Passion and Innovation Fuel Leading Dairy Company

POWERFUL PARTNERSHIPS

PASSION AND INNOVATION FUEL LEADING DAIRY COMPANY

BY ALLISON STUBY MILLER

milk messenger / JUL-AUG 2020 23

POWERFUL PARTNERSHIPS

GLOBAL TOP 10 DAIRY PROCESSOR SAPUTO INC. EARNS MMPA VALUED PARTNER AWARD

Sometimes—if it’s 1954—all you need is a bicycle and $500 in cash to “plant the seeds”of a multinational dairy company. At least, that’show it happened for the Saputo family.

WHEN SAPUTO STARTED IN THE 1950S, LINO SAPUTO SR. MADE DELIVERIES ON BIKE.

Saputo Inc.

After settling in Montreal, Canada, Lino Saputo and his parents founded a small business—formally known as Saputo Inc.—that has since exploded into one of the world’s leaders in the dairy industry and the 2020 MMPA Valued Partner award recipient.

Even after modest beginnings, it was evident the company’s founders saw their determination, hard work, passion and vision as vital stepping stones to transform Saputo into an industry leader, both in Canada and around the world.

Today, Saputo products can be found in over 50 countries under market-leading brands, as well as private label brands. The company employs approximately 17,200 employees and operates 66 facilities worldwide, including 26 in the U.S.

They may no longer use a bicycle as the main mode of delivery, but the Saputo family is still at the helm, with Lino Saputo, Jr. serving as chair of the board of directors and chief executive officer. Publicly traded since 1997, Saputo is one of the top 10 dairy processors in the world and is among the top three cheese producers and one of the largest producers of extended shelf-life and cultured dairy products in the U.S.

Driving Growth and Innovation

Part of the company’s growth is attributed to various acquisitions worldwide, 32 to be exact, over the last two decades. According to Saputo, its impressive growth via acquisitions, investments in assets and innovation, and commitment to supporting the communities in which it operates have resulted in Saputo’s successful operations and products.

Leaving no class untouched, Saputo makes cheeses, fluid milk, extended shelflife milk and cream products, cultured products, dairy ingredients, and butters,

spreads and oils. MMPA supplies several ingredient products for Saputo, serving both the dairy foods and cheese divisions of their U.S. business.

MMPA Senior Director of Sales Jim Feeney said in addition to sales of raw milk, condensed skim products and cream, MMPA has helped Saputo meet their unique needs with the ultra-filtered (UF) milk system at the Constantine plant.

“Our UF and its customization capabilities has many applications that mesh well with Saputo,” Feeney said. “We worked alongside them to explore the capabilities of the line through test runs and trials to customize what they want and what they need.”

According to Terry Brockman, President and Chief Operating Officer of Saputo’s Cheese Division (USA), the company invests in innovation and is constantly exploring new projects that align with their goals and vision. This involves partnering with suppliers like MMPA on mutually beneficial products and projects.

Feeney says MMPA helps provide support to our customers like Saputo by aligning with them through the research and development process.

“We work in tandem with their research and development team to know where they want to go and how we can help them,” Feeney said. “We imagine new products not on the market today and

“We are always on the lookout for not only new product ideas, but also best practices as we continue to move forward in the technology realm envision how we can align to make them possible. Together, we’re driving innovation.”

Research and development is also very important to the Company.

“We are always on the lookout for not only new product ideas, but also best practices as we continue to move forward in the technology realm,” Brockman said.

Capitalizing on Consumer Trends

The Cheese Division (USA) has an established research and development process, comprised of multiple cross functional departments, that Brockman says has proven successful.

“Our development process incorporates the following: (i) envisioning strategic opportunities through industry dynamics and key insights, (ii) examining how we can deliver on consumer needs through product ideation leveraging R&D and culinary capabilities and (iii) executing a scalable plan to commercialize effectively and efficiently,” Brockman said.

Brockman says they strive to stay on top of consumer’s evolving needs in the allimportant cheese category.

“The Cheese Division (USA) continues to review current dairy trends to understand the changing needs of consumers to ensure we are delivering the right roducts for today’s consumer,” Brockman said. “Across key brands, we have launched multiple product formats such as new snacking items and have continued to grow core product types.”

For example, as demand for whole milk has regenerated in recent years, Saputo’s brand Frigo® Cheese Heads® relaunched its “super string cheese” product with whole milk. According to IRI, whole milk sales have been up 6 percent since 2016 compared to prior year and have continued to grow. The use of whole milk and “unique fortification” of Vitamin A & Calcium helps distinguish the Frigo® Cheese Heads® product on store shelves.

“As a processor, we are in a unique position to affect cheese making throughout the entire manufacturing process, staying ahead of ever-changing consumer taste preferences,” Brockman continued.

While strategic developments are important to the company, Brockman also pointed to their focus on their employees, 6,500 of which are based in the U.S.

Focusing on Passion and Family Spirit

“Our employees are our greatest asset. Saputo’s longstanding, unique and commendable culture is something that is very important to the company,” he said.

This has continued through the added challenges of the COVID-19 pandemic. Along with ensuring business continuity, Saputo zeroed in on “supporting [the] frontline.” In addition to adapting production, supporting their local communities and patron farmers, Saputo helped their employees by “mitigating financial, physical and mental health impacts,” going back to the values that guided them to the success they have today.

“As part of the Saputo family, the various divisions, though spread-out across the world, are connected by imperative building blocks of our business – our values and overall culture,” Brockman said. “Family spirit, loyalty and passion are the cornerstones of our approach, and teamwork, continuous improvement and quality are at the heart of our every initiative.”