Food Drink and Franchise - June 2015

w w w.fdf wor ld.c om • June 2015

EXCLUSIVE! Interview with Cargill Central America MARKETING Beyond Your Niche

How Subway Stays at the Top of the Global Franchise Game

Aliya’s Foods Consistency and Quality

EDITOR’S COMMENT

New HORIZONS W E L C O M E T O S U M M E R —T I M E T O get

outside, expand our horizons, and break free of our comfort zone. In this month’s issue of Food Drink & Franchise, we’re inspired by brands that are pushing the envelope and testing new strategies in an effort to be at the top of their game.

This month, we’re starting out with a look at what it takes to make it as a niche brand today. From organics to gluten-free, competition in the niche market is getting fiercer than ever—but it can still be hard for a brand to break into the mainstream market. However, the key could lie in finding a way to market to the masses. Therefore, we’re looking at various ways that breakthrough brands have explored in order to appeal to a larger audience.

We’re also looking at the top franchises in the world by unit growth, and examining franchise growth role model Subway for clues on how they achieved their success. So read on, enjoy and get inspired to grow your business even further.

Enjoy the issue!

Sasha Orman Editor Sasha.Orman@fdfworld.com 3

CONTENTS

Features

6

FRANCHISING

Top10 Global Franchises

20

What franchises can learn from Subway’s paramount success

R E TA I L

Make Your Company a Lean, Green Marketing Machine

4

June 2015

12

58

30 Juhayna Food Industries

Hero Certified Burgers

Company Profiles AFRICA 30 Juhayna Food Industries

CANADA

48

Aliya’s Foods

42 Association: Fisheries Council of Canada

42

Fisheries Council of Canada

Cargill Central America

48 Aliya’s Foods 58 Hero Certified Burgers

AUSTRALIA 66 Association: Australia Made Campaign Limited

72

80

Hazeldene’s Chicken Farm

106

72 Hazeldene’s Chicken Farm

AgroAmerica

LATIN AMERICA 80 Cargill Central America 92 Bepensa Dominicana 106 AgroAmerica

Bepensa Dominicana

92 5

FRANCHISING

What franchises can learn from SUBWAY’S paramount SUCCESS

What lessons can the growth of the biggest giant of the QSR franchising world teach us about achieving our own franchising success?

Writ ten by: SASH A ORM A N

7

FRANCHISING

WHEN CONSUMERS THINK of fast food franchises, they tend to think of burgers and fries. But while this remains the stereotype, a sandwich and salad chain focused on fresh and healthy options has spent the past four decades quietly building an empire bigger than any other competitor in its class. With more than 40,000 locations in over a hundred countries and territories, Subway is by far the largest single brand QSR chain in the world.

When a brand sees this much success, there are always lessons that can be learned from their journey. What are some points we can take from Subway’s growth to put toward the promise of our own franchising success?

1

VARY YOUR SPACES

In nearly every report on Subway, there is mention of the brand’s success in non-traditional spaces. There’s a good reason for this: Subway has never been shy about getting into tight spaces for the sake of opening a new outlet, and that willingness to break out of the traditional restaurant chain mold has been an integral part of the brand’s long-term success.

As QSR Magazine points out, that determination has found Subway getting into some interesting situations—from a cruise ship to a food truck service following a military unit. But the concept of 8

June 2015

non-traditional space doesn’t have to be that colorful to be effective.

Subway has built a lot of success simply by eschewing the necessity of a stand-alone restaurant model to build smaller kiosks and outlets in hospitals, universities, airports, and gas stations—all high traffic areas sure to attract consumers who will likely be grateful to find a familiar brand offering freshly-made food.

To some degree, it’s certainly about achieving higher density by putting your brand into areas with low square footage and higher profit potential. But it’s also about higher exposure, and it’s a smart way to increase brand loyalty.

L E A R N I N G F R O M S U B W AY ’ S S U C C E S S

Subway has made itself available to consumers in a variety of ways, from small metro shops to mobile food trucks.

9

FRANCHISING

2

DENSITY IS NOT THE ENEMY

When a franchise is growing, there is always a fear that your business will get too large too quickly—you could risk oversaturation to the point where consumers will grow fatigued with your brand and will stop showing up, leading to a drop-off in profits and no other choice but to close unsuccessful units and take a loss. But looking at Subway’s growth plan is enough to consider that taking that leap of faith to grow quickly and densely is a risk worth taking.

In a 2013 discussion with Franchise Times, Chief Development Officer Don Fertman and other regional growth developers explained that density isn’t a problem for Subway. In fact, density is part of its key to growth.

“At a density of about 1 store per 200,000 people], things start to accelerate,” Fertman told Franchise Times, explaining that this tactic of familiarity has helped Subway propel its growth in international markets just as it had in domestic markets. “We have boots on the ground. We have brand awareness. People understand the concept and what we’re about.

Suddenly, things take off.“ 10

June 2015

As another developer told Franchise Times, it’s actually easier to build locations closer together as the brand’s reputation and popularity grows. The only danger is in building them so close together that your brand starts to compete with itself. So density is not the enemy: if the reputation you build is a positive one, density can work with you to help you grow.

L E A R N I N G F R O M S U B W AY ’ S S U C C E S S

3

VALUE THE PEOPLE YOU REACH

Here is a vital lesson that goes hand-in-hand with the concept of achieving growth through density. At the end of the day, success is simply determined by the cold reality of revenue and profits. But profits are not ultimately determined by the sheer amount of units you build alone— concepts like return customers, positive reception and brand loyalty are all critical factors that decide whether those units you build will stick around. So it’s important to honestly value the people who walk in each and every one of your doors every day.

In a separate QSR Magazine piece, Fertman describes the brand’s path to brand recognition—and thereby success—not through the amount of stores, but what that amount of stores means in terms of the thousands of people that each location touches directly. “Our average Subway store generates 8–10 jobs, which means there are about 350,000 jobs in our Subway restaurants alone,” he said (and considering that this statement was made in 2011, there are thousands more locations and jobs today). “We then have 1,200 positions at our

headquarters and regional offices.

Combine that with our partners—the vendors who supply us goods, the farmers and meat manufacturers, food processing, and the equipment providers, and you begin to see that Subway cuts a wide swath. You then add in that 35,000 stores have 35,000 landlords, and each store has provided work to local contractors and builders, and it’s clear that Subway’s a far-reaching brand that goes from Detroit to New Delhi.”

Subway’s commitment to success through brand loyalty also threads through its longest running marketing campaign. Every consumer today who grew up exposed to advertising is aware of Jared and his story of personal success through Subway sandwiches. The 17-year partnership is successful because Jared as a person has been a positive inspiration to Subway consumers, casting the brand itself in a positive light as well and helping consumers link the Subway brand inextricably with not just its food but the people that it serves.

11

R E TA I L

MAKE Y A LEAN MARKE

For organic and g growth can be as e

Written by: SASHA OR

YOUR COMPANY N, GREEN ETING MACHINE

green niche brands, the key to easy as thinking bigger

RMAN

13

R E TA I L WHEN YOUR BUSINESS is starting out, it only makes sense to market within your niche.

Whether you’re fully organic, non-GMO, sugar free or gluten free, you need to be loud and proud to make that factor known. It’s how you set yourself apart, and it’s how you establish a clear brand identity with your consumers.

But after a time, you may begin to feel like you’ve hit a marketing wall— you start to get the sense that the once steady growth of your customer base has slowed or stalled, and that any new advertising campaigns are simply “preaching to the choir.”

If this is where you’re at, it may be time to reach out to new audiences. It may be time to make a bid for the mainstream.

There’s no question that consumer interest in sustainable and organic “green” brands is growing rapidly, but there is still a long way to go in that regard. According to the USDA, the sale of organic brands accounts for just over 4 percent of the total market share of US food sales. While that’s a much bigger market share than the organics industry had 10 years ago— and that number is only expected to grow as the years go 14

June 2015

Can niche products attract mainstrea on— it’s still small compared to the market overall. What’s more, nearly half of that 4 percent is occupied by fresh produce, leaving only around 11 percent at the moment for prepared and packaged consumer goods.

According to Organic Monitor, a research and consulting company that specializes in the organics and sustainability sector, one of the major factors behind this relatively small market share is the fact that many

am sales? organic and green niche brands never market or distribute outside of specialty shopping outlets. The firm’s research indicates that 40 percent of all organic food sales in Europe come from specialized organic and health food-oriented shops. While specialty shops are also expected to take a higher percentage of the market share over the next 10 years— rising to 12 percent for fresh format stores and 13.5 percent for

farmer’s markets— brands that want to increase their growth even further in the meantime need to consider a different approach to marketing.

“The most successful green brands are those who have expanded distribution into mainstream channels,” reads a new report from Organic Monitor. “Such brands have managed to break ‘the green glass ceiling’ and outperform the market.”

While it seems counterintuitive 15

R E TA I L to market outside of your niche, in the bigger picture it makes perfect sense: if you want your product to reach a bigger audience, you need to cast a wider marketing net.

One brand that Organic Monitor cites as a particularly successful example of this concept in Europe has been the organic chocolate brand Green & Black’s. Guided by parent company Mondelez International, the brand launched a $3 million television campaign to promote its organic and fair trade-certified chocolates in an effort to build a more mainstream market following. The payoff has been significant: “sales of the green brand have increased over tenfold from USD 7 million in 2002.”

Meanwhile Annie’s Homegrown stands out as a notable success story in the United States. By moving beyond specialty store shelves into mainstream supermarket shelves, then positioning itself as the more ethical and healthful choice compared to other supermarket options, the brand managed to parlay its niche status from $7 million revenue in the 1990s into $170 million annual revenue, a successful IPO, and a lucrative General Mills acquisition.

16

June 2015

“...in terms of organic foods, a brand may not want to consider low-end retailers where the price premium is significantly larger” - Amarjit Sahota

Of course, it’s not always as easy as it looks to break into the mainstream market. There are both institutional and mental challenges that can preclude a brand from reaching a widespread audience. According to Organic Monitor, one major challenge that a brand can face when deciding on a mass marketing strategy is channel selection.

“The price premium of green products makes this an issue— in terms of organic foods, a brand may not want to consider low-end retailers where the price premium is significantly larger,” says Organic Monitor founder Amarjit Sahota.

“In this respect, many organic

M A K E Y O U R C O M PA N Y A L E A N , G R E E N M A R K E T I N G M A C H I N E

food brands have ventured into specialty food shops and department stores in Asia where the high prices are not so pronounced.”

Another challenge can be competition from retail-owned private labels, which currently hold the highest market share among green brands. “These are doing very well for two reasons,” says Sahota.

“First, private label products tend to be priced competitively compared to branded products— for instance, in the UK: organic milk under private

labels is about £1 per litre, compared to about £1.15 per litre for brands.

Second, retailers are more incentivized to market their own brand products compared to branded products.”

For green packaged foods manufacturers that have the capability to produce private label goods for retailers as well as their own branded products, this route can also be highly rewarding.

For others, one avenue toward mass marketing could be through

17

R E TA I L

bypassing conventional supermarkets altogether and setting up a more exclusive retail network. According to Organic Monitor, this route can shield green brands from having to deal with the complexities of mainstream distribution by handling marketing and distribution more directly. The firm notes that this model has historically been most successful outside of the food and drink world, with cosmetics 18

June 2015

“We are seeing a growing number of home delivery schemes for organic foods which enables companies to deal direct with consumers,�

- Amarjit Sahota

M A K E Y O U R C O M PA N Y A L E A N , G R E E N M A R K E T I N G M A C H I N E

Riverford Organic Farm brands like Korres and The Body Shop, but that could be changing.

“We are seeing a growing number of home delivery schemes for organic foods which enables companies to deal direct with consumers,” says Sahota, citing Riverford’s online organic farm shop in the UK and the similar Bonavito in Germany as examples of this trend on the rise.

Breaking out of a niche market can

certainly be difficult. But with several paths to choose from, mainstream success can be within your grasp— and with the public’s growing interest in organics and better health, there’s no better time than now.

Organic Monitor will be discussing breakthrough green brands and other topics at the 7th European Sustainable Foods Summit, June 4-5 in Amsterdam.

19

TOP 10

TOP 10 Global Franchises Written by: Sasha Orman

21

TOP 10

A FRANCHISE PARTNERSHIP is one of the best ways for a restaurant chain to grow quickly, utilizing the expertise and knowledge of local business partners and regional supply chains to move more easily and efficiently into new markets around the world. Some of the most successful franchised chains around the world are those who don’t just focus on their business at home, but also take care to properly grow their business in as many markets as possible.

The franchises that grace Entrepreneur magazine’s Franchise 500 are ranked along a complex system of criteria including growth, size, stability, and financial strength, and even a business’s growth rate compared to its time in operation. Since we’re interested in size here, we took the ranking’s top 10 global food and beverage franchises and have ranked them based on total locations. So read on and find out which global franchise came out on top.

22

June 2015

TOP 10 GLOBAL FRANCHISES

10

HARDEE’S Locations:1,995 Company Owned:457 International: 274 2015 Franchise 500 Ranking: #17

In the United States, Hardee’s stays in its place as the Eastern representative of CKE Restaurants, while Carl’s Jr. represents the West Coast. But Hardee’s still brings the flavors of CKE overseas as well.

The chain once had a much stronger reach around the world—though this has declined considerably, Hardee’s still maintains a strong presence in New Zealand, Pakistan and many countries within the Middle East.

9

PAPA JOHNS Locations: 4,663 Company Owned: 739 International: 1,270 2015 Franchise 500 Ranking: #30

Papa John’s is one of the largest pizza chains in the world, and it’s also one of the fastest growing. The chain has been ramping up growth overseas, and last year significantly expanded its presence throughout India by acquiring popular regional chain Pizza Corner.

23

8

TOP 10

DAIRY QUEEN Locations: 6,388 Company Owned: 3 International: 1,331 2015 Franchise 500 Ranking: #56

7

Ice cream chain Dairy Queen is in its 75th year, and it’s still growing strong. While reports indicate that the ice cream sector as a whole is in decline, with younger consumers turning increasingly to frozen yogurt and other low calorie treats, Dairy Queen has still been able to stay on top of the sector—and rapid international growth in emerging markets from Taiwan to Trinidad has helped the chain improve its standing even further.

6

DUNKIN’ DONUTS Locations: 11,310 Company Owned: 0 International: 3,224 2015 Franchise 500 Ranking: #11

Dunkin’ Donuts has fluctuated in size over the decades, and hasn’t recently made a habit of franchising with just anyone. But its slow and selective approach to growth has made the donut chain even more covetable in new markets, helping to propel Dunkin’ Donuts toward franchise growth success.

24

June 2015

BASKIN-ROB

Locations: 7,552 Company Owned: International: 4,973 2015 Franchise 50

Dunkin’ Brands has been on its eponymous Dunkin’ Donu Baskin-Robbins. In some way from cobranding with its don Baskin-Robbins unveiled new franchisees and military veter

BBINS

:6 3 00 Ranking: #43

a roll recently with both of its brands, uts as well as its ice cream chain ys, Baskin-Robbins has benefitted nut-based brother brand. But last year w development incentives for new rans that can only accelerate growth.

PIZZA HUT

5

Locations: 14,967 Company Owned: 2,011 International: 5,601 2015 Franchise 500 Ranking: #9

Much like KFC, another Yum Brands-owned franchise, Pizza Hut has also seen a lot of critical success in overseas regions like Japan and China. Adjusting its menu for more localized audiences has gone a long way towards helping both of these brands increase their appeal across multiple markets.

25

TOP 10

4

KFC CORP. Locations: 11,310 Company Owned: 0 International: 3,224 2015 Franchise 500 Ranking: #11

Kentucky may be KFC’s homeland, but the Yum Brands-owned fried chicken chain has seen sizeable success around the world. KFC has developed significantly in Asia over the years, even gaining special significance for decades as the Christmas dinner of choice in Japan, and more recently set its sights on rapid growth in Africa.

3

MCDONALD

Locations: 36,258 International: 15,5 Ranking: #14

As one of the world’s most rec comes as no surprise that Mc the world’s most prolific brand announced a brand new world ceases dividing management focuses on separating saturate and Canada from internationa potential like China, South Kor 26

June 2015

TOP 10 GLOBAL FRANCHISES

2

SUBWAY Locations: 42,227 | Company Owned: 0 International: 12,493 | 2015 Franchise 500 Ranking: #3

When it comes to fast food franchising, there are none bigger than Subway. While its sandwich artists work magic with meats and toasted bread, Subway executives have turned aggressive franchise growth into an elegant art form. While growth in the U.S. market has slowed down in recent years, business is booming in emerging markets like India and Latin America.

D’S

8 | Company Owned: 6,714 527 | 2015 Franchise 500

cognizable brands, it cDonald’s is also one of ds. In May, McDonald’s dwide growth strategy that by regions, but instead ed markets like the U.K. al areas with high growth rea and Russia.

27

TOP 10

28

June 2015

TOP 10 GLOBAL FRANCHISES

1

7-ELEVEN Locations: 53,516 | Company Owned: 489 International: 44,857 | 2015 Franchise 500 Ranking: #10

Overall, this list is heavy on the QSR side, but the global franchise at the very top is so much more than just fast food. With Convenience store chain 7-Eleven is a one-stop shop and a global institution.

29

Juhayna Food Industries

Bringing World-Class Standards To Egypt Written by: Nye Longman Produced by: Kevin Holmes

31

J U H AY N A F O O D I N D U S T R I E S

The Company’s unique approach to its operations has guaranteed it a leading position in the Egyptian juice, yogurt, and milk markets

P

ioneering the production of dairy and juice products for over three decades. Juhayna Food Industries is a leading Egyptian manufacturer that specialises in the producing, processing and packaging juice, milk, and yoghurt juice concentrate. During the past three decades Juhayna has succeeded in winning the loyalty of consumers who have come to view its wide variety of quality products as trusted household names.

As a result of this steadfast determination to maintain its commitment to innovation the company has managed to achieve success in both the Egyptian market and as a regional exporter with consistently high rankings in market share for all of its products.

Today Juhayna has a well-earned reputation as trendsetter in manufacturing, product innovation and marketing activities. Recent market studies indicate that Juhayna enjoys a level of brand awareness and trust that is significantly more pronounced than its

Juhayna launched its highly successful flagship natural yoghurt brand in 1987

32

June 2015

FOOD

Key personnel

Claus Pedersen Director of Marketing and Innovation

Jahayna Pure product. One of Juhayna juice portofolio with 100% concentrate

competitors in the Egyptian market.

By building state-of-art industrial infrastructure, and with over 4,500 employees, Juhayna has steadily increased production capacity while developing and expanding its product range.

Today the company has than 200 SKUs in the market which are all produced at six separate manufacturing facilities and distributed using a fleet of 1,000 trucks and vans, serving customers across Egypt. But the story does not end here: Juhayna is planning for further expansions in the coming years to secure healthy and high quality food products for Egyptians for decades to come.

The Juhayna Group accounts for roughly 70 percent of Egypt’s milk market; it has a share of around 36 percent of the country’s yoghurt market, alongside holding a 25 percent stake in juice. Juhayna products are available to

Claus Pedersen has an MSc in International Business from the University of Alborg in Denmark; he started his career working for various consumer goods companies like LEGO, Akzo Nobel, Royal Unibrew and ARLA Foods. Claus has been working with marketing across more than 25 countries and before joining Juhayna he was GM of Arla Foods in Vietnam where he was responsible for setting up a rep office and launching a new range of child nutrition products.

w w w. j u h a y n a . c o m

33

J U H AY N A F O O D I N D U S T R I E S

Perfect fit to your brand

Starting from one company in 1994, Rotogroup is now one of the leading companies in packaging and rotogravure printing in the Egyptian market with 3 companies specialized in different packaging sectors (Flexible packaging converting, film making, cylinders engraving, and corrugated boxes)

www.rotografia.com • info@rotogroup-eg.com 34

June 2015

J U H AY N A F O O D I N D U S T R I E S

FOOD

consumers all over Egypt through its extensive distribution network. This kind of countrywide success has been established through thirty years of focusing on setting global standards for its food products. As Marketing and Innovation Director, Claus Pedersen says: “Juhayna is an Egyptian company with global standards.”

Juhayna’s success story began in 1983 with Safwan Thabet’s vision to provide his fellow Egyptians with healthy, high quality food products. During this journey the company has grown to control major market shares of the Egyptian juice, yoghurt, and dairy sectors, and has also acquired and established state of the art production capabilities. Its decades of hard work were recognised in 2014, when a study by AC Nielsen rated Juhayna as having Egypt’s highest

SUPPLIER PROFILE

“Juhayna is an Egyptian company with global standards” - Claus Pedersen Director of Marketing and Innovation

ROTOGROUP

Rotogroup is a family of 3 companies.

Rotogravure industrial investment (Rotografia) is one of the leading companies in Egypt in flexible packaging & rotogravure printing field.

With a capacity of 1100 tons/month, supplying most of the local and multinational brands as PepsiCo, Lays, Coca-Cola, Unilever, Nestlé, Danone, Lactalis, Juhayna, Edita, Almarai (Beity), Regina Pasta, and Misr Foods, moreover, Africa, Europe, US and Canadian markets.

Misr Rotogravure for cylinders engraving and film production.

Design and manufacturing of rotogravure cylinders with 800 cylinders/ month capacity, polyolefin and polyethylene with 250 tons/month capacity.

Interpack for corrugated carton and boxes manufacturing, with 1100 ton / month capacity

w w w. j u h a y n a . c o m

35

J U H AY N A F O O D I N D U S T R I E S

In 1993 Juhayna was also the first to launch ‘Light’ yoghurt in various sizes

1,000

Number of vehicles in Juhaynas distribution network 36

June 2015

brand-equity-index score. When it was listed in the Egyptian Exchange Market in 2010, ‘Africa Investor’ dubbed it as the best African Initial Public Offering (IPO). Juhayna’s juice factory won the regional Arab Award of Quality in 2014.

Strategic Operations The Juhayna Group is comprised of different subsidiaries, which enables it to deploy multiple operational capabilities across its product lines and beyond; in the past this has even acted as a buffer for the company in the face of globally adverse conditions. To supplement its state of the art manufacturing facilities, Juhayna utilises 24 distribution centres and over 1,000 vehicles through its subsidiary Tiba. Additionally, Juhayna’s Al-Enmaa company uses modern farming methods to breed dairy cows and grow cattle feed as well as fruit for juicing.

Pedersen said: “In the long term it is securing a

FOOD

very strong supply of high quality raw materials.”

Juhayna believes in the value of long term relations with both its suppliers and customers. Juhayna has been providing McDonalds with products for over 20 years; another good example of its long term focus can be seen in its sponsorship of Al Ahly Football club which began in 1998. Pedersen said: “It is rare to find this kind of commitment in today’s world, but you clearly feel this way of working in the company on a daily basis.”

Technology Pedersen was proud to highlight Juhayna’s pioneering work in setting global standards across range of aspects, he said: “We were the first company to implement a fully automatic warehouse in Egypt and we are currently working on being the first to have environmentally focused packaging.

All this is keeping the company in poll competitive position.” Instead of resting on its laurels, therefore, the company is seeking to implement the latest technology ahead of its regional rivals, and also to maintain a competitive stance with multinational companies with an interest in Egypt.

Alongside fully automated manufacturing processes, Juhayna has recently equipped its sales team with the latest hand held digital mapping technology, which will enable them to track the progress of the company’s distribution fleet in real time, providing the best information possible to customers. Pedersen said: “Here, technologically, this is something that we need to support more and

Key personnel

Safwan Thabet CEO and Chairman Safwan Thabet has been Chairman of the Board of Directors and Chief Executive Officer of Juhayna since founding the Group in 1983.

Mr. Thabet has left a distinctive mark on Egypt’s investment map, having played a central role in the development of the food sector for more than 30 years through various appointments and positions which he has held, including: - Member of the board of the Federation of Egyptian Industries (FEI) - Member of the board of the Chamber of Food Industries - Chairman of the board of the 6th of October Investors Association - Member of the board of Sixth of October Development and Investment (SODIC) Safwan Thabet holds a Bachelor’s Degree in Mechanical Engineering.

w w w. j u h a y n a . c o m

37

Quality control at the El Dawlya factory

J U H AY N A F O O D I N D U S T R I E S

FOOD

more. Currently we are the only one implementing this model, but other companies are looking at it; you just have to be ahead all the time.”

Pedersen noted that with large scale growth comes a great responsibility to succeed in the future, he said: “Growth has usually been between 20 and 35 percent on a yearly basis, this has slowed down but still a very high level compared to other parts of the world. Therefore we are always planning to invest in new machines to cope with these opportunities.

Flexibility is key in Egypt’s current business environment.”

Progressive strategy In order to retain its commanding position in the Egyptian market, Juhayna applies the same global standards to its recruitment and human resources operations as it does to the technological and manufacturing aspects of the company. Juhayna not only aims to source the right person for the job, but also seeks to develop its people through a variety of training methods. Whilst Juhayna is first and foremost an Egyptian company, it is not afraid of dipping into the global talent pool to ensure that its operations stay at the very cutting edge of its industry.

Pedersen said: “We are currently implementing a new skills program to make sure that, no matter what stage a person is at in their development, there will be a way for them to progress. It will be clear what skills people need; we are implementing a plan for

Juhayna’s flavoured drinkable yoghurt which was released to the market in 2001

w w w. j u h a y n a . c o m

39

J U H AY N A F O O D I N D U S T R I E S

“It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.”

- Claus Pedersen

each employee individually.” Implementing a clear, linear career path not only gives employees a sense of direction, but also contributes to company-wide unity.

Juhayna is involved in a range of Corporate Social Responsibility (CSR) initiatives, in line with what Pedersen dubs global standards in ethics. He continued, asserting that it was the duty of the company to lead the way, he said: “It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.” The company is involved in CSR at every level, recognising that its impact

El Dawlya factory - one of Juhayna’s 7 factories established in Egypt 40

June 2015

FOOD

can be on both the small and large scale; whichever endeavour the company is involved in, Pedersen and his team are always asking: “What can we do to make a difference?”

The company has recently funded the renovation of outpatient’s clinics at Ain Shams Specialised Hospital, and has also made provision for free breast cancer screenings and follow up treatment at the centre. Health is an issue that has preoccupied the company’s ethos; not only does the company seek to make healthy products, it has also aimed to donate as much as possible to schools that would not normally afford them.

Juhayna also has a long term contract with Tetra Pak and together they are working together to roll out recyclable packaging across all product lines, as well as using FSC compliant paper when possible. It is therefore evident that the company takes its responsibilities seriously on a deeper level, aiming to reduce its environmental impact through carefully implemented solutions.

Juhayna has quite rightly been dubbed one of Egypt’s best companies in terms of the quality and availability of its products, but also for the work the company does in developing its employees and the communities it operates in.

Its openness to new technology and techniques has cemented its place as a market leader and innovator for years to come. Having operated so successfully, it is ploughing its gains into making these endeavours sustainable for future Egyptians to benefit from.

Company Information INDUSTRY

Yoghurt, Milk, and juice HEADQUARTERS

6 October City FOUNDED

1983 EMPLOYEES

4,580 REVENUE

430 million euros PRODUCTS/ SERVICES

Food, Manufacturing, Food Distribution, Supply Chain, Food Technology

w w w. j u h a y n a . c o m

41

Fisheries Council of Canada Written by: Patrick McGuinness, President

43

FISHERIES COUNCIL OF CANADA

F

isheries Council of Canada (FCC) is the voice of Canada’s fish and seafood industry, promoting a healthy resource and working to develop an economically sound, marketdriven, competitively-structured industry that offers harvesters, employees, and processors secure and stable opportunities and a sustainable future. The Council is a non-profit trade association representing companies engaged in the growing, harvesting, processing, and marketing of fish and seafood.

It is an organization of like-minded fisheries and seafood associations 44

June 2015

and enterprises that support shared, fundamental principles.

First formed in 1915 as the Canadian Fisheries Association, it was reorganized and became the Fisheries Council of Canada in 1945. The Council represents about 100 member companies in Atlantic Canada, Ontario, British Columbia, Quebec, Parries & North West Territories, and Nunavut.

These member companies process the majority of Canada’s fish and seafood production. Member companies also harvest a significant portion of the fisheries resources of Canada. In addition, more than

FOOD DRINK & FRANCHISE

35 Canadian and international companies and institutions providing products and services to the industry are Associate Members of the Fisheries Council of Canada.

FCC maintains ongoing liaison with ministers and officials of numerous government departments, agencies, and parliamentary committees. The Council provides leadership, representing the industry on matters of national and international concern before parliamentary committees, advisory boards and commissions, ministers, as well as foreign governments. FCC maintains ongoing relations with fish

and seafood industry associations in other countries as well as relations with ministries of foreign governments and international organizations such as the Food and Agriculture Organization of the United Nations.

Members receive a monthly newsletter providing key updates on Canadian and international fisheries issues. As well, the Council publishes an annual directory identifying members’ products and services.

The FCC focuses on five key areas: Market Access/Trade Policy; Inspection/Technical w w w. f i s h e r i e s c o u n c i l . c a

45

FISHERIES COUNCIL OF CANADA

Issues; Environmental/ Ocean Use Conflicts; International Fisheries; Fisheries Management; and Communications. Located in Ottawa, our main areas of influence 46

June 2015

concern the policies and decisions of Fisheries & Oceans Canada, the Canadian Food Inspection Agency; Foreign Affairs, Trade, & Development; Environment Canada;

FOOD DRINK & FRANCHISE

Employment & Social Development Canada, and Finance as well as foreign embassies regarding access to their markets The FCC is very delighted by the proactive approach of health authorities of Canada and the USA encouraging consumers to increase their consumption of fish and seafood because of the health benefits. Seafood provides an unmatched variety of great-tasting, easy to prepare protein options. Great seafood is available year round in virtually every corner of Canada.

Finally, despite some doom and gloom reports from some quarters, most forms of seafood production quite likely have the lowest environmental impact of any protein. It is true that one can find examples of species that have been over-fished and that, in certain developing nations, it is critical that we continue to increase our knowledge of the seafood resources and educate fishermen on sustainable fishing practices. It is also true that, as is the case in any method of food production, catching or growing seafood will affect the environment in which it is produced. However, progress is being made every day. For example, in global wild capture fisheries, the United Nations Food & Agriculture Organization (FAO) statistics indicate that further reforms are needed in only 17 percent of fisheries to recover stocks to sustainable levels. For whitefish species like cod and haddock, stocks are increasing around the world as fishing nations have taken the needed measures to protect those stocks.

Company Information INDUSTRY

Fish and Seafood Industry HEADQUARTERS

Ottawa, ON FOUNDED

1945 as Fisheries Council of Canada KEY PEOPLE

Patrick McGuinness WEBSITE

www.fisheriescouncil.ca

w w w. f i s h e r i e s c o u n c i l . c a

47

Aliya’s Foods Ltd

Consistency and Quality Aliya’s Foods Founder and President Noorudin Jiwani discusses certifications, automation and the next generation Written by: Sasha Orman Produced by: Sean Bakke

49

A L I YA’ S F O O D S LT D

Veg Samosas

I Noorudin Jiwani President, Aliya’s Foods Ltd.

Anis Jiwani Vice President Operations 50

June 2015

n 1999, Noorudin Jiwani and his wife, an actuarial consultant and a dietician, decided to quit their 9 to 5 jobs and go into business for themselves. The couple gravitated toward the idea of manufacturing authentic Indian foods, interested in seeing that sector grow and helping it along. From that mutual interest, Aliya’s Foods Limited was formed—after a year of examining options and exploring promising regions of Canada, the company put down roots in supportive business-friendly Alberta.

By its 15th anniversary, Aliya’s Foods has grown extensively from its initial 2,000-square foot facility in Edmonton’s suburb, Sherwood Park. Today Aliya’s Foods operates out of a fully automated, state-of-the-art 42,000-square foot facility, built in 2010 to support the growing

FOOD DRINK & FRANCHISE

New Branding

demand for the company’s Chef Bombay brand of authentic Indian appetizers and entrees from butter chicken and channa masala to pakoras and its most famous samosas. As a supplier to every major supermarket chain in Canada, along with Trader Joe’s in the United States, Aliya’s Foods has grown swiftly over the better part of two decades—and the company is poised for further growth in the near future.

Progress in certification and technology “We both believed if we were going to do anything, we had to make sure that we were fully certified and had HACCP certification,” said Jiwani. At Aliya’s Foods Ltd, third party certification is a crucial part of the brand’s identity and a major factor in its ability to grow beyond its Edmonton roots.

“I think our growth has always come through trade shows. We always evaluate trends based on what consumers are asking for, rather than what we feel ourselves” – Noorudin Jiwani President, Aliya’s Foods Ltd

w w w . c h e f b o m b a y. c o m

51

There is always room at our table.

Crowe MacKay is proud to be the trusted advisors of Aliya’s Foods Limited and is pleased to congratulate them on 15 years of success stories. Our bread and butter is serving and supporting clients like Aliya’s through their growth and development. Call us, we can add to your recipe for success.

10010 - 106TH STREET EDMONTON AB T5J 3L8 TEL. 780.420.0626 | WWW.CROWEMACKAY.CA

Congratulations Aliya’s Foods on your 15th Anniversary!

We are a produce wholesaler based in the Greater Vancouver region that strives to bring only the best quality produce to the markets. We also import many different exotic fruits and vegetables. w w w. pac i f ic f r es h p r od u c e.com Pho n e : 6 0 4 .6 3 8 .12 2 8 Fa x : 8 8 8 . 8 8 0. 8 273 1170 G LE N DRI V E VA NCOU V E R BC V6A 3 M 6

A L I YA’ S F O O D S LT D “If we were not CFIA approved, we could not sell our product outside of Alberta—our first reaction was that, since we would like to sell throughout Canada and the world, CFIA was our first criteria,” said Jiwani. But while the approval of the Canadian Food Inspection Agency is an important jumping off point, Jiwani explained that is only the beginning in a long line of certification approvals. “As soon as we got CFIA approval, this led to HACCP certification. Clients like Costco and Loblaws would not list our products if we didn’t have HACCP, so this opened more doors for us. These were our initial certifications, but eventually we started looking at the US market and therefore the USDA, or the United States counterpart to the CFIA.” From there, Aliya’s Foods has begun to focus on third party certifications like SQF. “Major supermarkets want third party audits, so we keep getting those certifications to make sure none of those doors are closed to us,” says Jiwani. But in addition to creating new opportunities for Aliya’s Foods, the idea of certification for the

FOOD DRINK & FRANCHISE

company is also closely linked to the simple idea of providing proof to the claim that Aliya’s Foods products are the best they can be.

“With my wife being a dietician and very focused on quality, our main objective from Day One has always been: whatever we do, quality has to be of the highest standards,” said Jiwani. “That’s why we kept adding on anywhere we could see having mechanisms in place to measure quality, and why we make sure to keep attaining those certifications. One of our popular mantras is this: we will not sell anything we wouldn’t want to eat at home everyday.”

Learning from the public As a food manufacturer, keeping up with current consumer trends is imperative. Aliya’s Foods strives to maintain a link with its consumers and peers—and there are few better ways to do this than through trade show and expo attendance. While these exhibitions allow Aliya’s Foods to show off new product creations, they also allow the company to obtain crucial feedback and keep an ear to the ground of what consumers are w w w . c h e f b o m b a y. c o m

53

Pakoras

A L I YA’ S F O O D S LT D

looking for from food processors and manufacturers, ultimately helping Aliya’s Foods grow and thrive.

“I think our growth has always come through trade shows,” said Jiwani. “We always evaluate trends based on what consumers are asking for, rather than what we feel ourselves. It’s at trade shows, along with food demos at the store level, that the company is best able to evaluate those consumer trends and spot which ones Aliya’s Foods should aim to meet next.

At the moment, these shows have helped Aliya’s Foods identify and test a number of concerns including further certifications confirming that Chef Bombay branded products are Halal, GMO-free, and gluten-free.

“Everyone is looking for Halal right now, so we ask: ‘how do we now get our products Halal certified?’” said Jiwani. “Non-GMO is also now

FOOD DRINK & FRANCHISE

coming into play as a certification that we are evaluating seriously at the moment, as is gluten-free.

We do make a couple of products that are gluten free, but we are in process of getting certification for that.” As with the many other certifications that Aliya’s Foods has obtained, becoming certified Halal or gluten-free serves to assure consumers that the company lives up to strict standards at all times and is dedicated to maintaining a standardized high quality product for consumers.

Toasting to quality and consistency What sets Aliya’s Foods Limited apart from the competition?

According to Jiwani, some of the company’s most unique and critical traits involve its adamant dedication to quality and consistency. “We

“Our main objective from Day One has always been: whatever we do, quality has to be of the highest standards” – Noorudin Jiwani President, Aliya’s Foods Ltd. w w w . c h e f b o m b a y. c o m

55

A L I YA’ S F O O D S LT D

Anis and Noorudin

We offer product customization, importation, warehousing and distribution for Industrial, Retail and Foodservice customers.

1881 Yonge Street

56

I

w w w. r e u v e n .c o m 416 .9 2 9.14 9 6 Suite 201 I Toronto I Ontario

June 2015

I M4S 3C4

never compromise on quality,” says Jiwani, noting that the company is also set apart by the many certifications that formally back up its claims to quality and consistency.

“Having certifications sets us apart, in the same way that our fully automated facility sets us apart,” said Jiwani. According to Jiwani, the company produces 250,000 samosas each day—an undertaking that would require 40 to 50 people if the samosas were being made by hand instead of through automated processes.

Because of its HACCPcompliant processes, the business is able to maintain an output that is not just impressive in its size but its consistency from batch to batch. “Every batch is identical, said Jiwani. “We differentiate ourselves in those areas, and are very sincere about how we do it.”

Growth in the future ahead As Aliya’s Foods Limited moves into the future, in addition to

FOOD DRINK & FRANCHISE

obtaining its certifications in the Halal, GMOfree and gluten-free arenas, the company is also looking at further growth into new international markets, bolstered by the strength of its brand appeal.

“We’re trying to grow the Chef Bombay brand as being the brand of choice, and we would like to see our branding more prominent,” said Jiwani. “We would like to see ourselves at more supermarkets in the US—until now we have only scratched the surface of the US market—and we are also currently working toward expanding our horizons to Europe.”

But as it continues to grow, the company notes that this growth could not have happened without the support of its employees—a point that becomes even more salient now that the second Jiwani generation is starting to find a place within the business.

“To me, if it wasn’t for our staff which has been so enthusiastic and consistent, we would not have seen the growth we have seen in the last 15 years,” said Jiwani. “The next thing is that we are seeing the next generation of family coming on board—our daughter just finished her MBA and is now joining the company, along with our nephew, and my wife and myself are handing over some of our responsibilities and having a transition. That’s the next generation taking over now. We believe in them, and they believed in us.”

Company Information INDUSTRY

Food Drink & Franchise HEADQUARTERS

6364 Roper Road NW Edmonton, Alberta, Canada T6B 3P9 FOUNDED

2000 EMPLOYEES

100

w w w . c h e f b o m b a y. c o m

57

HERO Certified Burgers

HERO Certified Burgers Takes the Next Step

Founder and President John Lettieri discusses new growth plans, new menu changes, and HERO’s decade-long commitment to quality Written by: Sasha Orman Produced by: Jason Wright

59

HERO CERTIFIED BURGERS

Meatless Mondays

I

n 2003, John Lettieri set out to offer the Greater Toronto Area (GTA) a better choice of burger.

Since then, HERO Certified Burgers has been building a strong base of fans supporting the familyowned chain and its dedication to community and sustainable quality burgers made with 100 per cent Canadian beef. Now the chain is ready for even further growth, taking 60

June 2015

its mission throughout Canada and beyond.

Mindful Growth At its heart, HERO Certified Burgers is a proud regional brand representing the GTA—and while regional brand is ready to grow, it’s a mindful and deliberate growth that will ensure the HERO brand stays on target.

FOOD DRINK & FRANCHISE

John Lettieri, Founder and President

“We’re definitely strong as a regional brand in the GTA, and we focus within that,” said Lettieri, HERO Founder and President.

“We’re working on growth in territories outside of Toronto, like London and Ottawa, but we want to keep our growth close to home.”

Still the brand is taking steps forward to increase its footprint in a major way through international growth, including significant progress within the United States.

“We’ve embarked on a year-long project of registering our trademark worldwide and in the United States, and we are doing our first couple

of stores in Buffalo this year,” said Lettieri, noting that those initial Buffalo stores could launch as early as HERO’s Q3-Q4 of this fiscal year.

The brand’s choice to expand in Buffalo—just over an hour outside of Toronto—still fits in with HERO’s commitment to mindful regional growth. “Being within one to two hours, between response and travel time, allows us to service our future territories and developers properly and efficiently,” said Lettieri. “So that’s the key thing: servicing our territories.”

w w w. h e ro b u r g e r s . c o m

61

HERO CERTIFIED BURGERS Full Traceability from Day One Location is a priority, now more than ever. Traceability is a huge factor in the food and beverage world today.

As consumers want to know more about where their food comes from and its journey from the farm to their plate, businesses everywhere are striving to improve the quality and traceability of their products. At HERO Certified Burgers, establishing that now isn’t an issue because it’s been a standard all along.

“We’ve had that from day one,”

said Lettieri, noting that the chain has an exclusive partnership with Toronto-based Beretta Meats to offer its customers beef from 100 per cent Canadian ranchers. “We’re the first in the burger business in Toronto—if not Canada—with beef raised with no additional hormones or antibiotics and with full traceability. It’s a 100 per cent Canadian product and we know exactly what our cattle are being fed, and how our cattle are treated.”

FOOD DRINK & FRANCHISE

Improving on Sustainability While HERO Certified Burgers has been committed to the quality of its beef from the start, the chain is still striving consistently to make improvements in every area wherever it can. Part of this commitment to improvement means taking steps to increase sustainability measures through new packaging and display efforts.

Starting in 2010, HERO partnered with GreenDustries Packaging on innovative PleatPak™ wraps for its burgers and the Magic Bag™ for its fries. This highly functional packaging options is made from 100 per cent post-industrial/postconsumer recycled paper and uses 35 to 70 per cent less paper per piece than most traditional packaging options in the fast food industry.

Elsewhere, HERO has implemented digital menu boards across more than 50 per cent of its stores already to both reduce waste and streamline its menu process.

“It’s easy to change, so it’s very green friendly and we’re able to change our menu right from home base,” said Lettieri. “There are also

two to three screens on the sides to promote any type of special in-store LTO—any type of communications we want, we can have that on screen. Even though they’re stacked, the screens act as one.”

While these actions have already been implemented, HERO also has further green innovations in the works further down the line. “We’re working on changing our foil paper to a brown paper, getting rid of all that aluminum,” said Lettieri. “We’re working aggressively to be able to offer as many green alternatives as possible.”

A Non-GMO Promise One major consumer-driven trend that has been picking up steam within the QSR and fast casual industry is an interest in going fully GMO free. HERO Certified Burgers has committed to this idea in full, revamping its entire ingredients list.

“We’ve been working very strongly on removing all GMOs from our food,” said Lettieri. “Our bread will now be totally GMO free, as we’ve taken out and replaced the fat with olive oil in our recipe. Our efforts will be ongoing with non-GMO foods as w w w. h e ro b u r g e r s . c o m

63

HERO CERTIFIED BURGERS

Heavy Hitter

much as possible.”

According to Lettieri, the motivation behind this campaign is simple: it’s a choice that consumers are increasingly looking for, and HERO wants to be the brand of choice to provide it. “I think in the burger game, there needs to be at 64

June 2015

least one player in the market that is committed to getting to the basics and the natural aspects of food as much as possible,” he explains.

“We believe it’s important that the future generations and future demographics should have the opportunity to have a burger with full

FOOD DRINK & FRANCHISE

traceability in its beef, and as much non-GMO in that burger as possible. It’s important, isn’t it? It’s the future.”

A Call for Variety In addition to a higher demand for GMO-free options, Lettieri has found that consumers are also crying out simply for more choices in general beyond the standard beef. HERO Certified Burgers answers the call of this rising trend with a menu that is simple yet varied and always experimenting with new ideas.

“The other menu products on our menu are really trending upward—our Alaskan salmon filet, our turkey burger, our veggie burger,” said Lettieri, noting that the brand is also currently testing a smaller double patty “Pro Burger,” topped with a consumer’s choice of either zucchini tempura or sautéed mushrooms and sautéed onions in the middle, in about three preliminary test markets to gauge response. As Lettieri explains, providing these different choices actually helps bring diners together by providing one spot where everyone can find something on the menu to satisfy their cravings and meet their dietary needs.

“We’ve found that people are looking to introduce a vegetarian meal at least once a week into their diet, and we also have pescatarians that are looking for options,” said Lettieri. “Having that available at HERO makes the burger place desirable for all members of the family, and really for all walks of life.”

Company Information INDUSTRY

Food Drink & Franchise HEADQUARTERS

78 Signet Dr. Suite #201 North York, Ontario, Canada, M9L 1T2 FOUNDED

2003 EMPLOYEES

300+ REVENUE

Did not Disclose PRODUCTS/ SERVICES

Premium Burger Chain

w w w. h e ro b u r g e r s . c o m

65

Australian Made:

Australia’s must-have mar for genuine Aussie produc

rk cts

AUSTRALIAN MADE

Australia’s registered country-oforigin certification trade mark The not-for-profit Australian Made Campaign administers and promotes the famous green-and-gold kangaroo logo, Australia’s registered country-of-origin trade mark.

The iconic Australian Made, Australian Grown (AMAG) symbol has been identifying Australian goods 68

June 2015

since 1986, and is now used by more than 2000 companies on some 15,000 products to identify genuine Aussie products and produce.

The stylised kangaroo has been used in countries all over the world by exporters to clearly establish their products and produce as Australian.

In fact, approximately one third of the companies who use the

AUSTRALIA

logo, export their goods. The logo provides crucial authenticity in these export markets, reinforced in recent years by the registration of the trade mark in China, Singapore, South Korea and the USA, with plans for further registrations underway.

Market research* reveals more than 98% of Australian consumers recognise the logo,

and 88% trust it. It is backed by a multi-million dollar marketing and communications campaign, and its significant and growing recognition and trust in Australia throughout the world, particularly in Asia, make it a powerful marketing symbol for Australian growers and manufacturers.

w w w. a u s t r a l i a n m a d e . c o m . a u

69

AUSTRALIAN MADE A comprehensive online database The Australian Made Campaign recently launched its new website, www.australianmade.com.au.

Featuring products and produce from thousands of Australian farmers and manufacturers, the website enables consumers to quickly and easily find locally made, grown or caught products.

Only products certified to carry the AMAG logo can be featured.

Every business has its own online listing, fully searchable by name or products offered and integrated with social media.

cities throughout 2015, with the intent to offer fresh produce as well.

Australia’s Federal Minister for Small Business, Bruce Billson, said an ‘Australian Made’ retail presence showcasing the very best and most authentic Australian products to the crucial Chinese market was truly exciting. “Knowing that suppliers have an ‘on the ground’ partner to market their ‘Australian Made’ products to increasingly discerning Chinese consumers builds exporter confidence and optimism, and local jobs and economic opportunities,” Mr Billson said.

Australian Made branded stores 2015 also marks the launch of ‘Australian Made’ branded stores in China, under a new partnership with Australia Made Shop Pty Ltd (AMS). There is already a network of Australian Made branded stores in South Korea.

AMS will only showcase products certified to carry the AMAG logo to the affluent Chinese market.

Initially launching in the Shanghai Free Trade Zone in February, stocking shelf-stable products, stores are set to open in other major

The certification process If your products are made or grown in Australia, you could be eligible to use the Australian Made, Australian Grown logo.

To qualify, your products must comply with the criteria for one of the following descriptors: • Australian Made: The product has been made in Australia and over 50 per cent of the cost of production cost has been incurred in Australia.

• Australian Grown: All significant ingredients are grown in Australia and almost all processing has been

70

June 2015

AUSTRALIA

carried out in Australia.

• Product of Australia: All significant ingredients come from Australia and almost all of the manufacturing/processing has been carried out in Australia.

• Australian Seafood: All significant ingredients are grown/ harvested in Australia and almost all processing has been carried out in Australia.

• Australian (for export use only): The product must satisfy the criteria for at least one of the four preceding claims, and not be misleading.

It is important to note that, for food products, the rules for using the AMAG logo with an ‘Australian Made’ claim are more stringent than those applying under the Government’s Australian Consumer Law. A stricter set of criteria about what actually constitutes ‘substantial transformation’ was introduced several years ago to reduce any confusion about a food product’s true country-of-origin.

Australia’s reputation for high quality, health and safety standards in manufacturing has helped to create a strong nation brand for

businesses to leverage, and if you qualify to use the logo, there are a few easy protocols you can put in place to be sure you get the most out of it. These include: • Placing the logo clearly and visibly on the front of product packaging; • Promoting the logo extensively across all marketing and communications materials • Using the logo as part of your sales pitch, to help convert sales and secure Government contracts.

How much does it cost?

The annual licence fee is based on the actual sales of licensed products for the previous 12 months, and is charged based on the range your turnover falls into.

There is a fixed fee associated with each range. The minimum fee is $300 plus GST for annual sales up to $300,000, and the maximum fee is $25,000 for annual sales over $45,000,000.

To find out more, visit www. australianmade.com.au/forbusiness.

w w w. a u s t r a l i a n m a d e . c o m . a u

71

Hazeldene’s:

Hazeldene’s Embraces a Future of Growth

With three generations at work, family owned and operate poultry producer Hazeldene’s honors its history, while loo technology and new directions for growth in the future.

Written by: Sasha Orman Produced by: Glen White

ed oking to

73

HAZELDENE’S

Fully automated evisceration equipment ensures a quality product.

T

he world can change a lot in nearly 60 years. Hazeldene’s Chicken Farm began in the late 1930s, but was founded in 1957, by the husband and wife team of Dick and Mavis Hazeldene, and the company remains family owned and operated to this day.

But that family has expanded— today Hazeldene’s is a leader 74

June 2015

in poultry production and the largest private employer in its home of Bendigo, Victoria. While Hazeldene’s is committed to honoring its past and its family name, it’s also a major operation that is fully embracing the future, with all the innovative technology and consumer-driven trends that the future brings.

FOOD & DRINK

Growth Through Technology Technology has evolved rapidly over the years, and that includes cutting edge farming and agricultural technology. “Our business has always been keen to establish better processing through the use of the latest technology systems,” says Adam Hazeldene, a third-generation Hazeldene and Technical Services

Manager for the business, who completed studies in Computer Systems Engineering and traveled to work with poultry organizations throughout Europe before returning home to Hazeldene’s armed with education and innovation.

Hazeldene’s has been investing heavily in state-of-the-art poultry equipment to streamline and w w w. h a z e l d e n e s . c o m . a u /

75

HAZELDENE’S improve its processes across several of the company’s supply chain stages. Highlights of this equipment include fully climatecontrolled lairage areas, a multiphase gas stunning system in keeping with the modern poultry industry’s best practices, and a brand new AeroScalder for improved defeathering. The business has also been working steadily over the last decade to grow and integrate its automation and SCADA systems.

“We have a great relationship with some of the major equipment manufacturers, and we’re passionate about working to a smarter process,” says Hazeldene.

“We’ve had our challenges along the way, but I believe we have a very robust system in place. It’s taken significant resources and planning to get our automation to where it is today—however, I’m confident that this has and will continue to prove its worth over time.”

CUSTOMISED REFRIGERATION SOLUTIONS FOR PROCESSING AND STORAGE Gordon Brothers are at the forefront in providing Freezing, Cooling and Storage Solutions for a wide range of industries.

03 9389 6666

www.gordonbrothers.com.au

FOOD & DRINK

Consumers Driving A Better Caliber of Poultry Consumer interests and demands have been driving many trends throughout the food and beverage industry, and one major interest has been in the quality and care of the food they’re consuming.

The RSPCA’s Approved Farming Scheme was introduced to give consumers peace of mind in a higher standard of animal welfare for Australia’s farm animals—and with ethics that align with this goal, Hazeldene’s takes pride in being one of the earliest adopters of the RSPCA Approved Farming scheme.

“We’ve always been focused on our animal husbandry and animal welfare, so formalizing this focus with RSPCA accreditation really made sense for us as a business— this attribute runs deep through the company on all levels,” says Hazeldene, who notes that the company’s quality and standards throughout its farming division have only improved with the introduction of the program.

“The other trend I see is that food standards over the last years have raised the bar increasingly,

and we expect that to continue,” says Hazeldene. “I believe our employees have embraced this and are engaged to drive the necessary changes. I think into the future consumers will want to know more about where their food comes from, who produces it and what goes in it, and I see opportunity for locally grown and produced food to flourish.”

Shifting Focus While Remaining Centered Hazeldene’s has traditionally been a primarily business-to-business brand, focusing on capturing the wholesale market as well as the retail market as a supplier for supermarket private label brands. But as consumers interest in free range and sustainably raised chicken is growing, Hazeldene’s is shifting its focus and coming into its own.

“We’ve recently reached a milestone in that we are about to launch three products under Hazeldene’s brand into Coles supermarkets nationally next month,” says Hazeldene. It’s both a milestone and a signifier that Hazeldene’s is in the midst w w w. h a z e l d e n e s . c o m . a u /

77

HAZELDENE’S

The water chilling area of the process ensures a fast “shock” chill, giving a much more tender product.

78

June 2015

FOOD & DRINK

of a very strong period of growth. “Because food standards have risen considerably, the retailers are now asking us for things that were not part of our organization even five years ago—it’s a big change, but it has challenged us to rise to the occasion. I see further growth in the free range market and export market, and more focus on the Hazeldene’s brand of products for us as a business.”

But for as long as the company continues to grow and evolve with time, at the core of the business is a pride in the family name and in the work that this family—and its extended family of farms and staff—works to produce every day.

“Our business strategy has always been focused around the idea that if we produce something of exceptional quality, our customers will stick with us,” says Hazeldene. “Everything we do here 100 per cent revolves around producing a quality product for a consumer-driven market,” says Hazeldene. “We’re very proud of our family name. So we don’t sacrifice or take short cuts: we do what we say, and we are who we are.”

“Retailers are now asking us for things that were not part of our organization even five years ago—it’s a big change, but it has challenged us to rise to the occasion”

Company Information INDUSTRY

Food & Drink HEADQUARTERS

Lockwood Victoria, Australia FOUNDED

1957 EMPLOYEES

1000+ PRODUCTS/ SERVICES

Established in 1957, Hazeldene’s has been a proud family-owned poultry production company for nearly six decades. Strong in its commitment to superior animal welfare standards and sustainable practices, Hazeldene’s is proud to offer RSPCA certified, Free Range certified as well as conventionally farmed chicken.

– Adam Hazeldene, Technical Services Manager

w w w. h a z e l d e n e s . c o m . a u /

79

Writtten by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor-In-Chief Produced by: Taybele Piven, Director of Operations for WDM Group - LATAM Interviewee: Xavier Vargas, President for Cargill in Central America

Investments that wil STRENGTHEN Central America’s Products and Distribution 80

June 2015

“Our purpose is to work within clear strategies and investments to cater for and help develop the communities we belong to�

- Xavier Vargas, President for Cargill Central America. w w w. c a r g i l l . c o m . h n / e s

81

CARGILL CENTRAL AMERICA

C End of the Responsible Linking program, counting with four of Cargill’s distributing clients: Distribuidora EMVI, Rapalo Corporation, Concentrados & Servicios Multiples, and PROCOMSA

82

June 2015

argill’s presence in Central America has been an ongoing affair since the late 1960s, as this was the year of the company’s first acquisition in the region. In the mid-1970s, a new affiliation changed the company’s business direction, from producing concentrated food to poultry farming, processing and marketing.

As years passed by, Cargill’s business in the area was mostly established in Honduras, Nicaragua and Costa Rica, with lesser investments in other countries such as Guatemala. The company’s operations have extended to production and distribution of food for pets, operating a Purina licensee in the area, and acquiring and developing cold cut brands.

Cargill’s main endeavor is to help all countries the corporation has businesses in, to surpass the inherent condition of commodity suppliers by developing and marketing goods with added value, which -in this case- takes Cargill to use the raw material in seeds growing in Central America as to feed livestock raised in the company’s farms and complete every process all the way until reaching consumers, who will pick ready-tocook products in the region’s supermarkets. This implies branding for different products, different countries, as well as developing and maintaining distribution channels.

“Our purpose is to work within clear strategies and investments to cater for and help develop the communities we belong to,” explained Xavier

L AT I N A M E R I C A

Vargas, President for Cargill Central America.

Vargas graduated in food engineering from Mexico’s acclaimed Monterrey Institute of Technology and Higher Education (Monterrey campus) and afterwards earned his MBA from ADEN Business School. He was hired by Cargill in 1996 as training manager and has also performed in other departments such as purchases, and commercial management, among others. From 2002-2008 he ran his own coffee roasting business.

“During those six years I was fulfilled with wonderful experiences. The food industry is very promising in Central America,” Vargas recalled.

Growing Along with Local Economies Central America’s development as the thriving region it will surely happened at a slow pace,

Key People

Xavier Vargas Presidente for Central America Vargas graduated in food engineering from Mexico’s acclaimed Monterrey Institute of Technology and Higher Education (Monterrey campus) and afterwards earned a MBA from Aden Business School. He was hired by Cargill in 1996 as training manager and has also performed in other departments such as purchases, and commercial management, among others. From 20022008 he ran his own coffee roasting business.

Cargill Products w w w. c a r g i l l . c o m . h n / e s

83

L AT I N A M E R I C A

mostly due to every country’s infrastructure. No matter how long it takes for certain developments to happen, Cargill cherishes these fertile soils for its foreseeable potential.

Cargill’s operation of developing and distributing value added goods breaks the mold of the regular business activities for the area. But its success also depends on purchasing power by Central America’s inhabitants.

“In this region, in the same way each economy grows, GDP develops and people have more access to these foods,” Vargas explained.

Partnering with Governments for Region’s Development Cargill’s most important partnerships in Central America are those established with the region’s governments.

Under this concept of sustained area development of countries and companies, David MacLennan - CEO for Cargill globally- visited

Previous sight of the company’s master plan for Nicaragua

w w w. c a r g i l l . c o m . h n / e s

85

C O M PA N Y N A M E

Xavier Vargas at the launching of the Cargill Master Plan and investments in the region

“We must inspire other companies to do the same good deeds we perform as well as learning from them” – Xavier Vargas, President, Cargill Central America

86

June 2015

Central America during March 2015 to get acquainted with every country’s president and establish mutual cooperation agreements for the food industry.

“We like to take on a leading role among our sector to earn each country’s trust,” Vargas summed up.

Investments for Each Plan and Country Cargill investments in the area are planned according to each company’s development stage and needs. By 2020, the food producer plans to invest between $300 to $500 millions in Central America, among these developments the main ones are:

SECTOR

Cargill’s award-winning “Pollo Norteño”, considered one of the best brands in Honduras

1. Nicaragua: The master plan for Nicaragua foresees a $50 million investment, aimed to mainly develop a product distribution center and a new production plant, a joint effort which will reduce product costs in production and logistics; also in Nicaragua, $2 million are to be invested in developing a sorghum seed whose use is able to increase efficiency by 15 to 20 percent.

The committed staff

2. Honduras is being granted $2 million investments in automation processes, thus increasing the company’s competitiveness.

at Cargill

3. Costa Rica: Plans for Costa Rica are destined to increase consumption of value added products, with a $5 million investment to build a

w w w. c a r g i l l . c o m . h n / e s

87

CARGILL CENTRAL AMERICA

new packaging plant to produce ready to cook products through different brands.”We want to export the new product line all over Central America, offering consumers more value in each product,” Vargas commented.

4. Guatemala: According to this economy, Vargas mentioned: “It is an important and large market, we want to grow by investing in a production plant and distribution center. We are also looking for new distribution lines.”

Cargill products in Central America

L AT I N A M E R I C A

Staff Management Cargill’s staff management has proven to be a success in Central America. Employees in every level are subject to talent detection and constant skill testing, including “nine box grid” evaluations, in order to be placed in the best position possible for them to work with the best attitude; even career plans within the company are individually designed for each kind of worker, avoiding a high turnover rate.

The Great Place to Work evaluations for Cargill in Central America favor Nicaragua and Honduras, ranking 2nd and 4th, respectively, since these two countries have been the ones in which Cargill has had more longevity in the area; but Cargill companies in Costa Rica and Guatemala will surely make these rounds in the near future.

“We have individual development programs at every level within the organization to provide a high engagement rate with employees,” the executive pointed out.

Social Responsibility: Efforts Toward Surrounding Communities Cargill’s efforts to improve each of its surrounding communities start with their own, by providing constant incentives to hired staff: subsidy for long commutes to workplaces, seminars on safety measures, and similar programs. Also the company takes as its own responsibility the continuous development of current sorghum

“There are plans for the next five years and mutual trust between Cargill and local governments to work together toward the development of Central America” – Xavier Vargas, President, Cargill Central America

The committed staff at Cargill

w w w. c a r g i l l . c o m . h n / e s

89

CARGILL CENTRAL AMERICA

Beneficiaries of “Nurturing the Future� program, a partnership between Cargill and the NGO, CARE

growers in Nicaragua working for Cargill.

Over 80 NGOs work with Cargill along with 12,000 people in Central American communities in an effort to take animal protein into these villages. Cargill also performs intense benefit work for surrounding schools, adopting them to improve structural conditions, furnishing them properly and deploying their school meal programs, also taking animal protein to these learning centers where the meal program is a factor for increasing attendance rates.

The efforts favoring Salvador de la Selva rural school in the Los Madrigales community in Nicaragua stand out, as last April more than 140

L AT I N A M E R I C A

students and teachers of this school received each a laptop computer, an indispensable resource for learning, considering current global demands.

Company Information NAME

Cargill Central America

“90 percent of our staff works voluntarily for the community for at least one day per year, supporting any of the efforts we perform for our community,” Vargas said.

INDUSTRY

Food, farming, poultry, packaged cold cuts HEADQUARTERS

Countdown to 2020 Regional development plants for Cargill include investments between $300 million and $500 million in Central America. Most of this budget is to be distributed among existing business units in Nicaragua, Honduras, Guatemala and Costa Rica. Other efforts include strategic marketing studies to create a development plan to perform until the year 2020 along with the area’s governments, and to determine those sectors in which Central America presents advantages providing economic growth, including livestock breeding, farming, fishing, mining and tourism.

San Pedro Sula, Honduras FOUNDED

1969 EMPLOYEES

10,000 REVENUE

USD $1,600 MM WEBSITE

www.cargill.com.hn/es

“There are plenty of plans for the next five years and mutual trust between Cargill and local governments to work together toward the development of Central America,” the president finalized.

w w w. c a r g i l l . c o m . h n / e s

91

Bepensa Dominicana: Amidst a Sea of Opportunities Coca-Cola’s operation in the Dominican Republic is a resourceful unit transcending financial accomplishments by contributing to its community and environment.

Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations in LATAM for WDM Group Interviewee: Juan Amell, CCO for BEPENSA Dominicana w w w. b e p e n s a - b e b i d a s . c o m

93

BEPENSA DOMINICANA

T

Bepensa Dominicana Sales Convention 2015

Bepensa Dominicana, a global brand bottling company

he Coca-Cola Company’s long-time licensee for bottling and distribution in the Dominican Republic had been Refrescos Nacionales, S.A. In 2006, the company was acquired by southeast Mexico’s giant Grupo Bepensa, and changed its name to Bepensa Dominicana, becoming the corporation’s first venture beyond Mexican soil. Currently, Bepensa Dominicana has a 50 percent market share in non-alcoholic beverages on their side of the island. The country’s weather and location provide opportunities for growth in the tourism and hospitality sectors. Supported by the local population’s steady demand, Bepensa Dominicana finds itself in the best-case scenario to continue increasing its production and distribution network.

The bottler’s success in bringing revenue and also creating openings for new jobs allows for developing new ways of interaction with consumers and engaging in matters involving the community and the environment.

It June be a common thought that being a domestic bottler and distributor for a brand as important as Coca-Cola brings instant success. Junebe, but it also brings along responsibilities like keeping up with global standards. Bepensa Dominicana has become the first Dominican company to achieve four international certifications for their best practices,

94

June 2015

L AT I N A M E R I C A

constant quality and care for the environment.

These are ISO:14001, ISO:9001 OHSAS:18001 and FSSC:22001. Bepensa Dominicana is no stranger to accolades such as the Dominican Republic’s National Quality Award, the maximum award given to companies in the private sector for their environmental efforts, lifestyle, health and community developments.

The company produces and distributes 12 brands, including Coke, Country Club, Canada Dry, Powerade, Powerade and others.

“We strive to keep contributing to our country’s industrial, social and financial development,” said Juan Amell, Chief Corporate Officer for Bepensa Dominicana.

Key People

Juan Amell CCO for BEPENSA Dominicana Amell is an industrial engineer. He earned his Bachelor of Science degree at Santo Domingo Tech Institute and his M.S. at Georgia Institute of Technology. He was first hired in 1995 by Refrescos Nacionales and became involved in the distribution, sales, marketing, supply chain and key accounting departments within the company during his now 20-year tenure.

His results and work ethic earned him consideration in 2015 for the CCO position in the venture now known as Bepensa Dominicana.

Bepensa Dominicana in celebration of 4 certifications: OHSAS 18001, ISO 14001, FSSC 22000 and ISO 9001 w w w. b e p e n s a - b e b i d a s . c o m

95

SUPPLIER PROFILE

COMPANY NAME

Employees: Xxxxx Established: Xxxx Industry: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx.

Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx.

Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Management: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Website: address goes here as the last entry

BEPENSA DOMINICANA

L AT I N A M E R I C A

Amell, hired in 1995 by Refrescos Nacionales, is an industrial engineer. He earned his B.S. at Santo Domingo Tech Institute and his M.S. at Georgia Institute of Technology. He’s been involved in the distribution, sales, marketing, supply chain and key accounting departments within the company.

Bepensa Dominicana headquarters

“I’m proud to work for an organization whose motto is ‘surpassing high expectations’,” the executive stated.

Clear Objectives Within The Territory Goals for a Coca-Cola licensee such as Bepensa Dominicana are designed according to its territory. Searching for new opportunities and clients, hence growing its distribution network is one of its main purposes. Other endeavors include management of new and existing products and developing new and better ways of reaching out to consumers.

Inside Bepensa’s production facility

Conditions Demand Supplier Development Operating on an island certainly demands special considerations in logistics and supply chain management. Tasks such as storage, imports and shipments become very relevant.

Bepensa Dominicana does its best at reducing some of these expenses by developing local suppliers, able to fit into the Coca-Cola system’s supply chain and quality standards. Supplier development efforts by Bepensa have brought w w w. b e p e n s a - b e b i d a s . c o m

99

C O M PA N Y N A M E

Coca-Cola bottling company licensee Bepensa Dominicana executives; upper-level management for the bottling company: Jeremy Faa, Ignacio Ponce, Fernando Ponce, Andres Zentella. Photo by Luis Ruiz Tito/Presidence of the Dominican Republic

“We strive to keep contributing to our country’s industrial, social and financial development” – Juan Amell, CCO for Bepensa Dominicana

100

June 2015

more than savings for the company. They’ve had a positive impact by creating new job openings with Bepensa’s suppliers.

“We have focused on working with local enterprises, aiding their development for fulfillment of our company’s needs,” Amell explained.

Specialized Staff A work force of 2,700 in-house employees and 15,000 parallel workers contribute to Bepensa Dominicana’s operations. Regular technology deployments and standard updating by CocaCola demand continuous training and skill upgrade for this workforce; an effort undertaken successfully by Bepensa.

SECTOR

Tour of Bepensa Dominicana’s recently-opened facilities Photo by Luis Ruiz Tito/Presidence of the Dominican Republic

“There is plenty of talent and capability among locals to join and develop alongside our company,” the executive said.

Driving Force in Environmental Awareness and Sustainability

They also produce Jugos del Valle

Complying with domestic and international laws and regulations is the company’s starting point towards its efforts to contribute to the improvement and well-being of the environment and community. PET bottles’ weight has been reduced 35 percent. Awareness about recycling is being raised among consumers. Most of the material used by Bepensa Dominicana—glass, plastic, cardboard—is handled afterwards by specialized recycling companies. In a joint effort w w w. b e p e n s a - b e b i d a s . c o m

101

BEPENSA DOMINICANA

L AT I N A M E R I C A

with the country’s Network for Corporative Support Towards Environment Protection and the Inter-American Development Bank, Bepensa Dominicana created a program supporting organized waste collection of solids. The program has already been implemented in east Santo Domingo, Samana and San Pedro de Macoris. It is projected to improve the quality of life of 40,000 households, including those of individuals whose recyclable waste collection is their main support.

Coca-Cola Christmas celebration in the Dominican Republic

Also, following their commitment to give back to the country’s environment, Bepensa Dominicana’s production facility has its own water treatment plant. And that’s not all. The company also established a partnership with the Nature Conservancy Association (TNC), creating a water protecting program in four of the Dominican Republic’s main rivers (Ozama, Haina, Nizao y Yaque del Norte). Part of the program’s goals include sanitizing more than 84 million gallons by 2016 and maintaining this rate in order to become a water-neutral enterprise by 2020, along with the rest of the global Coca-Cola production facilities.

“Bepensa Dominicana is a socially responsible company, committed to improving the quality of life of the communities we work in,” Amell said.

Past, Present and Future: Commitment to the Country

w w w. b e p e n s a - b e b i d a s . c o m

103

BEPENSA DOMINICANA

L AT I N A M E R I C A

Currently, Bepensa Dominicana distribution serves 70,000 clients. As long as the market grows, the company will be able to increase its production and distribution capacity and create new jobs. The company is far superior to PepsiCo in the Dominican Republic and has earned Mexico’s Grupo Bepensa’s trust.

“For us at Bepensa Dominicana, it is important to keep a commitment to the country’s financial stability, create new job opportunities and keep up with our production and distribution standards,” summarized the CCO.

“The Dominican Republic’s scenario for growth and development offered to foreign investment were enticing for Bepensa to choose this country as its first international operation”

Company Information NAME

BEPENSA Dominicana INDUSTRY

Beverages: Non-alcoholic drink bottling co.

HEADQUARTERS

Santo Domingo Este, Santo Domingo, República Dominicana FOUNDED

2006 EMPLOYEES

2,700 REVENUE

USD $180 million WEBISTE

www.bepensa-bebidas.com

– Juan Amell, CCO for Bepensa Dominicana

w w w. b e p e n s a - b e b i d a s . c o m

105

A Sustainable Operatio Benefitting Nature and the C

AgroAmerica’s leadership in banana and palm oil productio business aspect, setting an example of caring about the en workforce and their community.

Written by: Mateo Rafael Tablado, Associate editor Interview by: Rebecca Castrejón, Editora en jefe Produced by: Taybele Piven, Operations Director for Latin America at WDM Group Interviewee: Bernardo Roehrs, CCO for AgroAmérica

on Community

on goes beyond the nvironment, their

AGROAMERICA

T

Aerial view

“Production of organic goods brings technical challenges in order to accomplish the same quality and production levels which consumers demand” – Bernardo Roehrs, CCO for AgroAmérica

he magnitude of AgroAmerica’s operation is a result of more than 50 years of focused development. Besides enviable production amounts and exports of banana and palm oil, the company’s network has become a stronghold comprised of fellow banana and palm growers, trade-related government agencies, domestic and global business chambers and NGOs with global presence. The company’s interactions provide of production optimization, raising environmental awareness, improving the quality of life of their employees and creating a positive outreach in the surrounding community. 12,000 workers carry on AgroAmerica’s mission across Guatemala, Panama, Peru, Ecuador, United States, Mexico and Costa Rica.

Growers, Shippers, and Making the Most Distributors AgroAmerica’s business units are: · Fruit production, distribution and commercialization (organic and conventional banana, mostly), including logistics and transportation · Palm oil production and processing · Investments within the area: including partnerships with entertainment, fast food chains and renewable energy company. · Partner in a commodity Hedge Fund in the US Certifications, Awards and Other Accolades AgroAmerica is recipient of multiple certifications

108

June 2015

L AT I N A M E R I C A

for product quality, best business practices, CSR and care for the environment, among other attributes. The company’s merits have been acknowledged by Guatemalan government agencies of the trade, NGOs with global presence, domestic and foreign commerce chambers within the banana and palm oil trades, the Rainforest Alliance, UNO affiliates such as FAO, UNEP and UNAIDS are also witnesses to AgroAmerica’s practices, and even Walmart and Kroger -the U.S.’s first and second largest retail chains- have shown appreciation to the company as an excellent supplier with exemplary corporate social responsibility.

Strategic Partnerships Aside from business alliances, AgroAmerica struck mutual cooperation partnerships with domestic and foreign colleges, such as: Univeristy

AgroAmerica is one fo the largest growers, shippers, and distributors of banana in Latin America

Key People

Bernardo Roehrs CCO for AgroAmérica Roehrs, an agronomist, graduated from Honduras’ Panamerican Farming School in the early 1980s. He has earned masters’ degrees in business management and other subjects related to the food sector. He has worked for important Central American companies such as Pantaleon, Almacenes Paiz, La Fragua, Juneacrops and Walmart Centroamerica in different departments: purchases, marketing, accounts, regional management, among others. Roehr is a member of different chambers and associations within the trade; in fact, he has been appointed chairman at some of these groups.

He’s also a professor in University of the Isthmus executives’ masters program.

w w w. a g ro a m e r i c a . c o m

109

AGROAMERICA

L AT I N A M E R I C A

of the Isthmus and Rafael Landivar University -both in Guatemala, and also with Spain’s University of Navarra and Colorado University in Denver. Regarding their peers, AgroAmerica is a member of the World Banana Forum, World Economic Forum, The Sustainability Consortium, World Food, Business for Social Responsibility, and CentraRSE (from Guatemala), among others.

Other partners government agencies such as Social Development, the Labor Ministry, and the Ministry for Food and Farming, among other related entities.

Agroamerica seeks to increase the quality of life of its employees

Human Resource and Community Outreach Besides being actively involved in environmental protection and wildlife preservation programs, AgroAmerica’s most important responsible duties are those directed towards their working

SUPPLIER PROFILE We specialize in heavy transport service refrigerated cargo in complete shipments by land in Central America. As additional services we offer cargo insurance, transport units with GPS, custody, customs bond, for 20 ‘and 40’ chassis, cooling, and fueling office. Our premises are strategically located to facilitate logistics operations. We started operations in 1992 in Guatemala, where Juneria national and international shipments are coordinated.

CEO: Rodrigo José Perera Pacas Website: www.interlogicservice.com w w w. a g ro a m e r i c a . c o m

111

C O M PA N Y N A M E

Helping their human resource and surrounding communities

“We want to become engaged deeply within the communities where we operate” – Bernardo Roehrs, CCO for AgroAmérica

112

June 2015

staff, employees’ families and communities around their plantations, storage and processing facilities. The company provides different programs in areas such as nutrition, savings, field trips by doctors and specialists, health awareness and illness prevention seminars, and even pest control campaigns.

Upcoming Projects The partnership with Colorado University has brought also tangible projects in the shape of a community center, which is currently under construction in southwestern Guatemala.

The facility will host doctor offices to provide consultation from multiple specialists to AgroAmerica workers’ families and the surrounding communities.

SECTOR

Sustainability: WWF and Agroamerica promoting green efforts

The aim of the company’s upcoming efforts, its distinguishing factors and future endeavors were subjects addressed by Bernardo Roehrs, Chief Corporate Officer for AgroAmerica.

Roehrs’ experience after graduating from El Zamorano Agricultural College, in Honduras, has seen important transformations within the Central America area.

“I’ve always been engaged in farming: exports, production, in management positions, logistics, marketing... always in farming-related activities and in global markets,” commented Roehrs.

Business Review América Latina: How is the company’s vision to change with the upcoming development of the organic banana business?

Bernardo Roehrs: Production of organic

Human resource

w w w. a g ro a m e r i c a . c o m

113

C O M PA N Y N A M E

Bernardo Roehrs, receiving social responsibility award for AgroAmérica

“Our certifications set us apart from other palm oil producers” – Bernardo Roehrs, CCO for AgroAmérica

114

June 2015

goods brings technical challenges in order to accomplish the same quality and production levels which consumers demand. We are thriving to take on such challenges, bringing our clients and consumers an outstanding product, which end users must get used to, since its production processes are friendlier to the environment.

BRAL: Which has been the company’s most important action to increase sustainability?

BR: The biggest challenge for us and for the rest of the world is a proper management of water

SECTOR

and water-related resources. Most of our R&D efforts and investments relate to this purpose. We have changed our watering, pumping and other water-related systems; we believe that there’s some real value for our industry.

BRAL: Which are the main distinguishing factors for your palm oil within the global market?

BR: We are a very efficient company, and certainly our compliance with standards, earning certifications from different entities set us

Productivity Award

w w w. a g ro a m e r i c a . c o m

115

AGROAMERICA

Aerial view of the operation AgroamĂŠrica

apart from the rest. We are certified by RSPO (Roundtable for Sustainable Palm Oil), which is not easy to obtain; this certifies our production is traceable.

We were the first palm oil producers worldwide to being awarded certification by the Rain Forest Alliance, which foresees fair-trade and fair labor practices, among other processes.

And the BASC certification (Business Alliance for Secure Commerce) guarantees that our exports are under constant surveillance in every step and process, so our packages do not become subject to transporting any illegal drugs

L AT I N A M E R I C A

or bio-chemical substances used for bioterrorism.

These three certifications set us apart from other palm oil producers; some of them don’t have any single certification.

Company Information NAME

AgroAmérica

BRAL: Do you operate any automation systems in your processes?

BR: Only palm oil extraction is under automation. Farming labor within banana plantations and palm are not subject to automation. It’s practically impossible to deploy any automation into these activities to substitute for handwork.

INDUSTRY

BRAL: Which colleges are currently partnering with the company for scholarships?

BR: We provide scholarship funds for El Zamorano farming college and for Universidad del Istmo. We believe that those we are helping now would like to work for us in the future.

FOUNDED

Food production, farming and agriculture: palm oil and banana production for cosmetics and food products HEADQUARTERS

Guatemala, Departamento de Guatemala, Guatemala 1958 EMPLOYEES

12,000 REVENUE

Undisclosed WEBSITE

www.agroamerica.com

BRAL: How do you perceive the company five years from now?

BR: We want to broaden our human team’s skills beyond productivity, but also by becoming able to engage in community activities. We want to become engaged deeply within the communities where we operate. The challenges faced by our company are wholesome, and we must move at the same speed the world does.

w w w. a g ro a m e r i c a . c o m

117