AECOC INTERVIEW (EN)

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A family project 4.0 Industry 4.0, innovation and internationalisation will be the pillars of their future.

AECOC Conference - October 2018


1st WINERY IN EUROPE


1st WINERY IN EUROPE


JGC. Industry 4.0, innovation and internationalisation will be the pillars of their future.

C84

EMPRESAS

JGC

A family project 4.0 How has JGC transitioned from a small family wine company to a business that owns 15 cutting-edge production sites spread across Spain, present in more than 150 countries and with a turnover of over 1 billion euros? What has been the key to success? It is really difficult to sum up in only a few pages a history of over 125 years, anecdotes, great milestones and projects. I will do my best thanks to Pepe García Carrión, Fala Corujo and their son Chano, 4th and 5th generations. This is a family of entrepreneurs’ project.

ANA MARTÍNEZ MONEO C84 amartinez@aecoc.es

Pepe, Chano García Carrión and Fala Corujo JGC owners

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C84 AECOC CONFERENCE

95


JGC. Industry 4.0, innovation and internationalisation will be the pillars of their future.

C84

EMPRESAS

JGC

A family project 4.0 How has JGC transitioned from a small family wine company to a business that owns 15 cutting-edge production sites spread across Spain, present in more than 150 countries and with a turnover of over 1 billion euros? What has been the key to success? It is really difficult to sum up in only a few pages a history of over 125 years, anecdotes, great milestones and projects. I will do my best thanks to Pepe García Carrión, Fala Corujo and their son Chano, 4th and 5th generations. This is a family of entrepreneurs’ project.

ANA MARTÍNEZ MONEO C84 amartinez@aecoc.es

Pepe, Chano García Carrión and Fala Corujo JGC owners

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C84 AECOC CONFERENCE

C84 AECOC CONFERENCE

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ENTERPRISES

The beginning of the history…

Guarantee of success. We need to make the most of our raw materials and of the strong tourism! CHANO G.C.

José García Carrión (Pepe, as everyone calls him) and Fala Corujo met in Madrid in the 60s. He was studying architecture (though he dropped out after a while in order to work for the family winery in Jumilla) and was crazy about motorbikes and Formula One. She, who studied history at university and worked as a teacher, was crazy about rallies. Their social environment was very different. He was born in Murcia and grew up in a family of farmers; she was born in Madrid and grew up in a judiciary environment. Different worlds, common passions. Their interest in the motor-racing world joined them in the Circuit of Jarama. Pepe remembers that after the race he headed to the car park and waited 2 hours until the driver of the Mini that was blocking his way out turned up: Fala. Instead of getting angry and arguing, they got along and they have spent the rest of their lives together.

JGC PILLARS

15 elaboration centres: 5 production sites and 10 D.O wineries 88 packaging lines 980 direct employees and 1,460 indirect employees 40,000 associated farmers 155,000 hectares of land 1,005 million euro turnover Over 150 countries

3,000 million units produced annually

860 million euro investment made between 2000-2018

R&D, GUARANTEE OF SUCCESS La Huerta veggies and winter soups are the latest JGC developments, but a list of 30 more are waiting to be launched, too. Almost all of them are plant based, as the trend is very clear: healthier products with less sugar. In order to develop new products, JGC has a team of 50 people working in the Quality and R&D departments, and devotes 5% of its turnover to that Department.

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They make up a perfect team both as a family and in the business. He looks serious at first; she looks cheerful. He is very calm and thoughtful; she is restless, impulsive and has a strong personality. He has a structured mind and logic always comes first; she is creative and represents the “crazy” side. Pepe is determined and has business vision;

Fala has the will to believe in their decisions and to defend them with energy. Yin and yang. Together and committed, they have devoted their lives to the JGC project, a company that had a turnover of 90,000 euros when Pepe joined it in 1968 and now it amounts to 1 billion euros.


ENTERPRISES

The beginning of the history…

Guarantee of success. We need to make the most of our raw materials and of the strong tourism! CHANO G.C.

José García Carrión (Pepe, as everyone calls him) and Fala Corujo met in Madrid in the 60s. He was studying architecture (though he dropped out after a while in order to work for the family winery in Jumilla) and was crazy about motorbikes and Formula One. She, who studied history at university and worked as a teacher, was crazy about rallies. Their social environment was very different. He was born in Murcia and grew up in a family of farmers; she was born in Madrid and grew up in a judiciary environment. Different worlds, common passions. Their interest in the motor-racing world joined them in the Circuit of Jarama. Pepe remembers that after the race he headed to the car park and waited 2 hours until the driver of the Mini that was blocking his way out turned up: Fala. Instead of getting angry and arguing, they got along and they have spent the rest of their lives together.

JGC PILLARS

15 elaboration centres: 5 production sites and 10 D.O wineries 88 packaging lines 980 direct employees and 1,460 indirect employees 40,000 associated farmers 155,000 hectares of land 1,005 million euro turnover Over 150 countries

3,000 million units produced annually

860 million euro investment made between 2000-2018

R&D, GUARANTEE OF SUCCESS La Huerta veggies and winter soups are the latest JGC developments, but a list of 30 more are waiting to be launched, too. Almost all of them are plant based, as the trend is very clear: healthier products with less sugar. In order to develop new products, JGC has a team of 50 people working in the Quality and R&D departments, and devotes 5% of its turnover to that Department.

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They make up a perfect team both as a family and in the business. He looks serious at first; she looks cheerful. He is very calm and thoughtful; she is restless, impulsive and has a strong personality. He has a structured mind and logic always comes first; she is creative and represents the “crazy” side. Pepe is determined and has business vision;

Fala has the will to believe in their decisions and to defend them with energy. Yin and yang. Together and committed, they have devoted their lives to the JGC project, a company that had a turnover of 90,000 euros when Pepe joined it in 1968 and now it amounts to 1 billion euros.


ENTERPRISES

We are better off during crisis than in times of abundance. PEPE G.C.

INDUSTRY 4.0. According to what Pepe García Carrión explains, the company is only at its first level. He tells us that the uses of the new technologies are still in its infancy, and that possibilities are immense, so he suggests “we need to be open, flexible and versatile”.

Pepe, Fala and their son Chano gave us the opportunity to learn about their 100% family-owned company.

3 keys to success Global vision. That is, according to Pepe, the main key to becoming today’s company. “We were in an isolated village in the province of Murcia, but my great grandfather decided to export in 1890 when French vineyards were afflicted by phylloxera”, he explains. Over a century later, the global vision is still in the family’s genes, headed by Chano, and it is part of the consistent internationalisation strategy (the company is present in more than 150 countries) and still with a lot of potential. Another strategy that has boosted growth is the support to

the national and international distribution teams both with their own brands and with private label. Planning. “Forward-thinking allows planning without making serious mistakes, since if mistakes are too frequent, the company ends up disappearing”. Pepe insists on the importance of planning investments, so that they don’t become obsolete or too insignificant in the short term. For instance, their Huelva plant, inaugurated in 2006, was designed to become a world-class unit, although it is currently only at 40% of its projection.

Planning has helped JGC come over the recent crisis surprisingly easily. You only need to look at the results: since 2008, they have doubled their turnover. Pepe does not believe this evolution is by chance. Making key investments in the production site and in the groves, avoiding a big amount of debt, focusing on clients (distribution) and not diversifying into businesses other than their own has been fundamental. “We are better off during crisis than in times of abundance”, as Pepe said, who explains to us that all the investments made have been thoroughly studied to triple the efficiency and to offer a

INDUSTRY 4.0. THE TECHNOLOGICAL INNOVATION IN JGC Robots, big data, Internet of Things…are only some of the latest technologies that define the concept of Industry 4.0, which JGC has been supporting for 10 years. “Pepe showed once again his vision. He was determined to increase productivity and efficiency and he knew how to do it, even if the risk was huge”, Fala explains. This decision arrived almost at the same time as the 2008 crisis, but it was not a bad timing for JGC as they had already paid for all the investments. “It was our anti-crisis strategy and today it is bearing fruit”, Pepe adds. Nevertheless, the founder is not content: “we are only at the first level of Industry 4.0. The uses of the new technologies are still in its

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infancy, and that possibilities are immense, so we need to be open, flexible and versatile”. Jaume Serra winery and the new Don Simon juice production site located in Huelva are two examples of JGC’s support to Industry 4.0. Jaume Serra, automatisation and robotisation The Jaume Serra winery I was invited to visit this summer is an example of Industry 4.0. It is not still at 100% of its capacity, but it is expected to double its size and enhance its technology. “There are always things to improve and technology goes forward so quickly that we have to

follow it”, Pepe said, who anticipates that the facilities will look completely different in the future. “We always build our facilities so that we can mirror them in the future and double their surface, production capacity, technology…”

bottles of wine. Jaume Serra has 65 employees and 5 production lines.

1,000 million kilos in the future. García Carrión is particularly proud of this project. “It was born out of nothing, in anatural reserve where there was no water or electricity”.

Don Simon Huelva, a 100% sustainable production site

It is indeed one of the largest cava wineries in Spain, with over 5 hectares, and one of the most efficient (its current production ratio is 1 million bottles/employee). All the processes are automated with the latest technology, robots move the merchandise around, information is provided in real-time and the site has a capacity to produce over 60 million bottles of cava per year, as well as 20 million

The production site located in Huelva is the largest orange grove in Europe (1,500 owned hectares and 5,000 hectares belonging to associated farmers). It is indeed a unique project due to the integration of agriculture, production and packaging with only one pasteurisation. After a 120 million euro investment, its current processing capacity is 500 million kilos of oranges, but it is estimated to process

Besides totally automated, its facilities are pioneers in the world and have 3 goals: zero waste, zero water consumption and zero polluting emissions. According to what the family explains, 100% of the water is recycled, and the production site is powered by the biomass generated from orange skin, olive pits, almond shells…Moreover, the water purification plant produces a fertiliser for the groves, as well as biogas. In Pepe’s opinion, sustainability is a priority: “whoever thinks differently will be penalised”.

top quality. This is a strategy that could be encompassed in the “Industry 4.0”.

Believing in the project. Fala stresses that believing in the project has been essential, something that Pepe shares 100%: “Yesterday’s dream, today’s reality”. This dream seemed far away; they owned only a small winery. In order to fulfil it, Pepe firstly had to by 100% of the shares from his siblings. Secondly, in 1990 he had to sell 40% of the company to an external partner in order to gain financial capacity to undertake new investments. This relationship lasted 7 years, a period of time during which the company acquired Rioja and Ribera del Duero wineries, as well as Jaume Serra, located in Vilanova i la Geltrú (Barcelona). “The relationship was so good that after re-acquiring the company, the ex-owners kept working in the company as board members, up until today”, as Chano added.

3 great milestones Pepe, Fala and Chano agree on three pillars upon which the JGC project was created: innovation, diversification and unique brands. Milestones that have been accompanied by a very personal advertising strategy, headed by Fala (see chart in page 102) and by the confidence shown by the distribution. 1982. Launch of the first Don Simon wine in carton. This was undoubtedly JGC’s take-off,

C84 AECOC CONFERENCE

99


ENTERPRISES

We are better off during crisis than in times of abundance. PEPE G.C.

INDUSTRY 4.0. According to what Pepe García Carrión explains, the company is only at its first level. He tells us that the uses of the new technologies are still in its infancy, and that possibilities are immense, so he suggests “we need to be open, flexible and versatile”.

Pepe, Fala and their son Chano gave us the opportunity to learn about their 100% family-owned company.

3 keys to success Global vision. That is, according to Pepe, the main key to becoming today’s company. “We were in an isolated village in the province of Murcia, but my great grandfather decided to export in 1890 when French vineyards were afflicted by phylloxera”, he explains. Over a century later, the global vision is still in the family’s genes, headed by Chano, and it is part of the consistent internationalisation strategy (the company is present in more than 150 countries) and still with a lot of potential. Another strategy that has boosted growth is the support to

the national and international distribution teams both with their own brands and with private label. Planning. “Forward-thinking allows planning without making serious mistakes, since if mistakes are too frequent, the company ends up disappearing”. Pepe insists on the importance of planning investments, so that they don’t become obsolete or too insignificant in the short term. For instance, their Huelva plant, inaugurated in 2006, was designed to become a world-class unit, although it is currently only at 40% of its projection.

Planning has helped JGC come over the recent crisis surprisingly easily. You only need to look at the results: since 2008, they have doubled their turnover. Pepe does not believe this evolution is by chance. Making key investments in the production site and in the groves, avoiding a big amount of debt, focusing on clients (distribution) and not diversifying into businesses other than their own has been fundamental. “We are better off during crisis than in times of abundance”, as Pepe said, who explains to us that all the investments made have been thoroughly studied to triple the efficiency and to offer a

INDUSTRY 4.0. THE TECHNOLOGICAL INNOVATION IN JGC Robots, big data, Internet of Things…are only some of the latest technologies that define the concept of Industry 4.0, which JGC has been supporting for 10 years. “Pepe showed once again his vision. He was determined to increase productivity and efficiency and he knew how to do it, even if the risk was huge”, Fala explains. This decision arrived almost at the same time as the 2008 crisis, but it was not a bad timing for JGC as they had already paid for all the investments. “It was our anti-crisis strategy and today it is bearing fruit”, Pepe adds. Nevertheless, the founder is not content: “we are only at the first level of Industry 4.0. The uses of the new technologies are still in its

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infancy, and that possibilities are immense, so we need to be open, flexible and versatile”. Jaume Serra winery and the new Don Simon juice production site located in Huelva are two examples of JGC’s support to Industry 4.0. Jaume Serra, automatisation and robotisation The Jaume Serra winery I was invited to visit this summer is an example of Industry 4.0. It is not still at 100% of its capacity, but it is expected to double its size and enhance its technology. “There are always things to improve and technology goes forward so quickly that we have to

follow it”, Pepe said, who anticipates that the facilities will look completely different in the future. “We always build our facilities so that we can mirror them in the future and double their surface, production capacity, technology…”

bottles of wine. Jaume Serra has 65 employees and 5 production lines.

1,000 million kilos in the future. García Carrión is particularly proud of this project. “It was born out of nothing, in anatural reserve where there was no water or electricity”.

Don Simon Huelva, a 100% sustainable production site

It is indeed one of the largest cava wineries in Spain, with over 5 hectares, and one of the most efficient (its current production ratio is 1 million bottles/employee). All the processes are automated with the latest technology, robots move the merchandise around, information is provided in real-time and the site has a capacity to produce over 60 million bottles of cava per year, as well as 20 million

The production site located in Huelva is the largest orange grove in Europe (1,500 owned hectares and 5,000 hectares belonging to associated farmers). It is indeed a unique project due to the integration of agriculture, production and packaging with only one pasteurisation. After a 120 million euro investment, its current processing capacity is 500 million kilos of oranges, but it is estimated to process

Besides totally automated, its facilities are pioneers in the world and have 3 goals: zero waste, zero water consumption and zero polluting emissions. According to what the family explains, 100% of the water is recycled, and the production site is powered by the biomass generated from orange skin, olive pits, almond shells…Moreover, the water purification plant produces a fertiliser for the groves, as well as biogas. In Pepe’s opinion, sustainability is a priority: “whoever thinks differently will be penalised”.

top quality. This is a strategy that could be encompassed in the “Industry 4.0”.

Believing in the project. Fala stresses that believing in the project has been essential, something that Pepe shares 100%: “Yesterday’s dream, today’s reality”. This dream seemed far away; they owned only a small winery. In order to fulfil it, Pepe firstly had to by 100% of the shares from his siblings. Secondly, in 1990 he had to sell 40% of the company to an external partner in order to gain financial capacity to undertake new investments. This relationship lasted 7 years, a period of time during which the company acquired Rioja and Ribera del Duero wineries, as well as Jaume Serra, located in Vilanova i la Geltrú (Barcelona). “The relationship was so good that after re-acquiring the company, the ex-owners kept working in the company as board members, up until today”, as Chano added.

3 great milestones Pepe, Fala and Chano agree on three pillars upon which the JGC project was created: innovation, diversification and unique brands. Milestones that have been accompanied by a very personal advertising strategy, headed by Fala (see chart in page 102) and by the confidence shown by the distribution. 1982. Launch of the first Don Simon wine in carton. This was undoubtedly JGC’s take-off,

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ENTERPRISES

My dream is to connect our SAP with our clients’, which will eventually happen. PEPE G.C.

a totally disruptive idea at the time, for which they were considered “crazy”. Pepe reminds us that this strategy was key in the company’s evolution, and that it was not accidental. They were looking for a non-returnable packaging to optimise the production and consumption processes. The carton was the solution they found at that time. This decision was upsetting for many people, especially for Pepe’s father, great wine connoisseur and lover, who did not understand that move, not to mention the advertising campaign that was designed to promote it. Fala fondly remembers that “he did not want to go outside because he felt ashamed of people asking why his wine was not sold in glass packaging”. Those were tough moments, as Pepe explains. “We did not sell anything

in the first six months, but afterwards, surprisingly, there was an explosion. We sold 40 million litres in the second year. The consumer accepted the product because it was a good one, of course, and it made their life easier. These have been our core ideas throughout the years: quality and convenience”. Moreover, Fala comments that it was mainly housewives who saw the product’s potential. “We gave wine jars for free to fill them at home with our products”. The 90s. Diversification and Don Simon juices. “We knew how to pack and process the carton and we decided to move a step forward”, as Pepe says. At that time, juice consumption was very low (3 litres per capita vs. 30 in France or 40 in

KEY DECISION. The Pata Negra brand joins all the wines from the appellations of origin they come from. Pepe and Fala were convinced: “If we really wanted to become international, we needed to use only one brand. Our struggle has opened the path to many other wineries”.

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Germany). After this development, companies such as Pascual and Kasfruit also entered this market, which caused the juice consumption to increase up to 30 litres per capita in 10 years, more or less the current consumption. Unique brand. The idea of creating an umbrella brand (Don Simon) for such different products, wine and juices, addressed to two different targets (adults and children), was also revolutionary. Fala, the great advocate of this marketing strategy, explains that it was the first umbrella brand in the food industry. “Nobody understood why we used the brand Don Simon for juice, wine and sangria. We were against the tide”, they mentioned, and this was a headache because the distribution clients did not believe in a unique brand. However, Pepe was quite clear on this: he wanted to grow, but not with 20 different brands, as that would involve a lot of management and investment efforts and they may come to a halt. That was, without any doubt, a pioneering idea. “Currently, many multinational companies are reducing their brands and using an umbrella brand”, he points out. Continuing this strategy, they have also boosted their Pata Negra brand for wines, after an 8-year struggle in court and two years of appeal to the Supreme Court, as all the Spanish wine Control Boards’ regulations forbid using the same brand for different appellations of origin. “We were close to giving up on many occasions, but we were convinced that if we really wanted to become international, we needed to use a unique brand. Going to the US or Japan with 20 brands from 8 appellations of origin is very difficult to explain”, as Pepe says. Today, the Pata Negra brand is sold in more than 150 countries. “Our struggle has opened the path to many other wineries”, and this makes him proud of the effort because he believed in this strategy from the beginning.

From Jumilla to the world Internationalisation has had a key impact in the company’s


ENTERPRISES

My dream is to connect our SAP with our clients’, which will eventually happen. PEPE G.C.

a totally disruptive idea at the time, for which they were considered “crazy”. Pepe reminds us that this strategy was key in the company’s evolution, and that it was not accidental. They were looking for a non-returnable packaging to optimise the production and consumption processes. The carton was the solution they found at that time. This decision was upsetting for many people, especially for Pepe’s father, great wine connoisseur and lover, who did not understand that move, not to mention the advertising campaign that was designed to promote it. Fala fondly remembers that “he did not want to go outside because he felt ashamed of people asking why his wine was not sold in glass packaging”. Those were tough moments, as Pepe explains. “We did not sell anything

in the first six months, but afterwards, surprisingly, there was an explosion. We sold 40 million litres in the second year. The consumer accepted the product because it was a good one, of course, and it made their life easier. These have been our core ideas throughout the years: quality and convenience”. Moreover, Fala comments that it was mainly housewives who saw the product’s potential. “We gave wine jars for free to fill them at home with our products”. The 90s. Diversification and Don Simon juices. “We knew how to pack and process the carton and we decided to move a step forward”, as Pepe says. At that time, juice consumption was very low (3 litres per capita vs. 30 in France or 40 in

KEY DECISION. The Pata Negra brand joins all the wines from the appellations of origin they come from. Pepe and Fala were convinced: “If we really wanted to become international, we needed to use only one brand. Our struggle has opened the path to many other wineries”.

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C84 AECOC CONFERENCE

Germany). After this development, companies such as Pascual and Kasfruit also entered this market, which caused the juice consumption to increase up to 30 litres per capita in 10 years, more or less the current consumption. Unique brand. The idea of creating an umbrella brand (Don Simon) for such different products, wine and juices, addressed to two different targets (adults and children), was also revolutionary. Fala, the great advocate of this marketing strategy, explains that it was the first umbrella brand in the food industry. “Nobody understood why we used the brand Don Simon for juice, wine and sangria. We were against the tide”, they mentioned, and this was a headache because the distribution clients did not believe in a unique brand. However, Pepe was quite clear on this: he wanted to grow, but not with 20 different brands, as that would involve a lot of management and investment efforts and they may come to a halt. That was, without any doubt, a pioneering idea. “Currently, many multinational companies are reducing their brands and using an umbrella brand”, he points out. Continuing this strategy, they have also boosted their Pata Negra brand for wines, after an 8-year struggle in court and two years of appeal to the Supreme Court, as all the Spanish wine Control Boards’ regulations forbid using the same brand for different appellations of origin. “We were close to giving up on many occasions, but we were convinced that if we really wanted to become international, we needed to use a unique brand. Going to the US or Japan with 20 brands from 8 appellations of origin is very difficult to explain”, as Pepe says. Today, the Pata Negra brand is sold in more than 150 countries. “Our struggle has opened the path to many other wineries”, and this makes him proud of the effort because he believed in this strategy from the beginning.

From Jumilla to the world Internationalisation has had a key impact in the company’s


EMPRESAS

FALA’S CRAVING This is the perfume that Fala has created; a very personal project that lasted almost 4 years and that is made from orange skin. Their aim is to create value-added products from the different parts of the fruits that cannot be used for juice. The next challenge is to turn the orange skin into a biodegradable packaging to replace oil.

growth. Pepe tells us that even if the exports were initiated by his great grandfather, the great architect of their international success is his son Chano, who has been travelling around for the last 20 years, turning planes into “his home”. He considers himself a “citizen of the world”. He has

travelled around the whole planet and knows perfectly each distributor’s needs and each country’s habits. “Thanks to him, only with Walmart we sell in over 15 countries”, Pepe and Fala say proudly. “He started up a strategy that will design our future in 10 years’ time”, Pepe states. Today, JGC products

are present in over 150 countries and international sales represent 50% of the total turnover. The US is their main market, where they have had a team for the last 30 years. 30% of the Jaume Serra cava is exported to the US.

ADVERTISING. A TURNING POINT. JGC’s marketing strategy has always been based on “conveying the quality of their products and their competitive advantages, as well as being able to communicate that added value to the consumer”, company representatives say. Their direct and transparent advertising, with slogans and jingles, is also crucial. Fala is the Head of Marketing. Although she has not been academically trained in this field, she believes in the project and she puts herself in the buyer or consumer’s shoes, which has helped her make risky and sometimes questioned decisions. She works and takes part in the creation of ads, and she personally manages and negotiates the advertising contracts. The first venture into the advertising world happened in 1984, with the launch of wine in carton. TV ad “Voy a comer con Don Simón” (I’m going to eat with Don Simon) appeared on TV for the first time. Fala tells us that their goal was to convey that this kind of wine could be used for everyday meals. The results were spectacular: in the first year, the brand managed to lead the table wine category. After that came the sangria and a lot more, until today.

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Comparative advertising. In 1998, the first refrigerated NFC juices were launched. Don Simon created a new category and sales rocketed. Fala recalls that competitive advantage was curbed shortly after because Minute Maid, owned by Coca-Cola and Danone at the time, gained most of the market share. She explains that JGC had made a huge investment in their production site, and that move had a massive impact in their sales. “We had to defend what was ours, so I defended tooth and nails against everything and everyone the comparative advertising we designed”. Fala admits that it was an aggressive campaign, difficult to understand, but there was either that option or abandoning the project. She remembers placing her position at the disposal of the Board of Directors: “If this strategy did not turn out to be successful, I would go home and start teaching, which was my profession”. It was indeed successful: Don Simon managed to become the leader of the category again. Throughout the last few years, JGC has used this strategy on other occasions: “The information we provide to the consumer is transparent”, Fala insists.


EMPRESAS

FALA’S CRAVING This is the perfume that Fala has created; a very personal project that lasted almost 4 years and that is made from orange skin. Their aim is to create value-added products from the different parts of the fruits that cannot be used for juice. The next challenge is to turn the orange skin into a biodegradable packaging to replace oil.

growth. Pepe tells us that even if the exports were initiated by his great grandfather, the great architect of their international success is his son Chano, who has been travelling around for the last 20 years, turning planes into “his home”. He considers himself a “citizen of the world”. He has

travelled around the whole planet and knows perfectly each distributor’s needs and each country’s habits. “Thanks to him, only with Walmart we sell in over 15 countries”, Pepe and Fala say proudly. “He started up a strategy that will design our future in 10 years’ time”, Pepe states. Today, JGC products

are present in over 150 countries and international sales represent 50% of the total turnover. The US is their main market, where they have had a team for the last 30 years. 30% of the Jaume Serra cava is exported to the US.

ADVERTISING. A TURNING POINT. JGC’s marketing strategy has always been based on “conveying the quality of their products and their competitive advantages, as well as being able to communicate that added value to the consumer”, company representatives say. Their direct and transparent advertising, with slogans and jingles, is also crucial. Fala is the Head of Marketing. Although she has not been academically trained in this field, she believes in the project and she puts herself in the buyer or consumer’s shoes, which has helped her make risky and sometimes questioned decisions. She works and takes part in the creation of ads, and she personally manages and negotiates the advertising contracts. The first venture into the advertising world happened in 1984, with the launch of wine in carton. TV ad “Voy a comer con Don Simón” (I’m going to eat with Don Simon) appeared on TV for the first time. Fala tells us that their goal was to convey that this kind of wine could be used for everyday meals. The results were spectacular: in the first year, the brand managed to lead the table wine category. After that came the sangria and a lot more, until today.

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Comparative advertising. In 1998, the first refrigerated NFC juices were launched. Don Simon created a new category and sales rocketed. Fala recalls that competitive advantage was curbed shortly after because Minute Maid, owned by Coca-Cola and Danone at the time, gained most of the market share. She explains that JGC had made a huge investment in their production site, and that move had a massive impact in their sales. “We had to defend what was ours, so I defended tooth and nails against everything and everyone the comparative advertising we designed”. Fala admits that it was an aggressive campaign, difficult to understand, but there was either that option or abandoning the project. She remembers placing her position at the disposal of the Board of Directors: “If this strategy did not turn out to be successful, I would go home and start teaching, which was my profession”. It was indeed successful: Don Simon managed to become the leader of the category again. Throughout the last few years, JGC has used this strategy on other occasions: “The information we provide to the consumer is transparent”, Fala insists.


ENTERPRISES

VIÑA ARNÁIZ WINERY I also had the chance to visit Viña Arnaiz facilities together with its Director, Rafael Arévalo. Located in the heart of Ribera del Duero, with awe-inspiring views, this winery has a production of 18 million bottles per year and a capacity of 10,000 oak barrels. Pepe and Fala got really involved in its Castilian-style construction.

even 1% of the total bottled wine in the world. “The world is big and the UK, for the moment, is the largest wine importer in the world”, he says optimistically. He adds that they will need to revise prices or share taxes, but both British distributors and international manufacturers are interested in building new scenarios to ensure stability and sell more. Pepe is more careful in this sense: “Nowadays, the UK does not have the capacity to produce wine or juice, but its consumption per capita of both products is high. Climate change will favour them in

Target countries China, the US and West Africa are the target areas for JGC in the short to medium term. In order to tackle this ambitious internationalisation plan they had to take a step forward: opening international offices with their own team and with a local team. They already have 10 offices, and Shanghai office was the last one. “Now our team looks like the UN”, Fala tells us with satisfaction.

PEPE GARCÍA CARRIÓN: 360º INNOVATION I’m not as worried about innovation as about speed; everything moves very quickly. The truth is it has caught us at a time when we are really trained; if we started from scratch today, we would not succeed. Here’s an example: we have turned our juice production site in Almería, the smallest one, into a start-up. Small machines making small and customised productions, for example using a 1.000 kilo pot to make baby food. It is funny how the world of wine is changing. We started in 1992 making wines with 5% alcohol content with a special authorisation from the Ministry, as it was not allowed to use the word “wine” for products with less than 9% alcohol content. Since then, we have not stopped reducing the percentage, adding more colours, etc. We have been pioneers in the creation of the first blue wine, for example. Our eagerness of innovation is huge. We tackle all areas: of course products, but also machinery, transport and technologies which allow us to be efficient and sustainable. FALA CORUJO. NEW PRODUCTS FOR NEW CONSUMERS. We want to transform fruit by-products into value-added products. The first “experiment” took us 4 years and the result was a perfume, which I have called “Capricho de Fala” (Fala’s craving), elaborated from orange skin. It is a very personal project, and we do not market it, we just give it as a present. When we launched 5% alcohol content Vega Verde, the advertising campaign was addressed to women and young people. It was our way of showing the world of wine to young people.

United Kingdom is the other big market and the “best retail school in Europe”, as Chano explains. He tells us that JGC leads the juice category of several British supermarket chains, and that 50% of the cava sold in the UK is Jaume Serra. They export 100 million litres of cava and juice to this country. The main two JGC markets are on the radar due to Trump and Brexit’s protectionism, but Chano is not worried as he is convinced that “globalisation and free trade are irreversible”. Moreover, he highlights that in business there are bad news but also good news, for example Mexico will remove the taxes from Spanish products and Japan will act similarly in March or April 2019. Besides this, he explains that JGC sells 40 million cases to the world, which represents not

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this sense, so we will need to be vigilant and to adapt”. In Fala’s opinion, this new scenario is ideal to build global brands, and “we’ve got a lot to say regarding this strategy”.

SMEs. My message to them is to resist, to innovate and not to give up, as size is not an issue anymore. PEPE G.C

In Chano’s opinion, the US still has a lot of potential because “there are actually 51 countries within a country”. The other two target areas are:

• West Africa (mainly Nigeria), where the brand has been present in the last 100 years. Chano tells us with admiration how his great-great-grandfather crossed the Mediterranean and had the merit of selling in Ghana, Togo and Senegal. He says the wine people drink there is Don Simon, and that their juice is growing significantly. • Asia (China, but of course also Korea, Vietnam or Japan). In his opinion, in these markets everything still remains to be done. In China, JGC sells more than 1 million cases of

Until very recently, there were only pineapple, orange and peach juices; now, they have lots of different fruits, veggies…tomorrow we don’t know what they will contain, so we need to be vigilant. CHANO GARCÍA CARRIÓN. LEARNING FROM INTERNATIONAL MARKETS. When we travel around the world, we come back with our suitcases full of samples. We evaluate them and decide whether it’s worth it to improve the products. Japan is the most innovative country. They do not innovate to sell, they innovate just for the sake of it, and if it does not work, they remove the product from the store. We analyse all new products launched in the world in real-time. It is very motivating and fascinating. We have been innovating for 30 or 40 years because in countries such as Japan or the US, you either innovate or you don’t sell.

C84 AECOC CONFERENCE

105


ENTERPRISES

VIÑA ARNÁIZ WINERY I also had the chance to visit Viña Arnaiz facilities together with its Director, Rafael Arévalo. Located in the heart of Ribera del Duero, with awe-inspiring views, this winery has a production of 18 million bottles per year and a capacity of 10,000 oak barrels. Pepe and Fala got really involved in its Castilian-style construction.

even 1% of the total bottled wine in the world. “The world is big and the UK, for the moment, is the largest wine importer in the world”, he says optimistically. He adds that they will need to revise prices or share taxes, but both British distributors and international manufacturers are interested in building new scenarios to ensure stability and sell more. Pepe is more careful in this sense: “Nowadays, the UK does not have the capacity to produce wine or juice, but its consumption per capita of both products is high. Climate change will favour them in

Target countries China, the US and West Africa are the target areas for JGC in the short to medium term. In order to tackle this ambitious internationalisation plan they had to take a step forward: opening international offices with their own team and with a local team. They already have 10 offices, and Shanghai office was the last one. “Now our team looks like the UN”, Fala tells us with satisfaction.

PEPE GARCÍA CARRIÓN: 360º INNOVATION I’m not as worried about innovation as about speed; everything moves very quickly. The truth is it has caught us at a time when we are really trained; if we started from scratch today, we would not succeed. Here’s an example: we have turned our juice production site in Almería, the smallest one, into a start-up. Small machines making small and customised productions, for example using a 1.000 kilo pot to make baby food. It is funny how the world of wine is changing. We started in 1992 making wines with 5% alcohol content with a special authorisation from the Ministry, as it was not allowed to use the word “wine” for products with less than 9% alcohol content. Since then, we have not stopped reducing the percentage, adding more colours, etc. We have been pioneers in the creation of the first blue wine, for example. Our eagerness of innovation is huge. We tackle all areas: of course products, but also machinery, transport and technologies which allow us to be efficient and sustainable. FALA CORUJO. NEW PRODUCTS FOR NEW CONSUMERS. We want to transform fruit by-products into value-added products. The first “experiment” took us 4 years and the result was a perfume, which I have called “Capricho de Fala” (Fala’s craving), elaborated from orange skin. It is a very personal project, and we do not market it, we just give it as a present. When we launched 5% alcohol content Vega Verde, the advertising campaign was addressed to women and young people. It was our way of showing the world of wine to young people.

United Kingdom is the other big market and the “best retail school in Europe”, as Chano explains. He tells us that JGC leads the juice category of several British supermarket chains, and that 50% of the cava sold in the UK is Jaume Serra. They export 100 million litres of cava and juice to this country. The main two JGC markets are on the radar due to Trump and Brexit’s protectionism, but Chano is not worried as he is convinced that “globalisation and free trade are irreversible”. Moreover, he highlights that in business there are bad news but also good news, for example Mexico will remove the taxes from Spanish products and Japan will act similarly in March or April 2019. Besides this, he explains that JGC sells 40 million cases to the world, which represents not

104

C84 AECOC CONFERENCE

this sense, so we will need to be vigilant and to adapt”. In Fala’s opinion, this new scenario is ideal to build global brands, and “we’ve got a lot to say regarding this strategy”.

SMEs. My message to them is to resist, to innovate and not to give up, as size is not an issue anymore. PEPE G.C

In Chano’s opinion, the US still has a lot of potential because “there are actually 51 countries within a country”. The other two target areas are:

• West Africa (mainly Nigeria), where the brand has been present in the last 100 years. Chano tells us with admiration how his great-great-grandfather crossed the Mediterranean and had the merit of selling in Ghana, Togo and Senegal. He says the wine people drink there is Don Simon, and that their juice is growing significantly. • Asia (China, but of course also Korea, Vietnam or Japan). In his opinion, in these markets everything still remains to be done. In China, JGC sells more than 1 million cases of

Until very recently, there were only pineapple, orange and peach juices; now, they have lots of different fruits, veggies…tomorrow we don’t know what they will contain, so we need to be vigilant. CHANO GARCÍA CARRIÓN. LEARNING FROM INTERNATIONAL MARKETS. When we travel around the world, we come back with our suitcases full of samples. We evaluate them and decide whether it’s worth it to improve the products. Japan is the most innovative country. They do not innovate to sell, they innovate just for the sake of it, and if it does not work, they remove the product from the store. We analyse all new products launched in the world in real-time. It is very motivating and fascinating. We have been innovating for 30 or 40 years because in countries such as Japan or the US, you either innovate or you don’t sell.

C84 AECOC CONFERENCE

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Priorities. 15

ENTERPRISES

wine per year, but according to Chano, if a producer can sell 100 million cases there, “Then why not us?” he asks rhetorically.

The challenge of this achievement, as Chano anticipates, is to position the global and premium Pata Negra brand for wines and Don Simon brand for varietal wines, sangria and juices. Moreover, he highlights that the key to success is the team: “we have a lot of people full of enthusiasm and with a great attitude, who really feel part of JGC, and I’m sure we will get really far with so much talent and disposition”. The company’s ultimate goal is to sell 20% to Spain, 30% to the EU and 50% to the rest of the world. “That way, we will consider ourselves an international company”.

Family values Throughout the years, JGC has grown and become stronger based on a list of values that, despite the size and dimensions the company has acquired, have kept the family spirit. The three members of the family tell us their opinion: • Work and passion. “We are in

love with the project and with all the people that work with us.

years ago, priorities were price, service and quality. There is a fourth priority now: raw materials. FALA CORUJO

This is essential, as if you don’t have a passion for what you do, you cannot sell it”, Fala says. • People. “We are now 1,100

people in JGC, plus 40,000 farmers, but it feels as if we were 50. We care about every single one of them, professionally and personally”, Pepe adds. This commitment also applies to the JGC Foundation, created in Jumilla in the 80s, aiming at helping people with disabilities enter the workplace, which represent 10% of the production sites’ staff. Chano gives us an example: “Javier Brunet - Director of Jaume Serra winery - and Rafael Arévalo - Director of Viña Arnáiz winery in Ribera del Duero - live their projects as if they were their own. That is the secret. All the production sites and wineries’ directors live their projects as their own, and that confidence in people is reassuring to keep growing.

Omnichannel is a window to sell. Markets are more dynamic than ever and the consumer compares and buys more than ever. CHANO G.C.

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• Flexibility. Despite the company’s growth, Fala admits that they have never lost the flexibility that characterises smaller companies: “If we start a project, it needs to develop quickly. We cannot afford to dedicate time and resources and prolong them unnecessarily. • Rigorousness. Pepe describes himself as a rigorous person and

his son confirms this: “What was perfect yesterday is not enough anymore. He asks for a daily revision of processes: logistical, industrial, customers…” In Pepe’s opinion, we cannot sand still, because the competition is so abundant that “if you are not awake and have new ideas, they will overcome you”. • Humility. Fala adds that humility is a fundamental quality in business, as “if you become conceited, you are lost”. Pepe fully agrees: “Success is sometimes scary, when something works I always tend to think there must be a mistake, because if you think you have achieved everything, then that will take a toll on you. • Communication and transparency. Fala describes the company as horizontal, with not many layers of management. “Any of us 3 is available at all times because we like proactive people. That proactivity, communication and transparency encourages team work, because that’s what we are, a great team”.

An ambitious future and generational replacement In 2017, JGC had a turnover of 930 million euros (45 million EBIT and 110 million EBITDA), and the forecast is to reach 1,005 million euros this year, as Pepe anticipates. Their focus is to refurbish the production sites, not because they’re old or because the capacity is low, but because new technologies are emerging which will turn out to be more efficient. The future of the company is being written now. Pepe explains that so far the focus of their job has been to become strong internally, but he might also consider purchasing new facilities. Nevertheless, he insists on the fact that it needs to be a project that adds up, rather than starting from scratch. For example, he mentions that if the


Priorities. 15

ENTERPRISES

wine per year, but according to Chano, if a producer can sell 100 million cases there, “Then why not us?” he asks rhetorically.

The challenge of this achievement, as Chano anticipates, is to position the global and premium Pata Negra brand for wines and Don Simon brand for varietal wines, sangria and juices. Moreover, he highlights that the key to success is the team: “we have a lot of people full of enthusiasm and with a great attitude, who really feel part of JGC, and I’m sure we will get really far with so much talent and disposition”. The company’s ultimate goal is to sell 20% to Spain, 30% to the EU and 50% to the rest of the world. “That way, we will consider ourselves an international company”.

Family values Throughout the years, JGC has grown and become stronger based on a list of values that, despite the size and dimensions the company has acquired, have kept the family spirit. The three members of the family tell us their opinion: • Work and passion. “We are in

love with the project and with all the people that work with us.

years ago, priorities were price, service and quality. There is a fourth priority now: raw materials. FALA CORUJO

This is essential, as if you don’t have a passion for what you do, you cannot sell it”, Fala says. • People. “We are now 1,100

people in JGC, plus 40,000 farmers, but it feels as if we were 50. We care about every single one of them, professionally and personally”, Pepe adds. This commitment also applies to the JGC Foundation, created in Jumilla in the 80s, aiming at helping people with disabilities enter the workplace, which represent 10% of the production sites’ staff. Chano gives us an example: “Javier Brunet - Director of Jaume Serra winery - and Rafael Arévalo - Director of Viña Arnáiz winery in Ribera del Duero - live their projects as if they were their own. That is the secret. All the production sites and wineries’ directors live their projects as their own, and that confidence in people is reassuring to keep growing.

Omnichannel is a window to sell. Markets are more dynamic than ever and the consumer compares and buys more than ever. CHANO G.C.

106

C84 AECOC CONFERENCE

• Flexibility. Despite the company’s growth, Fala admits that they have never lost the flexibility that characterises smaller companies: “If we start a project, it needs to develop quickly. We cannot afford to dedicate time and resources and prolong them unnecessarily. • Rigorousness. Pepe describes himself as a rigorous person and

his son confirms this: “What was perfect yesterday is not enough anymore. He asks for a daily revision of processes: logistical, industrial, customers…” In Pepe’s opinion, we cannot sand still, because the competition is so abundant that “if you are not awake and have new ideas, they will overcome you”. • Humility. Fala adds that humility is a fundamental quality in business, as “if you become conceited, you are lost”. Pepe fully agrees: “Success is sometimes scary, when something works I always tend to think there must be a mistake, because if you think you have achieved everything, then that will take a toll on you. • Communication and transparency. Fala describes the company as horizontal, with not many layers of management. “Any of us 3 is available at all times because we like proactive people. That proactivity, communication and transparency encourages team work, because that’s what we are, a great team”.

An ambitious future and generational replacement In 2017, JGC had a turnover of 930 million euros (45 million EBIT and 110 million EBITDA), and the forecast is to reach 1,005 million euros this year, as Pepe anticipates. Their focus is to refurbish the production sites, not because they’re old or because the capacity is low, but because new technologies are emerging which will turn out to be more efficient. The future of the company is being written now. Pepe explains that so far the focus of their job has been to become strong internally, but he might also consider purchasing new facilities. Nevertheless, he insists on the fact that it needs to be a project that adds up, rather than starting from scratch. For example, he mentions that if the


EMPRESAS

The whole García Carrión family. Chano’s wife, Mariona, and their 4 kids also wanted to share a moment with C84 and AECOC from the distance.

opportunity to buy a winery in Chile comes up, they will consider it in case of contingencies. He says that there have been big frosts in Spain this year and there will be a lack of wine, so the best area in the Southern Hemisphere is Chile in terms of capacity, quality and price. On another note, the company is becoming more professional. Alberto Gallardo is the new Managing Director and the managing positions in the Horeca, International and Retail departments have been reinforced. Becoming professional is important, indeed, but also being proactive and quick, characteristics of family-owned companies. “We aim at leaving in Chano’s hands a company with more future and surrounded by a good professional team”, Fala tells us.

A life together Pepe and Fala have been married for 46 years. “We have experienced everything, we also argue sometimes. When people talk about how we get along, I always say we already had a row upstairs in the morning (they live 108

C84 AECOC CONFERENCE

in the attic of their head office in Madrid)”, Fala explains cheerfully. Pepe says with a touch of humour: “I don’t get involved in the subjects she takes care of, because she does not pay attention to what I say and that way we don’t argue…” They have built a family and a business together, two projects that are intrinsically related. They are both proud of what they have created with a lot of effort, of the people who have helped build what JGC is today, of the industrial and land richness that they have generated, of the products (which are like Fala’s kids, which she tidies up when she goes to the supermarket), of the good and

Purchases. We might consider purchasing if the project is already developed and adds up. PEPE G.C.

bad moments they have experienced and of their grandchildren, who mean so much to Fala. In fact, she is convinced that her granddaughter Chantal, who is now 8 years old (the other three are boys) will be the future Managing Director, as “she was born a leader”. As we can imagine, JGC has received numerous proposals to sell the company in the last few years, but Pepe and Fala are sure about something: it is not for sale. • “I am a very emotional person, and I would like our sixth generation to continue with the business”, Fala says. • “We trust that there will not be any generational replacement issues in the future, as we are a large family”, Pepe says. JGC is a long-term project in which Industry 4.0, innovation and internationalisation will be key points to guarantee an even more distant future.

© Ana Martínez Moneo


EMPRESAS

The whole García Carrión family. Chano’s wife, Mariona, and their 4 kids also wanted to share a moment with C84 and AECOC from the distance.

opportunity to buy a winery in Chile comes up, they will consider it in case of contingencies. He says that there have been big frosts in Spain this year and there will be a lack of wine, so the best area in the Southern Hemisphere is Chile in terms of capacity, quality and price. On another note, the company is becoming more professional. Alberto Gallardo is the new Managing Director and the managing positions in the Horeca, International and Retail departments have been reinforced. Becoming professional is important, indeed, but also being proactive and quick, characteristics of family-owned companies. “We aim at leaving in Chano’s hands a company with more future and surrounded by a good professional team”, Fala tells us.

A life together Pepe and Fala have been married for 46 years. “We have experienced everything, we also argue sometimes. When people talk about how we get along, I always say we already had a row upstairs in the morning (they live 108

C84 AECOC CONFERENCE

in the attic of their head office in Madrid)”, Fala explains cheerfully. Pepe says with a touch of humour: “I don’t get involved in the subjects she takes care of, because she does not pay attention to what I say and that way we don’t argue…” They have built a family and a business together, two projects that are intrinsically related. They are both proud of what they have created with a lot of effort, of the people who have helped build what JGC is today, of the industrial and land richness that they have generated, of the products (which are like Fala’s kids, which she tidies up when she goes to the supermarket), of the good and

Purchases. We might consider purchasing if the project is already developed and adds up. PEPE G.C.

bad moments they have experienced and of their grandchildren, who mean so much to Fala. In fact, she is convinced that her granddaughter Chantal, who is now 8 years old (the other three are boys) will be the future Managing Director, as “she was born a leader”. As we can imagine, JGC has received numerous proposals to sell the company in the last few years, but Pepe and Fala are sure about something: it is not for sale. • “I am a very emotional person, and I would like our sixth generation to continue with the business”, Fala says. • “We trust that there will not be any generational replacement issues in the future, as we are a large family”, Pepe says. JGC is a long-term project in which Industry 4.0, innovation and internationalisation will be key points to guarantee an even more distant future.

© Ana Martínez Moneo



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