w w w.fdf wor ld.c om | D e c e mbe r 2014
Canadian expansion preps for growth across the prairies Are You Ready For the Holiday Rush
TOP 10 Social Media Platforms
e d i tor ’ s c o m m e n t
YEAR’S END. H e r e w e a r e a t the end of another year, and once again it’s time to take stock of how far we’ve come this year and start planning for our growth in the year ahead. Are you up to date on ways to connect your brand with your audience? We’ve got you covered with the top ten social media networks you need to be using right now. Are you prepared for the holiday rush? We’ve got you there, too. And if you just need some inspiration—with a side of pizza— check out our exclusives with Papa John’s and Domino’s, two franchises making the leap toward new growth in uncharted territories. So read on, enjoy, and start thinking about all the potential that 2015 has in store.
Sasha Orman Editor Sasha.Orman@wdmgroup.com
3
share happiness
Contents
Features
20
8
Supply Chain Courting
the Affluent Market
Franchising Domino’s Pizza goes North Retail Getting Ready for the Holiday Rush
14
Top 10
Social Media Platforms every bar and restaurant should get to know
26 5
44
Contents
División Industrial Pecuaria
64
36 Mariani
ompañia de C Galletas Pozuelo
78
124
64
Company Profiles Corporacion San Diego
Europe 36 Mariani
Latin America
International Meal Company of Mexico Patates Dolbec
ICB Alimentos
44 División Industrial Pecuaria
104
58 Association: COMECARNE (Mexican Meat Council) 64 ICB Alimentos 78 Compañia de Galletas Pozuelo 92 Corporacion San Diego 104 International Meal Company of Mexico
116
130
CANADA 116 Papa John’s Canada
Papa John’s Canada
124 Patates Dolbec
138
Grupo Bom Jesus
Australia 130 Zambrero
Brazil 138 Grupo Bom Jesus 7
F RAN C H ISIN G
Domino’s Pizza goes North Domino’s Pizza has been growing rapidly over the last few years, and now that growth is taking the brand into new challenges and opportunities in Oslo, Norway Writ ten by: Sasha Orman
It’s a great time to be Domino’s Pizza. In July Domino’s Pizza announced a 5.4 percent increase in domestic sales growth for its 2Q 2014 fiscal year quarterly report, plus an even more impressive 7.7 percent growth in international same store sales. In October the brand followed that up 7.7 percent domestic same store sales growth and 7.1 percent growth internationally in Q3. That marks the 83rd consecutive quarter of international same store sales growth for the company, and that is no small feat. Instead of sitting on its same store growth laurels, the pizza
empire is using that cache of growth and revenue to push outward into new markets and strengthen its standing as one of the top franchises in the world.
Even the biggest franchise chains in the world still have plenty of emerging markets left to explore, and some of those markets are more cosmopolitan than you might imagine. While parts of Europe have reached market saturation, for example, still other parts of the continent offer plenty of untapped opportunities. Norway is one such area. Existing outside of the European Union, 9
F RAN C H ISIN G
Exterior of a Domino’s outlet in Oslo, Norway
One of the Domino’s delivery cars in Oslo, Norway
“Establishing ourselves in Norway provides an excellent opportunity for our brand to continue its global momentum” 10
December 2014
the Scandinavian country is not among the first that many franchises consider first for expansion. With a population of 4.7 million and growing, and with 20 percent of that population concentrated in its capital city alone, it’s also a country with a lot to offer. With this in mind, Domino’s Pizza took the plunge this year with the opening of its first ever location in Norway’s capital city Oslo. This first location in Oslo opened its doors on August 30 as a partnership between Domino’s Pizza and the franchising partner that has previously helped the brand expand into Germany and Denmark. Birgir Thor Bieltvedt, CEO of Domino’s Germany master franchise, has taken on the role of Chairman of the Board overseeing a plan to eventually open three Oslo Domino’s store in total by the end of 2014. “Whether Oslo, Iceland or any other market across the globe – the master franchisee partnerships Domino’s forms with our local and regional business owners is the most critical element of our global growth and success,”
D o m i n o ’ s P i z z a go e s Nort h
Domino’s kitchen and preparation area
says Chris Brandon, Domino’s Pizza spokesperson. “No matter the country, the people make the difference – and giving our master franchisees everything they need to run a successful business is something we put a great deal of emphasis on as we continue our global momentum.” “Oslo is a terrific market for
pizza delivery, and we are very excited to deliver the one-of-a-kind Domino’s experience to Norway,” noted Bieltvedt in a press release announcing the launch. “It means a lot to be the first to bring the people of Oslo our delicious, quality pizza that is so loved around the world.” Domino’s Pizza may be popular around the world, but every part 11
F RAN C H ISIN G of that world has its own particular tastes. Any time a restaurant chain enters a new cultural region, considerations have to be made toward acclimating to that new region’s preferences and ingredient availability. This is certainly a consideration being made at Domino’s expansion into Oslo, where consumers can choose from internationally popular toppings like pepperoni and mushrooms or more regionally targeted fare like tuna and shrimp or the meatballs and ham combination which comes on the “Norwegian style” pizza in its newest menu. In Norway, as well as other international Domino’s franchises, the brand is leaving procurement up to the
“Norwegian style” pizza
12
December 2014
individual franchisee in order to both save on cost and allow some autonomy to its global outlets. “The master franchisee will be responsible for executing supply chain and logistics, as is the case with all countries outside of the US and Canada,” says Brandon. “Each region around the world is able to customize their menus to satisfy local tastes. Oslo will be no exception.” Domino’s Pizza still has a lot of growing left to do, and a lot of untapped markets in which to find new audiences. “There are still many markets around the world that Domino’s would love to be a part of,” says Brandon. “We will continue looking for the right time, the right places and the right people to make it happen.” But right now, the concentration is squarely on building out Oslo to make this latest expansion project a success. “Establishing ourselves in Norway provides an excellent opportunity for our brand to continue its global momentum,” said Ritch Allison, Domino’s Pizza Executive Vice President of International, in the
D o m i n o ’ s P i z z a go e s Nort h
Domino’s Pizza Norway store presentation
“Establishing ourselves in Norway provides an excellent opportunity for our brand to continue its global momentum” – Ritch Allison, Domino’s Pizza Executive Vice President of International
launch press release. “With this outstanding local leadership team in place, we feel that Domino’s has terrific potential to offer an unmatched pizza experience to the people of Oslo.” “Norway, and the Oslo area, presents a terrific opportunity for Domino’s,” adds Brandon. “With the right people in place, we foresee this being a terrific market story for our brand – and a terrific thing for the people of Oslo!” 13
RETAI L
Getting Ready for the Holiday Rush
How are the top retail outlets preparing for the busy holiday season? Writ ten by: SASHA ORMAN
15
RETAI L The retail industry has its ups and downs throughout the year – but nothing comes close to the rush of the holiday season. While specialty retail stores prepare for an influx of consumers interested in gifts for friends and family, grocery stores are preparing for consumers needing ingredients for the perfect holiday dinner or family brunch. Having a successful holiday season has everything to do with smart preparation in the months leading up to the holidays. How do the top retailers get ready for the most wonderful – and by far the busiest – time of the year? Hire Enough Staff For the Job Having an understaffed and overworked team is one of the quickest ways for a busy holiday rush season to go downhill. Long lines lead to frustrated customers, who in turn are likely to take those frustrations out on the staff you do have on board – when those employees are already suffering from long hours and fatigue, angry customers can be the last straw that can cause them to check out, exacerbating the situation and sending your store into a downhill 16
December 2014
spiral of poor customer service. The key to fighting this is ensuring that you have more than enough staff to keep lines short and your customers satisfied. Wal-Mart is one of many major retailers that have committed to hiring more seasonal employees this year in order to cut down on long check-out lines and improve consumer perception. “We are committed to making sure our customers can find the products they want for Christmas at low prices and can get through the checkout lanes quickly,” Gisel Ruiz, COO of Walmart US, told Fortune magazine. According to that report, the retail chain is hoping that its commitment to hiring more seasonal employees could be the boost that it needs to improve flagging sales by enticing consumers looking for a smoother
‘Having a successful holiday season has everything to do with smart preparation in the months leading up to the holidays’
Walmart is committed to making sure customer satisfaction is a priority during the holiday season holiday shopping experience.
Staff wellbeing also improves customer service, a large advantage during peak times
Consider a Smart Use of Specials and Deals According to USA Today, consumers are planning to spend more on average than usual this year over the holidays – but that doesn’t mean they’re willing to spend more than usual on the items that they buy. On the contrary, surveyed consumers are planning on buying presents for a wider range of friends and family, and are searching 17
RETAI L for deals and specials more than ever before. “Sales and discounts were listed as the most important factor influencing their decision to shop at a particular retailer during the holidays by 74.7% of shoppers,� reads the report, noting that consumers this year are placing a higher priority on sales and discounts than on the quality of the products that they buy. With the advent of e-commerce and mobile apps, a serious shift in the way that consumers look for details and discounts has begun to emerge. To ensure
18
December 2014
G e tt i n g R e ady for t h e Hol i day R u s h
Target is a good example of wholesaler who specialises in providing exclusive product deals at low prices to suit their customer base that your customers are able to take the best advantage possible of what your stores have to offer, now is the time to ensure that your mobile and social engagement capabilities are at their best. Make Sure Your Selection is On Point – For a Range of Price Points Because many consumers are planning to spend more this year, but
only in terms of quantity over quality, smart retail chains are focusing on providing consumers with the best quality products possible within a wide range of price points. This can help consumers who are looking for value and a good deal as well as a strong lineup of products. Fortune magazine reports that Target among others is focusing heavily on providing consumers with cool exclusive products at low prices. 19
s u pply ch a i n
20
Month 2014
Courting the Affluent Market What every beverage and spirits brand should know about marketing to a choosier clientele W r i t t e n b y : S asha O rman
21
s u pply ch a i n Every market research company has a target demographic it’s aiming to learn more about. At The Affluence Collaborative, it’s all in the name. The company is dedicated to helping marketers target affluent consumers across every category, including those within the foodservice sector. But while one can judge a car by concrete mechanical standards, what consumers look for in a beverage is a little more obscure. So this month we caught up with Andrew Sacks, President of The Affluence Collaborative, for some Q and A on the beverage industry and where it – and your brand – fits in with the affluent lifestyle. FOOD, DRINK Franchise: Younger affluent demographics reportedly have a strong attraction to unique one-of-a-kind items. How would a beverage company capitalize on that? ANDREW SACKS: I think that’s something that is true not only of the younger affluent, but of all affluence. One phrase that we’ve coined to define the affluent market is “separatists.” In everything and every part of their life they’re looking 22
December 2014
Veuve Clicquot Indulgence boxset
“Ultimately the question for all categories is: how can you personalize on a mass basis?” – Andrew Sacks, President of the Affluence Collaborative
Court i n g t h e A fflu e n t Mar k e t
for a different experience. Service brands – hotels and automotive brands with customized products – can obviously do that much more easily than product brands. So it’s a good question: how can spirits brands capitalize on that? Ultimately the question is: how can you personalize on a mass basis? The answer we keep coming back to is that it’s really hard to mass personalize in any meaningful way – at least in a way that’s going to be meaningful enough to the affluent consumer. So the question becomes: is there enough margin in any one product to personalize to that degree? There are some simple ways to do it. On every Blanton’s label are a couple of blank spaces to be filled in by hand, to tell you from what barrel the bottle was poured and on what date it was poured. Ultimately all personalizing, if it’s well done, requires some handwork or some personal attention. That’s a real commitment – if somebody’s selling one or two million cases, how they start to think of that is challenging. One other way to do it is for brands to come out with a very limited edition flagship product that might only be a thousand
The ultimate limited edition, Rémy Martin Louis XIII Rendez Vous 2000 pieces, and that is marked up like a [Hennessy] Louis XIII. At $1,800 a bottle, you can afford to customize. Then I think there are ways to do it through different types of packaging for different seasons. Veuve Clicquot is a brand who has created a oneof-a-kind feel through doing things in series – a Pucci box one year, or a neoprene case another year. There’s always that thing to look for. FDF: In your studies you touch upon the loss of something called the “concept of capture” in younger consumers. Do you have any insight on how that can affect brands and how they can overcome it? AS: I don’t think that brands are going 23
s u pply ch a i n to lose volume by not dealing with it, but I think it’s a huge opportunity for a brand to take note of it and capitalize on it – and of all the categories that I can think of, spirits is one where “capture” – the idea of “meaningful time” – is pretty well capitalized on. You can see all the spirits ads that show groups of friends having a great time together – that is capture. Capture is really helping people to appreciate the things that they have in their lives. I think spirits goes there pretty naturally. Certainly nobody in spirits wants to show somebody drinking alone! Honestly, I think the concept of capture is best spoken about directly. We all have these great experiences in our lives. What are we doing to have the most gratitude for those experiences and deposit those in the life experience bank? In terms of what spirits companies could do, it’s really figuring out ways to help celebrate things. There’s a great tradition at the 21 Club in New York where many prominent New York families, upon the birth of a child, will put away a special bottle of cognac or champagne. Then they would go celebrate their twenty-first birthday at 24
December 2014
The ‘21’ Club in New York
“Capture is really helping people to appreciate the things that they have in their lives. I think spirits goes there pretty naturally” – Andrew Sacks
Court i n g t h e A fflu e n t Mar k e t
21 Club with that bottle that they had put away twenty-one years ago. It’s ways of turning things into occasions, ways of reinforcing the specialness of occasions and the gratitude. There are a lot of social media opportunities with capture. There are great promotional opportunities to ask people to share their important moments that a brand is associated with, and by taking the time to write something, people are putting those
memories in their bank. If a brand can be successful in getting a client to share an experience they had, then that brand grabs onto an important moment in their life and becomes a kind of mnemonic for those times. On the website: We conclude our chat with Andrew Sacks, exploring how to avoid the dreaded “passé” label and which brands are doing things right.
25
TO P 1 0
Social Media Platforms every bar and restaurant should get to know Written by: Sasha Orman
27
top 10
Whether you choose to use them or not, practically every business is at least familiar with today’s gold standards of social media – Twitter and Facebook. But they aren’t for everyone, and maybe a smaller or quirkier form of social media is more your speed. Even if your business already uses Twitter and Facebook effectively, it’s a fact that younger demographics are drifting away from Facebook toward other platforms – if you want your brand to stay fresh and relevant, you have to be there to meet them in these alternative social media arenas. Which social media platforms should your restaurant start getting involved in? Here are some smart candidates. All ten might not be a good fit for you, but you’re sure to find at least one that could click with your target demographic and your brand’s own unique style. 28
December 2014
09 UNTAPPD www.untappd.com
Untappd started out as a check-in app for b consumers to gameify the drinking process sharing their beer sampling experiences wit further allows breweries and brewpubs to g over its available beer list and the ability to in
So c i al M e d i a P latfor m s
10 ELLO www.ello.co
Rogue social media service Ello made waves in late September, the stylish ad-free platform being touted as a “Facebook killer.� Will consumers still be talking about the platform in a year’s time? That much is up for debate. But while the iron is hot, smart businesses will want to explore the app to see learn how it works and how ad-averse consumers are connecting. If nothing else, the nature of the platform could be an inspiration toward more inspired, engaging, and authentic communication in your social media marketing campaigns.
D
beer enthusiasts, allowing s by earning badges and th their friends. Today Untappd get more involved with control nteract directly with fans. 29
top 10
08 CHIRP www.chirp.io
Emerging platform Chirp reads like a marketing campaign dream come true. Like beacon technology in app form, a user can broadcast an image or message – a chirp, if you will – that can be readily picked up by anyone else in the area who is also using the app, regardless of whether or not they are following you specifically. It seems that the app is still working its way toward mainstream use, but it’s already winning design awards and picking up steam with early adopting retailers like Topshop. If it catches on with enough users, it could become a valuable tool for restaurants in dense and busy areas like malls and metropolitan centers.
30
December 2014
So c i al M e d i a P latfor m s
06 YELP www.yelp.com
07 SNAPCHAT
www.snapchat.com
There has always been something to learn from platforms that let consumers voice their opinions about your brand in an open and uncensored manner. But Yelp is a platform in flux right now, frustrating business owners and consumers alike even while they continue to rely on the rating system and profits continue to rise. Using the platform advantageously as a restaurant can be difficult, but some have found success in subverting the model, gaining local publicity through quirky use of the rating system like purposefully courting ironic bad reviews.
Snapchat is basically a chat application built around images that purport to self-destruct in six seconds – how can you parlay that into a marketing campaign for your restaurant? As a matter of fact, franchises like Taco Bell have been making use of the ability to blast pictures and longer-lasting Snapchat stories to a legion of followers at once, enticing consumers to stay connected by offering special coupons and deals exclusive to its Snapchat followers 31
top 10
04 SWARM
www.swarmapp.com
It wasn’t long ago that Foursquare w social media platform for interacting customers, offering flash discounts f in the area and special perks for “ma your locations. But everything chang year Foursquare spun off check-ins functionalities into brand-new sister
05 TUMBLR www.tumblr.com
Tumblr is best known as a forever scrolling blog platform – but it has also been successful in building tight communities that are warm and welcoming of anyone capable of contributing strong and engaging content. Whether you’re a single restaurant or a chain like Tumblr early adopter Denny’s, fun GIFs and conversation can help consumers see you less like a brand and more like a friend. 32
December 2014
was a key g with for consumers ayors� of ges, and this and other r app Swarm.
So c i al M e d i a P latfor m s
03 PINTEREST www.pinterest.com
Pinterest is a bit of an odd duck as far as social media platforms go, but no one can deny its massive draw and appeal among specific audiences. According to Business Insider, Pinterest has taken off within the fast casual market for simply taking advantage of Pinterest’s highly visual setup to put your menu on display and engaging with consumers through promotions like pinning contests that have the twofold benefit of creating a bond with your customers while they help spread the word to their own followers about your brand.
33
top 10
02 VINE www.vine.co
For years, Youtube has always been a recommended platform for dynamic brands with a lot to say. But who has the time to watch several-minute-long videos these days, let alone script, create, and edit them? Youtube still has a strong place, but now you have options. Vine limits videos to six punchy looping seconds, allowing you to create fun, lighthearted, and above all shareable videos that can help you show off your product while telling engaging stories about your brands and consumers.
34
December 2014
So c i al M e d i a P latfor m s
01 INSTAGRAM www.instagram.com
Consumers today are increasingly visual, and no social media platform has more of a focus on the visual than Instagram. The platform may be a Facebook subsidiary nowadays, but it managed to survive a lot of the initial backlash over that acquisition and continue to thrive – it has also weathered the initial introduction of sponsored posts (read: advertising) without experiencing a significant user drop-off, signaling that those users are open to thoughtful and wellproduced branded content. Whether you decide to use the sponsored content model or use word-of-mouth and the hashtag system to build a following organically, Instagram still has a lot of life left in it as a viable way to link consumers to your brand. 35
Mariani Group
Building a Company Culture for Future Growth People, products and aggressive growth strategies set Mariani ahead of the competition. Written by: Abigail Phillips Produced by: James Pepper
37
c o m pa n y n a m e
QA Laboratory
T
The quest for fruit quality began in 1906 38
December 2014
he Mariani brand took root in 1906, when Paul A. Marini purchased his first four acres of land in the California, Santa Clara Valley and planted fruit trees. Mariani is owned and operated by third and fourth generation family members. It is the largest independently owned producer of dried fruit in the world, producing over 125 million pounds of fruit each year. The Mariani brand has been synonymous with innovation and has been first to market with cutting-edge breakthroughs in the dried fruit industry. Mariani products can be found in
F ood , D r i n k & F ra n c h i s e
Prune processing
over 40,000 retail outlets in the United States and in over 52 countries around the globe. Developing the European sector of the business As the company continued to grow both in the United States and as a global brand, it was decided by the executive team to pursue opportunities in the European sector. It was at this stage that Andy Humphries, Director, Mariani Europe, joined the business. As a newly formed team, Humphries and the rest
“One of our main priorities as a business is to offer our customers a full service package” – Andy Humphries, Director, Mariani Europe
w w w. m a r i a n i . c o m
39
Mariani group
Key Personnel
Mark Mariani CEO
of the European executive board made the decision to pursue industrial production over and above retail production. “We wanted to establish ourselves as key players in the industrial market before branching out into the retail sector.” says Humphries Mariani Europe’s roll out strategy was three fold: The first priority of the business was to solve its logistics requirements and build a distribution hub in Europe. In order to do this, the company formed a partnership with VAT Logistics in Rotterdam, which allows far greater flexibility within its supply chain. “It enables our customers to order what they want, when they want, and
PROUD LY
Growing, processing and marketing fruit. Cherry Central is the industry leader in red tart cherries, apples and blueberries and is also a major supplier of cranberries, strawberries, pomegranate arils and asparagus grown on farms across the United States, Canada and worldwide. www.cherrycentral.com
F ood
how much they want, from full pallets down to cases, as dried fruit supply isn’t just about quality, innovation and cost, it’s about giving the customer the flexibility when ordering as well.” The second element of its strategy focused on having the right team of people accessible to its customers. “One of our main priorities as a business is to offer our customers a full service package. Our sales team are dried fruit experts, and partner with our clients to develop solutions for their business needs and requirements,” says Humphries. The third key aspect of the plan is centered on product development and marketing. The company made a decision early on in its development that it wanted to do more than supply a core commodity – it wants to focus on value added. “Having the right product line is critical to success,” says Humphries. Focusing on value added The decision to focus on value added was based on extensive market research, carried out by Mariani. “We spoke to our customers and they asked for one of two things,” explains Humphries. “They want a core product at the right price, but they also want various product ranges. We worked on a value added range for this very reason. We want to be a full service provider for our customers, big or small. “If you take the core commodity, you have three key steps: First, process it using existing
Packing line: bulk product
“Having the right product line is critical to success” – Andy Humphries
w w w. m a r i a n i . c o m
41
Mariani
means to add value. Second, add an additive to make it more functional. And third, develop an innovative product that is first to market. Value added is the thrust of what we do and it is driven by customer demand,” he says.
Doy Pack: Cranberries
42
December 2014
Building a solid foundation Having the right product is one thing, but without a solid team and a strong company culture any business will find it hard to get off the ground; Humphries and his team understand this. “We subscribe to five key principles as a business,” he says. “One is Mutual Respect for each other, the second is We Embrace Change, third is Continuous Improvement,
F ood
Company Information Industry
Food headquarters
Vacaville, CA founded
1906 employees
Not disclosed Head Office Vacaville, CA revenue
the fourth is Never Compromise on Quality and the fifth is Build for the Future.” Mariani Europe has ambitious plans for expansion and Humphries believes these core principles will help it achieve its goals. Within the next five years Humphries would like to see the business turnover $100 million in revenue and be recognized as a value added supplier of products and ingredients across the continent. “The strategy is right, the people are right and the products are right. We have a culture where our employees believe in our core values. People are the most fundamental cornerstone of our strategies and they are focused on driving growth for the future.” he concludes.
Not disclosed products/ services
Food Production
w w w. m a r i a n i . c o m
43
High Standards that reach the Consumer’s Plate
DIP takes advantage of its resources to optimize operations, provide commercial growth and improve customers’ solutions.
Written by: Mateo Rafael Tablado Interview and translated by: Rebecca D. Castrejon Produced by: Taybele Piven Interviewee: Eddy Wever, CEO of DIP Juan Pablo De León, VP of Business Developmentsof DIP
45
Division Industrial Pecuaria
A
ll markets are subject to global standards to regulate trade conditions in terms of competition and for the welfare of consumers, producers, suppliers and the environment. Corporación Multi Inversiones (CMI), the mother company of DIP, follows this direction.
Aliansa is a subsidiary of DIP with operations in Guatemala, El Salvador, Honduras, Costa Rica
CMI is a family-owned multinational corporation with more than 36,000 employees, and a presence in three continents. CMI began operations nearly 90 years ago in Guatemala, and has since grown to eventually become one of the largest business groups in Latin America. Juan Luis Bosch and Juan Jose Gutierrez are the company’s current Corporate Presidents. With a total of seven divisions that work in the areas of milling, fast food, poultry and pork, operations are structured according to each of the business lines of the corporation along with the use of renewable energy and constant infrastructure developments. In 2013, CMI acquired 40 percent of the telecommunications company Telefonica in Guatemala, El Salvador, Nicaragua and Panama. Today Corporacion Multi Inversiones has a stronger presence in Central America and the Caribbean, with offices in Guatemala, El Salvador, Honduras, Costa Rica, Nicaragua, USA, Mexico,
46
December 2014
F D F W orld
Dominican Republic, Ecuador, Andorra, Spain, Italy, Bahrain, India Indonesia, Panama, Puerto Rico, Haiti and Jamaica.
Key People
Division Industrial Pecuaria (the livestock division of CMI) depends on external factors such as the price of commodities like soy, wheat and flour to operate; CMI has also heavily invested in the transformation process to elevate each division into first-world manufacturers. “We have changed our management model to standardize operations in the global market, this allows us the expansion and development of our business units,” said Eddy Wever, CEO of Division Industrial Pecuaria.
Eddy Wever CEO of DIP Wever in an industrial engineering graduated in 1983 from the Texas A & M University, same institution from where he received a Master Degree in Science. Since 1986 he started working for Corporacion Multi Inversiones (CMI), and in 2009 he was appointed Executive Chairman of CMI’s Animal Industry Division, Division Industrial Pecuaria.
Aliansa Headquarters in Guatemala, the strongest Central American company in the manufacture of food for animals w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
47
F D F W orld
Before presiding as Executive Chairman of DIP, Wever developed his expertise with more than 22 years of experience in different affiliate companies of CMI, such as Pollo Campero (a food chain in Central America). Juan Pablo De Leon, Vice President of Business Development and Strategic Management, has nearly 20 years of experience working with multinationals in areas such as logistics, Toledo is another leading
A Concentration of Resources
and growing brand in the region.
Division Industrial Pecuaria is in the process of transforming its operational structure, due to recent management changes implemented
Perfil de proveedor
Â
Number of Employees: 1,167 at corporate level and employment generation of more than 13,000 employees at service station networks Founding Date: 1996 Industry: Importer and distributor of fuels, fuel oil, diesel, gasoline and bitumen; trading approximately 650 millions of gallons yearly in the different segments of the market. Main Service: Meet the need of petroleum products in more than 1,300 service stations, commercial and industrial segments, bitumen and aviation fuels. Recent Projects: In 2013 operations were expanded to Colombia by becoming the largest stockholder in Biomax Colombia, a major business group in the country. Vice President: Fredy Nasser F. Webpage: www.uno-terra.com w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
49
F D F W orld
across all CMI companies. One of these changes is the creation of common service centers for all divisions while continuing to develop and grow brands. The company’s strategic units are: • Poultry products • Pork products • Processed food • Balanced pet food “Our drive is to strengthen our portfolio of products and develop our brands in an effort to be closer to our customer and for our products to reach the Central American market,” says De Leon.
Key People
Juan Pablo De León VP of Business Developmentsof DIP De Leon is the current vicepresident of business development and strategic marketing of Division Industrial Pecuaria. He has worked for nearly 20 years in various companies dedicated to the massive consumer. His resume includes working with multinational companies such as Pepsi Guatemala (now CBC - Central American Beverage Corporation).
The brand Pollo Rey is part of the livestock division of DIP
w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
51
Division Industrial Pecuaria Compliance Through Medical Technology Since 2012, Division Industrial Pecuaria integrated SAP and ERP systems in compliance with corporate regulations. DIP’s automation process facilitates health standards, guaranteeing safety and quality in the handling of raw materials and packaging.
Pollo Rey generates more than 14,000 jobs in the region
“We have strengthened quality control, extending it to our distribution network and logistics,” says Wever.
F D F W orld
Advanced Supply Chain Division Industrial Pecuaria takes advantage of corporate services, such as telecommunications advances, to optimize logistics and distribution. “We rely on our strategic partners for updates in technology, especially the ones used inlogistics,” said Wever. Alliances with Laboratories and Telecommunication Companies
“We use subproducts and cogenerate energy to be selfsufficient” – Juan Pablo De Leon, Vice-presidentof Business Developments for Division Industrial Pecuaria
An important foothold for Division Industrial Pecuaria has been its partnerships with laboratories and research centers, such as the Pan-American Agricultural School “Escuela
Toledo supplies product for Pollo Rey, Pollo Indio, Pollo Campero, Tele Pizza, Domino’s Pizza and TGI Friday’s w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
53
Dentro de la planta de Divisi贸n Industrial Pecuaria
INTEGRAL
SOLUTIONS for regional livestock
productivity We import, manufacture, sell and distribute livestock products of the highest quality, with professional services and advice in El Salvador, Guatemala, Honduras and Nicaragua.
F D F W orld
Agrícola Panamericana”, who they have worked with to improve their livestock. “We work with our research and development allies in regards to genetics and nutrition. It is important to highlight the partnership we have with Zamorano (EAP),” says vice president Juan Pablo De Leon. Prepared Human Resource Human resources management at Division Industrial Pecuaria is certified with academic qualifications that meet HACCP (Hazard Analysis and Critical Control Points) principles.
Production fo the brand Pollo Rey
There are opportunities for advancement within the company based on skills and career plans, as well as management support for both professional and personal skills such as technical and academic training. Another incentive to working at DIP is that the company offers competitive pay. In sum, these qualities have built loyalty to the corporation, and having qualified and satisfied employees as the greatest asset of the company. “We want for growth and development to be integral,” says Juan Pablo De Leon.
w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
55
Division Industrial Pecuaria
Pollo Rey has farms, hatcheries and processing plants in Central America
Sustainability The environment is an important aspect for Division Industrial Pecuaria, therefore the company works in collaboration with its affiliates to minimize its environmental footprint, leveraging resources such as manure, which is used as a friendly fertilizer. Inside the farm for Toledo brand
56
December 2014
The company performs a strict practice of reforestation on each farm and treated water
F D F W orld
meets green standards. At the end of 2014, DIP will complete the installment of biodigesters in pig farms.
Company Information name
“We use sub-products and cogenerate energy to be self-sufficient,” says De Leon.
Division Industrial Pecuaria (Corporacion Multi Inversiones)
Growth Projections Industry
DIP is currently focused on the expansion of its brands Pollo Rey in Guatemala, Honduras and Costa Rica; Pollo Indio in El Salvador and Pollo Toledo into new markets through investments, partnerships or acquisitions.
Poultry and pork products
Additionally, it is planning for an increase in production capacity in the fields of processed foods and balanced pet food.
founded
headquarters
Guatemala, Departament of Guatemala, Guatemala
1960 emplOyees
“We depend on innovation for the development of new products, and to gain quality, good content and better costs,” said Wever.
10,000+
“We rely on our strategic partners for updates in technology, especially the ones used in logistics”
www.corporacionmultiinversiones.com
website
– Eddy Wever, CEO of Division Industrial Pecuaria
w w w. c o r p o r a c i o n m u l t i i n v e r s i o n e s . c o m
57
Mexican Meat Council: (COMECARNE)
Written by: Paulina Olvera, Communications Manager Produced by: Taybele Piven
59
CO M ECARNE
EXPOCARNES is a meat industry international exhibition and convention, celebrated every year
Meat Industry International Exhibition and Convention.
T
he best Forum for the representatives of the Meat Industry Worldwide: packers, suppliers, industry and sector specialists. Three days of exhibition, master & technical conferences, and specialized technical seminars. EXPOCARNES Expocarnes is a world-class show where you will find the perfect environment to do business. COMECARNE
60
December 2014
lat i n a m e r i c a
EXPOCARNES 2015 will be celebrated next February, 18-20, in Monterrey, Mexico
The Mexican Meat Council, seeks to promote and encourage the development of the meat industry, it is for this reason that calls for all links in the chain to participate in this great event.
Key People
CINTERMEX The place is the International Business Center, considered Mexico’s North’s best location for expos and conventions, thanks to its more than 25 thousand square meters (82,000 sq. feet) within Parque Fundidora. Close to 5 star hotels. For more information visit http://expocarnes.com/
Arturo Pardo Arroyo President in charge of the organization and the events of the council
w w w. c o m e c a r n e . o r g
61
CO M ECARNE
Expo Carnes has been named the gateway to Latin America’s meat industry
62
December 2014
lat i n a m e r i c a
Company Information name
COMECARNE Industry
Meat headquarters
D.F. Mexico founded
1985 members
70 COMECARNE proud sponsor of EXPOCARNES 2015
“The Mexican Meat Council, seeks to promote and encourage the development of the meat industry”
president
Arturo Pardo Arroyo services
Representation and counseling, training and updates web
www.Comecarne.Org www.Expocarnes.Com
– Arturo Pardo Arroyo, President in charge of the organization and the events of the Council
w w w. c o m e c a r n e . o r g
63
Excellency in Local Food Global Brands Representa
What started as a local cafĂŠ shop in 1942 in Santiago, Chile, is no food industry. Written by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Sergio Rojas, CEO of ICB S.A.
d Production and ation in Chile
ow one of the most representative companies in the
65
ICB S . A .
I
t was November 5, 1956 when Vittorio Signorio bought Café Do Brasil in Chile, the first coffee cups store in the country since 1942, which would years later constitute what we now know as ICB SA.
ICB Headquarters
After various acquisitions and organic growth, the company integrated brands such as Van Camp’s in 1987, Marco Polo in 1995, Ferrero in 1999 and Don Vittorio in 2000. They also expanded their activities in the production area in 1999 with the purchase of Juan Bas Alimentos SA, a provider of cold sauces, olives and pepper, which gained the company international clients like Wal-Mart, Burger King and McDonald’s. Given the progressive growth of Café Do Brasil, the company decided to renew under the name ICB SA in the year 2000. In the new millennium, the company introduced a portfolio of more than 400 products from 17 different brands such as Cola Cao and La Piara acquired in 2004, as well as the famous Pringles and Paty integrated into the list of ICB brands in 2006. Today, almost 60 years since the foundation of ICB, the food company has positioned itself as a leader in the production and commercialization of food in Chile, due to its expertise in selecting brands with presence close to the consumer, the integrity of its products, premium quality and
66
December 2014
F D F W orld
representativeness with more than five decades of experience. ICB has led a continuous growth, branding products in the domestic market such as: Marco Polo, Don Juan, Esmeralda, Copacabana, Excelsior, The Astures, Van Camp’s, Don Vittorio, Cola-Cao, Cristian Bustos Ferrero Rocher, Nutella, Kinder, Tic-Tac, Bauducco, Pringles, Kellogg’s, etc. With the creation of ICB Food Services (ICB FS) in 2003, this subsidiary was able to assess logistics of all 1,500 clients, with a portfolio of 500 regular and frozen products. By seeking alimentary excellence as a distributor, marketer and producer, ICB plans to become a standard solution in the dietary needs of consumers in Chile.
Human Resource and brands, the essence of ICB
Key People
Sergio Rojas CEO of ICB S.A. Sergio Rojas is an Industrial Engineer, graduated from the Pontificia Universidad Católica de Chile in 2000. Additionally, he has a certificate in Operational Management and an MBA from the same university. Years later he took a management course at Universidad de los Andes in Chile. Today, he is looking to convey that knowledge and expertise to his students as a professor in Supply Chain Design at Universidad de Chile. Rojas began his business life in June 2001 in Embotelladora Andina, where he served as Operations Planning Engineer. From there he progressed into other areas in the position of Project Leader of Operational Excellence, Head of Planning and Management Control, Deputy Manager of Planning and Management Control, and Assistant Manager of the Production area in March 2008. He joined ICB in October 2009 in the position of Manager of Operations and Logistics, by June 2010 he returned to Embotelladora Andina as Transportation Manager, a position he held for three years until going back to ICB, but now as the CEO of the company.
67
ICB S . A .
All staff have technical training
The Interview In an interview with Sergio Rojas, CEO of ICB S.A., he informed us about the company’s operations and strategies, and well as the future expansions and 2020 projections. Rojas took over as CEO of ICB S.A., since March 2014. He is also an industrial civil engineer who worked for Coca-Cola Andina for more than a decade, being his ultimate challenge the Management of the Transportation area. Marco Polo, one of ICB’s
Aside from his management activities, today, Rojas imparts his business knowledge at the engineering school in the University of Chile.
brands
68
December 2014
F D F W orld
Inside the warehouse in Santiago, Chile
BRAL: What differentiates ICB from other competitors in the food industry in Chile? SR: ICB has over 58 years of history. Its beginnings go back to the acquisition of a small cafe in Santiago, Chile; where the company began to sell products, such as coffee, tea, cocoa, etc. Years later, ICB started the representation of international brands in the Chilean market, being the first Van Camp’s tuna products. Thus, was born what is now the holding of ICB, a major player in the Chilean retail, which differs greatly from its competitors due to an active selection of international products along with a quality production process.
“The partnerships we have with suppliers have enabled the continuous improvement of our service and distribution network, such as the alignment of routes through Roadnet” – Sergio Rojas, CEO OF ICB S.A. w w w. i c b . c l
69
ICB S . A . Additionally, ICB locally produces important brands such as Marco Polo (snacks and condiments), Don Juan (sauces, pickles and olives) and Cola Cao (flavoring and cereals), and commercializes international brands: Ferrero Rocher, Kellogg’s, Pringles, Bauducco and Don Vittorio.
All employees have technical training
Despite our size, we are known for being a very agile company with a professional structure that integrates clear goals and structures management posts, ensuring efficiency in the massive consumer market in Chile.
Colour, flavour, taste, texture... are also important. Choose among our wide range of Cocoa Powders: Natural, Alkalized, Black, Reddish, Lecithinated, High Fat... Experts producing Cocoa Powder.
cocoa@indcresa.com
www.indcresa.com
F D F W orld
BRAL: Which training programs does the company have to develop processing techniques? SR: We are working on implementing 5S in the production plant then moving to TPM. For this, we have just signed an agreement with INACAP, one of the most important technical institutes in the country, so that our people can increase their knowledge and handle new challenges with the best practices. Additionally, we are a few days away from our BRC certification, which will allow us to stay ahead of the game with the highest quality standards in our processes.
ICB’s frozen foods
Excellence is only achieved through continuous improvement processes in all areas: through your staff capabilities, making the most of your resources and with the connectivity among members of the organization and the community. All this should lead to an improvement in the quality of the product or service provided. BRAL: How has automation improved the quality of your brands? SR: We aim to automate every process that adds unwanted variability; with this we are moving towards reducing any risks that could affect our standards. Electronic inspectors and element w w w. i c b . c l
71
c o m pa n y n a m e
Warehouse in Santiago, Chile
“Right now we are working on increasing the production capacity of the plant by adding and extending lines to further strengthen our position in the market� – Sergio Rojas, CEO OF ICB S.A.
72
December 2014
detectors play a major role in our plants. Quality is one of the fundamental requirements in any production environment, because it allows the company to ensure reliability in all procedures. Automation has been a crucial tool in maintaining the highest standards of quality in our products and processes. BRAL: Regarding sustainability, in what way is your production environmentally friendly? SR: ICB has implemented improvements in its processes and facilities in order to reduce environmental impacts. The company has developed energy savings programs and energy efficiency projects of non-conventional renewable sources.
s e c tor
Inside of the production plant
In 2011, the company installed high efficiency lighting based on motion sensors within the warehouse of finished product, achieving a reduction in energy consumption by 30 percent. By 2012, ICB implemented a solar energy heating system to supply hot water to the plant. This measure successfully reduced gas consumption by 20 percent, improving green indicators and reducing greenhouse gas emissions. We have also adopted liquefied natural gas as a replacement of liquid propane gas. Our goal for 2015 is the to segregate the solid waste generated in the plant. For this we are building a modern area with the name RISES, which will allow us to reduce waste disposal by 80 percent through a sanitary landfill. w w w. i c b . c l
73
ICB S . A . In order to address various environmental issues related to our production process we will develop efficiency projects related to the use of water. BRAL: How have partnerships with suppliers optimized logistics? SR: The optimization of logistics is based on the relationship between service and cost, and the partnerships we have with suppliers have enabled the continuous improvement of our service and distribution network, such as the alignment of routes through Roadnet. ICB has integrated mobile systems to digitize logistics
In regards to cost management, it primarily focuses on the control of inventory and improvements in productivity. BRAL: What are some of ICB’s expansion projects for 2015? SR: Right now we are working on increasing the production capacity of the plant by adding and extending lines to further strengthen our position in the market, both with our existing brands, and with new developments. Much of our growth in coming years will come from innovations and our production process has to be flexible and adequate to meet these new requirements. In practical terms, we want to double production in next three years.
74
December 2014
F D F W orld
We are always looking for opportunities In the international market, but our focus is in Chile, we want to sustainably grow here and always delivering a great service, adding each accomplishment into our overall gaining process at a global scale. BRAL: Where do you see ICB in the next five years?
ICB Food Service, a subsidiary of the
SR: Setting goals for the next five years seems too distant, because in five years the scene can
company for the distribution in Chile
Fleet for its national distribution network w w w. i c b . c l
75
ICB S . A .
Brands marketed by ICB
dramatically change and we could remain stuck in a fixed goal or strategy, this is a clear mistake. Our philosophy is to face the future with strong values, consistency, and above all with an excellent and motivated team, with capable employees that able to adjust themselves to changing conditions. Clearly, we want to grow organically and inorganically, but each step is evaluated on its merit and we are open to any challenge.
76
December 2014
F D F W orld
Company Information Name
ICB S.A. Industry
Food production and commercialization (snacks, cereals, meats, etc.) headquarters
Quilicura, Santiago, Chile founded
1956 employees
1,200 revenue
USD $270 millions website
wwww.icb.cl
Quality policies are integrated into SIG (Integrated Management System) w w w. i c b . c l
77
95 years of Pozuelo
The favorites in Central America
Written by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Juan Felipe Macia, CEO of Compañía de Galletas Pozuelo DCR, S.A.
79
C o m pa Ăą Ă a d e G a l l e ta s P o z u e l o DCR , S . A .
S
ince 1919, Central America has enjoyed the sweetness and delight of Pozuelo, a company whose brands have become part of daily life for millions of Latino families. Brands such as Soda, Chiky, Merendina, Bokitas and Festival have remained as the favorite cookies of various generations, and as the perfect companion for that morning coffee or afternoon snack. Celebrating almost one hundred years since its launch, Pozuelo has established its position in the Central American market with distinguished leadership in the dessert sector. In 2006, the company experienced a significant transformation after being acquired by Grupo Nutresa (fourth largest food company in Latin
Its people, the pillar of Pozuelo brands 80
December 2014
L A T IN A ME R IC A
America in terms of market capitalization). Pozuelo expanded its product portfolio and increased its export productivity and presence in Costa Rica, El Salvador, Guatemala, Nicaragua and Panama. Pozuelo has been a brand close to the consumer for the past 95 years. Additionally, they are characterized by their commitment to sustainability, which includes their ongoing work with the community and their employees through strategies that include environmental awareness and healthy habit programs. The permanence of Pozuelo has been possible thanks to the company’s productive competitiveness, recognized and valued brands, a motivated and prepared team, and continuous updates. As part of their annual budget, the company sets aside a high percentage of their profits for technological modernizations. Pozuelo has a highly automated production plant, produced with an investment of three million dollars and the merging of two of their old factories. Pozuelo-Nutresa: Uniting Forces “We have the support of the name Pozuelo, a company that has been around for their consumers and their clients for more than 95 years,” said Juan Felipe Macia, CEO of
Key People
Juan Felipe Macía CEO of Compañía de Galletas Pozuelo Macia is a production engineer who graduated in 1992 from the University EAFIT in Colombia. In 1997 he received a specialization in management (MBA) with emphasis in International Business at the University of Brighton in England. He then completed his course in management at the business school Grenoble Ecole de Management in France. He has participated in executive programs such as the one held at Kellogg School of Management at Northwestern University and is currently studying Management at Massachusetts Institute of Technology (MIT). His first position in business was at Compañía de Galletas Noel in Colombia, he then took the post of Regional Manager at 3M Colombia, where he served until August 2001. He then joined GLOS SA as their new CEO.
w w w. p o z u e l o . c o m
81
L A T IN A ME R IC A
Compañía de Galletas Pozuelo. Macia has a career of 15 years with Grupo Nutresa, working primarily in international roles. In February 2014, he took over the post of CEO and is now responsible for the operations of all Pozuelo brands in Central America. Pozuelo, now part of Grupo Empresarial Nutresa, has expanded its services for the Group’s regional portfolio, with the inclusion of a distribution route and increased commercialization efforts in the region. Pozuelo has more than
Differentiators
1,400 direct employees, whose primary
1. Pozuelo has 95 years of experience in the region.
commitment is the progress of the company
w w w. p o z u e l o . c o m
83
L A T IN A ME R IC A
2. Certifications that exemplify the highest quality standards and safety procedures in the manufacturing plant. 3. Strategic alliances with other Grupo Nutresa companies. 4. The continuous innovation of a brand with a great history within the Central American market, and that will reach new generations of consumers through both their classic and new product lines. 5. Product availability through a global distribution network. 6. More than 1,400 direct employees, whose primary commitment is to the progress of the company. 7. Sustainable growth and community efforts.
Expanding its distrubution network in Central America
Inside Pozuelo’s production plant w w w. p o z u e l o . c o m
85
C o m pa ñ í a d e G a l l e ta s P o z u e l o DCR , S . A .
“On behalf of all the employees who are part of Pozuelo, I deeply express my gratitude to all of those who throughout the years have made it possible for our company to consolidate and celebrate 95 years of operations” – Juan Felipe Macia, CEO of Compañía de Galletas Pozuelo
Celebrating 95 Years of Smiles The 95-year celebration of the history of Pozuelo marks a very special date. The company recalls its most important milestones since its founding in 1919, including their expansion to various countries of Latin America. It is certainly a story that incorporates strategic business development within the life of the regional consumer. “On behalf of all the employees who are part of Pozuelo, I deeply express my gratitude to all of those who through the years have made it possible for our company to consolidate and celebrate 95 years of operations,” the CEO said. Growth Allies Compañía de Galletas Pozuelo has a large number of partnerships with suppliers, customers and companies in the industry, which have played a key role in the success of Pozuelo. Furthermore, the company has been further strengthened by these synergies following its association with Grupo Nutresa, which helped by streamlining logistics in different territories. An example of this union is the supporting commercialization and distribution of sister companies such as Compañía Nacional de Chocolates from Costa Rica, Colcafé from Colombia and Tresmontes Lucchetti from Chile. “We serve more than 145,000 customers throughout the region and there is an opportunity
86
December 2014
F D F sW ec O tor RLD
Chiky, the kids favorite
for synergies on several fronts,” Macia said. The company has increased sales by expanding their client base per the inclusion of chain stores, both traditional and modern, and with their incorporation to new markets such as Panama. “A large number of raw material, packaging and even service suppliers have accompanied us throughout our history. They have been our partners in the growth of our business by strengthening distribution channels,” Macia said. Pozuelo contest winner
Thriving as a Multi-Latina Company By having their headquarters in Costa Rica, Compañía de Galletas Pozuelo seeks to w w w. p o z u e l o . c o m
87
C o m pa ñ í a d e G a l l e ta s P o z u e l o DCR , S . A . consolidate exports in Central America; their natural market. “We are leaders in the business of cookies and crackers in Central America, this gives us great strength not only in Costa Rica but also in Guatemala, El Salvador, Honduras, Nicaragua and Panama,” Macía said. Cookie brand Club Extra Pozuelo
Pozuelo currently has a presence in 18 countries in Central America, and is growing as a multi-Latin American company. They are currently studying international markets from the distribution and commercial front, such as
L A T IN A ME R IC A
the United States, where the Chiky brand has a high penetration rate. In the Caribbean they are amplifying their business in food chains across Puerto Rico and the Dominican Republic. And in South America the company is exploring opportunities in Colombia. A Look into the Future Compañía de Galletas Pozuelo will continue to follow the vision and entrepreneurship of Grupo Nutresa. By 2020, after celebrating one hundred years in the market, they expect to reach a revenue close to five billion dollars.
Pozuelo’s version of María
“We are very grateful to our customers, clients, suppliers, employees, strategic partners and the whole community, because each of them has contributed directly and indirectly in the development of the company, not only in Costa Rica, but also in the whole region,” concluded Macia.
w w w. p o z u e l o . c o m
89
C o m pa ñ í a d e G a l l e ta s P o z u e l o DCR , S . A .
Pozuelo’s world
90
December 2014
L A T IN A ME R IC A
Company Information name
Compañía de Galletas Pozuelo DCR, S.A. Industry
Production and commercialization of cookies and derivatives All employees participate in social activities Headquarters
“We are leaders in the business of cookies and crackers in Central America, this gives us great strength not only in Costa Rica but also in Guatemala, El Salvador, Honduras, Nicaragua and Panama”
La Uruca, San Jose, Costa Rica founded
1919 employees
1,400 revenue
USD $150 million website
www.pozuelo.com
– Juan Felipe Macia, CEO of Compañía de Galletas Pozuelo
w w w. p o z u e l o . c o m
91
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 Corporacion San Diego
93
Corporacion San Diego A Family Business United by Sugar
C Corporacion San Diego and the communities of Guatemala
94
December 2014
orporacion 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, along with family members Alfredo Vila (brother), Luis and Víctor (brother-in-law), who soon enough was involved in the administrative business-family sphere. His first major accomplishment was the acquisition of a small sugar mill with a great strategic location: Ingenio Trinidad. The new acquisition provided competitive advantages to the Corporacion 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 2009, the original sugar mill “San Diego” was
lat i n a m e r i c a
closed in order to consolidate all operations into one venue. The company chose Ingenio Trinidad 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 Corporacion 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
Suppliers with Value CorporaciĂłn San Diego has maintained the same company ethics with all business partners,
Machinery imported from India, Japan and England
w w w. s a n d i e g o . c o m . g t
95
Corporacion San Diego
lat i n a m e r i c a
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 part of their utility sales to meet our demands,� he said. Additionally, the machinery that the company requires for daily activities, such as boilers, power generation equipment and milling material, has been imported from India, Japan, and England as a result of collaboration with foreign suppliers.
Energy production, an added business of San Diego
Energy Self-sufficiency The family business experienced substantial growth after introducing a new business model:
supplier profile
ISGEC
Isgec Heavy Engineering Ltd., a multi-product, multi-location public company, based in India, has been providing engineering solutions to customers across 83 countries over the past 80 years. With a diversified portfolio of products that includes, Boilers, EPC Power Plants, Sugar Plants & Machinery, Process Equipment, Presses, Castings, Air Pollution Control Equipment, Metal Cutting Machinery and Contract Manufacturing, Isgec boasts of an impressive track record that includes the setting up of over 100 Sugar Projects, 650 Boilers, and 40 Power Plants. In fact, as many as 35 of these projects are across 21 Countries in the Western Hemisphere (Central & South America, USA, Canada).
Website: www.isgec.com
w w w. s a n d i e g o . c o m . g t
97
IN SHELL LUBRICANTS, WE ARE COMMITED TO PROVIDE HIGH QUALITY SERVICE TO THE INDUSTRY
With a great product and services portfolio for each challenge.
www.horcalsa.com
Corporacion San Diego
lat i n a m e r i c a
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 Corporacion 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
This year, they produced more than 161 thousand tons of sugar
Sustainable and dry processes to save resources w w w. s a n d i e g o . c o m . g t
99
mayafertventas@unisourceholding.com
Corporacion San Diego
lat i n a m e r i c a
energy sector, As for their exports, the Corporacion 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 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— to perceive 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 Corporacion San Diego
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.
w w w. s a n d i e g o . c o m . g t
101
Corporacion San Diego
The growth of a family business
102
December 2014
lat i n a m e r i c a
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 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
1963 employees
“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”
2,500 – 4,500 revenue
USD +$200 million website
www.sandiego.com.gt
– Fraterno Vila, CEO of Corporacion San Diego
w w w. s a n d i e g o . c o m . g t
103
International Meal Company of Mexico (IMC): Passion in Food Excellency Food supply for the national taste
Written by: America Barcelo Feldman Produced by: Taybele Piven Interviewee: Alejandro Cappello, country manager for IMC of Mexico
105
I n t e r n at i o n a l M e a l C o m pa n y o f M e x i c o ( I M C )
I Alejandro Capello, Country Manager of IMC Mexico
nternational Meal Company (IMC) is a Brazilian group with operations in Latin America Latin America and recently, in the United States. Its subsidiary in Mexico operates prestigious restaurants and food brands such as ‘La Mansión’-thin cuts of meat - ‘Group Champs Elysées’, ‘Casa Ávila’- Spanish restaurants, Brazilian Café, among others. 40 percent of their businesses are located in sites with high traffic flow such as airports and shopping malls. Recently, the group purchased the food chain Gino’s and Margaritaville, which originated in United States. The Country Manager of IMC Mexico , Alexander Cappello, has over six years of experience within the company. He arrived in Mexico in 2009 in the area of process and technology. Later, he was part of the financial board in Brazil. He also spent a year and a half in the stock exchange of the company until 2011, when he returned to Mexico to take over the post of CFO. He currently serves as country manager for IMC of Mexico. Food Differentiators In the processed food field and in the restaurant industry, corporate values such as a passion for food excellency have distinguished IMC from their competitors. “Passion is what reflects the larger engine that integrates this company, from our founder and president, Javier Gavilan, to new partners. We
106
December 2014
lat i n a m e r i c a
have a spirit of excellence, we work with heart, which is reflected in our mission. We strive not only for the goals of our position, but to exceed expectations,” says Cappello. IMC integrates a centralized business platform that incorporates new units to their portfolio and logistics. “It facilitates a rapid expansion which has led us to positive growth,” he adds. With an accelerated growth, IMC went from 12 restaurants and 500 employees in 2006 to a business group with 400 restaurants and 13,000 employees in 2014.
Restaurant Bistro Mosaico in Mexico City
Original paella at Restaurant Casa Avila w w w. i n t e r n a t i o n a l m e a l c o m p a n y. c o m
107
I n t e r n at i o n a l M e a l C o m pa n y o f M e x i c o ( I M C )
Champs ElysĂŠes restaurant
Entrepreneurial Development
Bourgogne snails
108
December 2014
IMC of Mexico has a distribution and production center that caters to all units, centralizing purchases and allowing for better development of brands. In 2014, IMC will continue to strengthen their brands, purchasing power and organic growth. Margaritaville (IMC’s most recent acquisition) will open its first unit in Mexico; the company will then expand this brand presence in beach destinations. In 2015 they will open 12 restaurants, in addition to 55 owned food sites today.
lat i n a m e r i c a
La Mansion Restaurant entrance
New Markets The recent commercial negotiation for ‘Margaritaville’ (an American brand) will intensify IMC’s expansion throughout the Americas; the United States being the first step for an exploration headed to Europe and Asia. “Our mission is to be the best operator of food abroad America,” says Cappello. The goals of IMC are to reach more distant markets in the next three to five years. They will focus on North America, although they are already studying European markets.
“The success of our brands wouldn’t be possible without the cooperation of our business partners” – Alejandro Capello, Country Manager of IMC Mexico
w w w. i n t e r n a t i o n a l m e a l c o m p a n y. c o m
109
c o m pa n y n a m e
Restaurant La Mansion
Human Resources Development Ongoing training is reflected in IMC’s employees, due to major investments in their intensive programs for personnel at all levels. IMC’S human resources are transferred to the Integrated Training Center located in Mexico City, where they teach the best practices in their job position as well as the vision and values of the company. The company also has workshops, leadership development programs, business administration 110
December 2014
s e c tor
and management courses for working executives and managers. Technological Advances In their production area, they have incorporated the latest technological devices in order to standardize processes. “We ensure the supply and reduce costs,� says Cappello. Thanks to these advances, they have achieved major energy savings and increased efficiency. In a short time, IMC of Mexico will implement a
Night view of the Champs ElysĂŠes restaurant
w w w. i n t e r n a t i o n a l m e a l c o m p a n y. c o m
111
www.pos-la.com.mx
ventas@pos-la.com.mx
sales@pos-la.com.mx
lat i n a m e r i c a
system for the finance area that will streamline and centralize administration. They are currently working with a digital platform to track sales at various restaurants and control their operations through online software; the back office automatically generates an inventory of ingredients used in recipes and controls the supply chain from the manufacturing plant to the consumer’s table. Supply Chain “The success of our brands wouldn’t be possible without the cooperation of our business partners,”
Octopus Stone at Casa Avila
Meat cut at Restaurant La Mansion w w w. i n t e r n a t i o n a l m e a l c o m p a n y. c o m
113
I n t e r n at i o n a l M e a l C o m pa n y o f M e x i c o ( I M C )
Food from La Mansion Restaurant in Mexico City
Cappello mentioned after speaking about their suppliers and how they have developed synergies to optimize costs. With the support of these strategic partners, International Meal Company has managed to expand into new markets. One example is the presence of meat cuts “La Mansion” in supermarkets thanks to a meat producer. “By sharing our success, we promote both brands,” he adds. Bistrot Mosaico
IMC Future
Restaurant in San Angel,
The Latin American company International
Mexico 114
December 2014
lat i n a m e r i c a
Meal Company of Mexico intends to expand their brands all over the world, based on their passion for high quality standards. In the next five years, they expect to gain significant international growth. “We want to be the best food company in the next few years, and the first step to achieve this goal is to enter the complex United States market,” says Cappello.
Company Information Industry
Food and drinks headquarters
Mexico City (Corporate in Brazil) founded
2006
“Passion is what reflects the larger engine that integrates this company, from our founder and president, Javier Gavilan, to new partners. We have a spirit of excellence, we work with heart, which is reflected in our mission. We strive not only for the goals of our position, but to exceed expectations” – Alejandro Cappello, Country Manager of IMC Mexico
employees
1,835 (Mexico) Key people
Javier Gavilan (Corporate President), Alejandro Cappello (Country Manager of IMC Mexico), Salomon Rodriguez (Technical Director) products and services
Restaurants and food service revenue USD $60 million (Mexico)
w w w. i n t e r n a t i o n a l m e a l c o m p a n y. c o m
115
Better Ingredients. Better Pizza.
papa john’s canada Senior Managing Director Mark Murphy discusses Papa John’s strategic distributor partnerships and plans for growth across the Canadian Prairies Written by: Sasha Orman Produced by: Sean Bakke
117
Pa pa J o h n ’ s C a n a d a
Founder Papa John’s Favorite Pizza, loaded with Pepperoni, Sausage and a 6 cheese blend on Papa John’s Original Hand Tossed Dough
R
estaurant brands may operate globally, but a lot of the regional development action happens on the franchise level. In Canada’s Prairie region of Alberta, Manitoba, and Saskatchewan, that development has been guided along by franchise partner Perfect Delivery Canada. Since 2000, the master franchisee has been building a strong base out of its initial location in Calgary, Alberta – today, it’s poised to take the Papa John’s philosophy of better ingredients and better pizza to whole new audiences in the more remote reaches of rural Canada.
Fresh Canadian made cheese tops every pizza 118
December 2014
A Strategy for Growth With 45 locations throughout Calgary and Winnipeg, master franchisee Perfect Delivery
CANADA
Better Ingredients, Better Pizza
Canada operates the largest regional Papa John’s franchise in Canada. But there is still plenty of growth potential left to tap within the Canadian Prairies – the franchise has plans to more than double its presence in the region within the next few years. “We’re projecting to grow to more than a hundred stores between the three provinces [of Alberta, Manitoba, and Saskatchewan],” says Mark Murphy, Senior Managing Director for Perfect Delivery Canada. “We have about 21 stores in the pipeline right now that we’re working on, that will open between 2015 and 2016.” In order to facilitate this rapid growth, the franchisee has been investing heavily in aspects of the business that will ultimately benefit all stores throughout the franchise. “We just got finished doing over a more than $2 million upgrade to our
“With us being a master franchisee of Papa John’s, the benefit for the franchisee is that somebody’s got their back twice.” – Mark Murphy, Senior Managing Director for Perfect Delivery Canada
w w w. p a p a j o h n s . c o m / c a n a d a /
119
Agropur is the largest dairy cooperative in Canada, offering consumers a complete line of dairy products. We offer an impressive product line of cheese blocks, shreds and slices recognized for their exquisite taste and functionality.
Agropur, Cheese & Ingredients Division | 101, Roland-Therrien Blvd, suite 600 | Longueuil, QC J4H 4B9 514.856.2113 | Fax 450.646.5046 | E-mail: bernard.gagnon@agropur.com | agropur.com
QUALITY PRODUCTS THAT DELIVER • Equipment Repair & Parts (All Makes & Models) • Hands On Product & WHMIS Training • Garbage Bags/Paper Products • Carpet & Floor Care • Washroom Care • Dispensing Systems • Dishwasher Products • Micro Fibre Systems • Window Equipment
LIVERY! FREE DEr de tails Call fo
HOURS Mon-Fri 8-5 | Saturday 9-4
www.applesupply.ca
Pa pa J o h n ’ s C a n a d a commissary operations, distribution center, and regional office in Calgary, which will help us reduce costs and help with the cost at store level,” says Murphy, noting the benefits that individual franchisees gain from working with such an invested master franchisee. “With us being a master franchisee of Papa John’s, the benefit for the franchisee is that somebody’s got their back twice,” he explains. “For example, Corporate Papa John’s has marketing representatives that represent the franchisees, and we have our own marketing department where we help organize as far as TV, print & print distribution. We have a really good support network for our markets.”
CANADA
Sausage & Pepperoni on Papa John’s signature pencil-thinedge thin crust.
Paving the Way with Strategic Partnerships Canada is a massive country with varied landscapes, from metropolitan centers in the south to remote mining communities in the north. Building a franchise isn’t always easy in those more remote locations, where the time and effort needed to distribute ingredients and materials can be cost prohibitive – but residents of Fort McMurray are just as in need of quality pizza as residents of Calgary, and Papa John’s is striving to deliver. Because success in remote locations can depend heavily on the strength of a good distribution network, a major part of the franchise’s growth strategy has been the development of a strong partnership with a distributor who is up to the task.
Only the freshest ingredients go into every pizza, Papa John’s goes the extra mile to ensure the vegetables are always fresh, so they’re ripe and full of flavour, we never cut corners!
w w w. p a p a j o h n s . c o m / c a n a d a /
121
Pa pa J o h n ’ s C a n a d a
Premium Chicken Breast Poppers, made with premium white chicken breast meat and baked to a golden crisp
“I’m projecting for us to add another $10 million per year moving forward. I really feel like we’ve got something strong going on here. – Mark Murphy, Senior Mananging Director
Papa John’s Dipping Sauces add an explosion of flavour to any pizza or sides 122
December 2014
“We have a main distribution hub that we own out of Calgary, which gives us a lot of buying power, but one issue we’ve had is that, as you get into northern Alberta, Saskatchewan, and Manitoba, there’s a whole lot of nothing between markets and to distribute product there is quite costly,” says Murphy. “So we recently teamed with Gordon Food Service (GFS Canada), where they’re going to be doing part of our food distribution for markets that are difficult for us to
CANADA
service in an economical manner.” As the largest private food distributor in Canada, with a strong service network in the Canadian Prairies including distribution hubs in Winnipeg and Edmonton, GFS Canada offers the resources and the points of access to significantly open up the region’s potential for franchise growth. “It will add a lot of cost savings to people in markets that are hard to reach – markets like Fort McMurray, or Brandon, Manitoba, or Moose Jaw, Saskatchewan. So this GFS relationship is really going to be a big plus for us as we move forward.” With the finalization of this partnership, GFS Canada finds itself in good company with a host of other partners, from materials suppliers like Agropur and Cargill to equipment and services providers like G. Cinelli-Esperia Corporation and Apple Cleaning Supplies, all working to help Papa John’s achieve its goals of quality products at low cost to franchisees and consumers.
Company Information INDUSTRY
• Company, Perfect Delivery Canada O/A Papa John’s Pizza • Takeout and Delivery Pizza Franchise headquarters
Calgary, Alberta founded
2000 employees
250 revenue
Falling Into Place With a strong growth strategy and smart partnerships coming together seamlessly, Papa John’s Canada is in a prime position to succeed in its plan for one hundred regional stores. “We’re just excited,” says Murphy. We’ve got a strong marketing department, we’ve got our supply distribution center, and we’ve brought on a solid team. I’m projecting for us to add another $10 million per year moving forward. I really feel like we’ve got something strong going on here.”
$40-50 Million
w w w. p a p a j o h n s . c o m / c a n a d a /
123
Patates Dolbec
Patates Dolbec Brings Innovation to Agriculture Dolbec executive Gord Medynski discusses technology, research, and growth in potato farming Written by: Sasha Orman
Produced by: Sean Bakke
125
Patat e s D o l b e c
“
We’re not your everyday run of the mill farm,” says Gord Medynski, Director of Purchasing, Sales, and Business Development at Patates Dolbec. Indeed, Quebecbased potato producer Patates Dolbec is an agribusiness dedicated to the future, merging the hard work and simplicity of potato farming with the promise of new technology to cultivate innovation and growth. New Innovations in Growing At Patates Dolbec, the traditional Russet potato is just the beginning. Beyond multiple varieties of its four staples – red, white, yellow, and Russet – the company puts extensive effort into the research and development of trendier 126
December 2014
consumer-friendly options such as creamer potatoes, fingerling potatoes, and proprietary brands like its pink-skinned Mozart variety. To help facilitate this research, Patates Dolbec is working with the University of Laval in Quebec City for additional R&D on new varieties as well as soil testing to look for diseases and optimize growing conditions. To take research even further, the company recently invested in a breeding program at a seed farm in Lac-St-Jean. New Innovations on the Consumer Side Patates Dolbec doesn’t leave innovation out in the field – every part of the company is devoted to
CANADA
finding new and better solutions, and that includes when the potatoes start making their way to consumers. It starts with warehousing, where the company has invested heavily in state-ofthe-art temperature and humidity controlled spaces to keep its store of potatoes fresh year round. From there, the company is working on new cutting edge consumer packaging options such as its formfill-and-seal poly consumer packs imported in from Europe. “It’s a much nicer looking bag than the standard type,” says Medynski, noting the easy-to-carry handles and built-in greening resistance that has other North American potato
producers sitting up and taking interest. “We wanted to come out with new packaging that no one else had, so when purchasing new machinery we invested in fresh innovations featuring more of a European style.” Patates Dolbec into the Future What is in store for Patates Dolbec in the future? According to Medynski, the focus is above all on research and continuing to set the brand apart as a leading force in Canada’s potato industry. The brand has been focused on listening to and understanding the needs of its consumer base, leading to new innovations in packaging and in w w w. d o l b e c . c a
127
Patat e s D o l b e c production with new potato varieties and valued-added products like its four-packs of foil baked potatoes. Into the future, Patates Dolbec is committed to research and development in order to meet its customers’ needs even further. “With the time and energy and funds we’ve put into R&D, and the new varieties and breeding programs, we’re hoping to develop newer varieties that are exclusive to us that we can offer to our customer base and hopefully expand that
base,” says Medynski. “It’s not a matter of price – anybody can give product away. You have to have something different from your competition to move forward, and that’s what we’re working on – that’s number one for us. Then it’s about buying more land, having good land for our potatoes, having proper rotation crops to keep our soil healthy, and having stateof-the-art machinery on our farms. We always want to be ahead of the competition.”
Integrated solutions to optimize food manufacturing processes - RFID/Traceability/Mobility
Coderre Packaging Inc. is one of America’s largest manufacturers of packaging paper for industrial and agri-food sectors. Our experienced team continuously adapts to market trends and developments to ensure the highest level of quality. Contact us today to see how we can satisfy your upcoming packaging projects.
819.395.4223
| coderre@embcoderre.com www.embcoderre.com
Epsilia offers food manufacturing software solutions that are tailored to meet traceability and the unique needs of food companies.
462, Des Forges | Trois-Rivieres G9A 2H5 | Canada 800.758.1331 | sales@epsilia.com | www.epsilia.com
CANADA
More than a Job: What Sets Patates Dolbec Apart What makes Patates Dolbec something special? It could be the size and scope of its operation, as the largest grower in Eastern Canada and within the top five for the country. It could also be the technology that Dolbec employs, with its stateof-the-art warehousing and breeding programs. But there’s something more that sets the company apart – something personal that’s part of the company’s DNA and keeps its employees passionate year after year. “Outside of our business, we have an invested interest in the potato industry,” says Medynski, noting that he also holds a role as VP of the Quebec Growers Association, while CEO Stephan Dolbec has served as President of the Quebec Produce Marketing Association. “It goes a lot further than just what takes place at Patates Dolbec – our name is well known not only in the potato industry, but as a leader in the Canadian food industry.” It takes a lot of dedication to stay so invested in the industry after leaving the office for the day, but that’s the kind of dedication that comes standard at Patates Dolbec. “It’s not just a job – it’s a lifestyle when you get down to it,” says Medynski. “It’s a lot of work, but we have a great team behind us. We just finished our harvest, we have a good crop, and we’re all looking forward to the upcoming season.”
Company Information Industry
Potato production headquarters
Quebec, Canada founded
1967 employees
125
w w w. d o l b e c . c a
129
Zambrero:
Changing the World w and Good Work Discussing
work, and worldwide growth with Zambrero CEO
Written by: Sasha Orman Produced by: Sean Bakke
with Good Food
g healthful cuisine, humanitarian O Stuart Cook
131
Zambrero
Staff members Matt & Steph
W
hen Dr. Sam Prince was still a medical student, he funded his education by working at a Mexican restaurant. It was there that he fell in love with the idea of bringing a fresher and healthier side of Mexican cuisine to Australian consumers. Out of that 132
December 2014
concept, Zambrero was born – and since then, it has been growing fast. Today, the fresh Mexican franchise boasts more than 60 locations and is opening at a rapid pace to reach consumers with feel-good food and a feel-good philanthropic message.
au s tral i a
The busy Zambrero line is designed for efficiency
A Franchise with a Cause “We want to create a global brand that stands for something,” says Stuart Cook, CEO at Zambrero. Philanthropy has been present within the brand in some form or another since day one, and its current outlet for humanitarian work
is its Plate 4 Plate program, which works with distribution partner Stop Hunger Now to provide a plate of food to a person in need for every burrito or bowl purchased. “Sam’s background is parents who were born to very humble beginnings – it’s only through the w w w. z a m b r e r o . c o m
133
education process that he was able to have the life he has in Australia,” explains Cook. “Dr. Prince and I don’t really believe in luck except for where you’re born. Part of our goal with this business is to even the playing field by providing every child with clean water and healthy food. That’s why every time we feed somebody at Zambrero, we feed another child overseas.” At the moment, Zambrero has provided nearly 4 million meals through its Plate 4 Plate program,
Zambrero
au s tral i a
so far. But Zambrero understands this, and is able to confidently stand behind its products just as strongly as its philosophies. “Giving back, educating people — while all of these things are great, at the end of the day the customer comes to your restaurant for one reason and one reason only: because they’re hungry,” notes Cook. “You must deliver on product time and time again, and one of our philosophies is that you’re only as strong as your weakest menu item. If you go to one of our restaurants, I should be confident in every single one of our menu items.” Zambrero has put this philosophy into action by creating a menu that is small, sharp, and to the point. “Some other restaurants feel they have to cater to everybody and will have a hundred menu items — but what happens is you get paralysed by choice, and then you get food envy of the Backing Up the Cause with a person next to you,” says Cook. Quality Product Supporting a higher cause is always “So we’re focused on simplicity: noble — but when you’re a restaurant making burritos, tacos, and bowls, and making those really well.” franchise first and foremost, noble intentions will only get your business Taking the Cause to a Global
providing essential support to in-school meal programs and people in impoverished regions and disaster sites in need around the world. Since the one-for-one model means that the strength of Zambrero’s humanitarian work is directly tied to the strength of its sales and franchise growth, that number is expected to double in short order. What’s more: by publicizing its mission, Zambrero is able to educate consumers about humanitarian issues and inspire them to take action. “There is definitely a feeling of giving back,” says Cook. “Aid work can be very overwhelming. But as the saying goes: how do you eat an elephant? One bite at a time. Just by encouraging people and educating people about it, they can become aware of little things they can do to help. That is a big motivator and differentiator.”
w w w. z a m b r e r o . c o m
135
Zambrero
Zambrero Founder, Dr Sam Prince to celebrate the opening 136
December 2014
au s tral i a
Platform Zambrero has no intention of putting a limit on the audience it can reach or the good that it can put out into the world: next on the agenda for Zambrero is international growth. Zambrero is currently opening one new location every week, and expanding outward into New Zealand with the launch of four new locations across Auckland and Wellington. The franchise is currently looking for the right partners to move into such varied markets as the Middle East, Europe, and the United States. As it grows, the Zambrero team is also focusing on surrounding itself with experienced talent who can help guide the growing business toward international success. “Like our product, we focus on simplicity with our store design and store build,” says Cook. “We will cater the menu to individual markets, and will accordingly make slight adjustments into each market. But because we’ve built the back end systems incredibly simplified, and our operations are already strong, we can easily work with partners to expand very quickly. So in the next five years, we do have a target of 1,000 in the next five years; probably 250 of those will be within Australia and the rest outside.” portfolio, a combination of rejuvenating existing brands and bringing to market a number of new beverages.
Company Information Industry
Food headquarters
Sydney, Australia founded
2005 products/ services
Zambrero is a fast casual franchise specializing in fresh, healthy Mexican cuisine. Founded in 2005 by Dr. Sam Price, Zambrero is dedicated to supporting humanitarian and human rights endeavors through its Plate 4 Plate project, which works to provide good food to hungry customers and people in need around the world.
w w w. z a m b r e r o . c o m
137
Bom Jesus Group:
Fully structured the farming sect
With a vertically integrated business model, the conglom sustainable companies is one of the largest producers o soybean, corn and seeds in the state of Mato Grosso an Written by: Flavia Brancato Produced by: Taybele Piven
d for tor
merate of six of cotton, nd in Brazil
139
Bom Jesus Group
W
ith the mission of producing seeds, grains and fibers following high standards of efficiency, and becoming a benchmark in production, marketing and logistics of the Brazilian agribusiness, Bom Jesus Group has dedicated itself, since the late 70s, to the challenge of turning small crops into one of the largest agribusiness companies in Mato Grosso and in the country. From the first soybean plantation, in 1978, the Group has built up a beautiful history of accomplishments and today, it has a total area of more than 200 thousand hectares of plantation, accounting for the production of more than 350 thousand tons of soybeans, 290 thousand tons of corn and 60 thousand tons of lint cotton – referring to the crop 2012/13. With a production of more than one million bags of soybean seeds (crop 2012/13), Bom Jesus Group is deemed as one of the most important groups in the industry, always following the guidelines of simplicity and
140
December 2014
bra z i l
friendly relationships that have always marked and are present in the company daily business. Altogether, there are 10 cotton processing units, 13 silos and storage units, one Distribution Center, 700 machines, among tractors and harvesters, in addition to 11 agricultural airplanes, 304 planters, 1,500 agricultural implements and utility trucks. ACCOMPLISHMENTS The milestone of the history of accomplishments is the year 1987, when the founder Luiz Vigolo organized Bom Jesus Sementes with his two children. The seed of a new business that flourished beautifully in the next years was effectively planted, particularly from 1992, when a new seed processing unit was implemented. This was also the first step to have the business vertically integrated – a model that opened up new opportunities and provided the group with an important competition differential. Initially created with the purpose of serving its own activities, another business opportunity that deserves to be emphasized is Bom Jesus Transportes. The logistics company of the agribusiness sector, in the market since 2003, currently has 73 branches spread across 14 States and w w w. s e m e n t e s b o m j e s u s . c o m . b r
141
bra z i l
in the Federal District. Later, as a part of the consolidation of the commercial activities of the business plan, Bom Jesus Group organized Bom Jesus Agropecuária. In that very year, 2007, an innovative model of agricultural partnerships was also established, which helped promote the development of entrepreneurs in the field. The municipalities involved also grew, and reached a total number of 14 centers that today occupy an area of more than 200 thousand hectares in Mato Grosso. It has recently crossed the state border, with the purchase of lands in Bahia, reaching more than 65 thousand hectares. One of the major accomplishments was the vertically integrated business model that led the group to open other units, which strengthened even more its expansion. The relevance of ABJ Comércio (On Shore) and ABJ Trading (Off Shore) – responsible for marketing commodities and inputs on the domestic and international markets – is clear. The president of Bom Jesus Group, Nelson Vigolo, is assertive: “The speed at which we grow is steady and sound. The fact that we are a genuine Brazilian company, with 100 percent national capital, is another
Perfil
DuPont Proteção de Cultivos
Presente no agronegócio brasileiro há mais de 80 anos, a DuPont Proteção de Cultivos tornou-se uma das mais inovadoras companhias do setor. A DuPont pesquisa e desenvolve tecnologias de ponta, que permitem ao agricultor competir em igualdade de condições com os maiores produtores mundiais. Comprometida com a sustentabilidade agrícola, a DuPont investe continuamente no desenvolvimento de inovações para melhorar a produtividade e qualidade dos alimentos, contribuindo assim para a segurança alimentar global. Website: www.dupont.com.br
w w w. s e m e n t e s b o m j e s u s . c o m . b r
143
bra z i l
factor that makes us very proud, and causes us to stand out from the others,” he says. A PROJECT FOR INNOVATION (PROJETO INOVAR) The efficiency in controlling internal processes may be deemed as one of Bom Jesus Group challenges to keep growing. Keeping this in mind, the company implemented a series of changes in processes, control, standards and procedures that allow the restructuring of a portion of the company governance: the Projeto Inovar. By means of the implementation of the program, the result highlights can be ascribed to improvement in business management, reduction of operating costs, and standardization of processes and systems of control, in addition to a greater speed and reliance in making decisions,
“The speed at which we grow is steady and sound. The fact that we are a genuine Brazilian company, with 100% national capital, is another factor that makes us very proud, and causes us to stand out from the others” – President of Bom Jesus Group, Nelson Vigolo
w w w. s e m e n t e s b o m j e s u s . c o m . b r
145
Bom Jesus Group
following the highest levels of governance. Moreover, the installation of SAP - business management software - to support the growth and provide sustainability to the administrative demands is another significant action. The professional commitment to other activities related to the project is also another very important factor to achieve good results. The newly acquired skills will place the employees of Bom Jesus on a new level of professional knowledge. ENVIRONMENTAL RESPONSIBILITY By means of its environmental responsibility programs, Bom Jesus Group aims at harmonizing the environmental preservation and the economic development in the regions where it does business. The Group ensures 146
December 2014
bra z i l
the sustainability of its business by constantly investing in implementing the best social, environmental and economic practices, policies and guidelines. The actions include from awareness of employees and the use of new technologies and conducts that value an efficient and cleaner production, through the development of solutions such as the Waste Management Plan. The program focuses on reducing the waste generated at the repair shops of the farms and on properly disposing of contaminated materials, such as used agricultural pesticides and lubricant oil containers. Moreover, the important partnership of Bom Jesus Agro with the Social Cotton Institute (IAS) generates the adoption of modern techniques of planting and soil management that prevent erosion, in addition to w w w. s e m e n t e s b o m j e s u s . c o m . b r
147
Bom Jesus Group
“The new warehouse is part of our plans to always improve the business and storage service quality” – Mauro Loro, Director of Commodities of ABJ Comércio Agrícola 148
December 2014
bra z i l
practices of sustainable development in the farm management. Other practices adopted by the 4 R’s policy (reduce, reuse, rethink and recycle) of Bom Jesus Group include: recycling tires of cars, trucks, tractors and airplanes; recycling of cooking oil; correct disposal of lubricant oil used by the transportation company trucks; environmental regulation of lands; control of pollutant emission and certification of all processes and activities that require monitoring.
Company Information Industry
Agribusiness Headquarters
Rondonópolis, Mato Grosso - Brazil employees
4000 e s ta b l i s h e d
NEW STRUCTURE By means of the company ABJ Comércio Agrícola, Bom Jesus Grupo counts on a new structure to receive and store grains in the city of Rondonópolis, in the State of Mato Grosso. “The new warehouse is part of our plans to always improve the business and storage service quality,” states Mauro Loro, Director of Commodities of ABJ Comércio Agrícola. According to Loro, the company opening was another stage of the activity expansion. “We will offer one more option to partners and serve them in a more expeditious and efficient way,” he emphasizes. With capacity for 100 thousand tons of grains, the new warehouse is the 10th of Bom Jesus Group in operation, in the productive areas of Mato Grosso. With that, the Group has reached the capacity of nearly 420 thousand tons in total static storage.
1976 Products / Services
Cotton, soybean, corn and transport services management
Partners: Nelson José Vígolo e Geraldo Vígolo President: Nelson José Vígolo Executive Director: Maurício Vivan Financial Director (CFO): Valdoir Slapak Administrative Director: Erlan Costa Commercial Director (CCO): Mauro Loro
w w w. s e m e n t e s b o m j e s u s . c o m . b r
149