Food Processing - May 2008 - (Page 43)

Managing the global plant You shouldn’t run foreign plants from Springdale or Buffalo, but you can put in place the proper local infrastructure to increase the chances of success. - By David Feder, Contributing Editor GoinG Global is a Given. as overseas economies move toward creating a universal middle class with increased individual spending power, food and beverage makers recognize vast untapped demographics of consumers. This is especially important when considering the tighter purse strings of the middle-class consumer here at home. but before going overseas, anyone planning to build, manage or link up to an international operation has to lay the groundwork or risk all. “it starts with having the right people on the ground, those who really understand the marketplace,” says Kevin Malchoff, president of the international business group for rich Products corp. (www.richs.com), buffalo, n.Y. “That will ensure you have an accurate understanding of the unique cultural aspects of the country you are attempting to do business in, and ultimately will resonate with the customers with whom you’re attempting to build a relationship.” That said, Malchoff also points out there are certain values that are universal across cultural barriers. “all of our customers across the globe are highly focused on product quality and safety,” he says. “While laws and regulations may differ from country to country, demonstrating your ability as a company www.foodprocessing.com to produce high quality, safe products in a safe process are the table stakes of doing business anywhere in the world.” The standards rich’s sets for itself in the U.s. are the same standards it follows everywhere else. The company’s motto on the subject is, “Do what’s right no matter what.” based on that, rich’s doesn’t compromise safety or quality, even if the standards are lower in the host country. another critical aspect to consider when planning international expansion is logistics, especially for food companies with refrigerated or frozen products. “The distribution infrastructures in developing countries just aren’t as advanced as they are in north america, and it can be a challenge to find a reliable cold-chain transportation and warehousing network to meet your needs,” Malchoff says. To solve this problem in china, rich’s established a joint venture relationship with a local cold chain logistics company, KX logistics. “The partnership we developed with KX provided us with much greater distribution access in china and confidence our products will be warehoused and delivered in a quality-preserving and safe manner,” explains Malchoff. “it’s been a key driver in the accelerated growth we’ve experienced in china.” may 2008 food processing • 43 http://www.richs.com http://www.foodprocessing.com

Table of Contents Feed for the Digital Edition of Food Processing - May 2008

Food Processing - May 2008 Editor’s Plate NewsBites The Trends Rollout Food Biz Kids Product Developer turned Bean Counter The top-selling new products of 2007 The open road Back to the Big Easy Managing the global plant A new column with answers to your plant-fl oor questions New Supplier Products Toops Scoops

Food Processing - May 2008

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