer about risk management?

Written by: Sasha Orman

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P ROD U C T ION With more than $136.7 billion in sales and revenue over the 2013 fiscal year and facilities in 67 countries around the world, it’s undisputed that Cargill is one of the biggest agricultural and food processing companies in the world. But just because you’re big does not mean that you’re completely immune to disaster. There are some things that no one can fully plan for, but that can seriously affect your business.

One of those things is having a production facility in a region that has ended up being at the center of a political conflict marked by increasing violence. When you’ve been in business for over a century and are operating in 67 countries, to have at least one of those countries fall into conflict at one time or another is practically assured.

Cargill experienced that firsthand this summer, as tensions have escalated in Eastern Ukraine. In midJuly, its sunflower-processing plant in Donetsk was seized and occupied by a group of “armed individuals.”

Then in August a grain silo at the plant caught fire, caused by a missile strike.

This isn’t even the first disaster that Cargill has weathered this 10

October 2014

One of Cargills many facitities

‘Cargill is one of the biggest agricultural and food processing companies in the world.

But just because you’re big does not mean that you’re completely immune to disaster. ’

summer – the company is also feeling a heavy impact of increasing drought conditions throughout North America. But Cargill’s actions in the Ukraine are a good reminder of how to react if one of your own facilities is caught up in the crossfire of a rapidly escalating conflict.

Protect Your Employees First There were no injuries during the missile strike at Cargill’s Ukraine

facility, and much of that can likely be attributed to the fact that it was not actively occupied with Cargill employees when it was struck.

According to reports, Cargill shuttered its Donetsk plant on July 4 as tensions of the conflict began to rise and become a concern, leaving it to idle until conditions improve.

It seems counterintuitive to leave a facility idle, but this can also be seen as a critically important move, 11

P ROD U C T ION

Cargill have 143,000 employees in 67 countries

both strategically and as a company with integrity and respect for your employees and their families. It’s true that, to an extent, the show must go on and business must continue.

But people always come first, and sometimes that means ceasing operations in order to keep them as far out of harm’s way as possible. Its grain may have been damaged in the 12

October 2014

‘People always come first, and sometimes that means ceasing operations in order to keep them as far out of harm’s way as possible’

B u s i n e s s G ua r d i n g A ga i n s t R i s k Du r i n g Co n f l i c t ?

missile strike, but the damage could have been much worse if workers had still been involved when the strike happened or the facility was seized.

Diversify Your Manufacturing Facilities Thanks to diversification, Cargill was able to temporarily close the doors to its Donetsk facility without having to worry about its business going under. In addition to Donetsk, Cargill also processes sunflower seed oil at facilities in the United States and Canada – therefore, while the company might have less of the product to work with throughout the year, it will not have lost its entire inventory in the seizure. If your company is in a good place with respect to diversification, you will be able to shut down operations at one facility without taking too much of a financial hit

is risk management that spends 100 percent of its time finding the best ways to hedge bets and mitigate risks for both Cargill and the clients with which it partners.

Not every company has the means, the space, the time or the energy to create its own in-house risk management sector. But if not, it could be well worth the effort to outsource the services of a company that specializes in risk management for an assessment and the creation of some contingency plans. It could be a great way to keep your operations safe no matter how safe it gets out there.

‘Cargill also processes sunflower seed oil at facilities in the United States and Canada’

Understand Risk It shouldn’t be a surprise that Cargill understands how to manage and juggle any dangers or misfortunes that might befall a section of its company – Cargill is a sprawling company with a lot of sectors, and one of those sectors 13

F RANC H ISING

Regional to Global: Making the Leap to International Expansion W r i t t e n b y : S A S HA O RMAN

How do you know that the timing is right to expand internationally?

That’s a difficult question – it’s a deeply personal question, and the answer can vary greatly from franchise to franchise.

You may feel like you need to expand to the point of saturation domestically before you can think about international expansion, but that’s not necessarily the case. Growing internationally can be an entirely different strategy with 14

October 2014

its own separate set of concerns.

Golden Chick is the perfect example of a franchise that made the leap straight from regional to international. Mark Parmerlee, CEO and owner of the Texas-based fried chicken chain since 1989, is still passionate about working with his franchisees in creative ways to grow the business. “It’s a lot of fun,” he explains. “There’s a

lot of good people I get a chance to work with, and the franchisees are really my second family.”

This year Golden Chicken launched a pilot location in a new region with a lot of proven potential for the right chains – China. So we sat down with Parmerlee to discuss franchising partners, supply chain logistics, and the considerations that come into play

when a regional chain goes global.

FDF World: How did you know that the time was right for expansion into a new country?

What drew you to China?

Mark Parmerlee: It was really twofold – first, we’ve been fortunate enough to have a real solid growing base in the United States and felt like we were ready to start looking abroad. We took 15

F RANC H ISING a jump into South Carolina and Georgia and that’s gone real well, so we felt like the jump into four countries was something we were ready for. Plus we had some willing and able franchise partners that had approached us.

FDF: Is that what drew you to China?

MP: I have a partner [minority partner Allen Tharp] who is developing in the San Antonio, TX market, but also has a consultant who has a great track record of developing chicken restaurants for a large international chain. At the time he wanted to expand in San Antonio, he also opened an office in Shanghai and just a few months ago opened a pilot restaurant in Shanghai. It was really his request that drew us to China.

FDF: Now that you’re moving into this new region, are you looking for additional partners? If so, what qualities do you look for?

MP: With our first entry into it, we want to be very conservative and feel very comfortable taking that first step.

In Jordan for example, we have a franchisee that is originally from Jordan, but he’s a proven operator in a unit in 16

October 2014

R e g i o n a l t o G l oba l E X P A NSI O N

Oklahoma City. So we felt comfortable [expanding in Jordan] because he knew what we were expecting in the way of product and service, and he had already demonstrated to us that he was capable.

So that makes it very easy. The way we go about it is we require that someone do a pilot store over there first – it really forces them to source product and prove that they’ve got a foothold in the country, and then they have a place to train someone.

So far we’ve sold Jordan and Palestine, and it’s the same with Allen – he opened an office there, now he’s opened the pilot store and we’ll go from there. He has a full time consultant based in Singapore that commutes back and forth, and we have a general manager for the brand that’s based in Shanghai.

With this policy in place, it becomes kind of a friends-andfamily almost scenario of initial expansion. So now with that under our belt, we are a little more open to looking at third parties. In fact, we’ve got Egypt, Pakistan and Saudi Arabia – we’re talking with three separate groups that all appear very capable. So that’s something

again where they’ll have to develop a pilot store, send people over here for training, and then we will help with support on our end.

FDF: What kind of support?

Is that more difficult for new franchise locations out of the country?

MP: Absolutely. We provide a high level of support for our industry in terms of training, pre-opening teams, purchasing and advertising support, and ongoing support that we do, and quite a bit of communication with our U.S. franchisees.

The distance and the language begin to come into play with international locations, and things are obviously outside of our normal distribution channels. When we’re developing a unit in the US, we just call our distributor to say “get ready, because in six weeks we’re going to be opening in this town.” It’s a little bit different when it’s overseas.

So there we really rely on a combination of things – our franchise partner sourcing and seeing what products are available at the volumes that anticipate going in, and then our US vendors to see 17

F RANC H ISING if they have overseas affiliates, or how reasonable it becomes to ship product over there until we can get enough units developed to economically produce goods over there. With paper products or some proprietary mixes, for example, it may not be cost effective to produce those overseas for just one unit.

So we may ship a container over there and then they’ll store product until there’s multiple stores.

FDF: In light of that point, how similar is your menu in China to your domestic menu? Are you introducing any changes to appeal to regional tastes?

MP: We did. We insist on the core products being the same – in our case a chicken tender, bone-in fried chicken, and a nice roast chicken product. But from there we’ve allowed flexibility for some of the side items. We’ve allowed them to add more rice dishes and pasta dishes, and then a few more soups and salads and a couple of other side items. Another example is that we sell catfish in the US, while catfish as we know it is not readily available in China, so they offer a more recognizable whitefish over there instead.

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But of course French fries, mashed potatoes, our yeast rolls – those kinds of things are international. We serve Pepsi there just like we serve Pepsi here, and the core products and the uniforms and those kinds of things are really standard to what we have here. So it’s mostly allowing some additional items and substituting on some of the side items that may not be that familiar.

KFC, who has a major presence over there, has really set the stage.

In other markets they haven’t had as big of a diversification of menu, but in China it seems like they’ve done more of that, so we felt a need from a competitive position to follow suit.

FDF: What are some challenge you face opening a restaurant overseas that you haven’t faced domestically and particularly in China?

MP: There are some cultural differences, there are ways of doing business that are different. Another challenge is real estate prices.

Shanghai is a very urban market with lots of high rises, so we’re not going into the typical site in the US, which would offer a single building with a drive-thru.

“XXXX” – XXXXXX

Caption to the image 19

F RANC H ISING

Caption to the image We’re on the ground floor of a high-rise building that’s got other retail tenants, some office space, and apartments.

It’s very densely populated, and the rental rates are extremely high compared to our standards here.

Now the labor costs are lower, which offsets that, and given the density the sales are typically higher in foreign countries to help make all of that work. But that’s a challenge, the real estate availability and costs, and just the different business styles, laws, customs, and even banking – getting money in and out in China, there’s an extra layer 20

October 2014

or two of government approvals.

FDF: What are your plans for the future as far as building new locations?

MP: The Shanghai location is again a pilot store – the idea is that it becomes easier to sell sub-franchises when you can make contact with someone and say “come see this location.” From there, we hope that there will be some franchising activity, and my partner’s consultants have contacts there.

In fact, we’ve got a multi-unit deal in another part of the country that is about to wrap up. And with

R e g i o n a l t o G l oba l E X P A NSI O N

franchising, it’s really success begets success: as more units are on the ground, it will attract people. There’s a significant demand, not only in China but a lot of other countries, for more American brands. Our approach is to give a little more of a share to the local franchisee than maybe the average chain. By doing so, it gives more of an upside, but also puts us in a position where we may not have to offer as much direct support as some other chains do.

FDF: What are your plans for domestic growth? Are you focusing more on domestic or international growth overall?

MP: At this point it’s really still more of a domestic focus for us, but the international is on the radar and we’re actively pursuing it. But we’re in the midst of a nice little boom for us – 132 units right now, with about 30 in the pipeline. What we’ve forecast is to do about 25 stores a year going forward.

With that, we feel the momentum and things are escalating. We’re still predominately in Texas, but Oklahoma’s growing, South Carolina has had significant growth in the last couple of years with more in the

pipeline, and we’re looking to bridge the gap by looking into Mississippi and Alabama taking us from what was once a Texas-based chain to a Southeast regional chain. Again, success begets success in Franchising.

One other piece that ties in with the international growth and bridges the two: we just closed on our first EB-5 transaction. There’s a great deal of interest in China, so it’s a marketing advantage for us to have an office in Shanghai and a restaurant in Shanghai – it’s a little bit of added comfort, and makes it so it’s not so unknown.

FDF: That way potential investors can kind of get a firsthand look at it?

MP: Yes – and again, the menu’s a little different, and it’s not a freestanding unit with drive-thru like they would find here. But at least it’s some familiarity and it’s tangible, so the concept becomes tangible to them. So that’s a nice tie-in. We anticipate doing a significant number of EB-5 deals, which would be corporately operated.

So we have several of those in the pipeline in addition to an escalating demand and more interest.

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RE TAIL

Tesco Tackles Food Waste: One Year Later W r i t t e n b y : S A S HA O RMAN 23

RE TAIL In October of 2013, in a remarkable effort to increase consumer trust and its own supply chain transparency, UK-based retail giant Tesco opened up its books and revealed its food waste figures to the public for the first time in the brand’s history. The numbers weren’t necessarily anything to be proud of: Tesco found that its stores and distribution centers had generated 56,580 tons of food waste within its 2013/2014 fiscal year alone. But by disclosing those numbers, the brand invited the public to hold it accountable for improving those numbers in the future.

This month it will be a year since Tesco launched this initiative, and it is still at the forefront of the chain’s corporate social responsibility docket – “to lead in reducing food waste globally” is at the top of Tesco’s Three Big Ambitions for making a positive social impact. One year later, what sort of progress has Tesco made in tackling the food waste problem?

Improving the Supply Chain to Improve the World Tesco’s focus on food waste did not grow up out of nowhere, but out of the 24

October 2014

“Enormous amounts of food are bein globally – at least 1.3 billion tonnes e observance of a mounting problem.

“As research by the UN has shown, enormous amounts of food are being lost and wasted globally – at least 1.3 billion tonnes each year,” says Tesco Commercial Director Matt Simister on the brand’s web page for its food waste prevention goals. “Aside from the unnecessary pressure this puts on land and natural resources, together with the associated emission of greenhouse gases, this waste costs

T e s c o Ta c k l e s Foo d W a s t e

The average British family with children throws away

ng lost and wasted each year” our customers vast sums of money.

For example, according to the UK’s Waste Resource Action Programme (WRAP), the average British family with children throws away £700 worth of food per year.”

This research has played a key role in Tesco committing to the issue of food waste, and for Tesco the first step toward solving it is by making a commitment to greater transparency.

This was clear from the time that the

£700 worth of food per year chain threw open its books, but a year later it’s still touting transparency as the forefront of its strategy.

Stopping Problems Before They Happen with Better Packaging The future is here, and Tesco is taking advantage of it. Several of Tesco’s initiatives to combat food waste are utilizing different forms of innovation, from modern technology to simply rethinking the basics of packaging.

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RE TAIL

Tesco’s new plastic packaging as an effort to conserve eggs

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October 2014

T e s c o Ta c k l e s Foo d W a s t e

One major cause of food waste is food becoming damaged during the distribution process, and part of Tesco’s food waste mission involves looking at new practices for handling those products in able to get more product from the farm to the retail floor. In March, in acknowledgement of its status as the largest retailer of fresh eggs in the UK, Tesco introduced a new egg carton packaging system at its Scotland and Northern Ireland locations with plans to roll the packaging out throughout the UK by the end of 2014. As an effort to conserve eggs, the cartons separate each egg within a dozen into its

own recycled plastic pod – the idea being that, if one egg breaks during distribution, that egg can be removed without the entire carton being contaminated. Through this method, Tesco is hoping to save up to a million eggs each year from becoming a casualty of food waste.

Connecting People with Food Waste Solutions through Mobile Technology But even food that makes it to the grocery store intact runs the risk of becoming food waste when perishable products run up against the sell-by date without being purchased. When

How Tesco calculate their food waste

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RE TAIL

Diagram courtesy of www.foodcloud.ie Tesco first launched its food waste initiative last year, it also launched a partnership with FoodCloud, an app built by students from Trinity College Dublin, at its stores in Ireland to find a better use for surplus stock in danger of becoming waste. The app connects retail stores with local charities and food banks, allowing markets to alert those charities whenever they have a food surplus that they would like to donate, and even alerting the charities to the types of food available from fresh fruits and vegetables to hot ready 28

October 2014

‘According to Tesco’s report, FoodCloud has made it possible for the chain to donate the equivalent of 18,000 meals to charities throughout Dublin’

T e s c o Ta c k l e s Foo d W a s t e

meals. According to Tesco’s report, FoodCloud has made it possible for the chain to donate the equivalent of 18,000 meals to charities throughout Dublin, successfully harnessing technology to turn potential food waste into life-saving meals for people in need.

Inspiring Peers and Competitors Changing the way an industry does business can be tricky, and it often takes the support of a major brand taking that leap forward before real

widespread change happens. This might be the case with addressing food waste. In August of 2014, rival UK retail chain Morrissons announced that it would be investing ÂŁ19 million into improving its own supply chain, promoting fresh fruits and vegetables while reducing food waste to offer a better value against discount chains. Little by little, as more retailers start rethinking their strategies, making food waste reduction a priority could become the norm instead of the exception.

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s upp ly c h a i n

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Month 2014

Fair Trade practice in the Supply Chain Written by: Sasha Orman

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s upp ly c h a i n

Workers operate a Japanese-made tea harvesting machine at the Kaoshui tea farm Credit: Theodore Kaye

You want your supply chain to be the best that it can be, from the raw materials in the field to the finished product out of the factory. But a strong supply chain is about more than just the materials you depend on – it’s also about the people who keep that supply chain running smoothly along, from the field workers who plant and pick 32

October 2014

the raw materials to the transporters and factory workers who transform it into the finished product you envision.

One of the best things you can do to take your business to the next level, in terms of productivity and consumer support, is to make sure that everyone along your supply chain is being treated well and receiving fair

f e a t u r e a r t i c l e s ho r t e n e d h e a d l i n e

‘ With third party Fair Trade certification, you can prove that your commitment to fair treatment is more than just lip service.’

compensation for their work. With third party Fair Trade certification, you can prove that your commitment to fair treatment is more than just lip service.

What Does Fair Trade Certification Cover?

The prime objective of Fair Trade certification is ensuring that workers

are being treated and compensated fairly for their services throughout your supply chain around the world.

As such, the criteria for Fair Trade certification covers such issues as: • Equal Working Conditions – Workers and management should be paid at least minimum wage or the average 33

s upp ly c h a i n for their region, and should have access to clear cut health and safety measures.

• The Ability to Negotiate – Workers should be allowed to negotiate for more favorable working conditions, and should have the right to organize and form unions without fear of repercussion.

• Paying a Fair Price – Retailers hoping to trade Fair Trade certified products must ensure that they are paying for those products at a rate that will allow for a sustainable operation that pays laborers fairly for their production work.

Are There Environmental Benefits to Fair Trade?

Many consumers these days want to know that the companies they support are doing their best to protect the environment. While the first and foremost goal of Fair Trade certification is supporting the people who labor along your supply chain, environmental stewardship has a clear and important role in reaching that goal.

After all, people work their best 34

October 2014

Fair Trade-certified organic cucumbers

Mariela Peñuelas, Head of Human Capital and Social Responsibility, holds Fair Tradecertified organic cucumbers

f e a t u r e a r t i c l e s ho r t e n e d h e a d l i n e

Miguel Sebastian, 22, Mixtec indigenous man and migrant worker from Ometepec, Guerrero, harvests organic cucumbers. Miguel serves as recruiter and community liaison back in his hometown of Ometepec. Due to need, he has been working since he was 13 and has not finished elementary school. Wholesum Harvest: Campo Nuevo, Culiacรกn, Sinaloa, Mexico. November 29, 2012.

Credit for all images on spread: James Rodriguez for Fair Trade USA 35

s upp ly c h a i n

Hong Xingcan, 61, from Wucun, spreads out freshly picked Fair Trade-certified organic tea at the Wucun Organic Tea Processing Plant in Dazhangshan...Wucun tea garden, Dazhangshan, Jiangxi, China. April 25, 2013. Credit: Theodore Kaye 36

Month 2014

F A IR TR A DE

when they are living and working in a clean and stable environment.

Because of this, Fair Trade certification organizations like Fair Trade USA also maintain environmental standards for the businesses that they approve for certification. These standards include making sure that producers practice smart irrigation tactics and source water sustainably without depleting regional supplies.

But while fair trade is beneficial for environmental stewardship, it also allows for producers to progress at a pace that’s right for them. For example: while Fair Trade USA supports and encourages organic farming, offering training and incentives for those who pick up the practice, going organic is not a requirement for fair trade certification.

establishing your supply chain, the simplest route to certification is by sourcing your materials from farmers and suppliers who are already certified themselves.

2.) Register Your Existing Supply Chain You have been in business for years, with an established supply chain that you know you can rely on for strong service and best practices. If this is the case, you can put your fair trade certification organization of choice in touch with your suppliers for a thorough assessment of your operations.

How Can I Have My Products Fair Trade Certified?

According to Fair Trade USA, there are two routes to Fair Trade certification: 1.) Source From a Fair Trade Certified Farm Group If your business is just starting out, and you are still in the process of 37

TOP 10

TOP10 Wine producing countries in 2014 Written by: Sasha Orman

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top 10

10

GERMANY

VOLUME: 322 million liters While Germany’s wine production is relatively low compared to major players like France and Italy, it is nonetheless indisputably a rising force in the industry. That trend is expected to continue in the near future.

Rhine Valley, Germany. UNESCO site.

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09

CHINA

VOLUME:Â 712 million liters China is one of the largest wine consuming markets in the world, importing millions of metric tons of wine from France, Italy, Spain and more every year. The country also maintains a robust fruit wine production industry as well. In preliminary forecasts, China expects major growth in this industry over the next few years.

The vineyards at Huadong Chateau in Qingdao China 41

top 10

Vineyard in Aconcagua Valley Chile

08

CHILE

VOLUME: 989 million liters Chile’s wine production is down significantly this year – according to Chile’s Ministry of Agriculture, freezing weather during the growing season has caused wine production to plummet 22.8 percent compared to last year despite a larger planting area. On the plus side, the country reports that strong crops over the last two years mean that this loss shouldn’t have too negative an effect on Chile’s wine sales.

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T O P 1 0 W i n e p r o d u c i n g c ou n t r i e s i n 2 0 1 4

07

SOUTH AFRICA

VOLUME: 1.38 million metric tons While South Africa is experiencing a decrease, it’s fortunately not to the dramatic degree as some other countries this year – experts forecast a drop to 1.38 million metric tons, compared to 1.39 million last year.

Lanzerac wine estate, Stellenbosch, South Africa

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06

AUSTRALIA

VOLUME: 1.6 million metric tons Australia is faring about as well as anyone else this year. While no official numbers or forecasts have been released yet, the country’s wine industry warned early on that it is expecting a “challenging 2014 crop” due to extreme weather conditions during the most recent growing season, and that its 2014 production will likely fall below last year’s 1.6 million ton volume.

Hunter Valley vineyards, NSW, Australia

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T O P 1 0 W i n e p r o d u c i n g c ou n t r i e s i n 2 0 1 4

Vineyards in Cafayate, Argentina

05

ARGENTINA

VOLUME: 2.1 million metric tons Argentina is consistently one of the top wine producers in the world, but even top producers have their off years. Bad weather this year caused a significantly poor grape crop, leading to an expected 27 percent decrease in wine production – experts predict that the country’s wine industry will produce roughly 2.1 million metric tons in the 2014 calendar year. With that said, experts also predict that 2015 will see the industry rebound as long as this year’s weather proves to be a fluke.

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04

UNITED STATES

VOLUME:Â N/A The United States remains strong, mostly thanks to its historically high volume wine production throughout California. But while grapes might be more resistant to droughts than a lot of agricultural production, this does not make them immune. Numbers have not yet been released, but early reports so far suggest that the critical drought afflicting California could finally be cutting into its viticulture industry, to the point where Napa Valley is considering putting a moratorium on new wineries to preserve those that are already in business.

Wine Vineyard in the Carneros Valley, California

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03

SPAIN

VOLUME: 3.9 million metric tons The Spanish wine industry had a fantastic 2013, with a production record of 5.4 million metric tons propelling the country to the top spot last year.

This year has not been nearly as kind – according to Spain’s Ministry of Agriculture, the country is forecasting a 26.3 percent drop down to 3.9 million this calendar year.

The Geria vineyards, Lanzarote, Spain

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02

ITALY

VOLUME: 4.1 million metric tons Unusual weather strikes again – a wet spring and summer has led to what wine industry experts are calling Italy’s worst wine grape harvest since 1950. The country’s southern region was hit the worst, with Sicily and Puglia experiencing a 30 percent production drop.

Italy is expected to produce 4.1 million metric tons of wine in the 2014 calendar year, a 15 percent decrease compared to last year.

Beauty of vineyards in autumnal colors. Chianti, Tuscany, Italy 48

October 2014

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01

FRANCE

VOLUME: 4.5 million metric tons While the French wine industry has always been well respected, it also has some fierce competition – but this year, France is coming out on top. It’s clear that it has been a difficult year across the board for the global wine industry, with low harvests compounded by a frugality drive in China that has caused a 3.5 decrease in wine export volume this year compared to last year.

Despite this poor year, other countries have had it much worse in terms of harvests and total production.

Wine production in France is actually expected to rise to 4.5 million metric tons this year, an increase over last year’s 4.2 million. That pushes France ahead of chief rival Italy and to the head of the class, placing it in the best position among an industry hoping for a better time in 2015.

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Vineyard and palace in region Beaujolais, France

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Harry Ramsden’s

Brings Loyal Customers Back with Three-Pronged Expansion Strategy The iconic fish and chip brand has spent the past three years renovating its offering and development plans and is now ready to reach the highest levels in its 87-year history Written by: Matthew Staff Produced by: Kiron Chavda

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“I’m still overwhelmed by the affinity that the brand has with its customers; millions of pounds into marketing can’t buy you that” – Joe Teixeira, CEO Harry Ramsdens

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H

arry Ramsden’s has undergone somewhat of an overhaul over the past three years and is now surpassing the already high expectations of Chief Executive Officer (CEO), Joe Teixeira as the company drives forward its company stores, franchising and licensing arms.

Having been in the hospitality industry for more than 25 years, Teixeira was well aware of the iconic status of Harry Ramsden’s in the UK but has been taken aback by the level of affinity that its loyal customers still has with the brand, paving the way for such a rapid regeneration.

“When I was given the challenge of turning Harry Ramsden’s around I saw an iconic

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Bournemouth restraurant interior

brand that had lost its way and knew it was a great opportunity,” he said. “Three years on and I’m still overwhelmed by the affinity that the brand has with its customers; millions of pounds into marketing can’t buy you that.”

Leveraging the value of a strong customer base is one thing, but Teixeira has been sure to repay the faith through the company’s expansion plans, encouraging not only an increase in visitor numbers, but also a change in attitude to bring shareholders back on side to encourage investment into its franchising efforts.

Joe Teixeira, CEO Harry Ramsden’s

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H a rr y R a m s d e n ’ s

Interior of Harry Ramsden’s restaurant

“Once we believed we had the right proposition in place, it was then a case of convincing the shareholders to invest in the business to allow it to grow properly” – Joe Teixeira

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Franchising The main driver behind a franchising strategy is the ability to react to market needs quickly and effectively, with Teixeira identifying a gap in the market for a branded, ethical fish and chip organisation.

“We always knew that franchising was the best strategy to take us forward,” the CEO explained. “Opening a lot of new company stores requires a lot of fast capital expenditure, but if you have capable and experienced franchisees, you then have someone who you know will absolutely care for your brand because it’s their hard cash going into it.

“It is the fastest growth to market without diluting the proposition, we’ve hit at the right time of the economic cycle and there is a lot of interest in our business.”

The goal is to have 250 sites in place by 2019, and the company is already well on track, having development agreements across Scotland, Yorkshire, West Sussex and the North East of England for 150 sites.

The only challenge in that respect now comes from selecting the right people to partner with as the pace accelerates; an example of which can be seen in the company’s recently secured agreement with Welcome Break MSA to develop up to 26 outlets.

“I’m trying to avoid handing out single franchisees because it’s very difficult to manage 500 different partners.” Teixeira

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The serving counter at a Harry Ramsden’s restaurant

said. “We now look towards franchisees that can open between five and 20 sites within a specific allocated space.”

Merging the industry knowhow of Harry Ramsden’s with the local expertise of selected partners is also supported by a unique, award winning training package offered to encourage standardisation and consistency across all its stores.

Exterior of restaurant

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World class marketing for World famous fish & chips Proud to be Harry Ramsden’s Brand Team.

Proud to supply Harry Ramsden’s with fresh fish & seafood We are your local fresh fish & seafood supplier, bringing you the best of the catch from the nearest quayside and the other side of the world.

All our fish and seafood is responsibly sourced and expertly prepared by a team you can rely on.

www.mjseafood.com

&J_Harry_Ramsden_Ad_P2.indd 1

Call us for a chat on 0141 561 8262 or email love@brandingboutique.com

Brand | Marketing | CoMMuniCations www.brandingboutique.com

10/09/2014 17:11

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H a rr y R a m s d e n ’ s

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Organisation growth Complementing its franchising expansion is also the ongoing development of its traditional fish and chip shops, of which there are now more than 10,000, with Teixeira aiming for 10 percent of a saturated and competitive market place.

One surprising addition though, has been the inception of its own licensed products hitting UK shelves, as Teixeira explained: “We entered into a partnership with Birdseye on developing a frozen fish retail product and it was so well received by our customers it took us by surprise.

“We’re now going to extend that agreement while also ramping up other areas, including – and I could never have dreamt that Harry Ramsden’s could command such a product a chicken product in the retail environment.

“It punches above its weight and when Tesco conducted their research it was on par with a brand leader. It is our target to have £100 million sales within five years and we’re already 30 percent towards that.”

Harry Ramsdens aims to have 250 sites in place by 2019

Turbocharged investment Recent successes have come ahead of schedule in a lot of respects, but Teixeira has emphasised from the start the need to remain flexible in what is an ever-changing industry.

“The first stage we went through over the first 18 months was fixing what we had and resolving property issues in terms of the right sites and right investments,” Teixeira said. “Once we w w w. h a r r y r a m s d e n s . c o . u k

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H a rr y R a m s d e n ’ s

“We have a plan and five year vision but it needs to be updated and flexible enough to react to the market and the customer.

What they want is what we do” – Joe Teixeira

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October 2014

believed we had the right proposition in place, it was then a case of convincing the shareholders to invest in the business to allow it to grow properly and we went about refurbishing the jewels in the crown at our key seaside resorts.”

The overriding ethos throughout all stages of development has been in establishing value for money within the business, meaning the best proposition for the price of the product, rather than simply the cheapest offering.

This, alongside a more convenient strategy in terms of store location has conspired to achieve excellent returns on investment within the first year of expenditure at some sites, and within two years for most others; all of which

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has encouraged the shareholders to accelerate growth even quicker moving forward.

Market leader The immediate positivity to come from Harry Ramsden’s development over the past three years is testament to its customers who continue to embrace the new proposition and provide helpful indicators on upcoming trends and taste preferences.

“We have a plan and five year vision but it needs to be updated and flexible enough to react to the market and the customer. What they want is what we do,” Teixeira said. “We want to make sure that what we do is consistently above the quality of our competitors and that the customers walk away understanding why they’ve paid for that experience in terms of value.”

In turn, Teixeira knows that Harry Ramsden’s’ notoriety in the UK will make any internal success a success for the industry in general, as the company strives to raise the general level of standards.

He concluded: “If Harry Ramsden’s is the market leader, it can only be good for the industry in my opinion. We have gone on a journey that the owners began in 1928. It lost its way in the past couple of decades and is coming back to dominate and our ambition is to be recognised around the world, commercially successful, employing thousands of people and having a positive impact on the economy.”

Company Information Industry

Food and Drink headquarters

London founded

1928 employees

471 Full and Part Time employees revenue

£14 million products/ services

Fish and Chips

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Mexican pork with global production standards:

From breeding to retailing and export, KekÊn goes hand in hand with Mexican consumers and looks towards demanding foreign markets  Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Claudio Freixes, CEO Jorge Ricaud, Commercial Manager

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c o m pa n y n a m e

Food processing plant

Satisfying The Most Demanding Palates Since 1994 ekén (an affiliated of Kuo Group) is a company dedicated to breeding, processing, commercializing and selling meat. Its industrial activities are sustained by pork meat and complemented with chicken and beef production. Their breeding and processing operations are carried out in the Mexican states of Yucatan, Bajio (Irapuato) and Aguascalientes.

Kekén’s main business units are exports and a

K Farms

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October 2014

sector

distribution chain through Maxicarne stores.

Two of the company’s managers are Jorge Ricaud, a zootechnician-agronomist, who graduated from the University ITESM in the state of Queretaro. Ricaud serves as the current commercial director of Kekén and his experience includes a 10-year career for Campi, another member company of Kuo Group located in the Mexican state of Yucatan. The CEO of Kekén is Dr. Claudio Freixes, a veterinarian with prior experience in Chile (his homeland) and Europe.

“We seek to develop fresh and refrigerated products, with an additional value for consumers: marinated, portioned, seasoned, but basically in the vein of fresh produce” – Jorge Ricaud, Commercial Director of Kekén

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www.pic.com

Keken

l at i n a m e r i c a

Freixes has been in this managerial position for the past six years, with previous experience in operations.

In pork production, Kekén has integrated a network of commercial partners from entrepreneurs in rural communities to small producers as a way to reach the most demanding markets. Slogans such as “from the farm to the table” are falling short due to their expansion in Asia and North America, a success that implies high management standards and constant updates in technology and health procedures.

Their distribution channel includes all 250 “Maxicarne” convenience stores; these branches supply customers in the domestic market and through food establishments.

The company is on track to meet their 2015

Key People

Claudio Freixes CEO of Kekén

Perfil de proveedor Employees: 2,400 Established: For over 40 years, the success of our company is attributed to the significant investment in genetics, technology and health.

Industry: Swine Genetics.

Services: International leader in providing superior swine genetics and support to increase the genetic potential to the maximum in the meat chain.

CEO: • Karim Bitar - Chief Executive • Bill Christianson - COO PIC Latam • Martin Perez - Director PIC Latinoamerica.

Visit our webpage: www.genusplc.com

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www.automatedproduction.com

canadon@gsiag.com

l at i n a m e r i c a

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Keken

Cutting plant

expectations, including a more aggressive presence and distribution in the southeast region of Mexico to further expand operations into the country’s capital with new stores and production plants.

“Our goal is to duplicate Kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of Kekén’s human resource, we will be able to achieve anything,” says Claudio Freixes, CEO of the company.

l at i n a m e r i c a

Strategic Planning Based On Differentiators Kekén’s star product is refrigerated pork meat and it will remain the company’s specialty.

The bastion of Maxicarne stores is the starting point for local routes, covering deliveries for “intermediate” customers such as restaurants and other food outlets.

The advantage offered by each Maxicarne branch is to deliver a variety of meat that consumers could rarely find in other establishments where display space is limited.

“We seek to develop fresh and refrigerated products, with an additional value for consumers: marinated, portioned, seasoned, but basically in the vein of fresh produce,” says Jorge Ricaud, commercial director of Kekén.

Technology To Meet Objectives Kekén depends not only on their retail distribution, but also on specialized logistics that demand refrigeration and a process manipulation in sanitary conditions, as well as a strict feeding control to provide secure and healthy results.

“We also need logistics in transportation, distribution and refrigeration centers to maintain our products in optimal conditions and for them to stay fresh and healthy for consumers,” says Freixes.

Metal detector

Processing

Communities & Partners One of Kekén’s greatest successes has been to establish partnerships with farmers and w w w. k e k e n . c o m . m x

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Kekén small entrepreneurs in the regions where their processing plants are located.

The company has helped small farmers get loans to build their farms from scratch and small businesses have joined the project by aligning production standards. After 20 years of partnering with the community, not only were these farms paid for in full, they also successfully expanded.

“This started before the concept of social responsibility was created and it has been a success,” says Freixes.

Store Maxicarne

Maxicarne interior

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International Growth The company has begun its foray into the Japanese market, with the consideration of their premium policies and prices on quality produce.

Kekén wants to maximize their capacity in this country. Within the Asian market, they are also involved in the Korean pork industry.

In regard to their closest clients, their exports operations have expanded into the United States and Canada, thus representing a great potential for development.

Key Suppliers There are specialized areas such as genetics and salubrity in which providers must perform at their best to continue working within the global standards of Kekén.

Another key aspect is the environmental temperature control in the process of reproduction of swine in hot environments. This is

l at i n a m e r i c a

very important for the comfort of animals and for them to achieve their maximum productivity.

Developments in Numbers By 2015, the company plans to commercialize more than 180,000 tons of meat per year.

Subsequently, the construction of new plants and farms will become a basis for their second goal, which is to produce 340,000 tons of meat per year by 2020.

Company Information c o m pa n y

Keken Industry

Food (pork breeding, slaughtering, packaging, distribution) headquarters

Merida, Yucatan, Mexico founded

“Our goal is to duplicate Kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of Kekén’s human resource, we will be able to achieve anything”

1994 employees

3,500 revenue

USD $382 million email

jorge.ricaud@keken.com.mx website

www.keken.com.mx

– Dr. Claudio Freixes, CEO of Kekén

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A Sustainable &

Self-sufficient Sugar Mill:

Renewing the Guatemalan sugar-cane industry with substantial energy and operations.

Written by: Rebecca Castrejon Interview by: Taybele Piven Interviewee: Fraterno Vila, CEO of Corporation San Diego

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C o r p o r at i o n S a n Di e g o A Family Business United by Sugar

C Corporación San Diego and the communities of Guatemala

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October 2014

orporation San Diego is a sugar-cane production company based in Guatemala.

Its history goes back to the 1940s when Faterno Vila Betoret, business executive and founder of Ingenio San Diego, opened this sugar mill as part of his corporate vision of elevating the country’s agribusiness.

During the first harvest, San Diego produced around 300,000 tons of sugar. By 1960, Vila Betoret decided to open a new mill with an installed capacity of 60 thousand tons of sugar production per year.

With the company’s growth, a second generation of entrepreneurs joined San Diego in the 1980s. Among them was the current CEO of the company, Fraterno Vila Giron, who soon enough was involved in the administrative business-family sphere. His first major acomplishment was the acquisition of a small sugar mill with a great strategic location: Ingenio Trinidad. The new acquisition provided competitive advantages to the corporation because of its proximity to the port and by producing 72,000 tons of sugar cane per harvest.

“We are a family business which was originally directed by my father. He established the foundation of this company,” says Vila Giron.

In 2010, the original sugar mill “San Diego” was closed in order to consolidate all operations into one venue. The company chose Ingenio Trinidad

l at i n a m e r i c a

because of its location, logistics, security, and production capabilities for the future.

A third generation of young executives joined San Diego in 2012. Additionally, the corporation hired external talent and corporate consultants to mediate operations. “Since the founding of the company we have tried to keep certain parameters, certain lines according to our code of ethics and what defines us in values and principles. We follow five fundamental standards, which are: integrity, respect, work, unity, and sustainability,� said the CEO.

Aerial view of Ingenio Trinidad

Machinery imported from India, Japan and England

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C o r p o r at i o n S a n Di e g o

Energy production, an added business of San Diego

Suppliers with Value CorporaciĂłn San Diego has maintained the same company ethics with all business partners, including suppliers. Many of their raw material is essential in the daily life of the sugar factory, from cane (its primary input during a harvest cycle of six months) to international equipment. “Our suppliers have been very efficient and serviceable with us. In some cases, they have sacrificed their utility sales to meet our demands,â€? he said.

Additionally, the machinery that the company requires for daily activities, such as boilers, power generation equipment and milling material, has

www.horcalsa.com

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been imported from India, Japan, and England as a result of collaboration with foreign suppliers.

Energy Self-sufficiency The family business experienced substantial growth after introducing a new business model: the cogeneration of energy (CHP). Around 30 percent of this resource is used for the plant’s self-consumption while the rest is used for external sales.

Since early 2013, Corporación San Diego has commercialized their energy produced in the sugar factory in addition to resources purchased from generators. As a result, both the corporation

This year, they produced more than 161 thousand tons of sugar

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C o r p o r at i o n S a n Di e g o and the generating company have increased profits thanks to the large amount of sales in Central America.

San Diego has strengthened operations and reformed its international strategies with the opening of commercial branches in El Salvador with the opening of this new business in the energy sector, As for their exports, the corporation is conducting thorough market research in Mexico and Central America—where it expects to invest in the next couple of years. “Approximately 10 years ago, we started to sell energy. Last year, we sold more than 18

mayafertventas@unisourceholding.com

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megawatts per hour and in the next two years we expect to sell 85 megawatts per hour,” says Vila Giron.

A Responsible Sugar-Cane Mill Guatemala holds a great importance for the family business, Therefore, its procedures are friendly to the environment and it supports the community with socially-responsible programs to improve their quality of life.

“We want our partners, employees, suppliers, and even the government—but specially the surrounding communities— toperceive us as an efficient, highly responsible, and sustainable business,” he says.

“This month we exported more than 30 percent of the energy produced in Central America” – Fraterno Vila, CEO of Corporación San Diego

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C o r p o r at i o n S a n Di e g o

They hope to produce between 245 and 250 thousand tons of sugar in the next two years

Ingenio Trinidad Production Goals In 1980, the company produced 72 thousand tons of sugar. Now it produces more than 161 thousand tons of sugar cane during the harvest. “We hope to produce between 245 and 250 thousand tons of sugar in the next two years,� says Vila Giron.

Sugar-cane plant

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Commercial and Organic Expansion In the past three years the company has been reaching positive numbers with the introduction of new businesses and their development in foreign markets. They are hoping to complete this expansion in 2016, begin the path of

l at i n a m e r i c a

consolidation, and add new units or added value products such as alcohol and refined sugar.

“We are convinced that a productive and efficient company can contribute to the welfare of its members, associates, and the community. In addition to this, we want to assist both the country and people with improvements,” says Vila Giron.

Company Information Industry

Production and commercialization of sugar and energy headquarters

City of Guatemala, C.A., Guatemala founded

“Although our company is not the largest one in the country, we have high prestige and a lot of respect in and out of our sector. This is an extremely valuable group and this is what we have tried to convey to our children, who in the future will be leading the company”

1963 employees

2,500 – 4,500 revenue

USD +$200 million website

www.sandiego.com.gt

– Fraterno Vila, CEO of Corporación San Diego

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Houston

Canada Inc. Houston Canada Prepares for Growth

Director of Operations Guy Miquelon discusses the Houston family of restaurants and their plan for company and franchise growth in Quebec and beyond Written by: Laura Close Produced by: James Hayes

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Houston Canada Inc.

I

n order to reach its full potential, sometimes a restaurant chain needs to evolve with the changing times. When Canadian restaurant chain Houston Steak and Ribs came under new ownership in 2008, a change was in order to take the chain in a new direction and to the next level.

“We felt that Houston Steak and Ribs was a good brand, but that 86

October 2014

the market was going to change,” says Guy Miquelon, Director of Operations at Houston Canada Inc. “We felt that the casual dining market would soon be less about specific menu items, like steak and ribs, and more about an environment or an atmosphere – a place where people could gather and enjoy themselves amongst friends.”

To meet this new zeitgeist in the

Foo d D r i n k & F r a n c h i s e

culinary world, Houston Steak and Ribs was transformed into the chain known today as Houston Avenue Bar & Grill. “We’re still food focused, but we focus just as much on atmosphere and events to create more of a style of restaurant – not just a style of food, but style as far as the atmosphere,” says Miquelon.

Under this new identity, Houston is taking Quebec by storm and

preparing for even further growth in the near future.

On a Track Toward Franchise Growth In the past eighteen months Houston Avenue Bar & Grill has been working aggressively to cement its corporate presence in the large urban markets of Ontario and Quebec, opening three new w w w. h o u s t o n r e s t o . c o m

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Houston Canada Inc. restaurant locations across Quebec with plans to turn focus toward Ontario later this year. The company has also recently launched its first spinoff – INDUSTRIA, a casual dining concept with a focus on Italian cuisine – with its first opening in Montreal’s Griffintown.

“We decided to create a second concept because often we have opportunities to open in certain markets or certain shopping centers for instance, and our second concept would be more suitable for 1737.09 - Houston Bar-Grill AD_Layout 1 17/09/2014 10:11 AM Page 1

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www.sysco.ca

that space,” says Miquelon. “Now we can seize opportunities to open up and have two different brands depending on what would be best suited for that spot.”

With these opportunities before it, Houston Canada Inc. is laying the groundwork for potential franchise partnerships in order to more effectively expand into more suburban markets. “In the larger markets, like Montreal and Quebec City and Ottawa it’s more of a corporate presence we’re trying to

canada

achieve,” says Milquelon. “We feel that in smaller cities it’s important to have a local owner, somebody who’s in the community.”

To best achieve a successful transition from only corporateowned locations into a franchise business model, Houston Canada is looking for potential franchise partners ready to take an extremely active role in running their location.

“We don’t want a franchise partner that’s absent – we need a person to be hands-on to operate the store,” notes Milquelon, noting that the brand plans to be particular and selective in choosing just the right

partners to take their business in just the right direction. “So we’re looking for franchise operators – that’s very important to us – and we’re also looking for franchise partners that will blend into a culture quickly.

That’s also very important.”

Consistency Through Expansion Whenever a restaurant chain expands, it is critical that the company makes every effort to keep its quality standards uniform throughout each location. Houston Canada understands this, and strives for consistency as it grows throughout the region. w w w. h o u s t o n r e s t o . c o m

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Houston Canada Inc.

“We try to go through one major distributor to supply all our products – that’s our ultimate goal,” says Milquelon. “We partner up with national suppliers so that, if we do open in another province or a different area, they’re able to accommodate our needs there as 90

October 2014

well. Our suppliers are partners, they help us with our business to make us more efficient.”

Branching Out No one can know what the future holds – but at Houston Canada Inc, one thing that’s certain is that the

canada

Company Information Industry

Food headquarters

Quebec founded

2008 employees

600 revenue

$80 Million

future will be full of growth as Houston Avenue Bar & Grill continues to build out in the Ontario market and sets its sites on further provinces. As the brand transitions into its franchise model phase, while continuing to strengthen its brand identity from a core corporate level, the sky is the limit.

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TH E

Pancake Parl

The Pancake Parlour: Taki

Pancake Parlour Marketing Manager Nico brand’s strengths in social media to conne Written by: Sasha Orman Produced by: Andrew Zhao

lour:

ing On Social Media

ole Jackson discusses the iconic Melbourne ect with employees and fans

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Th e Pa n c a k e Pa r l o u r

Fresh Strawberries

THE PANCAKE PARLOUR has been an iconic Australian restaurant institution for decades.

Despite this legacy status, the company is committed as ever to staying fresh and up to date – it’s this dedication that has kept The Pancake Parlour at the forefront for the past fifty years, and will continue to carry it with 94

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consumers and employees alike well into the future.

Building a Better Internal System “We’ve been around for fifty years, but we realized that it’s really important to stay relevant and move ahead with the times – especially when we have more than 600 employees mostly millennials,

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Scotch Fillet Steak

and all using technology,” says Nicole Jackson, Marketing and Communications Manager for The Pancake Parlour brand. “To really stay ahead and stay focused with them, we needed to implement something that was going to be suitable and able to talk to that generation.”

For The Pancake Parlour that something is Sherpa Systems, an

integrated web-based program framework that forms the basis of the restaurant’s fully customized internal communications tool “The Mix”. “We did a lot of research on what companies were out there and what programs and what web-based systems were out in the marketplace, and we really formed an alliance with Sherpa

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We are manufacturers and distributors of Quality Australian Dairy Products and have been for over 75 years.

We are a One Stop Dairy Shop with the ability to supply a full range of Quality Dairy Products to Industrial, Foodservice and Retail Customers.

One Stop Dairy Shop For Quality Dairy Products

Marsh Dairy Products Pty Ltd ABN: 25 005 086 288 Phone: 03 9689 3433 Fax: 03 9689 3422

86 Maribyrnong Street Footscray Victoria 3011, Australia Email: hamish@marshs.com.au

www.marshs.com.au

“Social media has become a digital form of traditional word of mouth advertising, and a picture tells a thousand words,�

Th e Pa n c a k e Pa r l o u r because we found that their vision and development of their system was on par with our vision for the company,” says Jackson. Set to roll out within the next couple of months, the company will be using “The Mix” as a complete employee management tool, ranging from recruitment training, rostering, payroll and task management to social communication between restaurants, managers, and employee teams.

“Employees can access the tools they need from any device at any time, and they are in touch with the restaurant for all of their communication, rostering and workflow needs,” Jackson explains.

“They can use it for swapping shifts, leave requests and staying in touch - it’s basically like a mini-Facebook group within the company with added management tools.”

Award-Winning Social Media Expertise The Pancake Parlour is well familiar with Facebook. Using it is a cornerstone of the brand’s finely tuned social media strategy, executed fully in-house by the

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brand’s social media team with the goal of keeping fans naturally engaged in The Pancake Parlour experience on a daily basis. It’s a big job, requiring a full-time commitment from The Pancake Parlour’s marketing and social media team, but that hard work has paid off with more than 250,000 Facebook fans for the group and a recent award for Excellence in Social Media from the Australian Restaurant and Catering Association.

“I think that our number one strategy is really just keeping our brand at top of mind for Facebook users,” says Jackson. “We appear daily in their newsfeed with all sorts of key messages that are relevant for the time – whether they are coming for breakfast, lunch, or supper – and the thing about our product is we have fantastic images we can use.”

That wealth of images has gone a long way in helping The Pancake Parlour develop its social media strategy, which revolves mainly around image-based mediums such as Facebook and Instagram.

“Social media has become a digital form of traditional word-

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Th e Pa n c a k e Pa r l o u r

The Short Stack

of-mouth advertising, and a picture tells a thousand words,” notes Jackson. “We could do a radio ad that talks for thirty seconds about our Lemon Berry Pancakes, or you can see a picture in an instant and know exactly what it looks like and you 98

October 2014

can almost know what it’s going to taste like just by looking at the photo. So mouthwatering images work really well. The minute we post a chocolate pancake with whipped cream and ice cream and strawberries our fans are totally engaging with us and

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sharing their experiences. So our strategy is really just about staying relevant to them.”

The Pancake Parlour at Fifty The Pancake Parlour is at the precipice of a major milestone – fifty years in the restaurant business as of 2015.

“With fifty years of history being a milestone, we’re launching a history book on the family business that will be coming out in 2015,” says Jackson. “It’s the story of how The Pancake Parlour has evolved, with a lot about the family behind the business as well.”

Company Information Industry

Restaurant Group headquarters

Melbourn Australia founded

1965 employees

Fifty More Years and Beyond Fifty years in business is an impressive feat for any business in any sector, especially in today’s global economy. But The Pancake Parlour isn’t just holding on to business – it’s thriving and growing, while remaining true to its roots.

“We’re a bit of a Melbourne icon, and with our current CEO, Simon Meadmore, being the son of the original cofounders, it’s still very much a Melbourne family business,” says Jackson. “Fifty years is a great achievement, but we’re really making sure we’ve stayed relevant. We’re always looking at ways we can create new dishes, renovating for a new modern look, and building our strong social media presence to keep us more in tune with the current generation.”

If its current efforts are any indication, The Pancake Parlour will continue to build its base and thrive for another fifty years to come.

600 revenue

Privately Held products/ services The Pancake Parlour is an Australian family-owned restaurant featuring ten restaurants in Victoria.

Founded by Allen and Helen Trachsel and Roger Meadmore in 1965, The Pancake Parlour was created as a neighborhood restaurant for Melbourne residents to enjoy all-day pancakes and a friendly atmosphere. Today The Pancake Parlour continues to evolve for modern tastes, while retaining the quality food and family charm that made it a Melbourne icon.

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German-Australian

of Industry and Commer

40 years experience fostering Ge bilateral trade

Chamber

rce (GAC):

erman-Australian

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G e r m a n - A u s t r a l i a n Ch a m b e r o f I n d u s t r y a n d

Energy Efficiency and Renewables in Buildings Conference

SINCE ITS FOUNDATION in 1977 the German-Australian Chamber of Industry and Commerce (GAC) has become an important partner in fostering bilateral trade between Germany and Australia. The GAC maintains two offices one in Sydney and one in Melbourne.

The governing body is the Council, 102

October 2014

which together with the Association of German Chambers in Berlin, appoints the Chamber’s executives.

Since 2011 Kristian Wolf is the Executive Director of the GAC and the elected President is currently Lucy Hughes Turnbull AO. GAC’s mission is to facilitate connections between German

C o m m e r c e ( GAC ) and Australian businesses and we are the officially recognised focal point for contacts, information and expertise in both markets. Our vision is to help connect Germany and Australia through commerce and assist our clients to build and develop sustainable businesses. We promote both countries’ expertise whilst supporting our client’s needs.

Our core values are Respect, Trust, Expertise and Flexibility.

At the German-Australian Chamber of Industry and Commerce, we have almost forty years of experience and our competent team of experts and partners can deal with all facets of the Australian market. One of our main objectives is to advise German and Australian companies on market developments and to support them with the right market entry strategies to give newcomers the optimal chance of success.

The German-Australian Chamber provides a wide range of services for members and non-members alike, particularly for small and medium-sized companies. These services start with tailor made address lists and go right up

H e a lt h c a r e

to detailed market studies and business partner searches. We offer advice on setting up business within both Australia and Germany with services that include customs regulations information, assistance in sourcing employees or a complete business representation for very small start-ups.

Knowledge about specific market information is essential for companies looking to successfully expand their business into Germany or Australia. Our research is tailored to provide them with a better understanding of the German or Australian market for their product or service.

While Australia is a good export market for German businesses generally, a few industries have a particular need for German products and technologies. To help them fully take advantage of these opportunities, GAC’s Consulting Department “DEinternational” specialises in the following sectors: • Food and Agriculture • Education and Vocational Training • Mining and Raw Materials • Healthcare australien.ahk.de/en/

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G e r m a n - A u s t r a l i a n Ch a m b e r o f I n d u s t r y a n d

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C o m m e r c e ( GAC )

H e a lt h c a r e

• Environmental Technology • Renewable Energy • Energy Efficiency

Company Information

The Chamber is also a membershipbased organisation which offers an extensive networking platform for its member-companies.

Our know-how combined with the expertise of our partners makes us a strong and competent partner for all business needs. In 2014 the GAC’s membership reached a total of some 370 companies, most of which are located in Australia. About half of these are Australian companies with business links to Germany and the remainder is largely German subsidiaries.

The members come from diverse industry backgrounds and membership is available to every company involved in business relations between Germany and Australia. The GAC offers three types of memberships: “Corporate”, “Group” and “Premium Partnership” to facilitate and multiply our business networks.

All members receive invitations to networking events, luncheons, seminars and conferences.

Furthermore they can present their business to other member companies through GAC’s extensive media offer including on and offline publications. Membership with the GAC allows companies the possibility of finding partners and clients as we as access to industry experts, trade associations and government departments in both countries.

Industry

Sector headquarters

Sydney founded

1977 employees

370 revenue

Non-Profit products/ services

Since its foundation in 1977 the German-Australian Chamber of Industry and Commerce (AHK) has become an important partner in fostering bilateral trade between Germany and Australia. One of our main objectives is to advise German and Australian companies on market development and to support them in the initiation of business relations.

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FRIATO is the

biggest company in the Northern/ Central-Northern region Through a vertical industrial complex, the group invests in the concept of agro-business and grows each year Written by: Flรกvia Brancato | Produced by: Karla Sohn 107

F R I AT O

B

ody Text: With a history marked by work and innovation, FRIATO quickly proved their capability at working hard and succeeding. Functioning at full steam since 1995, NUTRIZA Agroindustrial tripled its production rate in three years, reaching the 90 thousand birds/day mark. By then, the FRIATO brand had already been established, in addition to an integration project consisting of poultry farming in association with a micro-entrepreneur or rural producer.

Quickly, the first exports began towards Hong Kong and China.

Almost two decades later, great research advances in the development of new technologies in poultry raising have turned

Poultry Slaughterhouse

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NUTRIZA/FRIATO into one of the greatest global producers and exporters of poultry meat. According to Francisco Tomazini, president of NUTRIZA/FRIATO, there were other fundamental factors for the growth of the company, including the increasing consumption of chicken meat. “Significant changes in the feeding pattern and the opening of the markets, resulting from the economic globalization process, caused an increase in the production scale with cost reductions and, therefore, increase in consumption,� Tomazini explains.

Whole products In Natura

Nutriza frozen chicken

THE FRIATO BRAND To raise, slaughter and industrialize chickens with a high quality standard is the main purpose of the NUTRIZA group. Today, the FRIATO brand is formed by a vertical industrial compound and a full top level structure, in addition to egg incubators, broiler farming, as well as egg production, industrialized products and portions manufacturing. The core is capable of slaughtering close to 300 thousand birds per day and producing frozen and cold chicken, as well as special cuts.

With a gross annual invoicing of approximately 1 thousand million Reais, the industrialized manufacturing sector of the company is responsible for the production of more than 300 tons of food per day alone, including chicken sausages, ham and wieners. Securing greater control over the egg

Refrigerated chicken

Friato frozen chicken

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F R I AT O

Friato has their own chicken farm with an area of 350ha

The company count with approximately 312 chicken farms

“To stand out from the competition, offering a good service or product is not enough. It is necessary to promote an efficient strategy for business process management” – Francisco Tomazini, President

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production, through a modern incubation central with state-of-the-art equipment allows the incubation of 15 million eggs per month.

To acknowledge their growing success, FRIATO kept their 2nd place title as outstanding company in the agro-industry area in the nation, and held 1st place as the biggest company in the agro-industrial sector of the Northern/CentralWest region, in the Almanac Valor 1000, of the Valor Econômico Newspaper.

Currently, as a sign of commitment to the quality of its products and acknowledged by the domestic and international market, the company currently has close to 2,500 direct associates and 5,000 indirect associates. The company serves the markets of the Central-West, Northeast, North and South-East of the country, in addition to foreign markets in Africa, Asia, the Middle East and Russia.

THE DIFFERENTIAL “To stand out from the competition, offering a good service or product is not enough. It is necessary to promote an efficient strategy for business process management,” Tomazini said in regards to the evident corporate feature of NUTRIZA/FRIATO. Tomazini further reinforces the relevance of people and internal process management, “People, systems and processes must be integrated. Employees must fully know the company processes with which they work, and such processes must be well aligned

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with the company business. Only that way the company will be able to become the main choice of consumers.”

The verticalization structure is one of the main differentials of FRIATO. The company serves in family context, further responsible for the own production of soy beans and corn, through the OLVEGO – Óleos Vegetais de Goiás -, which guarantees total control over production stages. This process begins with soil control, correction, fertilizers, protection, plantations and harvesting. Everything is done with state-ofthe-art machinery, grain storage and industrialization of products. The strict control of all production process stages guarantees products with excellent quality standards.

Poultry Slaughterhouse

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Sustainability

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“Today, NUTRIZA/FRIATO is automatized as efficiently as possible.

We seek the continuous qualification of our professionals, offer training and qualification courses, and we invest in logistic partnerships and distribution of our products,” adds the president. Furthermore, the poultry sector presents positive indexes, particularly in Latin America, in which the productivity increase, the processing efficiency, the scale economy and the climate of the country itself, contribute to positive expectations for the Brazilian poultry farming industry, in general.

QUALIFICATIONS Tomazini is proud of its achievements and places great responsibility on company qualification projects. “We believe that the greatest equity of the company are our collaborators, and that is why we develop different projects and programs to value and retain talents,” he says. Among many training projects of the company, most in partnership with SEBRAI and SENAI, professional training courses are offered, such as the “Projeto Acolhida”, which has the purpose of receiving the new workers,

SUPPLYER PROFILE EVONIK: CORE SPECIALTY CHEMICALS BUSINESS

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CORPORATE.EVONIK.COM.BR

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F R I AT O monitoring all stages of professional adjustment and development.

Furthermore, NUTRIZA/FRIATO has an exclusive 24-hour clinic, with a special medical team to care for any immediate need. The company also has a Quality Guarantee Department, which acts independently through a qualified technical body, through which 19 quality programs are in place, such as: Good Manufacturing Practices, Standard procedures for Operational Hygiene, Operations Sanitary Procedures, Hazard and Critical Control Points Analysis, among others.

In addition to the traditional health plans, dental plan and life

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Products Cuts

Boneless Thigh and Drumstick Frozen

President, Francisco Tomazini

insurance, the company also offers a Specialized Service in Labor Medicine and Safety Engineering, offering regular courses and training with the purpose of guaranteeing life quality and safety in the workplace.

CARE FOR THE ENVIRONMENT Certified with a green seal, FRIATO helps with the sustainability and protection of nature in the whole production process. Sub-products generated by NUTRIZA/FRIATO are processed

Refrigerated chicken breast

Frozen wings

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F R I AT O

and marketed with raw material. In addition to being used intelligently, these contribute to the preservation of the planet. In addition to having its own timber production –which contributes to 80% of the power used in the boilers, the reforested eucalyptus further contributes to other companies of the group. Tomazini adds, “all water used in the kill floor goes through a waste water treatment before being returned clean to nature. All residues are treated within the environmental standards that are supervised by competent organs before being released to the environment.”

INVESTMENTS AND THE FUTURE “Recently, 300 million Reais were invested and the purpose is to continue with the investments. This year, the investments are expected to be 116

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Company Information NAME

Nutriza Agroindustrial de Alimentos S/A INDUSTRY

Agroindustrial HEADQUARTERS

Pires do Rio, Goiás FOUNDED

1993 PRODUCTS/ SERVICES

10 million Reais,” the president states. The inclusion of the latest project of the group should be noted: located in the municipality of Uruçuí, in Piauí. The Serra Branca Agrícola S/A Project – which is already in soy and corn grains production phase –is part of the planning of the most recent Vertical Industrial Compound, formed by broiler farming, egg incubators, Rations Manufacturing, Chicken farming, soy crushing industry, and poultry slaughterhouse.

“The projection is for works to begin in 2015, and for FRIATO NORDESTE to be completed by 2020,” Tomazini concludes.

To raise, slaughter and industrialize poultry meat MANAGEMENT

Francisco Tomazini: Founder and President Fábio Tomazini: Commercial and Financial Director Giuliano Tomazini: Supply Director

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FRIGORÍFICO SILVA

Quality standard is the strength of the brand In constant evolution, Frigorífico Silva invests in human capital and industrial technology to keep its tradition as well as the market’s acknowledgment Written by Flavia Brancato Produced by Karla Sohn

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T

he consolidation of the strong brand and the consistency of the production quality is the result of hard work and determination for over 40 years. Four decades ago, Frigorífico Silva became the brand that is synonymous with commercial credibility, social-environmental sustainability and product quality, with much effort and through constant investments both in industrial parks as in its organizational culture. The mark of its success is due to the quality and the strength of the brand as a manufacturer of a Premium product, serving the domestic and global market.

Being one of the few Brazilian companies able to export beef globally, the company has a modern industrial park, which observes the most stringent international quality standards. For that, the President of Frigorífico Silva, Ivon Silva, points out “we are a company focused on quality, and we seek quality as the foundation of our brand; that is, from the raw materials to

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“We are a company focused on quality, and we seek quality as the foundation of our brand; that is, from the raw materials to the table of our end consumers” – President of Frigorífico Silva, Ivon Silva

the table of our end consumers.” The company organization strives to maintain respect towards collaborators, raw material suppliers, as well as to retailers, and tries to uphold environmental accountability. “Another factor is that it is relevant is the constant investment in industrial technology and human capital for us to keep the standard of our products which are domestically and globally acknowledged,” the President states.

Production and facilities Care in the purchasing of raw materials, cattle transportation logistics, humane slaughter, the excellent cold facilities and the careful maintenance of industrial quality control are just some of the main characteristics of Frigorífico Silva, which back a quality product acknowledged by consumers. Giving priority to quality instead of quantity, the company strategically operates with just one meat packing plant in the country. In markets abroad, a recent enlargement and modernization of the industrial plant enabled the company to be one of the two certified to slaughter in the w w w. f r i g o r i f i c o s i l v a . c o m . b r

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SR F O ILGEOTR RÍO FL I C O S I LVA

state of Rio Grande do Sul, exporting to the European Union.

The brands related to certified British breeds, such as Angus and Hereford, are raising interest in foreign markets due to the taste and softness of these meats, as can be observed in the demand for Argentinean and Uruguayan meat, because these are precisely focused on the slaughter of these breeds. Silva even notes the relevance of obtaining their own brands to serve the domestic market, “today, Frigorífico Silva is an industry that holds one of the brands most desired by the consumer in its segment. Best Beef is the mother brand that has in its portfolio another five successful brands, in addition to being nationally known for the specialty producing cuts with its own brands for big chains.”

As a result, the company received several requests to customize special

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Display

products with its own brands for big retailer chains. Today, Frigorífico Silva has in its production line a segmented and rigorous quality control to cover such specific demand. “Customization for the client is one of our greatest bets. Currently, the market is focused on the big European and North American markets, that is, continuing to produce what the consumer demands and supermarket chains’ need is part of our specialties,” Silva explains.

Therefore, the company is currently going through a big industrial expansion and evolution phase, precisely to cover the new market demands, whether these arise from the current economic situation, or are based on consumer behavior. Ivon Silva further admits that “a new factory is being born with the purpose of facilitating the management of big w w w. f r i g o r i f i c o s i l v a . c o m . b r

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F R I G O R Í F I C O S I LVA chains in their retails and to make it practical for the day-to-day of the end consumer.”

In addition to the infrastructure for slaughter, deboning, refrigeration of carcasses and meat, and packing and storage, the company has other structures to guarantee the quality of the marketed product. Among them is a meat flour factory with an integrated grassing content combustion system, delivery with strict temperature control, premises for the processing of edible offal – enabled for exports to different UE countries, in addition to a processing unit for animal fats destined for the cosmetic industry.

The compound further adds a whole facility with a clinic, casino, entertainment area, resting area, and events hall, and offers dental, gynecology, psychology, ergonometric and physiotherapy care for the employees.

Trombini is among the largest manufacturers of corrugated cardboard packaging and multiwall paper bags in Brazil and is a leading in Latin America.

Being reference in this market for decades in Brazil, Trombini cares about the environment and the life quality of the people in the region. This way, Trombini has planned forests (FSC® certified), with extensive recycling of packaging paper and absolute atmospheric environmental, hydrous and sound control of its industrial units.

Rodovia RS 122 – Km 61 – Distrito Industrial Farroupilha – RS – CEP 95180-000 Fone: +55 (54) 2109-7000 www.trombini.com.br

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Water treatment

Challenges in the sector and professional qualifications “The biggest challenges today are in the search for raw material on a large scale and in covering the demand for our Premium product, which is well acknowledged in the market. Maintaining the product’s value while producing at great scale sometimes becomes a challenge, but since we act in a segmented market, we do not always consider it a challenge; rather, a reason to further specialize ourselves in the selection of our target user,� says Silva.

As ways to alleviate any potential obstacles, the company further strives for optimization and efficient ways of managing the operational system.

Minimizing waste, continuous improvement in cost reduction, together w w w. f r i g o r i f i c o s i l v a . c o m . b r

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C O M PA N Y N A M E

Quality control visit for supermarket chains

Water treatment

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with the increase in productivity, are some of the examples applied by FrigorĂ­fico Silva in search for the best possible performance.

Concerned with keeping and developing good entrepreneurial management, the group works with different strategies to bring work teams closer, created by the company itself, for the better performance of the industrial production team, as well as career path and professional growth incentives for our collaborators.

SECTOR

Quality Programs With a view towards always maintaining a good quality product and standard production of safe foods, Frigorífico Silva has a technically trained quality control team, which assesses and supervises all stages of the productive process, from the reception of cattle to the delivery of the foods produced. The company has implemented different international quality programs, with their supervision and procedures being applied on a

“Customization for the client is one of our greatest bets.

Currently, the market is focused on the big European and North American markets” – President of Frigorífico Silva, Ivon Silva

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F R I G O R Ă? F I C O S I LVA

President Ivon Silva and Commercial Director Gabriel Silva

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daily level to the whole industry.

A perfect example is sustainable Best Beef.

The president explains that “the brand favors small producers with continuous production supervision in the properties certified by the slaughterhouse, in addition to guaranteeing that slaughtered animals are raised in deforestationfree areas.” She ends saying that “this program also covers the social and familiar sustainability of producers, guaranteeing that there is no child labor at the farms, and guaranteeing the constant attendance of children to schools.”

Together with the aforementioned quality programs, the company performs two types of laboratory controls; physical-chemical and microbiological, which are carried out following a timetable of sampling and analysis, seeking to test and certify the quality of the products and the conditions in which processes are carried out.

In order to perform analysis control, the Quality Management of Frigorífico Silva has 20 quality supervisors recording and testing the equipment used everyday. All samples collected by the quality control systems are recorded and forwarded to the labs of the Federal University of Santa Maria and the Federal University of Rio Grande do Sul. Test results are audited by the Federal Inspection Service responsible for the facilities.

Company Information INDUSTRY

Food HEADQUARTERS

Santa Maria / Rio Grande do Sul FOUNDED

1942 EMPLOYEES

850 PRODUCTS/ SERVICES

Production and industralization of beef MANAGEMENT

Ivon da Silva Junior, President

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ABIEC:

Brazilian Beef Exporters Association

In 2014, ABIEC reinforces sanitary and reliability concepts to promote Brazilian beef abroad Written and produced by: ABIEC e CDN

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ABIEC Brazil is committed to maintain the sanitary status and access new markets to reach US$ 8 billion in beef exports

Gulfood 2014

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark” – Antônio Jorge Camardelli, President of ABIEC 132

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With a 288% growth in exports in less than ten years, Brazil has maintained the leading position in the worldwide ranking of beef exports in 2013.

The Brazilian Beef Exporters Association (ABIEC) – which was established in 1979 and today includes 26 member companies in this sector, accounts for 95% of the Brazilian beef exports – has had active participation in promoting these products.

ABIEC indicates sanitary status guarantees offered by the industry and the country as key factors for the success of the segment, besides the increasing competitiveness, the efficiency in cattle production and the high quality standards of the final products.

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark. We’ve had major achievements last year, such as the evolution of the Brazilian sanitary status and the increase in share of the main markets. That can help us better negotiate the inclusion of our product in the list of new potential buyers”, explains Antônio Jorge Camardelli, ABIEC’s president.

In 2013, Brazil registered a record in beef exports reaching US$ 6,6 billion, a 13.9% growth in comparison to 2012. “In addition to this

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Key People

AntĂ´nio Jorge Camardelli President of ABIEC

significant result, we also had other important launching such as the electronic seal which is a technology that can reduce the time spent on bureaucratic processes in cargo authorization in our country�, says Fernando Sampaio, the association executive director. ABIEC expects to have the first commercial results of this technology still in 2014.

In addition, the Association also predicts a very

Fernando Sampaio Executive Director of ABIEC

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Gulfood 2014

ABIEC

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active year in the sustainability area, which has been increasingly gaining importance and representativeness in Brazilian agribusiness. “We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers,” informs Sampaio.

HISTORY The ABIEC was created as a response to Brazil’s low share in the global trade of beef in the late 1970s, repressed by numerous requirements and protectionist policies in the foremost markets of that time. Establishing the Association also enabled beef producers to develop a direct channel with national government agencies and international organizations, greater protection of the industry’s interests, and expansion of efforts to reduce trade barriers. w w w. a b i e c . c o m . b r

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ABIEC

“We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers” – Fernando Sampaio, Executive director of ABIEC 136

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“Less than a decade ago, Brazilian beef was not on the agenda of issues to be discussed on international forums, with total sales near the US$ 500 million mark per year. Today, we are very proud to know that we managed to change this reality by reaching more than 13 times the exports value”, stated ABIEC President, Antônio Jorge Camardelli.

Association Information INDUSTRY

Food HEADQUARTERS

São Paulo, Brazil

ABIEC IN NUMBERS: Results of beef exports from January to December 2013

F O U N D AT I O N

1979

• Revenue: US$ 6,6 billion • Tonnage: 1,5 million metric tons • Major Buyers: »» Hong Kong »» Russia »» European Union »» Venezuela

NUMBER OF A S S O C I AT E S

26 companies KEY PEOPLE

President: Antônio Jorge Camardelli Executive Director: Fernando Sampaio

Balance of Cattle in Brazil • 171 million hectares (422.5 million acres) of pasture • 1.2 head of cattle per hectare • Total herd of 212 million head • 40.4 million head slaughtered • Approximately 20% of the beef produced in Brazil is exported

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