Co-operative Success
Co-operative success Written by Wedaeli Chibelushi Produced by Dennis Morales
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FrieslandCampina has been present in the Middle East for over 60 years and has found lasting success in the region. The Middle East division of this dairy multinational recognises localised challenges and opportunities, which drive the need for continuous innovation
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utch dairy co-operative FrieslandCampina is one of the leading dairy co-operatives in the world. It produces and sells consumer products (e.g. dairy-based beverages, infant nutrition, cheese and desserts) in Africa, Asia and many European countries. Dairy products are also exported worldwide from the Netherlands. In addition, products are supplied to professional customers, including cream and butter products to bakeries and catering companies. FrieslandCampina also sells ingredients and half-finished products to manufacturers of infant nutrition, the food industry and the pharmaceutical sector around the world. FrieslandCampina was among the first multinational companies to enter the Middle East
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“Always striving for the best quality, where health and safety play a key role. For our cows, farmers, consumers, employees and partners, we are all about ‘nourishing by nature’” market in early 50s. Since then, the company has established a strong position in the market. Its brands, such as Rainbow and Omela, have become household names in the region. What is FrieslandCampina’s secret to Middle Eastern success? “I think it is about consistently striving for the best quality,” explains Bas Roelofs, Managing Director for FrieslandCampina Middle East. “Being here for more than 60 years, allows us to have a strong heritage in the region.” Before becoming Managing Director of the Middle East, Roelofs spent four years as a Director of Sales and Shopper Marketing for FrieslandCampina. Supply Chain
Digital speaks to him about how FrieslandCampina is building on the region’s positive economic and social changes, and how they plan to further expand and invest in Middle East.
Co-operative company FrieslandCampina is a proud dairy co-operative. “We have 19,000 member farmers who have from generation to generation owned this company, and that’s different than having a stockmarket listed company, of course,” Roelofs comments. He also insists that the firm’s cooperative status distinguishes it from competitors; that its farmers’ joint entrepreneurial mind-set
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separates FrieslandCampina from stock-market listed companies. “When we started back in 1871 we had a small group of farmers forming a small company, now we are one of the top global dairy multinationals,” Roelofs asserts. This small group of farmers has expanded over the Netherlands, Belgium and Germany. Roelofs believes that FrieslandCampina’s success as a co-operative has allowed it to reach out to several foreign regions, including the Middle East.
Staying fresh The company has a unique ‘grass to glass’ business model, ensuring it adheres to the highest quality standards in the dairy industry. The model is anchored on FrieslandCampina’s ability to have full control of the whole chain: from the farms (grass) to the final product (glass). With more than 140
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years of knowledge on farming, food production, food safety, sustainability, health and nutrition as well as in depth knowledge of the market, FrieslandCampina believes it is well placed to be part of the fast growth of this region. Roelofs describes the process: “That all starts with collecting the milk directly from the farms, where we keep them in a chilled truck to get it to the production facility. It all happens in a short time frame to make sure the milk is fully fresh when it reaches our facilities.” From this point, different products follow different chains. “We have a supply chain where the finished product doesn’t have to be chilled, like with Rainbow evaporated milk. We also have products that need to be fully chilled all the way to delivery in store (like cheese), which has to be kept between four and seven degrees. We have our
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Friso brand (infant formula) that has to be kept at a very stable temperature as well,” Roelofs adds. After production, the products are transported in chilled containers (on boats) to the receiving region. FrieslandCampina tracks deviation in temperature throughout the journey, from harbor to store.
Progressive plans FrieslandCampina is determined to maintain a culture of innovation. A newly opened state of the art R&D center in Wageningen Campus, the Netherlands, invests in unlocking maximum potential in dairy and creating new concepts. FrieslandCampina Middle East
realises that along with consulting its Dutch R&D center, it must carry out its local consumer research in the Middle East. “In order to reflect the local needs, our consumer research is done locally. We listen to insights from key stakeholders, or it could even be government requirements or consumers calling our consumer care line,” says Roelofs. “We link that back to our R&D center and make the maximum use out of that so we can always be close to consumers’ needs”. FrieslandCampina Middle East also focuses on what Roelofs calls “commercial innovation”. Current engagement with stakeholders
22,000
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Friesland Campina, globally
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“In order to reflect the local needs our consumer research is done locally. We try to listen to research done by key stakeholders, or it could even be government requirements or consumers calling our consumer care line” and consumers is different from the company’s strategy two or three decades ago. For instance, FrieslandCampina is currently running a big digital campaign for its Frico cheese brand – this would not have been possible five or ten years ago. Neither would it have been possible for FrieslandCampina to produce a widespread media campaign with celebrity chef Sanjeev Kapoor. Kapoor is the protagonist of Rainbow evaporated milk brand communication running across major UAE TV and radio networks. Kapoor promotes Rainbow’s capacity to enhance the taste of traditional Asian karak tea. Another commercial innovation
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centres around the activation of Rainbow flavoured milk, a product produced in FrieslandCampina’s Jeddah factory. “We recently won the Guinness Book of World Records in the Jeddah Red Sea Mall, where we had the world’s largest gathering of kids dressed as Ben Ten,” Roelofs comments. Ben 10 is a much loved character from Cartoon Network EMEA, who partnered with FrieslandCampina Middle East.
Opportunities and challenges Roelofs acknowledges current conflicts in the Middle East: “Of course, often covered in the news lately are the wars in Iraq, Syria and Yemen. That gives a completely new
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and different challenge”. Roelofs growth. Roelofs ultimately also recognizes the instability of recognizes that it’s a privilege for oil prices and the geographical FrieslandCampina to operate in complexity of the region. However, the region, despite its challenges. he ultimately believes that the benefits of operating in the Middle Expansion and investment East far outweigh the risks. Roelofs The firm has big plans for the sees the Middle East as vibrant, and future. Firstly, it is investing in feels FrieslandCampina its Jeddah factory, where can learn from and it produces Rainbow contribute to the ready to drink milk. region. We have Sustainability is a lot to offer the another area which The year diverse nationalities is seeing heavy FrieslandCampina and cultures. investment. “One of was founded Roelofs adds: the things that we’ve “This region has a recently announced is population which is growing, our commitment to massively notably a young and educated invest in biogas equipment, demographic with high investment meaning that our farmers will be both in the public and private sector. able to use the manure to get Personally that gives me energy.” electricity for the farms. As such He believes that in the coming we know that we can get more decade the region will see milk, more growth and a lower strong economic and personal carbon footprint,” Roelofs notes.
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FrieslandCampina Middle East is also reducing wastage of energy and water in its Jeddah factory. Roelofs believes that FrieslandCampina Middle East will maintain its success over the coming years. “Aim for the stars while keeping your feet on the ground” he states, a motto that aptly summarises the cooperative’s future plans. FrieslandCampina wants to
continue serving its millions of Middle Eastern consumers. It wants to continue sourcing inspiration, continue growth and introduce new products. Roelofs concludes: “It makes me very proud to see the historic result that we have delivered here, and I want to continue humbly serving the millions of consumers in the Middle East, with our organisation across the region and backed by our farmers in Europe.”
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FrieslandCampina Middle East JLT Jumeirah Lake Towers, palladium Tower 8th floor Dubai 487740 t +971 (4)455 1800 f +971 (4)455 1899
www.frieslandcampina.com