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4M Food Solutions is a new, 100% Panamanian company, poised for conquering new challenges within the Food Service segment, with the energy, creativity, and experience of its founder, Miguel Quintero, focusing on the industry’s 4Ms– Money, Market, Menu and Management. Our concept is based on customized solutions, providing safety and an excellent service.
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Miguel Quintero CEO of 4M Food Solutions
Welcome once again to a new issue of the Boston Business Review, as we bring coverage to a couple of outstanding operations overseas, one of them -AB InBev Africa- gracing our cover, while we also learn about Grupo Bimbo’s operations in the other side of the Atlantic Ocean through their Bimbo Europe-Africa-Asia division.
Back in the Americas, Paradisus Cancun displays all of the attributes that make it one of the top properties in Meliá Hotels International’s elite line.
Also, don’t miss our AI contents, featuring Ph.D. José Moscoso, an insider and a reference in the Food & Beverage industry in Latin America.
Thanks for reading and sharing!
Mateo Rafael Tablado, Editor en jefe de The Boston Business Review rafael.tablado@thebostonbr.com
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Written by Ph.D. José Moscoso, executive in the food and beverage industry
Many businesses in the beverage industry use to separate a few days yearly to gather the management team and promising talents to carry out their strategic planning kick off meeting. High levels of participation and involvement are achieved here, gaining adherence to what will become the course of action during the next three or five years.
I have taken part in many of these workshops in different roles, in which, all the participants are part each of a different team, and the discussion begins with Risks (or Threats) and Opportunities that could potentially impact the business from different perspectives: economic, social, technological, industrial, and marketwise, among others. However, compared to the previous year, we are able to notice few significant changes in the outputs of these analyses and
little disruption to radically change the rate of growth acceleration. Wouldn’t it be useful to rely on more in-depth analyses of trends and changes in consumer behavior, for example, to objectively validate the bases of our proposals?
This is a great opportunity to embed a culture in the use of technological models and tools such as Artificial Intelligence (AI) in the strategic planning cycle and the management of key factors of success, incorporating deeper levels of analysis and continuous feedback objectively.
Big Data, Data Analytics, Machine Learning, Internet of Things, Robotic Process Automation, Augmented Reality (AR)... These and other Artificial Intelligence techniques based on analysis of structured and unstructured data through information systems and technological equipment
are a powerful source of competitive advantage when applied integrally in the strategic management of business.
This article aims to drive us to design a focused model able to assist in different strategic purposes, avoiding falling into “paralysis by analysis” or “over-engineering”.
I had the opportunity to lead the Corporate Comptroller department of a Multi-Latin Business Group diversified in food and beverages, among other business units, with a combined turnover of around $3.5 billion. The management team was comprised, mostly, of engineers from different specialties. The team’s work was based on annual audit plans covering around 10 engagements per year developed sequentially. However, despite having carried out a deep
- Ph.D. José Moscoso is an expert in the Food and Beverage for massive consumption industry
dive review of the processes, the conclusions and recommendations were based on sample analysis, since it was humanly impossible to work at population data level and even more difficult to interrelate them with databases of other processes or external variables. In this context, it was key to introduce new technological concepts and analysis methods that allowed us to
move to a predominantly preventive approach in order to achieve strategic processes in a continuous and deep manner.
The applied “prediction” model allowed us to find ourselves a step forward. Careful planning was necessary for such a purpose, as well as gaining a level of maturity in data management. The beverage and foods industry faces the challenge of seeking the benefits resulting from the application of artificial intelligence and technological concepts in the commercial and back office areas, to join the efforts they make in the automation of manufacturing and supply chain processes, in order to take advantage of its integration and synergies.
WHAT STAGES DO I RECOMMEND FOLLOWING TO IMPLEMENT A NEW MODEL BASED ON ARTIFICIAL INTELLIGENCE?
The Preparation stage involves
planning. It is key to have the commitment from Senior Management, since it’s necessary to select a team that will lead the construction of the relevant data model which will enable us to support the achievement of the strategic objectives. It is important to count with an expert leader in business processes and a specialized team to work on artificial intelligence techniques and tools. A budget will be necessary for training and analytical software, however, the expected results should bring a positive return on investment and mitigation of highimpact business risks.
Targeting consists of identifying only those factors that are key to the success or failure of our strategic initiatives and that will have the greatest impact on the development of our model. For example, in the beverage industry, knowing and managing “consumer preference”
5. Continuous Feedback
2.Targeting
4. Machine Learning
3. Data Analytics
is a key success factor. The targeting task will help us “select” the variables that determine the behavior of our key success factor to be analyzed. If we do not have internal data, we must look for it in the market or in public access sources. In our example, consumer preferences can be influenced by compound variables such as: sensitivity to prices, environmental awareness, nutrition and health, among others.
Data Analytics becomes the next filter. We will analyze large volumes of data (“Big data”) of the variables identified for the selected key factor, which will be organized to have structure (“Dataframe”) and consistency. At this stage, we will find the first outputs, detect symptoms and main causes, making it possible to implement immediate initiatives (“quick wins”) . The value resulting
from these analyzes lies in the greater precision achieved to understand behaviors and the interdependence of the variables analyzed, which allows us to plan an offer with added value for the consumer and greater profitability for businesses and retail. If we continue with the previous example (consumer preferences), we can find the trends of the main variables that impact our key factor,
classification, regression, forecasting, dimensionality reduction, etc.) on the “Dataframe”. In the previous stage, we had already identified certain trends in a more descriptive way. With the incorporation of the algorithms, patterns and scenarios will be calculated and estimated with a greater degree of certainty than in the traditional way, in which we would have discovered these the timing in which they gain relevance and their inter-dependencies, which allows us to identify the new engines that exert greater pressure on the preferences of our consumers: functionality of packaging, changes in the frequency of visits to retail, new sales channels, new habits or lifestyles, seasonality, etc.
In the next stage, the analyzes incorporate algorithms (clustering,
postmortem . We know this stage as “Machine Learning” , where the automation of analytical processes contains the added value of proposing recommendations and courses of action thanks to “learning based on the experience that the program itself accumulates” 1. At this stage, the relationships that we have cataloged can anticipate (as it is in our example) the relative changes in consumer preferences and guide us on actions such as: being pioneers in migrating to convenience ecofriendly packaging, among others, in order to anticipate (prediction) or suggest activities (prescription) throughout the value chain related to new trends or opportunities. Early adjustments on production lines, distribution or redefinition of segments are some of the strategic actions that can be considered as a result of the opportunities identified. Continuous feedback is critical
to adjust our management model and ensure a high degree of integration, while fine-tuning courses of action. Artificial Intelligence will help us with “early warnings” about deviations that could be found. The model will be organized into “Automated Executive Dashboards” and will include “key online information”. For this, it is critical to design “Robots” (“Robotic Process Automation”), for the continuous execution of the analysis routines in the predetermined “Dataframe”, generating efficiencies and reducing time.
From a Risk Management perspective, the model allows finding patterns that predict unusual situations by defining the “Dataframe” of processes such as payments, collections, inventories, losses and quality control, among others. Early warnings can be automated, either by “Robots” or by
devices interconnected through the IoT, receiving and sending data on real time. For example, alerts of deviations in the temperature of our fleet and refrigerated warehouses to ensure the quality of our cold chain, goes beyond avoiding risks of returns, resulting in the assurance of the value offered to our consumers. Risks of obsolescence and overdue portfolio (credit scoring) can also be strongly mitigated, while policies and procedures can be adjusted with greater certainty.
Embedding a culture of predictive and prescriptive analysis supported by Artificial Intelligence, analyzes techniques and information systems puts us one step ahead in seizing opportunities and mitigating risks, strengthening the strategic management of the business in an industry as dynamic as food and beverage.
Ph.D. José Moscoso is an expert in the Food and Beverage for massive consumption industry.
Education:
• PhD in Financial Economics, Banking and Stock Market, Autonomous University of Madrid, Spain.
•MBA, IE Business School, Madrid, Spain.
• Certified Public Accountant, University of Lima, Peru.
Experience:
• CEO, Corporate Director, Financial Vice-President at Latin American Multinationals.
• Associated Professor of the MBA program at the Post-grade Faculty of the University of Lima, Peru.
Digital transformation within the mining industry has resulted in more productivity and also reduced costs and risk exposure
The interconnection between electronic devices and common use objects to data networks currently implies plenty of everyday tasks. It is already possible to adjust home air conditioning remotely with the hardware’s app in a mobile device, and in the same way we can monitor our home’s wireless surveillance cameras and receive movement sensor alerts.
In different industries, depending on the business sector and its customary tasks, automation between machinery and programmed processes managed remotely is happening since a few years ago, delivering results such as:
• Improving safety and reducing risk exposure both for personnel and equipment
• Transitioning from preventive
maintenance and repairs to predictive maintenance
• Cost optimization and increased productivity
• More and better processes supporting decision-making
Besides the multiple professions mining gathers from for its operations, it has now grown a demand for IT specialists. According to GlobalData’s employment database, between July and October 2021 there were 597 jobs related to the Internet of Things (IoT) offered in the mining industry, and 540 of those jobs have been taken, for a 90.45% of positions filled.
Companies such as Anglo American, Caterpillar, Eaton, Flowserve, Komatsu, Nexans and Rio Tinto, among others, are the ones offering the most jobs in which IoT is key for everyday operations.
Besides the multiple professions mining gathers from for its operations, it has now grown a demand for IT specialists
Interconnected equipment used in mining for remote work includes from heavy load vehicles and automated trains -both driverless- conveying obtained minerals to devices with small sensors transmitting accurate data for decision-making in processes that result in less costs and increased safety.
Orica , the multinational Australian explosive and blasting system supplier, offers cloud-based solutions supported by apps, delivering useful data to determine the quantity of explosives needed for a specific detonation according to rocks’ hardness and results from previous detonations, among other information. Caterpillar, on its behalf, offers automation and remote operation solutions both for fleets and individual equipment through their MineStar™
Solutions line and also zero emissions vehicles such as the automated 793 model.
Infosys, the multinational IT company, shared data about some of the most outstanding operations in which processes based on IoT, clud, AI and cybersecurity have delivered solid results:
• Koodaideri (now known as Gudai-Darri), is an Australian-based Rio Tinto operation where the first intelligent mine has been established, powered by an hybrid system consisting of solar energy and carbonderived fuel. Most of its processes are operated and designed from a
command center in Perth, including the routes for heavy load vehicles, trains and autonomous drill rigs in mines and loading zones. In 2019, the first automated heavy load rail system was built at this site; the AutoHaul™ features automatic response for speed reduction, starts and stops,
Beyond tangible contributions in mining, there have been challenges which will certainly be surpassed through new tech developments
eliminating taking drivers to the mining site. The only factor affecting the more than $2.6 billion investment is scarce workforce, for which iron ore shipments have been postponed to 2022.
• Casa Berardi mine belongs to Hecla Mining and is located in Quebec, where open pit and underground operations are carried out to obtain gold and silver. Hecla partnered with Newtrax to monitor their machinery and its stoppage.
As a result, machinery use has been optimized through real-time diagnostics reducing its stoppage time, thus increasing production and experiencing an average extra hour per day of active operation. In 2020, the Casa Berardi mine produced 121,493 oz. in gold (at cash cost) and
by the close of 2021 production is expected to reach between 128,000 and 132,000 oz.
• Borden (at Porcupine mine, Canadá) is being operated by Goldcorp, which partnered with Cisco, and from 2018 and on, additional adjustments to their EV fleet and their solar energy system were performed, installing fans with sensors in the underground mine, which improved energy efficiency with remote operation, reducing work stoppage due to lack of ventilation. Results have also reduced the air quantity that had to be pumped into the mine from 1.2 million cubic feet per minute to 650,000 cfm. It’s not hard to deduct that electricity consumption in this project has been reduced in half, while obviously reducing costs.
• Glencore, on its behalf, partnered also with Newtrax in 2016 to install sensors for its mobile machinery at the Matagami zinc mine. Data provided by interconnected equipment has resulted in a better understanding of its performance, thus achieving greater productivity.
Each ore mineral load has increased from an average of 55 up to 60 tons.
Beyond tangible contributions since IoT has been deployed into mining operations, there have been challenges which will certainly be surpassed in the future through new
tech developments.
It must be noted that underground mining implies limitation in connectivity with wireless networks as operations run deeper from the surface. Also, mineral deposits in remote areas can hardly access 3G and 4G connectivity, much less 5G
internet, which is required to move vehicles and other objects from a remote location.
Nevertheless, these are the kind of obstacles that spark the big developments in tech required to continuously bring value into mining.
We commercialize propane gas in bulk gas tanks and cylinders for industries, agriculture and families. Every customer that needs to generate combustion or heat is important to us. We provide a different energy.
Written
by
Mateo Rafael Tablado
Translation
by
María Murgui
Produced by Jassen
Pintado
Art Direction
Omar Rodriguez
Interviewee
Mynor Espinoza, General Manager for Paradisus Cancun
Paradisus Cancun has made the most from the support provided by Meliá to become a trend-setting leader in in this important area
Meliá Hotels International is a company of Spanish origin that has become a leader in hospitality thanks to its worldwide presence. It has been settled in Mexico for some decades, being present in the most important cities in the country. The main tourist
destinations are a priority for Meliá and that is why the Paradisus line operates one of the most important properties for the hotel chain.
Paradisus Cancun’s first stage was built in 1988, being the second one built in 1999. The property draws attention thanks to its pyramid-shaped
Other advantages the hotel has include being close to the airport and the main and elegant shopping malls in Cancun, as well as its bars and discotheques area, water parks and natural attractions.
Mynor Espinoza, General Manager at Paradisus Cancun.
Mynor Espinoza, a Costa Rican, has been working in the hotel industry for more than 20 years, most of them for Meliá Hotels International. Espinoza graduated in Business Administration with an expertise in Finance and Banking. Espinoza has received, thanks design, as well as for its wide indoor spaces, making it an iconic place in the area.
“Paradisus Cancun is nowadays one of the backbones within Meliá Hotels International’s structure”, commented
“Paradisus Cancun is nowadays one of the backbones within Meliá Hotels International’s structure”
- Mynor Espinoza, General Manager at Paradisus Cancun
to his career in the hotel sector, different recognitions in international symposiums, in which he has also been a speaker, besides being recognized by Forbes Argentina.
“Every corner of the hotel is designed for the guests, we are prepared to create EXPERIENCES through the property, the high service standards,
the food offer, and human warmth”, the manager pointed out.
The architectonical concept of Paradisus Cancun was conceived to establish a connection among iconic sites in the Yucatan peninsula and
the Mexican Caribbean, such as the pyramids ̶ seen in its outer design ̶ and indoors, packed with vegetation and water flows, imitating the “cenote” natural wells in the main lobbies.
The private swimming pools, wide beach areas, a wide variety of bars and restaurants, specialized spaces with sea sights and indoor fitness activities, as well as events halls, glamping areas and a festive atmosphere with guest DJs are the most renowned attractions at Paradisus Cancun.
The property has 773 rooms distributed among five buildings, with the finest views to the Caribbean and the Nichupte Lagoon. Twelve restaurants and bars provide the guests with a wide food offer and mixology.
The hotel has areas with activities for kids, besides offering customized services at the YHI Spa and other areas devoted to health and wellness, whereas the Kanna beach club can be visited by guests from other hotels.
In addition to the standardization of new health measures to protect guests, staff and suppliers, the reopening after the first months of the COVID-19 pandemic has also meant a renovation period for Paradisus Cancun, as some refurbishments have been carried
out mainly in common areas and restaurants, followed by the remodeling of rooms and areas dedicated to the Groups and Conventions segment.
The hotel’s VIP area ̶ The Reserve, which is a reference point in specialized services within Meliá’s Paradisus line ̶ will also be subject to different alterations which will optimize its
operation and, thus, will improve the guests’ stay.
Operating with the support of a multinational which is a leader in the hotel industry allows Paradisus Cancun to work with a series of standards
established in accordance with its brand.
As a reward, the business unit form Paradisus Cancun contributes greatly to Meliá Hotels International, being one of the five hotels with a better EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) in the overall operation of the company.
“Every corner of the hotel is designed for the guests”
-
Mynor Espinoza, Gerente General de Paradisus Cancun
For that reason, the hotel is currently focused on reinforcing its inner bookings channels.
In order to keep a low rotation rate, something normally high in the hotel
industry, Paradisus Cancun focuses its attention on the human resources, which are duly cared for, favoring not only the workforce’s loyalty to the company, but also creating an atmosphere where the service and attention stand out alongside the
www.melia.com/en mynor.espinoza@melia.com
“We are prepared to create EXPERIENCES through the property, the high service standards, the food offer, and human warmth”
- Mynor
Espinoza, General Manager at Paradisus Cancun
amenities the hotel offers.
Paradisus Cancun has created the “Feel Good” program, whose three main principles are:
• Health, focused mainly on a staff’s healthy diet
• The fitness aspect, through the creation of events to motivate exercising
• Emotional connection, through which the management establishes closeness with collaborators and their families.
The recovery of tourism at a worldwide level after the pandemic has helped the sector and Paradisus Cancun has taken advantage of it to carry out changes which will allow it to offer a better experience for its guests.
Without a doubt, the property has both material and human attributes to become a benchmark in this important market in the Mexican Caribbean.
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is taking giant steps towards sustainable growth through well-developed strategies and its staff’s talent in different territories
Interviewee
Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo
Produced by Jassen Pintado
Art Direction Omar Rodríguez
The Bimbo group was created in Mexico in 1945 and is currently the best-known Mexican food brand worldwide. Its expansion within the Americas began during the 1980s as the brand began exporting to the United States and Central America, later venturing into South America during the 1990s.
Overseas, Bimbo first ventured into Spain when Mr. Jaime Jorba, one of the brand’s founders in Mexico, returned to his home country.
Bimbo Iberia was born from Bimbo’s operations in Spain and Portugal, working on its own until 2016. Its evolution continued in 2019, when Gabino Gómez, CEO for Bimbo, pushed for the creation of an organization similar to the one he leads from Mexico -which supports the company’s operations in the United States and Latin America-, also incorporating Bimbo UK, China and the brand’s assets in India and Morocco,
thus becoming Bimbo.
“Bimbo was pretty set in the Americas and decided to grow in the continents where it lacked presence: Europe, Asia and Africa,” commented Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo.
Javier Cabeza is near completion of his second decade of work for Bimbo, which means he was also part of the Bimbo company in Spain before being acquired by the Mexican business group in 2011.
Cabeza earned Bachelor degrees in
Business Engineering and Chemistry Engineering at the Technical University of Catalonia (in Barcelona, Spain). He also earned an MBA from the IESE Business School (also in Barcelona). Among postgraduate studies, Cabeza obtained a Certificate as a Breadmaking Technologist from the American Institute of Baking and a Leadership program from the Harvard Business School.
Before joining Bimbo at 22, Cabeza worked for Synthesia Technology, a Spain-based leader in polyurethane solutions, and also for the Benetton clothing brand. Once in Bimbo, Cabeza has practically experienced every area
“The company’s a heavyweight in Europe for its business in Spain, Portugal and now in Asia”
Javier
Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo
in the company from operations to technical positions. The deployment of lean manufacturing systems and continuous improvement processes highlight his tenure in the company. Besides his outstanding work in Spain, Bimbo also took Cabeza to Belgium, the United States and Netherlands, until being in charge of, probably, the most diverse of Grupo Bimbo’s operations, globally.
“I wanted to become part of an enterprise so big as to not know in which part of the world I would find myself the next day, and that’s why I like Bimbo a lot,” the executive declared.
Bimbo’s endeavors in Europe, Africa and Asia encompass 32 facilities -used both as corporate offices and as storage facilities-, involved in the production of 15 brands, operated by
approximately 16,000 workers serving more than 200,000 clients.
Bimbo’s UK business was added to the operations performed from Bimbo Iberia towards all of Europe.
The UK branch’s business consisted mainly of bagel and croissant bread.
In Africa, Bimbo arrived in Morocco by acquiring a small company, growing its presence from the initial four production facilities and also expanding its product portfolio.
“The company’s a heavyweight in Europe for its business in Spain, Portugal and now in Asia,” said Cabeza, who is familiar with the highly competitive European market which, sooner or later, ventures into Latin America.
Positioning Bimbo EAA as this clockwork operation able to replicate the model and reach of its parent company overseas is a very complex
Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo
task which requires aligned strategies such as:
• Inorganic growth. The group acquired companies in Spain, India, Morocco and the UK, which have resulted in a longer reach and a strengthened portfolio within the food market.
• Managerial structures deployment. These offer detail into the business alignment level obtained, and they also measure efficiency, capabilities, business contribution and adaptability.
• Investment in production capacity. This has implied great investments in every country, contributing to each territory’s growth.
• Implementation of Lean Manufacturing. This improvement system has been able to detect all contributing and non-contributing elements in bringing value to clients.
• Quality-focused operations. Quality has become the determining factor even for decision-making, from being a tactic to become a strategic factor. No matter how favorable aspects such as costs and revenue become, no decision is made if it affects the products’ quality.
• Talent detection and positioning. One of the most important strategies is getting to know the talent’s capabilities in every country, enabling them to develop the roles each territory requires, matching capable individuals with the tasks necessary to different countries, as well as to develop the company’s talent or sourcing enabled staff to fulfill areas in need.
“We do make a great difference by relying on staff from China, India, Morocco, Portugal, Spain and the UK, such variety provides a big contribution,” the vice-president pointed out.
“We want to keep being a force in innovation. In every country we must fulfill the group’s philosophy: Feed better world”
Javier
Cabeza,
Vice-president
of Operations in Europe, Africa and Asia for Grupo Bimbo
Bimbo EAA makes the most from resources provided by Grupo Bimbo, especially those involving knowledge and products, as well as personnel, experience and contact with tech and raw materials suppliers, considering Bimbo has become the largest bakery company worldwide.
This network support has been key to take solid steps in relatively new territories such as India or Morocco.
“Grupo Bimbo is always at the top of our list, providing us with influence and knowledge,” Cabeza remarked.
An enterprise the size of Bimbo EAA
couldn’t be exempted from adapting to the consequences of the COVID-19 pandemic, deploying timely measures preventing the disease internally, reducing its spread to zero.
However, the company is aware that changes didn’t take place only within different companies, but also in consumer habits, becoming more conscious regarding the nutritional
value of products, plastic packaging and other trends previously detected, which simply took off as the pandemic began, such as online retail, to name one.
“We’ve learned to become more open, faster, to make the most out of business opportunities, to become leaner toward decision-making,” the executive said.
Taking Grupo Bimbo toward sustainable operations is a top priority, globally.
Up until now, Europe has been the ideal ground to reach different goals, considering the territory’s regulations, policies and culture, which allow for significant advance in purposes such as bringing CO2 emissions to net zero by 2050 and other intermediate goals related to the use of plastics in packaging, among other things. In countries such as Spain, Bimbo’s vehicle fleet boasts 20% of electric vehicles, an amount that will undoubtedly grow in the short term also in other countries. In Mexico, Bimbo has the largest electric vehicle fleets in Latin America.
The company offers different recyclable options for plastic packaging, including biodegradable solutions such as D2W. Also, Bimbo,
globally, has experienced progress in solar power.
In Europe, Bimbo is involved -along other brands, clients and distributorswith the Marcas Waste Warrior association, whose purpose is to eliminate food waste. The association created the Too Good To Go campaign, in which different brands offer attractive food packages near their expiration date at very low prices with the purpose of feeding more people instead of wasting food, aligning the company to reduce food waste in 50% in respect with their 2016 figures.
“Sustainability is one of the group’s strategies. These goals must be accomplished, it’s fundamental to our group, there are no excuses for unfulfillment,” Cabeza expressed.
If there’s a word describing the
“Sustainability is one of the group’s strategies. It’s fundamental to our group”
Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo
future purposes of Bimbo EAA, it is undoubtedly “growth”. Asian territory is poised to become the grounds for such a purpose, specifically in India, where the company’s challenge is to reach more population.
In Africa, on its behalf, growth purposes also persist, but not in the short term. The market is evolving and it is very important to remain aware of its development.
The operation in Europe is consolidated, but the plan is to keep strengthening the company’s finances and enter categories yet to be explored by Bimbo.
Along with the brand’s efforts overseas, the company improves the fulfillment of its purpose to contribute to a better world by providing quality foods to a quantity of people that keeps growing.
“We want to keep being a force in innovation. In every country we must
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Produced
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Written
by
Mateo Rafael Tablado
Art direction Omar Rodríguez
Interviewee
Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev
Alignment with best practices and global standards contribute to surpass different challenges faced across the territory, enabling a sustainable operation in brewing, completely invested in its surrounding communities
The origins of ABInBev in Africa go back to 1895, when the Castle Brewery was created by founder brewer Charles Glass in Johannesburg, South Africa (RSA). It only took two years before the company was listed on the Johannesburg stock exchange.
In 1950, the brewery’s corporate headquarters were moved from London to Johannesburg, with the purpose of achieving growth and expansion. Five years later, the Ohlsson’s and Chandler breweries were acquired by Castle, renaming the group as South African Breweries (SAB) EXPANSION ACROSS
Besides arriving in Zimbabwe soon after, the most prominent expansion era for SAB took place during the
late 1990s, as the company grew into Mozambique, Tanzania and Zambia through different ventures.
After acquiring SABMiller in September 2016, ABInBev brought along global brands Budweiser, Corona and Stella Artois, now popular on the entire continent.
“ABInBev Africa represents one of the shining lights within ABInBev, globally. There are so many achievements to be proud of”, stated Fernando Figiacone, Vice President of Supply in Africa for ABInBev.
ABInBev’s operations in Africa take place across eleven countries through three main territorial business units:
• The West territory encompasses Ghana and Nigeria. Focus brands in this area include Club, Hero, Trophy and Budweiser beers.
ABInBev Africa represents one of the shining lights within ABInBev, globally.
There are so many achievements to be proud
of
- Fernando Figiacone, Vice President of Supply in Africa for ABInBev
• Botswana, Mozambique, Tanzania, Zambia and Uganda belong to the Southeast unit. Main brands in this territory include Kilimanjaro, Mosi, 2M, St Louis and Club.
• The South territory is formed by Eswatini, Lesotho, Namibia and South Africa. Brutal Fruit, Budweiser, Carling Black Label, Castle Lager, Castle Lite, Corona, Flying Fish (who recently created a flavored spritzer), Stella
Artois and Hansa are the key brands in the South.
In South Africa alone, the company provides 7,000 jobs, supporting a beer value chain from seed to sip of more than 250,000 individuals and ultimately contributing to over 1, 000, 000 livelihoods. With raw materials sourced from more than 1,200 farmers, SAB is able to produce a 30 million hL volume, exporting 14
brands into 28 different countries across Africa, besides exporting to countries in different continents.
Boosted by new breweries opened in Mozambique and Nigeria during the last three years, in 2021 the company reached a 50 million hL production across the continent.
Recent investments include a stateof-the-art malting facility in Zambia, and also investment in a takeover of a glass manufacturing facility in South Africa, securing supplies for bottle production.
In the wake of economic uncertainty and the need for recovery, SAB recently reaffirmed its commitment to ignite the South African economy as it pledges to invest to R4.5bn – adding impact to an industry that already contributes 1.3% of the national GDP
During 2018, the brewery launched Brutal Fruit Ruby Apple Spritzer, which became the largest selling
We ended a strong 2021 with growth. We will continue to push for the same performance going forward
- Fernando Figiacone, Vice President of Supply in Africa for ABInBev
innovation ever in the continent, growing total brand volume by 40% and driving double-digit growth.
“We ended a strong 2021 with growth in volume, revenue and EBITDA. We will continue to push for the same performance going forward,” the executive said.
Fernando Figiacone graduated from the Catholic University of Argentina as an Industrial Engineer. Figiacone also earned a postgraduate degree in Food & Beverage Marketing from the University of Belgrano (Argentina) and a Master in Company from the University of San Andrés (also in Argentina).
Other postgraduate studies taken by Figiacone include Supply Chain Training in MIT (Massachusetts Institute of Technology), Stanford
University and Darden University, all of these as part of ABInBev between 2015 and 2021.
Operations in Africa bring along different challenges due to the infrastructure in some countries, as well as other factors such as commodity fluctuations and worsening currency exchange rates. To these common situations, the COVID-19 pandemic brought additional burdens to logistics and lead times.
“These are part of the challenges faced, but they are also what excites us and drives us to perform,” Figiacone explained.
The strong management systems in place across ABInBev Africa bring the company to the same level as all zones, globally. Constant training, adoption of best practices and KPI
As part of the historic merger conditions when ABInBev purchased SAB Miller, SAB committed to invest R1billion ($70m) into SA economy by the end of 2021 in three key areas of investment spend: Agricultural Development, Enterprise and Supplier Development, and Societal Upliftment initiatives.
Efforts have been consistent, as in the last five years the company invested more than $93.5 million in procurement with Black-owned
From 2017 to 2021, investments of more than $13 million have helped agricultural development programs. The company’s commitment to enterprise and supplier development, local procurement and local businesses has allowed for the creation of programs such as the SAB Thrive Fund, not only becoming tracking has enhanced its leadership, increasing autonomy across every team and successfully achieving benchmark levels. Notable areas which have become optimized include logistics, supply and the development of a returnable glass bottle system, among others.
businesses. Also, 95% of procurement is spent through suppliers with significant ratings in respect to local business empowerment.
In 2020 alone, the company invested nearly $6.6 million and $5 million in Supplier and Enterprise Development Initiatives, respectively.
These programs have enabled the company to help develop and train nearly 1,000 emerging farmers, increasing the local barley, hops and corn production feeding the supply chain.
The challenges faced are also what drives us to perform
- Fernando Figiacone, Vice President of Supply in Africa for ABInBev
a transformation factor within the company’s supply chain, but also providing much-needed jobs in local communities.
GLOBAL SUPPORT AND CONTINENTAL COMPLIANCE WITH STANDARDS
Support from ABInBev through global programs contribute to increasing efficiency in the three business units forming ABInBev Africa. The Voyager Plant Optimization program deploys best practices and standardization of operations. The program evolves continuously, improving and certifying every process, leading to a safe, sustainable operation of every production plant.
Also, the Africa zone head office,
based in South Africa, oversees every business unit, playing an essential role of support regarding supply, logistics, procurement, finance and people management.
“We have been able to optimize our operations despite operating in hugely challenging environments,” said the executive.
Personnel working at ABInBev Africa develop unique skills after undergoing demanding training. The company can easily state that its staff is comprised of some of Africa’s finest, most brilliant individuals, whose sense of commitment and ownership drives them towards delivering excellence in execution despite any challenges
faced. Hence, the company strives to maintain a low turnover rate.
Along its tenure operating in Africa, ABInBev has found out that, as there are many resources that may seem to provide an infinite supply of ingredients for brewing, the reality is that these coveted commodities must be managed wisely to ensure their availability for time to come.
One of the areas which has improved noticeably within the company’s drive to sustainability set to 2025 is the efficient management of
from the municipality. The company set the goal of improving conditions with possible solutions to water restrictions challenging communities in Mozambique and Namibia.
On a related matter, the company has set a goal for 2025 to use 100% of returnable or recycled packaging. In Ghana and Nigeria possible solutions are being tested to increase recycled water resources, as during the last five years water usage has been reduced by 20%. The company, partnering with organizations such as the World Wildlife Fund has improved conditions of water availability in communities across the continent where it operates. One of the successful efforts is the borehole dug for the Caledon Maltings facility, reducing demand
content in PET. Tanzania is already experiencing PET-less bottling with brands such as Grand Malt being packaged in recyclable cans.
On its behalf, the Zambia branch created the Manja Pamodzi project, aimed to improve sanitation and hygiene through waste collection. The 815 collector program boasts 76% women, adding more than 14,000
tons of waste collected. Meanwhile, in South Africa, the EPR (Extended Producer Responsibility) program will allow an efficient management of single use and returnable products, thus implementing circular economy initiatives within communities.
Regarding the energy used to brew and bottle ABInBev products, the company set the goal of obtaining
100% of electricity from renewable sources, and enforcing a 25% reduction of carbon dioxide emissions across its value chain. This feat seems to be approached on time, as the seven Castle Lite breweries in South Africa already operate with solar power, and only in 2021 these generated more than
14 GWh of electric power, reducing CO2 emissions by 12,443 tons. And in Johannesburg, the Alrode brewery is powered by bio-gas.
These results have prompted ABInBev into announcing the global goal of achieving net zero emissions across its value chain by 2040.
“Sustainable development is a massive focus for our business as it is for many other businesses,” Figiacone remarked.
ABInBev Africa has a ten-year plan in place to increase its capacity in different countries through different flexible projects. The goal for 2022 is reaching 500,000 hL of product exported across Africa.
“Our mission is to support Africa’s growth, by producing the best African Beers with pride, through a highly engaged team, improving performance year over year. The focus is to further improve our performance reaching a very high utilization of our assets, and enabling our expansion capacity to support our zone and global growth strategy,” finalized Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev.
www.ab-inbev.com fernando.Figiacone@za.ab-inbev.com
luxury Grand lodging in the Mexican Caribbean
Grand Park Royal Cozumel takes its brand’s attributes guaranteeing an unforgettable stay at the delightful island in the Mexican Caribbean
Written by Mateo Rafael Tablado
Produced by Jassen Pintado
Javier Colorado, Grand Park Royal Cozumel General Manager
For more than 30 years, the Mexican chain Park
Royal Hotels & Resorts has served as a host for millions of guests who have visited its properties with different plans, be them family vacations, a romantic getaway, a honeymoon or even for special events such as weddings, work meetings and conventions.
Nowadays, the chain operates 14 properties among Argentina, Mexico, Puerto Rico and the U.S., offering four brands differentiated according to defined segments:
• Park Royal Beach Resorts: perfect for family vacations at the best beaches in Mexico.
• Park Royal City: urban hotels in places such as Buenos Aires, Miami and Orlando.
• Park Royal Homestay: hotels with
a cozy touch, but with the service and attention featured by Park Royal Hotels & Resorts.
• Grand Park Royal Luxury Resorts: deluxe brand with properties in Mexico
iconic beach destinations such as Cancun, Cozumel and Puerto Vallarta.
“Our four brands provide a unique experience for each guest”, commented Javier Colorado, General Manager for Grand Park Royal Cozumel.
Javier Colorado earned his Degree in Tourism from the César Ritz Tourism and Hotel Industry College (COSUTH, for its Spanish acronym) in Ciudad de Mexico.
Three decades of working experience have taken him to Bahamas, Curaçao, the Dominican Republic, Dubai (United Arab
Emirates), El Salvador, Kuwait, Panama, and Venezuela, besides Mexico, serving as a General Manager at four different posts before being hired by Grand Park Royal Cozumel.
His work in the Middle East earned him recognitions such as –for two consecutive years- ranking number one in Guest Service Satisfaction in
the Middle East/Africa region within JW Marriott, and world’s number two, among more than 500 hotels operated by the brand. In this side of the world, during his tenure in Venezuela he also ranked number one in Guest Service
Satisfaction in the Americas.
Currently, besides placing Grand Park Royal Cozumel in the
“Our four brands provide a unique experience for each guest”
- Javier Colorado, General Manager for Grand Park Royal Cozumel
first position for guest service satisfaction in social media in the island of Cozumel and number two in the company, Javier is doing a Business Administration Master focused on Marketing.
GRAND PARK ROYAL LUXURY
RESORTS: ALL-INCLUSIVE TO THE MAX
The Grand Park Royal Luxury Resorts line, which Grand Park Royal Cozumel
belongs to, gathers a series of attributes such as its beach areas and sea sights, entertainment for families and night fun for couples, water sports, quality drinks options and food menu including local dishes and specialties, as well as international meals, 24-hour roomservice, attractive pools -even of the infinity edge kind- and facilities for the celebration of special events.
“We are centered on creating unforgettable experiences through a custom-made service”, the executive commented.
Grand Park Royal Cozumel has been part of the Park Royal Hotels & Resorts since September 2000. Its architecture has been awarded internationally and it is one of the best hotels in Cozumel.
Its 342 luxury rooms make it the
largest hotel on the island, with sights both to the sea as well as to the nature offered by Cozumel, in the crystal-clear and beautiful waters of the Caribbean. The property has a privileged location, close to downtown, the port and shopping malls.
The competent staff in charge of operating Grand Park Royal Cozumel is prepared to provide a stay with all the comforts which this chain provides, regarding food, drinks, entertainment, room-service and activities for children in its water park.
Among other prominent attractions, the hotel has:
• 3 pools and 2 jacuzzies with Balinese beds in the area.
• Buffet restaurant with themed nights and other three restaurants with Italian, Caribbean and Mexican cuisine specialties.
• 5 bars and 2 snack bars.
• Cafeteria and ice-cream parlor.
• Sports bar.
• Gym and spa.
• Free wi-fi.
Grand Park Royal Cozumel is one of the five resorts which generate larger revenues to the hotel chain, attracting both domestic and international tourism.
“Our resort is five-star, with a modern style, but with an approach to the regional culture which will allow
you to experience the enthralling island of Cozumel”, declares Javier Colorado.
ATTRACTIONS IN THE SURROUNDINGS WITHOUT LEAVING THE ISLAND
Once in Grand Park Royal Cozumel, it is tempting to stay in the hotel the whole time and enjoy the amenities it offers to the fullest. However,
Cozumel has got attractions which are worthy to be known firsthand. Besides the San Miguel de Cozumel colonial downtown area -with restaurants, craftwork shops and night clubs-, the San Gervasio archeological area is another attraction created by man along with the cruise dock, making of this island an interesting stop for the tours around the Caribbean. On its behalf, the Chankanaab Park (located
inside the Reefs National Park) has a beautiful beach where to swim underwater and even practice with snorkel.
Among other attractions, one can choose to go for a walk around El Cedral town, swim and scuba dive at El Cielo beach, as well as visit an eco-tourism attraction: Lighthouse Ceralain Park and its ecological reserve.
The management of human resources in Gran Park Royal Cozumel does not leave behind any single aspect regarding its staff’s training, work environment and incentives for a better performance.
The induction training course succeeds in taking each collaborator inside the company, creating a sense of belonging when sharing different values.
The excellent performance of the hotel’s collaborators is recognized through the bimonthly “Premia by Park Royal Hotels & Resorts” program. And, beyond training which enhances their abilities, the workers are also included in ‘mindfulness’ programs, with health and well-being routines and dynamics.
Self-care programs such as “If
you take care of yourself, we all take care of ourselves” and the health campaigns give continuity to that comfort the company addresses to its workers, besides social activities and festivities such as “Child’s Day”, for the workers’ children, and even the “Chambermaid’s Day”, among other events.
“Our collaborators’ well-being is our mission”, commented the General Manager.
“COACHES 30D” PROGRAM
To make sure that the new personnel get a complete certification in their post during their first month at the hotel, the company assigns a more experienced collaborator to support a recently hired worker, making it easy for the latter to be successful in getting the induction training course and the Essential Services
“Our resort is five-star, with a modern style, but with an approach to the regional culture which will allow you to experience the enthralling island of Cozumel”
- Javier Colorado, General Manager for Grand Park Royal Cozumel
Certification accredited.
“The program’s purpose is to form a guiding team that accompanies and trains the new personnel during their first 30 days”, explained Colorado.
As a consequence of the COVID-19 pandemic, Park Royal Hotels &
Resorts created the Safe Guest Program®, certified by Cristal International Standards®, which periodically inspects and ensures guests, suppliers and hotel staff find themselves in virus and infection-free areas both indoors and in outdoor spaces -including swimming pools-, besides certifying food, beverage and water management systems.
Main measures such as sanitizing gel stations in every area, safe distance signaling, cleaning and sanitizing with ECOLAB® products, as well as other resources such as
QR codes to avoid surface contact as much as possible, among others, are already a standard in every Park Royal Hotels & Resorts property.
After two years of restrictions that turned out to be the worst crisis in the hotel industry, the predictions for the first half of 2022 are certainly optimistic after having registered positive aspects which foretell a slow recovery able to improve what was achieved during 2021.
“Our guests have been recovering the confidence to stay overnight in different destinations and also internationally and thus finally enjoy a deserved holiday, so we keep ourselves optimistic with a view to 2022”, concluded Javier Colorado, General Manager for Grand Park Royal Cozumel.
FOUNDED:
Propiedad de Park Royal Hotels & Resorts desde el 2000
INDUSTRY:
CONTACT:
javiercolorado@park-royalhotels.com
Hitachi Energy achieves fossil free electricity in own operations 100%
The global technology and market leader in power grids has achieved the first-step target in its Sustainability 2030 plan and steps up the pace towards carbon-neutral
Hitachi Energy , today announced that it has achieved the first-step target set out in its Sustainability 2030 plan – the use of 100% fossilfree electricity in its own operations1. The company is driving towards being carbon-neutral in its own operations by 2030 2, in line with its Purpose, ‘Advancing a sustainable energy future for all’.
“By achieving 100% fossil-free electricity in our own operations, we have reduced our CO 2 equivalent emissions by over 50% compared to 2019,” says Claudio Facchin, CEO of Hitachi Energy. He continued,
“The Net Zero challenge is global and it’s about acting now, innovating and collaborating across countries, industries and societies. Together
Notes:
1. The contract for its South Korea operations (equivalent to 0.4% total electricity usage) is expected to be signed in April 2022 retrospectively through green tariffs.
2. Discover more about Hitachi Energy’s approach to Sustainability 2030 here
By achieving 100% fossil-free electricity in our own operations, we have reduced our CO2 equivalent emissions by over 50% compared to 2019
- Claudio Facchin, CEO at Hitachi Energy
with customers, partners, and all stakeholders, we are advancing the world’s energy system to be more sustainable, flexible and secure.”
The targeted 50% reduction achieved ahead of plan will amount to approximately 175 kilo tonnes of CO2e per year, equivalent to removing over 35,000 passenger cars off the road.
To achieve 100% fossil-free electricity in its own operations –and in support of the Hitachi Group’s carbon-neutrality goal3 – the company has pursued a number of pathways including supporting projects to generate its own fossil-free electricity, such as installing solar roof panels combined with e-meshTM digital solutions for distributed energy resources maximizing energy efficiency and minimizing CO2
emissions. In its Zhongshan factory in China , the company is generating nearly 20% of its total energy consumption from solar panels. In its first year of operation, the power
Notes:
generated at the factory is expected to reach 1,510 megawatt hours (MWh), contributing to the reduction in annual carbon emissions by more than 1,000 tonnes.
To achieve 100% fossil-free electricity, Hitachi Energy has also
switched to green tariffs, bought Energy Attribute Certificates (EACs), and signed Power Purchase Agreements (PPAs) across its operations and facilities in 90 countries.
Looking ahead, Hitachi Energy is
continuing to invest in its journey towards carbon-neutrality by further increasing energy efficiency, as well as electrifying its own operations. In Ludvika, Sweden, the company is now using 100% renewable electricity generated from hydropower and from solar panels to support its operations. Ludvika, which is one of Hitachi Energy’s largest production facilities, has gone beyond tackling its electricity supply and is now close to removing the use of all fossil fuels from the whole of its operations. The company has a track record of implementing its own technologies in its operations to enable the integration of renewable energy. For example, in 2015 its South Africa operations installed a 750 kW rooftop photovoltaic plant and a 1 MVA/380 kWh battery-based PowerStoreTM for enhancing the use of renewables
and providing a continuous supply of power.
Through its Sustainability 2030 plan and targets, the company reinforces its commitment to accelerating actions driving business in a sustainable way. Based around four pillars – Planet, People, Peace, and Partnerships – the strategy draws from the UN’s Sustainable Development Goals (SDGs), with specific focus on the following eight: Good health and well-being, Quality education, Gender equality, Clean water and sanitation, Affordable and clean energy, Responsible consumption and production, Peace, justice and strong institutions; and Partnerships for the Goals. In line with these SDGs, each pillar has corresponding targets that drive the business to contribute social, environmental, and economic value.
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We serve customers in the utility, industry and infrastructure sectors with innovative solutions and services across the value chain. Together with customers and partners, we pioneer technologies and enable the digital transformation required to accelerate the energy transition towards a carbonneutral future. We are advancing the
world’s energy system to become more sustainable, flexible and secure whilst balancing social, environmental and economic value. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries. Headquartered in Switzerland, we employ around 38,000 people in 90 countries and generate business volumes of approximately $10 billion USD.
