Business Model Case Studies

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Business Model Case Studies

Business methods, models, and supply chains for Nutella, Blue Diamond Growers, Cargill, and Fresh Del Monte Produce Inc provide a variety of approaches to operating businesses in the agriculture sector.

Nutella (Ferraro Group) Business Methods and Models

Founding of Ferraro Businesses
  • The Ferraro Company was founded on May 14, 1946, in Italy, by Pietro Ferraro. Pietro created a sweet from hazelnuts, sugar, and cocoa and sold it in small loaves that could be sliced and applied to bread. He called his product Giandujot.
  • In 1951, the product was changed into a spread and renamed SuperCrema. In 1964, Pietro's son Giovanni altered the recipe and renamed the product Nutella.
  • In 1965, Nutella was introduced to Germany; in 1966 to France and the rest of Europe. In 1978, Nutella came to Australia. Today, it is sold in more than 170 countries.
Expansion of Ferraro Businesses
  • The Ferraro Hazelnut Company was established in 2015 to acquire and distribute the hazelnuts that are used to make Ferraro products in its 25 manufacturing plants around the world.
  • The Ferraro Hazelnut Company "brings together under one structure only all the hazelnut supply chain activities: Ferraro... agri farms, hazelnut outgrowing development, agronomic research and development, sourcing, industrial transformation, and sale of semi-finished and finished products hazelnut-based."
  • Ferraro introduced a new product, "a cherry-liquor-filled chocolate called Mon Chéri," in Germany in 1956. In 1956. Other new products were introduced as the years went by: "the Kinder line in 1968, Tic Tac in 1969, Ferrero Rocher pralines in 1982."
  • Ferraro Company had become a billion dollar firm by 1986, when "annual sales reached 926 billion lira, about $1.5 billion in current dollars."
Acquisition of Other Companies
  • When Giovanni Ferraro took over the company after his father's death in 2011, he began buying other companies. He acquired Thorntons, a British Chocolatier, in 2015. "He next bought U.S. candy makers Fannie May ($115 million in May 2017) and Ferrara, maker of Red Hots and Trolli gummies (about $1.3 billion, in December). Finally, came the Nestlé deal, including its Crunch, Raisinets and LaffyTaffy labels, for $2.8 billion."
  • After buying Nestle, Ferraro became the world's third-largest confectioner, according to data from Euromonitor.
  • Giovanni proceeded to buy parts of Ferraro Company's supply chain. "A few years ago it purchased two of the world's biggest hazelnut traders, Oltan Group in Turkey and the Italian Stelliferi Group, and is further investing in plantations in Australia, the Balkans and South America in a bid to increase yields and availability throughout the year. Ferraro buys about a third of all hazelnuts and is now the world's largest hazelnut supplier."
Ferraro Group Supply Chain and Sustainability Goals
  • According to the Organization for Economic Cooperation and Development (OECD), Ferraro purchases its supplies from all over the world. Nutella consists of hazelnuts from Turkey; palm oil from Malaysia, Papua New Guinea and Brazil; cocoa from Ivory Coast, Ghana, Nigeria and Ecuador; sugar from Europe; and vanillin from the United States and Europe.
  • Ferraro Group is working to make its suppliers follow sustainable practices, according to its 2018 Corporate Responsibility Report (CSR). The report presents company goals as "100 percent cocoa certified as sustainable by 2020, 100 percent sustainable palm oil certified RSPO as segregated was reached in December 2014, 100 percent refined cane sugar from sustainable sources by 2020, traceability plan for 100 percent of hazelnuts by 2020, 100 percent of eggs from barn hens with respect for animal welfare was reached in September 2014 in EU plants and will be extended to a global level by 2025."
  • In energy and emissions, Ferraro Group goals include "self-produced electricity totaling 70 percent (instead of 75 percent) of electrical consumption of all European plants, of which 18 percent (instead of 25 percent) was from renewable sources was partially met in September 2014; 40 percent reduction of CO2 emissions from production activities (compared to 2007) by 2020; 30 percent reduction of greenhouse gas emissions (tons of CO2eq) from transport and storage activities (compared to 2009) by 2020; use of packaging made from renewable sources (+10 percent compared to 2009) by 2020, and all packaging 100 percent reusable or recyclable or compostable by 2025.

Blue Diamond Almonds Business Methods and Models

Founding of Blue Diamond and Its Brands
  • Blue Diamond Growers is a nonprofit, grower-owned cooperative business based in Sacramento, CA. It was founded in 1910 "as a processing and marketing co-op for California almond growers." Today, 3,500 of California's 6,000 almond growers bring their product to the Blue Diamond 96-acre processing facility."
  • "The California almond crop is valued at over $1 billion annually. They are the largest food export from California."
  • Blue Diamond Growers has two main brands: (1) Whole almond and almond related products, and (2) Almond Breeze Almond Milk. The company has focused solely on California almonds and almond products since 1910.
Processing Facilities
  • At first, the company only had buildings that received almonds. The almonds were sent out to other locations for processing.
  • The company built and recently expanded its own processing facilities in California. "The processing facility ... produces exactly what the customer wants: raw, blanched, chopped, sliced, seasoned, diced, big, or little almonds. To keep the product fresh, ... there is enough cold storage for millions of pounds" of almonds.
  • Increasing sales led Blue Diamond Growers to expand its California facilities, putting up two new buildings in 2015. "The first expansion [was] a 52,000 square foot addition to the existing 200,000 square foot Turlock manufacturing plant that first opened in 2013 and sits on 88 acres." The new building expanded Blue Diamond’s "almond processing capabilities with an automated factory that features state-of-the art handling, processing and packaging equipment."
  • "The second expansion [was] the new Bulk 8 Warehouse at the Salida [CA] facility that ... opened as an almond receiving station in 1969. Today the 675,000 square foot facility sits on 44 acres.... The new 58,000 square foot bulk storage facility" will add "50 million pounds of in-house bulk almond storage capacity"....The building was completed in 2019.
International Marketing and Product Line Expansion
  • Since 2010, Blue Diamond has engaged in aggressive international marketing and new product development. In 2012, the CEO announced that almond sales had reached $1 billion.
  • A 2016 report to growers said, "Blue Diamond is a marketing co-op. Our business is almond demand generation. In the last five years we have tripled our advertising expenditures, continued to innovate new almond products, opened 45 international markets to our consumer brand and achieved two-thirds of our revenues through value-added products."
  • In the 2019 annual report to growers, the company said "In 2019, Blue Diamond launched 20 new products with the intent of reaching emerging key markets and providing consumers worldwide with new almond product offerings. Our ability to develop unique uses for every variety of almond and expand almond capabilities into previously unexplored categories positions us as the innovation leader in the industry."
  • One of the new 2019 products was a line of trail mixes of almonds and fruit.
  • The 2019 annual report also stated that the company "introduced Almond Breeze to consumers in Mexico and the Middle East, just to name a few, and launched three new products across Japan and Thailand." The company reported net sales of $1,565,743 on August 30, 2019, which showed no change from 2018 net sales.

Cargill's Founding, Business Model, and Supply Chain

Founding and First 130Years
  • The founder, William Wallace Cargill, "began his career in the grain business in 1865 in Conover, Iowa." In 1875 William Cargill moved his headquarters to La Crosse, Wisconsin. He and three of his brothers formed several different partnerships in the upper Midwest. In 1882 William's three brothers sold him their Red River Valley grain elevators. In "1888, James, William, and Sam Cargill formed Cargill Brothers. In 1890 this firm became the Cargill Elevator Company, headquartered in Minneapolis, Minnesota."
  • Over the next 100 years, the company expanded in many directions and all over the world. "...[B]y the early 1990s Cargill had become one of the largest diversified services companies in the country. In addition to merchandising grains and oilseeds, Cargill operates as a transporter of commodities; a supplier of feed, seed, fertilizer, and other products to agricultural producers; a processor of food ingredients (such as corn syrup and flour) and of brand name products (such as meat and poultry products); an industrial producer of steel, salt, and other products; and a financial and technical services provider."
  • Cargill is still largely owned by family descendants.
Growth since 1990
  • By 1990, in addition to grain, feed, seeds, oilseeds and corn milling, Cargill's businesses included "chemicals, cocoa, coffee, cotton, eggs, fertilizer, financial services, flour, juices, malt, meat, molasses, peanuts, petroleum, pork, poultry, rubber, salt, steel, turkey and wool."
  • In 1999, Cargill revised its business structure, "reorganizing its traditional divisions into 102 business units focused on its customers, innovation and performance."
  • Cargill's 2017 revenue of $107.20 billion makes it "the largest private company in the US in terms of revenue and... the largest agricultural compan[y] by revenue in the world. It specializes in trading, purchasing and distributing grain and other agricultural products. [It] ... has a variety of operations, including... energy, steel and transport. Cargill’s agricultural business involves the raising of livestock, producing feed, and food ingredients. It also has a large financial services firm that hedges its risks in the commodities markets. Cargill is a family-owned company and is responsible for 22 percent of the US domestic meat market and 25 percent of US grain exports."
Business Model and Supply Chain
  • Cargill serves a broad range of customers across its operating sectors. The company’s customers typically operate in one or more of the following sectors: Farming and Agriculture, Foodservice, Retail and Consumer, and Industrial.
  • "Cargill has operations across the Americas, Asia Pacific, Europe, Africa, and the Middle East. The company’s largest market is North America, which accounts for around 35 percent of its revenue, followed by Asia Pacific, which accounts for around 29 percent, and Europe, the Middle East and Africa, which accounts for 25 percent."
  • "Cargill provides value to its customers in the following ways: (1) brand recognition and reputation, (2) broad portfolio of products and services, (3) expertise and experience, (4) provision of industry insights, (5) global operations and reach."
  • "Cargill seeks to establish longstanding relationships with its clients by providing high-quality, reliable, and efficient services its operating segments. The company works closely with its customer, offering sales and service contracts that are tailored to their individual needs. The company employs teams of customer service and relationship management personnel that ensure that its customers are served quickly and efficiently. It is through this effective service the quality of its products that the company attracts recurring business."
  • Cargill assures control of its supply chains by acquiring businesses and services that cover all aspects of its operating segments. For example, it sells seeds to the farmer, buys his harvested products, stores them in its grain elevators, distributes them through its railroads and trucks, processes them in its food facilities, and delivers them to warehouses for sale to customers.

Fresh Del Monte Produce Inc Founding, Supply Chain, and Business Plan

Founding and Early Years
  • In 1886, the Del Monte name was first used on a food product. Del Monte coffee was the product designed as a premium blend of coffee for the Hotel Del Monte in Monterey, California.
  • In 1892, the Del Monte® Brand was introduced as the brand name for a new line of California canned peaches. The peaches were one of the products created by a cannery called Oakland Preserving Company. Efforts to consolidate the many canners led to the formation of the California Fruit Canners Association (CFCA) in 1899. "CFCA represented a ... merger of 18 separate canneries, including the Oakland Preserving Company. ...CFCA was so vast that it comprised approximately half of the entire California canning industry and ranked, in effect, as the largest canner of fruits and vegetables in the world." CFCA's reliance upon commission agents to sell most of its produce led to ...the formation of the California Packing Corporation (Calpak), the immediate ancestor of the Del Monte Corporation."
  • In 1967, CalPak changed its name to Del Monte Corporation. Over the next 50 years, the company went through more name changes, a merger, and acquisition of smaller companies, and is now called Fresh Del Monte Produce Inc.
Business Structure
  • Fresh Del Monte Produce Inc. is organized into four business divisions: land trucking, ocean shipping, operations and sales, packaging.
  • Land trucking Division: The company manages its supply chain to provide products to customers at peak freshness. A key element in the company's logistics network is its land trucking operation with 24/7 coverage, 365 days a year. This operation monitors all loads and provides delivery updates. "Del Monte Fresh Produce’s logistics department manages the cold chain from source to customer using a mix of asset-based carriers and our trucking company, Tricont Trucking Company. Asset-based carriers are required to comply with Del Monte Fresh Produce’s cold chain policy and procedures...."
  • Ocean Shipping Division: The company transports "fresh produce and beverages to markets worldwide using a fleet of 11 owned and 6 chartered refrigerated vessels." The products are trucked to the seaports served by the ships and loaded into chilled holds for safe transportation." "...90 percent of our products are transported by vessel to distribution facilities operated by us or our agents."
  • Operations and Sales Division: The company distributes products to retail stores, foodservice operators, wholesalers and distributors in over 100 countries around the world. It manages global logistics operations, transporting products from the countries in which they are grown to the markets where they are sold worldwide. "Maintaining fruit at the appropriate temperature is an important factor in preventing premature ripening and optimizing product quality and freshness."
  • Packaging. The Packaging Development Group "works to keep the 'fresh' in the fruits and vegetables", to assure that "the physical needs of fruit are addressed to protect and maintain freshness. The packaging is designed for easy packing, rapid cooling and protection from the rigors of transportation". The fruit travels to its global destinations in refrigerated ships. "With fresh fruit and vegetables, the challenge is to design secondary packaging (primarily recyclable corrugated) that will [survive] the rigors of transport and handling while protecting the fruit and vegetables from bruising when exposed to moisture, shock and vibration." The fresh cut packaging operations use plastics that are sustainable (corn based PLA) and recyclable.
Business Plan
  • With 2017 revenue of $4.01 billion, Fresh Del Monte Produce Inc is now one of the largest produce companies in the world. It positions itself as a leading producer, marketer, and distributor of "fresh and freshly-cut fruit and vegetables, as well as prepared fruit, vegetables, juices, snacks, and desserts all over the world.
  • The company sells prepared fruit and vegetables, juices, beverages and healthy snacks in the US, Europe, Africa, the Middle East, Eastern Europe, and Asia, through a vertically-integrated network that allows the company to "manage the transportation and distribution of ... products in a temperature-controlled environment, ... to preserve quality and freshness and to optimize product shelf life while ensuring year-‘round distribution."
  • Fresh Del Monte Produce Inc. claims to hold leading market positions in "several key fresh product categories." In a website letter to potential investors, the CEO wrote, "At the end of December 27, 2019, we believe we are: (1) the largest marketer of fresh pineapples in the United States, and a leading marketer in other markets worldwide; (2) the third-largest marketer of bananas in the United States, and a leading marketer in other markets worldwide; (3) a leading marketer of fresh-cut fruit in the United States, Canada, Japan, South Korea, the United Kingdom, United Arab Emirates and Saudi Arabia; fresh and fresh-cut vegetable products in North America; grapes and avocados in the United States; non-tropical fruit in select markets; and canned fruit in the European Union (the "EU") and other European and Middle East markets."
  • Net sales for the full year 2019 were $4.489 billion. Net income for the full year 2019 was $66.5 million.
  • Beginning 130 years ago as a line of canned peaches, the company today has grown in ways unimaginable to its original creators.

Sources
Sources

Quotes
  • "Originally, Nutella® was a smart solution to a tricky problem: the shortage of cocoa supplies following World War Two. Pietro Ferrero, a pastry maker from Piedmont in Italy, ingeniously created a sweet paste made from hazelnuts, sugar and just a little of the rare cocoa. He shaped it into a loaf that could be sliced and served on bread and he named it 'Giandujot' after a famous local carnival character at the time. On May 14th 1946 the Ferrero Company was officially founded."
  • "In 1951, The delicious ‘Giandujot' paste was transformed into a new product that could be easily spread on bread; it was called SuperCrema (the precursor to Nutella®)."
  • "In 1964, Pietro Ferrero's son, Michele applied his innovative genius and, by trial and error, he improved the recipe and created the first-ever jar of a new hazelnut and cocoa cream which was, however, still without a name. So he put his creative hat on again and invented the perfect solution for the world's most famous spread: 'Nutella®."
  • "In 1965, Nutella®'s iconic jar was created. Nutella® reached Germany and the Germans immediately fell in love with the delicious spread. The newly-designed jars with the unmistakable iconic design were also well acclaimed with a great success. In 1966, Nutella® expands further into Europe and is launched on the French market with great success."
  • "In 1978, After having conquered Europe, Nutella® embarked in Australia and the first Nutella® production plant outside Europe was opened in Lithgow, near Sydney."
  • "In 1996, Nutella® organized the mega "Generation Nutella®" event in Paris in the picturesque setting of the Carousel du Louvre: an exhibition of works created between 1966 and 1996 by artists in their thirties who grew up having breakfast with bread, Nutella® and big names in art like Decouflé, Paco Rabanne and Wolinski"
  • "In 2005, On May 29th, 27.854 people gathered at Gelserkirchen, in Germany, to participate in the Largest Continental Breakfast Ever with Nutella®; it was such a great event that it entered the Guinness Book of Records!"
  • "iN 2007, Sara Rosso, an Italo-American blogger and Nutella® lover, decided to dedicate one day of the year to her favourite spread: so, on February 5th 2007, all Nutella® lovers were called to unite. Since then, World Nutella® Day «became a way to celebrate it and also an introduction for a lot of people to try Nutella® for the first time» (S. Rosso)."
  • "IN 2011, The era of the social network has arrived and the internet becomes the place to share interests and talk about passions. The global Facebook page dedicated to Nutella® reaches 10 million fans, after 1 year of official management from Ferrero."
  • "In 2014, To celebrate Nutella®'s fiftieth birthday we created nutellastories.com where Nutella® lovers shared 76,400 stories, happy memories and unforgettable moments in the company of the famous jar. But this birthday deserved to be celebrated in style so we organized a global event in 10 countries from New York to Dubai, Naples and Paris. It was such a special anniversary that Italy even issued a commemorative stamp!"
  • "In 2017, The first Nutella® Cafe Starting on May, 31st Ferrero opened in Chicago its first owned and operated restaurant: the Nutella® Cafe! It’s a special place where all Nutella® fans can live and enjoy a unique experience from the moment they step into the space, choosing from a wide variety of menu items, with all-day dishes and to-go options designed to take your taste experience to new and delicious heights. www.facebook.com/NutellaCafeChicago"
  • ""
  • "The seven ingredients in Nutella are hazelnuts, palm oil, sugar, milk, cocoa, lecithin, vanillin."
  • "Now in its third generation, the past, present and future success of the Ferrero family from Piedmont.... The Ferrero Group employs more than 34,000 people across 53 countries, it has 20 production plants around the world, of which 3 are Ferrero Social Enterprises in Africa and Asia, and 9 agricultural companies. Its products are present and sold in more than 160 countries; "
  • "Core values (from website): family, innovation and creativity, quality and freshness, responsibility and respect."
  • "2018 CSR Report: Our products are present and sold, directly or through authorized retailers, in more than 170 countries. Our Group is present in more than 50 countries.... 25 INTERNATIONAL MANUFACTURING PLANTS. During the FY 2017/2018 the Group used a total of 1,904,526 tons2 of agricultural raw materials and packaging raw materials. Workforce: 2017/2018 31,7481 2016/2017 30,305 "
  • "Sustainability goals: 100% cocoa certified as sustainable By 2020 100% sustainable palm oil certified RSPO as segregated Reached in December 2014 100% refined cane sugar from sustainable sources By 2020 Implementation of the traceability plan for 100% of hazelnuts By 2020 100% of eggs from barn hens with respect for animal welfare Reached in September 2014 in EU plants and extended to a global level by 2025 Self-produced electricity totaling 70% (instead of 75%) of electrical consumption of all European plants, of which 18% (instead of 25%) was from renewable sources Partially met in September 2014 40% reduction of CO2 emissions from production activities (compared to 2007). By 2020 30% reduction of greenhouse gas emissions (tons of CO2eq) from transport and storage activities (compared to 2009) By 2020 Use of packaging made from renewable sources (+10% compared to 2009) By 2020 * All packaging 100% reusable or recyclable or compostable By 2025 ** 100% virgin cardboard1 from certified sustainable supply chain Reached in December 2014 100% of virgin paper2 from certified sustainable supply chain Reached in December 2017"
Quotes
  • "Ferrero Hazelnut Company, set up at the beginning of 2015, brings together under one structure only all the hazelnut supply chain activities: Ferrero own Agri farms, hazelnut outgrowing development, agronomic research and development, sourcing, industrial transformation, and sale of semi-finished and finished products hazelnut-based. Ferrero Hazelnut Company aims at developing the hazelnut industry on a worldwide scale, thus presenting itself as benchmark for innovation, best farming practices and environmental sustainability."
  • "The origins of an intuition In the Langhe, hazelnut cultivation began in the ‘30s, in response to demand from confectioners in Turin who had started to produce “gianduiotto”, but it exploded after the war. Prior to this, no one understood the full potential of the hazelnut. There are enough, high quality nuts. A few months after the end of the conflict, Pietro Ferrero started making the Pasta Gianduja or Giandujot, a “sweet accompaniment” to use not only in the place of chocolate, but also salami and cheese. Pietro Ferrero bought a hazelnut farm as a type of pilot company, at his own expense, he studied the optimal growth conditions for the nuts so that he could train farmers. The Ferrero Group continued to strengthen its presence in the hazelnut market, ensuring and improving the quality of this essential prime material and to guaranteeing a unique taste for products such as Nutella, Ferrero Rocher and Kinder Bueno. In 2015, the Group completed the purchase of the Turkish Oltan Group and the Italian Stelliferi Group, two of the world’s biggest commercial hazelnut traders."
  • "A path of integration of hazelnut supply chain The activities of Ferrero Hazelnut Company are: Land acquisition, Ferrero farms and outgrowing: the activities of these three functional areas are strongly integrated: currently they all operate with the aim of expanding the growing of hazel trees on a global scale. Agricultural research and innovation: a team of agronomists is dedicated to experimentation and to field work, with very advanced instruments and techniques. Processing, Improvement e Industrial Quality: The HCo’s research and development (R&D) process is composed of two souls, independent but complementary. The first consists of the agronomic part, already illustrated previously; the second is focused on the hazelnut processing and transformation phases Global Trading: Procurement e B2B Sales & Marketing: The HCo is one of the main suppliers of the world hazelnut market, not only for the Ferrero Group but also for other large users. In this setting, all clients, including the Ferrero Group, can benefit from the investments made by the HCo in agricultural research, in the identification of new development areas, in the improvement of quality and in the programs to ensure production sustainability."
  • "3000+ people work for Ferrero HCo 6 Ferrero farms around the world (Chile, Argentina, Georgia, South Africa, Australia and Serbia) 8 processing plants (5 in Turkey, 2 in Italy and 1 in Chile) 5 commercial units (Luxembourg Italy, Turkey, France and the UK) 150+ million companies involved 160,000+ tonnes of nuts produced annually of which 108,000 exceed Ferrero’s quality requirements. Ferrero Hazelnut Company is the first “integrated production supply chain company”, which manages hazelnut processing, from the producers to your table."
  • "Guiding the cultivation Turkey is the biggest hazelnut producer in the world (70% of global production), followed by Italy (10-15%), the US (4%), Azerbaijan (3%), Georgia, Chile, Spain and Iran. Turkey has a growing area of approximately 700,000 hectares. Italian production covers 70,000 hectares. Unlike Turkey and Italy, where crops are grown on small or mid-sized farms, in the United States, the plantations are large and involve a high level of mechanisation."
Quotes
  • "The traditional Piedmont recipe, gianduja, was a mixture containing approximately 71.5 % hazelnut paste and 19.5 % chocolate. It was developed in Piedmont, Italy, due to a lack of cocoa beans after post-war rationing reduced availability of the raw material.[18] Many countries have a different ingredient list for the Nutella formula."
  • "Australia Sugar, palm oil, hazelnuts (13%), skim milk powder (8.7%) cocoa powder (7.4%), non-fat milk solids, emulsifier (soy lecithin), flavour (vanillin).[19] Canada Sugar, modified palm oil, hazelnuts, cocoa, skim milk powder, whey powder, lecithin, vanillin.[20] Germany Ferrero has confirmed that it has changed the recipe of its chocolate and hazelnut spread – sparking a huge backlash among fans of the brand.[21] India Sugar, palm oil, hazelnuts (13%), skim cow milk powder (8.7%), low fat cocoa powder (7.4%), emulsifier (Lecithin - INS 322), contains added flavour(nature identical flavouring substance - vanillin). Italy Sugar, vegetable oil, hazelnuts (13%), fat-reduced cocoa powder (7.4%), skimmed milk powder (5%), whey powder, emulsifier (lecithins) (soy), flavourant (vanillin).[22] United States Sugar, palm oil, hazelnuts, cocoa, skim milk, reduced minerals whey (milk), lecithin as emulsifier (soy), vanillin: an artificial flavor.[22] Production"
  • "Nutella is described as a chocolate and hazelnut spread,[17][32] although it is mostly made of sugar and palm oil. The manufacturing process for this food item is very similar to a generic production of chocolate spread. Nutella is made from sugar, modified palm oil, hazelnuts, cocoa powder, skimmed milk powder, whey powder, soy lecithin, and vanillin.[33][34]"
  • "The process of making this spread begins with the extraction of cocoa powder from the cocoa bean. These cocoa beans are harvested from cocoa trees and are left to dry for about ten days before being shipped for processing.[35] Typically, cocoa beans contain approximately 50 percent of cocoa butter; therefore, they must be roasted to reduce the cocoa bean into a liquid form.[35] This step is not sufficient for turning cocoa bean into a chocolate paste because it solidifies at room temperature and would not be spreadable. After the initial roast, the liquid paste is sent to presses, which are used to squeeze the butter out of the cocoa bean. The final products are round discs of chocolate made of pure compressed cocoa. The cocoa butter is transferred elsewhere so it can be used in other products."
  • "The second process involves the hazelnuts. Once the hazelnuts have arrived at the processing plant, a quality control is issued to inspect the nuts so they are suitable for processing. A guillotine is used to chop the nuts to inspect the interior.[36] After this process, the hazelnuts are cleaned and roasted. A second quality control is issued by a computer-controlled blast of air, which removes the bad nuts from the batch.[36] This ensures that each jar of Nutella is uniform in its look and taste. Approximately 50 hazelnuts can be found in each jar of Nutella, as claimed by the company.[37]"
  • "The cocoa powder is then mixed with the hazelnuts along with sugar, vanillin and skim milk in a large tank, until it becomes a paste-like spread.[35] Modified palm oil is then added to help retain the solid phase of the Nutella at room temperature, which substitutes for the butter found in the cocoa bean. Whey powder is then added to the mix to act as a binder for the paste. Whey powder is an additive commonly used in spreads to prevent the coagulation of the product, because it stabilizes the fat emulsions.[38] Similarly, lecithin, a form of a fatty substance found in animal and plant tissues, is added to help emulsify the paste, as it promotes homogenized mixing of the different ingredients, allowing the paste to become spreadable. It also aids the lipophilic properties of the cocoa powder, which, again, keeps the product from separating.[37] Vanillin is added to enhance the sweetness of the chocolate. The finished product is then packaged."
  • "Nutella contains 10.4 percent of saturated fat and 58% of processed sugar by weight. A two-tablespoon (37-gram) serving of Nutella contains 200 calories, including 99 calories from 11 grams of fat (3.5 g of which are saturated) and 80 calories from 21 grams of sugar. The spread also contains 15 mg of sodium and 2 g of protein per serving (for reference a Canadian serving size is 1 tablespoon or 19 grams).[39][40]"
  • "The label states that Nutella does not need to be refrigerated. This is because the large quantity of sugar in the product acts as a preservative to prevent the growth of microorganisms. More specifically, the sugar acts as a preservative by binding the water in the product, which prevents the microorganisms from growing.[41] Refrigeration causes Nutella to harden, because it contains fats from the hazelnuts. When nut fats are placed in cold temperatures, they become too hard to spread. Hazelnuts contain almost 91 percent monounsaturated fat, which are known to be liquid at room temperature and solidify at refrigerator temperatures.[42][43] Room temperature allows the product to have a smooth and spreadable consistency, because the monounsaturated oils from the hazelnut are liquid in this state.[41] In addition, the palm oil used in Nutella does not require refrigeration, because it contains high amounts of saturated fat and resists becoming rancid.[44] The remaining ingredients in Nutella, such as cocoa, skimmed milk powder, soy lecithin, and vanillin, also do not require refrigeration.[45][46]"
  • "In the United States, Ferrero was sued in a class action for false advertising leading to consumer inferences that Nutella has nutritional and health benefits (from advertising claims that Nutella was "part of a nutritious breakfast"). In April 2012, Ferrero agreed to pay a $3 million settlement (up to $4 per jar for up to five jars per customer). The settlement also required Ferrero to make changes to Nutella's labeling and marketing, including television commercials and their website.[47]"
Quotes
  • "you can now enjoy Nutella with a clean conscience: the palm oil used to produce the spread was later, in 2017, recognized by the European Parliament as a “Sustainable product”: The Ferrero Company indeed has over the years demonstrated its commitment to environmental sustainability, and is a leading example for many other firms. In 2015, it joined the Palm Oil Innovation Group, and it supported the Amsterdam Declaration “In Support of a Fully Sustainable Palm Oil Supply Chain by 2020”."
Quotes
  • "On the outskirts of Alba, a cobblestoned Italian city that dates to Roman times, stands a stark modern fortress. Behind 10-foot concrete walls, steel gates and uniformed guards lies not a nuclear facility or an army base but a chocolate factory. This is the hometown plant of Ferrero, the maker of Nutella, Tic Tac, Mon Chéri and Kinder."
  • "Ferrero sold $12.5 billion worth of sweets last year, and its namesake owners are worth an estimated $31 billion altogether, $21 billion of which belongs to Giovanni, who's the 47th-richest person in the world. Their success took generations. Founded in 1946 in war-ravaged Italy by Giovanni's grandfather Pietro, the business expanded through decades of careful growth, with little debt and no acquisitions."
  • "In many ways he is now turning away from what powered Ferrero's ascent: a singular focus on its native brands. Instead, Giovanni is chasing higher revenues through acquisitions. He believes that existing product lines won't be enough, in the long run, to compete with larger rivals like Mars, the maker of M&M's and Snickers (2017 confectionery sales: $23.7 billion), and Mondelez ($23 billion), which has Oreo and Toblerone. So in 2015 he bought the venerable British chocolatier Thorntons for $170 million. It was Ferrero's first branded acquisition ever. His biggest purchase came in March, when he acquired Nestlé's U.S. candy business for $2.8 billion in cash. American icons like Butterfinger and BabyRuth are now Giovanni's domain."
  • "He can afford it. Ferrero is highly profitable—Forbes estimates the company nets about 10% of sales—and is sitting on a pile of billions in cash. But it's still a risky endeavor. At its core, the chocolate business is a branding game. Every purveyor sells roughly the same commodities"
  • "The newly acquired product lines, however, are less premium, which threatens to dilute those hefty margins and complicate Ferrero's business model. And Giovanni is going against the grain: His competitors are running from cheap, junky sweets as healthier snacks like trail mix are increasingly in vogue."
  • "If any one person deserves credit for Ferrero's global expansion, it's Michele. Just before his father's death, he persuaded his relatives to enter the German market. The company converted former Nazi missile factories and began churning out sweets. It found a quick foothold with a cherry-liquor-filled chocolate called Mon Chéri, which it introduced in 1956. The Germans were hooked."
  • "Next came expansion to Belgium and Austria and soon after to France. Ferrero blitzed new markets with ads billing the high energy content and healthfulness of its sweets. (Such messaging later got the company into trouble in the U.S., where it settled a false-advertising lawsuit for $3.1 million in 2012, in part over calling Nutella "an example of a tasty yet balanced breakfast." It denied wrongdoing.)"
  • "In 1962, as Italy was emerging from postwar ruin, Michele decided to upgrade the quality of his Supercrema. The country could finally afford real chocolate, so he added more cocoa and cocoa butter to the mix. Then, when the Italian government moved to regulate the use of superlatives in advertising—potentially putting the name Supercrema in peril—he chose to rebrand."
  • "Ferrero's expansion rolled on to Switzerland and Ireland and as far as Ecuador, Australia and Hong Kong. New products were introduced at a steady clip: the Kinder line in 1968, Tic Tac in 1969, Ferrero Rocher pralines in 1982. By 1986, annual sales reached 926 billion lira, about $1.5 billion in current dollars."
  • "By the time [Michele] handed the reins to his sons in 1997, the once tiny operation had become a heavyweight with roughly $4.8 billion in annual sales."
  • "Giovanni's creativity made him an effective counterpart to his brother, Pietro, who gravitated to operations. Together, in 1997, they took over as CEO from their father, who remained chairman. For the next decade and a half, they focused on boosting Ferrero's in-house brands."
  • "But in 2011, while biking in South Africa, Pietro died of a heart attack, the same fate as his grandfather and great-uncle, leaving his wife, three children and Ferrero behind. Giovanni was forced to run day-to-day affairs by himself. "[It] was a big discontinuity," he says. Four years later, Michele died, too, at age 89. More than 10,000 people reportedly attended his funeral in Alba."
  • " By virtue of its ownership it's still technically a family business. Yet Giovanni is really running a multinational, with 25 factories scattered around the world—and a mandate to expand. "I feel like we are duty-bound to grow," he says."
  • "Translation: Giovanni's plan is to increase revenues by at least 7.33% per year in order to double turnover in a decade. Ferrero's native product lines probably couldn't expand that quickly, so Giovanni is buying sales to compensate."
  • "Hence the acquisition of Thorntons in 2015. At the time, the British chocolatier was seen as a declining business. Yet Giovanni evidently saw value there. He next bought U.S. candy makers Fannie May ($115 million in May 2017) and Ferrara, maker of Red Hots and Trolli gummies (about $1.3 billion, in December). Finally came the Nestlé deal, including its Crunch, Raisinets and LaffyTaffy labels, for $2.8 billion. It was an ironic twist of fate. Two years earlier, after Michele's death, rumors swirled that Nestlé might acquire Ferrero, which Ferrero strongly denied."
  • " Following the Nestlé purchase, Ferrero became the world's third-largest confectioner, according to data from Euromonitor. And he's not finished buying. Giovanni's theory is that, as with the beer market, a few key players will come to dominate the confections trade. "
  • " its hazelnut business. A few years ago it purchased two of the world's biggest hazelnut traders, Oltan Group in Turkey and the Italian Stelliferi Group, and is further investing in plantations in Australia, the Balkans and South America in a bid to increase yields and availability throughout the year. Ferrero, which buys about a third of the planet's hazelnuts, is also now the world's largest hazelnut supplier. "
Quotes
  • "A team at Rutgers recently announced that after 20 years of research, they had developed a hazelnut tree that could grow in the Northeastern U.S. and Canada. Using seeds from Eastern Europe, the Rutgers group experimented with thousands of trees until they had a hardy hybrid that resisted Eastern Filbert Blight (a devastating Northeastern U.S fungus) and cold weather. If it all works out Ferrero (Nutella’s maker) will be able to diversify its supply."
Quotes
  • "The OECD [Organization for Economic Cooperation and Development] uses Nutella, the popular hazelnut and cocoa spread brand sold in more than 100 countries, to illustrate the long agri-food value chains that contribute to the products on grocery shelves."
  • "Ferrero International SA, based in Luxembourg, produces about 350,000 tons of Nutella each year at 10 factories: five in the European Union and one each in Russia, Turkey, North America, South America and Australia. While some inputs are sourced locally, Nutella also consists of: –Hazelnuts from Turkey –Palm oil from Malaysia, Papua New Guinea and Brazil –Cocoa from Ivory Coast, Ghana, Nigeria and Ecuador –Sugar from Europe –Vanillin from the United States and Europe"
  • "Production is located near markets where Nutella is in high demand – Europe, North and South America, and Oceania – the OECD notes. “In agri-food business value chains, there are more developing and emerging economies involved, as can be seen in countries in Latin America and Africa in the case of Nutella,” the OECD paper says. Nutella’s supply chain, it says, shows that being close to final consumers and to suppliers matters for the agri-food industry, and that the same activities can be located in developed and emerging markets."
Quotes
  • "Nearly three-quarters of the world's hazelnuts come from Turkey and the biggest buyer is Ferrero, maker of Nutella, the chocolate and hazelnut spread. But the nuts are picked mainly by migrants, including children, who work long hours for very low pay. What is Ferrero doing to ensure its products do not depend on child labour?"
  • ""When we say 'hazelnut', in my understanding it means misery: tough work, being a worker," says Mehmet Kelekci as he hauls a 35kg sack of freshly-picked nuts on to his back. Around him, high on a Turkish mountainside, a family of fellow Kurdish migrant workers is moving slowly among the hazel trees. The father is using a wooden crook to shake the branches above his head; his wife and children bend double or squat as they reach down to pick the clusters of nuts in their pale green husks that cascade to the ground."
  • "It's exhausting work, for about 10 hours a day, on slopes so steep that it's easy to lose your footing. And two of the pickers, Mustafa and Mohammed, are working illegally. They're aged just 12 and 10, well below Turkey's minimum working age. This is a typical scene in August, when the harvest is brought in along the Black Sea coast of Turkey, origin of 70% of the world's hazelnut supplies."
  • "Most of the pickers are seasonal migrants from the poverty-stricken south and east of Turkey, mainly Kurds. The official wage rate set by local authorities is 95 lira (£13; $16; €15) a day. Worked out on an hourly basis, this is less than the official Turkish minimum net wage of 2,020 lira a month for a 40 or 45-hour week. But this family will receive even less - a maximum of 65 lira a day each, and possibly as little as 50 - after they've paid a 10% commission to the labour contractor who brings them, and the fare to and from their home town of Sanliurfa, and living expenses while they're away."
  • "Kazim Yaman, co-owner of the orchard, says he is against child labour. "They are making their children work like machines. They think: 'How many children, how much profit?'" But he says most other farmers accept it - and that he has no option but to pay the children, because their parents insist that they work. "I am trying not to make them work, but then they say they are leaving," he says. "The mother and father want them to work - and to be paid." He adds: "This chain has to be broken.""
  • "But how? Turkey has about 400,000 family-owned hazelnut orchards. Most, like Kazim's, are tiny, just a few acres. Many growers, like him, don't know where their nuts end up. At the far end of the often complex supply chain, are well-known Turkish and international confectionery brands including Ferrero - the Italian family-owned firm that manufactures Nutella, Ferrero Rocher and Kinder chocolates. Ferrero buys about a third of the entire Turkish crop."
  • "The company aims to make its hazelnuts 100% traceable by 2020. Currently, though, according to its latest report, to be published shortly, it has achieved only 39% traceability."
  • "Ferrero's flagship Farming Values Programme, launched in Turkey in 2012, offers free training to hazelnut growers in more efficient cultivation techniques, to help them raise their incomes - though they remain free to sell their nuts to whomever they want. On one of the model farms developed by Ferrero, company agronomist Gokhan Arikoglu shows how - with better pruning, irrigation, and pest control - a hazel tree can produce clusters of up to 21 nuts. On traditionally-run farms, four in a cluster is more typical."
  • "Working in part with NGOs and other agencies, Ferrero also trains growers, farm labourers, labour contractors, traders, brokers and others in the community, such as village heads, to be aware of how the sector can be made more sustainable. That includes training on workers' rights, in particular on avoiding child labour. The company makes an effort to involve women, including women farmers, in its training programmes. Ferrero says the programme has so far reached more than 42,000 farmers. That's about a 10th of the 400,000 in Turkey."
  • "In a rare interview by one of the company's executives, Bamsi Akin, general manager of Ferrero Hazelnut Company in Turkey, says: "If we determine a product which is produced with unethical practices, we would not touch it. We are doing our role to improve social practices with trainings… But is the system completely clean? I think no-one can say that at this moment.""
Quotes
  • "Blue Diamond Growers got its start in 1910 as a processing and marketing co-op for California almond growers. Today, there are six thousand almond farmers in California and thirty­ five hundred of them bring their product to their ninety-six-acre processing facility. In peak season, twelve hundred workers keep the lines running sixteen hours a day. The California almond crop is valued at over $1 billion annually. They are the largest food export from California."
  • "The company has two main brands: Whole almond and almond related products in various forms. And Almond Breeze Almond Milk."
  • "When the farmer delivers bulk almonds by the truckload, a sample is taken and carefully exam­ined. Payment to the grower will depend on its quality. The nuts go from silos to the top floor of a five-story building, where the cleaning, grading, and sorting operation begins. Using lasers or infrared detectors the process knocks out items that seem too dark or too light. Sand, shell fragments, damaged nuts, are removed and excluded from sale to customers. Every almond is inspected by eyes that might catch something the process would miss. Still, the state-of -the-art plant in Sacramento has some of the most advanced computers, the laser, and the bar-code rule."
  • "The processing facility for Blue Diamond is located in California. The system produces exactly what the customer wants: raw, blanched, chopped, sliced, seasoned, diced, big, or little almonds. To keep the product fresh before satisfying orders, there is enough cold storage for millions of pounds. Presently, The Blue Diamond Company is the single largest operation in the world for processing nuts."
  • "the Blue Diamond organization headquartered in Sacramento, California."
Quotes
  • "1910 The California Almond Growers Exchange is founded, leading development of California's almond industry from a minor domestic specialty crop to the world leader in almond production and marketing. 1915 The Exchange adopts the blue diamond — the rarest in the world — as the symbol on its label, representing high quality and distinguishing it from Spanish and Italian imports. 1949 The 6-ounce can of Blue Diamond Smokehouse® almonds is first introduced. 1980 The Exchange officially becomes known as Blue Diamond Growers."
Quotes
  • "SACRAMENTO, CA – Blue Diamond Growers, a nonprofit grower-owned cooperative and the world’s leading processor and marketer of almonds, marked its 110-year anniversary today with announcements about the completion of two key infrastructure expansions. The company also was recently recognized by Boston Consulting Group & IRI as one of the Top 10 Fastest Growing Mid-Size CPGs for the fourth consecutive year."
  • "The first expansion is a 52,000 square foot addition to the existing 200,000 square foot Turlock manufacturing plant that first opened in 2013 and sits on 88 acres. In 2014, Food Engineering Magazine recognized the Turlock facility as Plant of the Year for innovation, manufacturing excellence and sustainable operations. Construction completed on the new building last week expands Blue Diamond’s value added almond processing capabilities with an automated factory that features state-of-the art handling, processing and packaging equipment. This expansion also provides space for a future manufacturing line to support current business or new innovations."
  • "The second expansion is the new Bulk 8 Warehouse at the Salida facility that originally opened as an almond receiving station in 1969. Today the 675,000 square foot facility sits on 44 acres and includes a retail Nut & Gift Shop. The new 58,000 square foot bulk storage facility is on schedule to be completed by the end of May providing an additional 50 million pounds of in-house bulk almond storage capacity in time to receive the 2020 almond harvest. The 65-foot-tall building includes advanced design with an automated gravity fed spiral conveyance system that improves grower delivery efficiency and reduces damage to the almonds"
  • "California produces 80% of the world’s almond supply and almonds are the state’s largest food export item. Blue Diamond Growers’ 3,000 members account for roughly half of the state’s almond producers."
  • "Blue Diamond Growers is the world's leading almond marketer and processor. It led the development of California’s almond industry since it was formed as a nonprofit, grower-owned cooperative over 100 years ago. Today Blue Diamond® has over 3,000 growers across California. Blue Diamond® markets and sells a wide range of almond-based snacks, beverages, and ingredients, including Blue Diamond® Snack Almonds, Nut-Thins® crackers, almond flour, and the number one almond milk in the U.S., Almond Breeze®. For more information, visit www.bluediamond.com."
Quotes
  • "In 2019, Blue Diamond launched 20 new products with the intent of reaching emerging key markets and providing consumers worldwide with new almond product offerings. Our ability to develop unique uses for every variety of almond and expand almond capabilities into previously unexplored categories positions us as the innovation leader in the industry. "
  • "In the U.S., retail products expanded their market share leadership with snack nuts posting doubledigit sales growth and Almond Breeze achieving over $500 million in sales. The introduction of our new Almonds & Fruit line and Almond Breeze™ Creamer and yogurt alternative keep us poised to lead the snack almond and non-dairy beverage segments. "
  • "Blue Diamond continues to expand in overseas markets transitioning our international business from investment to profitability. We introduced Almond Breeze to consumers in Mexico and the Middle East, just to name a few, and launched three new products across Japan and Thailand. "
  • "Blue Diamond is the go-to almond supplier for international food companies. We attained over 10 million pounds of new business from more than 100 new customers. As consumers look for healthier, more convenient snacking options, we are using this opportunity to work with our customers on introducing new snack items outside the nut aisle. Blue Diamond will continue to find new ways to increase your profitability long-term by adding more value to your almonds."
  • " our social media campaign, #WeAreBlueDiamond,"
  • "FINANCIAL HIGHLIGHTS (IN THOUSANDS) August 30, 2019 August 31, 2018 August 25, 2017 August 26, 2016 Net Sales and Other Revenue $1,565,743 $1,567,397. $ 1,481,343 $ 1,672,820"
  • "We are proud of our multifaceted efforts at conserving and being responsible with our environment. We are putting more care into sustaining our future by overhauling the internal distribution network. This will eliminate approximately 2,000 truckload movements, save 48,000 gallons of diesel fuel, and in turn, eliminate about 490 metric tons of carbon dioxide each year. "
  • "Each facility is increasing recycling initiatives by eliminating disposable cups and bottled water. One additional project is the donation of our tough-to-recycle super sacks to California Disaster Relief to use for sandbags during flood season"
  • " Since its 2015 launch in the U.S., Blue Diamond almond flour has grown by 330 percent and since 2016, sales have grown by 380 percent in Europe."
  • "Almond Breeze took over as market leader in almond milk in Thailand from an established local brand in both value and volume sales. Almond Breeze owns the almond milk category leadership in South Korea, South Africa, and other key markets. Additionally, Blue Diamond’s International Consumer team launched 27 products in five new markets — Mexico, Middle East, Philippines, Germany, and Brazil."
Quotes
  • "Blue Diamond Growers is a California agricultural cooperative and marketing organization that specializes in almonds. Founded in 1910 as the California Almond Grower's Exchange, the organization claims to be the world's largest tree nut processing and marketing company. It serves 3,500 almond growers, and helps make the almond crop (valued at over $1 billion) California's largest food export"
  • "The cooperative is privately held and does not disclose sales figures, although the Sacramento Bee has estimated it to have annual sales of about $709 million in 2009.[1]"
  • "The organization is headquartered in Sacramento, California. From 2004 to 2008, it resisted attempts by the International Longshore and Warehouse Union to organize workers at its processing plant. Blue Diamond was found by the National Labor Relations Board to have violated a federal labor law in its campaign against the union.[2] In November 2008, however, the union lost an NLRB-supervised vote to establish a branch."
Quotes
  • "Headquartered in Sacramento, California, Blue Diamond Growers is the world's largest almond processing and marketing company. Founded in 1910, the cooperative is owned by half of the state's almond growers, who produce over 80 percent of the world’s almond supply. The California almond crop is marketed to all 50 states and more than 90 foreign countries."
  • "Blue Diamond led the development of California’s almond industry from a minor domestic specialty crop to the world leader in almond production and marketing. As a trailblazer in the almond industry, it has helped to make almonds California's largest food export, the sixth-largest U.S. food export and the No. 1 specialty crop in America. "
Quotes
  • "For more than six years, the market prices for almonds consistently rose, never selling for less than the previous year. As the drought suppressed yields, prices spiked. By last summer, almonds had become the most costly tree nut. It was a good time to strengthen balance sheets of growers and handlers."
  • "As prices reached historically high levels, the industry experienced a reduction in market demand. In times of tight supplies, price is used to ration the available quantities. However, demand-erosion occurred and pricing had become over-inflated."
  • "Blue Diamond’s strategic plans anticipated the 2015 crop to be the peak of almond prices over our five-year planning horizon. We forecasted an El Niño water year, combined with increasing acreage, would result in expectations for larger future crops and price changes."
  • "The unexpected news of a healthy 2015 crop with a slight increase in market supply triggered the price decline. The speed of the price correction unsettled the market. Purchases were made at prices $1.50 above current market by the time the product reached the customer. When those customers needed to resell, they sometimes defaulted on those contracts leaving containers orphaned in port, searching for new customers. Later, they sold at discount to the already lower market prices, further contributing to the downward pricing spiral."
  • "It seems counter-intuitive, but lowering prices reduced demand. This deflationary environment caused buyers to delay purchases and even reduce consumption. They knew that by waiting prices would go lower. Price stability or defining a floor to prices was necessary to give buyers the confidence to buy now."
  • "As I write this article, it appears market prices have returned to the historically normal levels or similar to those of 2012. California growers, the most productive, efficient and sustainable in the world, are better positioned to maintain profitability at these economic levels, but other producing countries will be pressured to break-even. This gives us a platform from which to restore market confidence and rebuild demand."
  • "Blue Diamond is a marketing co-op. Our business is almond demand generation. In the last five years we have tripled our advertising expenditures, continued to innovate new almond products, opened 45 international markets to our consumer brand and achieved two-thirds of our revenues through value-added products."
  • "With the moderation in almond prices, Blue Diamond is doubling down on our marketing investments. We are debuting new Almond Breeze television advertising, committing to significant advertising for snack almonds during the Olympics and continuing to invest in new innovative products that will build our growers’ bottom line. Blue Diamond will continue driving market growth through innovative products and marketing, ensuring a strong future for our cooperative"
Quotes
  • "During the 1990s, Blue Diamond planting acreage doubled and crop tonnage tripled. Blue Diamond's goal for the future was to increase retained earnings and decrease reliance on revolving reserves to finance working capital needs. Smaller unsold inventories held at the end of the year translated into accelerated payments to growers. Exciting, "cutting edge" projects were on the horizon, including enhanced farming techniques that would allow delivery of a fully sterilized product without the use of fumigants."
  • "Cooperative Founded: 1910 Employees: 1,200 Sales: $434.5 million (1998) NAIC:: 311911 Roasted Nuts & Peanut Butter Manufacturing"
  • "Blue Diamond's snack sales had reached $16 million in 1996, when a marketing agreement with candymaker Brach & Brock for Almond Supremes was announced. In January 1997 the firm linked with Hornsby's Amber Hard Cider to provide Super Bowl tie-ins. In June 1997 Algernon Greenlee, Blue Diamond's business manager of retail products, announced that the company would enter nationwide test markets with Nut Thins, a specialty cracker produced by Sesmark Foods. In September 1997 almonds were added to International Home Foods' Crunch 'n Munch ready-to-eat popcorn. Smokehouse Almonds were featured in the 1998 film Sphere"
Quotes
  • " Blue Diamond Growers’ fiscal year 2011-12 sales catapulted to a record $1 billion with two-year growth of $300 million driven by demand for value-added almond products, according to President and CEO Mark Jansen who addressed the cooperative’s grower-owners at their 102nd annual meeting."
  • "That’s good news for Blue Diamond growers, according to Chairman of the Board Clinton Shick, who also told growers at their meeting that they received record payments on the 2011 crop of $670 million for a return that was 18 cents per pound higher than on the 2010 crop. “Revenue per acre also exceeded the previous 2005 record by 19 percent,” said Shick."
  • "Adding processing capabilities to Blue Diamond’s existing operations is part of a plan to expand its brand globally, Jansen told growers. This is a strategy that is already paying off as the cooperative’s global value-added almond ingredient business leaped 69 percent over the last two years and global consumer-branded businesses increased 45 percent."
Quotes
  • "Surprisingly, the venerable company didn’t have a formal supply-chain organization until 2013, when Ken Lehman was brought on board to set one up. Prior to that, relevant functions were spread across the organization, with no centralized team to manage them."
  • "That’s the same year that Blue Diamond set out to double production capacity, starting with first-phase construction of a new plant in Turlock, in California’s Central Valley. With ambitious growth plans underway, an efficient, coherent supply-chain organization was essential."
  • "The big challenge facing Blue Diamond, says Vorse, was that “the supply chain was the tail that wagged the dog.” In other words, the function had failed to keep pace with changes in the client’s food-manufacturing business. The main focus up to then had been on keeping manufacturing costs down, and turning out a quality product. Now Blue Diamond needed to simultaneously reduce supply-chain expense and improve customer service. A rejiggering of distribution sites was clearly in the cards."
  • " The conclusion: shifting regional forward distribution centers to Bethlehem, Pa., Edgerton, Kan., and Charlotte, N.C. (Blue Diamond continues to serve markets in the western region out of its Sacramento headquarters.)"
  • "St. Onge works with many companies that had previously not focused strongly on their supply-chain organizations, says Vorse. In this case, he sees the firm’s accomplishment as having provided Blue Diamond with “a fresh look with outside eyes.”"
Quotes
  • "SACRAMENTO, Calif., June 19, 2019 /PRNewswire/ -- Blue Diamond Growers is further expanding the capabilities of its Salida facility, the largest almond receiving station in the world, with a new bulk receiving warehouse that will store an additional 50 million pounds of almond meats and bring the total number of bulk warehouses at the facility to eight. Today the cooperative will commemorate the expansion with a special groundbreaking ceremony in Salida, California."
  • "Building on the success of the Bulk 7 warehouse, constructed in 2015, the new state-of-the-art warehouse will feature a number of enhancements to reduce the cooperative's carbon footprint and meet Blue Diamond sustainability initiatives including increased energy efficiency, reduction of greenhouse gas (GHG) emissions, and stormwater recharge. The warehouse will have LED lights, an integrated truck scale and loading pit, and 2,400 feet of buried perforated pipe directing the stormwater to the soil beneath the facility."
Quotes
  • " March 4, 2019 /PRNewswire/ -- Blue Diamond, the world's leading almond marketer and processor, today expanded their snack almonds portfolio with the launch of Almonds & Fruit, a distinctive take on traditional trail mix. Featuring California-grown almonds perfectly paired with premium dried fruit and rich seasonings, Almonds & Fruit elevates the snacking category."
Quotes
  • "The 12 largest agricultural companies by revenue in the world have a large impact on global food production and have dominant positions in all industries that are involved in the food production process, from planting seeds distribution, to using fertilizers and pesticides. Because these companies have a lot of resources, manpower and billions of dollars in investor capital, they squeeze out smaller farmers in their race for profits and can sometimes pursue unsustainable practices in the face of fierce competition."
  • "12. Adecoagro SA (NYSE:AGRO) Revenue: $995 million Adecoagro SA (NYSE:AGRO) is a large agroindustrial company which owns farmland and manufacturing facilities in South America. The company’s products include rice, sugar, milk, sunflower, corn, wheat, soybean, ethanol, and bioelectricity."
  • "11. Fresh Del Monte Produce Inc (NYSE:FDP) Revenue: $4.01 billion Next ...is Fresh Del Monte Produce Inc (NYSE:FDP), which is engaged in the production, marketing and distribution of fresh and freshly-cut fruit and vegetables, as well as prepared fruit, vegetables, juices, snacks, and desserts. Fresh Del Monte Produce was once affiliated with food processing company Del Monte Foods and still continues to market pineapples, bananas, and other products under the Del Monte label under a licensing agreement with Del Monte Foods. The Del Monte Gold pineapple is one of Fresh Del Monte Produce Inc (NYSE:FDP)’s most popular products."
  • "10. BASF Revenue: $6.55 billion BASF is a German chemical company that supplies many industries. One of the largest chemical companies in the world, BASF has a big agricultural division that provides fungicides, herbicides, insecticides, boscalid, and fipronil, as well as seed treatment products. BASF’s agricultural business also includes researching nutrigenomics, a branch of science that studies the effect of food and nutrients on genes, which is considered to be a very promising technology that would allow obesity to be combated and even aid oncology in cancer treatment."
  • "8. Bayer AG Revenue: $11.66 billion Bayer is a German multinational company that is engaged in a number of businesses, such as pharmaceutical, life sciences, and chemical. It produces consumer healthcare products and pharmaceuticals (one of its best known products is aspirin), veterinary drugs, polymers, and has a large division involved in the production of agricultural chemicals. Bayer AG is currently in the process of acquiring Monsanto to merge it with its CropScience division."
  • "7. Syngenta AG (ADR) (NYSE:SYT) Revenue: $12.79 billion Swiss-based Syngenta AG (ADR) (NYSE:SYT) is another large agribusiness that produces chemicals and seeds and ranks as one of largest agricultural companies by revenue in the world. Its chemical division produces herbicides, insecticides, fungicides, and seed treatments. Syngenta AG (ADR) (NYSE:SYT)’s seed business produces and sells seeds that are developed using genetics and technology and cover commercial seed crops like corn, oilseeds, cereals, sugar beet, and vegetables. Syngenta AG (ADR) (NYSE:SYT) also has a lawn and garden division, although it generates much smaller sales compared to its other two segments."
  • "6. Monsanto Company (NYSE:MON) Revenue: $13.50 billion Monsanto Company (NYSE:MON) provides a variety of agricultural products for farmers such as seeds, biotechnology trait products, and herbicides. It has two segments: seeds and genomics, and agricultural productivity, of which the former amasses the largest share of the company’s total sales ($9.99 billion)."
  • "5. Agrium Inc. (USA) (NYSE:AGU) Revenue: $13.67 billion Agrium Inc. (USA) (NYSE:AGU) is a supplier of agricultural products and services in North America, South America, and Australia, and one of the largest agricultural companies by revenue in the world. The Canada-based company is also a wholesale producer of agricultural nutrients and fertilizers, such as nitrogen, phosphate, potash, and sulphur-based fertilizers. The company also operates agricultural centers in the U.S, Canada, South America and Australia, where it provides seed and crop protection products and nutrients."
  • "4. DowDuPont Inc (NYSE:DWDP) Revenue: $15.69 billion DowDuPont Inc (NYSE:DWDP)’s revenue was compiled by summing up the 2016 revenue of Dow Chemical Company’s and E I Du Pont De Nemours’ agricultural segments, since both companies have recently merged and are about to split into three public companies, one of which will solely be involved in agricultural products like crop protection and seed/plant biotechnology products."
  • "3. Deere & Company (NYSE:DE) Revenue: $18.49 billion Deere & Company (NYSE:DE) is a Fortune 500 company that manufactures a wide range of agricultural equipment, including tractors, harvesters, combines, cotton pickers, and sugarcane harvesters. It also makes construction and forestry equipment, as well as diesel engines and lawn mowers. Agriculture and turf is Deere & Company (NYSE:DE)’s highest-revenue segment, accounting for 70% of total sales."
  • "2. Archer Daniels Midland Company (NYSE:ADM) Revenue: $62.35 billion Archer Daniels Midland Company (NYSE:ADM) is one of the world’s largest processors of oilseeds, corn, wheat and other agricultural products. In addition, the company is engaged in the production of protein meal, vegetable oil, corn sweetners, biodiesel, flour, and ethanol. It also owns grain elevators and a transportation network that is uses to store and transport raw materials and processed products."
  • "1. Cargill Revenue: $107.20 billion Cargill is the largest private company in the U.S in terms of revenue and tops the list of the 12 largest agricultural companies by revenue in the world. It specializes in trading, purchasing and distributing grain and other agricultural products. The company, which is based in Minnetonka, Minnesota has a variety of operations, including trading in energy, steel and transport. Cargill’s agricultural business involves the raising of livestock, producing feed, and food ingredients. It also has a large financial services firm that hedges its risks in the commodities markets. Cargill is a family-owned company and is responsible for 22% of the U.S domestic meat market and 25% of U.S grain exports."
Quotes
  • "Cargill reports revenues of $114.695 billion and earnings of $3.103 billion in 2018.[7] Employing over 166,000 employees in 66 countries, it is responsible for 25% of all United States grain exports. The company also supplies about 22% of the US domestic meat market, importing more product from Argentina than any other company, and is the largest poultry producer in Thailand. All the eggs used in US McDonald's restaurants pass through Cargill's plants. It is the only US producer of Alberger process salt, which is used in the fast-food and prepared food industries."
  • "Cargill remains a family-owned business, as the descendants of the founder (from the Cargill and MacMillan families) own over 90% of it"
  • "Cargill was founded in 1865 by William Wallace Cargill when he bought a grain flat house in Conover, Iowa. A year later William was joined by his brother Sam, forming W. W. Cargill and Brother. Together, they built grain flat houses and opened a lumberyard. In 1875, Cargill moved to La Crosse, Wisconsin, and their brother James joined the business. Sam Cargill left La Crosse in 1887 to manage the office in Minneapolis, an important emerging grain center. Three years later, the Minneapolis operation incorporated as Cargill Elevator Co.; some years after that the La Crosse operation incorporated as W. W. Cargill Company of La Crosse, Wisconsin."
  • "Upon Sam Cargill's death in 1903, William Cargill became the sole owner of the La Crosse office. John MacMillan was named general manager of Cargill Elevator Company and moved his family to Minneapolis. William Cargill died in 1909, creating a fiscal crisis for the company. MacMillan worked to resolve the credit issues and to force his brother-in-law William S. Cargill out of the company. The current owners are descended from John MacMillan's two sons, John H. MacMillan, Jr., and Cargill MacMillan, Sr., and his youngest brother-in-law, Austen S. Cargill I."
  • "John MacMillan ran the company until his retirement in 1936. Under his leadership Cargill grew several fold, expanding out of the Midwest by opening its first East coast offices, in New York, in 1923, and the first Canadian, European and Latin American offices in 1928, 1929 and 1930. During this time, Cargill saw both record profits and major cash crunches."
  • "The first of the crises was the debt left by the death of William W. Cargill. The company issued $2.25 million in Gold Notes, backed by Cargill stock, to pay off its creditors. The Gold Notes were due in 1917, but thanks to record grain prices caused by World War I all debts were paid by 1915. As World War I continued into 1917, Cargill made record earnings and faced criticisms of war profiteering. Four years later, as a fallout from the financial crash of 1920, Cargill posted its first loss. [In 1934, The Chicago Board of Trade denied Cargill membership. This led to a long feud.]"
  • "During World War II, MacMillan, Jr., continued to expand the company, which boomed as it stored and transported grain and built ships for the United States Navy.[9] In 1962, Cargill rejoined the Chicago Board of Trade, two years after MacMillan's death."
  • "In 1960, Erwin Kelm became the first non-family chief executive. Aiming for expansion into downstream production, he led the company into milling, starches and syrups. As the company grew, it developed a market intelligence network as it coordinated its commodities trading, processing, freight, shipping and futures businesses. In the decades before email, the company relied on its own telex-based system for internal communication.[9]"
  • "When the Soviet Union entered the grain markets in the 1970s, demand grew to unprecedented levels, and Cargill benefitted. When Whitney MacMillan, nephew of John, Jr., took over the company from Kelm in 1976, revenue approached $30 billion. US government put pressure on big grain exporters with allegations of manipulating the market, and Cargill was a major target, but it emerged without any major changes.[9] In 1978 Cargill purchased the large Leslie Salt refining company in Newark, California, from Schilling.[10][11] In 1979, Cargill entered the meat-processing business with the purchase of beef processor MBPXL (later Excel).[12] The division expanded into turkey, food service and food distribution businesses and is now known as Cargill Meat Solutions."
  • "Ernest Micek took over as chief executive in August 1995. Cargill underwent turmoil in the following years; its financial unit lost hundreds of millions of dollars in 1998 when Russia defaulted on debt and developing countries began to have financial issues. The commodities and ingredients business, which was 75% of Cargill's total revenue, suffered from the 1997 Asian Financial Crisis.[9] Revenues fell by double-digit percentages for two years in a row, from $55.7 billion in 1997 to $51.4 billion in 1998 and $45.7 billion in 1999, while net income fell from $814 million in 1997 to $468 million in 1998 and $220 million in 1999.[8] By 1999, the company had $4 billion in debt. After a reduction in previously strong bond credit rating, Micek announced he would step down a year early.[9]"
  • "Cargill Meat Solutions acquired Milwaukee Emmpak in 2003 and merged it with Taylor Packing Co. (purchased in 2001). In 2006, Cargill Meat purchased Fresno Meats. The three main brands of beef are Circle T Beef, Valley Tradition, and Meadowland Farms."
  • "In November 2011, Cargill completed the acquisition of Provimi, a global animal nutrition company for €1.5 billion ($2.1 billion US).[19] On April 1, 2012, Cargill completed a purchase of a cat and dog food plant in Emporia, Kansas. It was previously owned by American Nutrition.[20] In December 2014, Cargill finished commissioning a $100 million Indonesian cocoa plant.[21]"
  • "On February 1, 2018, Cargill completed the purchase of Pro Pet, a pet food manufacturing company. Pro Pet had three manufacturing facilities, one in Owatonna, Minnesota, one in Kansas City, Kansas, and one in St. Mary’s, Ohio. In November 2018, Cargill sold its 13 crop input locations in Ontario, Canada to La Coop Fédérée.[25] In 2018, Cargill made a $25 million investment in Puris, a supplier of pea protein used in Beyond Meat products. In 2019, Cargill invested an additional $75 million.[26]"
  • "As of 2016, Cargill operates in 70 countries across six regions around the world.[38]"
  • "In 2019 the NGO Mighty Earth released a 56-page report on Cargill. Mighty Earth chair and former U.S. Congressman Henry A. Waxman called Cargill "the worst company in the world" and said it drives "the most important problems facing our world" (deforestation, pollution, climate change, exploitation) "at a scale that dwarfs their closest competitors."[47][48][49]"
  • "In 1971, Cargill sold 63,000 tons of seed treated with a methylmercury-based fungicide that eventually caused a minimum of 650 deaths when it was eaten. The fumigated seed grain was provided by Cargill at the specific request of Saddam Hussein[61] and was never intended for direct human or animal consumption prior to planting.[62]"
  • "In 2003, Cargill completed a port for processing soya in Santarém in the Amazon region of Brazil, dramatically increasing soya production in the area and, according to Greenpeace, speeding up deforestation of local rain forest.[69] In February 2006, the federal courts in Brazil gave Cargill six months to complete an environmental assessment (EA). Initially supported by job-seeking locals, public opinion turned against the port as jobs have not appeared. In July 2006, the federal prosecutor indicated they were close to shutting down the port.[70] Greenpeace took its campaign to major food retailers and quickly won agreement from McDonald's along with UK-retailers Asda, Waitrose, and Marks & Spencer to stop buying meat raised on Amazonian soya. These retailers have, in turn, put pressure on Cargill, Archer Daniels Midland, Bunge, André Maggi Group, and Dreyfus to prove their soya was not grown on recently deforested land in the Amazon. In July 2006, Cargill reportedly joined other soy businesses in Brazil in a two-year moratorium on the purchase of soybeans from newly deforested land.[71][72]"
  • "Palm oil Cargill sells large volumes of palm oil, which is found in many processed foods, cosmetics and detergents. Most palm oil is obtained from plantations in Sumatra and Borneo, which have been heavily deforested to make way for them.[74] Cocoa On September 13, 2017 NGO Mighty Earth released a report[75] documenting findings that Cargill purchases cocoa grown illegally in national parks and other protected forests in the Ivory Coast."
  • "Air pollution In 2005, the company settled with the Department of Justice and Environmental Protection Agency over Clean Air Act violations, including a plan to invest over $60 million in capital improvements for clean air controls, after a joint federal and state effort that included Alabama, Georgia, Indiana, Illinois, Iowa, Missouri, Nebraska, North Carolina, North Dakota and Ohio.[81] In 2006, NatureWorks, a subsidiary in Nebraska, settled with the state over inadequate air pollution controls.[82] In 2015, Cargill settled with the EPA over Clean Air Act violations in a plant in Iowa.[83"
Quotes
  • "What makes an organization last for more than 150 years? Across the decades, Cargill has remained true to the vision of founder W.W. Cargill: helping farmers prosper, connecting markets and bringing consumers the products they’re seeking. Along the way, we’ve advanced how food and agriculture work, with breakthroughs that changed what was possible. As we’ve pursued new opportunities, we have always done business responsibly and in a way that makes us proud. It’s what unites us and drives us to find ways to do things better each day, so we can sustainably nourish the world well into the future."
  • "1880 After moving his operations to La Crosse, Wisconsin, in 1875, W. W. Cargill expands his business beyond grain, handling commodities like coal, flour, feed, lumber and seeds, as well as investing in railroads, land, water irrigation and farms."
  • "1885 W. W. Cargill and his two brothers own or control over 100 grain storage structures across Minnesota and the Dakotas, amounting to a total grain capacity of over 1.6 million bushels."
  • "1945 After World War II, the company diversifies, growing its feed business with the acquisition of Nutrena Mills. Cargill also purchases a soybean meal and oilseed processing plant."
  • "1953 To conduct business in Europe, Cargill establishes a separate company known as TRADAX. To explore similar expansion into Asian markets, the company acquires Kerr Gifford, a US grain dealer based on the Pacific Coast."
  • "1988 Cargill’s portfolio of products and services expands significantly. Alongside grain, feed, seeds, oilseeds and corn milling, businesses include chemicals, cocoa, coffee, cotton, eggs, fertilizer, financial services, flour, juices, malt, meat, molasses, peanuts, petroleum, pork, poultry, rubber, salt, steel, turkey and wool."
  • "1999 Cargill establishes an official Strategic Intent and revises its company architecture, reorganizing its traditional divisions into 102 business units focused on its customers, innovation and performance."
Quotes
  • "2019 Annual Report $2.82B in adjusted operating earnings $5.19B in cash flow $113.5B in revenue $2.81B invested in strategic acquisitions, joint ventures, and new and existing facilities"
  • "Traceability Mapped the farms of 110,000 cocoa farmers globally, representing 48% of our direct supply chain Maintained 100% traceability to the mill in all key palm oil destination markets and continued work toward a 100% traceable, transparent and sustainable palm oil supply chain, with 92% of volumes traceable to the mill and 42% traceable to the plantation"
  • "Earnings were led by our North American protein businesses. With steady domestic and export demand, and plentiful cattle supplies, the beef business posted its third consecutive year of strong performance. Value-added egg products also did very well. Conversely, a mix of operating and market challenges across regions decreased results in our global poultry business. "
  • "Providing solutions across multiple commodities and countries, our metals, risk management and trade finance businesses successfully navigated volatile markets to each achieve higher earnings for the year. "
  • "Grain origination and oilseed processing in North America and Europe posted improved results, but the market uncertainties and commodity flow distortions unleashed by trade tensions negatively impacted agricultural supply chain earnings globally."
  • "Animal nutrition results trailed last year, as the aqua, compound feed, premix and feed additive businesses faced many regional challenges, including the spread of African swine fever across China and nearby countries."
  • "In food ingredients, our edible oils business outpaced the prior year. Though up slightly in Europe, cocoa and chocolate earnings in total were hurt by operating issues in North America. Starch and sweetener results decreased due to higher energy and raw material costs in Europe and low ethanol prices in the U.S."
Quotes
  • "Cargill Inc. is the largest private corporation in the United States. Long known as a merchant of commodities, by the early 1990s Cargill had become one of the largest diversified services companies in the country. In addition to merchandising grains and oilseeds, Cargill operates as a transporter of commodities; a supplier of feed, seed, fertilizer, and other products to agricultural producers; a processor of food ingredients (such as corn syrup and flour) and of brand name products (such as meat and poultry products); an industrial producer of steel, salt, and other products; and a financial and technical services provider. Its diversified operations became increasingly important when the trade in commodities suffered a prolonged downturn beginning in 1980."
  • "Cargill's corporate philosophy, shaped by its participation in the grain trade, emphasizes secrecy and an intricate worldwide intelligence network. Robert Bergland, former secretary of agriculture, told the Minneapolis Star and Tribune that "they probably have the best crop-marketing intelligence available anywhere, and that includes the CIA." While secrecy provides an enormous operational advantage to Cargill, it creates problems as well. One frustrated journalist summarized Cargill as a "secretive, inbred and suspicious" company."
  • "William Wallace Cargill began his career in the grain business in 1865 in Conover, Iowa. The business grew as it followed the expansion of the railroad into northern Iowa after the Civil War. In 1875 William Cargill moved the headquarters of his company to La Crosse, Wisconsin. He formed several different partnerships with his brothers, Samuel and James. With Samuel he formed W. W. Cargill and Brother in 1867, which became the W. W. Cargill Company in 1892. James Cargill operated in the Red River Valley in North Dakota and Minnesota with a partner, John D. McMillan. In 1882 the partners sold their Red River Valley grain elevators to William Cargill in order to raise more capital. Then in 1888, James, William, and Sam Cargill formed Cargill Brothers. In 1890 this firm became the Cargill Elevator Company, headquartered in Minneapolis, Minnesota."
Quotes
  • "CUSTOMER SEGMENTS Cargill serves a broad range of customers across its operating sectors. The company’s customers typically operate in one or more of the following sectors: Farming and Agriculture, including independent farmers, agricultural companies, meat and poultry companies, and food and commodities producers; Foodservice, including restaurants, fast food chains, specialist catering companies, and cafeteria operators – including in schools, hospitals, and prisons; Retail and Consumer, including consumer packaged goods companies, food and grocery retailers, and wholesalers and distributors; and Industrial, including metals producers and processers, oil companies, chemical and lubricants companies, and road maintenance companies."
  • "Cargill has operations across the Americas, Asia Pacific, Europe, Africa, and the Middle East. The company’s largest market is North America, which accounts for around 35% of its revenue, followed by Asia Pacific, which accounts for around 29%, and Europe, the Middle East and Africa, which accounts for 25%."
  • "Cargill provides value to its customers in the following ways: Brand Recognition and Reputation – Cargill has a positive track record that dates back to the nineteenth century, the company is among the largest and most respected companies in its field and is able to attract business on the strength of its reputation; Broad Portfolio of Products and Services – Cargill offers a broad range of products and services, its offering spanning multiple industries, including the industrial, agricultural, and consumer goods, and foodservice industries; Expertise and Experience – Cargill employs experienced and well-trained management personnel and technical that help to set the company’s offerings apart from those of its competitors, and has the ability to attract the best candidates for its various internal roles; Provision of Industry Insights – Cargill offers its customers a wide range of insights and data through its proprietary databases, including data analytics, risk management data, market insights, and financial solutions that support the operations of its clients; and Global Operations and Reach – Cargill has a broad geographic reach, including operations across the Americas, Asia Pacific, Europe, the Middle East, and Africa, that enables it to serve a large customer base quickly and efficiently."
  • "Cargill seeks to establish longstanding relationships with its clients by providing high-quality, reliable, and efficient services its operating segments. The company works closely with its customer, offering sales and service contracts that are tailored to their individual needs. The company employs teams of customer service and relationship management personnel that ensure that its customers are served quickly and efficiently. It is through this effective service the quality of its products that the company attracts recurring business."
Quotes
  • "Discover that we are one of the world’s leading producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages and healthy snacks in Europe, Africa, the Middle East, and the countries formerly part of the Soviet Union."
  • "We are dedicated to meeting the current and future needs of consumers worldwide. In fact, our vision is to become the world’s leading global supplier of healthful, wholesome and nutritious fresh and prepared food and beverages for consumers of all ages."
  • "Here, you can get an overview of our many strengths, including the wide range of our fresh and prepared products, our vertically integrated supply chain, our global distribution capabilities and our world-class brand. Find out about our products that satisfy today’s health and wellness-conscious consumer demands with a level of convenience that fits perfectly into their active lifestyles. All this uniquely positions Fresh Del Monte as the ideal supplier to supermarkets, foodservice operators, convenience stores and restaurants to offer our delicious products."
  • "1886 First use of the Del Monte name on a food product. Del Monte coffee premieres as a premium blend of coffee packaged for the prestigious Hotel Del Monte in Monterey, California. 1892 The Del Monte® Brand is introduced when the firm expanded its business and selected Del Monte as the brand name for its new line of canned peaches. 1920 California Packing Corporation (CalPak) establishes stringent quality specifications for its premium brand, Del Monte®. Early ads assure customers “Not a label, but a guarantee.” 1929 With prices plummeting and overflowing warehouses, CalPak is forced to tighten its belt. Always a premium quality product, Del Monte® advertising takes advantage of the many low-cost brands on the market and focuses on the value of dependable quality. 1955 Del Monte® Pineapple Grapefruit drink is introduced. Del Monte® Stewed Tomatoes – a new product inspired by the recipe of an employee’s mother – becomes an instant classic. 1967 Long known for its favorite brand, CalPak changes its name to Del Monte Corporation. 1968 Del Monte Corporation acquires West Indies Tropical Fruit Company of Coral Gables, Florida. 1973 Del Monte Corporation becomes first major food processor in the United States to include nutrition labels on its products. 1979 Del Monte Corporation shareholders agree to a merger with R. J. Reynolds Industries. 1989 Del Monte Corporation divides into two separate entities; Del Monte Tropical Fruit and Del Monte Foods. 1993 A new owner of Del Monte Tropical Fruit changes name to Fresh Del Monte Produce N.V. 1996 Fresh Del Monte Produce N.V. is acquired by Freshglo Limited, a Cayman Island based company. Introduced the first new pineapple variety in more than 15 years, the Del Monte Gold® Extra Sweet pineapple. Began expansion of melon program. Further diversified distribution capabilities by adding new distribution centers in key markets, adding additional value-added services to customers. 1997 May 1997, Freshglo Limited changed it’s name to Fresh Del Monte Produce Inc. October 1997, Fresh Del Monte Produce Inc. begins trading on the NYSE under the FDP ticker symbol (FDP). 1998 Acquired several subsidiaries from its parent company IAT Group Inc. which were engaged primarily in the production, transportation, distribution and marketing of deciduous fruit and other fresh produce on a worldwide basis and conducted operations in Chile, the United States, the Netherlands and Uruguay. 2002 Acquired assets of U.K. based Fisher Foods Limited’s chilled division, expanding growth in the fresh cut category. 2003 Acquired Standard Fruit and Vegetable Co., Inc., a Dallas based distributor of fresh fruit and vegetables. Acquired 100% ownership in Envases Industriales de Costa Rica S.A. (ENVACO). Acquired Expans Sp. 2.0.0. a Poland-based distributor of fresh fruit and vegetables. Acquired Country Best Produce, a leading U.S. East Coast processor and packager. 2004 Acquired Del Monte Foods Europe, a leading producer and distributor of prepared fruit, vegetables and beverages in Europe, Africa, the Middle East and the Countries formerly part of the Soviet Union. 2008 Acquired the Costa Rican group Caribana, substantially increasing Del Monte® branded banana and Del Monte Gold® Extra Sweet pineapple production from Central America. 2013 Acquired agricultural production land, packing houses and farm equipment in Florida and Virginia."
  • "Business divisions: land trucking, ocean shipping, operations and sales, packaging. "
  • "Land trucking. At Del Monte Fresh Produce, we manage our supply chain to provide our products to our customers, at the very peak of freshness. A key element in our logistics network is our land trucking operation with 24/7 coverage, 365 days a year, monitors all loads and provides our customers updates of deliveries in a timely manner. Del Monte Fresh Produce’s logistics department manages the cold chain from source to customer using a mix of asset-based carriers and our trucking company, Tricont Trucking Company. Asset-based carriers are required to comply with Del Monte Fresh Produce’s cold chain policy and procedures, in addition, all of our approved asset-based carriers go through on-site inspections prior to loading. Tricont Trucking Company is used to support Del Monte Fresh Produce’s distribution network in North America and makes sure the product is managed within the cold chain, with associates that focus on proper product delivery, procedures and customer service. Our trucks meet strict safety and cold chain regulations, and our drivers and regular maintenance help to ensure compliance."
  • "Ocean Shipping. From the moment our products are harvested, speed is of the essence. Therefore, we swiftly transport our fresh produce and beverages to markets worldwide using a fleet of 11 owned and 6 chartered refrigerated vessels. We move the products via trucks to the seaports served by our ships. Our products are then carefully loaded into chilled holds for safe transportation. Our ships are also used to transport the materials we use to pack our products and cargo provided by our commercial cargo customers. In total, 90 percent of our products are transported by vessel to distribution facilities operated by us or our agents. Once we unload the products and perform final quality checks, our distribution facilities, with their state-of-the-art refrigeration warehouses move our products out as quickly as possible to our customers. To maximize the efficiency of our ships and the profitability of our shipping operations, we also offer inbound and outbound ocean cargo carrier services to third parties."
  • "Operations and Sales. We market and distribute our products to retail stores, foodservice operators, wholesalers and distributors in over 100 countries around the world. As a result, we conduct logistics operations on a global basis, transporting our products from the countries in which they are grown to the many markets in which they are sold worldwide. Maintaining fruit at the appropriate temperature is an important factor in preventing premature ripening and optimizing product quality and freshness. Consistent with our reputation for high-quality fresh produce, we must preserve our fresh fruit in a continuous temperature-controlled environment, beginning with the harvesting of the fruit in the field through its distribution to our customers."
  • "Packaging. The Packaging Development Group works to keep the “fresh” in the fruits and vegetables we harvest daily. Our packaging group strives to ensure that the physical needs of our fruit are addressed in order to protect and maintain freshness. Our packaging is designed for easy packing, rapid cooling and protection from the rigors of transportation. A significant amount of our products are grown in Central and South America and Asia Pacific. As a result, they travel to their global destinations in refrigerated ships. After arrival at our ports, the products are unloaded and transferred to our distribution centers or delivered direct to our customer by refrigerated transport. Our fresh cut fruit and vegetable products are also transported via refrigerated transport, requiring extraordinary attention to quality in both product and packaging for fresh arrival. With fresh fruit and vegetables, the challenge is to design secondary packaging (primarily recyclable corrugated) that will stand to the rigors of transport and handling while protecting the fruit and vegetables from bruising when exposed to moisture, shock and vibration. To accomplish this goal, the professionals in our packaging development group work to design packaging and graphics, select the proper materials and also specify pallets and loading specifications. In our fresh cut operations, we are also able to utilize plastics that are not only sustainable (corn based PLA), but recyclable as well. This helps us meet the demands of delivering the freshest and most visually appealing product to each and every one of our retailers every day while also protecting the environment."
Quotes
  • "Del Monte traces its origins to the pioneering 19th-century figures in West Coast canning, Daniel Provost and Francis Cutting. Along with the influx of settlers from the California gold rush came a need for new regional food manufacturers, and these men led the way. While Provost holds the distinction of forming the first foodpacking operation there, Cutting became the first of a long line of entrepreneurs to manufacture metal and glass containers--rather than having them shipped from the East--and the first to export California-processed fruit back to the East Coast as well as Europe. As the California orchard industry grew, so did the canning industry; a virtual boom in agriculture came to the region during the 1800s, following construction of the first railroad networks, and dozens of canneries were established. One such business, the Oakland Preserving Company, was launched in 1891. At this time, uniformity in labeling and product quality, under the auspices of the recently established California Canned Goods Association, was becoming a foremost marketing concern. The intent of this service organization was to ensure that the label "California grown" stood for an uncommonly high standard; its efforts ultimately led to effective legislation governing the canning industry. Oakland's own efforts in this area generated the Del Monte brand, a name that would soon become synonymous with exceptional value."
  • "Talks of consolidation among canners eventually produced the California Fruit Canners Association (CFCA) in 1899. CFCA represented a historical merger of 18 separate canneries, including the Oakland Preserving Company. Upon consolidation, CFCA was so vast that it comprised approximately half of the entire California canning industry and ranked, in effect, as the largest canner of fruits and vegetables in the world. There were several key promoters of the CFCA consolidation, including Frederick Tillman, Jr., of Oakland Preserving; Sydney Smith of Cutting Fruit Packing Company; Robert and Charles Bentley of Sacramento Packing; and Mark Fontana and William Fries of Fontana & Co. By popular assent, Fries became the"
  • "Given CFCA's wide area of operations and the strong wills of its various principals, true integration of the canneries never materialized. Furthermore, the retention of a large number of name brands prevented CFCA from developing a strong, cohesive marketing presence during its early years. Nonetheless, the multidimensional cannery prospered, spreading beyond the borders of California with the acquisitions of the Oregon Packing Company and the Hawaii Preserving Company. Like the other canneries already within the fold, these continued to operate fairly autonomously. However, as William Braznell pointed out in his History of the Del Monte Corporation, "One notable concession made to corporate solidarity was the adoption of the Del Monte label as the association's premier brand." The brand name, courtesy of Tillman and the Oakland Preserving Company, derived from a coffee blend prepared by Tillman and a partner for the Hotel Del Monte in Monterey as early as 1886. Now the Del Monte label graced over 50 products, including squash, sweet potatoes, peppers, berries, jams, jellies, cranberry sauce, and olives."
  • "CFCA's reliance upon commission agents to sell most of its produce led to ...the formation of the California Packing Corporation (Calpak), the immediate ancestor of the Del Monte Corporation. "
Quotes
  • "By offering our products in a ready-to-serve, ready-to-eat style, we are meeting the demands of busy consumers, individual retailers and our many commercial food service customers, including restaurants, schools and hospitals."
  • "Fresh Del Monte Produce Inc. holds leading market position in several key fresh product categories. At the end of December 27, 2019, we believe we are: the largest marketer of fresh pineapples in the United States, and a leading marketer in other markets worldwide; the third-largest marketer of bananas in the United States, and a leading marketer in other markets worldwide; a leading marketer of: fresh-cut fruit in the United States, Canada, Japan, South Korea, the United Kingdom, United Arab Emirates and Saudi Arabia; fresh and fresh-cut vegetable products in North America; grapes and avocados in the United States; non-tropical fruit in select markets; and canned fruit in the European Union (the "EU") and other European and Middle East markets. "
  • "Fresh Del Monte has a unique global network that enables us to source and distribute our products on a worldwide basis. We believe that these sourcing and logistics capabilities, combined with the power of the Del Monte® brand, enables us the opportunity to lead our industry in the future. For example, at the end of December 2019; We source our products from Company-controlled farms and independent growers located in all corners of the globe. We transport our products to key markets via our fleet of owned and chartered vessels. We have six new refrigerated container ships that are scheduled to be delivered commencing in 2020. This ship building program is expected to replace our entire U. S. east coast fleet of ships. We operate 50 global distribution centers, many with cold storage and ripening facilities in key markets worldwide. We operate 24 fresh-cut facilities that serve the needs of consumers in the United States, Europe, Asia and the Middle East, some of which are located in our distribution centers. We operate 17 Food and Beverage stores. We opened a fresh pineapple packing facility in Kenya in 2019 to supply our Middle East market. We have an avocado sorting and packing facility in Mexico. This facility commenced operations in December 2019. We also operate a fleet of approximately 7,000 refrigerated containers."
  • "Our vertically integrated network allows us to manage the transportation and distribution of our products in a temperature-controlled environment, which enables us to preserve quality and freshness and to optimize product shelf life while ensuring year-‘round distribution. What’s more, we continue to expand our network of distribution centers and fresh-cut facilities throughout select regions of the world. These investments meet growing demand from supermarket chains, club stores, mass merchandisers and independent grocers to provide value-added services, including the preparation of fresh-cut fruit and vegetables, ripening, customized sorting and packing, direct-to-store delivery and in-store merchandising and promotional support. In total, we market and distribute our products to retail stores, wholesalers, distributors and foodservice operators in more than 90 countries around the world."
Quotes
  • "Net sales for the full year 2019 were $4,489.0 million, compared with $4,493.9 million in 2018. The decrease in net sales for the full year 2019 were primarily the result of lower net sales in the Company's banana business segment, offset by an increase in net sales in the Company's fresh and value-added business segment. Net sales for the fourth quarter of 2019 were $1,025.2 million, compared with $1,045.9 million in the fourth quarter of 2018. The decrease in net sales in the fourth quarter of 2019 was primarily due to lower net sales in the Company's fresh and value-added business segment as a result of its subsidiary, Mann Packing's voluntary product recall in November 2019, and unfavorable exchange rates."
  • "Gross profit for the full year 2019 was $300.6 million, compared with gross profit of $279.8 million in 2018. Adjusted gross profit was $311.8 million for the full year 2019, compared with adjusted gross profit of $280.0 million for the full year 2018. The increase in gross profit was driven by higher gross profit in all of the Company's business segments, primarily the result of higher selling prices in the Company's banana and fresh and value-added business segments, partially offset by lower sales volume and higher production and procurement costs. Gross profit in the fourth quarter of 2019 was $36.3 million, compared with gross profit of $42.4 million in the fourth quarter of 2018. Adjusted gross profit was $46.7 million in the fourth quarter of 2019, compared with adjusted gross profit of $42.4 million in the fourth quarter of 2018. "
  • "Net income attributable to Fresh Del Monte Produce Inc. for the full year 2019 was $66.5 million, compared with a net loss of $21.9 million in 2018. Adjusted net income was $54.6 million for the full year 2019, compared with adjusted net income of $19.8 million in 2018."