Daring to be
Krispy Krunchy
The story behind the growth and popularity of Krispy Krunchy chicken
Agriculture
Four of the largest upcoming agro-informatics trends that are driving change
Labelling
Food allergen labelling and the need to protect the safety of consumers
Issue 192 - 2023
Rachel Cope, Founder & CEO at 84 Hospitality, on filling a gap in the market, and in the community
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Hello and welcome to the February issue of Food Chain. In this month’s magazine, technology takes a front seat, as we look at a variety of areas where the right solution can pay dividends. These include sustainability, frozen food supply chain, and agriculture. We also cover ‘lean manufacturing’ – once believed to be the pinnacle of efficiency, our author Marcel Koks analyzes the theory through the lens of recent events and asks: ‘In pursuit of greater efficiency and reduced costs, have we changed the equation to such an extent that the risk/ reward ratio has become significantly out of balance?’ Find out the answer in his feature on page 14.
If it’s insights from business leaders that interest you, for the inside scoop on what makes their business’ tick – these start on page 52.
Libbie Hammond, Editor
LH@finelightmediagroup.com
Our cover story looks at 84 Hospitality, a prime example of entrepreneurship and business foresight. Rachel Cope, Founder & CEO, shares what sets it apart on page 52.
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Inside
issue Mars Wrigley Lean Frozen food manufacturing Agriculture Digital technology Main Interview 14 26 22 18 8 Contents 2
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Restaurants Allergen labelling Sustainability Functional ingredients Waste 34 30 38 46 42 foodchainmagazine.com 3 food chain magazine
84 Hospitality
Krispy Krunchy Kevin’s Natural Foods Cookies-n-Milk
Cover Story 58 64 78 72 52 Contents 4
Donald Russell
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Rhubarb Hospitality Collection S&L Companies Heart of America Group Nathan’s Famous 116 94 106 100 82 88 foodchainmagazine.com 5 food chain magazine
Group
127 Wall/ Yellow Banana
Lone Star Bakery, Inc.
OH SNAP! Camerican
Casino Del Sol
122 130 142 136 152 148 Contents 6
Monday Night Brewing
Wen JAI Palermo’s Pizza Nardelli’s Brothers Drinks The Hershey Company Soreen 184 168 180 174 156 162 foodchainmagazine.com 7 food chain magazine
Pleasure you can measure Pleasure you can measure
Marc Carena of Mars Wrigley discusses the organization’s impressive commitment to people, product and planet
From Skittles and Snickers to M&M’s, and Marc Carena’s personal favorite, Maltesers, Mars Wrigley (Mars) boasts a wealth of wellloved brands. For generations, people, and their pets, have enjoyed Mars’ products and services, and the organization’s ‘Associates’ (how Mars refers to its employees) work hard to consistently evolve and deliver on customer expectations.
Earlier in 2022, Mars announced the appointment of Marc Carena as Regional President for Europe, Central Eurasia, Belarus and Turkey, which accounts for around one third of the business’ entire activity. Marc is excited to be part of an organization that has a positive impact on people’s lives across the world. “At Mars Wrigley, we inspire moments of everyday
Marc Carena, Regional President for Europe, Central Eurasia, Belarus and Turkey
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Mars Wrigley
happiness for our consumers. This is a wonderful reason to go to work. I’m lucky enough to work with some of the biggest and best-loved brands in the world, and having the opportunity to grow them further is a challenge I’m excited to be tackling.”
Marc joined the organization from McDonald’s Russia, where he spent almost four years as Managing Director. In this role, he maintained full responsibility for the
Russian market, including over 850 restaurants and 65,000 employees. Before joining McDonald’s, he spent six and a half years in senior general management and marketing positions with the German retailer, Metro Group. He has also held several senior general manager, marketing and sales positions at Nestlé, across Europe, Asia and Africa.
Marc brings his extensive experience in retail, foodservice and Fast-Moving Consumer Goods (FMCG) to help enhance and drive Mars’ strategy for purpose-led growth across Europe, Central Eurasia, Belarus and Turkey. He provides a unique understanding of the industry, its value chain, and consumer and customer needs. His experience of managing in over 30 countries, from developed to developing markets, across three
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There is a real emphasis on talent, continuous development, and collaboration
continents, will help him to successfully lead his current portfolio of countries. Passionate about championing employees and their development, he is keen to engage with the Mars ‘Associate’ concept.
Lasting impact
“There is a real emphasis on talent, continuous development, and collaboration. Everyone has a voice, and a progression plan. I really don’t think this is true of many companies. Mars nurtures an equalitarian culture; it is informal and far from hierarchical. Even the CEO doesn’t have a separate office,” explains Marc.
Associates at Mars are ‘everyday heroes,’ united by an inspiring purpose. They take pride in Mars’ unique way of doing business, and everyone is empowered to learn, expand, dream and develop. Mars is proud to be ‘family-owned, futurefacing, and purpose-driven.’ Embedded within its culture is the mantra: ‘the world we want tomorrow, starts with how we do business today.’ As a global company, with the footprint of a small country, the organization has the responsibility, and the opportunity, to leave a lasting impact on the world. Indeed, Mars challenges its people, partners and suppliers to transform the way it does business, every day.
“As a private company, we have the luxury of thinking in generations rather than quarters,” continues Marc. “So, we have a chance to make a real impact. Mars is strongly led by its purpose, and tries to achieve holistic value creation, incorporating positive societal impact. It is a trusted partner to stakeholders as well as a strong performer, financially. Our
remuneration structure helps us achieve near-term results without compromising on the world we want tomorrow.
“Mars is led by a set of strong core principles, one of which is mutuality, which means working together with customers and suppliers to find the win-win outcome in every situation. From people and R&D to sustainability and packaging, our approach is underpinned by our global purpose, thereby ensuring that we take a principled, purposeled approach to all decision making.”
Indeed, this principled approach is threaded throughout the organization’s operations, and particularly so, in terms of attitude and approach to sustainability. Mars’ ‘Sustainable in a Generation’ plan includes working to create a healthy planet and thriving communities. One such commitment in action is accelerating its progress to achieving net zero Greenhouse Gas (GHG) emissions by 2050.
“I am excited about our sustainability agenda. We are mobilizing our suppliers on climate action. Since joining the Supplier Leadership on Climate Transition (LoCT) program last year, Mars has engaged over 85 suppliers to enrol, representing roughly 25 percent of our total carbon footprint. We are focused on engaging and mobilizing our largest 200 suppliers to maximize impact, and catalyze change through our broader supply chain,” enthuses Marc.
An additional commitment is evidenced by Mars’ dynamic relationship with CARE, an organization that saves lives, defeats poverty, achieves social justice, and fights for women and girls. “Via our Women for Change Program,” Marc explains, “we have been investing in community-
Mars Wrigley 11 foodchainmagazine.com
based initiatives to empower women through finance, skills and networks. In September 2022, we exceeded our target by reaching more than 77,000 Village Savings and Loans Association members in Ghana and Cote d’Ivoire, more than 75 percent of which are women.”
Partnership approach
The target to be net-zero, not only as a business but also with a scope-3 supply chain, by 2050, is an incredibly exciting ambition, one that will be driven, in part, by Mars’ desire to contribute to a circular economy. This model of production and consumption involves sharing, reusing, refurbishing and recycling existing materials and products for as long as possible.
2050
Indeed, Mars’ ice-cream factory in Steinbourg, France, was the first in its global network to run entirely from renewable energy. It no longer uses energy from fossil fuels, but rather from renewable wind, hydro and solar sources. “We now hope to roll this measure out across additional sites, as it is a crucial step in our global commitment to achieve carbon neutrality throughout the supply chain by 2050,” elaborates Marc.
“We are also striving to ensure our packaging material, for example, never becomes waste, but rather, is recycled, reused or composted. To address the
issue, we are investing hundreds of millions of dollars in the reimagining and redesigning of our packaging. This includes redesigning more than 12,000 packaging types across our diverse portfolio to fit with the recycling infrastructure that either exists today, or is likely to exist in the near future. Today, almost half of our packaging portfolio is undergoing redesign or elimination.
“In 2020, we introduced our new gum bottle, changing the material from High Density Polyethylene (HDPE) to Polyethylene Terephthalate (PET), a more popular recyclable plastic material. Then in 2021, in the German market, we launched a further improved gum bottle featuring 30 percent recycled PET. Furthermore, our new M&M’s pouch is designed to be recyclable, according to the existing local packaging waste collection and sorting system. By simplifying the design and structure of our flexible packaging formats, we are significantly improving their chances of being recycled. To reinforce these measures and organizational accountability, Mars’ top 300 executives now have remuneration linked to delivering against these packaging targets.
“Our business can only be successful if our partners, including the communities, suppliers, customers and planet we depend on, are also thriving. This isn’t altruism, it is sound, mutual business,” reinforces Marc. “Over recent years, we’ve seen how important our partners are to our operations, which is why we will continue to prioritize our partner and supplier relationships.”
One crucial component of the Mars supply chain is cocoa. Marc explains: “We have committed $1 billion over ten years as part of our ‘Cocoa for Generations’ strategy. Launched in 2018, it aims to
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deliver real, lasting positive change across the supply chain for future generations. The strategy focuses on the critical issues that need to be addressed for cocoa farming families to thrive, taking action to help protect children, preserve forests, and improve farmer income. In October, we announced that from 2023, 100 percent of the cocoa purchased for Mars’ direct factory operations across Europe will be responsibly sourced. This is a huge milestone for the business, and one of which I’m immensely proud.”
Sustainability focus
In Marc’s relatively short tenure to date, he has relished getting under the skin of the business. From market visits and factory tours to meeting colleagues and exploring the full product portfolio, he has had the opportunity to learn about the strong foundations of the business, potential areas for development, and reflect on plans for the future.
“We’ve made huge leaps forward in recovering ground lost during the pandemic due to reduced footfall in retail stores. We’ve worked closely with our retail customers to ensure that the right products from
the right brands are in the right locations in store, to make sure they are available and noticeable for consumers. In fact, our gum brands are leading the charge in this respect. With exciting new formats and flavors, we are working hard to maximize distribution and display across the region. Consumers love our gum and we want to make sure they can find it wherever they go.
“Without a doubt, post-induction, I’m aware that the biggest challenge we face, not just as a business but as a global community, is sustainability. However, we do already have a great foundation for this with our ‘Sustainable in a Generation’ program, and our ambitious targets. We know that we must act now; deadlines in the future cannot be an excuse for inaction and delay. We have already cut our full value chain GHG emissions by 7.3 percent since 2015 despite business growth. We’re committed to delivering this by having robust internal governance to ensure we hold ourselves accountable to our ambitions,” he concludes. ■
www.mars.com
Mars Wrigley 13 foodchainmagazine.com
When is LEAN too LEAN ?
Marcel Koks asks if lean, rigid supply chains are still a
option for food and beverage manufacturers
Supply chains everywhere have become too lean - and not just in the food and beverage industry. This trend was highlighted by pandemic-driven shortages in virtually everything - medicines and medical equipment, construction supplies, even toilet paper. These shortages show no signs of stopping either. UK supermarkets are still seeing empty shelves due to a lack of truck drivers and because of manufacturers struggling to source ingredients. The ongoing war in Ukraine is causing a noticeable lack of availability of wheat and sunflower oil, amongst other products, and growers are putting the brakes on the cultivation of certain produce because of the excessive energy costs involved.
viable
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Lean 15 foodchainmagazine.com
The current situation has led the UK’s National Farmers Union (NFU) to warn that the UK is sleepwalking into a food supply crisis, which is not actually that surprising given that current shortages show no signs of abating. If the last few years have taught us anything, it is to always expect the unexpected and never say never. For the food and beverage sector in particular, this is what makes risk management not only important but difficult too.
So how did we get here?
Since the early 1980s, product portfolios and customer choice in supermarkets have exploded. For example, in the past you only had fresh produce during the local harvesting season, but now you can eat any fresh produce the whole year round because there is always somewhere in the world where it is being harvested. Smaller pack sizes are more prevalent, to cater for those who live alone, and convenience foods are now a major feature of any supermarket. On the sourcing side, a great deal of complex new ingredients are now available to manufacturers, and new varieties of crops have been developed.
All this leads to longer, increasingly complex supply chains. For the food and beverage sector, this has seen the establishment of rigid supply chains, many of which have grown out of long-standing relationships. In times of stability, these rigid, tried-and-tested supply chains worked well but, as we have seen more recently, in times of turbulence and unpredictability, a different approach is needed.
As has become all too evident, certain food and beverage supply chains are precariously extended around the globe, making even the slightest hiccup ripple through like a destructive shock wave. Over-extended supply chains and a reliance on single sourcing, in combination with trying to run leaner manufacturing operations, have all played a role in the current situation. While these can all contribute to more efficient manufacturing, could it be that this approach has been taken to risky extremes? In pursuit of greater efficiency and reduced costs, have we changed the equation to such an extent that the risk/reward ratio has become significantly out of balance? With this in mind, perhaps a little fat in the supply chain diet may not be such a bad idea, after all?
A careful balancing act
Of course, adding a little ‘fat’i.e., buffer - into the supply chain comes with increased financial impact as well as potential risk of obsolescence, depending on the item in question. Hence, this course of action needs to be balanced against the potential benefits to be reaped in terms of resilience and maintaining those all-important customer commitments. Better demand forecast data, visibility deep into supply tiers, hedging and buffering - these are all tools that can be deployed. But, ultimately, it all boils down to this: food and beverage businesses need to constantly and consistently assess and adjust their supply chain strategies to respond to changing demands and changing market dynamics.
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This could involve a variety of factors. So, more local sourcing and the ability to switch easily to other ingredients and suppliers, taking into account any knock-on effects on product formulations and product quality. At the same time, if sourcing is to be brought closer to home, perhaps consumers might have to accept that there will be less choice of fresh produce? The growth in popularity of veg boxes, with seasonal produce delivered direct to the door, is testament to the fact there is an appetite to shop seasonally. From a sustainability point of view, this would certainly be helpful too, as would a reduction in packaging, something else that could simplify the sourcing process.
A cultural shift
Industry culture also bears some responsibility for the inflexibility of supply chains. Typically, large retailers have wielded enormous power to force suppliers to operate on the thinnest of margins, because they themselves have had to fight hard for every pound of profitability. They have also not permitted suppliers to pass any unexpected cost increases on to them, further tightening the vice-like grip on the suppliers. What has resulted is a cascade of brutal cost pressure throughout the supply tiers, with major suppliers also guilty of similarly pressurizing their own suppliers. With the current cost of living crisis, this situation is only set to get worse.
If any good can come out of the current situation, perhaps it is that it has forced customers and suppliers to realize their mutual interdependence, working towards greater collaboration and trust, leveraging innovative technologies to facilitate this.
Lessons from the past
While there is reason to hope that some of the lessons learned from the current shortages, in terms of supply chain strategies and supplier relationships, will become institutionalized in the food and beverage
industry’s culture, an extra dose of vigilance is recommended to avoid falling back into old ways. But this could very well change if companies and consumers have to pay for the true cost of the environmental footprint of extensive, complex supply chains. It is all a very careful balancing act but one which the industry needs to perfect if it is to continue to thrive in our ever-changing world. ■
For a list of the sources used in this article, please contact the editor.
Marcel
Marcel Koks is Infor’s food industry strategy leader. Infor is a global leader in business cloud software specialized by industry. Infor’s mission-critical enterprise applications and services are designed to deliver sustainable operational advantages with security and faster time to value. Over 60,000 organizations in more than 175 countries rely on Infor’s 17,000 employees to help achieve their business goals.
Koks www.infor.com
Lean 17 foodchainmagazine.com
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TIME TO ADAPT
The three essentials to satisfy the consumer appetites of 2023 and deliver more sustainable and meat-alternative products
By Laura Gilbank
The UK food market is expected to be worth £241.3 billion by 2027, with the plant-based protein market alone forecasted to reach £565 million by 2025. With research showing some 7.2 million adults in the UK are now following a meat-free diet - meaning they are now vegetarian, pescatarian, or vegan - the UK food industry is under increasing pressure to cater for more sustainable lifestyles.
This new environment will require food businesses to take a good look at their manufacturing processes and introduce a strong digital ecosystem to meet the demand for meat alternative products and help food businesses introduce more sustainable operations.
I believe that there are three essential ingredients to a digital ecosystem that will help food businesses achieve sustainability success in 2023.
1. Sustainability is crucial to satisfy food concerns
It will be crucial for businesses to address food waste in 2023. The UK alone produces around 25 million tons of CO2 each year from food waste, but significant change is coming. With the United Nations initiative to reduce food waste by half before 2030 and with 55 percent of consumers adopting lifestyle changes to reduce their carbon footprint, many food businesses will follow suit. But it doesn’t stop with sustainable food options. Consumers want greater transparency surrounding the food they buy, and recent legislative changes around allergens, such as Natasha’s Law, are making traceability a musthave factor in all food operations. A foodspecific Enterprise Resource Planning (ERP) system can tackle food wastage and food safety concerns around allergy management, as its high-quality tracking and inventory
Digital Technology 19 foodchainmagazine.com
management capabilities allow businesses to follow products through their entire lifecycle. This insight can highlight areas where businesses need to reduce their carbon footprint and prevent issues such as crosscontamination along the supply chain.
It’s important that businesses remember to provide and display information about the product’s lifecycle and how products can be reused to their consumers. If a business can become more transparent with its product origins, it will unlock a larger pool of conscious consumers and play a major role in solving environmental challenges within the food industry.
2. Customer experience (CX) becomes a critical differentiator to support healthier lifestyles
CX will be crucial for businesses to excel in 2023, with customers wanting their buying experience to replicate
their personal ones. Customers want to be able to research information online, compare offers, and request prices on products at their own leisure. I believe with the increase in digital marketplaces, it makes it even harder for businesses to be able to differentiate themselves from the rest. But an innovative way that businesses can stand out is through their customer experience – with 86 percent of buyers willing to pay more for better CX. This is where a Customer Relationship Management (CRM) system will allow for the forward-thinking business to explore this CX opportunity.
A CRM system gives businesses visibility of their potential customers, with buyer insights, order history, and preferential analytics. This can be taken to the next level through incorporating a CRM system with a food-specific ERP system to gain real-time accessibility and data sharing capabilities. This allows for
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businesses to fulfil customers’ needs and wants – turning prospects into customers.
3. Sustainable products at a sustainable price point
Throughout 2023, more people will turn to plant-based diets, not just vegans. Animal welfare, environmental concerns, and reducing personal carbon footprints are the driving forces behind this market trend, as a recent study shows that 31 percent of consumers consider moving to a plant-based diet will have a positive impact on climate. So where does this leave food businesses?
It’s time for them to embrace this trend, and already some companies are leading the way. Birds Eye have released their ‘Green Cuisine’ range, and small start-up, Meati, produces less processed products to satisfy both meat lovers and non-meat-eating consumers. However, vegans in the UK spend on average £14 a month more on vegan products compared to meat eaters. With food prices at their highest in 40 years and the recent cost-ofliving increases, it’s crucial for forward-thinking businesses to keep their prices reasonable.
Food-specific ERP software can help with long-term savings and reduce the cost of manufacturing products. For instance, QR code scanners can gather information about recalls, which can help with product quality checks to ensure food is not wasted once it’s ready to be used. Warehouse management tools can also automate procedures along the supply chain, making it more efficient. Together, these additional features soften the cost burden that comes with product recalls and products being wasted due to being out of date.
Food for thought in 2023 with sustainable meat-alternatives and improved CX
As we head into 2023, it’s clear that the food industry’s landscape is changing, and businesses need to adapt to meet these changes. Food companies must look to change their outlooks on sustainability for both the product and their pricing strategies. Improved CX will help businesses gain their share of these lucrative opportunities - and this is where a strong digital backbone upheld by industry-specific ERP systems can help food companies adapt to changing consumer eating habits in 2023. ■
For a list of the sources used in this article, please contact the editor.
Laura Gilbank www.columbusglobal.com/en-gb
Laura Gilbank is Business Development Manager at Columbus UK. With more than nine years of sales experience, much of it in Outsource IT, ERP and CRM platforms, Laura’s success is built on a clear and documented understanding of client needs as well as encouraging success with internal stakeholders. Columbus is an expert in helping ambitious companies digitally transform, maximize assets and futureproof their business operations.
Digital Technology 21 foodchainmagazine.com
SUCCESS GROWING
Agro-informatics trends transforming the food industry in 2023
By Ron Baruchi
Driving the food industry forward from the ground up, the agricultural industry looks much different today than it did hundreds of years ago. Mechanization changed agriculture’s reliance on human labor and horsepower. The Green Revolution harnessed selective
breeding allowing more grain to be produced per acre, helping to feed the growing population and enabling food producers to create new products. Over the past few years, this change has continued, with an increasing focus on sustainability worldwide, as a result of consumer demands
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and changing production policies. A large part of this is also driven by the agricultural industry, where sustainability improvements are fed throughout the production chain.
In 2023, we’ll see an increasing number of familiar challenges being addressed with new technologies. While mechanical technologies continue their development, it’s the digital technologies we will see driving the most
change within agriculture. Below, I’ll dive into four of the largest upcoming agro-informatics trends I see pushing sustainable change in food production in 2023 and beyond.
A focus on increasing production to meet growing global needs
The Food and Agriculture Organization estimates that by 2050, we will need to produce 60 percent more food to feed a world population reaching nearly ten billion. Even if we hit that mark, 300 million people will still be grappling with food scarcity.
Developing countries will play a key role in this global food supply. Today, countries like the Philippines and Colombia are setting records for US exports. In 2023, developing countries will continue to account for most of the growth in US agricultural exports.
As indicated by the US Farm Service Agency, there will be 1.2 million fewer acres dedicated to corn production in the United States. As a result, farmers will need to have significantly higher yields from their land in order to meet the food needs in the face of a growing global population. For the food industry, this represents a significant supply chain risk.
In the past few years, extreme weather events, Covid-19 supply chain disruptions, and worldwide economic concerns have severely impacted food and beverage supply chains. These factors will continue, and more will join, carrying the potential to shift the reality of 2023 from these projected outlooks.
An increased use of AI-based digital tools
As technology adoption grows, the digital age continues to thrive. In farming, adoption has the potential to mitigate the previously mentioned supply chain risks. From measuring soil nutrient levels to monitoring irrigation and using drone imagery to map and estimate disease presence, Artificial Intelligence (AI) will become a constant
Agriculture 23 foodchainmagazine.com
presence in agriculture, enabling more efficient, predictable food production and higher quality raw ingredients.
Global spending on smart technology and connected systems in the ag space is projected to triple in revenue by 2050. With it, the capabilities of these technologies will grow, in turn enabling food producers to benefit. For food producers who own the farms
from which they harvest raw ingredients, investing in such digital tools could be revolutionary.
Closely related, synthetic data is often used to validate AI models. Based on real-world data, and created by a model that uses the parameters of real-world datasets, it can be used to create a digital twin. This synthetic digital twin could be used to more accurately
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predict and even impact the amount of raw ingredients a food and beverage company will receive, improving planning capabilities. With so much potential, use of this will increase, with Gartner predicting it will outpace real data in AI models by 2030.
A larger use of precision agriculture, primarily to decrease production costs
Precision agriculture harnesses smart, connected technology systems to improve grower outcomes. Growers can save time, money, and resources – all at a premium in today’s world – with tools that support crop monitoring and targeted crop nutrition plans. This makes producing the raw ingredients cheaper, with cost benefits being passed to food producers.
In 2023, using precision AgTech tools for precise fertilizer application will be more important than ever, driven by rising fertilizer costs. Fertilizer costs increased the most of any input in 2022, with projections that this will further increase over the coming year. With no other way to recoup the costs, farmers have been raising the price of their produce, making profit margins smaller for food and beverage companies. The improvement of precision agriculture means farmers input costs will be reduced, creating a positive knock on effect.
A continued focus on sustainability
Sustainability isn’t a new trend or topic in 2023, but it’s a safe bet that companies will double down on their efforts. To do so, they’ll need to quantify their impact on sustainability. To consumers, a highly sustainable product is a great selling point, and food producers can significantly improve their sustainability ‘scores’ by sourcing sustainably grown ingredients.
Along with positively impacting the environment, financial benefits of environmental sustainability also exist.
As well as the numerous carbon markets available for US producers, the USDA’s Natural Resources Conservation Service is offering technical assistance and financial support for improving air quality, conserved ground and surface water, soil health, improved or created wildlife habitats, and more, encouraging farmers to grow sustainable ingredients for the food industry.
Staying abreast of all the industry changes can be a challenge. However, with pressures from a changing climate and growing population, adapting is necessary.
Quickly understanding the impact of new technologies or production practices on raw ingredient supply and quality is critical in driving profitable and sustainable change. Reviewing available research can help to predict plant growth and development. In turn, this allows food and beverage companies to predict their supply of raw ingredients, an invaluable foresight for planning. Ultimately, it pays food companies to consider the stage before the factory - the growing of raw ingredients. ■
For a list of the sources used in this article, please contact the editor.
Ron Baruchi www.agmatix.com
Ron Baruchi is CEO of Agmatix, an agro informatics company that develops data-driven solutions for ag professionals worldwide. Its cutting-edge technology platform uses agronomy data science and advanced AI technology to convert agronomic data into actionable insights at field level. The SaaS platform aggregates, standardizes, and harmonizes agronomic data from trials and experiments, unlocking a significant new layer of knowledge. With a revolutionary approach, Agmatix aims to solve the lack of data standardization to dramatically improve agricultural practices, crop yields, and nutritional quality, and to promote sustainable agriculture.
Agriculture 25 foodchainmagazine.com
Keep your COOL
Increase confidence in supply chain predictability through smart manufacturing
By Jim Bresler
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Food and Beverage (F&B) manufacturers are under increasing scrutiny and pressure. Problems with empty grocery store shelves have mostly subsided since the pandemic, but F&B manufacturers still have plenty of challenges to contend with today. Key challenges include environmental volatility that can impact production, ingredient availability and transportation as well as labor shortages that impact productivity across an enterprise’s supply chain operations.
Frozen F&B suppliers face an added hurdle in the industry - guaranteeing that their goods stay frozen during transportation. Logistical efficiency is essential for making sure products reach customers unscathed and at peak quality, thus cementing a successful supply chain process.
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Frozen food manufacturing
Labor shortages and environmental disruptions are expected to continue or worsen in the coming years. In response, F&B manufacturers must leverage smart manufacturing technologies to enable supply chain and production predictability. Accurate demand and inventory forecasts produce insights that enable F&B companies to develop strategies that minimize food waste and adhere to regulatory requirements. In addition, better predictability enables enterprises to circumvent disruptions caused by natural disasters and labor shortages.
Advanced inventory & logistics management challenges
The F&B industry is facing increasing demand for longer product shelf life. At the same time, regulatory agencies are examining food manufacturers through a critical lens following the events of the pandemic and the recent national baby formula shortage across the US. Further complicating operations are challenges surrounding ingredient sourcing, production planning and logistics management.
In contrast to other manufacturers, F&B manufacturers - especially frozen F&B producers -
cannot depend on an easily predictable level of supply or demand. Trends in consumption and ingredient availability change over time and are subject to seasonal fluctuations in the F&B industry. Variability in ingredient quality and shipping times can also impact production planning. While frozen F&B manufacturers produce a shelf-stable item, so long as the finished product remains frozen, the ingredients used in production are still subject to degradation and potential damage.
To overcome these challenges and meet fluctuating demand, frozen F&B manufacturers must be able to scale production up or down as indicated by data-driven insights. Agile scaling of production enables F&B companies to meet demand when it rapidly fluctuates while reducing the risk of revenue lost through food waste and expired products.
Successfully executing advanced inventory and logistics management requires elevating operations beyond paper documents, which are still used for inventory and production planning by many manufacturers. Paperbased approaches to inventory sourcing and production management leads to significant obstacles in the volatile supply chain reality of today: slow internal communication, uncoordinated efforts and misaligned priorities between departments (sales, order processing, customer care and plant floor operations) and a lack of visibility into realtime updates. To get through communication bottlenecks, overcome labor shortages, effectively manage third-party suppliers and enable visibility across supply chains, which leads to predictability and traceability, manufacturers must digitize their operations.
Digitizing inventory & logistics management
Smart manufacturing technology adoption, and the digitization of processes that accompanies
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a smart manufacturing approach, elevate procurement and production planning and lead to maximizing revenue generation and reducing waste. It’s simply impossible to overcome the F&B supply chain challenges of today through paper processes, which cannot provide automated tracking capabilities or integrate with critical manufacturing systems such as Enterprise Resource Planning (ERP) or Manufacturing Execution Systems (MESs).
F&B manufacturers that digitize operations can leverage the Industrial Internet of Things (IIoT) and industrial automation systems to collect and analyze supply chain information. Analyzing this information generates data-driven insights to guide strategic decision-making as well as internal and external communications with stakeholders and partners. However, if insights are to be accurate, this data must be holistic - i.e., collected from across the enterprise’s various departments and systems - which is impossible to confidently achieve with a paper-based approach.
F&B companies must compare historic customer purchasing information against relevant inventory procurement data to optimize supply chain planning. But enterprises that leverage insights derived from incomplete data run the risk of basing key business decisions on faulty information. This risk is best avoided by deploying supply chain planning software, which aggregates end-to-end enterprise data into a single source of truth for analysis. Advanced analytics capabilities offered by supply chain planning software automate the generation of actionable insights based on historical data and help F&B manufacturers easily identify optimal strategies to circumvent logistics challenges. Further, the automation of data analysis and insight generation reduces the strain on human workers and frees up time to solve other challenges throughout the enterprise that cannot be solved by advanced data analytics.
Predictability is the core benefit of a smart manufacturing approach to supply chain planning. Increasing predictability of outcomes by analyzing historic procurement, shipping, purchasing and production data, enables decision-makers to visualize supply chain timelines and ingredient availability more accurately than would ever be possible with a paper-based approach.
Inventory & logistics management optimization benefits all stakeholders
Supply chains are essentially a giant collaborative project. Multiple stakeholders work together to construct and manage a supply chain from beginning to end. Partners, suppliers, distributors, freight companies and raw ingredient suppliers can all gain increased predictability, reduced waste and optimal revenue-generating strategies based on insights provided by the digitization of supply chain planning. Suppliers can receive accurate orders farther in advance, logistics providers can better plan shipping operations due to more accurate estimates of reserved freight capacity, and manufacturers can feel more confident in their partners’ ability to meet demands. These benefits will be key to ensuring business continuity when frozen F&B manufacturers must overcome the next challenge - whatever that may be. ■
For a list of the sources used in this article, please contact the editor.
Jim Bresler www.plex.com
Jim Bresler is Director of Product Management, Food & Beverage, Plex. Plex Systems, Inc., a Rockwell Automation Company, is a leader in cloud-delivered smart manufacturing solutions, empowering the world’s manufacturers to make awesome products. Its platform gives manufacturers the ability to connect, automate, track, and analyze every aspect of their business to drive transformation.
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REMAIN VIGILANT
Developments in food allergen labelling and what to expect in 2023
Global efforts are constantly underway to evolve and harmonize product labelling in a bid to improve the safety of consumers with food allergies – a group estimated to equate to between 1.1 percent and 10.8 percent of the population worldwide. But with new changes comes additional pressures on businesses to adapt their labelling, ingredients, and product information. Experts at the product information people, Ashbury, explain that due to the current pace at which the regulatory market is evolving, food allergen labelling is resulting in many cases of costly product revisions, product recalls, reformulations, and redesigns for those businesses failing to keep up.
Joanna
Becker-Hawkins, Senior
allergen labelling in 2023, how these changes vary around the world, and how businesses can best prepare to ensure they remain compliant.
“Food labelling provides information to individuals about the products they buy and consume. As anyone with a food allergy will know, it’s crucial that what’s on the label is accurate – even trace amounts of an allergen can lead to serious reactions, including anaphylaxis.
“And yes, using an EpiPen can counteract an allergic reaction after it’s occurred, but it’s certainly not an appropriate or long-term preventative solution for food allergy sufferers.
Regulatory Advisor
at Ashbury, explores what changes we can expect for
“Instead, the best way that the industry can protect and support consumers with allergens is to remove the ingredient from the production and supply chain process altogether – which is why solid data and allergen management
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processes are crucial. Or, where complete removal isn’t possible, ensure the potential risk is clearly communicated.
“Whilst in theory, this sounds simple and easy to implement, it’s in fact a challenging task for brands and retailers to achieve, as we’ve seen in recent high-profile cases.”
What’s the current UK legislation?
All ingredients contained in an item should be listed on a food label in a clear and concise ingredients list, with allergens being highlighted – in most cases they’re listed in bold and accompanied with a statement: ‘For allergens, see ingredients in bold.’
The 14 mandatory allergens in the UK are: milk, mustard, celery, sesame seeds, cereals containing gluten, crustaceans, fish, lupin, mollusks,
peanuts, soybeans, sulphur dioxide acid (at concentration of more than ten parts per million), sulphates and tree nuts. But these differ worldwide - the US has nine, Australia ten and Canada 11.
How is allergen management handled worldwide?
Allergens differ around the world. Vulnerabilities to allergens vary depending on each population, and can be affected by factors such as diet, culture, history of food consumption and the environment.
But globally, the management of allergens is comparable, as a regulatory approach has been established by the World Health Organization (WHO) through Codex, which outlines that each country must manage food allergies within a local context.
Nationally, or even on a smaller local scale, foods that are considered
Allergen Labelling 31 foodchainmagazine.com
problematic must be established and their presence clearly communicated to consumers. Plus, each country is continually working to understand and determine acceptable threshold levels.
For brands and manufacturers, it’s essential that they entirely understand their product and extensively research the market in the country they’re trading within. With this knowledge, what must be included on the label (or alternative means of providing such information, which also varies by country) will be understood, and must be upheld.
What changes are currently taking place?
In a report issued by the NHS in September, it found that allergy and anaphylaxis hospital admissions have increased by 15.6 percent in the past 12 months for adults aged 19 and over. Therefore, it’s unsurprising that much is being done globally to change and evolve the allergen labelling industry. But these changes aren’t harmonized, and do vary worldwide.
For example, changes in the US were implemented from January 1st 2023. The Food and Drug Administration (FDA) introduced a regulatory requirement for packaging labels to detail foods that contain sesame as an ingredient. However, following this statement, some restaurant chains were found to purposefully add sesame to foods that didn’t previously contain it, possibly in order to bypass some of the cross-contamination risk management processes.
What are allergen threshold levels?
Back in 2015, the Australian VITAL programme began researching crosscontamination risk, with a mission to establish levels of allergenic food in small enough quantities to prevent triggering an allergic reaction. Since then, this has been further developed and refined by WHO, and when these levels are exceeded, a warning message must be printed on a product label. But these threshold levels aren’t yet universally agreed. And only levels for Gluten and Sulphur Dioxide are recognized to date. Due to this, it’s likely that we will see further advancements within this arena over the coming months and years.
What challenges are being faced regarding allergen labelling?
The introduction of certain legislation can be problematic. For example, it’s been argued that ‘may contain’ warnings or Precautionary Allergen Labelling (PAL) could be used by manufacturers where not needed, with the view that it’s easier to state this than to ensure the appropriate controls are in place to remain compliant. But, when used loosely in this manner, the number of foods available to affected consumers drastically reduces, and can create confusion with regards to the genuine risk of a product.
Plus, the wording used for PAL is under review worldwide, due to its lack of standardization across the board. It’s been suggested that ‘product is not suitable for X allergy sufferers’ would be more
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“ The food industry is rapidly evolving, especially with regards to the declaration and labelling of allergens “ “
suitable, than the current ‘may contain X’ or ‘produced in a factory where X is used’, but this is yet to be determined.
Novel foods, and up-and-coming sectors such as plant-based or alternative proteins, can also be considered challenging regarding allergen labelling. Currently, when a novel food is assessed by UK or EU authorities, its allergenicity and likelihood of causing an allergic reaction in the said population is reviewed and scientific evidence researched.
As of 31st December 2022, all insect foods in the UK are required to undergo a novel foods application through the authorities – a process that could see a huge increase in insect-based ingredients being used. However, several scientific opinions and studies have been unable to conclude the allergenicity of such ingredients, with some insects being cited to have caused allergic reactions in shellfish or crustacean allergy sufferers. As novel foods are increasingly used in products and are becoming more common within the UK market, these will need appropriate monitoring.
What other influences are impacting product labels?
Oftentimes, legislation is influenced by errors reported within the industry. Take, for example, the recent inquest into Celia Marsh, following her death after consuming a wrap from sandwich chain, Pret-A-Manger, which contained undisclosed dairy that she was allergic to. This concluded in a proposed testing regime to prevent risks of cross-contamination.
Testing, although part of a reasonable and robust process, can also pose further issues, as it’s highly dependent on the overall checks and balances in place, as well as being reliant on the remainder of the supply chain also meeting regulation.
Many consumers are having an increasing and conscious awareness of the Environmental, Social and Governance (ESG) of products, which impacts their purchasing habits. Disclosing this information is voluntary, but they are insights that consumers are regularly seeking – especially for allergy and asthma sufferers who might buy products based on how ‘healthy’ they appear to be. In the US, the Allergy Standards Limited (ASL) promises to make the indoor environment a healthier space for these consumers.
The food industry is rapidly evolving, especially with regards to the declaration and labelling of allergens. There are many suggested changes that are likely to be reviewed and enforced over the coming months, and many more obstacles that need to be addressed and overcome. Brands, retailers and manufacturers need to be vigilant to ensure they remain compliant regardless of the changes that are brought into effect. ■
For a list of the sources used in this article, please contact the editor.
Joanna Becker-Hawkins www.ashbury.global
Launched in 2011, Ashbury is a UK leading consultancy service provider, helping businesses navigate the complex world of product information regulations for food and non-food products. Its expert regulatory team guides clients from a place of uncertainty to complete reassurance, helping them to understand, apply, and comply with domestic and international regulations, and empowering them to help their customers make safe and informed choices.
Download Ashbury’s Behind the Label: Protecting Allergic Consumers guide: https://mailchi.mp/ ashbury.global/protecting-allergic-consumers.
Allergen Labelling 33 foodchainmagazine.com
Set the mood
What the color of your restaurant means
As a restaurant owner you’ll no doubt have put a serious amount of time, energy, and money into the interior design of your establishment. But what does the color of your restaurant mean? And, more importantly, how does it make your customers feel?
Color psychology is the study of how colors can affect people, and the different subconscious associations we have with each shade and tone. So, hospitality and catering suppliers Alliance Online have looked into color psychology to determine what the color of your restaurant may be telling your patrons about your business.
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Red
Red is perhaps the most stimulating color you could choose to decorate your restaurant with. It is very eye-catching, and it is often associated with physical energy and alertness — which is probably why it is so often used in fast food and takeaway branding. However, there are romantic connotations to the color red, too, which make it the ideal option for cozy dining rooms, and it is also the color most associated with stimulating appetite. So, in many ways, it is the perfect choice for restaurants!
The downside to using red in your interior design is that too much of it can sometimes lead to subconscious feelings of aggression, so it’s best used as an accent color rather than your primary shade.
Orange
Orange is a color that is said to encourage teamwork and openness, so if you’re looking to create an atmosphere of friendliness among your staff and customers, this is the right color for you. It’s best used in tapas or small plates restaurants, or simply those with a more laid-back feel. Warm and joyful, it can invoke feelings of sociability and encourage
conversations in your restaurant, so it’s more suited to a room with dining tables than fast-food counters.
However, as orange contains the color red, it could similarly be perceived as overwhelming to some people if overused.
Yellow
Yellow is said to stimulate serotonin (the ‘happy’ hormone) in our brains, so it’s a great color for fun restaurants such as burger bars or family-style eateries. Use yellow wherever you want to promote cheeriness and laughter — if you specialize in fine dining, you can opt for a pale yellow to provide an upbeat atmosphere while keeping your design sophisticated.
As with red, there is a downside to doubling down on yellow décor. Studies have shown that too much yellow could have almost the opposite of the desired effect, including hyperactivity and becoming overly emotional. So, you might want to consider a yellow feature wall rather than painting all the walls of your restaurant, or to try decorating with yellow accents.
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Green
Green is a color of harmony, neutrality, and balance, so it’s always been considered a safe option to decorate a restaurant with. However, more recently, it has even more potential to be beneficial for your business. Healthy eating, veganism, and sustainability are more on trend now than they have ever been, so if your restaurant ticks any of those boxes, it makes sense to advertise that to potential customers with a green color scheme. Another great thing about green is that there are so many shades to choose from, from bold
emerald to pale mint, olive, and seafoam — though it’s best to stay away from ‘sickly’ yellow greens that might remind people of illness. Plants, living walls, and herb gardens are a particularly safe way to bring green into your establishment, especially for vegan or eco-friendly restaurants.
Blue
Blue is an extremely popular color in interior design as it promotes rest and calm, making you feel safe and even sleepy in the right circumstances. As a result, restaurants tend to shy away from it and choose more upbeat, stimulating
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colors instead. This is probably for the best, as it has also shown potential to be an appetite suppressant.
That’s not to say that blue should never find its way into restaurant décor, however. If you want to create the kind of establishment where people go to unwind and relax, it can help relieve their stress and evoke feelings of trust — perfect for encouraging repeat custom.
A bright, fresh blue can also remind people of being on holiday as it is reminiscent of the sea and clear, sunny skies, so if you’ve chosen blue for your restaurant, you shouldn’t necessarily reconsider you decision.
Consistent branding
“It’s interesting to know that you can use color schemes to influence the way people perceive and respond
to your hospitality business. When decorating, think about the USP of your restaurant and the mood you want to create, then choose colors that reflect those,” said Rachael Kiss, Marketing & Online Manager at Alliance Online.
“Your brand colors should be a jumping off point to ensure consistent branding — but remember that each color can also have a negative association when overused. Bold colors, such as red, may be better off incorporated as accent colors.
“Opportunities to include accent colors include feature walls, artwork, and furniture, but also your crockery, cutlery, and napkins can be used to provoke the mood you want to.” ■
www.allianceonline.co.uk
Alliance Online specialises in catering and kitchen equipment selling both to trade professionals and the public.
Founded in 1999, Alliance Online works with a vast range of suppliers to deliver high quality equipment to professionals in the hospitality industry and to those at home. Alliance Online has a dedicated fleet working across the country to ensure quick and efficient delivery options.
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...you can use color schemes to influence the way people perceive and respond to your hospitality business
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Vital links
Organizations worldwide are facing increasing regulatory pressure to provide greater traceability of their products. This pressure is two-fold, stemming from the need to protect consumer health and safety, and develop more transparent, future-proof supply chains.
These drivers for change could be viewed as a necessary evil – a stick enforcing the adoption of new solutions and processes to provide additional data – however, this is not necessarily the case.
As Lee Metters, Group Business Development Director, Domino Printing Sciences, explains, traceability and transparency require little more than a humble, serialized code – the vital link that joins a product to its online data, provenance, and history. Moreover, organizations can use the data afforded by serialization to achieve much more than compliance.
Spotlight on security
The last decade has seen a marked increase in the number of governments and regulators requiring a greater and more stringent exchange of data to protect patient and consumer safety. Often this is achieved via 2D codes and serialization – assigning an individualized or variable code to items so that they can be uniquely identified, tracked, and traced throughout their lifetime. Regulatory serialization requirements* have been restricted to pharmaceuticals, medical devices, and tobacco until recently. However, as global demand for more transparency within supply chains increases, we see the requirement expand into other industries, particularly food and beverage. For example, Russia’s Chestny ZNAK track and trace system was inaugurated in 2017 for prescription and OTC medicines and has since been expanded to include
The variable data behind sustainable food supply chains
Sustainability 39 foodchainmagazine.com
bottled water and milk. In addition, it is anticipated that the next update of the FDA’s Food Safety Modernization Act will require the serialization of certain food and beverage products in the US.
Supply chain opportunity
Typically, compliance obligations come at a cost to brands, with little commercial gain. While the prospect of new regulatory serialization requirements might, therefore, seem daunting, the reality is that the serialization of products can provide significant benefits to brands. For instance, enabling visibility on how products move through supply chains. As the pharma industry has found, the end-to-end traceability of products via scannable, serialized 2D codes can present an opportunity for brands to run their supply chains more efficiently and drive out potential causes of waste. These same benefits apply to the food and beverage industry, and with the spotlight on global food waste reduction, arguably, the opportunity for change has never been more significant.
Variable code scanning at each step in the supply chain – from the initial raw material supply all the way through to retail sales data – can allow supply chain partners to access information on the provenance and journey of each product. This increased visibility can provide opportunities to identify issues and sources of waste at each step of a product’s journey, providing the insights needed to run supply chains more efficiently.
Sharing data across supply chains can also provide insight into supply and demand levels in different regions, presenting an opportunity for manufacturers to produce in a way that matches downstream and upstream needs. The benefits of improved supply chain efficiency help reduce waste and drive out inefficiencies and enable brands to offer a greater variety of fresh food products, with increased shelf life, to their consumers.
The push for transparency
The benefits of this kind of deep, granular supply chain data extend far beyond the brand level – as it is now widely recognized that more transparency in food supply is key to sustainable growth and development.
Indeed, amongst the 17 UN Sustainable Development Goals is a focus on ensuring sustainable consumption and production patterns (UNSDG 12), with a commitment to halve, per capita, global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including postharvest losses, by 2030.
In the UK, the National Food Strategy – an independent report for government – has recommended creating a National Food System Data programme to collect and share data to improve the nation’s health, wellbeing, and the environment. It advocates that the programme should include data from beyond the farm gate: “on food production, distribution
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The first and simplest step towards greater supply chain efficiency is through the adoption of variable 2D codes to facilitate data exchange
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and retail, and the environmental and health impacts of that food.”
Similarly, other governments are looking at solutions to provide an audit trail of data on the supply chain of food products.
In 2020, the US Department of Agriculture proposed implementing blockchain technology to trace the supply of organic food products. The Food and Drug Administration of the Chinese Chongqing Yuzhong District has tested blockchain in facilitating traceability and quality assurance in food and drug supply chains. Indeed, China is one of the world’s most rapid adopters of blockchain solutions, with the central government expected to release a national blockchain standard later this year.
In addition, organizations such as TagOne, WholeChain, and IBM also offer blockchain-enabled solutions for the food and beverage industry to improve traceability, with the underlying goals of reducing food waste – improving food freshness and safety – and increasing sustainability and supply chain efficiency.
Is blockchain the answer?
For many businesses, the concept and understanding of blockchain remain vague. Yet every food and drink manufacturer will be familiar with variable data labels and serialized codes – the underlying product codes that provide traceability, and transparency, by linking physical products to the online world.
The first and simplest step towards greater supply chain efficiency is through the adoption of variable 2D codes to facilitate data exchange. Unique to each product, serialized codes will provide the greatest level of data, but even batch-level identifiers can provide a certain degree of transparency.
An additional step is to have a background system that collects data
at each stage of the supply chain and stores the information to be instantly accessible. A blockchain-enabled system could then provide additional, immutable assurance that the information is correct.
The variable 2D code is the vital link that joins a physical product to all its online data at each step.
Conclusion
Through regulation, corporate ESG initiatives, and consumer demand, the world is on a journey to provide better identification and faster sharing of data which can have significant benefits in supply chain efficiency. Some organizations can help provide the back end too i.e., blockchain-enabled solutions or supply chain systems. For these solutions to work, a link to the physical product is required, which means manufacturers need to ensure their systems are equipped to provide that link.
The good news is that embracing serialization does not need to be challenging. The underlying variable data coding technology is already in place to provide traceability and authentication – to provide the missing link between manufacturers’ physical products and the online world and enable genuinely sustainable food supply chains. ■
For a list of the sources used in this article, please contact the editor.
*Regulations include the EU Falsified Medicines Directive, first adopted in 2011, which introduced harmonized measures to ensure that medicines in the European Union (EU) are safe and that trade in medicines is properly controlled; the US federal Drug Supply Chain Security Act (DSCSA) enacted in 2013 for the identification and traceability of certain prescription drugs; and China’s National Drug Administration’s (CNDA) new serialization guidelines for pharmaceuticals.
www.domino-printing.com
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PREVENTING FOOD LOSS
The need to prioritize food safety and effective decontamination practices throughout the food life cycle
By Larry Clarke
Waste not, want not. That axiom couldn’t be farther from the truth when it comes to our love affair with food. Did you realize that 40 percent of all food is thrown away in the USA? Did you know that more than one-tenth of American households were deemed ‘food insecure’ before the pandemic even hit? What are the causes behind this problem, and what are the solutions?
Educating the masses is one important place to start. Consider the widespread disposal and disregard of ‘ugly’ food by the buying public. Teaching consumers
about imperfect food shapes and expiration dates is a major step toward the reduction of food waste. Imperfect foods have become a focus of innovative startups by bringing them to market with campaigns that support consumption. And expiration dates can also be extended in the FFV (fresh fruit and vegetable) markets by decontamination processes. The processes themselves are under question due to the residuals left on the FFV during the process, but the standardization of FFV has improved with better seed technology, therefore improving the processing capabilities and efficacies.
Waste 43 foodchainmagazine.com
Beyond that, a continued improvement in supply chain management and cold storage traceability and tracking is crucial for saving perfectly good food from ending up in landfills. The tighter the supply chain and the better the tracking capability, the higher the likelihood that fresh produce will make it to the grocery store with the consistency
and confidence that consumers are requiring. The same goes for food processors, who see consistency
and product quality as part of their requirements for suppliers.
So fresh and so clean
Prioritizing food safety and effective decontamination practices early in the food life cycle can be incredibly impactful in limiting food waste. The farmer community carries the burden of having to harvest when the produce is ready and when the weather is willing. This does not always match with the requirements of food processors or distributors. Any misalignments create waste. This is the area of focus for the vertical farming industry, which can match the readiness of the crop and harvest much more closely to the consumer demand.
Early decontamination creates a positive virtue cycle. Clean products create less contamination in the processing and handling
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Much of this waste occurs once products are harvested and introduced to the world of bumps, bruising, and contamination... 44
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equipment across the supply chain. Also, cleaner products are less likely to have detrimental microbial impact in the given time to market from harvest to consumer. The longer that molds, fungi, and pathogens remain on the product, the greater the foothold they take and the larger the negative impact they have on the product’s value (in both appearance and nutrition).
To be sure, the impact of clean (or decontaminated) processing and handling facilities cannot be overstated. Not to place it on an equivalency, but it is the same reason that hospitals must work tirelessly to combat bacteria. If a negative microbial contamination is found, it will likely be spread by the general nature of the handling and, like the produce being shipped, the microbial will be spread with each load that moves around the country.
Providing an oasis
In wealthy countries — and, more specifically, wealthy ZIP codes — food insecurity is not much of an issue. We can afford the higher-margin items, which promotes a higher likelihood that markets can have higher returns on investment. These higher margins tend to offset the losses of products (food waste) that are simply seen as a cost of doing business. If we can systematically reduce the losses that occur in the supply chain to the market, we can also look for ways to reduce the losses that occur at the market and once the product has been taken home for consumption.
The general rule of thumb is that about one-third of food is destined to be ‘wasted.’ Much of this waste occurs once products are harvested and introduced to the world of bumps, bruising, and contamination in the normal handling to get the product to market. Over time, this natural decline in wholesomeness
is inevitable, but a sustained focus can delay the process; that is what ‘shelf-life extension’ is all about.
If we can add further steps to the tracking and tracing of food that has become so valuable in the improvement of food waste reduction, we can make strides. The focus should now be about a curative impact on the problem, not just identifying the contaminated product. We have seen new technologies coming forth working on the dehydrating reality of post-harvest FFV, but not as much on the reduction of molds, fungi, and pathogens. Done at an early stage in the supply chain, and maybe yet again as it gets closer to the consumer, decontamination of food has been shown to reduce waste and improve the safety aspects of the product.
As we see food deserts continue to be an issue in low-income neighborhoods (as well as low-income countries), any improvement in the shelf life — and therefore improvement in supply chain margins — will help provide more food for those going without. It only stands to reason that less waste equals more food for consumption. Waste not, want not. ■
For a list of the sources used in this article, please contact the editor.
Nanoguard Technologies www.nanoguardtechnologies.com
Larry Clarke is the CEO of NanoGuard Technologies, a company that prevents food and feed waste and improves food safety by eradicating harmful pathogens and mycotoxins through its Airilization technology. He brings more than 30 years of experience in agribusiness, including global business management, trading, and international assignments. Larry graduated with an agriculture degree and a business degree from Mississippi State University, as well as the Advanced Management Program at Harvard Business School.
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Botanical fanatical
Ingredients for label-conscious consumers
By Alessio Tagliaferri
Interest in botanicals is growing, for both their intriguing flavor profiles and consumer-associated functional attributes. In fact, 71 percent of consumers state that they are aware of at least one botanical, and the global market for plant extracts is anticipated to grow with a CAGR of six percent between 2021-2026. Botanicals with the most recognition include green tea, aloe vera, lavender, ginger, peppermint and cinnamon. Additionally, consumers are taking a more proactive approach
to their well-being, with many seeking out foods and beverages that contain ingredients with multifaceted attributes to meet their individual health and wellness goals. Beyond their associated health halos, botanicals are in demand as a source of exciting taste experiences with added appeal as ‘kitchen level’ ingredients derived from natural sources. Whether in dietary supplements or functional foods and beverages, botanical ingredients have great potential to attract and hold consumer attention.
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Functional
Holistic health and wellness
Foods and beverages with certain botanical ingredients may have consumer associations with better-foryou characteristics, such as immune function, sleep, digestive health, stress relief and emotional well-being. These are important areas for many consumers, especially as people associate food choices with their physical and emotional well-being. In addition to the more familiar herbs and spices, several botanicals are emerging as champions for holistic well-being.
Lemon balm is widely associated by consumers with relaxation, rest and recovery and combines beautifully with fruity flavors like finger lime and mango, as well as refreshing mint. Lemon balm works well in teas, biscuits and lemonades.
Flavor impact
New flavor experiences are a driving factor in the growing popularity of botanicals in foods and beverages. Many botanicals deliver unique flavor notes that may help consumers satisfy a desire to experience new taste profiles as a form of adventurous exploration. Research shows 43 percent of consumers believe botanical ingredients are tasty, and they don’t feel they have to sacrifice flavor for nutrition.
For instance, guarana, green coffee and yerba mate all contain caffeine and are linked by consumers to reduced fatigue and improved mental focus. These ingredients pair well with energy drinks, snacks and supplements.
Blending acerola and camucamu can provide a source of vitamin C, which is often recognized by consumers to support immune function. Consumers may also associate acerola extract with support for energy, metabolism and exercise performance. Acerola can be added to functional juices, gummy confections and more.
What’s more, botanicals can bring a complex combination of flavors to categories including dietary supplements, snacks, confectionery, bakery and beverages. The beverage category is particularly ripe for opportunity for developers to leverage botanical ingredients, with consumers showing curiosity for new and inventive flavor profiles. Cocktails and mocktails are a popular space to experiment with intriguing botanical flavors, such as a gin fizz spotlighting juniper’s piney and fruity notes with citrus and a hint of pepper. Nutty maca tea finds balance with floral cardamom and spicy ginger. Ready-to-drink (RTD) coffees also lend themselves well to botanical flavors, from purple ube lattes to ‘cinnamint’ cold brew.
Flavor is also critical for an enticing sensory experience, and it plays a role in consumers’ emotional engagement with a product. As people feel more
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Today’s conscientious consumers frequently scrutinize packaging for ingredients that they consider natural for authentic taste, appearance and benefits
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connected to their purchases through flavors, many are also more motivated to share with their networks through social media, creating an even larger buzz around trending botanical ingredients and flavors.
Clean and green
Today’s conscientious consumers frequently scrutinize packaging for ingredients that they consider natural for authentic taste, appearance and benefits. Many shoppers associate botanical ingredients with qualities like sustainable, natural, better-for-me and trustworthy. Label-conscious consumers are paying particularly close attention to ingredients associated with ‘close-to-nature’ attributes and sustainability, especially as they increasingly tend to shop based on their values. For example, consumers say that simple, recognizable ingredients impact their purchasing decisions. On top of that, shoppers are seeking options that can benefit themselves, their communities and the planet.
Functional Ingredients
Botanicals are multi-faceted ingredients that can help meet consumers’ evolving needs, including associations with wellness attributes, exciting flavor profiles and clean label cues. Brands that work with a global partner to craft the right combination of botanicals, functional ingredients and flavors will find success and meet the market demands of today and tomorrow. ■
For a list of the sources used in this article, please contact the editor.
Alessio Tagliaferri is Global Business Director, Natural Health & Nutrition and Botanicals Technology Platform, ADM. ADM unlocks the power of nature to enrich the quality of life. As a premier global human and animal nutrition company, ADM delivers solutions today with an eye to the future. From the seed of the idea to the outcome of the solution, ADM gives customers an edge in solving the nutritional and sustainability challenges of today and tomorrow.
ADM - www.adm.com
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Daring
to be
84 Hospitality tells us why it’s about more than just food
52 Cover Story
Alate-night bite. We’ve all been there. You’ve just walked out of the movie theater after getting lost in the action for two hours. But you haven’t eaten – and most of the restaurants nearby are closed.
Or you’ve just got back into town on the last train home. You’re dying for a slice. It doesn’t matter if it’s ten o’clock. You need that slice.
Alternatively, you might have had a drink. Maybe a frozen margarita (or three). Just enough to whet your appetite. What’s open? Shucks.
It’s an all too familiar feeling for Rachel Cope, Founder & CEO at 84 Hospitality, an Oklahomabased restaurant group known for Rev Mex, Empire Slice House, Goro Ramen, and Burger Punk.
“When we opened our first restaurant in 2013, we decided to focus on late-night dining,” she recalls. “Until then, it just wasn’t really an option in Oklahoma City. Those in hospitality –such as myself and other bar tenders, servers, and managers – sometimes won’t get off work until eleven o’clock in the evening, and it was always
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pretty frustrating not to be able to go and sit down with your friends and colleagues, decompress, and have a meal somewhere that wasn’t a generic fast-food joint.”
The name 84 Hospitality is derived from Rachel’s birth year: 1984. Far from the dystopia that Orwell envisioned, for Rachel the date signifies a robust kind of youthfulness and innovative spirit. Most of the team, she points out, share the same birth year (or are otherwise not too far off).
Oklahoma outlier
We can see that youthfulness in the group’s approach: identify a gap in the market (a late-night spot for people to converge and eat) and take it (hence the first restaurant opening). Wake up, Oklahoma City, 84 Hospitality seems to suggest, there’s a new kid on the block – and they’re hungry for more.
“With that first location, our hours of operation extended all the way until 2am – every night of the week,” Rachel goes on. “We were serving slices of pizza to the end, and I think that helped to set an alternative tone: we were building another way to do things in this industry. It has given us a really great reputation in town; we are seen as allies of servers and bartenders because, at the end of the day, we are them or we have at least been them.
“That community-driven spirit sets us apart,” she continues. “Being constantly involved with people, whether that means being a headline sponsor for Gay Pride, which we have been recently, means we can put ourselves out there and support causes that people tend to shy away from in our state. We are not afraid.”
Progressivism is built into the fabric of the group. Rachel takes us through her
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thinking: “Growing up, I never wanted to be the best girl on the team – I wanted to be the best player, whether others on it were girls or boys,” she remembers. “I translated that philosophy into 84 Hospitality: I never want to be seen as a female restaurateur. Why can’t I just be simply a restaurant owner?”
As our conversation demonstrates, for Rachel the food business isn’t just about food. There’s much more going on. Quite evidently, though, there is a necessary balancing act to navigate.
Charity support
With sponsorship of events like Pride, 84 Hospitality is signaling that political awareness and visibility is essential. However, Rachel points out that solely focusing on difference quickly becomes an act of othering.
“There are so many conversations going on all around the world about race, gender, and sexual identity – and that’s good,” she says. “Undoubtedly, education is the way forward; it’s so important to be in constant conversation.
“As a company, we continue to educate ourselves and support the education of others,” asserts Rachel. “In fact, and I’m not sure how many people know this, Oklahoma ranks near the bottom of the US in terms of our education system. Therefore, to me, that is our way forward – both as a state and then, in turn, as a nation.”
And 84 Hospitality is proud to put its money where its proverbial mouth is. In 2018, for instance, the group donated free meals to teachers during a period of strike action lasting two weeks. But it didn’t stop there.
Following the strike, 84 Hospitality decided to implement a permanent 25 percent discount for all teachers working at any level within Oklahoma. As Rachel explains: “Any teacher, or retired teacher,
as well as those benefitting the LGBTQ+ community. By putting itself out there – and by supporting progressive causes – Rachel admits that some view 84 Hospitality as an outlier in an otherwise traditionalist state.
“I like the term,” she counters. “I like to be different; it’s what makes us unique. We aren’t the only ones in the state doing this, but it is our mission to communicate that uniqueness and creativity to our customers. It’s part of who we are. I don’t think I’d be happy doing it any other way.” ■
www.84hospitality.com
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▲ Rachel Cope, Founder & CEO at 84 Hospitality
POULTRY, IN SERIOUS MOTION
There is a long-standing debate surrounding the secret to perfect fried chicken. Is it the crispy texture of the skin, or the spice blend it’s seasoned with? Or perhaps the ideal cooking time and temperature, to ensure the tender flesh maintains just the right amount of juiciness? Whether it’s just a preference or your profession, all fried-chicken eaters have an opinion. However, when it comes to the secrets of operating a hugely successful fried chicken business, we have a pretty good idea of who has the final say.
Dan Shapiro, CEO, details how Krispy Krunchy is taking the fried chicken market by storm
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Krispy Krunchy
Neal Onebane lived in southwest Louisiana, locally known as Cajun country, and this is where he founded Krispy Krunchy. The birth of the company came when Neal started to experiment with the base spice blend coating the fried chicken he had started to sell across his eight convenience stores, back in 1989. He developed the branding inhouse and was soon selling his chicken to other outlets, all along South Louisiana. Unfortunately, Hurricane Katrina swept through in late 2005 and almost decimated the business. The following year, Dan Shapiro, CEO, joined the company.
“I started out as a third shift cashier in a convenience store, and have spent my whole life working in the industry,” Dan opens. “I actually had Krispy Krunchy in some of my locations that I brought up to Kansas and Missouri in 2002, and wanted to get on board because I’ve always thought Krispy Krunchy offers such a great product. As a
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The KOCH FOODS family congratulates Krispy Krunchy on their success and want to say thank you for letting us be a part of it.
www.KochFoods.com
In 2016, the business received a surprise endorsement from celebrity chef Dale Talde, in an interview with the Wall Street Journal. Talde listed the Krispy Krunchy outlet in his local bodega as the best fried chicken place in New York, which prompted Thrillist to put together a larger profile titled: You probably haven’t heard of America’s best fried chicken chain.
“We were blown away!” Dan exclaims. “We don’t do advertising, because we’re in
convenience stores, so our model is based on the principle of location. We simply make our products available in places that consumers already visit for other reasons and brand them professionally in a quick-servicerestaurant style. Whenever I travel across the country, I always wear my Krispy Krunchy shirt, and what I’ve found is that people have either never heard of us or think that we’re the absolute best, there’s no in-between.
“We are looking to broaden our horizons, placement wise, however. Our second Walmart location opened recently, so that’s one in Phoenix and now another in Florida. Otherwise, it’s just convenience stores, a number of arenas, such as the New Orleans Pelicans and the Smoothy King Center, and a couple of universities, too. Like I said, places where people already need to be.”
The company was unfortunately forced to withdraw its services from Mexico during the pandemic, on account of the supply chain issues
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that arose and the impact that Covid had on the tourism industry in Cancun, Krispy Krunchy’s largest market. The business has since shifted its complete attention onto its US-based operations, in which it currently serves all 48 contiguous states, with Texas, California and Florida hosting the most occupied convenience stores. In addition to the southeastern states of Louisiana, Alabama, Georgia and Florida, the West Coast also presents a large market for the organization, on account of the large populations in Washington, Oregon and California.
Team approach
“Right now, we are trying to figure out the best area to focus on growing,” he explains. “Our main growth is attributed to opening more stores, of which we have plans to develop a further 400 in 2023. Last year we managed 238, but I’m confident, as we’re already ordering equipment and POS for at least 200 new locations that have placed deposits.
“A big part of our culture is to treat everybody as an equal partner, so we’ve maintained some excellent relationships within our supply chain. When we first started growing, Tyson was our only chicken supplier, which also happens to be the largest in the US. So there we were, a little convenience store chicken company ordering 50 cases at a time, and Tyson would distribute them for us regardless of the complete lack of sense it made economically. The team over there saw the potential in our model and really helped us to grow. We now also rely on OK Foods and Koch for chicken, but the poultry industry has taken a hit in recent times as a result of avian flu.
“We struggled elsewhere with some of the less obvious components. For instance, we couldn’t get the right lids for the cups in which we serve our side dishes. They come from Vietnam on a container ship, but the vessel got stuck somewhere. We also had issues obtaining our usual white
logoed paper bags, so we’ve had to swap them out for a brown option. We have solid relationships with all of these suppliers, so they really did try to help us. Especially with the double-digit growth that we’ve experienced, they know that being on our team is only going to benefit them in the future.” ■
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www.krispykrunchy.com Krispy
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FLAVOR AND FUEL
Offering a diverse line of paleo, keto-friendly and gluten-free certified products, Kevin’s Natural Foods (Kevin’s) has made it its mission to help customers eat clean, delicious foods that can be prepared in minutes. This wide-ranging line of recipes and products, utilizing restaurant-quality ingredients is available at an accessible price point both online and in-store at over 17,000 coveted retail locations, including Whole Foods, Target and Costco. Within just three years of launching, the brand has already helped millions of Americans change their perspective on healthy eating, by making healthy diet choices accessible to all.
As an increasing awareness builds for the importance of a healthy diet, Kevin’s Natural Foods is striving to make the clean eating lifestyle accessible to all
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Lone Cypress Logistics Inc
Lone Cypress Logistics Inc offers clients a solutionsoriented service, combined with a blended background of experience within many segments of the industry. These include transportation, logistics, produce and food, shipping and receiving, warehousing, forecasting and replenishment, and more. We understand Kevin’s Natural Food’s mission, and work closely with its talented and motivated staff to achieve the company’s goals. We aim to provide the best service for the business, its clients, and – most importantly – the consumers who count on Kevin’s to always have their high-quality products available on store shelves. Lone Cypress Logistics Inc fully stands by Kevin’s as it continues to grow the business, working to bring healthy and great tasting food to its customers.
Sharing his story on how healthy eating helped to change his life, CoFounder and Chief Operating Officer, Kevin McCray, explains how the concept behind the business was born: “I struggled for years with a severe autoimmune disorder. Going from being happy and healthy to in-and-out of the hospital, unable to find a conventional form of medicine that helped me consistently, really threw my life off balance. This was until I discovered the power of clean eating. I switched to a diet rich in whole foods and avoided refined sugars. This helped me to reclaim my energy and my health, enabling me to live my best life again.” He continues:
“Seeing the difference that a clean diet made to my life, I was inspired to help others in a similar position, and that is where the idea for the business started.”
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Meals in minutes
Today, the company has developed a wide-ranging product portfolio including sous-vide protein entrées, heat and eat sides, cauliflower-based pasta entrées and a complementary line of cooking sauces. Kevin’s avoids refined sugars and artificial ingredients whilst remaining focused on delivering flavor, offering a variety of delicious recipes inspired by cuisines from around the world. All products are made in the company production facilities in Stockton, California, utilizing a kettle-cooking operation for hot-filling sauces and potatoes alongside a robust, sous-vide operation for cooking proteins and vegetables in a hot water bath.
When it comes to product innovation, much of the inspiration for Kevin’s products has been taken from observing restaurant cooking methods, alongside the extensive chef and restaurateur experience of company co-founder Dan Costa. The process of browning sous-vide meats in a pan which is then deglazed with finishing sauces is a popular method used in restaurant
kitchens for preparing orders quickly without sacrificing flavor. These methods have inspired the format for some of Kevin’s own products, enabling customers with busy lifestyles to prepare healthy, restaurant-quality meals in minutes.
Full of flavor
The company recently launched the world’s first line of paleo-certified pasta entrées, combining cauliflower-based pasta, sous-vide meat and a signature pasta sauce packed with three servings of vegetables. This new line of products puts a healthy spin on classics such as beef stroganoff, chicken penne alla vodka and lemon garlic chicken penne, all prepared in just five minutes.
In addition to this, Kevin’s has recently announced the introduction of its ready-to-cook meat entrées for April next year, just in time for the summer. These 30oz portions contain raw, marinated chicken breast alongside a pouch of one of
Ultimately, we are all aligned and working towards the same goal: empowering people to eat clean without sacrificing flavor. Kevin’s Natural Foods foodchainmagazine.com 67
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Kevin’s signature sauces, used for marinating, dipping or simmering. These products are designed specifically for customers wanting to cook their own proteins on the BBQ, stove, or in the oven and will include flavors such as Korean BBQ, sun dried tomato pesto and Hawaiian BBQ chicken.
Sustainable solutions
Alongside providing customers with its exceptional products, the business also takes its commitment to sustainability seriously and has adopted a number of green initiatives to limit the impact of the company on the planet. For example, it has recently started rolling out new sustainable packaging, moving away from the use of plastic trays towards recycled cardboard boxes and compostable trays for its in-store entrées. Furthermore, the company has adopted new packaging for its e-commerce products, utilizing thin plastic pouches as an alternative to plastic trays and sleeves. This means that a higher quantity of product can be packed into smaller boxes for shipping. In addition to this, Kevin’s has switched to dry ice packaging as a more
environmentally friendly option for keeping online orders fresh. It is estimated that, following these initial swaps, the company will reduce its plastic use by a total of 894,548 pounds by 2023.
Humble & Hungry
Shedding light on the crucial role that people play in the company, Kevin McCray explains: “The people side of the business is the most important aspect of our company. Every day we make a conscious effort to act according to our internal motto, ‘Humble & Hungry.’ To this end, it is not rare in our company to see our leadership pouring coffee for employees, picking up trash, or parking at the end of the parking lot. We celebrate work and this motto informs many business decisions that promote a Humble & Hungry culture at Kevin’s.” He goes on to explain a key example of this: “At Kevin’s, every employee is a shareholder regardless of rank. This promotes a sense of ownership and pride in the business, above and beyond a traditional compensation model. Ultimately, we
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are all aligned and working towards the same goal: empowering people to eat clean without sacrificing flavor.”
Healthy growth
The health standards of Kevin’s products appeal to and satisfy the dietary requirements of a wide-ranging customer base, including both individuals who must adhere to a strict lifestyle diet for health reasons as well as those who are simply wanting to eat better. The market is experiencing a growing demand for specific lifestyle diets such as paleo, keto and gluten-free, as well as a general shift towards clean ingredient profiles and ingredients which avoid refined sugar, synthetic preservatives and harmful fats. As health and wellbeing continue to become an increasingly prevalent consideration for many people, these shifts in the market have helped to drive customers towards Kevin’s products,
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putting the business in a strong position to continue on a trajectory of steady growth over the next few years.
Clean eating culture
Looking towards the future of the company, Kevin’s hopes to continue expanding its product lines and culinary shortcuts, to the point where the company is helping the majority of US households to eat clean on a daily basis. In the long-term, the company hopes to see rates of diabetes, obesity, and coronary artery disease start a consistent annual decline. The business is striving to make meal planning and meal prep easier for customers from all walks of life, aspiring to make a substantial contribution to a society-wide shift towards healthier eating habits and lifestyle decisions. ■
www.kevinsnaturalfoods.com
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QUALITY ALWAYS WINS
Ken Clow, CEO, paints an exciting future for Donald Russell, coming out of a trying period for the butchery industry
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Donald Russell
Other than the geographical beauty of its highlands and lochs, Scotland is famous for taking great pride in its internationally revered food and drink offerings: whisky, seafood, and meat, to name a few. Donald Russell has been operating as a butcher and supplier of fine foods since 1974, born from a venture between a local farmer and a butcher in Aberdeenshire, who shared a dream to bring traditional Scotch produce to the export market. In the mid-1990s, the company
moved towards a mail order service, which has naturally developed into an online and mobile enterprise, with two-thirds of trade being made up of B2C sales and the other third coming from supplying the hospitality industries in the UK and elsewhere.
Royal approval
The company has held a Royal Warrant for over 30 years, on account of providing exemplary meat products to HM The Queen during her reign, supplies a number of Michelin Star restaurants and has received numerous Great Taste awards for a variety of its products. There’s a couple of key factors, besides its locale, that have helped propel Donald Russell to its presentday pedestal of butchery and fine cuisine, as Ken Clow, Chief Executive Officer, details further: “Our quality focus is really important to us, and we
We have many long, wellestablished relationships within our supply chain, some of whom we have been working with for 15 years 74
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rely on a number of avenues to maintain it. Firstly, there’s our people. We are really lucky to have some fantastic members among our team, of just over 200, who we consider to be the guardians of the quality of our butchery.
“Our longest standing employee is a guy called Bill, who joined the business in 1988. He’s part of our goods-in department, and for good reason. Bill has a gift, with which he is able to select when meat has matured to a point of absolute perfection, through touch, sight, and smell, to be passed onto our butchers to be cut and prepared for our customers. Bill is not alone; we are meticulous about our people and ensuring that they are passionate folk and fully trained to the best of their capabilities. We have a rigorous sign-off and review process for every single new product, and make sure that the utmost quality of our food is the focus of everyone, from the people who take the orders to those who pack them. It’s a team effort.
“Secondly, we rely on our sourcing,” Ken adds. “We have many long, well-established relationships within our supply chain, some
of whom we have been working with for 15 years. However, we are always eager to meet and support new innovative suppliers as well, who can come in and step up both our quality and range of offerings. Around 18 months ago we teamed up with a new pie supplier by the name of The Original Baker, who produced, among a large selection of pies, one of our sell-out vegetarian options for the festive period, a delicious sweet potato galette. We’ve also used the likes of Scotland Food and Drink to find other producers, such as Robertsons who provide us with our scampi and our fish fingers.”
Quality and service
Over the last few months Donald Russell has introduced a new range of Scotch beef and pork, in celebration of its core heritage: butchery. These new lines include traditional cuts such as sirloin steaks, along with new innovative items like its pork T-bones. In the build up to Christmas, and allowing for the current cost of living crisis,
▲ Ken Clow - Chief Executive Officer Russell foodchainmagazine.com 75
Donald
CONTACT US - T: 01244 286200
ANDYSMITH@KKFINEFOODS.COM
the business also released a five-bone, Himalayan-salt, dry aged rib of beef for £150. “We sold out of the first buy of the five-bone rib so quickly that we had to produce a second batch in time for Christmas. It shows that even in the current squeeze that everybody is feeling from the economy, people are more focused on quality than ever before, trading up to high ticket, premium items, meaning we need to ensure these represent good value for money.
“Unfortunately, this year has been incredibly tough. What with the extreme inflation across labor, raw materials, packaging, energy, fuel, and transport, some of our bills have more than quadrupled with little notice. We hope that we’re through the worst of it now; the short-term relief from the government has been crucial, but we’re keen to see how it continues to unfold in 2023. The business will post a loss this year, but
KK Fine Foods is a passionate, fast-moving food business built on family values and integrity with a forward-thinking corporate focus
Established in 1987 in the kitchen of our founder Leyla Edwards, KK now employs over 400 people. KK has grown to become a market-leading, awardwinning manufacturer of high-quality protein and vegetarian meal solutions in both foodservice and retail sectors.
For 35 years, KK’s passion for high quality, continuous innovation and drive to determine future trends has been at the heart of our business. Our highly experienced team of development chefs are committed to creating bespoke menu solutions. KK Fine Foods aims to inspire through food; taking our customers on a journey through research, innovation, taste and superior quality. Most recently, they won six awards at the British Frozen Food Federation Awards 2022, including Foodservice Product of the Year and two Gold Awards.
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we’re unfazed, and our customers can restassured that we will continue to focus on providing the excellent service we’re known for – it’s all part of our company values.
“Integrity is a key component to how we operate, and we are constantly striving to ensure that everyone in our team, and even our customer-base, is aware of what it means to Donald Russell,” Ken continues. “In our ongoing cultural turnaround, we are working to empower our people to make their own decisions, as that’s what really motivates them, and induces pride within a workplace, and ultimately greater retention. We spend a lot of time listening to our colleagues through one-to-ones, forums and listening groups, to understand what they see to be good and bad about the business. Through this, we have constructed a framework for everyone to follow, which details their responsibilities and the part they specifically play in bringing the company culture to life.”
Strong supplier relationships
Throughout 2022, Donald Russell has consolidated its four locations back down to its pre-covid level of three, by integrating its contact center back into the butchery –but that’s just the beginning. Next year the company is set to upgrade its production and warehouse management systems in line with its strategy to be a simpler and more digitized organization, as well as renovating its website. In terms of tangible changes, the business is going to be rolling out a new form of environmentally friendly packaging, as Ken concludes.
“At present, our products are sent out to customers in poly-boxes that are not curbside recyclable, which means we’re posing them with a problem. This is our priority in the new year, as it’s the right thing for not only our customers, but the planet too. We are also going to be looking into greater premiumization, to give our
loyal client base the perfect reason to part with their hard-earned money, which means we’re looking at some exciting work, going forwards, within our supply chain.
“Darren Blackhurst was one of the greatest commercial minds that I ever worked for, and he had a phrase that went: ‘Without your suppliers, any retailer is dead.’ This still rings true to this day, no matter what size enterprise you’re managing. We rely on our supply relationships enormously, as having the right suppliers is the greatest tool in turning a business from loss to profit. They are the experts who guide us to success, and to whom we owe a lot, as after all, quality always wins, and they’re the ones who provide us with it.” ■ www.donaldrussell.com
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Dough-n’t give up
The secret to Cookies-n-Milk’s tremendous success is the tenacity and perseverance of its founders
The very first account we got wanted two dozen cookies,” Mike Blasko opens, recounting the earlier days of Cookies-n-Milk (C&M). “And I remember having to write a cheque for $7.21 to buy the ingredients. Now the problem was, I didn’t have $7.21 in my bank account, so I literally had to buy what I needed, run home to make the cookies, get them over to the customer to collect the money, and be back in time to bank it. However, in that first year the business grew by $70,000, which, for a couple of poor college kids in the 1980s, was a ton of money.”
C&M was founded in 1987 by Mike and his wife Cindy Blasko. Fascinatingly, the original motivation behind the business was to help keep Mike in college, as his basketball scholarship went wayward, and he couldn’t afford to pay his tuition fees alone. The couple started to bake cookies and sell them through local convenience stores, but within three months, Mike decided to drop out to focus on C&M’s unexpected growth. “We just kept reinvesting and growing and in the following year we grew to six figures. The company fell
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on harder times initially when we moved it out to Maryland, where we stayed for almost 25 years, but by the time we moved to McKinney, Texas, we had sales of $3 million per year.
“Upgrading to the 41,000 square-foot facility in Texas provided us with the opportunity to implement a concept I had developed maybe 12 or 15 years earlier, and in 2017 we started making our edible cookie dough,” Mike explains. “In four years, this catapulted us to annual sales of over $16 million. When I think about the journey, there have been hard times when we haven’t had two nickels to rub together, but we just kept on fighting and persevering, and look where we are now. We’re nationwide across the US and looking at some international opportunities too. I was either too stubborn or stupid to quit, even though there were times when I really thought I should. We’re a prime example of how sheer persistence and tenacity will eventually pay off.”
Shell-out success
The first trial runs of Mike’s concept for edible cookie dough were during the 2014 avian flu pandemic in the US. Throughout this period, egg prices soared across the country, with C&M seeing its $16,000 bill for eggs rocket to almost $140,000. Unwilling to let this affect production, Mike picked up the concept where
he’d left off and started figuring out how the business could continue manufacturing if the egg market refused to dip. To avoid charging customers five dollars per cookie, he successfully rewrote and recreated the company’s recipes without the use of eggs, whilst managing to maintain the original taste, smell, texture and ‘bakeability’. As the trials came to a close, however, the pandemic eased, and egg prices began to drop once more.
“We halted the egg-free recipes, as you don’t want to risk any cross-contamination, and in our 7000-square-foot Maryland facility we were super short on space; imagine taking everything in your house and fitting it into your bathroom, that’s how cramped we were. But now, our edible cookie dough is really the biggest product line that we have. It’s the best on the market, it tastes like you made it at home in your kitchen and I believe that we were the first to develop cookie dough pieces that can be baked or eaten as-is. That’s another factor that sets it apart, no spoon required, and the packaging is cupholder friendly, so it’s more shareable.”
Rewarding relationships
Despite C&M being a corporation, Mike refuses to tolerate the quote-on-quote corporate atmosphere in which people climb upon others to further their own positions. In discussing the palpable effect that the organization’s family-owned status has on day-to-day proceedings, he states: “We really try to maintain the family-business feel by appreciating everyone and rewarding them when they do well. I have told people, sometimes it’s like having an extra 70 kids because everyone here is a member of the C&M family. In running a successful company, your product has to come first, but right next to it is the human element of the operation.
“We treat everybody here with respect and make sure that they feel valued. We have a friendly, approachable atmosphere and I love to wander around the production
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floor, catching up with everyone, whether it’s about their kids, vacation or just the game from the night before. A rising tide raises all boats, so as the company gets bigger and more successful, we try to share it with everybody fairly, instead of them all working towards making me rich. We apply a similar approach to our external relationships within our supply chain, and specifically with our vendors; you need them to trust you.
“We have had many situations arise as a result of the ongoing supply chain issues that we have been suffering from in the states,” Mike details. “Luckily, I feel that we are generally prone to preferential treatment from our partners and vendors, because we’re always honest and upfront with them. We pay our bills on time and once in a while like to send out boxes of cookies to show our appreciation for everything they do. You know the old saying: you catch more flies with honey
than vinegar, that’s the way we work. My wife and I have ten children and we have always impressed upon them that it’s not always what you say that counts, it’s how you say it.
“As I say: when it comes to business, your product has to be good, and ours is great,” Mike concludes. “If it isn’t, it doesn’t matter if you’re the best salesman in the world, it’s not going to work. I am the one who has done the research and development here, I own the company so anything going out of the door has my name on it, and I want our products to be better than anybody else’s. I don’t want to sound arrogant, because I’m not, but I think my gift is just knowing what people will like and what’s going to be popular. Judging by how many happy customers contact us to share their love for C&M products, I’d say it’s all worked out.” ■
www.cookiesnmilkinc.com Cookies-n-Milk foodchainmagazine.com 81
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Success in the Midwest
Heart of America Group defines the difference between spreading yourself too thinly and expanding successfully
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This year, Heart of America Group (HOA) is celebrating 45 years of operational success and exponential growth. The company humbly began with a 100-seat restaurant on the outskirts of Davenport, Iowa, but today plays host to a powerful portfolio of owned and operated, award-winning hotels, restaurants and commercial properties across the Midwest. In perusing its extensive offerings, it’s fair to say that Mike Whalen, President and CEO, has successfully executed his vision: to build cool.
As a result, HOA’s building segment has organically evolved into an award-winning design, construction and management business, as one of the region’s premium hospitality and real estate development companies. Through its broad internal team, the organization is able to lead all aspects and phases of construction. In terms of design, this includes site planning, evaluation and selection, feasibility studies, conceptual and schematic design, environmental graphics, franchise design verification and much more. When it comes
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to the actual construction, HOA builds on the knowledge and passion of its inhouse engineering and architectural teams, by drawing on its wealth of knowledge and four decades of experience.
From planning through to construction, the company strictly adheres to its green strategy. All of its developments employ hybrid HVAC systems, with efficiency components such as geothermal, solar thermal, heat pumps, heat sharing, energy recovery ventilation systems, electrochromic smart glass, green roofs and real-time equipment monitoring. The majority of its properties also feature electric vehicle charging stations.
The Machine Shed, in Davenport, was the first restaurant that HOA opened in 1978. It conceptualizes a farm-to-table notion that celebrates American farmers. In embracing this theme, the franchise relies on local
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In a world of mass-produced lodging choices, HOA focuses on pushing the envelope in design and hospitality by delivering award-winning accommodations for guests, and the communities that we call home
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supply chains to find the highest quality produce from nearby providers, which is butchered daily inhouse to retain the utmost freshness. The main dinner menu is generally meat focused and includes a range of smoked-on-site dishes, but offers a collection of comforting homemade favorites and a number of salads too. In paying homage to this success story, the company also opened the Burger Shed in Iowa.
The other franchises within HOA’s portfolio are Thunder Bay Grille, which specializes in steaks, seafood and Cajun style dishes, Gramma’s Kitchen for comfort food, Johnny’s Italian Steakhouse, and The Checkered Flag Bar and Grille. There are three bars in its portfolio too; Fifth Avenue Syndicate is a 1920s-themed cocktail bar
located in The Axis Hotel in Moline, Illinois, and The Republic on Grand is a 6th floor hotel lounge in downtown Des Moines that offers cocktails, craft beer and global plates. Finally there is J bar, in Davenport, which offers an upmarket selection of modern American cuisine, wines, cocktails and beer.
A shared theme for all of HOA’s food and drink offerings is that, as a customer, you are always treated as a friend. The group is famed for excellent staff retention, which allows for the kind of consistency that keeps clients returning again and again. This isn’t overlooked by the employees, as the culture is synonymous with excellent customer service. It’s commonplace for visitors to be remembered and known by name. Going forwards, the business is planning
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on expanding into further restaurant franchising to grow these successful groups.
The final piece of the HOA puzzle, is the slice of the hotel market that it has successfully served itself. As Scott Math, Brand Leader at IHG Properties has said: “HOA’s hotels are designed to inspire, connect and delight our guests. Our boutique style hotels, regardless of global branding, are built on a foundation of service and excellence. In a world of mass-produced lodging choices, HOA focuses on pushing the envelope in design and hospitality by delivering awardwinning accommodations for guests, and the communities that we call home.”
There is a variety of brands among the hotels, to suit clients travelling for both business and pleasure. In a bid to exceed its competitors, the company strives to offer its customers more in terms of design and amenities, and prides itself on having
spacious and relaxing bedrooms. Within the upper end of its offerings, there is a small range of boutique brands. The Rewind Hotel in Moline, Illinois, adopts a touch of the 1960s and 70s, whereas the theme of The Axis Hotel plays on the ornate details of its walls that have survived since the 1920s. Across in Des Moines, HOA operates the area’s only four star hotel, Hotel Renovo. Additionally, Hotel Revel celebrates the heritage and fun of the heartland that is Iowa.
One thing that’s certain, is that as the HOA team grows the business and expands its footprint across the region, it leaves a trail of good times, excellent service and home-from-home comforts. It truly is the giant of the Midwest’s hospitality industry. ■
www.heartofamericagroup.com
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THE FLAVOR of New York
From simple yet famed frankfurters and a soft drink stand to a fast-casual empire: the sizzling story of Nathan’s Famous
Nathan’s Famous (Nathan’s) has stood the test of time.
Launched all the way back in 1916, the popular legacy restaurant brand quickly amassed a strong local following for heavenly hot dogs and craveworthy crinkle cut fries. More than a century later, Nathan’s still proudly serves up the flavor of New York, but on a much larger scale.
Alongside its signature specials, including the Original All Beef Hot Dog and Chili Cheese Fries, Nathan’s offers a range of best-in-class burgers, New York-style cheesesteaks, and fried chicken classics. From the onion ring-laden BBQ Bacon Tribeca to the pickle-topped New York Attitude, Nathan’s creates an experience equally aimed at the discerning fast-casual foodie and the regular Joe hungering after a comforting all-American bite.
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Our menu features not only our signature hot dogs and fries, but also a wide range of iconic food
With nearly 400 restaurants and virtual kitchens all over the world, plus a further staggering 80,000 points of distribution (covering both retail and catering services), there is more than likely a chance to chow on Nathan’s unique fare near you. As the oldest hot dog chain in the US, the company’s
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the world are tucking into Nathan’s and getting a taste of the Big Apple.
Dream team
Nathan’s-branded products are currently available in restaurants and fast-food takeout locations, in addition to stocked goods in grocery stores, supermarkets, and club stores. Yet the original Nathan’s restaurant, for those that want to see where the legacy began, still stands on the corner of Surf and Stillwell Avenues in the Coney Island neighborhood of Brooklyn, New York City.
Today, the restaurant is an icon and remains open 365-days-a-year. Once just a stand slinging frankfurters, roast beef, and hamburgers with fried onions for five cents, the location has grown to nearly a full-city block. It has nearly 50 registers, and in the summer tourist season, it requires crews of 200 to meet the demand.
To get an insight into the wider business, we recently sat down with Phil McCann, Vice President of Marketing at Nathan’s. “I have worked with the business for more than two decades,” he begins. “In fact, Nathan’s was one of my original accounts while working on the ad agency side of things. Then, I was hired to head up marketing inhouse at Nathan’s back in 2015.
“Our menu features not only our signature hot dogs and fries, but also a wide range of iconic food,” he adds. “Our commercial footprint is flexible: we have carts selling hot dogs, fries, and toppings, plus standalone restaurants (ranging from 300 to 3000 square feet) with drive-thrus. The style of these locations may be described as a New York City loft aesthetic: vintage look, high ceilings, lots
of light, and plenty of open air. Some new locations are being built from the ground up; others are being renovated or tweaked to reflect all or some of the new look.
“What I like about working here is the teamwork, particularly on the restaurant division team,” Phil continues. “Most of us have worked together for many years, and we are a hardworking group; all of us wear many different hats. We have a passion for quality; this is delivered by our restaurant teams and franchise operators and can be seen in the maintenance of our restaurants and customer service.”
Love what you do
While, at least in name, Phil is the Vice President of Marketing, he is also involved in many other aspects of the business – from research and development to purchasing and sales, as well as design
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and retail management. Each day, his role is different, and that is precisely why he loves working at Nathan’s.
Best-in-class brand
With over a century in business, it is safe to say the company has experienced a wide range of geopolitical and economic uncertainties. So, how is Nathan’s dealing with rising costs, labor shortages, and disrupted supply chains in the wake of the pandemic and recent global tensions?
Phil breaks it down for us. “Unfortunately, the entire industry is struggling with several issues and uncertainties,” he admits. “The pandemic was hard on all of us, but it was especially tough for small business and restaurant owners, many of whom were forced to close due to restrictions or stretch resources to make up for lost sales in any way they could.
“The unfortunate reality was that many couldn’t, and those that made it through are still struggling today,” Phil notes. “Our goal is to give these restaurant owners a best-in-class brand that has more than 100 years of recognition packaged in a quick, easy-to-open strategy aimed at driving revenue fast. Hence, for a limited time, we are offering potential franchisees a 50 percent reduced franchise fee if they commit to converting their shuttered or currently open restaurant location to a Nathan’s store. The conversion program offers flexibility with design, equipment, and infrastructure – often using the restaurant’s current arrangement – to save costs and open quickly.”
Robust relationships
Regarding labor issues, Nathan’s is incentivizing good performance for its crew and is determined to offer quality of life benefits. “Treating people well is imperative for us,” says Phil.
“As to the rising prices, we are trying to stay ahead of the game,” he goes on. “One example includes our transition from corn oil to canola oil. This change uses a less expensive product that still delivers the same quality and flavor. We also have paid very close attention to our ordering processes and elimination of waste, while also renegotiating contracts with suppliers to benefit both parties. For example, we understand we need to take a cost increase, but also negotiate the increase down as well as lock-in the price for next year.”
Yet, for Phil, the supply chain – and difficulties procuring items from equipment to paper products – has perhaps been the biggest challenge. “We simply try and
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stay in constant contact and discussion with our partners, vendors, and distributors to circumscribe wider issues,” he explains. “We give our partners realistic projections and see where we can improve and work with them. If we can, we try and help the distributors by cutting back on deliveries to help with the US trucking shortage.
“Looking at the year ahead, we have a busy schedule,” he concludes. “We will be
opening several ghost kitchens in Belgium, France, India, and the Netherlands in the coming months, and expect to open new restaurants in Egypt, Brazil, and Mexico by the end of 2023. Domestically, we are working on opening new sites in Florida, Pennsylvania, and Arizona.” ■
www.franchise.nathansfamous.com
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We will be opening several ghost kitchens in Belgium, France, India, and the Netherlands
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The dough continues rising
Hoogland Restaurant Group sets the ultimate example for growth and expansion
McLain Hoogland, President, is the fourth generation of his family to lead under the umbrella of Highland Ventures (HV), in the Hoogland Restaurant Group (HRG). The group was founded in 2012, inspired by a previously successful endeavor the family had owned in the 1990s, and one of myriad operations under its wing.
McLain’s great-grandfather started the HV legacy in Springfield, Illinois, with Mid States
Appliance (MSA), a middle market company that his grandfather ended up taking over. By the time his dad joined, there were a number of other small ventures involved but MSA remained the mainstay. As it grew it became a wholesale business for suppliers and was chiefly responsible for getting Sony into Sears, among other major retail chains. In 1978, HV was one of the first in the US to enter the video rental sector with Family Video, of which McLain’s father became the President.
▼ McLain Hoogland, President
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Hoogland Restaurant Group
“Over the next 30 years that grew into a 900-unit video store chain. We were actually the third biggest in the US for a period of years, behind Blockbuster and Hollywood Video,” McLain states. “During that period we built up our current real estate portfolio, of around 700 commercial properties, until 2010 when Blockbuster filed for bankruptcy. Despite Family Video lasting until 2021, my dad started to see the end of the tunnel and decided to revisit the restaurant sector. We had a really successful pizza company called Pop’s Pizza back in the 90s, but it became too much of a distraction from the video business.
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Pizza perfection
“We landed on Marco’s Pizza (MP) after a franchisee moved into one of our spaces down in Murfreesboro, TN, and we couldn’t help but notice the likeness between its model and the one we had adopted for Family Video: great products, excellent customer service, and a real sense of authenticity. We started opening up MP branches in 2012 and within five years had 125 under our ownership. I joined the operations side of HV in 2016, when I left the Marine Corps, and kind of got thrown into HRG to fix this side of the company. I had enough
time to close some poorly placed units and replace them with stronger positions before the pandemic hit, which blew up our business in the best kind of way.”
The menu at MP is a succinct collection of high-quality pizzas, sides and subs. The pizzas come loaded with the brand’s signature three-cheese blend on a number of different crust styles, and play host to a range of topping-combinations, such as: All Meat, with pepperoni, ham, Italian sausage and bacon, Deluxe, which swaps out the ham and bacon for mushrooms and green peppers, Garden, a vegetarian option, and many others. The sides include Cheezybreads, salads and chicken wings or dippers, as well as sweet Cinnasquares for dessert.
Family flavor
“If I could only eat one of our pizzas for the rest of my life, it would be between two of them,” McLain continues. “Either our Deluxe, or the White Cheezy. It has a white, garlicparmesan-sauce base, our regular cheese blend and then it comes with tomatoes, bacon, onions and feta. It’s just awesome. It’s one of our best sellers. For a long time it won best pizza every year for MP.
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“For me, pizza represents a sense of community as it’s always been a familyoriented meal. Everyone’s got a preference, but you still ultimately find a way to share it, whether it’s all meat or half and half, or you’ve got to get two smaller ones so you can get a gluten-free option as well. Everyone loves pizza, I don’t know anybody who doesn’t like it, so I always try to impress on our staff that you’re literally making or breaking somebody’s day with what you serve them. It’s a last-minute thing that you can order and collect within 20 minutes that will feed your entire family, and maybe even provide leftovers for the following day.
“Besides attending business school, my background is in operations, training and people management from being an infantry officer in the Marine Corps,” McLain explains. “However, I’ve found the structure of the restaurant business to be very similar, with the linear chain of command and
repetitive nature of the procedures. I feel that restaurants are very simple enterprises, as long as you are focused on training your people and providing great customer service. I found my true passion in the opportunities we can offer our employees, in terms of career progression. It’s one of those industries where you can succeed on merit, rather than just academia, and rise from a driver up to a multi-unit manager. I like to reward those who work hard.
A fresh approach
“Consistency is the key to our success. In quality and taste but also in people, training and leadership. We make our dough daily, which only lasts around 60 hours once it’s been set to prove, and still use only fresh toppings and ingredients. With the product nailed down, I have complete confidence that we can hit 300 units in five years’ time. The current rate of growth has been 25 locations
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▲ McLain, far right, with District Managers of Marco’s Pizza
every year, so we need to alter our approach. Internally, priming our workforce is a key factor adopted from Family Video, where we had 32 years of uninterrupted growth year-on-year. By the end, almost everyone at the top had risen from an entry position.
“We’ve just moved our corporate office down to Nashville, TN, from Chicago, with the aim of expanding our footprint within the region,” he concludes. “Going forward, there’s around 20 different markets that I’ve shortlisted for maximization, in which we currently have five units. Our talented multiunit operators are capable of managing six-toten spots, depending on their geographical placement, which means we’re in a prime position to almost double our coverage without a great deal of overhead. We love the brand and have a really good partner in MP, so if something is working, then why stop?” ■
www.hooglandrg.com
◀ McLain, left, with Josh Goforth, District Manager of the Year, 2022 foodchainmagazine.com 99
Hoogland Restaurant Group
DOUBLY DELICIOUS
There’s more on the menu than burgers at
S&L Companies. Here’s how the company is offering career development as well
When Chad Stevenson and Jeff Liegel visit a Culver’s restaurant, they order the double deluxe and bacon deluxe burgers respectively. “Our fried cheese curds are a Wisconsin treat,” shares Jeff. Chad echoes this statement, adding that the chocolate custard and peanut butter milkshake cup is equally indulgent. These are a few of the many items that make the Culver’s menu memorably mouth-watering.
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▼ Jeff Liegel and Chad Stevenson
During our interview with the two coowners, we notice a sign sitting behind Chad that reads: ‘Why the hell not?’ This fearless mentality is one of the pillars of the business, and the reason why S&L Companies, named after Jeff and Chad, has become a successful restaurant franchise group. In 1994, the business opened its first Culver’s restaurant, specializing in gourmet burgers and milkshakes. “Chad and I actually grew up in Reedsburg, Wisconsin, where the second Culver’s was built,” explains Jeff. “We worked there during high school, and then we talked our parents into buying a franchise. We helped our parents and their business partners until 2010, when we then bought the business ourselves.”
Continued growth
Since the buyout, Chad and Jeff have been the two primary owners. They have expanded the business into a network of 86 restaurants, with a further 20 in the works across five states, namely Wisconsin, Michigan, Indiana, Florida, and soon in Alabama. The relationship between S&L Companies and Culver’s is a unique and closely-knit one. Jeff and Chad are determined to ensure each guest who visits any of their restaurants leaves happy. Their mission is buttressed by the business’ founding principles of hospitality, quality, freshness and service to the community. This then speaks to the company’s culture. While Jeff and Chad may be considered young for their age, their youthfulness brings a charismatic energy to the rest of the company. “Jeff and I always say we are brothers first, and business partners second. This trickles down to our office team and our partners. We are one big family, and we try to keep it that way,” Chad highlights.
Supporting Chad’s explanation, Jeff emphasizes that Culver’s is all about the people, and even during the organization’s most difficult times, the leadership team
works relentlessly to put the interests of its staff first. “When Covid-19 struck, our restaurants dropped 40 percent in sales immediately. The first challenge was to figure out a way to increase the drive-thru revenue to keep the business going. We improved our business significantly because we saved the jobs we had, and were able to grow our employment opportunities. We were so successful that we set up a second drivethru lane outside our front door, and within a few weeks we went above 20 percent, and that is how we finished the year,” says Jeff.
Now, the two entrepreneurs look to 2023 with fresh optimism and renewed hope. They are excited by the prospects of growth and business expansions. “We are entering northern Alabama, which is possibly one of our most exciting ventures currently on the cards. We are hoping to build six restaurants over the next year and a half,” Jeff expresses.
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Spreading the word
From Chad’s perspective, the plans currently in the pipeline will come to fruition quicker than expected, which will stand the business in good stead for a successful 2023. “The restaurants in Michigan, Indiana and Wisconsin each have one location in development, but they are obviously not new markets, so we are going to have the excitement of learning the Alabama market and spreading the word to new customers.
“We often lean on our customers and managers to help advertise the new territories. So when we go to a new market, we try to make sure we take the six best operators in our system, put them in the new locations, show them what Culvers is all about, how we can help the community and offer them the best opportunities,” Chad explains. This has been the company’s strategy since its inception.
When asked about where they would like to see the business in five years’ time, Jeff shares that they’re keen to retain as many owner operators as possible, and help push them forward in their careers in hospitality. As far as total restaurant revenue is concerned, those projections are likely to be determined in the new year. “We get asked that question a lot, and while it is such an important question when it comes to choosing a direction for us to move in, this industry is forever changing. So, our end goal really depends on how many owner operators we continue to mentor and develop. This will then determine how many restaurants we open in the coming year,” Jeff expresses.
Chad brings the conversation to a close by sharing that he wouldn’t be surprised if the business finds itself in the top 20 franchisee companies in the country. Food Chain wishes the team all the best, and looks forward to catching up in a few years to see how S&L Companies has continued to grow. ■
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Serving up delights and turning on the glamor with Rhubarb Hospitality Collection Exceptional moments in time Rhubarb Hospitality Collection foodchainmagazine.com 107
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When one sits down at a white linen-covered table, perhaps under a lofty ceiling or the endless possibilities of an open-sky terrace, the stainless-steel cutlery seems to glimmer with a certain prestige, the champagne flutes call out for French grapes, and everything seems to stand still while appetizers are brought out by cheery waiters.
It’s special. It’s a moment to remember – an occasion to revisit on rainy afternoons. Rhubarb Hospitality Collection (RHC) was founded to create moments in time such as this. Established in 1996, the focus was on luxury events from the start; however, the group has since grown into an international premium hospitality brand known for operating a broad spectrum of services, including restaurants, bars, Business & Industry (B&I) catering, as well as continuing to flourish within the wider events industry.
Rhubarb Hospitality Collection
One key moment occurred in 2007 when RHC secured its first permanent location within the UK. Fast forward to today, and the hospitality group now manages several permanent locations across a slew of iconic venues, including the Royal Albert Hall, Sky Garden, 22 Bishopsgate, Ascot, Frameless and Mamma Mia! The Party. Just ten years on from that first permanent location, RHC expanded across the pond with two new projects in New York: the renowned sky-high destination restaurant, Peak, and the acquisition of an events business known today as Events by RHC.
More recently, European developments have been at the fore of RHC’s growth strategy, as the company proudly opened Frederick’s in Berlin. Housed in the former Hotel Esplanade, the restaurant and events space has a rich history – and its atmosphere reflects that. RHC invites diners to sample reinvented German-
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origin dishes and international flavors within the glamorous aesthetic of the roaring 1920s.
Delivering the best
To create extraordinary dining experiences and events such as these, RHC leads from the front with a seasoned and passionate team; design idiosyncrasies blend with a uniform mindset toward hospitality and the possibilities and pleasures afforded by the consumption of food in gorgeously stylized environments.
Concept development, project mobilization, managing partners, and
consistent client engagement – these are some of the skills and services offered by the RHC team. Accredited as a caterer at over 80 landmark, jaw-dropping venues across the UK and US, from world-famous museums of wonder to a treasure trove of historical royal palaces, the hospitality company has become well-known for its relentless pursuit of excellence and staunch defiance of traditional boundaries associated with events and catering.
To better understand the business behind the famous name, we recently sat down with PB Jacobse, CEO at RHC. “We
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are an incredibly entrepreneurial business made from a team of creative, focused, and passionate individuals,” he begins. “We are proud of our decidedly handson approach and our constant ambition to achieve consistency in our overarching mission, which is to deliver the best to our clients and partners – with no exceptions.
“We also have a full-time, in-house creative and food development team,” PB Jacobse adds. “With creativity being at the heart of what they do, they are continually looking at trends and inspiration from across the globe to stay ahead of the curve and offer
memorable experiences, whether at an event or restaurant. Indeed, we are kicking off 2023 with an exciting start, opening Larch, a new gift shop, café, and Italian restaurant situated opposite Sky Garden.
“We will be welcoming guests from the middle of February, serving hearty Italian fare in the restaurant as well as warming drinks in the café. The gift shop will offer a range of Sky Garden souvenirs and gifts for the garden, so visitors can take a small slice of the Sky Garden home with them.”
Perfect partner
Other recent developments have boosted RHC’s renown, while also conjuring excitement and pride within the company itself; for instance, the firm was honored to be chosen as the sole catering partner for the opening party of the iconic Hudson Yards in New York City, a 28-acre real estate development,
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which is home to more than 100 different shops and culinary experiences, as well as offices for leaders in industry, modern apartments for professionals, and dedicated spaces for cultural institutions like The Shed.
As PB Jacobse explains, the event had over 20,000 attendees and RHC served themed food and drink across all floors. “It was truly a magical moment – seeing UK and US teams come together to beautifully deliver a truly memorable night,” he reflects. “The success behind an event such as this inevitably comes down to the people involved.
People first
“Simply put, people are our business: hospitality begins and ends with how we treat one another – and, in turn, our guests – at work,” PB Jacobse goes on. “Values are personal to each company, and they should be the backbone to your business. It is no
good having values if nobody believes in what they represent. Our core values, which are all connected to how we treat people, have become a reminder of what is important. They are as follows: passionate, creative, focused, humble, and excellence.”
Since its founding, RHC has utilized a number of strategies to motivate and inspire its various teams – from
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New openings, new countries, new experiences – all with the same quality. We are on a journey, and there are some very exciting times ahead at RHC for sure
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A FIND
Tomahawk Steakhouse: how a hunger for decent steak became a lauded double-digit restaurant chain
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The story behind Tomahawk Steakhouse began in 2017 when Howard Eggleston launched the initial site in Potto, North Yorkshire. Since then, Tomahawk Steakhouse has taken flight – and hit the bull’s-eye – thanks to its specialist offering of supersize tomahawk steaks, dry-aged Himalayan salt beef, as well as Yorkshire wagyu. The restaurant chain has become a staple across the Northeast of the UK – but it hasn’t stopped there.
Now branching further afield, the company has locations in Middlesbrough, Beverley, Chester, Darlington, Durham, Newcastle, Nottingham, Ponteland, Potto, Saltburn-by-theSea, Warrington, Yarm, and York.
More recently, the popular chain has diversified with the opening of five Rio Brazilian Steakhouses (RIO) since 2019.
Created with the aim of taking budding foodies on a journey into the heart of the Tijuca Urban Forest, which surrounds Rio de Janeiro in Brazil, customers can expect superb planted walls, multicolored flowered ceilings, and, of course, an exotic Brazilian Churrasco dining experience.
As Howard tells us, all of the group’s RIO restaurants have gone straight to number one on TripAdvisor. By virtue of these expansions, the Tomahawk Steakhouse group now turns over around £35 million – and it’s hungry for more. Indeed, rapid expansion plans are now firmly in place, with new locations in Harrogate, Morpeth, and Sunderland expected to open soon.
Talking us through his company’s rise to success, Howard unpacks the decidedly humble origins of Tomahawk Steakhouse. “The truth of the matter is, in the beginning, we just wanted a really
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Rio Brazilian Steakhouse Quayside
good steak and eggs with chips and brown sauce!” he explains. “But we couldn’t find one nearby. Therefore, the only thing to do was develop our own restaurant serving just that!
“Since then, our mission has been to serve superb steaks in a relaxed environment that also has a very sharp focus on delivering a great customer experience,” he goes on. “We want to create a place that encourages friends to grab a loving breakfast, light or long lunch, or fabulous dinner. Our venues, in addition, provide the perfect location for that very special date night.”
Menu development
Though the group’s growth has been incredibly fast, Howard suggests that’s just how the world prior to the pandemic was. “It all felt very natural at the time,” he reflects. “It was rapid – and likewise our reputation grew with each physical opening. Then again, rapid is our natural pace of business. We don’t stop to enjoy the fruits of a new opening, we get out there again, looking at new sites to maintain the momentum. That said, I don’t think any of us would have envisaged that, only five years later, we would have nearly 20 total venues open. But that’s how we did it and that’s where we are at.”
But perhaps Howard is being modest. Due to the nature of its product, Tomahawk Steakhouse really doesn’t have many competitors. “We serve dry-aged steaks whereas most other places sell wet-aged ones,” notes Howard. “Although you will now find places like Miller & Carter serving a range of Himalayan salt dry-aged steaks on their menu. The difference, however, is that we have a secret sauce – one we use to glaze our steaks. So, theoretically, anyone could come along and serve the same steak from the same meat supplier and cook it in the same oven at the same temperature, but without
the Tomahawk secret sauce, it would never taste the same!”
Despite this tried-andtested approach, which fosters a unique sense of consistency across the near 20 restaurants under its portfolio, Tomahawk Steakhouse still sees its menus as a work-in-progress. “Indeed, we are constantly developing our menus,” says Howard. “As a company, we are always on the lookout for inspiration on our travels across the country, especially when looking for new sites.
“Our team is comprised of massive foodies; they all get really excited when we discover new dishes or flavor combinations that work well,” he continues. “We don’t divert too far away from our customers’ core palate, but we do try and introduce new dishes throughout the year to keep things fresh.”
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. . . we have a secret sauce – one we use to glaze our steaks
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Tomahawk Steakhouse
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Tomahawk at Yarm
It’s worth pausing on that team of foodies. For Howard, creating a unified company culture is a significant part of the business. “Over the years, we have witnessed the emergence of a strong company culture,” he reveals. “Moreover, attitudes to people who work within the sector have changed massively in recent times. At Tomahawk Steakhouse, we have a fantastic senior team that makes sure all individuals have good job satisfaction.
Collaborative approach
“When it comes to new openings, we have staff training and people development days to break the ice,” he adds. “We have a great monthly newsletter that goes out to all team members, keeping everyone informed about their own successes and new developments across the group. Indeed, all this has meant that we have found a more holistic approach to our staffing and company culture – it just works really well.
“Like any business, though, we can’t be a success without our suppliers’ success, so they are a hugely important part of that wider culture network. We work on a collaborative basis where we all benefit from
each other’s wins. In fact, we prefer to use the term trusted partners rather than suppliers.”
As it stands, Tomahawk Steakhouse is in multiple discussions with landlords regarding four new venues, which the group hopes to open this year. Alongside that, Howard tells us he aims to increase its annual turnover to in excess of £50 million by the end of 2023.
“We have seen RIO make stronger returns than we initially forecasted for its first few weeks of opening, so we will be turning our focus more towards growing that individual brand (in addition to Tomahawk, of course),” concludes Howard. “If 2022 has taught us anything, it is that we have two brands that perform strongly in a competitive market and socioeconomic downturn. We look forward to watching them grow further.” ■
www.tomahawk-steakhouse.co.uk
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CUSTOMERS, COLLEAGUES, COMMUNITIES
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From left to right: Michael Nance, Joe Canfield and Walker Brumskine
127 Wall / Yellow Banana
COLLEAGUES,
Yellow Banana’s Founders share the personal story behind its inspirational mission
Each element of who I am plays a role in how I personally think about Yellow Banana and its mission statement,” asserts Ademola Adewale-Sadik, one of Yellow Banana’s four Co-Founders. “Yellow Banana’s mission is to deliver essential nutrition to working families at affordable prices. Each of us have in some way been on the receiving end of the socioeconomic realities that our customers deal with daily, so we truly ‘understand the assignment,’ so to speak. We care about our communities in direct and tangible ways.”
Yellow Banana is a grocery retail platform that operates under a triple commercial mandate of addressing food access, job creation and economic development for the benefit of three key stakeholders: customers, colleagues and communities. Yellow Banana provides
Ademola Adewale-Sadik
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underinvested communities with dignified shopping and employment experiences to enhance quality of life and gradually tackle the damaging impact of socioeconomic inequities, specifically food insecurity. Yellow Banana is owned by 127 Wall, a holding company formed by the Yellow Banana Co-Founders.
The company was founded in 2021 by three long-term friends – Michael Nance, Walker Brumskine, and Ademola— and Joe Canfield, a seasoned operator in the grocery sector. “We were some of the only Black guys at Yale Law School and we became fast friends,” says Michael. “Even though we were from geographically dispersed areas –Ademola immigrated from Nigeria, Walker’s heritage is from Liberia and I grew up on the urban east side of Cleveland – we all shared similar backgrounds and spent a lot of time considering how to make an impact in the communities we deeply care about.”
The loss of Walker’s father and Michael’s mother, as well as the Covid-19 pandemic, plunged that conversation into new depths. “We realized that life is extraordinarily brief; we thought we would go off and share the riches with the people we love, but that isn’t always the case,” Michael states. Instead, Yellow Banana incorporates the Founders’ careers and expertise, while speaking to deep, personal missions to tackle injustices and establish food stability across the US.
To elaborate: Michael, Ademola, and Walker’s private sector skills in law, business, and private equity investing, together with Joe’s extensive experience in the grocery industry, created the ideal environment to form Yellow Banana. “Knowing who I knew from the industry and working with the folks at Save A Lot, I found out about this opportunity for retail partners
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There are a lot of neighborhoods in the Midwest that need our help, so we are focused on growth in those states
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to acquire some of their stores,” explains Joe. “Then, as Michael and I had a personal relationship from moving in similar circles in Cleveland, he introduced me to Walker and Ademola and one thing led to another.”
Yellow Banana initially purchased 32 Save A Lot stores and now operates 38 premises under the same banner, with plans to further expand. Its footprint spans five states: Ohio, Illinois, Wisconsin, Florida, and Texas. “There are a lot of neighborhoods in the Midwest that need our help, so we are focused on growth in those states,” says Joe. “However, we feel like we are building a model that we can replicate with other local governments in other locations when the time is right.”
Michael expands: “We are excited to enhance our impact in communities in which we already operate. For example: in Illinois, we have been able to pair a $13.5 million grant from the City of Chicago with over $20
million in New Market Tax Credits allocation to acquire and refurbish stores across the City.”
This unique ability to harness public dollars, and partner this with private dollars to create effective, meaningful support for communities, sets Yellow Banana miles apart from its competition. “There are three parties in our investments,” Walker explains. “There are private sector dollars, so banks or equity investors, then public sector dollars in local governments, and social sector dollars, such as nonprofit. We look for opportunities where all three can ideally play together.”
Community engagement
In addition, Yellow Banana has recently partnered with Flashfood to place inventory that would otherwise be discarded onto the Flashfood app at discounted prices. “We will always seek continuous improvement with respect to inventory purchasing, but some
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items will always expire,” Ademola highlights. “Flashfood enables us to offer products before their sell-by dates to a wide range of customers across all socioeconomic demographics through a mobile app. This not only provides customers with discounted groceries, but it also minimizes both food waste and the costs associated with inventory losses.”
So, Yellow Banana’s mission is to bring healthy, affordable food options to working class communities, but how does it decide which communities to operate in? “Our partners, particularly Mari Gallagher, the expert who first popularized the phrase ‘food desert,’ create models that help us identify food-insecure areas,” Michael reveals. “She has data that enables us to see how many meals are missed in communities most in need, so we harness these analytics to make informed decisions about where to pursue opportunities for new stores.”
Walker adds: “We started our journey at grocery stores because that industry, more than any other, sits at the nexus of all the social issues we are trying to combat. There are few sectors that simultaneously address racial inequality, unequal healthcare access, low-income communities, or the many other forms of discrimination.”
Since its inception, Yellow Banana’s community engagement has exceeded its original plan. “We are proud of the community aspect, but we didn’t totally foresee the company’s continual emphasis on community,” says Michael. “We have done a lot of listening and explaining to locals that not only has the leadership at Save A Lot changed, but also that we as a retail partner are independent and localized, with a real stake in seeing stores succeed.”
Returning to company’s triple commercial mandate – food access for Yellow Banana’s
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customers, job creation for Yellow Banana’s colleagues and economic development for Yellow Banana’s communities – Ademola explains how Yellow Banana’s in-store colleagues “typically live near Yellow Banana’s stores, and their families and friends shop there. In addition, a grocery store serves as a ‘community anchor tenant’ that attracts commercial activity, ensures that schoolchildren don’t sit in class unable to focus due to hunger and otherwise promotes positive socioeconomic development on a community level.” Localized employment opportunities have resulted in a diverse workforce, with women making up over half of store managers, and most employees being Black or Hispanic to reflect the communities in which they work.
Call to action
Joe is particularly passionate about the human impact of his work, which has been engrained in him since his early career. He adds: “We encourage staff to be entrepreneurial and give them responsibilities to enhance pride in their work. While we push them to work hard, we want to take care of them because at the end of the day, we don’t do heart surgery, we sell green beans!”
Turning to the future of the company, Michael states: “We have a model of public and private partnership, a method of community engagement, and the tenacity to figure out tough problems. We want to ensure we are addressing social issues related to food insecurity, so for instance, working towards adequate housing and better transportation.” Walker adds: “We hope to expand to other areas and continue securing funding to invest in deprived communities.”
Joe believes that Yellow Banana is a platform for both people and businesses to contribute to ending food insecurity. He states: “Our call to action is to the vendor community. There is excess capacity out there and lots of passion to enhance food
security in our country. We are here and ready to talk with anyone who shares our mission to help people in underinvested communities.”
“We see ourselves as our customers,” Michael concludes. “I am the kid who grew up in Cleveland going shopping with my mom at one of the stores that is now in our portfolio. We identify with the people we serve, so we genuinely want the best for those communities.”
Michael reminds us that although Yellow Banana is a fine example of a company that remains true to its roots, it is so much more than a business. It is a community hub and an inspirational model for us all to follow in targeting the issues we are deeply passionate about. Beyond that, Yellow Banana is testament to the notion that community, friendship, and love can conquer all. ■
www.yellow-banana.com
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Runs in the family
A family-owned company, Lone Star Bakery, Inc., is sitting comfortably in its third generation, with no signs of slowing down
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San Antonio has been home to Lone Star Bakery (“Lone Star”) for over 130 years, with its wealth of colonial history and heritage buildings, stone walkways, and bridges along the calm waters of the San Antonio River. Tracy Fletcher is currently the President of Lone Star and is the third generation in her family to be standing at the helm of the business. Tracy’s grandfather, Mac Morris, Sr. purchased Lone Star in 1956, and served as President until he passed the presidency to his son, Mac Morris, Jr. in 1983. Mac Morris, Jr. then passed the presidency to his daughter Tracy in 2020. Throughout the years, other members of Tracy’s family have contributed to Lone Star’s growth.
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Lone Star Bakery, Inc.
Tracy has worked alongside her mother, her sister, her uncle, and her cousin. Lone Star is a true family operation fueled by the core values of honesty, integrity, loyalty, and passion.
Sweet success
Beginning at the age of 16, Tracy spent many of her summers and vacations working on the product lines and learning the administrative side of the business. After graduating from Baylor University in 1996, she began working full-time at the bakery, and is grateful for the opportunity she has been given to grow with Lone Star. “Third generation businesses usually don’t make it, so I’m really proud to still be here today,” she elaborates, still amazed that what started out as a little redbrick operation in downtown San Antonio,
only selling fresh produce and running a few small delivery routes to local restaurants, has grown into the business she is running today.
In 1987, Lone Star began construction of what is now known as Plant One, having outgrown the little red-brick building downtown. The site has seen myriad changes and additions over the years before finding a new direction in biscuit manufacturing. The bakery experienced exponential success with its biscuit business, which led to the decision to build Plant Two. Plant Two is one of the largest USDA co-manufacturing bakeries in the United States. Tracy continues: “So, here we are today with two plants –one predominantly makes biscuits and the other makes fruit-filled pies, meat pies, kolaches, and other baked goods.”
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▲ Tracy Fletcher, President of Lone Star and Mac Morris, Jr
Between the two plants, which are approximately 500,000 square feet combined, Lone Star houses a number of blast spiral freezers, 160-foot band ovens, spiral proofers, ambient spirals, sheeting lines, sigma mixers, roller bar mixers, and uni-fillers, as well as a 60-foot tunnel oven, kettle cookers, ribbon blenders, flow wrappers, and cartoning machines. Alongside its current operations, Lone Star is testing the implementation of robotics. “Our biscuit lines run 24-hoursper-day, 12 days straight, which makes it difficult to eliminate overtime, especially with the ongoing labor shortages. The Staubli robots that we are looking to introduce will simply replace the human element of our stacking, picking, and biscuit placing roles. It is a vision-based system and once they are fully functional, they will eliminate a lot of manual labor. With 1000 biscuits coming down the line at any time, the
stacking, picking, and biscuit placing is hard work. Many of our employees have been doing that job for several years. We will be able to utilize their skills in other capacities throughout the bakery,” Tracy explains.
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Lone
Bakery,
Baked-in family culture
Lone Star’s philosophy is to always maintain a safe working environment for its employees, who are its number one priority. “It starts at the top with our family and core values,” Tracy confirms. Indeed, Lone Star has been very fortunate to have many employees who love the working culture at the bakery. Tracy understands that it is necessary to continue to empower people and keep them happy. The business employs people from many different cultures and strives to accommodate, and make them feel welcome and appreciated in the workplace. The bakery currently employs people from Afghanistan, and is proud to provide dedicated prayer space.Lone Star knows that without the dedication and
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loyalty of its employees, it would not be able to manufacture quality products.
Lastly, but equally important, are the many other products manufactured by Lone Star. Besides its reputation for delicious buttermilk biscuits, it also manufactures cinnamon rolls, kolaches (pigs in blankets), fruit-filled pies, brownies, and its popular bundt cakes. Lone Star is always looking for ways to expand its manufacturing capabilities to better serve its existing clients and attract new customers.
Running a bakery is not easy work, and can be quite challenging at times, but Tracy enjoys working in the industry. “I am so proud to be here. I love working with the people in the bakery business. This business has grown on me more and more over the years. I love how all of us here at Lone Star Bakery are like partners. We are family and everyone is important.” ■
www.lonestarbakery.com
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Lone
How does a century-old food importer still continue to thrive? Ask Camerican International 136
GlobalSourcing Solutions
The Catz Brothers was a Dutch trading company established in 1916, which specialized in importing spices. When it moved to set up an office in New York, the owners combined the first initial of their last name with their new homeland to create Camerican International. In 1999, the business was acquired by the Gellert Global Group (GGG), a $1.6 billion global sourcing company. Camerican’s role within GGG is focused on sourcing frozen and shelf stable fruits, vegetables, seafood and specialty items.
▼ Josh Gellert, President of Camerican
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Eisenhower Drive
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“Today we are stronger than ever,” states Josh Gellert, President of Camerican. “In terms of total revenue, 2022 was a record year. We work with over 250 suppliers from over 40 countries, across five continents, and we sell to almost every major retailer, including Aldi, Kroger, Wegman, and Costco. We also supply food service operators including Panera Bread and Sysco Distributors, as well as key manufacturers such as Nestlé and Campbell’s Soup. These huge companies all entrust Camerican’s global sourcing expertise to reliably deliver food safe, quality products.”
Business scale
Josh joined the company in 2009. Besides growing up in the food import business, he has a background in investment banking, management consulting and brand management. He left brand management at Nestlé to join Camerican after meeting thenPresident Larry Abramson. They immediately clicked and Larry adopted the role of Josh’s mentor for almost ten years, until Larry stepped back into an advisory role four years ago. In that time, Camerican’s sales grew from $140 million to over $650 million today.
“A key factor that has facilitated this kind of growth, has been the change in the mindsets of our customers,” Josh continues. “Over the last 15 years, the market’s interest has shifted to focus more on reliability, quality, and food safety. This plays to Camerican’s strengths. In addition, to partnering with the top suppliers from around the world, Camerican employs a team of 20 food safety professionals across the US, Thailand and China who provide crucial added value to the organization.
“The scale of our business is a real benefit for our customer base. GGG imports 20,000 to 25,000 containers every year, helping us to secure the best prices on logistics. Our scale also helps us make sure we procure the best quality products at the best prices from our
suppliers. Lastly, our size also helps us manage the working capital demands of the import business. Once we have paid a supplier, their products can take up to two months to get to the US via ocean freight. After this, we may hold the product in inventory for an additional three months before it’s delivered to customers who can take another 30 days to process payments. It requires a lot of
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Regenerative agriculture and organic produce are both really important to our clientele, but beyond farming, its also about how raw materials are processed and how items are packaged and frozen
capital, but this is something, with our scale, we are comfortable with.”
In utilizing the balance sheet at its disposal, Camerican not only facilitates its own growth through acquisitions, but also aids the development of its suppliers with investments and working capital advances. Whether it’s required for raw materials, new equipment and technologies or other general support, Camerican will strategically leverage its own finances to ensure its supply partners are capable of providing the highest quality products.
Sustainable agriculture
“In 2016, we acquired a frozen fruit sourcing company called KHI,” Josh explains. “We had traditionally been really strong in the frozen vegetables market and constantly had customers asking if we could offer frozen fruit, to complement our product range. We saw a great synergy potential between KHI and Camerican and a very similar culture. KHI had reached a point where it needed more infrastructure to scale up and agreed to partner with us. Similarly, and more recently, we acquired a business called RR Foods, based in Montreal, Canada. RR Foods focuses on frozen vegetables and value-added items, allowing us to add more depth to our supply and customer base while allowing RR Foods to take advantage of Camerican and GGG’s scale.
“Every month, at GGG, we have companies approaching us asking if we would like to acquire them. Ninety five percent of these just aren’t the right fit and, of the five percent that we investigate further, we acquire only one percent. We need to see alignments between our cultures and mindset, and of course it
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needs to make sense strategically. We are always on the lookout to add to our team but it needs to be the right fit.”
Camerican also takes its green initiatives very seriously, as Josh details: “We have fitted our offices and warehouses in New Jersey with solar panels, but a larger part of our sustainability focus sits with our suppliers. For some time now, we have been specifically partnering with producers at the forefront of the most sustainable agricultural techniques available. Regenerative agriculture and organic produce are both really important to our clientele, but beyond farming, its also about how raw materials are processed and how items are packaged and frozen. There’s a perpetual cycle in which our most environmentally friendly suppliers attract the most clients, which in turn brings them more capital to invest in even better practices.
“Despite our continued success,” Josh concludes, “I’m hoping for a calmer and more boring 2023! We have an amazing team at Camerican; however, the last two years have taken their toll on the team given all the supply chain challenges. I am incredibly proud of how resilient our team has proved to be, and it would be nice to focus our team’s efforts on growing our business in a calmer market. When I think about five years from now, I am hoping we can continue to build our business together with our supplier and customer partners expanding into new categories and new emerging markets, while still maintaining the same high level of service and expertise that our partners have come to expect from Camerican.” ■
www.camerican.com
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The brines they
OH SNAP! proves there is no time for dilly dallying in the pickle business
OH SNAP! is known for its pickles. They’re sweet, they’re salty –and they’re the favorite among many North Americans. But the company didn’t begin with them.
Now a fourth-generation family-run business, OH SNAP! was founded back in 1900 and it had a peculiar claim to fame: it was the world’s largest manufacturer of sauerkraut. The founder’s greatgrandson, Ryan M. Downs, who now serves as company CEO, recently sat down with Food Chain to discuss a rich history and a brine future.
are a-changin’
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“It’s true!” he begins. “Well, we actually began life in the fresh produce cabbage business; the company would harvest cabbages and sell them to large, upper-midwestern cities. To put some perspective on how long ago that was, the cabbages were sent by railcar on ice blocks!”
Pickle perfect
Over time, though, a big surplus of cabbages built up. What was Ryan’s great-grandfather to do with them? Turn them into sauerkraut, of course! And, as Ryan puts it, that’s how the family business was born – and it was to be preserved in salty brine.
“The business continued to grow throughout the 20th century,” he goes on. “Fast forward to 2005, I was living in New York City, but decided to move back and join the family business. We were still an exclusively sauerkrautfocused company, and our brands were number one nationally for both shelf-stable and refrigerated products. But we saw what others, including some of our packing customers, were doing with pickles and it gave us an idea.”
Perhaps more specifically, OH SNAP! saw an opportunity and took it – with both hands. The company, which is comprised of local Wisconsinites, took the
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The world eats a lot of pickles! We can’t get enough
single-serve route with a new refrigerated brineless pickle. After pitching the idea to various industry players – and garnering positive feedback from them – the newest iteration of the company was formed.
In fact, just last year, OH SNAP! divested the sauerkraut part of the business. But what sets the brand apart from its competitors? Ryan underlines three hallmarks.
“Taste, convenience, and the right branding,” he says. “I mean, obviously, North Americans eat a lot of pickles. The world eats a lot of pickles! We can’t get enough. So, we thought if we could just put a twist on a high-consumption item (rather than, say, inventing something completely new), then that would be a ticket to success.
“But it all starts with taste,” admits Ryan. “In our mind, at least, the product we have come up with is phenomenal – and the customers agree! Taste and branding aside, convenience is the next essential element to a successful
launch. With OH SNAP! that comes from the brineless nature of the product.”
Indeed, gone are the days of having a jar full of brine sitting in the cupholder of your car or vinegar drips dotting down your shirt. Whether its pickled cucumbers, green beans, baby carrots, or snap peas, OH SNAP! offers the convenience of brineless pleasures. More recently, though, the business has diversified: there is no longer just the pickle, but a family of them.
Savoury sisters
Meet Dilly, Hottie, and Sassy. We all know Dilly; she’s a regular Joe. The classic dill pickle - also available in bite size form, Dilly Bites, which is the product line’s biggest seller. Hottie is the same, but not quite. With added capsicum, this variety offers a bit of a kick –just enough to wake you up from that midafternoon slumber. Last in the trio is Sassy,
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the best of both worlds: a small kick and a touch of sweetness. The ideal in-between, you might say.
Flavor fusion
Newly released by OH SNAP! is a range of pickled fruit. Yes, you heard that correctly. Pickled fruit! As Ryan is keen to point out, though, there are numerous benefits to the atfirst strange sounding food product.
“We have two main kinds so far, each with a variation,” he explains.
“First is our pineapple bites and its spiced equivalent, and then we have our sweet and savory apple bites plus those with a touch of heat.”
“It’s the same formula as our pickles,” adds Ryan. “Great taste, no brine, and the added benefit of a brilliant brand behind it. It will probably be a higher hill to climb in terms of adoption, sure, because people are not as familiar with pickled fruit (especially when compared to cucumbers). But given the success of our brand already, we trust that people will give them a go!”
With cinnamon, cloves, and hints of spice, there is more to these snacks than initially meets the eye. As Ryan points out, not only will OH SNAP!’s pickled fruit have a longer shelf life, but it can also prove much
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. . . not only will OH SNAP!’s pickled fruit have a longer shelf life, but it can also prove much healthier than many other sugar-laden dried fruits or canned goods with added syrup
healthier than many other sugar-laden dried fruits or canned goods with added syrup.
A result to relish
OH SNAP! hopes it will be a winner. “The last item, which we are actually just about to introduce, is really special,” hints Ryan. “It’s a unique infused cranberry snack. For this one, we take cranberries and prick them with a cherry pitter, before pressing them at a specific temperature and pressure. In turn, this will remove the tartness and bitterness from the berry.”
“When that juice has been leeched, we infuse the cranberry with natural juices (pear, apple, and so on), and this re-hydrates the cranberry, making it an amazing snack,”
he continues. “It’s healthy. We think its phenomenal! In fact, we predict it will soon be the hottest item in the fruit line.”
Looking at the year ahead, OH SNAP! intends to get its pickled fruit line off the ground (and into the hands of consumers). Though, outside of that, Ryan says the company is also launching a new product under separate entity, CLARK ST.: a fermented, fresh non-alcoholic pineapple beverage called Tepache. Beyond that, OH Snap! wants to become a household name – and if our conversation is anything to go by, it surely will. ■
www.ohsnappickles.com
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Mid-week BEERS
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Diversity, community, support and sustainability. Monday Night Brewing is making beer the right way
Beer. As one of the world’s most consumed beverages, allegedly fourth behind water, tea and coffee, and one of the oldest still drank today, having been invented before the first known written language, it’s fair to say that a large number of us enjoy a cold one. Whether it’s light and refreshing, dark and acrid, hazy and hoppy or purple and sour, in today’s world of brewing there’s an ever-growing assortment of brands and styles from which to choose.
Beer is drunk in every country in the world, in a multitude of settings. We use it to celebrate and commiserate, compliment food, establish the beginning of the weekend or simply unwind with friends. Beer drinking conjures up a sense of community, just as making it does, which is ultimately what bonded Jeff Heck, Joel Iverson, Jonathon Baker, and the rest of the Atlanta Bible Study group from which Monday Night Brewing (MNB) was born. The group first started meeting on Monday evenings in Joel’s driveway in 2006, to learn more about each other and the art of creating beer.
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The team spent five years honing their skills before first officially launching their products in 2011, which was swiftly followed by the opening of the company’s first location in west-Midtown in 2013. Today, the facility boasts a four-vessel, 30bbl brewhouse featuring an internal calandria in the kettle, 13 120bbl Fermentation Vessels (FVs), a smaller set of FVs for product development, a state-of-the-art canning line and a water treatment plant for filtration, softening and sterilization. The tap room features 20 lines as well as MNB’s Hop Hut Bar, which allows customers to try one-off experimental brews.
Tried-and-tested taste
The site is set in the midst of Atlanta’s food and arts scene and features the company’s famous neck-tie wall. When Jeff, Joel and Jonathon first started brewing together, they were all in white-collar, nine-to five jobs. As a result, MNB has adopted the slackened-off
necktie as a symbol that represents doing what you love with your day job and pursuing your dreams. Once the west-Midtown brewery was up and running, the production team started to delve into barrel-aging beer, and in 2014 won a gold medal at the Great American Beer Festival for its bourbonbarrel-aged ‘Drafty Kilt.’ This was one of the catalysts that led to the founders’ realization that they needed to invest in more space.
In 2017, MNB opened its second location, The Garage, which was intended to shift the direction back towards the collective’s experimental roots. As part of the Lee + White development along Atlanta’s Beltline trail, this facility houses different forms of technology and equipment to cater to its specific needs. It boasts four stainless steel FVs, two 40bbl foeders, a dedicated space for barrel-aging, two areas for wild and sour beer-aging, a coolship, a bottling line, and an orchard to harvest local fruits, wild yeasts and bacteria.
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The inhouse pizza restaurant uses a specialist yeast culture that contains wild yeast strains from the coolship, and the taproom stands as a community gathering space, with 20 lines that occasionally feature limited releases. The business’ core range features Dr Robot, a berry lemon sour, Taco Tuesday, a Mexican-style lager, Blind Pirate, a blood orange IPA, Death Raptor, a six percent IPA, Slap Fight, a West Coast IPA, Space Lettuce, a DIPA, and Scotch Kilt, a seven percent Scotch Ale. In the production of its easy-drinking and approachable beers, the organization practices a number of sustainable initiatives. Besides participating in the Brewers Association Sustainability Benchmarking program, which requires members to share data to help others work towards best practices, the company also sends its spent grain to local farmers to be used as animal feed, uses local vendors where possible to decrease its reliance on freight and is part of an aluminum recycling program. In terms of humanitarian work, MNB works with a large number of charities and funds to support the surrounding areas where it’s based.
Community culture
From the founders, there is a continued emphasis on community and the idea that beer is ultimately about the relationships that are formed through shared experiences, which is ingrained into the working culture. MNB takes great pride in the diversity of its teams and the resultant affect it has on the business, whilst recognizing that, unfortunately, the majority of the industry’s populace is still white males. The organization’s other core values tap into the idea of the power of cities as institutions to promote leaning, build community and define culture, alongside the importance of second chances, nobody being perfect and the healing that comes from forgiveness. As a means of education and as one of the company’s secondary passions, every new employee is gifted a
copy of Bryan Adams’ third Greatest Hits compilation ‘Best of Me’, which in time is followed by a pop-quiz. Everyone at MNB takes Bryan’s talents very seriously.
As well as the two spots in Atlanta, MNB also has tap rooms in Birmingham, AL, and Nashville, TN. Looking to the future, Spring 2023, will see the opening of its fifth location in Charlotte, NC. Sitting on almost an acre of land, Garden Co. is a converted mechanic’s shop that covers 8000 square feet. Its interior offers customers a secret parlor for pool, an airy loft space and a cozy lounge, whilst its outdoor area features firepits and games, set within lush landscaping and boasting plenty of seating. MNB is looking forward to opening the doors to South End’s most inviting communal space yet. ■
www.mondaynightbrewing.com
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Welcome
HOME
Casino Del Sol is more than a resort in Arizona; it is the birthplace of the tribe that established it
In the heart of Tucson, lies Casino Del Sol, and at the heart of Casino Del Sol, is the Pascua Yaqui Tribe; a native group that has been rooted in Arizona for centuries. “There are five districts within the community where our tribal members live. One is based outside of Phoenix, and the other four are in Tucson,” shares Enrique Alcantar. Enrique, a member of the Pascua Yaqui Tribe, started off as an Executive Sous Chef at Casino Del Sol, helping to train employees to
meet high industry standards. He now serves as the Executive Director of Food & Beverage. Casino Del Sol began as a bingo hall shortly after Arizona regulations legalized gambling. What started in a tent, soon became a bricks-and-mortar establishment, that evolved into the casino as it is today. As a result, the development of the Pascua Yaqui community followed suit. “The Tribe was quickly able to find the revenue to develop the infrastructure that built a fire
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Director of Food &
and police department and everything ewlse necessary to operate as a federally recognized tribe,” says Enrique.
The casino and resort were built in three phases. The process began with the gaming floor, which hosted a few food outlets, and from there, the hotel expanded to include a banquet and convention space. Nine years later, a second tower was built. “We have approximately 215 rooms, 11 venues, and 16 different restaurants,” says Enrique. “There’s a
fusion of Japanese and Chinese, called Ume, and Bellissimo, a northern Italian restaurant, serving a selection of fresh pastas. There are three satellite grab-and-goes and a donut bar, where the pastry team makes all of the confectionary items. My favorite is the coffee shop. We procure our coffee beans from tribes around our area. Then we have a sandwich shop and street deli, where we offer fresh breads and pizzas. Finally, we have our flagship restaurant, the PY Steakhouse.
▶ Enrique Alcantar, Executive
Beverage
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Casino Del Sol
Named after our Tribe, it continues to win the Wine Spectator award, with a lot of locally sourced food. Even within catering, there are a couple of menus offering food sourced within 200 miles of our location,” explains Enrique.
Ava Amphitheater, the Casino’s concert venue, seats 5000 and provides green rooms for performing artists. “Lastly,” he continues, “we operate a 24/7 service station, which is about half a mile from the casino.”
Winning service
According to Enrique, what makes Casino Del Sol unique is the pride that the Tribal members and employees have gained from working there. “I think what we offer is among the best in town. The Casino continues to win accolades for our services, from the hotel and the grounds, to the golf course and concert venue. Our executive chef has won recognition as Chef of the
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Year, and I believe that the difference comes down to our employees, our training, and how we instill pride in our employees to go above and beyond for our visitors.”
Gambling laws for tribe-owned states and reservations are slightly different to other states, which is why Casino Del Sol has incorporated the best practices to offer a safe and fun experience. “We are a little more restricted in what we can offer to the public. We are regulated by the state when it comes to the games that are permitted inside our facilities. For example, in Oklahoma, every type of gaming facility is regulated by different standards, which is why we do our best to mirror the image of Vegas,” he says.
Enrique explains that Casino Del Sol is oriented around advocating for the enrichment of the Pascua Yaqui community. The Tribe is doing an impressive amount of work with the University of Arizona to create a micro-campus on the reservations for tribal members to get a degree. “We also partner with Pima Community College to help our employees in the food and beverage department and other areas in the casino attain qualifications. In addition to a healthcare and dental offering, we recently opened our doors for long-term and elderly care for senior tribe members, which was very exciting,” shares Enrique.
A foundation for the future
The Tribe cares for its members and wants to build a future for younger generations, by providing a stable foundation for young people to work at the casino or in one of the departments within the Tribe. “Tribal members have the option to start a family and stay on the reservation if they so choose,” Enrique explains. “We also offer assistance for those looking to leave and live in town as an alternative.”
Casino Del Sol strives to be the best in the state. For Enrique, this includes training and developing staff members. “We need
to look to the future. My job is to help the team look beyond today to understand the lasting impact their work can have. We believe in laying strong foundations to pave the path to a successful future, which means doing today’s job well. I can’t really guarantee that in three years we are going to be number one, but, for me, the aim is to have a single goal and message for all of us to work towards,” concludes Enrique. ■
www.casinodelsol.com
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SNACKING POWERHOUSE
Supply chain agility and a legacy of goodness
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Chocolate is a truly special treat. One that becomes our first love as children, and as we grow into adults, we use to celebrate, commiserate or express affection. We can’t be sure if there is a link between romance and The Hershey Company’s (Hershey’s) legendary kiss trademark, but what we do know is there was a lot of love and compassion behind the actions of Milton Hershey, the business’ founder.
The Hershey
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Company
Milton Hershey was ahead of his time in many ways. He thought about his people, his business, the community and the wider world and left a great legacy that carries on today “
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▼ Tricia Brannigan Chief Procurement Officer
Milton Hershey established the chocolate company in 1894 as his third attempt at pursuing his passion for confectionery. By 1900, he had sold the first Hershey’s bar that we know and love today. The company has grown both organically and through acquisitions that have resulted in a portfolio of brands spanning sweet and salty. Whether it’s a Rolo that tempts your sweet tooth, a Kit Kat that calls the time for a break, SkinnyPop
or newly acquired Dot’s Pretzels that tickle your tastebuds, Hershey has something for everyone and for every snacking occasion. This expanded portfolio, and supply chain, positions Hershey to make a broad impact rooted in the company and its founder’s legacy.
Great legacy
During the Great Depression, Milton Hershey conducted the Great Building Campaign to develop a park, hotel, theater and a sports arena to provide employment for over 600 construction workers. He believed that business was a matter of service and focused a great deal of time and money on creating a company and a community that would be beneficial to all. Driven by compassion, selflessness and purpose, Hershey instilled a rich ethos of accountability and values into the fabric of the organization, which still inspires its employees today.
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The Hershey
“Milton Hershey was ahead of his time in many ways,” opens Tricia Brannigan, Chief Procurement Officer. “He thought about his people, his business, the community and the wider world and left a great legacy that carries on today. One that focuses on caring for people, communities and particularly children and that continues to shape our culture and priorities as a business today.”
Brannigan has been with Hershey for nine years and leads all aspects of procurement, including commodities, raw materials,
packaging and indirect sourcing. Previously at Hershey, she was responsible for managing essential agricultural materials such as sugar, dairy, corn, sweetener and nuts. She joined the procurement team with a background in research and development, engineering and procurement at Kraft Foods, Dean Foods, White Wave and Dawn Foods.
“From the beginning, one of my key objectives has been to continuously and strategically raise the bar and take our teams and the company to the next level. And it all starts with people, talent and abilities, which is where I spend my time and energy.”
Hershey’s three-pronged procurement strategy focuses on people and partnerships, collaborative planning and agile specifications to absorb and deflect risk, ensuring operational excellence and maintaining great customer service. This strategy proved especially important in the volatile market that all supply chains have experienced over the past few years.
In drawing upon its culture and values and its purpose of making more moments of goodness for consumers, Hershey works to build and maintain strong relationships with its suppliers; relationships that go beyond simple connections to encompass collaborative planning and delivery. High integrity, prioritization and transparency are the hallmarks of its successful supplier relationships and business results.
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“We want to work with partners who not only share our values but also place the same emphasis on food safety, high quality and performance, and consumer care. A relationship of trust and transparency creates an environment in which you can push one another with new opportunities and options catered to the other party’s traits and visible capabilities.”
Stakeholder value
One area where Hershey’s focus on people and partnerships shines through is its ESG strategy, and particularly DEI. The candy and snack maker is well known for its leading ratings and rankings in industry benchmarks. In 2022, it was positioned at number six on DiversityInc’s Top 50 Companies for Diversity list, and particularly so for its work in gender equity and representation, both within its workforce and the communities in which it operates. An enhanced supplier diversity strategy is just one example of the company’s DEI efforts.
“We are constantly seeking new ways in which we can engage and promote under-represented members of the community through business to facilitate greater innovation and diversity within the industry. By 2030, it’s our aim to quadruple our supplier diversity spend, and we are in the process of working with external organizations to develop our best practices, with which we can educate our teams,” Brannigan explained.
For companies like Hershey that have a high household penetration and global brand reach, having a workforce and supply chain that reflects its consumer base is a key component of its success. Hershey sees itself as in a unique position to make an impact due to the size and scope of its value chain.
As such, both Hershey and its suppliers can offer greater value to stakeholders, indirectly fueling the value and innovation that can be delivered to the consumer.
“We are engaging diverse marketing and talent agencies, which extends the initiative further across our supply chain than just raw materials and packaging. Our company vision is to become a leading snacking powerhouse,” Brannigan enthuses. “Given the growth trajectory of the business, we had to develop new practices to deliver 2022’s outcomes. As we entered the year, I worked closely with our supply chain and manufacturing teams to deliver our agile supply work stream. It’s focused on predicting risk and leveraging these insights to quickly adjust our specifications, deliveries or pack types as they deem necessary, while exceeding our quality and sustainability expectations.”
Based on the company’s 2022 earnings results announced in early February 2023, the approach is working. Hershey announced 2022 as one of its strongest years in history, including exceeding $10 billion in net sales despite the environment of record inflation and unprecedented supply chain disruptions. Investments in its powerhouse brands and additional capacity and capabilities are expected to deliver again in 2023 as Hershey works to keep up with the ever-growing consumer demand for the goodness of the company’s wide-ranging snacking portfolio. ■
www.thehersheycompany.com
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Tour at SACO
Loaf thy neighbor
Soreen, the champion of feel-good nutrition, is on a mission to feed the nation responsibly
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Sorensen founded Soreen in 1938. The company is famous for its malt loaf, which was as popular from its initial introduction as it is today. Despite being acquired by a number of different owners over the years: Imperial Bakeries, Warburtons, and, currently, the Samworth Brothers Group, the company’s soft and sticky mainstay has always been proudly baked in Manchester, UK. In considering the bustling trade and industrialization of the northwest in the 1930s, it’s no surprise that the delicious, energy-filled and affordable snack, grew to such huge popularity. Although it may have been Warburtons that was responsible for the company’s nationwide growth, it’s Samworth Brothers’ strategies that are bringing it into the future.
ADanish Entrepreneur by the name of John Rahbek
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The current bakery is nestled away in Trafford Park and operated by a team of 160 employees. The production process is traditionally organic, mirrored by many other bakeries up and down the country. The site operates round-the-clock, six days per week, producing around four million loaves of differing sizes and flavors. The dough is mixed, deposited into tins and baked in the oven, before being dispatched. This no-nonsense approach to healthy snack production is one of the company’s major unique selling points against its competitors – with short best-before dates, due to a lack of preservatives, unlike the altered alternatives that boast up to a year of apparent freshness.
Lunchbox loaves
The original product itself is so good, that one of its largest innovations over the last eight decades has simply been related to its size. As Mark Simester, Managing Director, details further: “Up until 2012, the large malt loaves had made up the vast majority of the business, but that year, we released the lunchbox loaves product. While I was growing up, malt loaf was considered to be more of a treat food, a slice of which to be enjoyed with a tea or coffee mid-afternoon. When I joined as MD in 2016, people’s attitudes towards food had already begun to change. People are eating far fewer sugarfueled treat foods these days, and there’s been a nationwide boom in coffee shops, removing that traditional coffee and cake occasion from the retail sector. However, also by 2016, it was becoming increasingly obvious that the combination of our product, and in the new size we
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had released a few years prior, was going to be enormous for Soreen. At this point, the bars only accounted for 15 percent of the business, fast-forward to today and they make up over half our business.
“Our bakery looks completely different as a result, it now features a highspeed wrapping machine and an automated system, for specifically processing the lunchbox loaves,” he continues. “We’ve seen spectacular growth, but there’s still a lot more we want to achieve. We want every household in the UK to know what a perfectly balanced and healthy snack malt loaf is. We’re finding that once people are aware, it instantly becomes a staple on their shopping list. The growth of the lunchbox loaves has honed our new strategy:
to position the entire business as a healthy snack company. We haven’t changed the product whatsoever; we’ve just shifted our focus onto the nutritional values that it already held – which everyone is amazed by. Because the lunchbox loaves are the perfect size for an on-thego snack, with only 90 calories, 0.8g of fat and 6.1g of sugar, they are HFSS compliant and perfect for anybody’s lunchbox, regardless of age.”
The business has been associated with Public Health England (PHE) for over five years now, partially due to the vested interest PHE has in consumers opting for malt loaf over chocolate or biscuits. Soreen takes great pride in adopting the full, colorized version of the traffic light system, unlike many of
Congratulations Soreen on your continued growth! So proud to part of the journey www.firmenich.com “
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We very much see ourselves as champions of feelgood nutrition
the huge multinational snack producers. Mark believes this to be the right thing to do and ultimately the responsibility of all producers, not consumers; to educate the nation on what are the healthier choices. “We very much see ourselves as champions of feel-good nutrition. We are keen for Soreen to be more than just a business, more than just sales and profit targets. We are exceptionally focused on our role in the community, both locally and nationwide, and have a platform to help improve the nation’s diet.
“The company operates on three beliefs,” he continues. “The first is affordability, as everyone should be able to afford healthy, nutritious snacks. Take protein bars for example, retailing at £3 each, that kind of price range is too unrealistic for low-income families, which is why we’re super proud of our mainstream pricing. The next is that, as I mentioned before, snack businesses should make it as easy as possible for shoppers to make the correct choices and finally, the third, is that no child should go hungry. We may not be able to protect everyone, but we try to do as much as we can. Among our charitable relationships, we partner with a local Manchester foodbank called The Bread and Butter Thing. I believe they
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initially approached us around four years ago, but we have really stepped up over the last 12 months. We donate both products and the time of our team. In fact, I believe there’s a Soreen team over there, helping out today.”
Business as a force for good
This support within the community extends to a large range of holiday hunger clubs, out-of-term-time sports activities and general charities. In solidification of its commitment to helping others, Soreen is currently working towards becoming a B Corporation, which has a number of other implications too. Under this, the business is in the process of drawing up the public declaration of its sustainability initiatives, which have already been bolstered by the policies of the Samworth Brothers Group. The company is measuring its combined energy usage and researching a number of different reduction techniques, as well as decreasing its packed-plastic and overall impact on the environment through its carbon footprint.
Soreen’s attitude towards people is practiced internally as well. As Mark states: “People are the business, which is the basis of our culture. We are extremely fortunate to have lots of colleagues who have been with us for over ten years and along for the ride during this period of such monumental growth. We give our teams a voice through
regular surveys, committees and multifunctional work groups for hot topics, and generally spend a lot of time ensuring the culture is as positive as it can be. We have such a brilliant team who work so incredibly hard; I’d like to take the opportunity to congratulate them on the success that they have collectively achieved over the last decade, especially in terms of the increases in output and diversification they have seen us through. They are the ones who have done it, and I hope they continue to enjoy it going forwards. Looking that way, to the future, we want to be the most famous, healthy snack in the UK. We want every parent in the country to know about our nutritional values, so that we can have as big an impact as possible on the nation’s diet.” ■
www.soreen.com
Taura Natural Ingredients
Taura Natural Ingredients (Taura) has been a supply and innovation partner to Soreen for more than ten years. Our fruit pieces offer a way to include all the natural goodness of fruit into Soreen’s fruit loaves and mini loaves, whilst also contributing to their signature taste and texture. Taura fruit pieces are made using a unique process to gently remove almost all the water from a blend of fruit purees and juices, which combined with the natural flavour technology delivered by other entities within the IFF Group results in a tasty healthy ingredient.
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From a bakery to a frozen pizza giant, Nick Fallucca details the secrets to Palermo’s Pizza’s success
PRIDE PIZZA AND G
aspare Jack Fallucca and his wife emigrated to the United States from Italy during the 1950s. In 1964, they started Palermo’s in the form of a humble bakery on Milwaukee’s East Side that served traditional Sicilian food. By 1969, they were ready to expand the business into their first ever restaurant, which Gaspare built-out himself. For the last five decades since its inception, Palermo’s Pizza has grown into one of the largest frozen pizza producers in the US – a direct result of the inter-generationally inherited passion for good food, made from the best ingredients.
According to his grandson, Nick Fallucca, Chief Product & Innovation Officer, Gaspare’s approach to conducting business was instilled within the bare bones of the company. He states: “The three fundamental foundations of the Palermo’s culture are simple: to provide really great customer service, cook delicious food, and treat employees well. They transpired from my grandfather’s early
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Palermo’s Pizza
beginnings, and are largely responsible for the company’s great success today.”
“We didn’t start manufacturing frozen pizzas until 1979; a local grocery store was actually the catalyst,” he continues. “The owner had approached my grandfather with a frozen, French bread pizza and said: ‘Hey, Jack you’ve got to try this.’ He obviously protested, saying ‘are you kidding me? Why would I want to try a frozen pizza – I make my own!’ But this was their point, they wanted him to start making Palermo’s Pizzas available in a frozen format for grocery stores. So, in a true grassroots fashion, he built the first manufacturing facility out of an old house on the East Side whilst, with the pizzas, he was still making his own sausage by hand and chopping his own vegetables. There’s a theme to
this in-house innovation in the company history, but it wasn’t until the late 1980s that we really got our first big break.”
Pizza perfection
In 1989, Safeway collaborated with Palermo’s on the development of the first rising crust pizza to hit the market. Palermo’s produced this new pizza on behalf of Safeway’s label, which set the tone for a lot of the work that would carry the company through until the early nineties – other than a few personally branded products for smaller, local grocery stores. In 2003 Palermo’s launched Palermo’s Primo Thin through Costco, the first premium, ultra-thin pizza to hit the US market, and it was a huge success. From there Palermo’s moved into its new facility in 2006, where the company has remained ever since.
Palermo Villa Inc. Company Headquarters and Manufacturing Facility, Milwaukee WI
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“In terms of our theme of innovation, I’d be the first to admit that things don’t always go as we hope,” says Nick. “Back in 2007, we attempted to launch the Hearth Italia, a contemporary pizza for the 2020s – we incorporated our Italian stone-fired oven for the perfect base and covered it in pesto, cherry tomatoes, kalamata olives and feta. But the market back then just wasn’t ready; it failed completely. It wasn’t until 2013 that we really started to grow as a national brand, when we released Screamin’ Sicilian, which is now our most popular product. It coincided with the craft beer craze and we figured, why not make a craft pizza? We spent a lot of time sourcing the best ingredients we possibly could, frozen pizza or not, and used it as an opportunity to pay homage to my grandfather who had passed away the year prior.”
“Palermo’s is a brand that’s suitable for the whole family, but we also have our Connie’s brand. Purchased in 2017, Connie’s has a similar story: it was founded by an
Italian family in the 1960s in Chicago, so it’s all based around Chicago’s restaurant culture and its thin crust pizzas. It’s all natural and does extremely well in the Mid-West. There’s also Urban Pie, which fits in more with the premium, craft-style pizza market and focuses its attention on flavor exploration –we use it as our opportunity to experiment further with more unique ingredients.”
People and passion
“Recently, we launched our stuffed crust pizza and a breadstick-style pizza, under the Screamin’ Sicilian brand, and also our Surfer Boy Pizza in partnership with Netflix and Walmart.” He explains: “Surfer Boy Pizza has been one of the fastest growing products that we have ever released – in terms of velocity, it has done four times better than we had previously anticipated, with the largest retailer in the country. All in all, we put a lot of energy into the innovation of our products. We’re continuously searching for both the products that the market currently
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wants, and the ones that it is not yet aware that it wants – it’s like baseball, if you don’t swing, you’re not going to hit the ball.”
Palermo’s employs two internal approaches to product development. First the research and development and marketing teams working together to create a list of 50 or so concepts, that are consumer tested. The list is narrowed down to the top ten, which are then tested further before being trialed. The other approach grows from an idea or suggestion made by an employee or owner that the company will develop and test. Externally, the company also works with customers to bring their ideas to life – of which they may request a full launch. Regardless of the outcome of any developed trials, Nick cites them all as providing invaluable knowledge to help with future development and growth.
“We work with data-supported decisions and trend analyses, not just our own opinions,” he explains. “We’re also happy to take a chance and fail fast, before picking ourselves up and moving onward – whether it’s an idea of ours that a retailer is running with or a suggestion from a customer that we’re willing to give a go. Our supply chain relationships mean a lot to us, something that was highlighted during the pandemic. We saw our demand increase enormously, given people were eating at home instead of at their favorite pizza restaurant. We actually grew during the pandemic, which we couldn’t have done without the strong partnerships that we have with our customers. We were able to support them in the same way our key suppliers were able to support us.”
At the heart of this constant innovation comes the obvious factors of finance and technology, but Nick says that Palermo’s people are what really sets it apart from the competition: “If you’ve got a frozen pizza manufacturing plant, there’s no tangible reason why you can’t do what we are
doing. If you’ve got money, you can buy the state-of-the-art technology with which we operate. What you don’t have is our people. We do a better job at creating our product, manufacturing it and getting it sold and distributed – because we have that special attention to detail. By ‘we,’ I’m saying it’s our people, it’s our drive, it’s our passion and innovation – It really just comes down to our team players at Palermo’s. Recently we were certified by Great Place to Work®, with 73 percent of our employees saying that Palermo’s is a great place to work. The average is 57 percent. That’s a testament for us. Great people make great pizza,” he concludes. A mentality that ties in beautifully with the ethics with which his grandfather started the business half a century ago. ■
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www.palermospizza.com
FROM THE TREE
In proving that the apple doesn’t fall far from the tree, Brothers Drinks has continued over 300 years of family heritage
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It’s incredibly rare for a family trade to make it past five or ten generations, let alone 14. This is where the ancestry behind Brothers Drinks Co. Ltd (Brothers) is currently at. Matthew, Jonathan, Francis and Daniel are the four Showering brothers who founded the company in 1992. In maintaining the family tradition of cider-making, which has been its mainstay of income since 1658, they tapped into the innovative spirit of their grandparents’ generation. This cohort was responsible for the creation of Britain’s best-known sparkling perry, Babycham. This early sparkling perry brand was launched in the 1950s and has recently been brought back into the Showering family, just last year. During the last 30 years, Brothers has grown far and wide from its base in
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Glastonbury Festival offered Brothers space for a bar near the Jazz World Stage.
Shepton Mallet, UK, to being distributed to over 20 countries around the world. The self-proclaimed trailblazers of fruit cider adopt an innovative approach to product development, in striving to produce a number of flavors that think outside the bottle.
In 1995, Michael Eavis of Glastonbury Festival offered Brothers space for a bar near the Jazz World Stage, which has changed to the West Holts Stage in recent years. It was here that the company premiered the sale of its pear cider, a product which quickly became synonymous with the festival season and, for many festival-goers, the taste of the summer. The market exposure that this opportunity gave Brothers, and its products, was instrumental in building up its initial following, and ultimately
led to a far larger scale of production. After years of being asked by the public where they could purchase Brothers Cider when the festival was over, the company decided it was time to release its ciders to pubs and supermarkets, which finally happened in 2005. This relationship has remained prominent to this day; with the company’s Festival Apple variety being named as the official cider sponsor of the 50th edition of the festival earlier this year. Otherwise, its products can be found at over 100 other UK music festivals, as the brand has well and truly kept to its roots.
Flavor innovators
As one of the fastest growing cider brands in the market, it’s no surprise that Brothers has also been named the official Mulled Cider for London’s Hyde Park Winter Wonderland, for the second year running. This festive campaign runs in tandem with
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an annual drive behind its famous Winter Warmer; a blend of its toffee apple cider, mixed with rum and winter spices, which is often sold through pop up bars around the UK at Christmas time. The Toffee Apple cider is from Brothers portfolio of curious flavors, which, the company states, set it apart from the other top five fruit cider brands. This range extends to a wide variety of other interesting combinations, including Cherry Bakewell, Rhubarb and Custard, Marshmallow and Strawberries and Cream ciders. These sit beside the more regular options from the Brothers offering, of Strawberry and Lime, Wild Fruit, Cloudy Lemon, Festival Apple and Red Apple ciders. In the constant search for new and exciting flavor combinations, Brothers also runs an entire campaign committed to different ways in which consumers can blend their go-to style with other drinks, and even food. Its website features a dedicated
blog, brimming with recipe ideas and inspiration for a multitude of secondary ways that its ciders can be enjoyed.
Improved facilities
Besides producing its own product lines, Brothers is an industry leading provider of both contract manufacturing and bottling services for other companies, such as WKD and Fever Tree. This side of the business sees an average annual output of 140 million bottles alone, before taking cans, kegs and PET products into consideration. It has recently undertaken a major refurbishment project, in which the business has invested in new, advanced product lines, reduced its energy usage and improved its facilities’ lighting. It’s already reporting savings of 65 percent, in terms of its energy consumption, and a decrease of 178 tons of CO2 emissions. Elsewhere, the company is utilizing its waste by turning it into CO2 to power the factory.
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Brothers
In 2016, Brothers stepped in and purchased the Shepton Mallet Cider Mill from the Irish drinks giant C and C group PLC, in which it still resides today. The plant had originally been owned by the Showering family between the 1840s and the 1960s; it was even partially built by the brothers’ grandfather. Through buying it back, the company managed to save the jobs of 18 production staff and six managers. Despite already owning facilities within the plant, the purchase provided Brothers with a great deal of space to expand its operations. Matthew Showering, joint Managing Director, was quoted as saying: “You could make a quarter of the country’s cider at that place; it’s huge!”
Whether measured in growth, industry exposure, international reach or product development, the resounding bottom line is that Brothers is winning. With its national summer and Halloween campaigns this year reaching 45 million people across eight different cities, it’s fair to say that the brothers have continued on the path that their forefathers laid before them. The apple is still nestled directly below the tree. ■
www.brotherscider.co.uk
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Bread of life
How Nardelli’s 100 years of history has helped create a family franchise of food heaven
Founded in 1914 by Joseph, Anthony and Fred, today, the third generation of the Nardelli family continues to oversee many of the business’ locations, and is still heavily involved in bringing the brand into the franchise arena. Rich in Italian heritage and old-world family recipes, Nardelli’s Grinder Shoppe (Nardelli’s) boasts regional brand recognition, thanks to its proprietary recipes, and superior customer satisfaction. “Nardelli’s customers range from those popping out for a quick, wholesome lunch to families heading out to share sandwiches at dinnertime and enjoy the unique Italian deli experience we offer,” explains Marco Nardelli, CEO. “Half of our customers choose from our cold offering. We have some great imported meats, the type of traditional deli products on which the Italian grinder is based. We also have some terrific chicken and meatball products that form the basis of our hot offering. So, whether it’s a chicken or meatball parmesan, or a grilled chicken breast, these are the types of sandwiches that have made us famous, and are why people return time and time again. A Nardelli’s Italian grinder provides a unique flavor experience. So much so, we have been rated number one in the State of Connecticut, are recognized nationally, and are repeatedly named one of the ‘Best Sandwich Shops in the Nation’ by the Travel Channel.”
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As Anthony Nardelli, President, enthuses: “We have a signature marinade of vegetables with our proprietary, red-hot dressing. The unique flavor, fresh ingredients and daily-baked bread combine to create a delicious taste sensation that is hugely popular. Not only that, it takes two hands to handle one of our sandwiches. The grinder is stuffed with terrific ingredients, and really does require a big bite. At ten inches long and four or so inches wide, it almost looks like a football! Of course, whatever goes between the bread is of superior quality too.”
Popular trends
From the Italian-American slang for dockworker to the chewiness of the sandwich itself, while the origin of the term ‘grinder’ might be in question, there is no disputing its adaptability and perennial popularity. The traditional fillings remain firm favorites, but the brand is keen to evolve and develop in line with its customers’ tastes. As Diana Nardelli-Troiano, third sibling and COO, explains: “We recognize that part of the population may be vegetarian or looking for nonmeat options. As such, our menu caters to that, and even includes some plantbased meat substitutes, imported from Italy. We’ve incorporated these products into a sandwich that tastes like a traditional grinder to provide an authentic experience, but without the meat. We also offer gluten-free and vegan sandwiches, and this sector of our product offering has actually increased from three to five percent.”
Alongside the grinder, the Nardelli’s menu also includes a large range of hot and cold side dishes as well as the typical side complements to a
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grinder, of coleslaw, potato and macaroni salads. All are crafted to an in-house recipe and can accompany delicious, freshly-made tuna fish or chicken salads. Additionally, customers can request add-ons. If their choice of grinder isn’t already hot or loaded enough, an assistant will always be happy to heap on fresh mozzarella, extra bacon bites or hot peppers to ensure a customized taste sensation. To top it off, customers can choose from a line of tasty sweet treats too.
Flexible approach
From daily and monthly specials to limited time offers, such as the St Patrick’s Day, corned-beef grinder and the Thanksgiving Gobbler, Nardelli’s likes to keep its customers informed. Social media, and notifications via the app, help to drive the message, and keep customers informed when the craving hits. The business has a loyal following and a large database of over 25,000 customers who react well and respond to product pushes.
Looking back over the past couple of years, Anthony, Diana and Marco concur that it is crucial to be flexible and to pivot in line with the changing retail landscape. Anthony explains: “While one challenge has been staffing issues, which was industry-wide, another has been the way we do business. In the face of the pandemic, we had to pivot to suit customer requirements, and online ordering became an integral part of our product offering. What once accounted for around four percent of our business, is now upwards of 20 percent. Ease of delivery is the new norm. Of course, while we’re able to return to business as usual, we’ve found that a certain segment of our customer base still prefers home delivery.”
As Lowell Farkas, Chief Business InHouse Consultant, adds: “We have had to adjust to ensure we handle this new way of working efficiently, and especially so at lunchtimes, as there is a relatively brief
window. We need to be able to manage the throughput quickly to meet demand.”
Growing footprint
With 15 locations currently, and at least three more opening in 2023, Nardelli’s does not show signs of slowing down any time soon. As Marco expounds: “Over the next three-to-five years, we hope to have 50 locations. Our goal is to launch an increasing number, year-on-year. We constantly try to improve our menu in line with customer feedback and demand. We listen to our customers, as is evident in our vegan and plant-based offering. This introduction to our product line was as a direct result of customer feedback. We’ve risen to demand, and it has become very successful. We keep a close eye on the data and respond accordingly. We also strive to be more tech savvy, both in our operations and with our customers. The world is better connected, and we need to keep up. We are currently revamping our app to incorporate easier ordering, and a robust loyalty program. We want to make sure it is as user-friendly as possible. Our loyalty program will launch in the first quarter of 2023 with the aim of gaining a greater customer base.”
Currently Connecticut-centric, 2023 will witness Nardelli’s branching out further afield to grow its footprint. As Anthony concludes: “We are going out of state next year to Massachusetts. We are also going into Westchester County in New York. A franchisee recently signed a development agreement, and will be opening another four locations in the next five years.”
From an award-winning grinder sandwich to a business model, honed to perfection over generations, the Nardelli’s proven concept boasts all the ingredients needed for success.
“If not for the great efforts of our family of franchisees, we wouldn’t have the opportunity to be featured in this magazine.” ■
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people’s people Our
Whether internally or externally, people are the Wen JAI Restaurant Group’s real day-to-day
▼ Jhonny Mercado
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Jhonny Mercado, President and CEO, and his business partner Andres Garcia, founded JAI International Investment and acquired their first three Wendy’s restaurants in 2007. By 2014, this portfolio had grown to 63 establishments; as years passed, they reached a total of over 225 locations by 2019. Come 2021, Jhonny and Andres sold some of the restaurants and established Wen JAI Restaurant Group (Wen JAI), launching with a total of 74 units – to which an extra ten have recently been added.
Jhonny’s achievements extend further than the fast-food industry. He uses the immense platform that he and Andres have built in a multitude of ways to help the lives of those who are less fortunate. He sits on the board of directors of the Dave Thomas Foundation for Adoption, a charity that has been partnered with Wendy’s for 30 years and supports children living in foster care. Wendy’s runs two campaigns for the charity every year, however since 2020, Wen JAI has incorporated a third fundraiser
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within its franchises, which has thus far raised an additional $200,000 annually.
“The foundation has found over 12,000 homes for children during the last 20 years, but I am involved in a number of other charitable causes too,” Jhonny details further. “In 2018, we raised $343,000 for the Lymphoma society over a period of around ten weeks – it was great! We also support a number of smaller causes within the communities, such as high schools and sports teams, and I am a board member at the Baptist Hospital in south Florida too.”
Giving back
This charitable nature is also applied internally, when an employee is in need Wen JAI will step in and help wherever it can, as Jhonny continues: “One of my managers came to me with a serious problem, she was struggling to afford a kidney transplant. So, I posed it to my head-office team to come up with a solution. We decided to run a program in which we bought 10,000 bracelets to sell for $1 each, to raise money for her, and we managed to sell over 12,000! It felt amazing to be able to give her a cheque for $13,000 – she was super happy as were her family, it
all goes back to supporting your team in any way that you can, it’s non-negotiable. This is very important to us, it’s part of our culture to give back to the community and our people.”
People first
Wen JAI operates with a people-first culture that focuses on taking care of employees, so that they can take care of customers. Staff retention and motivation are cornerstones to the success of the company, so it hosts a range of employee appreciation weeks, competitions and promotions. In creating an environment where everybody feels happy and comfortable, it also strives to get them the recognition they deserve. Managers are encouraged to practice open communication with their teams and to organize celebrations for birthdays, employee anniversaries or graduations.
“People come first, and we are our people’s people,” Jhonny elaborates. “This is what I want to be at the forefront of my employees’ minds when they step
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into my office. Over the last few months, we have been discussing how to improve the bonus program for our field staff. We care about their feedback to set our goals and incentives for the operators. But I leave it to those who work closer to the teams it will impact, the ones who have a greater idea of targets that are more realistic and likely to motivate everyone. It’s not created for me or my executives, so it shouldn’t be created by us.
“This is our focus, we seek out people with commitment who enjoy working for us and are happy to come to work. Retention, retention, retention is key. I never want to lose anyone whether it’s at office level or in the field, so we are always striving for more commitment than complaints in our staff. Even if we fail and somebody decides to leave, we interview them on the way out, so we can work on ourselves for the future. This ties in with the instore renovations that we are conducting. We are obviously looking to improve facilities for our customers, but we also view this as a benefit for our ‘internal customers’ – our employees. New equipment, air conditioning units, furniture and landscaping all give people a sense of pride in their surroundings, and a work environment in which they can thrive.”
As part of the Wendy’s Image Activation initiative, Wen JAI has been working through renovating and investing in its locations – to date, it’s almost 90 percent complete. The main goals have been to update the restrooms and dining areas, to make the spaces more comfortable whilst complying with ADA guidelines, and the installation of new equipment. The
implementation of the new DSG2 double-sided grills will allow the restaurant’s short order chefs to cook juicier, tastier patties in less time. The traditional Wendy’s menu consisting of Dave’s burger, baked potatoes and hot and crispy fries can now be paired with a larger number of beverages, thanks to the new Coca-Cola Freestyle machines. In terms of diversifying further, rather than focusing on current branches, Wen Jai’s goal is to hit 150 locations within the next three years, and to be on track for 300 in the next five.
Award winning
During Jhonny’s time with Wendy’s, his many enterprises have received a number of accolades: in 2013, JAI International Investment was presented with the
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. . . Retention, retention, retention is key
Exceptional Employer Award by the Florida Governor. In 2021, Wen JAI, was recognized as the Best Operator of the Year by Wendy’s Corporate and given the Culture at Work award by Always Designing for People (ADP). A more recent
addition to the trophy cabinet came in the form of the Wendy’s Monument award in August 2022. Good things happen to good people; and it would appear that Wen JAI’s charitable acts and considerations towards its staff, running in correlation with the group’s success and growth, are standing as testament to this. It is truly reassuring to see a franchisee of such a size obtaining so many achievements, by putting people, not just its own team members, but all people, first. Jhonny’s vision is a simple one, as he concludes: “I wish to build a strong company that is a legacy not simply for my family, but also for our employees and the communities where we serve.” ■
www.wenjairg.com
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