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TESCO Tackles its Product Waste Problem FAIR TRADE Making a Difference Through Fair Trade CARGILL Faces the Perils of Regional Risk Get a Slice of Expansion Growing your business without over extending your brand October 2014 www.fdfworld.com

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Page 1: Food Drink and Franchise - October 2014

TescoTackles its Product

Waste Problem

Fair TradeMaking a difference Through Fair Trade

cargillFaces the Perils of regional risk

get a slice of expansion

Growing your business without over extending

your brand

October 2014www.fdfworld.com

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e d i t O r ’ s c O m m e n t

3

Sasha OrmanEditor

[email protected]

Making a decision can be a source of anxiety, even for a top executive – is the decision you’ve made truly the best choice for the company? is it the choice that will allow your business the most support and room to grow?

this month we’re looking at decisions that can benefit your business, from making the decision to expand your franchise overseas to deciding what to do when one of your production facilities is in a region undergoing political conflict. these decisions can be complex, and there is often no easy solution except to examine the facts and do what’s best for your business. But when you do that, it can make all the difference.

so read on, enjoy, and consider your own confidence to do what’s best for the business.

Taking Charge

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share happiness

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CONTENTS

ProductionHow Can Your Business Guard Against Risk During Conflict?

FranchisingRegional to Global: Making the Leap to International Expansion

RetailTesco Tackles Food Waste: One Year Later

Supply ChainFair Trade practice in the Supply Chain

5

Wine producing countries in 2014

TOP 108

30

14

22 38

Features

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CONTENTS

7

62

52

Kekén

Harry Ramsden’s74

Corporación San Diego

AFRICA

52 Harry Ramsden’s

LATIN AMERICA

62 Kekén

74 Corporación San Diego

CANADA

84 Houston Canada Inc.

AUSTRALIA

92 The Pancake Parlour

100 Association: German-Australian Chamber of Industry and Commerce

BRASIL

106 Friato

118 Frigorífico Silva

130 Association: ABIEC

Company Profiles

Association: German-Australian Chamber of Industry & Commerce

100

Houston Canada Inc.

84ABIEC: Brazilian Beef Exporters Association

106

The Pancake Parlour92

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W r i t t e n b y : Sa S h a O r m a n

How Can Your Business Guard Against Risk During Conflict?What can we learn from Cargill’s disasters this summer about risk management?

ProdUcTion

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999

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1 0 O c t o b e r 2 0 1 4

WiTH More THan $136.7 billion

in sales and revenue over the 2013

fiscal year and facilities in 67 countries

around the world, it’s undisputed that

cargill is one of the biggest agricultural

and food processing companies in

the world. But just because you’re big

does not mean that you’re completely

immune to disaster. there are some

things that no one can fully plan for,

but that can seriously affect your

business.

One of those things is having a

production facility in a region that

has ended up being at the center

of a political conflict marked by

increasing violence. When you’ve

been in business for over a century

and are operating in 67 countries, to

have at least one of those countries

fall into conflict at one time or

another is practically assured.

cargill experienced that firsthand

this summer, as tensions have

escalated in eastern Ukraine. in mid-

July, its sunflower-processing plant

in donetsk was seized and occupied

by a group of “armed individuals.”

then in August a grain silo at the plant

caught fire, caused by a missile strike.

this isn’t even the first disaster

that cargill has weathered this

One of Cargills many facitities

‘Cargill is one of the biggest agricultural and food processing companies in the world. But just because you’re big does not mean that you’re completely immune to disaster. ’

ProdUcTion

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1 1

facility, and much of that can likely

be attributed to the fact that it was

not actively occupied with cargill

employees when it was struck.

According to reports, cargill shuttered

its donetsk plant on July 4 as tensions

of the conflict began to rise and

become a concern, leaving it to idle

until conditions improve.

it seems counterintuitive to leave

a facility idle, but this can also be

seen as a critically important move,

summer – the company is also

feeling a heavy impact of increasing

drought conditions throughout

north America. But cargill’s actions

in the Ukraine are a good reminder

of how to react if one of your own

facilities is caught up in the crossfire

of a rapidly escalating conflict.

Protect Your Employees Firstthere were no injuries during the

missile strike at cargill’s Ukraine

One of Cargills many facitities

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1 2 O c t o b e r 2 0 1 4

both strategically and as a company

with integrity and respect for your

employees and their families. it’s

true that, to an extent, the show must

go on and business must continue.

But people always come first, and

sometimes that means ceasing

operations in order to keep them as

far out of harm’s way as possible. its

grain may have been damaged in the

‘People always come first, and sometimes that means ceasing operations in order to keep them as far out of harm’s way as possible’

Cargill have 143,000 employees in 67 countries

ProdUcTion

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B U s i n e s s G U A r d i n G A G A i n s t r i s k d U r i n G c O n f l i c t ?

1 3

missile strike, but the damage could

have been much worse if workers

had still been involved when the strike

happened or the facility was seized.

Diversify Your Manufacturing Facilitiesthanks to diversification, cargill

was able to temporarily close the

doors to its donetsk facility without

having to worry about its business

going under. in addition to donetsk,

cargill also processes sunflower

seed oil at facilities in the United

states and canada – therefore, while

the company might have less of the

product to work with throughout the

year, it will not have lost its entire

inventory in the seizure. if your

company is in a good place with

respect to diversification, you will be

able to shut down operations at one

facility without taking too much of a

financial hit

Understand Riskit shouldn’t be a surprise that cargill

understands how to manage and

juggle any dangers or misfortunes that

might befall a section of its company –

cargill is a sprawling company with a

lot of sectors, and one of those sectors

is risk management that spends 100

percent of its time finding the best

ways to hedge bets and mitigate risks

for both cargill and the clients with

which it partners.

not every company has the

means, the space, the time or the

energy to create its own in-house

risk management sector. But if not,

it could be well worth the effort to

outsource the services of a company

that specializes in risk management

for an assessment and the creation of

some contingency plans. it could be a

great way to keep your operations safe

no matter how safe it gets out there.

‘Cargill also processes sunflower seed oil at facilities in the United States and Canada’

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HoW do yoU know that the timing

is right to expand internationally?

that’s a difficult question – it’s a deeply

personal question, and the answer can

vary greatly from franchise to franchise.

You may feel like you need to expand

to the point of saturation domestically

before you can think about international

expansion, but that’s not necessarily

the case. Growing internationally can

be an entirely different strategy with

its own separate set of concerns.

Golden chick is the perfect example of a franchise that made the leap straight from regional to international. mark Parmerlee, ceO and owner of the texas-based fried chicken chain since 1989, is still passionate about working with his franchisees in creative ways to grow the business. “it’s a lot of fun,” he explains. “there’s a

RegionAl to globAl: Making the Leap to International ExpansionW r i t t e n b y : SaS h a O r m a n

FrancHis ing

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lot of good people i get a chance to work with, and the franchisees are really my second family.”

this year Golden chicken launched a pilot location in a new region with a lot of proven potential for the right chains – china. so we sat down with Parmerlee to discuss franchising partners, supply chain logistics, and the considerations that come into play

when a regional chain goes global.

FDF World: How did you know that the time was right for expansion into a new country? What drew you to China?mark Parmerlee: it was really twofold

– first, we’ve been fortunate enough

to have a real solid growing base in

the United states and felt like we were

ready to start looking abroad. We took

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a jump into south carolina and Georgia

and that’s gone real well, so we felt

like the jump into four countries was

something we were ready for. Plus we

had some willing and able franchise

partners that had approached us.

FDF: Is that what drew you to China?mP: i have a partner [minority partner

Allen tharp] who is developing in the

san Antonio, tX market, but also has a

consultant who has a great track record

of developing chicken restaurants for

a large international chain. At the time

he wanted to expand in san Antonio,

he also opened an office in shanghai

and just a few months ago opened

a pilot restaurant in shanghai. it was

really his request that drew us to china.

FDF: Now that you’re moving into this new region, are you looking for additional partners? If so, what qualities do you look for? mP: With our first entry into it, we want

to be very conservative and feel very

comfortable taking that first step.

in Jordan for example, we have a

franchisee that is originally from Jordan,

but he’s a proven operator in a unit in

FrancHis ing

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r e G i O n A l t O G l O B A l e X P A n s i O n

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Oklahoma city. so we felt comfortable

[expanding in Jordan] because he

knew what we were expecting in

the way of product and service,

and he had already demonstrated

to us that he was capable.

so that makes it very easy. the way we go about it is we require that someone do a pilot store over there first – it really forces them to source product and prove that they’ve got a foothold in the country, and then they have a place to train someone.

so far we’ve sold Jordan and Palestine, and it’s the same with Allen – he opened an office there, now he’s opened the pilot store and we’ll go from there. He has a full time consultant based in singapore that commutes back and forth, and we have a general manager for the brand that’s based in shanghai.

With this policy in place, it becomes kind of a friends-and-family almost scenario of initial expansion. so now with that under our belt, we are a little more open to looking at third parties. in fact, we’ve got egypt, Pakistan and saudi Arabia – we’re talking with three separate groups that all appear very capable. so that’s something

again where they’ll have to develop a pilot store, send people over here for training, and then we will help with support on our end.

FDF: What kind of support? Is that more difficult for new franchise locations out of the country?mP: Absolutely. We provide a high

level of support for our industry in

terms of training, pre-opening teams,

purchasing and advertising support,

and ongoing support that we do,

and quite a bit of communication

with our U.s. franchisees.

the distance and the language begin to come into play with international locations, and things are obviously outside of our normal distribution channels. When we’re developing a unit in the Us, we just call our distributor to say “get ready, because in six weeks we’re going to be opening in this town.” it’s a little bit different when it’s overseas.

so there we really rely on a combination of things – our franchise partner sourcing and seeing what products are available at the volumes that anticipate going in, and then our Us vendors to see

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if they have overseas affiliates, or how reasonable it becomes to ship product over there until we can get enough units developed to economically produce goods over there. With paper products or some proprietary mixes, for example, it may not be cost effective to produce those overseas for just one unit. so we may ship a container over there and then they’ll store product until there’s multiple stores.

FDF: In light of that point, how similar is your menu in China to your domestic menu? Are you introducing any changes to appeal to regional tastes?mP: We did. We insist on the core

products being the same – in our case

a chicken tender, bone-in fried chicken,

and a nice roast chicken product. But

from there we’ve allowed flexibility for

some of the side items. We’ve allowed

them to add more rice dishes and pasta

dishes, and then a few more soups

and salads and a couple of other side

items. Another example is that we sell

catfish in the Us, while catfish as we

know it is not readily available in china,

so they offer a more recognizable

whitefish over there instead.

But of course french fries, mashed potatoes, our yeast rolls – those kinds of things are international. We serve Pepsi there just like we serve Pepsi here, and the core products and the uniforms and those kinds of things are really standard to what we have here. so it’s mostly allowing some additional items and substituting on some of the side items that may not be that familiar.

kfc, who has a major presence over there, has really set the stage. in other markets they haven’t had as big of a diversification of menu, but in china it seems like they’ve done more of that, so we felt a need from a competitive position to follow suit.

FDF: What are some challenge you face opening a restaurant overseas that you haven’t faced domestically and particularly in China?mP: there are some cultural

differences, there are ways of doing

business that are different. Another

challenge is real estate prices.

shanghai is a very urban market with

lots of high rises, so we’re not going into

the typical site in the Us, which would

offer a single building with a drive-thru.

1 8 O c t o b e r 2 0 1 4

FrancHis ing

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“XXXX”– XXXXXX

Caption to the image

1 9

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We’re on the ground floor of a high-rise

building that’s got other retail tenants,

some office space, and apartments.

it’s very densely populated, and

the rental rates are extremely high

compared to our standards here.

now the labor costs are lower, which offsets that, and given the density the sales are typically higher in foreign countries to help make all of that work. But that’s a challenge, the real estate availability and costs, and just the different business styles, laws, customs, and even banking – getting money in and out in china, there’s an extra layer

or two of government approvals.

FDF: What are your plans for the future as far as building new locations? mP: the shanghai location is again a

pilot store – the idea is that it becomes

easier to sell sub-franchises when you

can make contact with someone and

say “come see this location.” from

there, we hope that there will be some

franchising activity, and my partner’s

consultants have contacts there.

in fact, we’ve got a multi-unit deal in another part of the country that is about to wrap up. And with

Caption to the image

FrancHis ing

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pipeline, and we’re looking to bridge

the gap by looking into mississippi and

Alabama taking us from what was once

a texas-based chain to a southeast

regional chain. Again, success

begets success in franchising.

One other piece that ties in with the international growth and bridges the two: we just closed on our first eB-5 transaction. there’s a great deal of interest in china, so it’s a marketing advantage for us to have an office in shanghai and a restaurant in shanghai – it’s a little bit of added comfort, and makes it so it’s not so unknown.

FDF: That way potential investors can kind of get a firsthand look at it? mP: Yes – and again, the menu’s a little

different, and it’s not a freestanding

unit with drive-thru like they would find

here. But at least it’s some familiarity

and it’s tangible, so the concept

becomes tangible to them. so that’s

a nice tie-in. We anticipate doing a

significant number of eB-5 deals,

which would be corporately operated.

so we have several of those in the

pipeline in addition to an escalating

demand and more interest.

franchising, it’s really success begets success: as more units are on the ground, it will attract people. there’s a significant demand, not only in china but a lot of other countries, for more American brands. Our approach is to give a little more of a share to the local franchisee than maybe the average chain. By doing so, it gives more of an upside, but also puts us in a position where we may not have to offer as much direct support as some other chains do.

FDF: What are your plans for domestic growth? Are you focusing more on domestic or international growth overall? mP: At this point it’s really still more

of a domestic focus for us, but the

international is on the radar and we’re

actively pursuing it. But we’re in the

midst of a nice little boom for us – 132

units right now, with about 30 in the

pipeline. What we’ve forecast is to do

about 25 stores a year going forward.

With that, we feel the momentum

and things are escalating. We’re

still predominately in texas, but

Oklahoma’s growing, south carolina

has had significant growth in the

last couple of years with more in the

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reTail

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W r i t t e n b y : SaS h a O r m a n

tesCo tACkles FooD WAste:One Year Later

2 3

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in ocToBer oF 2013, in a

remarkable effort to increase

consumer trust and its own supply

chain transparency, Uk-based retail

giant tesco opened up its books

and revealed its food waste figures

to the public for the first time in the

brand’s history. the numbers weren’t

necessarily anything to be proud

of: tesco found that its stores and

distribution centers had generated

56,580 tons of food waste within

its 2013/2014 fiscal year alone. But

by disclosing those numbers, the

brand invited the public to hold it

accountable for improving those

numbers in the future.

this month it will be a year since

tesco launched this initiative, and it

is still at the forefront of the chain’s

corporate social responsibility docket

– “to lead in reducing food waste

globally” is at the top of tesco’s three

Big Ambitions for making a positive

social impact. One year later, what

sort of progress has tesco made in

tackling the food waste problem?

Improving the Supply Chain to Improve the Worldtesco’s focus on food waste did not

grow up out of nowhere, but out of the

observance of a mounting problem.

“As research by the Un has shown,

enormous amounts of food are being

lost and wasted globally – at least 1.3

billion tonnes each year,” says tesco

commercial director matt simister

on the brand’s web page for its food

waste prevention goals. “Aside from

the unnecessary pressure this puts on

land and natural resources, together

with the associated emission of

greenhouse gases, this waste costs

“Enormous amounts of food are being lost and wasted globally – at least 1.3 billion tonnes each year”

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“Enormous amounts of food are being lost and wasted globally – at least 1.3 billion tonnes each year”

our customers vast sums of money.

for example, according to the Uk’s

Waste resource Action Programme

(WrAP), the average British family with

children throws away £700 worth of

food per year.”

this research has played a key role

in tesco committing to the issue of

food waste, and for tesco the first

step toward solving it is by making a

commitment to greater transparency.

this was clear from the time that the

chain threw open its books, but a year

later it’s still touting transparency as

the forefront of its strategy.

Stopping Problems Before They Happen with Better Packagingthe future is here, and tesco is taking

advantage of it. several of tesco’s

initiatives to combat food waste are

utilizing different forms of innovation,

from modern technology to simply

rethinking the basics of packaging.

The average British family with children throws away

£700 worth of food per year

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Tesco’s new plastic packaging as an effort to conserve eggs

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One major cause of food waste

is food becoming damaged during

the distribution process, and part of

tesco’s food waste mission involves

looking at new practices for handling

those products in able to get more

product from the farm to the retail

floor. in march, in acknowledgement

of its status as the largest retailer of

fresh eggs in the Uk, tesco introduced

a new egg carton packaging system

at its scotland and northern ireland

locations with plans to roll the

packaging out throughout the Uk

by the end of 2014. As an effort to

conserve eggs, the cartons separate

each egg within a dozen into its

own recycled plastic pod – the idea

being that, if one egg breaks during

distribution, that egg can be removed

without the entire carton being

contaminated. through this method,

tesco is hoping to save up to a million

eggs each year from becoming a

casualty of food waste.

Connecting People with Food Waste Solutions through Mobile TechnologyBut even food that makes it to the

grocery store intact runs the risk of

becoming food waste when perishable

products run up against the sell-by

date without being purchased. When

How Tesco calculate their food waste

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tesco first launched its food waste

initiative last year, it also launched a

partnership with foodcloud, an app

built by students from trinity college

dublin, at its stores in ireland to find a

better use for surplus stock in danger

of becoming waste. the app connects

retail stores with local charities and

food banks, allowing markets to alert

those charities whenever they have

a food surplus that they would like to

donate, and even alerting the charities

to the types of food available from

fresh fruits and vegetables to hot ready

‘According to Tesco’s report, FoodCloud has made it possible for the chain to donate the equivalent of 18,000 meals to charities throughout Dublin’

Diagram courtesy of www.foodcloud.ie

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widespread change happens. this

might be the case with addressing

food waste. in August of 2014,

rival Uk retail chain morrissons

announced that it would be investing

£19 million into improving its own

supply chain, promoting fresh fruits

and vegetables while reducing food

waste to offer a better value against

discount chains. little by little, as

more retailers start rethinking their

strategies, making food waste

reduction a priority could become

the norm instead of the exception.

meals. According to tesco’s report,

foodcloud has made it possible for

the chain to donate the equivalent of

18,000 meals to charities throughout

dublin, successfully harnessing

technology to turn potential food waste

into life-saving meals for people in

need.

Inspiring Peers and Competitors changing the way an industry does

business can be tricky, and it often

takes the support of a major brand

taking that leap forward before real

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sUPPly cHain

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W r i t t e n b y : SaS h a O r m a n

FAiR tRADe practice in the supply ChAin

3 1

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yoU WanT yoUr supply chain to

be the best that it can be, from the raw

materials in the field to the finished

product out of the factory. But a strong

supply chain is about more than just

the materials you depend on – it’s also

about the people who keep that supply

chain running smoothly along, from

the field workers who plant and pick

the raw materials to the transporters

and factory workers who transform it

into the finished product you envision.

One of the best things you can

do to take your business to the next

level, in terms of productivity and

consumer support, is to make sure

that everyone along your supply chain

is being treated well and receiving fair

Workers operate a Japanese-made tea harvesting machine at the Kaoshui tea farm Credit: Theodore Kaye

sUPPly cHain

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3 3

compensation for their work. With third

party fair trade certification, you can

prove that your commitment to fair

treatment is more than just lip service.

What Does Fair Trade Certification Cover?the prime objective of fair trade

certification is ensuring that workers

are being treated and compensated

fairly for their services throughout

your supply chain around the world.

As such, the criteria for fair trade

certification covers such issues as:

• EqualWorkingConditions–Workers

and management should be paid at

least minimum wage or the average

‘ With third party Fair Trade certification, you can prove that your commitment to fair treatment is more than just lip service.’

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for their region, and should have

access to clear cut health and safety

measures.

• TheAbilitytoNegotiate–Workers

should be allowed to negotiate for

more favorable working conditions,

and should have the right to organize

and form unions without fear of

repercussion.

• PayingaFairPrice–Retailers

hoping to trade fair trade certified

products must ensure that they

are paying for those products at a

rate that will allow for a sustainable

operation that pays laborers fairly for

their production work.

Are There Environmental Benefits to Fair Trade?many consumers these days want

to know that the companies they

support are doing their best to

protect the environment. While

the first and foremost goal of fair

trade certification is supporting

the people who labor along your

supply chain, environmental

stewardship has a clear and

important role in reaching that goal.

After all, people work their best

Fair Trade-certified organic cucumbers

Mariela Peñuelas, Head of Human Capital and Social Responsibility, holds Fair Trade-certified organic cucumbers

sUPPly cHain

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Miguel Sebastian, 22, Mixtec indigenous man and migrant worker from Ometepec, Guerrero, harvests organic cucumbers. Miguel serves as recruiter and community liaison back in his hometown of Ometepec. Due to need, he has been working since he was 13 and has not finished elementary school. Wholesum Harvest: Campo Nuevo, Culiacán, Sinaloa, Mexico. November 29, 2012.Credit for all images on spread: James Rodriguez for Fair Trade USA

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Hong Xingcan, 61, from Wucun, spreads out freshly picked Fair Trade-certified organic tea at the Wucun Organic Tea Processing Plant in Dazhangshan...Wucun tea garden, Dazhangshan, Jiangxi, China. April 25, 2013. Credit: Theodore Kaye

sUPPly cHain

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when they are living and working

in a clean and stable environment.

Because of this, fair trade certification

organizations like fair trade UsA also

maintain environmental standards for

the businesses that they approve for

certification. these standards include

making sure that producers practice

smart irrigation tactics and source

water sustainably without depleting

regional supplies.

But while fair trade is beneficial for

environmental stewardship, it also

allows for producers to progress

at a pace that’s right for them. for

example: while fair trade UsA

supports and encourages organic

farming, offering training and

incentives for those who pick up

the practice, going organic is not a

requirement for fair trade certification.

How Can I Have My Products Fair Trade Certified?According to fair trade UsA, there are

two routes to fair trade certification:

1.) Source From a Fair Trade Certified

Farm Group

if your business is just starting out,

and you are still in the process of

establishing your supply chain,

the simplest route to certification

is by sourcing your materials from

farmers and suppliers who are

already certified themselves.

2.) Register Your Existing Supply Chain

You have been in business for

years, with an established supply

chain that you know you can rely

on for strong service and best

practices. if this is the case, you

can put your fair trade certification

organization of choice in touch

with your suppliers for a thorough

assessment of your operations.

Page 38: Food Drink and Franchise - October 2014

TOP10 Wine producing countries in 2014Written by: Sasha Orman

ToP 10

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Rhine Valley, Germany. UNESCO site.

10 gerMany

VolUMe: 322 million liters

While Germany’s wine production is relatively low compared to major players like france and italy, it is nonetheless indisputably a rising force in the industry. that trend is expected to continue in the near future.

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4 1

The vineyards at Huadong Chateau in Qingdao China

09 cHina

VolUMe: 712 million liters

china is one of the largest wine consuming markets in the world, importing millions of metric tons of wine from france, italy, spain and more every year. the country also maintains a robust fruit wine production industry as well. in preliminary forecasts, china expects major growth in this industry over the next few years.

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08 cHile

VolUMe: 989 million liters

chile’s wine production is down significantly this year – according to chile’s ministry of Agriculture, freezing weather during the growing season has caused wine production to plummet 22.8 percent compared to last year despite a larger planting area. On the plus side, the country reports that strong crops over the last two years mean that this loss shouldn’t have too negative an effect on chile’s wine sales.

Vineyard in Aconcagua Valley Chile

ToP 10

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t O P 1 0 W i n e P r O d U c i n G c O U n t r i e s i n 2 0 1 4

07 soUTH aFrica

VolUMe: 1.38 million metric tons

While south Africa is experiencing a decrease, it’s fortunately not to the dramatic degree as some other countries this year – experts forecast a drop to 1.38 million metric tons, compared to 1.39 million last year.

Lanzerac wine estate, Stellenbosch, South Africa

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4 4 O c t o b e r 2 0 1 4

Hunter Valley vineyards, NSW, Australia

06 aUsTralia

VolUMe: 1.6 million metric tons

Australia is faring about as well as anyone else this year. While no official numbers or forecasts have been released yet, the country’s wine industry warned early on that it is expecting a “challenging 2014 crop” due to extreme weather conditions during the most recent growing season, and that its 2014 production will likely fall below last year’s 1.6 million ton volume.

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Vineyards in Cafayate, Argentina

t O P 1 0 W i n e P r O d U c i n G c O U n t r i e s i n 2 0 1 4

05 argenTina

VolUMe: 2.1 million metric tons

Argentina is consistently one of the top wine producers in the world, but even top producers have their off years. Bad weather this year caused a significantly poor grape crop, leading to an expected 27 percent decrease in wine production – experts predict that the country’s wine industry will produce roughly 2.1 million metric tons in the 2014 calendar year. With that said, experts also predict that 2015 will see the industry rebound as long as this year’s weather proves to be a fluke.

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ToP 10

04 UniTed sTaTes

VolUMe: n/A

the United states remains strong, mostly thanks to its historically high volume wine production throughout california. But while grapes might be more resistant to droughts than a lot of agricultural production, this does not make them immune. numbers have not yet been released, but early reports so far suggest that the critical drought afflicting california could finally be cutting into its viticulture industry, to the point where napa Valley is considering putting a moratorium on new wineries to preserve those that are already in business.

Wine Vineyard in the Carneros Valley, California

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4 7

03 sPain

VolUMe: 3.9 million metric tons

the spanish wine industry had a fantastic 2013, with a production record of 5.4 million metric tons propelling the country to the top spot last year. this year has not been nearly as kind – according to spain’s ministry of Agriculture, the country is forecasting a 26.3 percent drop down to 3.9 million this calendar year.

The Geria vineyards, Lanzarote, Spain

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4 8 O c t o b e r 2 0 1 4

Beauty of vineyards in autumnal colors. Chianti, Tuscany, Italy

02 iTaly

VolUMe: 4.1 million metric tons

Unusual weather strikes again – a wet spring and summer has led to what wine industry experts are calling italy’s worst wine grape harvest since 1950. the country’s southern region was hit the worst, with sicily and Puglia experiencing a 30 percent production drop. italy is expected to produce 4.1 million metric tons of wine in the 2014 calendar year, a 15 percent decrease compared to last year.

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01 France

VolUMe: 4.5 million metric tons

While the french wine industry has always been well respected, it also has some fierce competition – but this year, france is coming out on top. it’s clear that it has been a difficult year across the board for the global wine industry, with low harvests compounded by a frugality drive in china that has caused a 3.5 decrease in wine export volume this year compared to last year.

despite this poor year, other coun-tries have had it much worse in terms of harvests and total production. Wine production in france is actually expected to rise to 4.5 million metric tons this year, an increase over last year’s 4.2 million. that pushes france ahead of chief rival italy and to the head of the class, placing it in the best posi-tion among an industry hoping for a better time in 2015.

ToP 10

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Vineyard and palace in region

Beaujolais, France

Page 52: Food Drink and Franchise - October 2014

Harry Ramsden’sBrings Loyal Customers Back with

Three-Pronged Expansion StrategyThe iconic fish and chip brand has spent the past three

years renovating its offering and development plans and is now ready to reach the highest levels in its 87-year history

Written by: Matthew staff Produced by: kiron chavda

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5 3

Harry Ramsden’sBrings Loyal Customers Back with

Three-Pronged Expansion StrategyThe iconic fish and chip brand has spent the past three

years renovating its offering and development plans and is now ready to reach the highest levels in its 87-year history

Written by: Matthew staff Produced by: kiron chavda

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HaRRy Ramsden’s

Harry ramsden’s has undergone somewhat of an overhaul over the past three years and is now surpassing the already high

expectations of chief executive Officer (ceO), Joe teixeira as the company drives forward its company stores, franchising and licensing arms.

Having been in the hospitality industry for more than 25 years, teixeira was well aware of the iconic status of Harry ramsden’s in the Uk but has been taken aback by the level of affinity that its loyal customers still has with the brand, paving the way for such a rapid regeneration.

“When i was given the challenge of turning Harry ramsden’s around i saw an iconic

“I’m still overwhelmed by the affinity that the brand has with its customers; millions of pounds into marketing can’t buy you that”– Joe Teixeira, CEO Harry Ramsdens

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f O O d

www.harry ramsdens .co .uk 5 5

HaRRy Ramsden’s

Joe Teixeira, CEO

Harry Ramsden’s

brand that had lost its way and knew it was a great opportunity,” he said. “three years on and i’m still overwhelmed by the affinity that the brand has with its customers; millions of pounds into marketing can’t buy you that.”

leveraging the value of a strong customer base is one thing, but teixeira has been sure to repay the faith through the company’s expansion plans, encouraging not only an increase in visitor numbers, but also a change in attitude to bring shareholders back on side to encourage investment into its franchising efforts.

Bournemouth restraurant interior

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HaRRy Ramsden’s

Franchisingthe main driver behind a franchising strategy is the ability to react to market needs quickly and effectively, with teixeira identifying a gap in the market for a branded, ethical fish and chip organisation.

“We always knew that franchising was the best strategy to take us forward,” the ceO explained. “Opening a lot of new company stores requires a lot of fast capital expenditure, but if you have capable and experienced franchisees, you then have someone who you know will absolutely care for your brand because it’s their hard cash going into it.

“it is the fastest growth to market without diluting the proposition, we’ve hit at the right time of the economic cycle and there is a lot of interest in our business.”

the goal is to have 250 sites in place by 2019, and the company is already well on track, having development agreements across scotland, Yorkshire, West sussex and the north east of england for 150 sites.

the only challenge in that respect now comes from selecting the right people to partner with as the pace accelerates; an example of which can be seen in the company’s recently secured agreement with Welcome Break msA to develop up to 26 outlets.

“i’m trying to avoid handing out single franchisees because it’s very difficult to manage 500 different partners.” teixeira

Interior of Harry

Ramsden’s restaurant

“Once we believed we had the right proposition in place, it was then a case of convincing the shareholders to invest in the business to allow it to grow properly”– Joe Teixeira

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f O O d

www.harry ramsdens .co .uk 5 7

HaRRy Ramsden’s

The serving counter at a Harry Ramsden’s restaurant

Exterior of restaurant

said. “We now look towards franchisees that can open between five and 20 sites within a specific allocated space.”

merging the industry knowhow of Harry ramsden’s with the local expertise of selected partners is also supported by a unique, award winning training package offered to encourage standardisation and consistency across all its stores.

Page 58: Food Drink and Franchise - October 2014

CDS Wilman are a UK leader in the food service design, supply & installation business.

www.cds-wilman.com | [email protected] | Tel: +44 (0)161 848 3900

Food service industry design and build specialists.

Proud to supply Harry Ramsden’s with fresh fish & seafoodWe are your local fresh fish & seafood supplier, bringing you the best of the catch from the nearest quayside and the other side of the world. All our fish and seafood is responsibly sourced and expertly prepared by a team you can rely on.

www.mjseafood.com

M&J_Harry_Ramsden_Ad_P2.indd 1 10/09/2014 17:11

www.brandingboutique.com

Brand | Marketing | CoMMuniCations

World class marketing for World famous fish & chipsProud to be Harry Ramsden’s Brand Team.Call us for a chat on 0141 561 8262 or email [email protected]

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HaRRy Ramsden’s f O O d

www.harry ramsdens .co .uk 5 9

Harry Ramsdens aims

to have 250 sites in

place by 2019

organisation growthcomplementing its franchising expansion is also the ongoing development of its traditional fish and chip shops, of which there are now more than 10,000, with teixeira aiming for 10 percent of a saturated and competitive market place.

One surprising addition though, has been the inception of its own licensed products hitting Uk shelves, as teixeira explained: “We entered into a partnership with Birdseye on developing a frozen fish retail product and it was so well received by our customers it took us by surprise.

“We’re now going to extend that agreement while also ramping up other areas, including – and i could never have dreamt that Harry ramsden’s could command such a product - a chicken product in the retail environment.

“it punches above its weight and when tesco conducted their research it was on par with a brand leader. it is our target to have £100 million sales within five years and we’re already 30 percent towards that.”

Turbocharged investmentrecent successes have come ahead of schedule in a lot of respects, but teixeira has emphasised from the start the need to remain flexible in what is an ever-changing industry.

“the first stage we went through over the first 18 months was fixing what we had and resolving property issues in terms of the right sites and right investments,” teixeira said. “Once we

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6 0 O c t o b e r 2 0 1 4

HaRRy Ramsden’s

believed we had the right proposition in place, it was then a case of convincing the shareholders to invest in the business to allow it to grow properly and we went about refurbishing the jewels in the crown at our key seaside resorts.”

the overriding ethos throughout all stages of development has been in establishing value for money within the business, meaning the best proposition for the price of the product, rather than simply the cheapest offering.

this, alongside a more convenient strategy in terms of store location has conspired to achieve excellent returns on investment within the first year of expenditure at some sites, and within two years for most others; all of which

“We have a plan and five year vision but it needs to be updated and flexible enough to react to the market and the customer. What they want is what we do” – Joe Teixeira

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f O O d

www.harry ramsdens .co .uk 6 1

HaRRy Ramsden’s

has encouraged the shareholders to accelerate growth even quicker moving forward.

Market leaderthe immediate positivity to come from Harry ramsden’s development over the past three years is testament to its customers who continue to embrace the new proposition and provide helpful indicators on upcoming trends and taste preferences.

“We have a plan and five year vision but it needs to be updated and flexible enough to react to the market and the customer. What they want is what we do,” teixeira said. “We want to make sure that what we do is consistently above the quality of our competitors and that the customers walk away understanding why they’ve paid for that experience in terms of value.”

in turn, teixeira knows that Harry ramsden’s’ notoriety in the Uk will make any internal success a success for the industry in general, as the company strives to raise the general level of standards.

He concluded: “if Harry ramsden’s is the market leader, it can only be good for the industry in my opinion. We have gone on a journey that the owners began in 1928. it lost its way in the past couple of decades and is coming back to dominate and our ambition is to be recognised around the world, commercially successful, employing thousands of people and having a positive impact on the economy.”

Company Information

I n d u s t Ry

Food and Drink

H e a d q u a Rt e R s

London

f o u n d e d

1928

e m p l o y e e s

471 Full and Part Time

employees

R e v e n u e

£14 million

p R o d u c t s /

s e R v I c e s

Fish and Chips

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from breeding to retailing and export, kekén goes hand in hand with mexican consumers and looks towards demanding foreign markets 

Written by: mateo rafael tablado interview by: rebecca castrejonProduced by: taybele Piven interviewee: claudio freixes, ceOJorge ricaud, commercial manager

mexican pork withglobal productionstandards:

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6 3

from breeding to retailing and export, kekén goes hand in hand with mexican consumers and looks towards demanding foreign markets 

Written by: mateo rafael tablado interview by: rebecca castrejonProduced by: taybele Piven interviewee: claudio freixes, ceOJorge ricaud, commercial manager

mexican pork withglobal productionstandards:

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6 4 O c t o b e r 2 0 1 4

company name

satisfying The Most demanding Palates since 1994

Kekén (an affiliated of kuo Group) is a company dedicated to breeding, processing, commercializing and selling

meat. its industrial activities are sustained by pork meat and complemented with chicken and beef production. their breeding and processing operations are carried out in the mexican states of Yucatan, Bajio (irapuato) and Aguascalientes. kekén’s main business units are exports and a

Farms

Food processing plant

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s e c t O r

w w w. k e k e n . c o m . m x 6 5

company name

distribution chain through maxicarne stores.two of the company’s managers are Jorge

ricaud, a zootechnician-agronomist, who graduated from the University itesm in the state of Queretaro. ricaud serves as the current commercial director of kekén and his experience includes a 10-year career for campi, another member company of kuo Group located in the mexican state of Yucatan. the ceO of kekén is dr. claudio freixes, a veterinarian with prior experience in chile (his homeland) and europe.

“We seek to develop fresh and refrigerated

products, with an additional value for

consumers: marinated, portioned, seasoned,

but basically in the vein of fresh produce”

– Jorge Ricaud, Commercial Director of Kekén

Page 66: Food Drink and Franchise - October 2014

www.pic.com

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KeKen l At i n A m e r i c A

w w w. k e k e n . c o m . m x 6 7

freixes has been in this managerial position for the past six years, with previous experience in operations.

in pork production, kekén has integrated a network of commercial partners from entrepreneurs in rural communities to small producers as a way to reach the most demanding markets. slogans such as “from the farm to the table” are falling short due to their expansion in Asia and north America, a success that implies high management standards and constant updates in technology and health procedures. their distribution channel includes all 250 “maxicarne” convenience stores; these branches supply customers in the domestic market and through food establishments.

the company is on track to meet their 2015

www.pic.com

Key People

claudio FreixesCEO of Kekén

Employees: 2,400

Established: For over 40 years, the success of our company is attributed to the significant investment in genetics, technology and health.

Industry: Swine Genetics.

Services: International leader in providing superior swine genetics and support to increase the genetic potential to the maximum in the meat chain.

CEO: • Karim Bitar - Chief Executive • Bill Christianson - COO PIC Latam • Martin Perez - Director PIC Latinoamerica.

Visit our webpage: www.genusplc.com

Perfil de Proveedor

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l At i n A m e r i c A

Warehouse processing plant

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KeKen

expectations, including a more aggressive presence and distribution in the southeast region of mexico to further expand operations into the country’s capital with new stores and production plants.

“Our goal is to duplicate kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of kekén’s human resource, we will be able to achieve anything,” says claudio freixes, ceO of the company.

Cutting plant

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KeKen l At i n A m e r i c A

strategic Planning Based on differentiators kekén’s star product is refrigerated pork meat and it will remain the company’s specialty.

the bastion of maxicarne stores is the starting point for local routes, covering deliveries for “intermediate” customers such as restaurants and other food outlets.

the advantage offered by each maxicarne branch is to deliver a variety of meat that consumers could rarely find in other establishments where display space is limited.

“We seek to develop fresh and refrigerated products, with an additional value for consumers: marinated, portioned, seasoned, but basically in the vein of fresh produce,” says Jorge ricaud, commercial director of kekén.

Technology To Meet objectiveskekén depends not only on their retail distribution, but also on specialized logistics that demand refrigeration and a process manipulation in sanitary conditions, as well as a strict feeding control to provide secure and healthy results.

“We also need logistics in transportation, distribution and refrigeration centers to maintain our products in optimal conditions and for them to stay fresh and healthy for consumers,” says freixes.

communities & PartnersOne of kekén’s greatest successes has been to establish partnerships with farmers and

Metal detector

Processing

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KeKén

7 2 O c t o b e r 2 0 1 4

Store Maxicarne

small entrepreneurs in the regions where their processing plants are located.

the company has helped small farmers get loans to build their farms from scratch and small businesses have joined the project by aligning production standards. After 20 years of partnering with the community, not only were these farms paid for in full, they also successfully expanded.

“this started before the concept of social responsibility was created and it has been a success,” says freixes.

international growththe company has begun its foray into the Japanese market, with the consideration of their premium policies and prices on quality produce. kekén wants to maximize their capacity in this country. Within the Asian market, they are also involved in the korean pork industry.

in regard to their closest clients, their exports operations have expanded into the United states and canada, thus representing a great potential for development.

key suppliersthere are specialized areas such as genetics and salubrity in which providers must perform at their best to continue working within the global standards of kekén.

Another key aspect is the environmental temperature control in the process of reproduction of swine in hot environments. this is

Maxicarne interior

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KeKén l At i n A m e r i c A

Company Information c o m pa n y

Keken

I n d u s t Ry

Food (pork breeding,

slaughtering, packaging,

distribution)

H e a d q u a Rt e R s

Merida, Yucatan, Mexico

f o u n d e d

1994

e m p l o y e e s

3,500

R e v e n u e

USD $382 million

e m a I l

[email protected]

w e b s I t e

www.keken.com.mx

very important for the comfort of animals and for them to achieve their maximum productivity.

developments in numbersBy 2015, the company plans to commercialize more than 180,000 tons of meat per year.

subsequently, the construction of new plants and farms will become a basis for their second goal, which is to produce 340,000 tons of meat per year by 2020.

“Our goal is to duplicate Kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of Kekén’s human resource, we will be able to achieve anything”– Dr. Claudio Freixes, CEO of Kekén

Page 74: Food Drink and Franchise - October 2014

A Sustainable &Self-sufficient

Sugar Mill:Renewing the

Guatemalan sugar-cane industry with substantial energy and operations.

Written by: rebecca castrejon interview by: taybele Piveninterviewee: fraterno Vila,

ceO of corporation san diego

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coRpoRatIon san dIego

a Family Business United by sugar

Corporation san diego is a sugar-cane production company based in Guatemala. its history goes back to the 1940s when

faterno Vila Betoret, business executive and founder of ingenio san diego, opened this sugar mill as part of his corporate vision of elevating the country’s agribusiness.

during the first harvest, san diego produced around 300,000 tons of sugar. By 1960, Vila Betoret decided to open a new mill with an installed capacity of 60 thousand tons of sugar production per year.

With the company’s growth, a second generation of entrepreneurs joined san diego in the 1980s. Among them was the current ceO of the company, fraterno Vila Giron, who soon enough was involved in the administrative business-family sphere. His first major acomplishment was the acquisition of a small sugar mill with a great strategic location: ingenio trinidad. the new acquisition provided competitive advantages to the corporation because of its proximity to the port and by producing 72,000 tons of sugar cane per harvest.

“We are a family business which was originally directed by my father. He established the foundation of this company,” says Vila Giron.

in 2010, the original sugar mill “san diego” was closed in order to consolidate all operations into one venue. the company chose ingenio trinidad

Corporación San Diego

and the communities of

Guatemala

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coRpoRatIon san dIego

w w w. s a n d i e g o . c o m . g t 7 7

l At i n A m e r i c A

because of its location, logistics, security, and production capabilities for the future.

A third generation of young executives joined san diego in 2012. Additionally, the corporation hired external talent and corporate consultants to mediate operations.

“since the founding of the company we have tried to keep certain parameters, certain lines according to our code of ethics and what defines us in values and principles. We follow five fundamental standards, which are: integrity, respect, work, unity, and sustainability,” said the ceO.

Machinery imported from India, Japan and England

Aerial view of Ingenio

Trinidad

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coRpoRatIon san dIego

suppliers with Value corporación san diego has maintained the same company ethics with all business partners, including suppliers. many of their raw material is essential in the daily life of the sugar factory, from cane (its primary input during a harvest cycle of six months) to international equipment.

“Our suppliers have been very efficient and serviceable with us. in some cases, they have sacrificed their utility sales to meet our demands,” he said.

Additionally, the machinery that the company requires for daily activities, such as boilers, power generation equipment and milling material, has

Energy production, an

added business of San

Diego

www.horcalsa.com

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coRpoRatIon san dIego l At i n A m e r i c A

been imported from india, Japan, and england as a result of collaboration with foreign suppliers.

energy self-sufficiency the family business experienced substantial growth after introducing a new business model: the cogeneration of energy (cHP). Around 30 percent of this resource is used for the plant’s self-consumption while the rest is used for external sales.

since early 2013, corporación san diego has commercialized their energy produced in the sugar factory in addition to resources purchased from generators. As a result, both the corporation

Sustainable and dry processes to save resources

This year, they

produced more than

161 thousand tons of

sugar

Page 80: Food Drink and Franchise - October 2014

coRpoRatIon san dIego

[email protected]

and the generating company have increased profits thanks to the large amount of sales in central America.

san diego has strengthened operations and reformed its international strategies with the opening of commercial branches in el salvador with the opening of this new business in the energy sector,

As for their exports, the corporation is conducting thorough market research in mexico and central America—where it expects to invest in the next couple of years.

“Approximately 10 years ago, we started to sell energy. last year, we sold more than 18

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coRpoRatIon san dIego l At i n A m e r i c A

megawatts per hour and in the next two years we expect to sell 85 megawatts per hour,” says Vila Giron.

a responsible sugar-cane MillGuatemala holds a great importance for the family business, therefore, its procedures are friendly to the environment and it supports the community with socially-responsible programs to improve their quality of life.

“We want our partners, employees, suppliers, and even the government—but specially the surrounding communities— toperceive us as an efficient, highly responsible, and sustainable business,” he says.

The growth of a family business

“This month we exported

more than 30 percent of the

energy produced in Central America”

– Fraterno Vila, CEO of Corporación San Diego

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coRpoRatIon san dIego

ingenio Trinidad Production goalsin 1980, the company produced 72 thousand tons of sugar. now it produces more than 161 thousand tons of sugar cane during the harvest.

“We hope to produce between 245 and 250 thousand tons of sugar in the next two years,” says Vila Giron.

commercial and organic expansionin the past three years the company has been reaching positive numbers with the introduction of new businesses and their development in foreign markets. they are hoping to complete this expansion in 2016, begin the path of

Sugar-cane plant

They hope to produce between 245 and 250 thousand tons of sugar in the next two years

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coRpoRatIon san dIego l At i n A m e r i c A

https://twitter.com/indurama__

Company Information I n d u s t Ry

Production and

commercialization of sugar

and energy

H e a d q u a Rt e R s

City of Guatemala, C.A.,

Guatemala

f o u n d e d

1963

e m p l o y e e s

2,500 – 4,500

R e v e n u e

USD +$200 million

w e b s I t e

www.sandiego.com.gt

consolidation, and add new units or added value products such as alcohol and refined sugar.

“We are convinced that a productive and efficient company can contribute to the welfare of its members, associates, and the community. in addition to this, we want to assist both the country and people with improvements,” says Vila Giron.

“Although our company is not the largest one in the country, we have high prestige and a lot of respect in and out of our sector. This is an extremely valuable group and this is what we have tried to convey to our children, who in the future will be leading the company”– Fraterno Vila, CEO of Corporación San Diego

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Houston canada Inc.Houston Canada Prepares for GrowthDirector of Operations Guy Miquelon discusses the Houston family of restaurants and their plan for company and franchise growth in Quebec and beyondWritten by: laura close Produced by: James Hayes

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Houston canada Inc.

In order to reach its full potential, sometimes a restaurant chain needs to evolve with the changing

times. When canadian restaurant chain Houston steak and ribs came under new ownership in 2008, a change was in order to take the chain in a new direction and to the next level.

“We felt that Houston steak and ribs was a good brand, but that

the market was going to change,” says Guy miquelon, director of Operations at Houston canada inc. “We felt that the casual dining market would soon be less about specific menu items, like steak and ribs, and more about an environment or an atmosphere – a place where people could gather and enjoy themselves amongst friends.”

to meet this new zeitgeist in the

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Houston canada Inc.

culinary world, Houston steak and ribs was transformed into the chain known today as Houston Avenue Bar & Grill. “We’re still food focused, but we focus just as much on atmosphere and events to create more of a style of restaurant – not just a style of food, but style as far as the atmosphere,” says miquelon. Under this new identity, Houston is taking Quebec by storm and

preparing for even further growth in the near future.

on a Track Toward Franchise growth in the past eighteen months Houston Avenue Bar & Grill has been working aggressively to cement its corporate presence in the large urban markets of Ontario and Quebec, opening three new

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Houston canada Inc.

Proud to Partner with YouFière d’être votre partenaire

www.sysco.ca

1737.09 - Houston Bar-Grill AD_Layout 1 17/09/2014 10:11 AM Page 1

restaurant locations across Quebec with plans to turn focus toward Ontario later this year. the company has also recently launched its first spinoff – indUstriA, a casual dining concept with a focus on italian cuisine – with its first opening in montreal’s Griffintown.

“We decided to create a second concept because often we have opportunities to open in certain markets or certain shopping centers for instance, and our second concept would be more suitable for

that space,” says miquelon. “now we can seize opportunities to open up and have two different brands depending on what would be best suited for that spot.”

With these opportunities before it, Houston canada inc. is laying the groundwork for potential franchise partnerships in order to more effectively expand into more suburban markets. “in the larger markets, like montreal and Quebec city and Ottawa it’s more of a corporate presence we’re trying to

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Houston canada Inc.

achieve,” says milquelon. “We feel that in smaller cities it’s important to have a local owner, somebody who’s in the community.”

to best achieve a successful transition from only corporate-owned locations into a franchise business model, Houston canada is looking for potential franchise partners ready to take an extremely active role in running their location. “We don’t want a franchise partner that’s absent – we need a person to be hands-on to operate the store,” notes milquelon, noting that the brand plans to be particular and selective in choosing just the right

partners to take their business in just the right direction. “so we’re looking for franchise operators – that’s very important to us – and we’re also looking for franchise partners that will blend into a culture quickly. that’s also very important.”

consistency Through expansion Whenever a restaurant chain expands, it is critical that the company makes every effort to keep its quality standards uniform throughout each location. Houston canada understands this, and strives for consistency as it grows throughout the region.

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Houston canada Inc.

“We try to go through one major distributor to supply all our products – that’s our ultimate goal,” says milquelon. “We partner up with national suppliers so that, if we do open in another province or a different area, they’re able to accommodate our needs there as

well. Our suppliers are partners, they help us with our business to make us more efficient.”

Branching out no one can know what the future holds – but at Houston canada inc, one thing that’s certain is that the

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Houston canada Inc.

future will be full of growth as Houston Avenue Bar & Grill continues to build out in the Ontario market and sets its sites on further provinces. As the brand transitions into its franchise model phase, while continuing to strengthen its brand identity from a core corporate level, the sky is the limit.

Company Information

I n d u s t Ry

Food

H e a d q u a Rt e R s

Quebec

f o u n d e d

2008

e m p l o y e e s

600

R e v e n u e

$80 Million

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pancake parlour:The Pancake Parlour: Taking On Social Media Pancake Parlour Marketing Manager Nicole Jackson discusses the iconic Melbourne brand’s strengths in social media to connect with employees and fans

Written by: sasha orman Produced by: andrew Zhao

ThE

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pancake parlour:The Pancake Parlour: Taking On Social Media Pancake Parlour Marketing Manager Nicole Jackson discusses the iconic Melbourne brand’s strengths in social media to connect with employees and fans

Written by: sasha orman Produced by: andrew Zhao

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tHe pancaKe paRlouR

THE PANCAKE PARLOUR has been an iconic Australian restaurant institution for decades. despite this legacy status, the company is committed as ever to staying fresh and up to date – it’s this dedication that has kept the Pancake Parlour at the forefront for the past fifty years, and will continue to carry it with

consumers and employees alike well into the future.

Building a Better Internal System “We’ve been around for fifty years, but we realized that it’s really important to stay relevant and move ahead with the times – especially when we have more than 600 employees mostly millennials,

Fresh Strawberries

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tHe pancaKe paRlouR

Scotch Fillet Steak

and all using technology,” says nicole Jackson, marketing and communications manager for the Pancake Parlour brand. “to really stay ahead and stay focused with them, we needed to implement something that was going to be suitable and able to talk to that generation.”

for the Pancake Parlour that something is sherpa systems, an

integrated web-based program framework that forms the basis of the restaurant’s fully customized internal communications tool “the mix”. “We did a lot of research on what companies were out there and what programs and what web-based systems were out in the marketplace, and we really formed an alliance with sherpa

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We are manufacturers and distributors of Quality Australian Dairy Products and have been for over 75 years.

We are a One Stop Dairy Shop with the ability to supply a full range of Quality Dairy Products to Industrial, Foodservice and Retail Customers.

Marsh Dairy Products Pty LtdABN: 25 005 086 288Phone: 03 9689 3433Fax: 03 9689 3422

86 Maribyrnong Street FootscrayVictoria 3011, AustraliaEmail: [email protected]

One Stop Dairy Shop For Quality Dairy Products

“Social media has become a digital form of traditional word of mouth advertising, and a picture tells a thousand words,”

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because we found that their vision and development of their system was on par with our vision for the company,” says Jackson. set to roll out within the next couple of months, the company will be using “the mix” as a complete employee management tool, ranging from recruitment training, rostering, payroll and task management to social communication between restaurants, managers, and employee teams.

“employees can access the tools they need from any device at any time, and they are in touch with the restaurant for all of their communication, rostering and workflow needs,” Jackson explains. “they can use it for swapping shifts, leave requests and staying in touch - it’s basically like a mini-facebook group within the company with added management tools.”

Award-Winning Social Media Expertise the Pancake Parlour is well familiar with facebook. Using it is a cornerstone of the brand’s finely tuned social media strategy, executed fully in-house by the

brand’s social media team with the goal of keeping fans naturally engaged in the Pancake Parlour experience on a daily basis. it’s a big job, requiring a full-time commitment from the Pancake Parlour’s marketing and social media team, but that hard work has paid off with more than 250,000 facebook fans for the group and a recent award for excellence in social media from the Australian restaurant and catering Association.

“i think that our number one strategy is really just keeping our brand at top of mind for facebook users,” says Jackson. “We appear daily in their newsfeed with all sorts of key messages that are relevant for the time – whether they are coming for breakfast, lunch, or supper – and the thing about our product is we have fantastic images we can use.”

that wealth of images has gone a long way in helping the Pancake Parlour develop its social media strategy, which revolves mainly around image-based mediums such as facebook and instagram.

“social media has become a digital form of traditional word-

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tHe pancaKe paRlouR

of-mouth advertising, and a picture tells a thousand words,” notes Jackson. “We could do a radio ad that talks for thirty seconds about our lemon Berry Pancakes, or you can see a picture in an instant and know exactly what it looks like and you

can almost know what it’s going to taste like just by looking at the photo. so mouthwatering images work really well. the minute we post a chocolate pancake with whipped cream and ice cream and strawberries our fans are totally engaging with us and

The Short Stack

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tHe pancaKe paRlouR

sharing their experiences. so our strategy is really just about staying relevant to them.”

The Pancake Parlour at Fifty the Pancake Parlour is at the precipice of a major milestone – fifty years in the restaurant business as of 2015.

“With fifty years of history being a milestone, we’re launching a history book on the family business that will be coming out in 2015,” says Jackson. “it’s the story of how the Pancake Parlour has evolved, with a lot about the family behind the business as well.”

Fifty More Years and Beyond fifty years in business is an impressive feat for any business in any sector, especially in today’s global economy. But the Pancake Parlour isn’t just holding on to business – it’s thriving and growing, while remaining true to its roots.

“We’re a bit of a melbourne icon, and with our current ceO, simon meadmore, being the son of the original cofounders, it’s still very much a melbourne family business,” says Jackson. “fifty years is a great achievement, but we’re really making sure we’ve stayed relevant. We’re always looking at ways we can create new dishes, renovating for a new modern look, and building our strong social media presence to keep us more in tune with the current generation.”

if its current efforts are any indication, the Pancake Parlour will continue to build its base and thrive for another fifty years to come.

Company Information

I n d u s t Ry

Restaurant Group

H e a d q u a Rt e R s

Melbourn Australia

f o u n d e d

1965

e m p l o y e e s

600

R e v e n u e

Privately Held

p R o d u c t s /

s e R v I c e sThe Pancake Parlour is an Australian family-owned restaurant featuring ten restaurants in Victoria. Founded by Allen and Helen Trachsel and Roger Meadmore in 1965, The Pancake Parlour was created as a neighborhood restaurant for Melbourne residents to enjoy all-day pancakes and a friendly atmosphere. Today The Pancake Parlour continues to evolve for modern tastes, while retaining the quality food and family charm that made it a Melbourne icon.

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German-Australian Chamber of Industry and Commerce (GAC):40 years experience fostering German-Australian bilateral trade

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German-Australian Chamber of Industry and Commerce (GAC):40 years experience fostering German-Australian bilateral trade

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geRman-austRalIan cHambeR of IndustRy and commeRce (gac)

SINCE ITS FOUNDATION in 1977 the German-Australian chamber of industry and commerce (GAc) has become an important partner in fostering bilateral trade between Germany and Australia. the GAc maintains two offices one in sydney and one in melbourne. the governing body is the council,

which together with the Association of German chambers in Berlin, appoints the chamber’s executives. since 2011 kristian Wolf is the executive director of the GAc and the elected President is currently lucy Hughes turnbull AO.

GAc’s mission is to facilitate connections between German

Energy Efficiency and Renewables in Buildings Conference

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aust ra l ien .ahk .de/en/ 1 0 3

geRman-austRalIan cHambeR of IndustRy and commeRce (gac)

and Australian businesses and we are the officially recognised focal point for contacts, information and expertise in both markets. Our vision is to help connect Germany and Australia through commerce and assist our clients to build and develop sustainable businesses. We promote both countries’ expertise whilst supporting our client’s needs. Our core values are respect, trust, expertise and flexibility.

At the German-Australian chamber of industry and commerce, we have almost forty years of experience and our competent team of experts and partners can deal with all facets of the Australian market. One of our main objectives is to advise German and Australian companies on market developments and to support them with the right market entry strategies to give newcomers the optimal chance of success.

the German-Australian chamber provides a wide range of services for members and non-members alike, particularly for small and medium-sized companies. these services start with tailor made address lists and go right up

to detailed market studies and business partner searches. We offer advice on setting up business within both Australia and Germany with services that include customs regulations information, assistance in sourcing employees or a complete business representation for very small start-ups.

knowledge about specific market information is essential for companies looking to successfully expand their business into Germany or Australia. Our research is tailored to provide them with a better understanding of the German or Australian market for their product or service.

While Australia is a good export market for German businesses generally, a few industries have a particular need for German products and technologies. to help them fully take advantage of these opportunities, GAc’s consulting department “deinternational” specialises in the following sectors: • FoodandAgriculture• EducationandVocational

training • MiningandRawMaterials• Healthcare

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geRman-austRalIan cHambeR of IndustRy and commeRce (gac)

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Kristian Wolf

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geRman-austRalIan cHambeR of IndustRy and commeRce (gac)

• EnvironmentalTechnology• RenewableEnergy• EnergyEfficiency

the chamber is also a membership-based organisation which offers an extensive networking platform for its member-companies. Our know-how combined with the expertise of our partners makes us a strong and competent partner for all business needs. in 2014 the GAc’s membership reached a total of some 370 companies, most of which are located in Australia. About half of these are Australian companies with business links to Germany and the remainder is largely German subsidiaries.

the members come from diverse industry backgrounds and membership is available to every company involved in business relations between Germany and Australia. the GAc offers three types of memberships: “corporate”, “Group” and “Premium Partnership” to facilitate and multiply our business networks. All members receive invitations to networking events, luncheons, seminars and conferences. furthermore they can present their business to other member companies through GAc’s extensive media offer including on and offline publications. membership with the GAc allows companies the possibility of finding partners and clients as we as access to industry experts, trade associations and government departments in both countries.

Company Information

I n d u s t Ry

Sector

H e a d q u a Rt e R s

Sydney

f o u n d e d

1977

e m p l o y e e s

370

R e v e n u e

Non-Profit

p R o d u c t s /

s e R v I c e s

Since its foundation in 1977 the German-Australian Chamber of Industry and Commerce (AHK) has become an important partner in fostering bilateral trade between Germany and Australia. One of our main objectives is to advise German and Australian companies on market development and to support them in the initiation of business relations.

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Through a vertical industrial complex, the group invests in the concept of

agro-business and grows each year Written by: Flávia Brancato | Produced by: Karla Sohn

FRIATO is the biggest company in

the Northern/ Central-Northern

region

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Body Text: With a history marked by work and innovation, FRIATO quickly proved their capability at working hard and succeeding. Functioning at full steam since 1995, NUTRIZA Agroindustrial tripled its production rate in three years, reaching

the 90 thousand birds/day mark. By then, the FRIATO brand had already been established, in addition to an integration project consisting of poultry farming in association with a micro-entrepreneur or rural producer. Quickly, the first exports began towards Hong Kong and China.

Almost two decades later, great research advances in the development of new technologies in poultry raising have turned

Poultry Slaughterhouse

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FRIATO

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NUTRIZA/FRIATO into one of the greatest global producers and exporters of poultry meat. According to Francisco Tomazini, president of NUTRIZA/FRIATO, there were other fundamental factors for the growth of the company, including the increasing consumption of chicken meat. “Significant changes in the feeding pattern and the opening of the markets, resulting from the economic globalization process, caused an increase in the production scale with cost reductions and, therefore, increase in consumption,” Tomazini explains.

THE FRIATO BRANDTo raise, slaughter and industrialize chickens with a high quality standard is the main purpose of the NUTRIZA group. Today, the FRIATO brand is formed by a vertical industrial compound and a full top level structure, in addition to egg incubators, broiler farming, as well as egg production, industrialized products and portions manufacturing. The core is capable of slaughtering close to 300 thousand birds per day and producing frozen and cold chicken, as well as special cuts.

With a gross annual invoicing of approximately 1 thousand million Reais, the industrialized manufacturing sector of the company is responsible for the production of more than 300 tons of food per day alone, including chicken sausages, ham and wieners. Securing greater control over the egg

Whole products

In Natura

Nutriza frozen chicken

Refrigerated chicken

Friato frozen chicken

www. f r ia to .com.br 1 0 9

B R A Z I LFRIATO

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production, through a modern incubation central with state-of-the-art equipment allows the incubation of 15 million eggs per month.

To acknowledge their growing success, FRIATO kept their 2nd place title as outstanding company in the agro-industry area in the nation, and held 1st place as the biggest company in the agro-industrial sector of the Northern/Central-West region, in the Almanac Valor 1000, of the Valor Econômico Newspaper.

Currently, as a sign of commitment to the quality of its products and acknowledged by the domestic and international market, the company currently has close to 2,500 direct associates and 5,000 indirect associates. The company serves the markets of the Central-West, Northeast, North and South-East of the country, in addition to foreign markets in Africa, Asia, the Middle East and Russia.

THE DIFFERENTIAL“To stand out from the competition, offering a good service or product is not enough. It is necessary to promote an efficient strategy for business process management,” Tomazini said in regards to the evident corporate feature of NUTRIZA/FRIATO. Tomazini further reinforces the relevance of people and internal process management, “People, systems and processes must be integrated. Employees must fully know the company processes with which they work, and such processes must be well aligned

Friato has their own chicken farm with an area of 350ha

The company count with approximately 312 chicken farms

“To stand out from the competition, offering a good service or product is not enough. It is necessary to promote an efficient strategy for business process management”– Francisco Tomazini, President

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FRIATO

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B R A Z I L

with the company business. Only that way the company will be able to become the main choice of consumers.”

The verticalization structure is one of the main differentials of FRIATO. The company serves in family context, further responsible for the own production of soy beans and corn, through the OLVEGO – Óleos Vegetais de Goiás -, which guarantees total control over production stages. This process begins with soil control, correction, fertilizers, protection, plantations and harvesting. Everything is done with state-of-the-art machinery, grain storage and industrialization of products. The strict control of all production process stages guarantees products with excellent quality standards.

Poultry Slaughterhouse

FRIATO

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www.evonik.com/animal-nutrition [email protected]

Evonik AMINO Tools:

Facts & Figures

Communication

Sustainability

Analytics Handling SolutionsNutrition

AMINOTrac®

A fresh perspective on our masterpieces Evonik provides you with all four essential amino acids for animal nutrition: MetAMINO®, Biolys®, ThreAMINO®, TrypAMINO®. But just as importantly, our range of AMINO TOOLS provides you with everything you need to maximize efficiency.

14-01-407 AZ Masterpiece_port_A4.indd 1 08.09.14 10:57

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www.evonik.com/animal-nutrition [email protected]

Evonik AMINO Tools:

Facts & Figures

Communication

Sustainability

Analytics Handling SolutionsNutrition

AMINOTrac®

A fresh perspective on our masterpieces Evonik provides you with all four essential amino acids for animal nutrition: MetAMINO®, Biolys®, ThreAMINO®, TrypAMINO®. But just as importantly, our range of AMINO TOOLS provides you with everything you need to maximize efficiency.

14-01-407 AZ Masterpiece_port_A4.indd 1 08.09.14 10:57

“Today, NUTRIZA/FRIATO is automatized as efficiently as possible. We seek the continuous qualification of our professionals, offer training and qualification courses, and we invest in logistic partnerships and distribution of our products,” adds the president. Furthermore, the poultry sector presents positive indexes, particularly in Latin America, in which the productivity increase, the processing efficiency, the scale economy and the climate of the country itself, contribute to positive expectations for the Brazilian poultry farming industry, in general.

QUALIFICATIONSTomazini is proud of its achievements and places great responsibility on company qualification projects. “We believe that the greatest equity of the company are our collaborators, and that is why we develop different projects and programs to value and retain talents,” he says. Among many training projects of the company, most in partnership with SEBRAI and SENAI, professional training courses are offered, such as the “Projeto Acolhida”, which has the purpose of receiving the new workers,

Evonik produces feed additives in six sites, five countries and it´s the only company in the world that provides all four essential aminoacids for animal nutrition: MetAMINO® (DL-methionine), Biolys® (L-lysine), ThreAMINO® (L-threonine), TrypAMINO® (L-triptophan), Mepron®, rumen protected methionine for dairy cows and CreAMINO®, the only supplemental creatine source for broiler nutrition, complete the range of products from Evonik.

CORPORATE.EVONIK.COM.BR

SUPPLYER PROFILE

EVONIK: CORE SPECIALTY CHEMICALS BUSINESS

B R A Z I L

www. f r ia to .com.br 1 1 3

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monitoring all stages of professional adjustment and development.Furthermore, NUTRIZA/FRIATO has an exclusive 24-hour clinic, with

a special medical team to care for any immediate need. The company also has a Quality Guarantee Department, which acts independently through a qualified technical body, through which 19 quality programs are in place, such as: Good Manufacturing Practices, Standard procedures for Operational Hygiene, Operations Sanitary Procedures, Hazard and Critical Control Points Analysis, among others.

In addition to the traditional health plans, dental plan and life

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FRIATO

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insurance, the company also offers a Specialized Service in Labor Medicine and Safety Engineering, offering regular courses and training with the purpose of guaranteeing life quality and safety in the workplace.

CARE FOR THE ENVIRONMENTCertified with a green seal, FRIATO helps with the sustainability and protection of nature in the whole production process. Sub-products generated by NUTRIZA/FRIATO are processed

Products

Cuts

Boneless Thigh and

Drumstick Frozen

Refrigerated chicken

breast

Frozen wings

President, Francisco Tomazini

FRIATO B R A Z I L

www. f r ia to .com.br 1 1 5

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and marketed with raw material. In addition to being used intelligently, these contribute to the preservation of the planet. In addition to having its own timber production –which contributes to 80% of the power used in the boilers, the reforested eucalyptus further contributes to other companies of the group. Tomazini adds, “all water used in the kill floor goes through a waste water treatment before being returned clean to nature. All residues are treated within the environmental standards that are supervised by competent organs before being released to the environment.”

INVESTMENTS AND THE FUTURE“Recently, 300 million Reais were invested and the purpose is to continue with the investments. This year, the investments are expected to be

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FRIATO

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10 million Reais,” the president states. The inclusion of the latest project of the group should be noted: located in the municipality of Uruçuí, in Piauí. The Serra Branca Agrícola S/A Project – which is already in soy and corn grains production phase –is part of the planning of the most recent Vertical Industrial Compound, formed by broiler farming, egg incubators, Rations Manufacturing, Chicken farming, soy crushing industry, and poultry slaughterhouse. “The projection is for works to begin in 2015, and for FRIATO NORDESTE to be completed by 2020,” Tomazini concludes.

Company Information

N A M E

Nutriza Agroindustrial de Alimentos S/A

I N D U S T RY

Agroindustrial

H E A D Q U A RT E R S

Pires do Rio, Goiás

F O U N D E D

1993

P R O D U C T S /

S E R V I C E S

To raise, slaughter and industrialize poultry meat

M A N A G E M E N T

Francisco Tomazini: Founder and President Fábio Tomazini: Commercial and Financial Director Giuliano Tomazini: Supply Director

FRIATO B R A Z I L

www. f r ia to .com.br 1 1 7

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In constant evolution, Frigorífico Silva invests in human capital and industrial technology to keep its

tradition as well as the market’s acknowledgmentWritten by Flavia Brancato Produced by Karla Sohn

FRIGORÍFICO SILVA Quality standard is the

strength of the brand

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T he consolidation of the strong brand and the consistency of the production quality is the result of hard work and determination for over 40 years. Four decades ago, Frigorífico Silva became the brand that is synonymous with commercial credibility,

social-environmental sustainability and product quality, with much effort and through constant investments both in industrial parks as in its organizational culture. The mark of its success is due to the quality and the strength of the brand as a manufacturer of a Premium product, serving the domestic and global market.

Being one of the few Brazilian companies able to export beef globally, the company has a modern industrial park, which observes the most stringent international quality standards. For that, the President of Frigorífico Silva, Ivon Silva, points out “we are a company focused on quality, and we seek quality as the foundation of our brand; that is, from the raw materials to

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FRIGORÍF ICO S ILVA

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the table of our end consumers.” The company organization strives to maintain respect towards collaborators, raw material suppliers, as well as to retailers, and tries to uphold environmental accountability. “Another factor is that it is relevant is the constant investment in industrial technology and human capital for us to keep the standard of our products which are domestically and globally acknowledged,” the President states.

Production and facilitiesCare in the purchasing of raw materials, cattle transportation logistics, humane slaughter, the excellent cold facilities and the careful maintenance of industrial quality control are just some of the main characteristics of Frigorífico Silva, which back a quality product acknowledged by consumers. Giving priority to quality instead of quantity, the company strategically operates with just one meat packing plant in the country. In markets abroad, a recent enlargement and modernization of the industrial plant enabled the company to be one of the two certified to slaughter in the

“We are a company focused on quality, and we seek quality as the foundation of our brand; that is, from the raw materials to the table of our end consumers”

– President of Frigorífico Silva, Ivon Silva

FRIGORÍF ICO S ILVA B R A Z I L

www. f r igor i f icos i l va .com.br 1 2 1

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state of Rio Grande do Sul, exporting to the European Union.The brands related to certified British breeds, such as Angus and

Hereford, are raising interest in foreign markets due to the taste and softness of these meats, as can be observed in the demand for Argentinean and Uruguayan meat, because these are precisely focused on the slaughter of these breeds. Silva even notes the relevance of obtaining their own brands to serve the domestic market, “today, Frigorífico Silva is an industry that holds one of the brands most desired by the consumer in its segment. Best Beef is the mother brand that has in its portfolio another five successful brands, in addition to being nationally known for the specialty producing cuts with its own brands for big chains.”

As a result, the company received several requests to customize special

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B R A Z I L

products with its own brands for big retailer chains. Today, Frigorífico Silva has in its production line a segmented and rigorous quality control to cover such specific demand. “Customization for the client is one of our greatest bets. Currently, the market is focused on the big European and North American markets, that is, continuing to produce what the consumer demands and supermarket chains’ need is part of our specialties,” Silva explains.

Therefore, the company is currently going through a big industrial expansion and evolution phase, precisely to cover the new market demands, whether these arise from the current economic situation, or are based on consumer behavior. Ivon Silva further admits that “a new factory is being born with the purpose of facilitating the management of big

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chains in their retails and to make it practical for the day-to-day of the end consumer.”

In addition to the infrastructure for slaughter, deboning, refrigeration of carcasses and meat, and packing and storage, the company has other structures to guarantee the quality of the marketed product. Among them is a meat flour factory with an integrated grassing content combustion system, delivery with strict temperature control, premises for the processing of edible offal – enabled for exports to different UE countries, in addition to a processing unit for animal fats destined for the cosmetic industry.

The compound further adds a whole facility with a clinic, casino, entertainment area, resting area, and events hall, and offers dental, gynecology, psychology, ergonometric and physiotherapy care for the employees.

Trombini is among the largest manufacturers of corrugated cardboard packaging and multiwall paper bags in Brazil and is a leading in Latin America.

Being reference in this market for decades in Brazil, Trombini cares about the environment and the life quality of the people in the region. This way, Trombini has planned forests (FSC® certified), with extensive recycling of packaging paper and absolute atmospheric environmental, hydrous and sound control of its industrial units.

Rodovia RS 122 – Km 61 – Distrito IndustrialFarroupilha – RS – CEP 95180-000Fone: +55 (54) 2109-7000www.trombini.com.br

FRIGORÍF ICO S ILVA

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Challenges in the sector and professional qualifications“The biggest challenges today are in the search for raw material on a large scale and in covering the demand for our Premium product, which is well acknowledged in the market. Maintaining the product’s value while producing at great scale sometimes becomes a challenge, but since we act in a segmented market, we do not always consider it a challenge; rather, a reason to further specialize ourselves in the selection of our target user,” says Silva.

As ways to alleviate any potential obstacles, the company further strives for optimization and efficient ways of managing the operational system. Minimizing waste, continuous improvement in cost reduction, together

Water treatment

FRIGORÍF ICO S ILVA B R A Z I L

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COMPANY NAME

with the increase in productivity, are some of the examples applied by Frigorífico Silva in search for the best possible performance.

Concerned with keeping and developing good entrepreneurial management, the group works with different strategies to bring work teams closer, created by the company itself, for the better performance of the industrial production team, as well as career path and professional growth incentives for our collaborators.

Water treatment

Quality control visit for supermarket chains

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COMPANY NAME S E C T O R

Quality ProgramsWith a view towards always maintaining a good quality product and standard production of safe foods, Frigorífico Silva has a technically trained quality control team, which assesses and supervises all stages of the productive process, from the reception of cattle to the delivery of the foods produced. The company has implemented different international quality programs, with their supervision and procedures being applied on a

“Customization for the client is one of our greatest bets. Currently, the market is focused on the big European and North

American markets”

– President of Frigorífico Silva, Ivon Silva

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President Ivon Silva and Commercial Director Gabriel Silva

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daily level to the whole industry.A perfect example is sustainable Best Beef.

The president explains that “the brand favors small producers with continuous production supervision in the properties certified by the slaughterhouse, in addition to guaranteeing that slaughtered animals are raised in deforestation-free areas.” She ends saying that “this program also covers the social and familiar sustainability of producers, guaranteeing that there is no child labor at the farms, and guaranteeing the constant attendance of children to schools.”

Together with the aforementioned quality programs, the company performs two types of laboratory controls; physical-chemical and microbiological, which are carried out following a timetable of sampling and analysis, seeking to test and certify the quality of the products and the conditions in which processes are carried out.

In order to perform analysis control, the Quality Management of Frigorífico Silva has 20 quality supervisors recording and testing the equipment used everyday. All samples collected by the quality control systems are recorded and forwarded to the labs of the Federal University of Santa Maria and the Federal University of Rio Grande do Sul. Test results are audited by the Federal Inspection Service responsible for the facilities.

Company Information

I N D U S T RY

Food

H E A D Q U A RT E R S

Santa Maria / Rio

Grande do Sul

F O U N D E D

1942

E M P L O Y E E S

850

P R O D U C T S /

S E R V I C E S

Production and

industralization of beef

M A N A G E M E N T

Ivon da Silva Junior,

President

B R A Z I L

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ABIEC:Brazilian Beef

Exporters AssociationIn 2014, ABIEC reinforces sanitary and reliability

concepts to promote Brazilian beef abroadWritten and produced by: ABIEC e CDN

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ABIEC

Brazil is committed to maintain the sanitary status and access new markets to reach US$ 8 billion in beef exports

With a 288% growth in exports in less than ten years, Brazil has maintained the leading position in the worldwide ranking of beef exports in 2013. The Brazilian Beef Exporters Association (ABIEC) – which was established in 1979 and today includes 26 member companies in this sector, accounts for 95% of the Brazilian beef exports – has had active participation in promoting these products.

ABIEC indicates sanitary status guarantees offered by the industry and the country as key factors for the success of the segment, besides the increasing competitiveness, the efficiency in cattle production and the high quality standards of the final products.

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark. We’ve had major achievements last year, such as the evolution of the Brazilian sanitary status and the increase in share of the main markets. That can help us better negotiate the inclusion of our product in the list of new potential buyers”, explains Antônio Jorge Camardelli, ABIEC’s president.

In 2013, Brazil registered a record in beef exports reaching US$ 6,6 billion, a 13.9% growth in comparison to 2012. “In addition to this

Gulfood 2014

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark”– Antônio Jorge Camardelli, President of ABIEC

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B R A Z I L

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ABIEC

significant result, we also had other important launching such as the electronic seal which is a technology that can reduce the time spent on bureaucratic processes in cargo authorization in our country”, says Fernando Sampaio, the association executive director. ABIEC expects to have the first commercial results of this technology still in 2014.

In addition, the Association also predicts a very

Key People

Antônio Jorge CamardelliPresident of ABIEC

Fernando SampaioExecutive Director of ABIEC

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Gulfood 2014

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ABIEC

active year in the sustainability area, which has been increasingly gaining importance and representativeness in Brazilian agribusiness. “We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers,” informs Sampaio.

HISTORYThe ABIEC was created as a response to Brazil’s low share in the global trade of beef in the late 1970s, repressed by numerous requirements and protectionist policies in the foremost markets of that time. Establishing the Association also enabled beef producers to develop a direct channel with national government agencies and international organizations, greater protection of the industry’s interests, and expansion of efforts to reduce trade barriers.

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ABIEC

“We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers”

– Fernando Sampaio, Executive director of ABIEC

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ABIEC

“Less than a decade ago, Brazilian beef was not on the agenda of issues to be discussed on international forums, with total sales near the US$ 500 million mark per year. Today, we are very proud to know that we managed to change this reality by reaching more than 13 times the exports value”, stated ABIEC President, Antônio Jorge Camardelli.

ABIEC IN NUMBERS:Results of beef exports from January to December 2013

• Revenue: US$ 6,6 billion• Tonnage: 1,5 million metric tons• Major Buyers:

» Hong Kong » Russia » European Union » Venezuela

Balance of Cattle in Brazil

• 171 million hectares (422.5 million acres) of pasture

• 1.2 head of cattle per hectare• Total herd of 212 million head• 40.4 million head slaughtered• Approximately 20% of the beef produced in

Brazil is exported

Association Information

I N D U S T RY

Food

H E A D Q U A RT E R S

São Paulo, Brazil

F O U N D AT I O N

1979

N U M B E R O F

A S S O C I AT E S

26 companies

K E Y P E O P L E

President: Antônio

Jorge Camardelli

Executive Director: Fernando Sampaio