Globepak / Enterprise Africa August 2021

G L O B E PA K

GLOBEPAK

Project Siyakhula

Propels Globepak PRODUCTION: David

Napier

A powerful new facility has emerged at Louwlardia Logistics Park in Centurion.

Housing the operations of USN and Globepak, this new site is a world-class facility for industry leading organisations. Globepak’s work will be complete in September and full production will commence as the company hunts growth alongside its parent.

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Kwena George Mmonwa is a distance runner from Tembisa.

He started working for South African-founded sports nutrition brand USN, in the company’s warehouse, in 2010. At the time, Mmonwa was not an elite athlete. In fact, he had little. By chance, a discussion with a USN colleague led him to taking up running. His enjoyment for the sport grew quickly. In just three years, he had become infatuated and signed up to race in the 2013 Comrades Marathon.

Much to his surprise, he ran 07:23:53, earning a silver medal. He also grew

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from a career perspective, receiving promotions and gaining seniority.

By 2018, he lined up for his sixth Comrades, citing his training plan – running 18km to work and 18km home each day – as key in his progress. But his efforts have not stopped. His Comrades PB is now 06:39:05 and he has his eyes set on winning the famous but gruelling race.

Perhaps one of the hidden drivers of Mmonwa’s success is his fuel – USN’s high-quality nutritional supplements for optimised health and sport performance. But often hidden behind internationally-recognised USN brand is

another top performer – Globepak.

As the manufacturing and packing powerhouse – the beating heart of USN’s South African operation – Globepak is currently ploughing investment into a new facility that will see it located on the same site as parent USN, alongside distribution, marketing, sales and office functions.

The new, state-of-the-art facility will be created to world-class standards and will drive capacity improvements for USN as it continues to innovate for aspiring athletes, like Mmonwa, from all different backgrounds.

INDUSTRY FOCUS: MANUFACTURING

AMAZING NEW HOME “Globepak has 6000m2 and there is a lot going on. There are constantly contractors and suppliers on site, and it is all working well at the moment,” says Managing Director Douglas De Bruyn.

“We are progressing well. Over the past few months, we have been preparing the area on site to house the Globepak factory and make some step changes in both capacity and efficiency to make it a truly world-class manufacturing facility.

“We have laid hygienic epoxy

// WE SEE OURSELVES AS A CONTRACT PACKER AND WILL ENGAGE WITH ANYONE WHO WOULD LIKE TO MANUFACTURE A DRY POWDER SPORTS NUTRITION PRODUCT //

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floors and we’ve put up insulated isopanel walled clean rooms where all the measuring, weighing, blending and packing of our products will take place. We are busy installing the dust extraction and fresh air supply into these rooms. We have taken delivery of some of our new packaging equipment. We are taking across the majority of our equipment from our existing facility but, in order to expand, we are investing in new packing lines.

The idea is that, within weeks, we will be installing our new blending and packing equipment, and towards the end of August we will relocate the rest of our existing equipment and begin operations in the month of September.”

In September 2020, after a chaotic year for all businesses, discussions began at executive level about expanding Globepak’s capacity.

The company was quickly outgrowing its existing infrastructure and, with future demand expected to spike across several new product ranges, the decision was taken to move Globepak to a new site at Louwlardia Logistics Park in Centurion. To make the journey extra exciting, USN decided to relocate its entire

distribution centre, warehousing, and office at the same time.

“Very quickly, the brief changed from looking at a growth space for Globepak to looking at an even larger facility that could take all aspects of the business under one roof.

“We put the distribution warehouse in first and we then moved the USN office in at the end of the first quarter, and now we are busy working on the Globepak move. Demand has increased so we are using it as an opportunity to upscale and make improvements along the way,” says De Bruyn.

Right now, solar panels are being installed on the roof by a local contractor so ensure security of supply and bolster environmental credentials. Globepak has proactively searched for local suppliers, preferably those with a presence in Centurion, to ensure investment is felt within its community. In June, a 350kVA generator arrived on site – soon to be hooked up to the new solar array – bringing energy guarantees so that the site can operate uninterrupted.

This uptick in capacity and activity will inevitably create new employment opportunities. “The fact that we are

GLOBEPAK

putting in two additional packing lines already requires additional manpower to operate those lines. As the volumes grow, the other areas within the factory, especially in the warehouse and support functions, will need to grow too,” says De Bruyn.

FAST MOVING To date, this is a project that has, like Mmonwa, moved with speed – something which De Bruyn has welcomed.

“I come from a background of building factories in the food and beverage industry and I have loved the opportunity to be able to set this vision and see it through.

“It’s a lot faster and a lot more agile and nimble. It will be one year from having a conceptual thought about possibly moving facility to moving into a brand-new, world-class manufacturing facility. Previously, in the corporate space, I’ve seen the wheel turn a lot slower. Here, once we made a strategic decision, it was all guns blazing to get it done and get it done best, rather than discussing whether it should be done.”

By September and completion of this project, Globepak will be focusing on the future and the opportunities that are clearly present in the market, rather than looking backwards through the recent turbulence.

“The first lockdown hit quite badly in terms of sales as no one knew what was going on and there was reduced retail foot traffic. We had to downscale our operations substantially from April to August 2020,” admits De Bruyn. “From September, it was strange, there was a change in consumer behaviour and people became very fitness orientated.

The online fitness programs became popular, and socialising was only happening outdoors. There was a big uptake in our category of products and we realised that, if the growth was maintained, we would need the larger facility. It has been maintained from September 2020 until now and that has been great for us.”

THERMAL INSULATION PANELLING & PRODUCTS Dalucon Refrigeration Products (DRP) is a family owned business, originally founded by Aldo Martinelli in 1991 with a combined company knowledge between its members of over 50 years. Our core focus is on quality and efficient delivery of our products and services. DRP has set a benchmark for all of its products that competitors find hard to match.

Products include: Cold & freezer rooms, cold & freezer room doors & shelving, refrigerated truck bodies & trailers, refrigerated storeroom containers, insulated panels (growing rooms, large warehouse buildings, ceilings & packing) and specialized projects.

www.dalucon.co.za 012 661 8480 info@dalucon.co.za

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INDUSTRY FOCUS: MANUFACTURING

// WE HAVE BEEN PREPARING THE AREA ON SITE TO HOUSE THE GLOBEPAK FACTORY AND MAKE SOME STEP CHANGES IN BOTH CAPACITY AND EFFICIENCY TO MAKE IT A TRULY WORLD-CLASS MANUFACTURING FACILITY // Despite major success so far, now is not about coasting for Globepak. The company remains cautiously optimistic, but De Bruyn is mindful of the challenges that will likely need hurdling. “Regarding the recent unrest in South Africa, we were unscathed. Our location and the areas our people live remained untroubled.

From Covid, there has a been a big emphasis from us to keep our staff healthy and ensure that we can continue with operations. We have managed to do that and I am very grateful.

“We are cautious as most of our material supply, and some of our equipment for our new site, comes

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through Durban harbour. We haven’t been affected yet, but I am conscious that we could see some impact on supply through Durban. To date, there has been no direct impact.”

The product range of USN, developed and manufactured in South Africa by Globepak, is perhaps the catalyst in what has been exceptional growth for both businesses. Without doubt, this enviable range will grow and, as consumer trends change, Globepak will adapt.

PRODUCT DEVELOPMENT? “Globepak does the development work and the food scientists who research these new products sit within our company. That has been a trademark of USN; at one stage around 20% of turnover was made from innovations and new products in the market.

USN has always had a big churn of new flavours and new products, to establish first-to-market in their chosen categories. Globepak has been a beneficiary of that innovation drive.

“Within the current climate where people are very conscious of immunity, we have seen big growth in people looking for products that actually offer a health benefit and not just from a protein perspective. Vitamins, digestive, immune support are categories that have been growing. Products with collagen have also been popular

and collagen has been a rising star ingredient across multiple ranges,” De Bruyn details.

Plant-based is another category which is booming. The International Society of Sports Nutrition (ISSN) has recognised the effectiveness of plat-based protein products. The rise of plant-powered athletes and those attributing their success to vegan or vegetarian diets is well-documented, and sports nutrition companies have tailored their offerings to ensure accessibility for all.

“It has come off a small base but the growth has definitely been there,” confirms De Bruyn. “The plant-based revolution has been undeniable around the world and we think that is a sustainable growth area. At first, when USN launched their premium plant protein range, the powder was brought in from the US and Globepak packed it from bulk into smaller containers for USN. When the growth became clear, we saw the benefit of manufacturing that product locally. We now source all ingredients and raw materials, and we blend the product here in South Africa.

It has been a success story so far and we do see that range growing.”

Interestingly, despite being founded to supply into USN and becoming owned 100% by USN five years ago, Globepak goes to market independently and plays as a manufacturer and packer for other sports nutrition companies in the industry. This complicated growth avenue is another area of promise for De Bruyn.

“Our second biggest client is BioGen. They also have big growth ambitions but they have been sold exclusively through Dis-Chem, which is also USN’s biggest channel. BioGen has been exploring operating more independently and they have now launched in Decathlon.

“We pick up a few smaller challenger brands which may be seen as competitors, but the reality is even the biggest nutrition manufacturers in the US also

GLOBEPAK

manufacture for their competitors. It is not uncommon for factories to manufacture for multiple brands.

“If we aren’t manufacturing for them then someone else will. We ensure we have IP protected on both sides and from a Globepak perspective we ensure we put the best product out there for whichever customer we are working for. Although USN owns us 100%, we see ourselves as a contract packer and will engage with anyone who would like to manufacture a dry powder sports nutrition product.”

In the immediate future, the majority of growth experienced at Globepak will come as a result of the USN push into new, emerging markets.

With a push on new products and pumping out large volumes for export, all while bedding in new tech and equipment at a new site, it will remain crucial that Globepak’s focus on the core is not neglected. Since 2000, USN has prided itself on an industry leading whey protein product, endorsed by

Founder and CEO Ablé Geldenhuys.

“Although innovations and new categories are where growth is, we are very conscious that the core of the business – whey protein – is very much where the volume and value for the business sits,” says De Bruyn.

“We will never overlook a category, especially one which has done so well, and so these categories regularly get maintenance. We have to look at the flavours, formulations and the packaging. USN has asked recently for us to look again at the packaging and use less plastic as the South African consumer becomes more environmentally conscious.”

The end result here is consistent, sustainable, profitable growth. This sits perfectly within the project aims, and spreads faith and confidence across an already ambitious workforce.

“From an employee perspective, most people have been with Globepak since its establishment. The company was started from scratch around 11 years

ago and many people here have seen that entire growth story,” says De Bruyn.

“They have seen the move from a small premises into the facility we currently occupy and now they are seeing the step change again as we upgrade into the next space. In the current climate, any indication of investment and longevity is very welcome. It shows ambition and confidence around job security and growth. We have adopted a project name ‘Siyakhula’, the isiXhosa word for ‘we are growing’ – it brings positive sentiment.”

The constantly improving USN product range, powered by Globepak, like Kwena George Mmonwa is reaching new heights and, thanks to investment into the new site, surely cannot be stopped in pursuit and maintenance of the number one position.

WWW.USN.CO.ZA

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