w w w.fdf wor ld.c om • O c tob e r 2015
THE STATE OF
The Seafood Supply Chain PROTEIN PRODUCTION In South America From Ahold and ALDI to Wegmans & Whole Foods – Which Retailers Win the Seafood Sustainability Race?
EDITOR’S COMMENT
Seafood Revelations CRITICAL ISSUES CAN SOMETIMES
have a way of bubbling up and striking a nerve, causing a major social media stir, and then sinking beneath the surface of public opinion—all but forgotten, with little meaningful change achieved. When we wrote about Oceana’s seafood fraud report in 2013, the revelation of such a damaged supply chain affecting both retailers and consumers alike was causing a ripple of awareness that went all the way to the top with a White House executive order. But two years later, now that the dust has settled, has anything changed? That’s what we wanted to know. So for this month’s feature, we reached back out to Oceana to see what has changed and how far we have to go to fully achieve better seafood along its supply chain. So read on, enjoy, and consider whether the awareness you’re raising lasts long enough to truly make a difference.
Enjoy the issue!
Sasha Orman Editor Sasha.Orman@fdfworld.com 3
CONTENTS
Features
6
12
PRODUCTION Protein Production in South America SUPPLY CHAIN Revisiting the Seafood Supply Chain
18 4
October 2015
TOP 10 Greenest Seafood Suppliers
BRAZIL
Company Profiles
32 LATIN AMERICA
GSA Gama Alimentos
54
BRAZIL
Gralco
44 Aryzta
66
LATIN AMERICA
Grupo Gusi
5
PRODUCTION
Protein Production in South America A state of the union for the growing industry of protein production in Brazil and Latin America W R ITTE N BY SAS HA O R M AN
7
PRODUCTION
Beefing up the meat export industry With its acres upon acres of green land, it’s no surprise that beef production is king in South America— particularly in Brazil. Home to production and processing giants like JBS, it’s reported that as much as one out of every five pounds of beef in the world comes from Brazilian cattle. The industry has been driving growth over the past decade—according to Brazil’s beef sector, Brazilian beef represents a $5 billion industry and productivity in heads per hectare has grown 25 percent in the past ten years. Brazil is far from being the only country in South America ramping up its beef production. Uruguay in particular is a rising star in the red meat industry. Sandwiched between 8
October 2015
I M A G E C R E D I T: A L F R I B E I R O - S H U T T E R S T O C K . C O M
FROM FRESH SEAFOOD to a cut of steak, consumers love meat. According to recent statistics, the average person consumes around 41.9 kg of meat per year. But where does that meat come from? Increasingly, it’s South America. The meat processing industry in Brazil and Latin America is booming, and new investments mean that growth is only on the rise.
A Cattle farm in Sao Paulo, Brazil Brazil and Argentina, two countries known for their ranching industries, this should come as little surprise. In May, Global Meat News reported that Uruguay increased its beef and meat by-product exports by 16 percent volume compared to the year before. 2015 was an especially interesting year for the beef industry in Brazil and Argentina: a whole new market opened up as the United States Department of Agriculture allowed for fresh chilled or frozen beef to be imported from these countries for the
PR FE OATTEUI N R EP R AO RT D IUCCL TE I O SN H OI N R TSEONUETDH HAEM AE DR LIC NA E
first time. As Reuters reports, Brazil already had a healthy relationship with the United States, exporting 37,000 tons (roughly $217 million) worth of processed beef into the country in 2014. Mixed progress in the poultry world While red meat production is seeing gains, reports indicate that Brazil is facing more difficulty than usual in poultry production. World Poultry recently reported that Brazil’s
expected broiler production growth for 2015 has decreased from five percent to 2.5 percent due to a rise in costs caused by underlying economic issues like energy costs and tax increases. Even so, at 13 million metric tonnes that’s still an impressive amount. In the Latin America sphere poultry production is enjoying more robust growth, between a combination of higher demand and lowered production costs. Guatamala-based multinational Division Industrial Pecuaria recently noted that it is 9
PRODUCTION largest chicken producer, saw a 27 percent profit increase over last year.
Lower corn & grain prices lower the price of chicken in both Mexico and neighboring US focused on the expansion of several chicken brands throughout Latin America including Pollo Rey in Guatamala, Honduras, and Costa Rica, Pollo Indio in El Salvador, and Pollo Toledo in assorted new markets. Meanwhile, Bloomberg reports lower corn and grain prices in both Mexico and the neighboring United States, creating a sweet spot of chicken prices and feed prices that has resulted in a boon for Mexican poultry producers. Industrias Bachoco SAB, Mexico’s 10
October 2015
New frontiers in aquaculture The sea is quickly becoming as much of a profit driver as the land in Brazil and Latin America. As far back as 2007, experts have called out South America as a developing hot spot for the aquaculture industry, pointing to Peru and Chile in particular as Latin America’s leading fishing nations. Thanks to a sharply increased demand for commodities like farmed tilapia in the United States and fishmeal for animal feed in China, the aquaculture industry in South America is growing in a multitude of ways: while local aquaculture businesses are growing outward, global businesses from abroad are looking increasingly for ways in. Caracas, Venezuela-based Altamar Foods Corp. has been growing its seafood supply brand since the 1990s, shipping fresh scallops, squid, mahi mahi and more to Peru, Chile, and even into North America. Last year the company made a move to expand its operations with a $25 million investment for a new fullyautomated production facility in Piura,
PROTEIN PRODUCTION IN SOUTH AMERICA
Peru. “We have a projected growth of 1,000 percent due to the size, freezing capacity, storage and amount of technology integrated in the plant,” Altamar president and founder Alberto Pescatore said in a recent profile. Where seafood suppliers are growing, they create an increase in opportunities for supplies and services. Minnesota-based Cargill has had a presence in Latin America since the 1960s—and a good deal of its
‘Where seafood suppliers are growing, they create an increase in opportunities for supplies and services.’
recent growth in the region has been tied to an interest in commodity support for the aquaculture industry. In early 2015 Cargill Mexico invested $8 million USD into improvements at its Tehuacan aquaculture feed plant, reportedly as part of a bigger $16 million plan to increase Cargill’s status as a feed manufacturer of choice throughout Latin America. The company doubled down on this goal later in the year with the acquisition of EWOS, a Norwegian company specializing in salmon and trout feed. In addition to its plant in Norway, the acquisition also netted Cargill lucrative production plants in (among other locations) Chile, aiding the company further in its growth as a feed provider throughout Latin America. With exports up and production rising, the future of protein is bright for Central and South America. 11
S U P P LY C H A I N
REVISITING THE SEAFOOD SUPPLY CHAIN With a task force and regulations underway, is the fishing industry on the road to recovery?
W R ITTE N BY SAS HA O R M AN
YOUR BUSINESS IS only as strong as the weakest link in your supply chain. You can have a sterling reputation for its internal operations, but the poor practices of suppliers at the far ends of your supply chain can easily come back to haunt you. This is a bigger problem for some sectors than others, and one of the most problematic of all is the seafood industry. Seafood travels along an especially complex supply 12
October 2015
chain from harvest to point of sale, creating ample opportunities for corner-cutting and deception to creep in—and in 2013, with the publication of a report uncovering some sobering statistics about the seafood industry, ocean advocacy group Oceana revealed that this is exactly what was happening. The report found that 39 percent of fish tested at restaurants and grocery stores in New York City were mislabeled,
R E V I S I T I N G T H E S E A F O O D S U P P LY C H A I N
with similar instances of fraud and misinformation found at other test locations from California to Florida. This is of course a situation that comes with several sets of problems, the most obvious being that consumers—and even restaurants and retailers, depending on where the discrepancies emerge—are deprived of the right to make thoughtful and meaningful choices about the food they serve and consume.
Fraud in mislabeling cheap fish as a more expensive cut also lines pockets while cheating everyone further along the supply chain. But there are also even more insidious issues at work. Mislabeled seafood can create serious health issues, if a consumer unknowingly purchases and eats a species of fish that triggers an allergic reaction. A lack of transparency can also link otherwise praised businesses to egregious human rights violations, as Costco Wholesale is now discovering—the retailer is being sued along with Nestle and Mars Company for sourcing shrimp from farms in Thailand, which have come under fire for worker abuse and slave labor. But a sea change is already underway in the industry. In 2014, at the global “Our Ocean” conference led by Secretary of State John Kerry, the Obama administration established a task force via executive order, recruiting members of the Department of Agriculture, the Department of Homeland Security, the Federal Trade Commission, the Food and Drug Administration and many more to crack down on seafood fraud, mislabeling, and other 13
S U P P LY C H A I N illegalities within the fishing industry. In March of 2015, the task force followed up with a comprehensive report detailing a set of 15 recommendations for concrete steps to combat illegal, unreported and unregulated (IUU) fishing and seafood fraud. “We definitely applaud the steps that the administration is taking to combat IUU fishing and seafood fraud,” said Lora
Snyder of Oceana. “The process that they are going on for their traceability program is to determine at-risk species, so they’ve come out with a proposed list of at-risk species that will be in the initial phase to require traceability from the point of catch to the first point of sale in the U.S. We think this is a good first step.” Nevertheless, change is just beginning and the seafood industry still has a long
Since the IUU Regulation entered into force in 2010, it has had a far-reaching impact on the fight against IUU fishing
14
October 2015
R E V I S I T I N G T H E S E A F O O D S U P P LY C H A I N
way to go in order to truly change for the better on a large scale. “We are urging the administration and the task force to be sure to expand to all species and to expand the traceability requirements to the full chain—from bait to plate—so consumers can get the key information as well,” said Snyder.
way that the task force can go further to improve the seafood industry is by implementing a “one name for one fish” rule for all seafood sold in the United States, asking suppliers to include scientific species names along with “commonly acceptable market names” throughout the supply chain to avoid confusion and misdirection. Why is the specificity of a name
Improving standards According to Oceana, one crucial
15
S U P P LY C H A I N so important? As a report released by Oceana in July of 2015 points out, 64 species of fish are currently allowed to be sold as “grouper” in the U.S.—36 percent of those species are considered at risk for extinction, and a lack of specificity in naming deprives consumers of the ability to make fully informed and more responsible purchasing choices. “We’re not saying you can’t use the acceptable market name, but part of the traceability requirements we would like to see is either the common name or scientific name also accompanying the seafood product throughout supply chain, and to getting that onto the label,” said Snyder. “We think that consumers deserve to be able to make choices with all the information.” Businesses can also take action on their own to stay ahead of the curve and improve their supply chains, working with sustainability and
traceability-focused supply chain solutions like Trace Register to keep product information consistent and track your shipments throughout the supply chain. But while a business can monitor its own actions, keeping tabs on the actions of suppliers is substantially more difficult—especially if those suppliers are halfway around the world. For this reason, mandates on a federal level like the Presidential Task Force are crucial to making widespread changes in the industry. For inspiration that such a program could make a difference, the U.S. Task Force can look to the European Commission’s IUU regulations first enacted in 2010. “Since the IUU Regulation entered into force in 2010, it has had a farreaching impact on the fight against IUU fishing,” stated the commission in a recent update. “Since 2010, the Commission has investigated more
‘We Definitely Applaud The Steps That The Administration Is Taking To Combat Iuu Fishing And Seafood Fraud’ – Lora Snyder - Oceana 16
October 2015
R E V I S I T I N G T H E S E A F O O D S U P P LY C H A I N
While a business can monitor its own actions, keeping tabs on the actions of suppliers is substantially more difficult—especially if those suppliers are halfway around the world. than 200 cases involving vessels from 27 countries. As a consequence, sanctions against almost 50 vessels and roughly amounting to 8 million EUR have been imposed by flag and coastal states and both legislative and administrative reforms to improve catch certification and fleet monitoring have been introduced in several third countries.” The European Commission also uses a yellow card and red card system to flag countries using unethical and illegal fishing practices— recently the commission doled out a yellow card of noncompliance to
Thailand, for the very reasons that landed Costco Wholesale and others in hot water. Similar systems in the United States could reinforce the identification of “bad actors” and help businesses build better relationships with sustainable and honest suppliers. From building international standards to using forensics to better identify fish processed at sea, the U.S. Task Force still has many challenges ahead. But step by step and measure by measure, the seafood aisle could soon be a more honest and open forum for consumers to shop.
17
TOP 10
TOP 10 Greenest Seafood Suppliers In today’s seafood industry, honesty and transparency counts for a lot. It’s not enough to claim that you’re offering sustainable choices—you must also have the supply chain accountability to prove that you are able to back up your statements. Which national retail chains are at the top of their game when it comes to hitting all of these points? Every year advocacy group
Greenpeace compiles a list of the top retailers in the United States serving up best practices to their seafood-hungry consumer base, scoring retailers on everything from their inventory and purchasing policies to their conservation initiatives and supply chain transparency. These ten represent the best of the Greenpeace-approved best
19
TOP 10
10) Meijer First up is Meijer, a relatively small chain with nonetheless large impact across the Midwest. Greenpeace reports that Meijer has improved over years past, involving itself in initiatives like best practices and the Sustainable Seafood Committee while also taking steps to increase supply chain traceability by packaging all seafood with scientific names and MSC or BAP labels. The chain has plenty of opportunities for improvement, most significantly by further improving its supply chain and by lowering the amount of Red List fish species kept on offer.
20
October 2015
TOP 10 GREENEST FOOD SUPPLIERS
09) Delhaize Belgian group Delhaize is better known in the United States by names like Food Lion and Hannaford, and ranks ninth on Greenpeace’s list of sustainable retailers. Delhaize does best in the field of good policy, using third party audits to improve its supply chain and keeping consumers updated with online information on its sustainability policies and initiatives. But with a 6.05 score and 12 out of 22 Red List species for sale, the company still has a long way to go. “The retailer can propel further into the top ten by developing a sustainable canned tuna policy, converting its private label tuna to more sustainable products, increasing labeling at the point of sale, and addressing its Red List,” said Greenpeace. “The retailer must prioritize compliance with its sustainable seafood policy across its entire range of stores.”
21
TOP 10
08) Ahold Dutch retail group Ahold operates under several names in the United States, including Giant Foods and Stop & Shop—altogether they occupy the eighth spot in Greenpeace’s seafood rankings. “Greenpeace commends Ahold for its leadership and openness to recommendations from the NGO community,” said the advocacy group, noting the retail group’s support for sustainability issues like protecting the Bering Sea Canyions and calling on Congress to pass its IUU Fishing Enforcement Act. The retailer also works to procure sustainably caught and raised seafood and to promote that seafood to consumers via its advertising. But Greenpeace has noted that the company needs to increase its supply of sustainable choices to ascend further up the ranks. 22
October 2015
TOP 10 GREENEST FOOD SUPPLIERS
07) Trader Joe’s On the plus side, consumer darling Trader Joe’s scores high marks for selling the fewest endangered or destructively caught “Red List” species of fish out of any others on the list (just six out of 22), earning the chain a Category Winner badge in the Red List field. But less positively, Trader Joe’s has fallen down the list due to a failure to follow through on earlier promises to improve on supply chain transparency and information for consumers. “This is a missed opportunity, especially since the retailer has a highly vertically integrated supply chain,” noted Greenpeace in its report.
23
TOP 10
06) Aldi Operating mostly in the Midwest, German discount supermarket import ALDI is making improvements on its way up the rankings—and while the changes are reportedly not as sweeping as last year, they are still improvements for the better. Some of these more recent changes include further transparency by sharing seafood origins online. But ALDI’s involvement with the recent shrimp supply chain scandal has Greenpeace asking ALDI to get more involved in stopping IUU fishing.
24
October 2015
TOP 10 GREENEST FOOD SUPPLIERS
05) Target Greenpeace reports that Target has improved considerably over last year, earning a Most Improved badge from the group for increasing its advocacy on traceability and human rights in the shrimp supply chain while working more sustainably caught fish species into its own Simply Balanced private label. The group notes that Target can increase its standing even further in the future by improving its labeling and signage as well as using more sustainable sources for its price-conscious Market Pantry own label.
25
TOP 10
04) Safeway Safeway has long been a proponent of seafood responsibility. The company is vocal about the importance of clear labeling, made history in February with its Fair Trade Certified seafood program, and is working toward a goal of selling only fully traceable and responsibly caught or farmed fresh and frozen seafood by 2015. But looking forward, Greenpeace has expressed concern for Safeway in the wake of its recent acquisition by Albertsons— who placed 19th in this year’s ranking with a score of 4.38. The hope is that Safeway will be able to spread its strong seafood sustainability and traceability practices throughout the new entity of which it is now a part. 26
October 2015
TOP 10 GREENEST FOOD SUPPLIERS
03) Hy-Vee Greenpeace has praised Hy-Vee, a relative newcomer to the group’s rankings that made its Greenpeace debut only last year, on its swift rise to the top compared to last year. By making moves like refusing untraceable seafood from suppliers and deciding to stop carrying the controversial and unsustainably caught Chilean sea bass at its stores, Hy-Vee is making a big impact in a short amount of time.
27
TOP 10
28
October 2015
02) Wegmans Regional chain Wegmans has long been a consumer favorite with a cultlike following, and it’s a favorite of Greenpeace right now as well with an impressive score of 7.29. The chain’s pledge to minimize or eliminate the use of pesticides and antibiotics, plus its work with NGO partners to avoid blacklisted fish and fight IUU fishing, have earned Wegmans top marks.
29
TOP 10
01) Whole Foods While no retailer has achieved a perfect 10 status, Whole Foods Market comes the closest with a score of 7.46, earning the chain its first place ranking for the third year in a row. The chain scored especially high marks for its internal policies on seafood sourcing, increasing its standards for fishing methods and for traceability measures from its farmed seafood, along with its advocacy work and use of third party auditing measures like Trace Register to improve its own supply chain. By reducing its Red List inventory, the chain could come even closer to a perfect score.
30
October 2015
31
AMONG THE 250 FAS GROWING COMPAN
Present in more than 60,000 retail outlets acro is a benchmark in the state of Goiรกs Written by: Flรกvia Brancato | Produced by: Taybele Piven
ASTEST NIES IN BRAZIL
oss the country, the company
33
GSA
G
rowth has been part of the GSA history since 1984. Originally called Gama, the company was once just a business extension of Mabel, which was highly regarded in the food products sector in Brazil. Later, GSA, under the command of current president Sandro Marques Scodro, took off for success. Last year, after 2012’s acquisition of two influential companies on the national market—Velly and PPA - Paulista products—GSA opened its new plant in Business Polo Goiás state in the city of Aparecida de Goiânia with an investment of USD 6.4 million. GSA is present in over 60,000 Points of Sales (POS) spread across the country, with focus on the Midwest, North and Northeast. The states of Goiás and Tocantins have two direct sales teams with more than 120 employees.
34
Outubro 2015
BRAZIL
Commitment and transparency The combination of technological innovation, commitment to human values and transparency in commercial transactions is the key to success. “We are a young company that was able to define an interesting focus of commercial activity, leveraging its growth on the relationship with its distribution network, aligned with pillars of new products, investments in marketing and POS, always acting transparently with their employees,” said Sandro Marques Scodro, president of GSA”. According to data from Great Place to Work, GSA is ranked as one of the 35 best companies
“We are a young company that was able to define an interesting focus of commercial activity” – Sandro Marques Scodro, president of GSA – Gama Sucos e Alimentos
w w w. g r u p o g s a . c o m . b r
35
Product display
36
Agosto 2015
BRAZIL
to work for in the Midwest region of Brazil. The company maintains growth and employee commitment by implementing business management models based on the values, mission and vision outlined by the company. Through a culture that focuses its efforts on work environment quality, the company is always investing in areas of integration. “Motivated professionals work better. GSA offers a space for entertainment, where employees can play table tennis, foosball, chess, billiards—and a second one, which is more private and where employees can rest, read a book and relax,” said the president. Market strategies and management One of the company’s top priorities is the execution and management of POS. Maintaining organization and balance is crucial, as well as keeping good relationships with distributors and retailers. According to Scodro, the current economic scenario has helped GSA’s sales.
Entertainment area
w w w. g r u p o g s a . c o m . b r
37
Product display
“We benefit in two ways: one is based on the change of Brazilian families eating out less,” he said. “Another trend is the consumers’ behavior change when it comes to skipping the leading brands, often opting for the products of higher quality and cost-benefit.” Strategy is focused on the industrial area, such as the implementation of LEAN manufacturing system concepts. The idea is to reduce unnecessary waste in areas such as inventory, production, production time, etc. The whole philosophy is based on minimizing the delivery time to the customer, better quality, reduced manufacturing costs, and a culture of continuous improvement. The president points out another important part of the process, which 38
October 2015
BRAZIL
Distribution center
is the implementation of PDCA system, which stands for Plan, Do, Check, Action. “Staff receive training to react quickly to any anomalies in the process, analyzing the problem, planning actions, executing and controlling so it does not happen again.” He added, “We will implement a system called ‘5S,’ which is a Japanese methodology that creates and maintains an organized and clean workplace, achieving high performance.” A project called “Kaizen Week” (Japanese for ‘change for the better’) was created, aimed at
Sandro Marques Scodro
w w w. g r u p o g s a . c o m . b r
39
GSA GSA Brands
40
October 2015
BRAZIL
improving sales and reducing operations waste from direct sales in Goiás state. Within a week, the program trains employees on the LEAN system, checks for issues, defines actions, implements and measures performances. Quality and technology GSA possesses the latest national and international equipment for powdered soft drink production, cake mix, microwaveable popcorn, a variety of seasonings production in powder, paste, and cubes, and instant noodles. “There are fifteen production processes and different flavors,” said Scodro. The product that
Industrial line with state of art equipment
w w w. g r u p o g s a . c o m . b r
41
97mm (largura)
137mm (altura)
GSA
We are proud to add flavor to great successes of the market and deliver sensory experiences to the consumers of our clients. Product display
“Our plan consists in start profiting from the investments made, preserve cash flow and expand our business base” – Sandro Marques Scodro, president of GSA – Gama Sucos e Alimentos 42
October 2015
stands out among all 22 is the instant noodles line Omori Chinese mark. “We have one of the most advanced technologies in this segment, all automated, that can produce 450 packages of noodles per minute,” he said. When it comes to quality, the company is standardizing various operations analysis, as well as enhancing partnerships with highly accredited suppliers of constantly monitored raw materials. With the aid of GSA’s own cutting-edge laboratory, several tests are carried out to ensure that no product deviates from standardized specifications. Above all, a highly qualified group
BRAZIL
Company Information NAME
GSA – Gama Sucos e Alimentos LTDA INDUSTRY
Food HEADQUARTERS
Aparecida de Goiânica, Goiás - Brazil E S TA B L I S H E D
1984 EMPLOYEES
550
in new products research and development department completes the team. To accomplish its action plan, GSA is upgrading its ERP with a consolidated investment that surpasses USD 444,000. “Our plan consists in start profiting from the investments made, preserve cash flow and expand our business base,” said the Scodro. “We getting ready to implement ISO 9001 in 2017, which will provide better basis to all existing standardization to ensure that GSA continues to be a benchmark in quality food in Brazil,” he concluded.
MANAGEMENT
President: Sandro Marques Scodro Managing Director and Human Resources: : Victor Leal Industrial Director: Luiz Franco Management Director and Control: Flávio Faria
w w w. g r u p o g s a . c o m . b r
43
Ex s
Ser
ARYZTA:
xcellence in frozen specialty bakery
rving major brands of Food Service in Brazil, the company is a market leader Written by: Flรกvia Brancato | Produced by: Taybele Piven 45
A R Y Z TA
A
s a global leader in bakery and frozen confections, ARYZTA is among the world’s three largest baking companies, earing 4.8 billion euros in profit last year. With 60 plants located in 25 different countries, it is headquartered in Zurich, Switzerland. The company started its journey in Brazil 30 years ago, providing hamburger buns and pies for McDonalds. After a merge in 2008 between IAWS Group PLC and Hiestand Holding AG, the company changed its name to ARYZTA and has been part of ARYZTA group since 2010. Maintaining its values, ARYZTA possesses a differentiated quality concept based on maximum food safety, as well as full compliance with the customers’ expectations. “As the absolute leader in the food service sector in Brazil, the company is responsible for serving 80 percent of the national market,” said the president of ARYZTA in Brazil, Claudio Gekker.
Bread factory in Food Town - Osasco
46
October 2015
I
Flour silos
w w w. . c o m . b r
47
PÃ E S E S P E C I A I S
Cookies
The industrial structure of the company includes a specialized plant in Santo Amaro, São Paulo state, two bread factories in Osasco and Jaguariúna, also located São Paulo state, and another in Juiz de Fora, in Minas Gerais state. In addition to hamburger buns, artisan soft breads, artisan crusty breads, cakes, croissants, and more, the company has also been investing in new lines of products and packaging, including a specific line for retail. Future plans include partnerships with major supermarket chains.
“As the absolute leader in the food service sector in Brazil, the company is responsible for serving 80 percent of the national market” – Claudio Gekker, president of ARYZTA w w w. a r y z t a . c o m
49
B
BRAZIL
Management strategies Since the company’s arrival in Brazil, the process management system has been based on TPM, which evolved into LEAN Manufacturing. “ARYZTA RISE is the result of continuous improvement process that supports our entire operation using Lean tools and techniques,” said Gekker. Investment strategies for training are decided through performance assessment and talent scouting. An internal recruitment program makes all open positions available within the company first. “We promote around 6,000 hours year for internal training, specific bakery training, and allocate about 1% of our net sales,” added the president. To further increase the engagement level, the company holds a monthly meeting, which celebrates the birthdays within the month, and serves as a chance for team members to interact with each other and new products. Gekker highlighted the importance of these meetings. “We have meetings where I talk to groups of employees from all of our factories and offices to understand where we have more opportunities, and so that we have the cooperation and
w w w. . c o m . b r
51
“We have meetings where I even talk to groups of employees from all of our factories and offices to understand where we have more opportunities” – Claudio Gekker, president of ARYZTA
A R Y Z TA
“Similarly, foods products that for some reason have not been approved for sale are donated to Mesa Brasil, Food Bank and many other institutions” – Claudio Gekker, president of ARYZTA
Petit Gateau
participation from everyone in our business.” As a global benchmark in the food industry, ARYZTA’s policies for food safety as well as the safety and health of its employees are based on stricter standards than GFSI and its various certifiers. “We are in the British Retail Consortium (BRC) certification implementation phase. Our Quality Management System and Food Safety is recognized and approved by our clients through annual audits by independent international bodies such as SGS / Intertek / Global Sai,” he said. Environmental responsibility Always concerned with the environment, ARYZTA adopts conscious practices to promote employee participation and share the responsibility of improving processes in factories. In 2013, the global ARYZTA sustainability board launched a major 52
October 2015
BRAZIL
Company Information NAME
ARYZTA INDUSTRY
Food/Baking EMPLOYEES
Around 550 E S TA B L I S H E D
1937 HEADQUARTERS
Brazil - São Paulo, SP Global - Zurich, Switzerland
challenge to all plants: reduce 20 percent consumption of electricity, water and LPG / NG and reduce landfill waste by 50 percent, all by 2020. Recycling companies collect materials such as cardboard, plastic, metal and burning lamps used in manufacturing areas and offices. On average, more than 12 tons of recyclable material are processed per plant, per year. “Similarly, foods products that for some reason have not been approved for sale are donated to Mesa Brasil, Food Bank and many other institutions,” said the president. Every year, each ARYZTA factory donates 12-20 tons of food.
PRODUCTS/ SERVICES
Hamburger buns, Par-baked artesian breads, buns, rolls, muffins, frozen cookie dough, laminated dough, donuts, continental pastries, sweet and savory reception goods and a variety of savory pizzas and tarts MANAGEMENT
President: Claudio Gekker CFO: Regis Santos
w w w. a r y z t a . c o m
53
gl
Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group-LATAM
54 Octo b e r 2 0 Daw 1 5 Ă lvarez, Executive Vice President (EVP) of GRALCO S.A. Interviewee: Guillermo
Reaching
lobal markets
tuna from Colombia
with
Gralco is meeting global business demands for the production of tuna and commercialization of its own brand, Alamar
GRALCO S.A.
G Mothers, Gralco’s collective force
rupo Alimentario del Atlantico was founded by a joint venture of three companies in the year 2000, after these industries acquired a cold meat factory established in 1994, in the city of Barranquilla, Colombia. This association between the Spanish Group Gerlein and the Italian-American corporation Tri Marine, integrated the whole business, developing its production plant, from the process stage to the packaging and selling of precooked and canned tuna, while taking advantage of its added value products, such as flour and fish oil. Gralco’s high level of sales has provided growth opportunities to its 18,000m2 production area, which translates into a storage capacity of 500 tons. The company follows international quality standards to support its operations, whether they are working for global prestige brands or community markets. Additionally, Gralco has been certified by Colombian organizations in Good Manufacturing Practices, HACCP (Hazard Analysis and Critical Control Points), BASC (Business Alliance for Secure Commerce), EFSIS (European Food Safety Inspection Services), and ISO: 9000 (quality management standard). Among Gralco’s prominent customers is Starkist from South Korea (which a vast operation in the United States), and Rio Mare (owned by the
56
October 2015
L AT I N A M E R I C A
Italian corporate Bolton Group). In addition, the company competes locally through its own brand Alamar since 2008.
Key People
Alamar: Gralco’s tuna brand Alamar is now the second most consumed tuna product in Colombia, with a market share of 19 percent. It should be noted that Colombia hosts more than 30 tuna related brands, including some imported from El Salvador and Ecuador. “We can mention with pride that our growth levels have registered double figures,” noted Guillermo Daw, EVP for Gralco. As a brand, Alamar has become a sponsor of major professional soccer teams in Colombia, and is responsible for the organization and
Guillermo Daw Executive Vice President for Gralco Daw is an Industrial Engineer from Universidad del Norte (Barranquilla, Colombia), graduated in 1989. He has an MBA with an emphasis in marketing. Prior to being hired by Gralco SA, he developed his career in financial institutions; where he specialized in logistics and management with medium-sized and large companies. Since 2000, he has been de EVP of Gralco S.A.
Promoting recipes with Alamar product w w w. g r a l c o . c o m . c o
57
GRALCO S.A.
Recipe with Alamar’s Premium Tuna in olive oil
funding of the amateur tennis tournament “Abierto de Tenis Atun Alamar�, held in Colombia. Management insight Guillermo Daw is an industrial engineer who -before his experience of 15 years in Gralcoworked mainly in financial institutions that played a major role medium and large companies in Colombia. Gralco products
Tuna varieties
distributed to supermarkets in Colombia
58
October 2015
Gralco features in the global market due to the diversification of its tuna products and derivatives, providing precooked, raw and packaged tuna material for local brands and
L AT I N A M E R I C A
Inside Gralco’s production plant in Barranquilla
foreign commercialization. As well as raw material for supermarket chains, to supply generic or brand white label within their stores. “Our main differentiator is the mixture of quality, price, variety and taste, with the premise of being a healthy choice for our consumers,” explained Daw. Alamar: Colombia’s leading seafood brand
Finalizing with quality every end-product
The company’s brand has achieved consistent growth during recent years, determining a larger market share and domestic recognition. Alamar has been recognized by its diverse packaging solutions, preparations and w w w. g r a l c o . c o m . c o
59
GRALCO S.A. condiments. These factors, as well as Colombia’s consumer tastes and demands, have been incorporated in Gralco’s growth plans through diversification and the development of new presentations according to tastes and dietary requirements. “We are committed to the development of new formulas that will provide better alternatives,” said the executive.
60
October 2015
L AT I N A M E R I C A
Longevity and quality relationships with suppliers Clarity has been one of Gralco’s top leadership values, since its foundation, the company has worked closely with providers, building strong partnerships and for a mutual growth through win-win strategies. “We have managed to maintain these relationships, that have allowed us to develop more operations in both sides,” said Daw.
w w w. g r a l c o . c o m . c o
61
GRALCO S.A. Training, the key to an efficient team
Another Alamar variety product
To meet global demands, Gralco has updated all operative procedures in terms of international standards and food industry compliances, carrying out stealthily practices, whether operating locally or exporting. In this regard, their human resource is constantly trained according to domestic and international regulations such as GMP (Good Manufacturing Practices), and in terms of processes, the correct use of machinery and technology, “The role of our human resources department is key to the company’s success, in both the national and international market,” said the EVP. Gralco’s export growth Since its conception, Gralco has evolved based on its local operations and growth through exports, supplying today’s most competitive countries such as Italy, Spain and the United States, among others.
Employees trained in the best manufacturing practices 62
October 2015
L AT I N A M E R I C A
This industrial know-how regarding the export market is now being applied to their brand Alamar, with plans to internationalize their tuna products to neighborhooding Latin American countries, starting with Colombia, Peru and Chile. “From the beginning, our company has been geared to meet the needs of the international market,” said Daw. Safe fishing
Alamar Productos
Tuna fishing is monitored and regulated globally by both government officials and international NGOs. Therefore, fishing operations at Gralco have the Dolphin Safe certification, plus the rest of the business has received compliance approval under ISO standards: 9001, BRC (British Retail Consortium) and IFSS (Index Fordham Social Health).
“Our plans show a prominent future for our brand Alamar and Gralco” – Guillermo Daw, EVP for Gralco S.A.
w w w. g r a l c o . c o m . c o
63
GRALCO S.A. “Our production process is designed to seek minimal implications on the environment,” the executive said. Future growth The potential growth in Gralco’s operation is as vast as the oceans. The company is able to create new condiments and diversified its portfolio, according to the consumer demand and requirements.
L AT I N A M E R I C A
Sustaining and strengthening its local operation, aside from boosting exports to Alamar as South America’s tuna brand, which requires substantial investment in infrastructure to increase the plant’s capacity to 10,000 boxes of canned seafood daily. “Our plans show a prominent future for our brand Alamar and Gralco,” concluded Daw.
“Our main differentiator is the mixture of quality, price, variety and taste, with the premise of being a healthy choice for our consumers”
Company Information NAME
GRALCO S.A. (Grupo Alimentario del Atlántico S.A.) INDUSTRY
Food: processing, packaging, commercialization and export of tuna HEADQUARTERS
Barranquilla, Departamento del Atlántico, Colombia FOUNDED
– Guillermo Daw, EVP for Gralco S.A.
2000 EMPLOYEES
1,150 REVENUE
US $150 million WEBSITE
www.gralco.com.co
Chef Rodrigo Diaz w w w. g r a l c o . c o m . c o
65
COMM
produce q products for Mex to
After consolidating operations in Mexico, Carnes
Written by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group-LATAM Interviewee: Patricia Gutierrez, Administrative Director for Grupo GUSI
66
October 2015
MITTED
quality meat xico and the world
s GUSI opens the door to international markets.
GRUPO GUSI
G
rupo GUSI is a Mexican company dedicated to the production, processing and commercialization of meat products. It began as a family business in 1968, in Tamuin, San Luis Potosi; and under the leadership of its founder Miguel Gutierrez Mendoza, a visionary with initiative and committed to his country, who since then drove the meat company on a path of corporate growth, integrating the whole value chain, from the purchase of cattle to meat packaging. Nowadays, GUSI has become one of the biggest players and exporters of beef.
Brand: Carnes GUSI
Business milestones By 2006, the group opened a modern packaging plant that boosted GUSI’s exports
Aerial view of the production area 68
October 2015
L AT I N A M E R I C A
to key countries. In January 2008, the company became a world-class competitor, expanding its distribution network to new international markets. Another milestone was reached in July 2013, after opening a slaughterhouse with an installed capacity of 2,400 animals per day, in two shifts. Thus enhancing the growth and development of the group’s operations. Today, Grupo GUSI operates 3,000 acres land located in Rancho el Hualul in the state of San Luis Potosi, where livestock grazing is allowed. Due to the company’s integrated production, GUSI has the ability to market the meat and its derivatives. Examples of added value products are burger blends, fine cuts, marinated steaks, etc. GUSI has been characterized by its high values: responsibility, discipline, honesty, respect and teamwork. Which are reflected in all of the group’s operations. “We continue to transform the family business, consolidating our growth during the past 50 years, next to highly qualified employees that are cementing a solid foundation,” said Patricia Gutierrez, Administrative Director for Grupo GUSI. As part of this family business, Gutierrez seeks to improve processes in all areas in response to expansion plans. “We will continue w w w. g r u p o g u s i . c o m . m x
69
GRUPO GUSI
Human resource management
to preserve the same experience and quality that distinguishes us in the national and international market,� she added. Grazing cattle
Inside GUSI Grupo GUSI integrates the whole livestock production process under international standards of animal welfare, from the acquisition of calves until its transformation into processed meat of the highest quality and safety. The company collaborates with local producers nationwide, through an extensive network of cattle. Once in the production unit, cattle is divided into lots according to their age and weight, then it’s moved to the pasture area, where it remain free until the animal reaches optimal weight.
70
October 2015
L AT I N A M E R I C A
Quality control in every phase
During the following stage, all cattle is classified and maintained in feedlots. To ensure proper feeding, GUSI’s Food Plant supplies the highest quality selection of ingredients that enable the highest performance in livestock production, obtaining the best color, flavor and juiciness in meat. Once concluded the fattening stage, the processing phase begins, this includes: slaughtering, cutting, deboning, packaging, cooling and an added value line for burgers. All these production techniques feature cuttingedge equipment that complies with international standards on safety and quality.
Final product, for the international and domestic market
w w w. g r u p o g u s i . c o m . m x
71
GRUPO GUSI “Within our supply chain, we have a wide distribution network that consists of fifteen outlets and eight distribution centers nationwide, where excellent service is offered to our customers�, said the administrative director. The export market is supplied from their facilities, with licenses to deliver meat products to the United States, Canada, Japan, Hong Kong,
L AT I N A M E R I C A
South Korea, Panama, Angola, Congo, Puerto Rico, Chile and China. Grupo GUSI is committed to the environment; the company has ecological pens that facilitate the collection of organic matter generated by livestock, avoiding the emission of greenhouse gases. These are used to produce compost, which works as an organic fertilizer in pastures and orchards, instead of chemicals. Portfolio With their own brand CARNES GUSI, the company distributes a number of meat products to domestic and foreign markets, with flexibility in their processes, they deliver primary and value-added products, portioned or sliced cuts, a hamburger line and other byproducts. Working with local producers GUSI remains committed to the communities who have contributed to its development. The company has a close relationship with local farmers, as they are key suppliers in the production of quality beef, carefully selecting and buying young cattle. Agriculture programs are also established with producers of domestic grain, ensuring raw materials of the highest
“Our employees are our most important asset, whom I am convinced, are the key to reach all of our objectives” – Patricia Gutiérrez, Administrative Director for Grupo GUSI
w w w. g r u p o g u s i . c o m . m x
73
GRUPO GUSI quality are in use during the fattening of cattle, this way GUSI promotes jobs and profitability on the Mexican countryside.
Gusi international
In relation to this, the managing director said: “They are fundamental to the development and growth of this great organization, as the success of our products and services begins with the procurement of raw materials and high quality supplies; always maintaining the philosophy of benefiting local producers, whom we have established financial programs through agricultural credits”.
Gusi natcional
As a leader in the domestic food industry, GUSI also relates to world-class suppliers, in the areas of packaging, ingredients, machinery, process equipment, transportation, among others. Sustainability Following their mission statement “Naturally the Best,” Carnes GUSI has integrated into their production processes organic raw materials, replacing chemicals with the production of biofertilizers derived from manure generated by cattle. Another sustainable action is destined to the treatment of water for storage and irrigation purposes. “We are currently investing in a treatment 74
October 2015
L AT I N A M E R I C A
system to generate renewable energy by using organic waste, which will reduce the emission of greenhouse gases. Additionally, the company is installing solar panels to reduce energy consumption, caring for our planet through clean sources,” said Gutierrez. Productive quality The company’s experience of almost 50 years in the cattle industry, has earned them certifications such as ISO 9001: 2008, SAGARPA Mexico Federal Inspection certification, Supreme Quality seal from the Mexican government, HACCP (Hazard Analysis and Critical Control Points), and FSSC 22000 (Food and Safety System), among many others. Their suppliers, who follow the same corporate standards; and their employees, who are continuously trained in the best processing practices, determine a great contributor of GUSI’s quality management. Grupo GUSI is also a notable member of MEXBEEF, the Mexican Association of Meat Exporters, whose representativeness in the sector has kept them as a vanguard competitor in the regional food market.
Growth projections w w w. g r u p o g u s i . c o m . m x
75
GRUPO GUSI
State-of-the-art infrastructure
Feedlots
The meat producer vision is to consolidate its participation internationally in the next five years, and with its current portfolio of foreign clients and the recent export authorization granted by the health authorities of the People’s Republic of China, GUSI is opening a wide range of possibilities for the placement of Mexican meat products. “After entering international markets, as in this case is China and Hong Kong, our next challenges are to strengthen our presence in these territories and move on to other countries in Asia,” said Gutierrez. In GUSI there is an active commitment of
76
October 2015
L AT I N A M E R I C A
Added value unit and hamburger meat
cooperation with government and health authorities, in order to obtain various industrial permits that will allow them to seek new business relationships for the export of meat from Mexico. In the next five years, they expect to build a stronger presence as a leading company in the domestic and export markets, becoming recognized as a provider of food, health and nutrients. “As part of Carnes GUSI philosophy, our commitment is to always be at the forefront of all processes, always investing in research and innovation, and thereby, achieve total customer satisfaction,” said Gutierrez.
“GUSI is a leading company, always looking for new markets to export the highest quality meat from Mexico” – Patricia Gutiérrez, Administrative Director for Grupo GUSI
w w w. g r u p o g u s i . c o m . m x
77
GRUPO GUSI
L AT I N A M E R I C A
Company Information NAME
Grupo GUSI INDUSTRY
Meat producers HEADQUARTERS
Tamuin, San Luis Potosi, Mexico FOUNDED
1968 EMPLOYEES
1,650 WEBSITE
www.grupogusi.com.mx
w w w. g r u p o g u s i . c o m . m x
79