C O M P A N Y O V E R V I E W
Confectionary Holding
Continuously Improving Operations Written by: Sam Jermy Produced by: Craig Daniels
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The Spanish sweet and chocolate producer has a near 300-year history, but is still meticulously enhancing supply chain operations while developing new products Factory 1 and Central Offices in Jijona Spain
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onfectionary Holding is one of the oldest Spanish companies in existence today, but is experiencing an important evolution stage and is looking forward to increasing its global market penetration. The organisation has a presence in more than 50 countries and many layers of history, having been formed in 1725, and it now takes the form of a conglomerate comprised of seven companies. Two of these manage all manufacturing and commercialising activities; two manage the raw materials such as almonds; another oversees the management of the brands
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and its evolution and the last two in the group manage the financial aspects and real estate assets such as factory buildings. Andrés Cortijos, Deputy General Manager & Value Chain Director, said: “Confectionary Holding is one of the most globally prominent Spanish groups in the confectionery industry. We are heavily involved in the Spanish and South American industry and our main markets are Europe, South America and the United States, with a presence in Asia and Australia too. “We are in an important growth phase, one of our most important projects is
Alcaudete Factory chocolates
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From the finest ingredients, Delightful packaging Nekicesa Packaging has 65 years of experience in the folding carton sector and we constantly strive to deliver the best quality, a high level performance of service and an outstanding capacity of innovation to meet the most demanding client needs.
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organising corporate online sales so we are building a corporate website. “We produce an internal product portfolio showcasing Turron, a sweet made of almonds. We also produce chocolate bars, marzipans, bon-bons, nougats and traditional Spanish sweets that we commercialise mainly at Christmas; it is a wide portfolio.” Confectionary Holding’s facilities are comprised of two factories in Spain; one in Alicante where it produces the products based on almonds and another one in the south of Spain, Alcaudete (Jaén), where it produces chocolate and other Spanish specialities. As part of its vertical integration process it also has facilities in Chile and Morocco where it sources raw materials such as the almonds.
SUPPLIER PROFILE
NEKICESA PACKAGING SL
Nekicesa Packaging is a graphic arts company that specializes in folding boxes, leaflets and adhesive labels. The company has operated in the packaging sector since 1965 and has a global capacity of 1.2 billion units, supplying into multinational groups all over Europe. Innovation is our company’s philosophy and we constantly strive to develop our activity through our innovation management team, which provides us with competitive advantages which, in turn, allow us to maintain a relevant position in the sector. Website: www.nekicesa.com
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Almonds. Our life since 1923.
Our selected almonds are an essential ingredient for the confectionery and bakery industries all over the world. Natural whole, blanched and roasted almonds. Split, sliced, slivered and diced almonds. Roasted almond paste.
T: +34 965 66 12 62
F: +34 965 66 64 32
www.llopis.es
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C O N F E C T I O N A RY H O L D I N G Competitive agility The company has around 180 full-time employees but due to the nature of the business, increases this number seasonally on some of its more popular product lines. Christmas for example is a peak time for Confectionary Holding and it needs a quick response to the market, so it saw an obligation to integrate suppliers and minimise time. It is becoming a more aligned and agile supply chain. With nearly five million kilograms worth of confectionary being produced each year, and having created almond products since 1725, it can be a mammoth task to manage. Cortijos said: “I have been with the company since 2008, where I was the Operations and Supply Chain Manager. But we started to change the group two years ago, trying to integrate our supply chain more to our market and our customers and improve the value chain. “Due to this process I became The Deputy General Manager & Value Chain Director, supervising the whole Value Chain, not just the operational areas but also procurement, manufacturing and logistics including the commercial areas. “We have a close relationship with our suppliers, most of them are happy to participate and provide support. We have developed extensive relationships based on collaboration, integrating systems, sharing philosophy, promoting saving incentives and
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5 million kilograms worth of confectionary is produced every year
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C O N F E C T I O N A RY H O L D I N G
Moroccan Almonds
“We think that China is an important international market in terms of our confectionery products. We see it representing one of our more important challenges in terms of market opportunity in the coming years” – Andrés Cortijos
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just trying to create win-win relationships.” Anticipating consumer demand and the way Confectionary Holding manages this demand is linked to capacity. With good scheduling it strives to develop processes and has trained middle management employees on how to make company factories more flexible and productive. The ability to retain agility in an ever shifting working environment, in terms of level and type
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of confectionary produced and the number of workers on different sections, is crucial for the organisation. All seasonal workers are trained during off-peak times to ensure they understand new processes and methodologies to achieve standardisation across the workforce. This proactive and agile approach to business extends to transport, where products are shipped by vessels in containers, to destinations across the globe. In terms of transportation in other continents it depends on the kind of resources available and the penetration of the product. In some countries it outsources to distributors, in stronger countries it has staff there who work closely to store and commercialise its products. Brand strengthening The next few years will see the firm seek further penetration into emerging markets, working to solidify relationships with customers and suppliers alike, and there is even the intention to expand the portfolio and bring new confectionery into its product range. Cortijos said: “We have a mainly low presence in Asian countries, and we think that China is an important international market in terms of our confectionery products. We see it representing one of our more important challenges in terms of market opportunity in the coming years. At the same time we will be working to consolidate our presence in existing markets. “We are going to bring fresh products to
Key Personnel
Andrés Cortijos Deputy General Manager & Value Chain Director Andrés Cortijos has a track record of more than 10 years in managerial positions in different companies / industries in which he has been responsible for different operative projects / areas. Since 2008 he has been part of Confectionary Holding S.L, Spanish Agri-Food Group. He currently leads the industrial divisions for encouraging growth through an aligned and integrated value chain, focused on values such as; customer added value, sustainability, continuous improvement, teamwork and result orientation. In addition, Andrés Cortijos is MSc Industrial Engineer, he holds an extensive education, with masters and International Certifications related to Lean, Supply Chain, Operations and Business Administration. He is also a member of the CSCMP Spanish Cabinet (Supply Chain Leading Organization in USA), speaker and participant in different forums on Strategy, Supply Chain, Operations and FMCG.
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C O N F E C T I O N A RY H O L D I N G
CH Store
Stores reflect the quailty of the company’s products
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our range in the near future. During the last decade we have developed capabilities to be a diverse manufacturer inside the confectionery industry, acquiring the capabilities in practically all the facets of the industry. “Now we are trying to create new products within these lines with new ingredients, packaging and so on but always our first step is in the interests of our customers, because without them we would not be here. We can see and live the evolution that we are currently experiencing as a group, and that is something that still excites us even being a company with such a long and illustrious history.” The close relationship Confectionary Holding has with its customers, distributors and suppliers is yet another positive feature of the group. It relies on highly trained professionals
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Company Information INDUSTRY
Supply Chain HEADQUARTERS
Spain FOUNDED
1725 EMPLOYEES
in the confectionary industry who know the needs of the customers and they use the feedback to lead on its innovations process. In terms of volume its main ingredients are almonds, chocolate and sugar. Although these are highly unlikely to change, the company is perfecting brand new produce in partnership with educational and R&D institutes where they both strive to develop unique confectionary. “I think this value chain integration is going to position us as a global confectionery group and our idea is to be more international. We’ll try to develop our capabilities of introducing ourselves to a new market, offering local products to a local flavour and meeting differing demands of the customers.” Cortijos concluded. “We have a lot of potential throughout the world.”
350 REVENUE
€45-50m PRODUCTS/ SERVICES
Sweets and confectionary
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CONFECTIONARY HOLDING Pol铆gono Industrial Ciudad del Turr贸n Jijona, Alicante 03100, Spain Tel. +34 965 610 225 Fax. +34 965 612 552 info@confectionaryholdingshop.com www.confectionaryholding.com