Building on the Pas to Grow a Bright Future

Virginia tobacco merchant J.P. Taylor.

In 1918, the Virginia tobacco merchant Jacquelin P. Taylor, along with five other tobacco merchants consolidated to form Universal Leaf Tobacco Company.

The company celebrated its 100th anniversary on January 25, 2018. “A centennial is an important milestone for any company,” said George Freeman, President, chairman, and chief executive officer of Universal. “It is a testament to the long-running and continued support and importance of our vital communities—investors, customers, growers and employees.

For a century, Universal Corporation has been finding innovative solutions to serve our customers and meet their leaf tobacco needs.

“We built a global presence, solidified long-term relationships with customers and suppliers, adapted to changing agricultural practices, embraced state of the art technology and emerged as the recognized industry leader,” Freeman continued.

Today, Universal conducts business in over 30 countries on five continents, employs over 20,000 permanent and seasonal workers, and is the leading global leaf supplier.

What Universal Means to the Industry

“Universal has a long history of operating with integrity, honesty, and a focus on quality,” Freeman adds.

It is a vital link in the leaf tobacco supply chain, providing expertise in working with large numbers of farmers, efficiently selling various qualities of leaf to a broad global customer base, and adapting to meet evolving customer needs and delivering products that meet stringent quality and regulatory specifications.

As Universal moves into its second 100 years, it will build on history by seeking opportunities to leverage both its assets and expertise.

“We will continue our commitment to leadership in setting industry standards, operating with transparency, providing products that are responsibly sourced, and investing in and strengthening the communities where we operate.

Throughout our 100-year history, we have been finding innovative solutions to serve our customers and meet their leaf tobacco needs,” he said.

The strategies that have been learned

Freeman listed the key operating strategies that have permitted Universal to thrive for its first century:

Strategic Market Position—We work closely with both our customers and suppliers to ensure that we deliver a product that meets our customers’ needs while cultivating a strong sustainable supplier base. We balance purchases of leaf tobacco against customer demand and maintain global procurement and production operations to maximize supply chain efficiencies.

Strong Local Management—Having strong local management in all of our key supply origins allows us to identify constantly shifting market conditions. Empowered local management coupled with global coordination is critical to affording the necessary flexibility to quickly adjust our decision processes in order to continually deliver high quality, competitively-priced products and services.

Compliant Product—Customers expect a sustainable supply of fully-compliant, traceable, competitively-priced product, and Universal leads in delivering these products. Among other initiatives, Universal invests in training farmers in good agricultural practices that encompass crop quality, environmental stewardship and agricultural labor standards.

Diversified Sources —Universal operates on five continents and maintains a presence in all major flue-cured, burley, oriental and dark air-cured origin markets. This global presence allows us to meet our customers’ diverse leaf requirements while minimizing the effects adverse crop conditions and other localized supply interruptions.

Financial Strength—Financial strength is critical and enables us to fund our global operations efficiently and to facilitate investment when suitable opportunities arise. Managing interest expense and capital costs provides a competitive advantage, affording us flexibility when responding to customer requirements and market changes.

The next 100 years

“We are proud to be the leading global leaf supplier, the recognized industry leader and a vital link in the leaf tobacco supply chain,” said Freeman. “I believe that we got here because of our long history of operating with integrity, honesty, and a focus on quality.

“We are looking forward to our next 100 years and seek to build on the many lessons that we’ve learned on our journey thus far. We will continue our commitment to leadership in setting industry standards, operating with transparency, providing products that are responsibly-sourced, and investing in and strengthening the communities where we operate.”

George Freeman, President, chairman, and chief executive officer of Universal.

Lessons Learned in the Past 100 Years

Leaf moves down the line at Universal’s Nashville, N.C., processing plant.

Universal Leaf management has charted a course through economic depression, wars and geo-political upheavals. Here as it enters the next chapter of the company’s continuing story are some of the principles that have made that journey a successful one.

Relationships last. They are the very fabric of what Universal does. Over the years, handshakes have signaled relationships built upon trust and loyalty. And, although today’s legal environment requires written agreements, those sealed with handshakes still signal the kind of relationships that will last, not just for a while but for decades to come.

Do the right thing the right way. Universal has become known for doing what it says it will do. “When we take a position or make a promise or guarantee a result, you can count on us to deliver,” said Universal management. “Our fundamental promise is to do business in the future in the very same way—the right way.”

Every action affects others. It is called “The Universal Effect.” It is manifest in every decision we make. Every action gives rise to another….and another….and another….and so on.

A company is known for what it values. Consider core beliefs, and you’ll understand the values that define a company. “They underpin the actions we take every day to cultivate and strengthen the various communities we depend on—growers, investors, employees and, most importantly, our customers. In short, we practice what we preach—that’s just what leaders do.”

Consider this example. “Say we provide a grower with training and crop analytics technology that results in better yields. In return, we get a more prosperous farmer, one who is better equipped to help improve the quality of life in his community,” said Universal. “We work every day to take such actions, mindful of the rippling impacts they will have on the lives of people, the needs of our investors, the requirements of our customers, the sustainability of our practices and the health of our planet.”

It was big news when Universal Leaf North America opened its manufacturing facility near Nashville, N.C., in 2003.

Workers at ULNA’s factory in N.C. pick and sort leaf as it goes through processing.

Universal Leaf’s Nashville, N.C., leaf processing plant features state of the art equipment.

A field of Chinese tobacco blooms in the sunshine. Universal Corporation is involved in leaf production around the world.

Time to review his burley crop for a farmer in Mozambique.

Ripeness is the selling point for flue-cured tobacco in Virginia, where modern tobacco production began.