Page 1

www.FDFworld.com

April 2018

TOP 10

COCOA-PRODUCING COUNTRIES

Bamboo Rose

CEO Sue Welch on increasing supply chain transparency

KEEPING IT CHILLED

TACKLING TOMORROW’S PROBLEMS

THE POWER OF THE COLD CHAIN

With Polar Krush

®

BREAKING THE MOULD OF IT Andres Cubero, Jetro’s first ever CIO, discusses the importance of digitisation


Bosgraaf Group offers a total package

Bosgraaf Group’s state-of-the-art systems and service for the production of semihard and hard cheeses, is a result of the company’s extensive experience and innovative technical solutions. With an unrelenting focus on performance, hygiene and sustainability, Bosgraaf’s bespoke production facilities ensure that an optimal solution is found across the organisation to suit the clients’ needs, including the use of robotics in mould handling and treatment lines. Bosgraaf specialises in cheese moulding, handling and pressing systems as well as rack brining, treatment and maturation installations.

info@bosgraaf-group.nl www

www.bosgraaf-group.nl


FOREWORD HELLO AND WELCOME to the April edition of FDF World magazine. In a digital age saturated with data and information, transparency has emerged as the must-have ingredient for any successful food retailer. In our cover story this month, Susan Welch, CEO of Bamboo Rose, tells us how food retailers are tapping into advanced end-to-end solutions to increase transparency throughout even the most intricate supply chains. Delving into the sector’s most trailblazing technologies, we also speak to ABB’s Global Marketing & Portfolio Manager, Tatjana Milenovic, to see how the firm is pioneering an unbroken cold chain from power supply and storage, right through to logistics. Looking to the UK, we also put the spotlight on the mushrooming carbonated drinks market, where Ahmed Elafifi Founder and Chief Relaxation Officer at drink company Tranquini is entering the fray with a new soft drink company, and a whole new drinks category. Whilst energy drinks may have

saturated the market, we speak to Elafifi to see how his relaxation drinks are going to flip the industry on its head. As always, sustainability has dominated the headlines and as the drinks market continues to carve out green action plans, we look at some businesses that are taking a step in the right direction. Next, with the global chocolate market worth projected to increase to $137.12bn by 2020, we scour the globe to find the top 10 cocoa producing countries in the world. On top of this, we’ll round off with a look at the top industry events across the globe. We sincerely hope you enjoy the issue, and as always, please tweet your feedback to @FDFWorld

Enjoy the issue!

www.fdfworld.com www.bizclikmedia.com

3


F E AT U R E S

E X PA N S I O N S T R AT E G Y

BUILDING A COMMUNITY

10

D I G I TA L D I S R U P T I O N FRANCHISING

22 4

April 2018

34

THE SOFT SELL

TRANQUINI TARGETS NEW MARKETS


S U S TA I N A B I L I T Y

LIST

Headline for the article Headline for the article

44

54 00TOP 10 00

COCOA- PRODUCING COUNTRIES IN THE WORLD

TACKLING TOMORROW’S

PROBLEMS TODAY

62

Events

5


C O M PA N Y P R O F I L ES

70 84

Merieux Nutrisciences USA

100

Yum! (PizzaHut) Africa

6

April 2018

Jetro Restaurants USA


112 KFC Asia

124

Netafim Mexico

Latin America

134

AgroAmĂŠrica (Guatemala) Latin America

7


E X PA N S I O N S T R AT E G Y

BUILDING A COMMUNITY Sue Welch, CEO of Bamboo Rose, discusses how food retailers can use advanced endto-end solutions to increase transparency throughout their supply chains Written by Matt High


E X PA N S I O N S T R AT E G Y

“At every stage, it’s all about taking on the ‘heavy lifting’ and making it as simple as possible for the customer” Sue Welch, CEO, Bamboo Rose

ONE OF THE most significant factors, if not the most significant one that contributes to a successful supply chain, is transparency. That’s particularly true for grocers or any retailers managing a complex food supply chain – with the inherent risks associated with fresh produce, it simply has to be. Thanks to evolving consumer demand driven by a desire for higher quality products, more personalisation, a focus on 12

April 2018

sustainability and ‘ethical’ produce as well as the ‘need it now’ nature of modern digital consumerism, the challenge of transparency is more complex than ever. Today, retailers must not only maintain visibility throughout their supply chain to ensure success, but also demonstrate a sense of shared ethical values to consumers whilst managing increasing regulatory scrutiny and a growing network of partners.


Collaborative community According to Sue Welch, CEO of product lifecycle management (PLM) platform Bamboo Rose, the answer lies in a strong, collaborative community underpinned by digital technology. “In trying to get up to speed with any challenges, and ensuring transparency and visibility, you’re only as fast as your slowest partner,” she says. “Bamboo Rose is a true endto-end product that starts with

ideation, through PLM, sourcing, order management, global trade management and sales order management but, at its heart, it’s all about the community,” Welch adds. “Ensuring that strong community exists is how our technology helps retailers. By having a system where everyone collaborates on the same platform, everyone wins – that’s where you can really make huge improvements and drive down costs.” Modern supply chains are incredibly 13


E X PA N S I O N S T R AT E G Y

complex, whether a business is operating nationally or internationally. Such an environment means that the implementation of innovative digital solutions, such as that offered by Bamboo Rose, are essential. Gone are the days when products could be tracked merely by spreadsheet, or partners managed and contacted via phone or email. These archaic methods, according to Welch, make it all 14

April 2018

too easy for “things to fall through the cracks” because they are typically disconnected technologies used in isolation by partners. Instead, implementing a digital platform allows for more streamlined and efficient supply chain collaboration, thus resulting in improved transparency. “To achieve that visibility, it’s vital to have a multienterprise platform,” Welch explains. “It’s no longer just about you; it’s about


everyone in the community. As soon as you have everyone on the same platform you have records, validations and verifications that increase transparency. It’s also invaluable should something unplanned occur.” One source of truth Grocery retailers, says Welch, need ‘one source of truth’ whereby technology manages complex supply chains from end to end, increasing visibility and communication with all suppliers and partners to put transparency at the forefront. Bamboo Rose’s digital B2B marketplace is an innovative platform that connects the retail community to offer benefits such as reduced time to market, increased efficiency, a system of record at every link in the chain and more. It’s a concept that was borne out of Sue’s previous experience in international sourcing. “It comes from what I witnessed when actively working out there in the field and with suppliers,” she states. “One thing I saw very early on was that communication with partners in the supply chain was so fragmented and delayed that it was causing many

“As soon as you have everyone on the same platform you have records, validations and verifications that increase transparency” Sue Welch, CEO, Bamboo Rose

problems in all areas of the supply chain. Building Bamboo Rose, it was really important for me to take into account all the differing needs and perspectives of those many players.” To give an example of exactly how that works in practice, Welch discusses a typical project that shows the scope of Bamboo Rose’s end-to-end activity. It all starts, she says, with the PLM phase and the product development – typically, materials, ingredients and so on. Based around the specific attributes of products or materials Bamboo 15


E X PA N S I O N S T R AT E G Y Rose identifies any early-stages issues around compliance, cost or testing, for example. After which, suppliers are consulted to ensure that the best price – and best product – are sourced successfully. “At every stage, it’s all about taking on the ‘heavy lifting’ and making it as simple as possible for the customer,” she adds. “Once suppliers are selected we handle the purchase

order – by the time the customer has reached this stage it should already be very simple, reducing the typical time of getting an order out from up to 30 days to the click of a button. “We monitor everything at the supplier’s site too, from receiving raw materials, product care, health and safety inspections and more, to give visibility of all those parties that are involved in producing, defining and testing the product. Once the product is ready to be shipped we’ll then manage carriers, booking requests, any problems with the order, commercial invoices and goods tracking, borders and customs and final project completion. Again, it’s about making it all work for everyone in that community.” Transparency at every stage The key, then, is about managing the minutiae and providing a solution that offers true transparency at every stage. The complexity of any supply chain means that the simplest of errors can cause significant problems, as Welch indicates in an example involving the US Fishing and Wildlife Service. In this instance, one company

16

April 2018


produced an item that included a fake feather. When the supplier found an alternative source for the feather it became a real feather, a change that no other supply chain partner was aware of. The result saw not only hold ups at the border, but also concerns around possible fraudulent documentation due to no other parties being aware. “If the customer were on our

platform,” Welch expands, “it would have noted that a component supplier had changed during the process and would have triggered a response from us. In that instance, the one small error cost the company around $6mn.” Legal and ethical compliance Of course, it’s not only regulations that are driving transparency. Consumers today have a greater awareness of the 17


implications not only of food safety, but also sustainability and ethically produced goods. It’s a simple fact that people are far more concerned with point of origin for their food products, requiring true end-to-end supply chain visibility that gives a detailed look at the whole process and the ability to precisely locate any problem. For the latter, Bamboo Rose “creates a full supplier profile,” Welch comments. “It’s really important as a retailer to have visibility of testing and audit companies, data around workforce, human rights, safety of workers and associated legal and ethical compliance. Many of the brands we work with really understand the importance of introducing their sustainability programmes to the market and their consumers.” The speed at which the retail sector continues to progress is formidable. And while change may be one of the biggest challenges for any business or organisation – particularly when introducing a supply chainwide development – innovation is essential for ongoing success. According to Welch, with a change in mindset it’s possible for advanced technology like Bamboo Rose’s 18

April 2018

“Many of the brands we work with really understand the importance of introducing their sustainability programmes to the market and their consumers” Sue Welch, CEO, Bamboo Rose

platform to significantly improve visibility. “One thing we previously encountered was a retailer or supplier bringing on a new system, and only bringing it on for themselves. That attitude is a huge mistake and, as I’ve explained, success can only be achieved by understanding every partner in the community. “There will always be challenges, but the beauty of technology is that you can easily filter out anything that can disrupt a supply chain. By having that platform in place, you can achieve true transparency – if you know something is authenticated or validated you know it can be trusted. It’s all about trust.”


E X PA N S I O N S T R AT E G Y

19


We deliver you the stories that matter… Click to read

V R E T N I E V I T U C E X E , S I S Y L A N NEWS, A www.supplychaindigital.com

H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S


“We recently worked with BizClik Media on an article which characterizes and explains the total value that Kudu Supply Chain has on company growth plans. From start to the finish, it was a pleasure working with the BizClik team. The feedback we have received from different audience groups on the article was phenomenal. It has attracted a lot of interest and attention to our company, our growth plans and has definitely created additional value to what we are trying to achieve.”

– Murat Ungun, Senior VP Supply Chain Kudu Corp

S T R O P E R Y N A P M O C E V I S U L C X VIEWS, E

HAVE YOU SEEN OUR OTHER TITLES?


DISRUPTIVE TECHNOLOGY

THE POWER OF THE COLD CHAIN


ABB’s Global Marketing & Portfolio Manager Tatjana Milenovic speaks to FDF World about how the industrial digitisation giant is pioneering an unbroken cold chain from power supply and storage and through to logistics Written by DA N B R I G HTM O R E


DISRUPTIVE TECHNOLOGY WHETHER IT’S PICKING, packing, palletising or shipping, ABB delivers solutions across utilities and infrastructure that impact the entire spectrum of food and beverage industry operations. “Our experience at delivering reliable cold chain technology for the medical sector is something we can offer to food and beverage companies,” confirms ABB’s Global Marketing & Portfolio Manager Tatjana Milenovic who notes that growing fresh food in a commercial greenhouse is like operating a clean room in the pharma industry. “The implementation of our expertise in fleet management and the automisation of equipment management across the whole value chain from agriculture, to ingredients processing, and the journey from manufacturing to retail warehouses, we work with manufacturing facilities and plants that need optimised cold storage either for raw materials, intermediate goods or the final product. We look at the quality of power intake because even a small fluctuation in voltage, such as a threemillisecond surge, can cause a few hours of down time, which in cold 24

April 2018

storage equates to escalating costs.” With many components in the cold chain, ABB offers a key service by providing the most efficient motors allied to the automation of controls across the whole operation of the cold chain with sensors to monitor temperature and humidity. “With our ABB Ability Connected Services we monitor everything from low voltage switch gears and transformers to the smallest valves, drives and motor components in the cold storage system,” explains Milenovic. “This is vital because you don’t want to perform maintenance on a specific timescale or in a reactive way, but


TATJANA MILENOVIC, ABB’s Global Marketing & Portfolio Manager

through predictive maintenance tools so you can act before the fault occurs and protect the cold chain. Our monitoring of all components can save our customers up to 40% of their energy consumption which impacts favourably on cost.” ABB’s cold storage solutions also extend to supporting the construction of food and beverage plants with a bespoke cooling tower package. “ABB’s direct drive motor cooling tower solution removes the cost, maintenance and worry associated with traditional gearbox or belted solutions,” says Milenovic. “The fan couples directly to the motor and is 25


DISRUPTIVE TECHNOLOGY

Caption hyhyhyhy

controlled by an AC drive to provide optimal speed and cooling tower performance that runs quieter with reduced energy consumption that can offer savings of up to 20%.” SUB-ZERO CONDITIONS ABB also offers a range of robotics solutions for logistics warehouses where workers cannot safely carry 26

April 2018

out ongoing tasks in a sub-zero cold storage environment. “It’s not sustainable so having our robots picking and packing meat, for example, allows the continuous 24/7 flow of the cold chain,” recommends Milenovic. “For these companies with high inventory levels in cold storage, this is typically one of the biggest cost levers. Being able to fully integrate


OctoFrost’s customers required a tool to calculate the amount of frozen end product produced and what frozen raw materials had been consumed. This helped to reduce costs.” Milenovic cites a passion for innovation in automation at ABB, which last year saw it acquire factory automation specialist DNR, further widening the horizon for its digital solutions. Successful implementation of ABB’s robotic strategies has included the introduction of the YuMi robot to help Finnish company Orkla Confectionery be more efficient in production of its Panda brand. STORAGE AND DISTRIBUTION At the Guldfågeln chicken processing

the value chain, from raw material intake through to manufacturing, with a connected business and shop floor allowing you to monitor the production of every batch, allows businesses to optimise inventory levels. We’ve seen this with clients like Swedish OEM Octofrost, a manufacturer of processing equipment for frozen food processors. At the end of the process,

YuMi® robot helps Orkla Confectionery and Snacks Finland produce more efficiently

27


DISRUPTIVE TECHNOLOGY plant in Sweden, more than 86,000 chickens arrive each day from neighbouring farms to be transformed into the company’s various product lines. “We have tough competition from imported chicken,” explains Production Manager Tobias Abrahamsson. “If consumers think only of their wallets they will choose imported chicken.” Guldfågeln bought its first robot in 2011 after a tender was awarded to ABB’s Value Provider Evomatic. Robots now handle the palletisation of cardboard boxes in a cold storage facility with high humidity. In the open food environment, ABB ensures food safety and protection from contamination with its aluminium motors, stainless steel valves, measurement devices and motors. It’s why the company won a contract, through its Thailand-based channel partner SSB Siam Co. Ltd, to supply motors to Cargill Meats to help run its poultry processing facility in Nakhon Ratchasima province. An agribusiness and food giant, Cargill is currently expanding its poultry processing facility where the stainless steel washdown motors from ABB will ensure efficient and reliable operations, helping meet the high quality and safety 28

April 2018


ABOUT ABB ABB is a pioneering technology leader that is writing the future of industrial digitalisation. For more than four decades, it has been at the forefront of innovating digitally connected and enabled industrial equipment and systems to drive efficiency, safety and productivity in utilities, industry, transport and infrastructure globally. With a heritage spanning more than 130 years, it operates in more than 100 countries employing over 135,000 people.

29


DISRUPTIVE TECHNOLOGY standards required and the increasing demand for chicken products. One of Cargill’s focus areas for the facility was to install more efficient equipment and expand the facility’s cold storage capabilities. “With ABB’s food-safe design of electric motors for cold storage, the stainless steel washdown motors proves suitable for use in the food industry, or in any other applications where motors are commonly exposed to moisture, humidity and specific chemicals that cause corrosion,” maintains Milenovic, highlighting that flexibility and durability are enhanced allied to reduced operating expenses and increased uptime. “Food safety is the starting point, so when it comes to hygiene in the food manufacturing process, and especially for poultry, an unbroken cold chain is a must. We are proud to play a part in Cargill’s uncompromising approach to food quality and safety by delivering reliable and energy efficient technologies,” says Thachapong Chimklai, ABB’s Sales Manager for Thailand. With the food and beverage industry growing 45% annually on a global level, cold storage is a growing 30

April 2018

TATJANA MILENOVIC, ABB’s Global Marketing & Portfolio


o Manager

sub-segment that is being enhanced by digital disruption. “In recent years, digitalisation and automation have come to the fore, which is interesting as food and beverage has been lagging behind other industries, but the focus on reducing cost has made it more receptive to transformation,” believes Milenovic. “Companies are coming to us to share their concerns and plans to expand their IT infrastructure to support their cold storage vision. We carry out what we call a holistic plant assessment, looking at everything from utilities to cold storage. Together with the customer we start with the low hanging fruit for savings and look to the future with monitoring solutions with our digital expert group, which includes manufacturers, to look at common challenges and co-develop prototype solutions. We also work with OEMs and machine builders on utilities to support cold storage, with many MOUs in place on projects like these.” She concludes: “Our customers want to know what the factory of the future will look like so with our digital maturity assessment we can generate a roadmap to deliver results in months, not years.” 31


JOIN THE WORLD’S FASTEST GROW

READ THE LA

WWW.CONSTRUCT

H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S


WING CONSTRUCTION COMMUNITY

ATEST ISSUE

TIONGLOBAL.COM March 2018 • USA EDITION

Business process outsourcing and the digital revolution

HAVE YOU SEEN OUR OTHER TITLES?

CITY FOCUS

AUSTIN Top 10

Most expensive restaurants

®

BREAKING THE MOLD OF I.T

Andres Cubero, the Jetro Restaurant Depot’s firstever CIO on recognizing the importance of digitization


FRANCHISING

THE SOFT SELL

TRANQUINI TARGETS NEW MARKETS


Ahmed Elafifi, Founder and Chief Relaxation Officer of Austrian relaxation drink company Tranquini, has grand plans to help the world sip away its stress‌ Written by Ly n l e y O r a m


LOOK IN THE cool cabinet of any corner shop and you’ll see shelf after shelf of drinks. Iced versions of tea and coffee, fruit juices, water, and shelf after shelf of fizzy drinks. The UK carbonated beverages market is huge, and it is increasing. At the end of 2016 it was worth £14.9bn (around $20bn). By the end of 2017 it is estimated that it will jump to £15.5bn ($21.88bn). Carbonated beverages dominate the soft drink market. Entering the fray is a very new soft drink company based in Austria. Founded in 2014, and launching its first product only two years later, Tranquini is very much the new kid on the block. Its founder however has a lengthy track record in the soft drinks industry and he believes he has found a brand new, as yet untapped, drinks category. An Austrian-Egyptian, Ahmed Elafifi began his career over 25 years ago at Procter & Gamble in Cairo, Egypt and then Henkel, a move that took him to Europe where he eventually landed at Coca-Cola. While there, between 2011 and 2013, he led 36

April 2018

XXXXX XXXX XXX

Coca-Cola Hellenic’s Polish operation as Chairman and Managing Director responsible for four plants, over 3,000 staff and €1bn ($1.23bn) revenue. From there Elafifi moved to another market leader with high brand recognition, Red Bull, where he spent over ten years helping to grow the company. He completed the global roll out of the Red Bull business and brand in 58 countries,


FRANCHISING

AHMED ELAFIFI FOUNDER AND CHIEF RELAXATION OFFICER, TRANQUINI

‘ACCORDING TO A RECENT PWC REPORT TOTAL UK SPENDING ON HEALTHCARE, WELLNESS AND FITNESS IS FORECAST TO BE £209BN ($295BN) IN 2020’

growing its turnover from €40mn ($49.36mn) to €800mn ($987mn). Needing a change from corporate culture, Elafifi moved to BeBevCo Euro Asia. But it lacked the life balance that Elafifi thought he was seeking. “It was quite a change going to a private company, from a big corporation. But because there was a lot of restructuring to do I wasn’t able to have the freedom to develop ideas. And at a certain point I had to admit to myself that I was not enjoying this, I wanted to do something much more entrepreneurial. “I am a very happy person – I had a very happy upbringing. I just wasn’t the same anymore. So, the first idea that came to me was to create a 37


FRANCHISING positive drink. However, a drink that makes you positive – well obviously it’s not very credulous. But then it all starts from being relaxed. This makes you positive, and from there good things happen. That was the moment I created the proposition of Tranquini.” There is more to Elafifi’s vision. He wants to create a whole new drinks category. The plan is to make relaxation drinks a separate a beverage category, similar to energy drinks. “There is one cola, which is CocaCola, there is one energy drink, which is Red Bull. In beverages being first in a category is very important. Of course, it will continue to always be the case when people want refreshment they drink cola, when they want hydration they drink water, when they want energy they will drink an energy drink. But when they need to relax there is now Tranquini.” To achieve this market dominance before other relaxation drinks can take it, the company has had to ensure it was able to roll out its product in as many countries as possible, at the same time. Logistically this is a complex maneuver for a small company, and one that’s only just past its second birthday. So far Tranquini 38

April 2018

has launched in 40 countries. “The feedback from the different countries is very positive. At the moment that when you look at it there are lots of macro sources of stress now. There’s terrorism, there’s economic crisis, there are also what’s happening right now – there’s Trump. And there are also a lot of micro sources of stress so family stress, work, money, at home. It’s really one thing we can see in every country from


“OFFICES ARE A SOURCE OF DAILY STRESS, WHICH MEANS THERE ARE OCCASIONS FOR THE CONSUMPTION OF TRANQUINI DAILY” – Ahmed Elafifi, Founder and Chief Relaxation Officer, Tranquini

Hong Kong to Egypt to UK, Germany, Canada, and the US. People are spending a lot more money globally on ways to relax. There is of course alcohol, and pharmaceuticals. But the biggest increase is in activities. Everyone is practicing yoga now days, and every hotel has a spa. We simply need more balance in our lives.” Elafifi takes a segmented approach to ensuring their infrastructure isn’t overburdened in the process. The

company began selling in the UK first through the online store Amazon. According to Elafifi, it will launch in the greater London area and move out from there. Having already started with independent outlets it is in the process of discussions with key customers including Tesco, Waitrose, Sainsbury’s and Asda. Sales and marketing will target three crucial areas – work, home and relaxation activities. 39


FRANCHISING “Offices are a source of daily stress, which means there are occasions for the consumption of Tranquini daily,” Elafifi says. “There are lots of ways to relax and that’s perfectly fine. But there’s no simple solution that you can present in the office, at work. For example, say you are about to start a big presentation. Your heart is pounding, breathing is hard, and here’s a knot in the stomach. Hopefully people won’t take alcohol or illegal drugs before a big presentation. Now they can drink a Tranquini. With green tea and herbal extracts – all natural and good for them.” This is the low-lying fruit, a channel to market that’s quite easy to manage by selling through retail and convenience stores. To activate the brand, Tranquini is being launched with opportunities for shoppers and consumers to meet the brand in stores. “If they see it, they will understand what a relaxation drink is all about,” says Elafifi. The full campaign will be carried out on social and personal media, in order to get across the brand’s concept of a relaxed lifestyle. “We are communicating the brand, but also forming alliances with partners including those in the yoga industry, workplace beverage suppliers, and online opinion leaders and influencers.” It’s the lifestyle change that the UK, and other developed world countries, are going through at the moment that Elafifi hopes to cash in on. According to a recent PwC report total UK spending on healthcare, wellness and fitness is forecast to be some £209bn ($295bn) in 2020. 40

April 2018


“THERE IS ONE COL A, WHICH IS COCA-COLA, THERE IS ONE ENERGY DRINK, WHICH IS RED BULL. IN BEVERAGES BEING FIRST IN A CATEGORY IS VERY IMPORTANT” – Ahmed Elafifi, Founder and Chief Relaxation Officer, Tranquini


VISIT OUR WEBSITE

READ THE LATEST ISSUE


S U S TA I N A B I L I T Y A N D C S R

TACKLING TOMORROW’S

PROBLEMS TODAY


As the drinks industry continues its journey towards building a sustainable green action plan, we look at some businesses taking a step in the right direction

Written by MARK SPENCE


CREATING A VALUE chain that displays environmental awareness and an ability to confront complex, fundamental issues has long been something the drinks industry has strived for. Establishing a framework that addresses areas such as CO2 emissions, water waste reduction, transport, packaging and ethical sourcing while also satisfying consumer demand is no easy task. However, an increasing number of businesses are placing these aims at the heart of their mission statement. The Food and Drink Federation’s Ambition 2025 initiative outlines the industry’s desire to establish transformational change encompassing environmental sustainability as its core message. Elsewhere, the British Soft Drinks Association has also identified sustainability as a key issue and is a supporting signatory of the Waste and Resource Action Programme (WRAP)’s Courtauld Commitment 2025, where targets include reducing overall water usage in the industry by 20% by 2020. To build a clearer picture of the cutting-edge innovations deployed by businesses on the ground, FDF World 46 April 2018

MICHAEL REID

spoke to a selection of organisations about their desire to create an environmentally sound future.

The soft drinks industry Figures from Greenpeace show that plastic bottles are a huge contributor to ocean waste, with around 16mn of them dumped into the UK environment every day. That’s around 5.84trn plastic bottles per year. Clearly, drastic re-evaluation is required, and


S U S TA I N A B I L I T Y A N D C S R

GEMMA CROSS

some businesses have addressed this issue with remarkable results. One such company is the innovative global iced-drinks manufacturer Polar Krush, based in northeast England, which has pledged to remove all single-use plastic from its range by the end of the year. Michael Reid, Sales Director at Polar Krush, picks up its story: “We’ve always been ethical when it comes to environmental issues. We want to do

the best for the world. It’s our ethos.” Initially, Polar Krush encountered obstacles similar to many organisations in the beverage industry. Redi adds: “A few years ago, the tech was very new and to get the quality of product we wanted was tough. We wanted a cup that was plantbased but we still needed a product that worked. We needed something that was clear, long-lasting and could be printed on. As technology 47


S U S TA I N A B I L I T Y A N D C S R

‘Significantly, Anheuser-Busch InBev… recently announced its commitment to 2025 Sustainability Goals in smart agriculture, water stewardship, circular packaging and climate action’

has improved, we’ve been able to develop that side of things. It had got to the point where it was a real ethical issue for us. We’re now moving to a PLA (Polylactic Acid) cup that’s made from corn. It’s compatible with food waste so, even if it it isn’t recycled, it will biodegrade anyway.” Beyond moving cups, lids and straws (some figures suggest around 2.5bn plastic straws end up in London landfills alone) to PLA, Polar Krush has also removed sugar from its ingredients and does not use 48

April 2018

artificial colours or flavourings. It is also replacing the five-litre plastic containers its drinks are delivered in, to a 10-litre recycled cardboard ‘box and bag’ alternative that reduces the need for plastic by about 99%.

The coffee perspective The coffee industry is also a beacon of green initiative. Coffee roaster Extract, based in Bristol, UK, has built a business based on strong ethical and environmental ideals. “Businesses today have a responsibility to consider


WILLIAM CHASE

our roastery’s electricity is now from renewable sources and we started a partnership with GENeco who recycle our waste coffee grounds and chaff into bio-fertiliser and biomethane. Just three months of recycling this waste is the environmental equivalent of taking a car off the road for six months.”

A greener alcohol initiative

their environmental impact and take action to reduce, reuse or recycle wherever possible,” says Extract’s Marketing Manager, Gemma Cross. “It’s about doing what’s right, instead of what’s easy. To us, this means big things like retrofitting a custom-built afterburner to one of our roasters to eliminate VOCs (volatile organic compounds) from our emissions, but also the smaller things too, like choosing sustainable suppliers and reducing waste. We have recently moved energy supplier so 90% of

With production volumes in the region of billions of litres every year, it’s clear that alcoholic drink production requires vast amounts of raw materials. The process of making malted barley, which is used in beer and whisky for example, requires around 600 kWh of heating energy per tonne and global production stands at roughly 30mn tonnes per year. To put this into perspective, according to some sources, this requires a similar amount of energy as nuclear power plants across the world produce in two days. However, great efforts are being made to address some of these issues in the alcohol industry. UK firm Chase Distillery is at the vanguard of environmental initiatives. It has recently welcomed the addition of biomass boiler ‘Huxley’ which will fuel 49


the entire distillery. Huxley is powered solely by waste woodchip and energy crop planted on the Chase farm to feed the boiler and prevent any having to be delivered by transport. Founder William Chase says: “As well as significantly reducing our carbon footprint, this will ensure any wastage issues are being addressed at every part of the process.” Significantly, Anheuser-Busch InBev (AB InBev), the world’s leading brewer (owner of Budweiser, Corona and Stella Artois) also recently announced its commitment to 2025 Sustainability Goals in smart agriculture, water stewardship, circular packaging and climate action. Obviously, the drinks industry is employing inspired ways of dealing with some huge environmental issues, but it’s more than just a box-ticking exercise. For many, this is a personal struggle fuelled by a passion to create a better tomorrow. The final word goes to Michael Reid of Polar Krush: “From my office I look out onto a beautiful pond. Every day I look at it and think ‘how would I feel if I saw a Polar Krush cup bobbing around in it?’ We want to help our customers inherit a planet which doesn’t have today’s problems. The only time you should see a Polar Krush cup is when someone is drinking out of it.” 50

April 2018


S U S TA I N A B I L I T Y A N D C S R

Around 16mn plastic bottles are dumped into the UK environment each day – that’s around 5.84trn per year

51


TOP 10

TOP COCOA- PR

COUNTRIES IN

ACCORDING TO BUSINESS WIRE, THE WORTH $105.56BN IN 2016 AND IS PR BY 2020. WE TOOK A LOOK AT DATA B ORGANISATION AND THE WORLD AT COCOA-PRODUCING CO

Writ ten by SHA


P 10 RODUCING

N THE WORLD

E GLOBAL CHOCOLATE MARKET WAS OJECTED TO INCREASE TO $137.12BN BY THE UN FOOD AND AGRICULTURE TLAS LIST TO COMPILE THE TOP TEN OUNTRIES, BY OUTPUT:

ANNON LEWIS


TOP 10

10

09

DOMINICAN REPUBLIC

Despite demand for chocolate

The second-largest island in

increasing in recent years,

the Caribbean (second only to

cocoa-production in Mexico fell

Cuba), the Dominican Republic

approximately 50% between 2001

produced about 68,021 tonnes of

and 2009, according to Geo-Mexico.

cocoa beans in 2013, according

With the main cocoa-production

to World Atlas. The United Nations

taking place in Tabasco, which has

Development Programme (UNDP)

been such since the time of the

reported that this generated the

Olmecs 3,000 years ago, Mexico

country approximately $214mn

produces 82,000 tonnes of beans

in revenue. The types of cocoa

yearly. Currently, World Atlas reports

bean produced in the Dominican

that the country imports more cocoa

Republic are generally of two types:

than it exports, pointing to diseases

Sanchez, or Hispaniola. World

such as frosty pod as one of the

Atlas reports that until 2009, it was

reasons for the diminished crop.

the leading exporter of “Fairtrade-

However, in 2012 Hershey launched

certified� cocoa and remains highly

a $2.8mn initiative to help treat

rated. According to the UNDP,

dry rot and revitalise the Mexican

85% of cocoa in the country is

cocoa industry, although long term

farmed by small-scale farmers,

results are yet to be perceived.

and, in 2015, the government signed an agreement that would lead to jobs for 40,000 farmers directly, and for 350,000 people across the country indirectly.

56

April 2018

MEXICO


COCOA-PRODUCING COUNTRIES IN THE WORLD

08

ECUADOR

07

Archaeological studies have found

According to Andina, a Peruvian

that Ecuador could be home to

newspaper, the main cocoa-

the oldest cocoa industry, with

production areas, which make

cocoa beans produced 5,000

up 96% of Peru’s national output,

years ago. The cocoa bean quality

are in San Martin, Cusco, Junin,

is considered by many experts to

Ucayali, Juanuco, Ayacucho, and

be the best in the world and until

Amazones. In 2015, according to

the 20th century, Ecuador was the

the same source, Peru saw a rise

leading producer of cocoa beans.

in cocoa production by 13.7% to

Although it has been surpassed

95,000 tonnes. It then broke both

by other Latin and West African

record production and record

countries, it still produces an

hectares of cocoa-plantations

impressive 128,446 yearly tonnes

the following year with 108,000

of cocoa, according to World

tonnes of cocoa, and 129,842ha.

Atlas. All considered, Anecocoa

According to Confectionary

(Ecuador’s national association

News, 90% of Peruvian cocoa

of cocoa exporters) reports that

is exported. Andina places the

Ecuadorian cocoa beans only

benefit of the cocoa industry

compromise 5% of the world total.

as producing 9.9mn workdays,

PERU

for 90,000 families directly, and 480,000 people indirectly.

57


TOP 10

06

NIGERIA

05

Between 2013 and 2014, Nigeria

Although still the largest cocoa

increased cocoa production

producer in the Americas, producing

from 367,000 tonnes to 421,300,

256,186 tonnes of beans in 2013,

according to World Atlas. The

according to World Atlas, an

growth was made possible

endemic across the Brazil region

by innovations and increased

has caused its production value to

availability of agricultural technology,

fall drastically; Reuters reports the

as well as a rise in world cocoa

2016/2017 output as approximately

price and demand. However, in

150,000 tonnes. The disease, called

2015, the country saw a drastic

escoba de bruja, or witch’s broom,

decrease in production, moving it

has attacked several regions in

from the fourth largest producer of

Brazil, according to Choco-Story.

cocoa beans to the sixth, with an

However, the country is well set

output of 150,000 tonnes. Before

up for a recovery, as one of the

the discovery of oil in Nigeria in

reasons for the decrease was

the 1960s, the crop made up 50%

also a country-wide seasonal

of the country’s export. CNBC

drought that is now over.

reports that favourable weather conditions might be beneficial to the industry, bumping up its production for the year to between 300,000 and 320,000 tonnes.

58

April 2018

BRAZIL


COCOA-PRODUCING COUNTRIES IN THE WORLD

03

04

CAMEROON

Despite only being in the cocoa

According to Reuters, cocoa

industry since the 1980s, Indonesia

accounts for half of Cameroon’s

produced 777,500 tonnes of cocoa

basic product exports (other basic

beans in 2013, according to World

products being food, lumber,

Atlas. The country has about 1.5mn

minerals, and fish). World Atlas

hectares of cocoa plantations,

places its production output at

with its main regions of production

275,000 tonnes of cocoa beans.

in Sulawesi (which makes about

Although the government presented

approximately 75% of the country’s

plans to increase production to

output), North Sumatra, West

600,000 tonnes by 2020, Reuters

Java, Papua, and East Kalimantan.

reports that extreme weather

However, many of the cocoa trees

conditions and erratic rains are

are the same ones planted in the

taking a toll on the country’s

1980s, their age leading to a decline

potential to reach its goal. According

in productivity. Reuters reports

to Business in Cameroon, a large

that the Indonesian government

portion of the South-Western

launched a $350mn campaign in

cocoa crop undergoes no national

2009 to bolster production, but

system checks, as it is illegally

encountered limited success as the

transported to Nigeria. The

replanted trees were still disease-

government has faced pressure

prone, and had both poor roots

from stakeholders in the cocoa

and poor bean quality. One of the

business to fight this recent

failings of the campaign is its lack of

tendency after the information was

an educational components, since

revealed in a meeting in July 2017.

90-95% of the farms are owned by

INDONESIA

small-scale farmers (the rest being either state-held or private firms).

59


TOP 10

02 GHANA According to Ghana Business News (in 2000), Ghana’s production of cocoa stood at 450,000 tonnes. Although still a commendable amount, its production output had impressively doubled by the end of the ensuing decade, its production in 2013 standing at 835,466 tonnes, according to World Atlas. It is an important crop to the nation, permeating from being found on their 1 cedi coinage, to accounting for 8.2% of the country’s GDP and 30% of its export earnings in 2010, according to Ghana Business News. Despite a tumultuous history, from contributing 30-40% of the world’s total cocoa output in between 1911 and 1976, to needing intervention from the World Bank and International Monetary Fund in the 1980s, there are still 1.6mn Ghanaian people involved both directly and indirectly in the growing of cocoa.

60

April 2018


COCOA-PRODUCING COUNTRIES IN THE WORLD

CÔTE D’IVOIRE Topping the list by an impressive margin is Côte d’Ivoire, with a cocoa production output of 1,448,992 tonnes, accounting for 30% of the world’s cocoa supply, according to World Atlas. The industry stood at 900,000 tonnes of production in 1995, the increase related to the shift in cocoa production from the southeast to the southwest, according to Science Direct. Science Direct also reports that the average yield per hectare has remained consistent over the past 20 years, standing at 500-600 tonnes per ha. The cocoa industry is responsible for two thirds of the country’s trade revenue, according to World Atlas, although reports of child labour, harsh working conditions and no education, have been found as one of the tenets upon which the industry has been constructed.

01

61


E V E N T S & A S S O C I AT I O N S

Events FDF World casts an eye at the key food and beverage and industry events across the globe for this calendar year‌ Writ ten by STUART HODGE


E V E N T S & A S S O C I AT I O N S

Make sure you’re right up-to-date with the latest available technologies and innovations by visiting the must-attend events and conferences in the food and drink industries this year…

FOOD & DRINK EXPO

NEC Birmingham, UK 16-18 April

Join the UK’s most progressive food and drink professionals for five shows covering the complete supply chain. Food & Drink Expo will run alongside Foodex, The Ingredients Show, National Convenience Show and Farm Shop & Deli Show. The UK Food Shows attract buyers and decision makers from across the whole industry, who will converge to uncover the hottest trends, latest product launches and the industry’s vision for the future. www.foodanddrinkexpo.co.uk 64

April 2018


PACK EXPO EAST

Pennsylvania Convention Centre, Philadelphia, USA 16-18 April Pack Expo East’s 6,000 attendees, 400 exhibitors include teams from major CPGs in 40+ vertical industries, including managers, engineers, brand managers, package developers, sales and marketing professionals and others looking to keep up with technological change, improve production and enhance their brand. The show, located in Philadelphia, brings together approximately 400 leading suppliers of advanced packaging equipment, automation, robotics and controls, materials, containers, printing and labelling technologies and other supply chain solutions. www.packexpoeast.com

EuroSciCon

Holiday Inn, Aurelia, Rome, Italy 14-16 May Optimising food and nutritional demands with the help of recent technologies, EuroSciCon is the longest running independent life science events company with a predominantly academic client base. With a multi-professional and multi-speciality approach this event creates a unique experience that cannot be found with a specialist or commercial society. food-technology.euroscicon.com 65


E V E N T S & A S S O C I AT I O N S

SIAL China

Shanghai, China 16-18 May SIAL 2018 is Asia’s largest food innovation exhibition of the year, and is the fourth biggest food and beverage show globally, so this is a really major event on the calendar. This year will be the event’s fifth and organisers are looking to build on the incredible success last year, which saw numbers swell to over 100,000. More than 3,000 exhibitors are expected this year with innovation expected to come from a range of spaces including retail, catering, hotel and restaurant services, food services, the import/export trade and manufacturing. www.sialchina.com

66

April 2018

ACHEMA 2018 Frankfurt, Germany 11–15 June

Over 170,000 attendees are expected at ACHEMA, a world-renowned forum for chemical engineering, process engineering and biotechnology held every three years. There will be more than 4,000 from over 50 different countries presenting new products, processes and services ranging from laboratory equipment, pumps and analytical devices to packaging machinery, boilers and stirrers through to safety technology, materials and software, essentially covering the multiplicity of needs in the chemical, pharmaceutical and food production industries. One of the things which makes ACHEMA unique is the accompanying congress across the event, featuring 800 scientific lectures and numerous guest and partner events, complementing the wide range of themes covered. www.achema.de


Food Safety & Regulatory Measures 2018 Barcelona, Spain 11–12 June

With a theme of ‘Healthier the Food, Merrier the World’, the Food and Safety Regulatory Measures conference 2018 is very much headlined by three fascinating keynote speeches. Susana Sanchez-Gomez, University of Navarra, will present on ‘Food Quality Analysis Based in Multi-target Rapid Detection Techniques’; Dina Salman, from New Mexico State University, will discuss ‘Water Trading To Maximise Food Security Production Levels’; and American legal expert and food safety activist Bill Marler will talk through ‘Food Safety Lawsuits in the United States – A 25 Year Perspective’. foodsafety-hygiene.conferenceseries.com

ProPak Asia Bangkok 13–16 June

After celebrating its 25th anniversary last year, ProPak Asia is now very much a fixture on the annual conference calendar. ProPak is the international processing and packaging technology event for Asia, with over 40,000 attendees from more than 60 countries who gather to witness the latest in automation and technological advances for packaging in processing for both the food and beverage and other sectors. www.propakasia.com 67


E V E N T S & A S S O C I AT I O N S

IFT Food Expo Chicago, USA 15–18 July

With 1,200 exhibitors and 23,000 attendees, the IFT Food Expo is showing strong annual growth in its quest to create a community that explores food science and technology together over the space of the four days. Learning is also of paramount importance at the event, which has more than a hundred educational sessions developed by industry leaders at the cutting-edge of food science technology. www.iftevent.org

28th World Nutrition Congress Manila, Philippines 9-10 August

Promulgating Improved Innovations in Nutrition. Conference Series LLC warmly welcomes all the participants and contributors from worldwide to attend the “28th World Nutrition Congress”. World Nutrition 2018 includes keynote presentations, plenary sessions, young researcher talks, poster presentations, nutrition workshops and public health care session and the exhibition of dietary supplements. worldnutrition.conferenceseries.com 68

April 2018


22nd International Conference on Food Processing & Analysis Moscow, Russia 11–13 October

The 22nd annual conference on Food Processing and Analysis is centred around ‘Reinforcement on Modernisation Capability in Food Processing’. Topics covered, at what is sure to be a popular event, include innovation in food processing, nutrification, functional foods, nutrigenomics, industrial equipment, food safety and quality, preservation techniques, intelligent packaging, food waste management. foodprocessing.foodtechconferences.org

Food Brexit Conference 2018 London 1 November

Food Brexit 2018 is the second in a series of three events, providing the food & beverage industry with a platform to share strategy, in- sight and knowledge. The agenda is designed around the key issues that are critical to the industry, these include… • Update on negotiations and forecasts • Building new European and international partnerships • Voice of the regions: England, Scotland, Wales, Northern Ireland, and Ireland • Mitigating and managing risk – business resilience and the potential for a ‘Black Swan’ scenario • Brexit, the threat to food safety and security • Brexit’s global impact www.newfoodmagazine.com/food-brexit 69


W

re Resta

s Shop ant ur

he

®

®

B REAKING THE MOULD OF IT Jetro Restaurant Depot has undergone one of the biggest technology overhauls in the company’s 28-year history, but one thing has remained the same – its commitment to the customer experience


Written by Laura Mullan Produced by Andy Turner


J E T R O R E S TA U R A N T D E P O T

F

our years ago, the role of Chief Information Officer didn’t exist at Jetro Restaurant Depot. Since then, the wholesale food service provider has seen a complete root-and-branch transformation of its digital space. It has been a revamp that is helping the US-based company deliver what matters most to its customers – offering high-quality, fresh foods at a good price. In doing so, the company strives to provide extraordinary service to independent foodservice operators throughout the US. Driven by an inherent passion for programming and all things technical, this job is in the capable hands of Andres Cubero, the company’s firstever CIO. Recognizing the importance of digitization, Jetro Restaurant Depot has made significant strides in its technology department and it is these steps which have helped the company distinguish itself from its competitors. “We have made substantial investments in our technologies over the past several years and that has really given us a competitive edge,”

72

April 2018

observes Cubero. “It has allowed us to provide products to our stores in a timely manner, and keep our costs down. That’s been a great operating model for us – putting the right data in the hands of our buyers and our personnel to keep the inventory fresh and in-stock.” Technological overhaul Focusing on the company’s infrastructure and bandwidth, Cubero and his team have worked diligently to prepare Jetro Restaurant Depot for the digital age. One such initiative that Cubero is passionate about is the company’s plans to implement wi-fi in its warehouses. Over the next 18 months, Jetro Restaurant Depot is set to launch a series of web initiatives. These include a refresh of the company’s, website with the potential of providing delivery services in some of its regions, and a pilot concept of in-store pick-up services. “It’s a big initiative for the team,” says Cubero. “By the end of this year, we should be in more than 130 locations, and each one of our warehouses is on average, about


USA

Andres Cubero Chief Information Officer

Cubero joined Jetro in 1994 as a POS application developer. Over his tenure with the company, he played a major role within the IT department. His major accomplishments include designing and implementing the custom store system solutions that runs the store operations for Jetro and Restaurant Depot. He also designed and implemented the foundation of what would become the data warehousing environment for Jetro/Restaurant Depot.


MODERNSYSTEMS

MODERNIZE WITHOUT COMPROMISE

Modern Systems empowers efficiency, agility & competitive advantage through core application modernization.

ASSESSMENT AND PLANNING MAINFRAME MODERNIZATION COBOL MODERNIZATION PLATFORM MODERNIZATION MODERNIZATION PaaS

Modern Systems provides shared risk, end-to-end fixed-bid engagements which leverage legacy modernization solutions and a highly automated approach, allowing for custom levels of client collaboration via a cloud-based platform. LEARN MORE. CONTACT US: 6600 LBJ Freeway Dallas, TX 75240 206-395-4152

FOLLOW US:

www.modernsystems.com


USA

60,000 sq ft. It’s a lot of square footage and there’s a lot of equipment that we’d be looking at deploying for a wi-fi installation. It’s a huge initiative for us to cost justify. The challenge for my department is to create return on investment to justify the investment.” However, this is not just a shortterm vision for the company. In the future, Jetro Restaurant group is hoping to implement a series of omnichannel initiatives to help provide its customers with a seamless and integrated shopping experience. Transforming the customer experience One initiative that Jetro Restaurant Depot is exploring is the concept of self-checkout. By using scanner devices, customers could scan and

collect their products and then present the data to the sales team. Through this program, the food wholesaler hopes to quicken shopping times, improve efficiency and overall, enhance the end-user experience. “These new technologies aim to transform the customer experience,” Cubero says. “We’re unique in this space because we are a true brick-and-mortar, cash and carry wholesaler. This allows us to provide good quality products, at better prices, and at lower costs. “However, the nature of our shopping experience is much different than a traditional grocery store environment: our customers are pushing very large wagons with cases and cases of product,” he continues. “It’s a very heavy load

“I will say that the biggest challenge that I’ve had in this role has been sort of breaking the mold of IT” – Andres Cubero, Chief Information Officer

w w w. f d f w o r l d . c o m

75


that’s going through the front-end and really kind of a challenge for the cashiers to scan. Our goal is to really enhance that customer experience.” Data analytics The US company is implementing a series of data warehousing and store system solutions and, like many companies, Jetro Restaurant Depot is tapping into the power of data analytics to streamline its operations and bring its technologies to the next level. However, in an ever-evolving industry, Cubero and his team don’t underestimate the challenges that lie ahead. “We have a rich amount of data that we’re collecting right now, and so the challenge is being able to provide the data in an easily consumable way to the people who need to make those decisions, who need to look at the data,” says Cubero. “Having the right kind of presentation tools or the right database environment to allow our decision makers to use the data in an ad hoc fashion is really a challenge

7,000

Number of Employees at Jetro Restaurant Depot;

20

Employees in IT team that a lot of businesses face, and we’re not alone there. However, thanks to our latest digitization strategies we have a high degree of comfort about tackling these challenges.” Dealing with technical debt As technology continuously reinvents itself, legacy systems can build up quickly. When Cubero joined the team as CIO, the company had a technology footprint that was

w w w. f d f w o r l d . c o m

77


YOU KNOW IT. WE KNOW CLOUD CONNECTIVITY. TOGETHER, WE CAN DO BIG THINGS.

windstreamenterprise.com


USA

Training Meeting

over seven or eight years old. As a result, tackling the company’s technical debt was perhaps one of the most challenging hurdles Jetro Restaurant Depot has faced. “Like a lot of retailers, we had fallen into the trap of putting together a technical blueprint for our stores, but then didn’t revise it and change it,” explains Cubero. “When I became CIO and saw what we had been doing, I realized we really needed a revamp. “It’s been a challenge sometimes because of the cost involved, but we’ve seen a significant transformation. One of the very

first things I did was implement a hard refresh policy, where any equipment that’s five years or older in our warehouses goes through a hardware refresh - that includes servers, point-of-sale terminals, printers, the whole kit.” As well as this, the company did a point-of-sale refresh where it upgraded its point-of-sale equipment and introduced new scanners that reduce waiting times. On top of that, Jetro Restaurant Depot has been working closely with partners such as Modern Systems to transform its ERP system. “That’s a major project for us

w w w. f d f w o r l d . c o m

79


10 Melville Park Rd., Melville, NY 11747 Telephone: (631) 414-4800 Email: hello@marcumtechnology.com

m arcum techno lo gy. co m

Marcum Technology is a member of the Marcum Group of companies. Based in New York, we are a Technology & Managed Services Provider specializing in IT Services, Cyber Security, Software Development, Digital Marketing, Staffing, and Telecom. LEARN MORE


USA

“These new technologies aim to really transform the customer experience” – Andres Cubero, Chief Information Officer

because it’s been a bottleneck on the technology for the last several years,” comments Cubero. “Through this partnership, we should be able to get off that framework and take our systems to the next level.” Strong industry ties The team at Jetro Restaurant Depot has played no small part in this impressive transformation. With a small IT team of 20, split evenly between field support and developers, the company has firmly cemented itself as a key player in the food wholesale space. Collaboration has been a key part of Jetro Restaurant Depot’s success and Cubero believes that this philosophy should also extend to the firm’s strong supplier relationships. “For us, it’s a team effort with our partners,” observes Cubero. “On the infrastructure side of our transformation, Dell has been a big partner of ours and from a consulting and data center perspective, Marcum Technologies has been really key. Illinois Wholesale has also been a really key player for our point-of-sale initiatives, and looking

w w w. f d f w o r l d . c o m

81


J E T R O R E S TA U R A N T D E P O T

‘130 LOCATIONS BY THE END OF THE YEAR – CUBERO’S PREDICTION FOR JETRO RESTAURANT DEPOT’S FOOTPRINT’


USA

at mobile devices and handheld units for some of our initiatives. “I think it’s very important for CIOs to look at the landscape of vendors out there and really explore their options. It’s worth the extra research time to pit the vendors against each other, look at what their offerings are, and make the best decisions for the company from both a technology and cost point of view. That’s been my tactic. It has exposed me to a lot of different vendors and different solutions, and I find that effort has given me the chance to learn more about the latest technologies and trends.”

he

re Resta

s Shop ant ur

W

On track for growth Jetro Restaurant Depot has made a strong name for itself in the wholesale food market, offering high-quality yet cost-conscious products for independent restaurants, caterers and non-profits alike. “Looking forward, I predict we will see substantial changes internally,” he says. “We’re going to be revamping

our business practices by adopting agile project management concepts because it’s vital that we make that transition forward to kind of change and respond to market needs quicker. With our upcoming initiatives, I see our customer experience getting even better. For us, it’s about maturing our practices overall, whether it’s in the cybersecurity space, or the project management space, or the software development practices as a whole. Over the past several years, Jetro Restaurant Depot has completely renovated its technology platform and elevated the firm to new heights. The company’s entire IT infrastructure and legacy systems have been overhauled, but perhaps its greatest achievement was its mammoth culture change. “I will say that the biggest challenge that I’ve had in this role has been sort of breaking the mold of IT,” reflects Cubero. “It’s important to bridge the of gap and see IT not as a serviceonly function of the business, but as a key decision-making partner.”

®

®

w w w. f d f w o r l d . c o m

83


Written by Laura Mullan Produced by Andy Turner


TRANSPORTING

FOOD TESTING TO THE

DIGITAL

AGE

With over 100 laboratories spanning 22 countries, Mérieux NutriSciences is ushering in a new era of innovation with state-of-the-art food testing technologies


MÉRIEUX NUTRISCIENCES

I

n a digital age saturated with data and information, transparency has emerged as the must-have ingredient for any successful consumer goods company. Whether its contaminants, pathogens, insecticides or pesticides, consumers are increasingly questioning what is in their food and consumer products. This is where Mérieux NutriSciences fills a critical gap in the market. As part of Institut Mérieux, one core mission drives operations at Mérieux NutriSciences – the desire to protect consumers’ health across the globe. To this end, the US-based company delivers a wide range of food safety and quality services to the food and nutrition, agrochemicals, pharma, and cosmetics industries. Responding to transparency and globalisation As companies are compelled to work towards a more globalised and transparent future, Agnès Houpiart-Dupré, Vice President Digital Solutions, says that digitisation is helping Mérieux NutriSciences usher in a new era in the food

86

April 2018

“With social media, any event, especially negative ones, can spread quickly. Yesterday it might be a local issue but tomorrow it will be global” – Agnès Houpiart-Dupré, Vice President Digital Solutions

testing and consulting sector. “I would say investing in technology and digitisation is even more important than ever,” says Houpiart-Dupré. “With social media, any event, especially negative ones, can spread quickly. Yesterday it might have been a local issue but tomorrow it will be global.


USA

Our Solutions to Ensure Food Safety & Quality

Auditing services “Consumers want more transparency,” she continues. “They want to know what is in their food. They want to know where it comes from and that’s where technology comes in because, without technology, you don’t have a clear vision of every single action that happens to your food throughout the supply chain. “Our customers are also becoming

more global. They are selling their products abroad and have more suppliers abroad, but they want to ensure that they have the same level of quality. This is really a big challenge and one which you cannot overcome without technology.” Recognising the importance of digitisation in the food testing space, Mérieux NutriSciences has embarked on an ambitious digital

w w w. f d f w o r l d . c o m

87


Edward Rybicki Global Chief Information Officer

“For us, technology has definitely taken a leap beyond automating a process, it’s really at the heart of what we’re doing” 88

April 2018


USA

transformation journey which has seen a complete root-and-branch transformation of its capabilities. “More and more we’re seeing technology at the forefront of, not just how we’re doing our tests, but how we’re tracking the results, the quality of the results, the analysis that we can provide, and at some point even the predictive analysis we can provide,” says Edward Rybicki, Global Chief Information Officer. “For us, technology has definitely taken a leap beyond automating a process. It’s really at the heart of what we’re doing.” Digital evolution Experiencing what Rybicki calls an “inside-out transformation,” this digital transformation is having a far-reaching impact on both employees and customers alike. For customers who are moving away from a detection to a prevention model, Mérieux NutriSciences’ technologies are helping help them anticipate tomorrow’s challenges. The company has accelerated its digital focus by creating a business

unit dedicated to Digital Solutions which offers three core strands of digital services - EnviroMap, QualMap and myMXNS. Featuring state-of-the-art technology, these platforms go beyond traditional testing to offer real time access to information, transparency and data management to clients which are helping companies protect their brands and the consumers. In parallel to this, the company is also driving internal efficiency by using technological platforms such as Labware, Freshservice, and Leanix. As a result, all of these innovative platforms culminate to promote a consistent global level of food safety and quality. Leveraging data analytics Perhaps one of the biggest areas of focus for Mérieux NutriSciences has been data analytics. By building an integrated data management platform, the company’s enhanced data analytics is helping it grow exponentially. “Internally, data and analytics have certainly been an area of

w w w. f d f w o r l d . c o m

89


LABWARE LIMS and ELN together in a single integrated software platform. A laboratory automation solution for the entire enterprise.

“ LabWare has assisted with turning our laboratory into a modern and professional facility. We have the majority of our scientific instruments interfaced with LIMS. Our productivity increased by 40%. — Stephen Derham, Department Head, Sibelco

www.labware.com


USA

concentration, especially because it is revolutionising the company’s we recognise that we don’t produce culture and the way it does business. a product, we produce information,” “We’re in the process of a major says Rybicki. “Now we’re taking architectural shift,” Rybicki states. that data and building a data “Like many companies, we’re shifting management platform which is to the cloud. We’re working on core at the core of our operations.” platforms that are helping us respond But data isn’t just about providing to changing needs quickly. In the past, numbers. It’s about providing data in we had a lot of structured, homegrown a digestible way that solutions that took a allows companies lot of time, effort and to interpret what this money to adapt. Now means for them on we’re able to shift a practical basis. much more quickly. “It’s more about “I think we’ve Mérieux NutriSciences providing them with also seen a shift employs 7,000 people the right statistical in the way our and has over 100 analytics so that customer sees us,” laboratories spanning they can understand he continues. “In the 22 countries when, they have a food industry, things contamination, for are changing rapidly. example, where it Processes used came from, and what they should do to be done manually through older to fix it,” explains Houpiart-Dupré. technologies like Excel, and our customers realise that they can’t Transforming the customercontinue like that forever. They are employee dynamic happy to find a partner that has started This technological overhaul is this digital transformation because not only transforming Mérieux they can share with us, they can ask NutriSciences digital infrastructure, questions, and they feel supported.”

w w w. f d f w o r l d . c o m

93


MÉRIEUX NUTRISCIENCES

Crete laboratory

IS A SUBSIDIARY OF INSTITUT MÉRIEUX, WHICH WAS FOUNDED BY MARCEL MÉRIEUX, A STUDENT OF WORLD-RENOWNED SCIENTISTS, LOUIS PASTEUR AND EMILE ROUX.

94

April 2018


USA

Mérieux NutriSciences: Our Science, Your Innovation.

Responding to consumer needs As industries become more global and supply chains more intricate, more variables and concerns can arise in the food testing space. With its detailed data analytics, Mérieux NutriSciences is able to answer the very specific needs and requests of its customers, including those they may not have even considered yet. “Thanks to our digital solutions, we are able to create an advisory

relationship with our customers because we have better visibility and a data-driven approach,” says Houpiart-Dupré. “It allows us to be much more proactive in understanding our customers needs.” Attracting and retaining talent and expertise By all accounts, the company’s digital transformation journey has been an impressive one, which has

w w w. f d f w o r l d . c o m

95


“When our customers within the food industry ask themselves what partner they want to work with to protect consumer health I want them to think of us” – Agnès Houpiart-Dupré, Vice President Digital Solutions

96

April 2018

helped to protect consumers’ health across the globe. This technological transformation is just one element of the company’s 50-year journey. The Institut Mérieux was founded in 1897 by Marcel Mérieux, a student of world-renowned scientists Louis Pasteur and Emile Roux. With a wealth of scientific expertise, the company commits its experience in industrial biology to serve medicine and public health services across the globe. As a subsidiary of this historic


USA

institution, Mérieux NutriSciences recognises that it owes its advancement to the expertise and talent of its staff. But with over 100 laboratories spanning 22 countries, how does the company ensure streamlined management and work culture? “We try to have a federated approach, where there is one IT culture and one set of values that we try to live and act by as a team,” explains Rybicki. “However, we recognise the differences in the markets and work cultures because attracting and retaining a person in India is a lot different than in the US, for example. This approach makes sure that we’re attracting and keeping the right people.” Close industry ties What’s more, the company also promotes strong cooperation within the industry by working with external partners which have the skills and competencies needed to work on new solutions. “We have worked closely with Mirketa to help us develop our

customer portal and Centric is also helping us build our QualMap platform,” notes Houpiart-Dupré. “We are also developing great partnerships with Amazon, Google and Salesforce as well,” adds Rybicki. “I think more of our services will migrate to these platforms. We have good partnerships with some consulting firms, such as West Monroe Partners.” A market leader By tapping into the latest industry know-how, revamping its digital infrastructure and realising the potential of new technologies, Mérieux NutriSciences has firmly cemented itself as a leader in the food safety and quality landscape. Thanks to its strong bimodal IT strategy, the company has truly revolutionised how it interacts with employees and customers, and so both Rybicki and Houpiart-Dupré remain optimistic about the company’s future legacy. “While we are already a leader in our industry, in a few years’ time, I see us as a strengthening our position in consumer product testing, with food

w w w. f d f w o r l d . c o m

97


MÉRIEUX NUTRISCIENCES

98

April 2018


Merieux 50th anniversary

being at the forefront,” reflects Rybicki. “I see us being a truly digital company leading the way in using data to offer better analysis and products. I see us helping global food and product companies make sure that what they are providing their consumers is going to be, not only sustainable and profitable but, of course, safe.” “When our customers within the food industry ask themselves what partner they want to work with to protect consumer health, I want them to think of us,” Houpiart-Dupré concludes.

w w w. f d f w o r l d . c o m

99


COMBINING LOCAL FLAVOUR WITH GLOBAL PRESTIGE Written by Dale Benton Produced by Glen White


AS YUM! BRANDS EXPANDS IN THE EMERGING AFRICAN QSR MARKET, DELIVERING SUCCESS COMES WITH A LOCAL TOUCH

W

ith more than 45,000 restaurants in over 135 countries and territories, Yum! Brands is truly a pioneer in the global quick service restaurant (QSR) market. Since spinning off from PepsiCo in 1997, Yum! Brands has continuously developed successful food franchises such as Taco Bell, KFC and Pizza Hut into markets spanning the globe. Focusing on emerging markets such as the North African region (including Morocco, Egypt and Tunisia) and Sub-Saharan Africa (including South Africa) has been crucial to the growth of these brands. The African continent in 2018 is one of opportunity and growth, and as Yum! Brands looks to further develop the Pizza Hut brand it has called upon the services of Ewan Davenport, Yum! Brands General Manager for Pizza Hut Africa. “With this development of Pizza

102

April 2018

Hut, it’s an incredibly exciting growth pipeline,” he says. “We are not just growing Pizza Hut as a global brand, we are to a certain extent growing pizza as a food category in itself because it’s not as prevalent in Africa as it is across the world.” Davenport understands the African market, having worked with SABMiller. It is this experience in the delivery of global and regional brands into local markets that has provided Davenport with a key understanding of the market dynamics and, more importantly, how these global practices and brands will and will not be successfully received. “In Africa, affordability will always be a challenge, be it in the pizza category or the beer category. It’s not always going to be readily accessible to everybody,” he says. “This has had a huge influence on the value chain because we are trying to deliver pizzas to the high standards


AFRICA

“WE’VE FOUND THAT OUR BRANDS HAVE BEEN AT THEIR MOST SUCCESSFUL WHEN THEY HAVE A REALLY STRONG LOCAL OPERATOR WHO KNOWS HOW COMMERCE WORKS AND KNOWS HOW THE AFRICAN MARKET WORKS” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands

w w w. f d f w o r l d . c o m

103


YUM! (PIZZA HUT)

of the Pizza Hut global brand.� At the time of writing, Pizza Hut operates over 200 restaurants across the entire African continent, with the intention of maintaining a steady momentum of new openings. The company recently opened its 100th store in the Sub-Saharan Africa region, which includes South Africa, and has bold growth plans in the region over the next several years. As a global brand with global

104

April 2018

standards that must be adhered to across every franchise in every country, Pizza Hut focuses on four growth drivers to deliver unrivalled success. Distinctive, relevant and easy bands, unmatched franchise operating capability, bold restaurant development and unrivalled culture and talent; these are the four core values that distinguish the company and are crucial


AFRICA

“ONE THING THE COMPANY DOES NOT COMPROMISE, NO MATTER WHERE IT IS IN THE WORLD, IS FOOD SAFETY STANDARDS. WE HAVE WORLD CLASS FOOD SAFETY PROCEDURES AND ALL OF OUR FOOD AND OUR INGREDIENTS AND SUPPLIERS ARE HELD TO THE HIGHEST OF STANDARDS” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands to tapping into the high growth opportunity African QSR market. For Davenport, the key to success has been and will continue to be an uncompromising approach to delivering brands. “One thing the company does not compromise, no matter where it is in the world, is our food safety standards,” he says. “We have world class food safety procedures and all of our food and our ingredients and

suppliers are held to the highest of standards. This does not change here in Africa; we expect our suppliers to meet the same standards that Pizza Hut meets anywhere else in the world.” As a franchiser, operating in multiple countries brings with it challenges. Different markets, different consumers with different tastes and different suppliers.

w w w. f d f w o r l d . c o m

105


YUM! (PIZZA HUT)

“IT’S AN INCREDIBLY EXCITING TIME RIGHT NOW FOR PIZZA HUT… NOT JUST FROM A GROWTH PERSPECTIVE, BUT THE EXCITEMENT AND ACCELERATION FROM OUR FRANCHISEES AND PARTNERS RUNNING ALONGSIDE SOME INCREDIBLE WORK WE WILL DO WITH THE COMMUNITY” – Ewan Davenport, General Manager, Africa, Pizza Hut – Yum! Brands

THE PERFECT DELIVERY

Together, we enable seamless and sustainable end to end value chain solutions driven by our customer’s unique environment, through excellence in our people, our values and systems as the leading logistics multi-temp provider in Africa.

PASSION

INTEGRITY

PURPOSE

INNOVATION

CARING PERSONALLY

EXCELLENCE

CORPORATE OFFICE: WATERFALL DISTRIBUTION CAMPUS, 2 BRIDAL VEIL RD, MIDRAND DISTRIBUTION CENTRES: CAPE TOWN | DURBAN | CENTURION | JOHANNESBURG | MIDRAND | PORT ELIZABETH DIGISTICS.CO.ZA | 011 663 3500 | INFORMATION@DIGISTICS.CO.ZA

106

April 2018


AFRICA

“We try to localise as much as possible in Africa from a purely supply and sourcing perspective,” says Davenport. “So, we work with suppliers in the countries we operate in, which is a significant contributor to local jobs, and we work in partnership to help develop local supply capability.” As the company doesn’t look to compromise, Davenport does admit that it operates to an 80/20 rule, remaining open to some level of local adaptation to align with regional and local flavours. “But we absolutely don’t stray too far from the global Pizza Hut experience,” he says. “People are coming to Pizza Hut to have Pizza Hut after all.” Say the name Pizza Hut anywhere in the world and a recognisable, consistent and ultimately successful brand comes to mind. So when Davenport speaks of people heading to Pizza Hut because they recognise that brand, how does that work across a continent where pizza is not as popular as other QSR brands? This is where technology, particularly accessibility, proves

crucial to Pizza Hut. In the modern world, the consumer has technology at his or her fingertips, is digitally enabled in almost every aspect of their life and, more importantly, demands that same level of digital accessibility from brands such as Pizza Hut. “One of our big strategies across Africa is how can we expand and lead the charge in terms of digital access to our pizzas,” he says. “Online ordering is essential as mobile penetration is much greater than people realise in this region and Africa has a number of online tools that are relatively underutilised. “There is an opportunity, and as far as Pizza Hut goes, we will expand our online presence and ordering accessibility significantly over the next three months.” Embarking on an expansive growth journey into a new geography, a new market that is already densely populated, cannot be achieved alone. As Pizza Hut works with local partners, in some cases growing their capabilities, Davenport cannot stress enough how important it is to have these local partners and establish

w w w. f d f w o r l d . c o m

107


YUM! (PIZZA HUT)

strong working relationships. “We are an almost entirely franchised organisation across the African continent – we ultimately rely on working with local franchise partners to develop our brand,” he says. “We guide our partners from our Restaurant Support Centre and help our franchisees in their dayto-day operations and growth. “As an entity coming into a country, it’s very easy to try and establish a business without fully understanding the inner workings of that country. We’ve found that our brands have been at their most successful when they have a really strong local operator to partner with, who knows how commerce works within that country and also understands the African trading environment.” That role of a foreign, global brand setting foot into the African continent and trying to cement itself as a leader, brings with it a sense of responsibility. Pizza Hut, provides significant working opportunities to local people and extensive training programmes. As a business, it’s entirely focused on people.

108

April 2018

This is something that is close to Davenport’s heart. “We do put a massive amount of emphasis on generating and propagating our culture. And as part of that culture, training and looking after our people is at the heart of it,” he says. “As a company we recognise hard work and we believe that positive reinforcement and recognition will encourage people to continue doing the right thing and obviously continue the growth of the Pizza Hut brand as well. The face of our brand is in fact the many incredible team members operating throughout our restaurants. If we accelerate a positive culture built around respect, recognition and passion for our brand our customers will feel the love too.” But it’s not just growing an internal culture. Pizza Hut is a strong ambassador for empowering the local community. Through an initiative called A Slice of Africa, a number of staff members will embark on a journey to visit a Pizza Hut store in every country across its entire African footprint and deliver Red


AFRICA

Ewan Davenport General Manager, Africa, Pizza Hut - Yum! brands

w w w. f d f w o r l d . c o m

109


YUM! (PIZZA HUT)

110

April 2018


AFRICA

Reading boxes to African children, kicking off Pizza Hut Africa’s Literacy Project. These boxes are Pizza Hut branded pizza boxes containing books and reading materials, as Pizza Hut looks to get more children reading across the globe. For Davenport, that is the real endgame, not just exponential growth as a brand but growth as a key contributor to the African continent. “It’s an incredibly exciting time right now for Pizza Hut,” he says. “Not just from a growth perspective, but the excitement and acceleration from our franchisees and partners running alongside some incredible work we do to make a difference within the communities we serve. “That for me, is one of the most fulfilling things I can do and the pinnacle of my entire career so far, and I’m very grateful to be a part of it.”

w w w. f d f w o r l d . c o m

111


HOW FOR THE ASIAN QSR MARKET Written by Catherine Sturman Produced by Alistair West


113


REGIONAL DIRECTOR OF OPERATIONS, DILIP ROUSSENALY, DISCUSSES HIS WORK TO ENSURE KFC REMAINS DISTINCTIVE AND RELEVANT ACROSS ITS ASIA DIVISION, INCLUDING ITS PLANS TO GROW ITS DELIVERY SERVICE

F

or over 70 years, KFC has captured the hearts (and appetites) of loyal customers. A subsidiary of YUM! Brands, it has harnessed a number of growth drivers to ensure it remains a leading restaurant brand of choice for the future. Opening up to seven new restaurants per day on average, KFC is presently the second-largest fast-food brand worldwide, and the first Western restaurant chain to enter the Chinese market. Accepting the challenge of

114

April 2018

undertaking KFC’s aggressive growth strategy in Singapore, Regional Director of Operations Dilip Roussenaly has worked to build a strong brand which listens to the needs of its customers, whilst supporting franchisees under KFC’s Asia division. Roussenaly was previously at KFC France, where he joined from the consulting firm McKinsey & Company. “We believe that our brands have a huge potential for growth globally. As part of this, there is a significant opportunity for KFC in Asia,” he says.


ASIA

“We should be able to interact with our customers seamlessly across all channels, particularly digital” DILIP ROUSSENALY Regional Director

By the end of 2018, YUM!’s goal is to become 98% franchised in a bid to increasingly boost efficiencies across its operations. With this in mind, Roussenaly has strived to implement best practices and equip franchisees with essential systems, knowledge and processes to lead the way within the food and beverage industry across Asia. “We are becoming more focused, more efficient,” says Roussenaly, then detailing Yum!’s four pillars to drive growth. “Firstly, by continually innovating, building distinctive, relevant and easy brands. Secondly, by developing unmatched franchise operating capability, to deliver excellent customer experience”, he adds.

w w w. f d f w o r l d . c o m

115


Creating innovation together. Creating quality together. Creating consistency together.

It’s better with Griffith. We’re a caring, creative product development partner specializing in food ingredients such as seasonings, sauces, coatings and more. We’re dedicated to collaborating with our customers to satisfy consumers in ways that respect and sustain the world. We’re proud to be the 2017 KFC Asia Supplier of the Year.

www.griffithfoods.com © 2018 Griffith Foods


ASIA

“Thirdly, driving bold restaurant development, consistently seeking to strengthen our franchisees’ business model. Ultimately, this is what will fuel their appetites for development. There are definitely opportunities to build more KFC stores in Asia,” notes Roussenaly. “Lastly, growing our unrivalled culture and talent, housing first-rate people who drive great results.” Increased accessibility Consumer demands for food that is quick, tasty and convenient has evolved rapidly. Attracting a

significant chunk of this market in Asia is something which KFC has maintained despite rampant competition, with an increased awareness that consumers are leading increasingly busy lifestyles, and are continually looking for new products and services which are accessible, high quality and cost-efficient. However, the emergence of new digital tools has disrupted the way businesses interact with customers. “We should be able to interact with our customers seamlessly across all channels, particularly VIDEO:

Colonel’s Meal with Jr. Sundae feat Colonel Jr.

w w w. f d f w o r l d . c o m

117


KFC (YUM! BRANDS)

THE RESTAURANT

OF THE FUTURE

HAS ARRIVED A modular, end-to-end platform to manage operations from preparation to delivery.

Reduce labor costs Improve delivery times Ensure food is always delivered hot and fresh Reduce customer complaints

AUTOMATED KITCHEN FLOW

COMPUTER VISION CONTROL

PACKING STATION OPTIMIZATION

PRIORITIZE DELIVERY & DISPATCH

Engage with your customers Management control via real-time visibility and alerts For more information:

MANAGE DRIVER POOL

DRIVER SHARING AND TRACKING

ENGAGE WITH CUSTOMERS

DATA VISUALIZATION AND ALERTS

www.dragontailsystems.com


ASIA

digital. Convenience is really winning, even over the product itself, and has impacted the way customers are accessing services and products,” explains Roussenaly. “Growing demand for home delivery is one of the biggest trends currently shaping the industry.” Whilst delivery across the food and beverage industry has risen in prominence, KFC aims to retain a leading position in Asia. VIDEO (Above left): The long wait

is over. Ladies and gentlemen, we are pleased to announce KFC’s First Filipino Colonel: Mr. Ronaldo Valdez!

“In Asia specifically, the healthy disposable income growth is fueled by continued low inflation and increases in minimum wage in many countries. We are really committed to growing our business together with our franchisee partners. In fact, in Asia we’re aiming at doubling our delivery business over the next few years,” he says. Enhanced capabilities “Our three main initiatives to grow Delivery are straight-forward,” explains Roussenaly. “One is expanding our delivery store base, and of course, working closely with aggregators. “Aggregators are disrupting the landscape. They provide the convenience of a one-stop shop to customers. From an industry standpoint, the disruption is more profound than what happened with Booking.com for example, as aggregators handle customers from order taking to actual delivery. This is certainly an opportunity for us. In Asia, we will be offering

w w w. f d f w o r l d . c o m

119


KFC (YUM! BRANDS)

“We share strong core values and have a great culture. We have operators in each country who love the brands and, obviously, our customers love the brand as well” DILIP ROUSSENALY Regional Director

120

April 2018 Photo credit: André Thoraval


ASIA

access to KFC though delivery in more and more areas,” he adds. Noticeably, YUM! has recently entered a partnership with US online and mobile food ordering company Grubhub, which will guarantee further growth in sales across both YUM!’s KFC and Taco Bell restaurants. Through the deal, the business will also acquire $200mn of common stock at Grubhub, which will further YUM!’s online presence, enhance its ordering and delivery experience for its customers, and also drive profitable growth for its US franchisees. “Number two is stepping up our own online capabilities, to provide the best ordering experience for customers as well as strong value,” says Roussenaly. “Thirdly, we are upgrading our operational capabilities to deliver a frictionless experience for customers. For example, we are adopting delivery management systems to become more efficient in fleet management and deliver hot food faster to our customers.”

People focused culture “Since day 1, I’ve been amazed by the unique people-focused culture that YUM! Has,” Roussenaly continues. “This culture is spread across all levels at YUM!, from exceptional training and development at store level, all the way to senior management level. Even our CEO is very involved into culture training all across the globe.” Through its people-first culture and exceptional customer service, Roussenaly firmly believes this will continue to put YUM! on a growth trajectory. “We have amazingly exceptional people in our ranks, both on the YUM! and franchisee side,” he concludes. “We share strong core values and have a great culture. We have operators in each country who love the brands and, obviously, our customers love the brand as well. We have an authentic brand which sets us apart, and we have a great tasting product.”

www.yum.com w w w. f d f w o r l d . c o m

121


OPTIMISING WATER USE TO INCREASE CROP PRODUCTIVITY Netafim Mexico’s accomplishments within the food industry deliver tangible results in the fight against food, water and farmland scarcity


Written by Mateo Rafael Tablado Produced by Lucy Verde Interviewee Ricardo Medina, CEO for Netafim TM in Mexico and Central America


N E TA F I M T M M É X I C O

N

etafim products and farming solutions were introduced to Mexico more than 30 years ago, with the Israeli global firm finally establishing branch offices in the country during the mid-1990s. Throughout all this time, the firm has provided irrigation systems with the purpose of optimising water usage and increasing farming lands’ productivity through products and services able to meet demands of an agricultural sector in constant evolution. Half a century’s worth of knowledge and specialised developments brought into the country and Central America via the Mexican branch has developed into a diversified portfolio, able to reach new clients and different industries. For instance, the mining sector benefits from all that Netafim has to offer for heap leaching processes. Mexico’s terrain is the ideal soil for Netafim, both for spreading its knowhow as well as creating and optimising the best conditions for growing cereals, berries, fruits, orchard, fodder and other vegetables either on open field or in greenhouses with controlled conditions. This has resulted in Netafim México earning an accolade from the corporation as the second best affiliate globally, only being surpassed by Turkey. Efforts leading to this and other achievements are led by Ricardo Medina, an accountant graduated from ITESM (Monterrey Institute of Technology and Higher Education) who also earned a Master’s in this discipline from the same college, as well

126

April 2018


L AT I N A M E R I C A

“WE MUST SUSTAIN THE SAME EFFORTS WE HAVE PERFORMED FOCUSING ON HIGH VALUE CROPS, DIGITAL FARMING AND SUPPORTING PRODUCERS ABLE TO EXPORT” – Ricardo Medina, CEO for Netafim in Mexico and Central America

w w w. f d f w o r l d . c o m

127


N E TA F I M T M M É X I C O

Ricardo Medina CEO for Netafim in Mexico and Central America

as a Business Management Certificate from Harvard. Medina is currently taking the AD2 senior management diploma course from IPADE (PanAmerican Institute for High Business Direction).

128

April 2018

Current situation of the food and farming sector At the global level, the food industry is currently facing situations such as its workforce becoming scarce due to migration toward cities, water is also becoming scarce, and the reduction of fertile ground due to land’s erosion and its use for industrial purposes and housing demands. On the other hand, a growing number of consumers are now demanding healthier food with high quality ingredients. These factors combined increase Netafim’s value in contributing to profitable farming investments, making it possible for consumers to obtain nutrition from quality foods, even as natural resources able to satisfy these demands become scarcer. A better use for water and increased agricultural performance Netafim México is a pioneering company in irrigation technology. Its drip irrigation systems provide sustainable operations with 95% efficiency and minimal wastage, vastly superior to the 50% efficiency


L AT I N A M E R I C A

NetafimTM, el mejor socio del campo

of traditional irrigation methods. This results in tangible benefits such as an increased productivity within the same surface, improving profitability. Technical support from Netafim also affects the rate of success in obtaining high quality crops. Global contribution from México From its headquarters in Israel, Netafim’s developed solutions and technology are exported to support food and farming sectors globally. And the Mexican operation has earned notoriety and an excellent

reputation across the corporation for its contributions in developing solutions and techniques amid the country’s territory offers a wide variety in kinds of soil and vegetable species. A recent demand for blueberries is attracting interest from investors and farmers whose immediate reference for growing this product is Netafim Mexico. “This is a high value crop requiring very specific care for irrigation, monitoring and fertiliser dosing; the Mexico affiliate has developed groundbreaking solutions before any other

w w w. f d f w o r l d . c o m

129


N E TA F I M T M M É X I C O

“THE MEXICO AFFILIATE HAS DEVELOPED GROUND-BREAKING SOLUTIONS BEFORE ANY OTHER COMPANY WORLDWIDE” – Ricardo Medina, CEO for Netafim in Mexico and Central America

130

April 2018


L AT I N A M E R I C A

company worldwide,” Medina states. Netafim Mexico is also a leader in hydroponic and organic crops, both in high demand during the last few years. New products and digital farming The company’s farming solution portfolio grew during 2017 as new products were launched at the yearly Expo AgroAlimentaria Guanajuato (food and farming exhibition). The NetaJet 4G ‘fertigation’ system became a showstopper. This machinery automatically adds fertilisers during irrigation, rapidly balancing pH and electrical conductivity in each nutrient a crop requires; for this to happen, the NetaJet 4G has analog valves in each of its eight dosing channels. New products in the digital farming division are furnished with sensors and other measuring and monitoring instruments able to provide automation for different procedures and supporting decision-making in crop irrigation and nutrition. FertiOne, FertiKit 3G, NetaFlex 3G, rNet and rSense, among others, stand out

from the new line of products. Pace picks up in the mining division Up until a year ago, contribution from the Mining division in Netafim Mexico was minimal. But recent rises in the price of copper allows mining companies to invest in Netafim’s solutions for the leaching process. Netafim supplies hoses with high resistance to clogging and FlexNet pipes to the mining industry. The latter provide a light, durable, high quality solution with integrated connections eliminating any chance of leaking. “Farming is our core business, but we are also keeping an eye on growth possibilities for our Mining division, making a difference with unique products,” Medina adds. Reduced turnover rate and accurate position profiles It’s no casualty that turnover rates keep decreasing at Netafim Mexico. Company culture extends far beyond benefits prescribed by law, and promotions are customary when any new position opens, thus

w w w. f d f w o r l d . c o m

131


N E TA F I M T M M É X I C O

“WE MUST SUSTAIN THE SAME EFFORTS WE HAVE PERFORMED DURING THE LAST TWO YEARS, FOCUSING ON HIGH VALUE CROPS, DIGITAL FARMING AND SUPPORTING PRODUCERS ABLE TO EXPORT” – Ricardo Medina, CEO for Netafim in Mexico and Central America

PIEPES, VALVES & CONNECTIONS Leaders in the market for more than 19 years distributing the best brands of products in the segments:

Agricultural Irrigation Mining Urbanization Industry Fire system Green areas Aquaculture Farms

Committed to Quality and Service

We immediately deliver to any part of Mexico, Central or South America, by boat or truck

132

April 2018

ventas@ideasconstructivas.com www.ideasconstructivas.com Tel. +52 (662) 210 95 00


L AT I N A M E R I C A

increasing employees’ confidence. In 2017, Netafim Mexico hired a consulting firm, which reviewed every position profile, considering factors such as responsibility, risk, and knowledge levels along with wages, establishing a benchmark comparison whose results revealed the company stands well above the average in salary wages, among other factors. “This demonstrates to our employees that there are open possibilities within the company for them to achieve individual growth,” the CEO explains. Projections Global conditions within the food sector are becoming fertile ground for Netafim to offer solutions able to produce more high-quality vegetables in smaller areas.

Along with new products focused on digital farming to be released during 2018 and the company’s aftersales services, this year will mark the launching of the Netafim Mexico loyalty plan, dipping into the waters of rewards programmes during the first half of the year before a large-scale campaign. Digital farming solutions brought onto the market as the year plays on will be supported by cloud connectivity and platform unification for real-time monitoring and irrigation dosing. “We must sustain the same efforts we have performed during the last two years, focusing on high value crops, digital farming and supporting producers able to export,” Medina summarises.

w w w. f d f w o r l d . c o m

133


AT THE

FOREFRONT

OF SUSTAINABILITY AND SOCIAL RESPONSIBILITY A look at the Guatemalan firm’s banana and vegetable oil production and export operations


Written by Mateo Rafael Tablado Produced by Lucy Verde Interviewee: Bernhard Roehrs, Corporate Director for AgroAmĂŠrica


AGROAMÉRICA

A

groAmérica leads a sustainable banana and vegetable oil production operation from Guatemala, with presence also in Panama, Peru, Ecuador, the US, Mexico and Europe. As a corporation, AgroAmérica addresses sustainability matters both inwardly via its workforce, and outwardly in its surroundings and production zones. The company was a pioneer in obtaining global certifications such as the one for sustainable practices from the Rainforest Alliance, Global GAP (for best practices in agriculture), BASC (Business Alliance for Secure Commerce), Ok Kosher, C-TPAT (foreign trade), SCS (sustainability), and RSPO (sustainability in palm oil production). Earning these has opened the doors to AgroAmérica to export toward markets in different continents, which demand these standards.

136

April 2018

Other accolades obtained locally include being a runner-up to the 2017 National Exports Award in the farming and fishing sector. Criteria to earn the award (running every three years) include traits such as transformation and innovation. Internationally, AgroAmérica was a runner-up from 249 participants in the Unilever Global Development Award, which recognises companies for having a positive impact in one or more of United Nation’s Sustainable Development Goals (SDGs). Technology and water Banana and vegetable oil operations at AgroAmérica, which involve production, distribution and sales, are supported by the most advanced technology. Nevertheless, water is essential to fulfil these goals. For this reason, the company’s main investments are for technology applied to water conservation, optimising


FDF WORLD

irrigation systems which has resulted in 80% savings at banana packaging plants. AgroAmérica’s excellent water management earned the company an invitation to become exhibitors at the First Water Management Forum in Guatemala. The company has also been invited to take part in technical committees for an efficient use of water from rivers, which saw a water systematisation research for the Madre Vieja River paid for by the EU. Safe-hand suppliers AgroAmérica products are exported to important markets such as the US, and also to countries in Latin America and Europe, including the UK. This outreach demands careful, timely merchandise management, as high quality perishable goods require. Shipping companies play a strategic role in the supply chain, working with the same dedication as AgroAmérica’s own sea freight

company, which works exclusively for the company and its clients. Companies shipping for AgroAmérica – as well as those required for other duties – must comply with the same standards as AgroAmérica does in areas such as sustainability, production processes and care for the environment, among others. Satisfying the demand for organic products Today’s consumer has evolved to demand a detail-oriented analysis of every ingredient in his or her food. Striving to offer the best products, aligned with sustainable production practices, AgroAmérica began producing organic bananas in Peru’s Piura desert, a place with ideal weather conditions to grow organic products. Growing organic bananas became a constant learning process, leading to a new production model.

w w w. f d f w o r l d . c o m

137


AGROAMÉRICA

Tangible support for every worker AgroAmérica rewards its working force with more benefits than required by law, and boasts the “Deserving Salary” programme. Internal promotion is also a regular practice at every level, mostly in field operations, opening up real growth opportunities to employees. Workers splitting time to finish any educational commitments not only have flexible schedules but are also helped with transportation to attend their classes. Education

138

April 2018

incentives extend to workers’ families, as their children can be enrolled in the company’s own school. The company also opened a cooperative bank for its staff and built a human development centre for employees, their families and neighbour communities. The centre includes a healthcare establishment offering excellent services at very affordable prices. The company established a partnership with the University of Colorado (US), obtaining help from the college’s medical staff and programmes


FDF WORLD

focused on child nutrition. Corporate social responsibility AgroAmérica takes part in many local and international programmes related to its products’ quality and also related to its immediate surroundings, the biosphere, and other entities. These are some of the most important programmes and CSR partnerships: SOLIDARIDAD AND GUATEMALA MARN (Ministry of Environment and Natural Resources):

Cooperation agreement with the goal of protecting the environment within the Bonn Challenge initiative, seeking to improve land’s productivity, conserve species and combat desertification. ECOLOGIC: Agroforestry project of the EcoLogic Development Fund. IGSS (Guatemala Social Security Institute): The agreement with IGSS guarantees medication distribution to the company’s medical centre, in Southwest Guatemala, open

w w w. f d f w o r l d . c o m

139


FDF WORLD

“WATER IS ESSENTIAL TO FULFIL OUR GOALS. AGROAMÉRICA’S MAIN INVESTMENTS ARE FOR TECHNOLOGY APPLIED TO WATER CONSERVATION” – Bernhard Roehrs, Corporate Director for AgroAmérica

for company employees, saving them time and bus money to get to IGSS facilities. ICC (Climate Change Institute): With help from ICC and COCODE (Community Development Committee), AgroAmérica workers on Guatemala’s southern coast. Local communities worked to reforest a piece of land with conservation purposes, using only native species. WWF (World Wildlife Fund): The partnership with the fund consists of introducing better practices for a

sustainable use of resources. WWF installed a weather station in one of AgroAmerica’s plantations to develop a model for controlling tsigatoka disease. The Fund trained AgroAmérica’s workers and banana growers from the area, providing advanced techniques to control this disease. UNO: AgroAmérica’s CSR programmes are aligned with the United Nations’ SDGs, resulting in establishing relationships with more than 1,500 local and international

w w w. f d f w o r l d . c o m

141


AGROAMÉRICA

The “Productivity Award” is earned by AgroAmérica’s workers whose effort reaches the highest excellence levels

“BEING GLOBALLY CERTIFIED IS A RESULT OF THE EFFORTS PUT TOGETHER IN FARMING, LABOUR, SOCIAL AND ENVIRONMENTAL PRACTICES CARRIED OUT IN A RESPONSIBLE, SUSTAINABLE WAY, ENABLING US TO EXPORT TO MARKETS IN DIFFERENT CONTINENTS” – Fernando Bolaños, CEO for AgroAmérica


FDF WORLD

organisations, such as municipalities, community leaders, NGOs, schools, government agencies, and embassies, among others. “One banana a day improves your life�: This programme consists of banana donations to participating schools during an entire academic year along with health and nutrition tips.

Other efforts in this area include distributing filters to neighbouring communities to ensure their access to drinking water. Responsible practices and social programmes guarantee a sustainable production, helping AgroAmĂŠrica earn trust from the community and other entities, which also results in increased growth in foreign markets.

w w w. f d f w o r l d . c o m

143


Profile for FDF World

FDF April 2018  

FDF April 2018  

Profile for fdfworld