Embed Size (px)
Citation preview
Developing fresh produce value chains for McDonald’s Vietnam
Asia Fruit Congress, 5th of September 2017, Hong Kong
Presentation by Siebe van Wijk
Content
About usFresh Studio at a glance
McDonald’s The Vietnam entry
Top quality fresh The case of onion, iceberg lettuce and beef tomato
Q&ADiscussion
Fresh StudioAbout us
Fresh Studio at a glance
Professional services firmStrategic Management ConsultingResearch & DevelopmentOperations
Value chain drivenMulti-disciplinary teams in Vietnam, Myanmar the Philippines: 80 staff360° approach
Located in AsiaVietnam offices: Hanoi, Dalat, HCMC, VinhLongMyanmar office: YangonWorking in Philippines, Vietnam, Thailand, Indonesia, Cambodia, Laos, China, Malaysia and Japan
Winner of “Most Innovative” and “Most sustainable company” of the year
Vietnam
Myanmar
China
Laos
Thailand
Cambodia
Hanoi
Dalat
Ho Chi Minh CityVinh Long
Yangon
Our mission
“Grow better lives from farmers to consumers, by making our clients successful in the production and marketing of sustainable food.”
Our value chain approach
Production Processing &packaging
Sales & distribution
Marketing &communication
360°
Production Processing &packaging
Sales & distribution
Marketing &communication
R&D Farms: crops & aquaculture
R&D farmsDa Lat: 1.5 ha R&D farm focusing on vegetables and potatoesHai Duong: 1 ha R&D farm focusing on potatoes and cornVinh Long: 6 ha R&D fish farm
Develop and testNew production methods, inputs, varieties and species.Determine value added for Vietnamese farmersAssist our clients in introducing these successfully tested new technologies to our clients
State-of-the art facility for fresh and processed food companies to provide valuable sensory evaluations of the market to develop food products and to make your products successful.
Insights in: Shelf life, benchmarking, consumer acceptance, formula adjustment, product introduction, concept testing, line extension…
Food lab facility according to latest quality and hygiene standards (ISO) to demonstrate the importance of safety and quality related to food preparation
R&D in marketing: our food lab
Proven track record with selected clients
The case of McDonald’s VietnamTop quality produce meeting the highest international standards
PRODUCT CHAIN
The
CLIENT VALUE CHAIN
About McDonald’s
Founded in 1940, California, USA
Today36,900 restaurants375,000 staff68 million customers per dayRevenue US$ 25 billion
Vietnam (96 million people)First new McD country opening in 15 years!First restaurant opened in Ho Chi Minh City in February 2014Currently 16 restaurants in HCMCEnd of 2017, first Hanoi restaurant will open
The Vietnamese were curious to try
Three healthy items
The three healthy items needed for a burger:Iceberg lettuceBeef tomatoOnions
McD started by in Vietnam importing all products except for fresh produce
McDonalds contacted Fresh Studio to prepare the local sourcing
Domestic sourcing preparations for fresh produce started in 2013
Phase 1: first five restaurantsWhole head iceberg lettuce
Phase 2: from restaurant number sixShredded iceberg lettuce
What steps were taken?
Screening and selection of supplierThe Fruit Republic was selected Strong QA system Experience with fresh cut production
(fruit) – BRC certified
Screening and selection of iceberg, beef tomato and onion farmers
Training of farmers in:Production protocolMcDonaldsGAP standard
Training of the supplier in:Production of shredded lettuceThe McD system
Steps to become a McDonald’s Supplier
Primary Requirements for ALL Food SuppliersSecondary Requirements for Core
Product Suppliers and Permanent/Reoccurring Suppliers
Generic Requirements
Business administration related:• Signed compulsory business agreements
o CoC, NDA, BRCA o RM/FP specifications approved by McDo Branded product specification when
applicableo Compliance with QA-SQMS requirements
Supply Chain Food safety and Compliance related:• SWA self-assessment completed• Compliance with applicable laws and regulation relative
to food production for where they are manufactured and distributed
• HACCP pre-requisiteso Sanitation, GMP, Pest and Chemical controlo Approval process for sources of supplyo Allergen and sensitive ingredient control o Water, ice and gas quality control
• GFSI benchmarked certification or SQMS full/10 Core requirements audit conducted annually
• Nanotechnology policy• Sustainable sourcing commitmentsQuality System related:• Emergency key contact list and communication plan• Shelf life validation whenever possible, per McDonald’s
shelf life protocol• Approved rework policy• Product transparency inclusive of ingredient statements,
allergens and sensitive ingredients and calculated nutritional data
Geographic and/or Market specific• Non GMO where required by the local market• Certain geographic or market ingredient requirements,
e.g. no artificial color/flavors
Category Specific Requirements
• ASL requirements fulfilledo E.g. BSE Firewalls, GMP/HACCP, Bio-
security, VAS, Religious slaughter• Documented/verified sourcing of raw material from an
approved source• Good Agricultural Practices for Produce/Agricultural
products food safetyo Farms are GAP auditedo Production procedures in line with a
recognized agricultural scheme• Microbiological testing program where required• Cook validation (for food safety) of raw protein products• Compliance with list of globally excluded ingredients• McDonald’s recognized best practices/policies for:
o Traceability
o Product salvage
o Foreign object detection (metal, plastic, glass, bone, etc.)
o Sifter (bakery)
o Potato storage practices
• Demonstrated compliance with full SQMS, alternating core requirements (according to “Audit Matrix”)
• SWA audit completion within 6 months of startup• Approval of product from regional Quality Center (QC)
following the product approval process (only relevant for core products)
• Sourcing of McD approved par-fry oil for core potato and poultry products
• Sustainable sourcing commitments such as MSC, Rainforest, Beef/Poultry, etc.
• Validated supply chain contingency plans• Process defined for the selection, monitoring and
assessing of raw material supplier performance• Analyzed nutritional data provided for products produced• Food security/defense program• Global Food Vision compliance• Sensory evaluation utilizing calibrated McD specific
equipment such as grills, fryers, UHC/holding equipment for the preparation and evaluation of products following McD O&T manual.
GlobalGAP, Organic, ETI, GRASP and BRC grade-A certified Lowlands: 4,000 m2 temperature controlled pack house with 700 m2 high care fresh cut
facility Highlands: 1,500 m2 temperature controlled pack-house, 5 ha modern greenhouses One distribution center in Hanoi and one distribution center in HCMC Successfully launched own brand in all top 10 supermarket chains in Europe and Vietnam 400 staff
McD: Fantastic supplier relation management
Suppliers McDcorporation Restaurant
owners
The value chain for iceberg
McDonalds GAP certified iceberg lettuce farms
McD, Dakao, HCMC
Cold transport from pack house to processing facilityHACCP certified pack house
with vacuum cooler
BRC grade 1 certified fresh cut facility, MCD SQMS-12NNs
and ETI certified facility
Cold delivery from processing facility to MCD restaurants
Standards
A relative comparison of the 3 standards based on number of specific items/ control points they cover, which does not reflect the actual benchmarking between the standards.
0
50
100
150
200
250
Rela
tive
Num
ber o
f con
trol
poi
nts
Relative comparision different standards
Dalat production area for fresh produceUnique production area in Southeast Asia
50,000 ha of vegetable production
1,000 – 1,600 meters above sea-level
Temperate climateDay: 28o CNight: 15o C
Year round production possible
Dry season: December till May
Rainy season: June till November
Currently the sector is moving from outdoor to indoor production
Dalat
CityPopulation
in mln
# McD
rest
# MCD
rest per
1 mln
Malaysia 31 314 10
Thailand 69 180 3
Singapore 6 125 25
Hong Kong 7 200 29
Philippines 103 400 4
Taiwan 23 388 17
Vietnam 96 16 0.2
Myanmar 53 0 0
Dalat can develop in to regional McD supplier
Dalat lettuce
A wide range of lettuces are grown year round in Dalat: >3,000 ha
……..But iceberg was new and hardly locally consumed
Only 15 ha of iceberg production in Dalat when we started
Prices volatile, especially in rainy season.
Dalat climate data
One way to deal with the rainy season…..Completing domestic production with imports: onions
Year round onion supply program for McD
Supply country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dalat, Vietnam
New Zealand
The Netherlands
To ensure good quality onions in the rainy season
The Fruit Republic started to import onions from New Zealand and the Netherlands
Main aim for HORECA clients
But also developed the market for Vietnamese end consumers
Introducing NZ onions to VN consumer
Don’t make your product a commodity
Controlling the chain: in the dry and rainy seasonThe case of iceberg
Iceberg farming: open-field
Works well in the dry season
But very difficult in the rainy season
But in rainy season: high production risk
Rainy season: production innovations required
Iceberg farming: indoorThe Fruit Republic invested in 10 ha modern greenhouse facility.
First 2 ha in production
ProducingIceberg lettuce on hydroponics systemBeef tomatoCucumbers for new McD menu item
No more issue in rainy season
Biological control in greenhouse
Farming in a greenhouse allows biological control
Step by step developing a complete biological control program
Vacuum cooler
Modern vacuum cooler
Cools leafy vegetables in the best and fastest way
Results in good shelf life
Shredded lettuce production line
Cutting of the iceberg lettuce
Strict quality control
Result….TFR-Vietnam no 1 in Asia-Oceania region
Annual McD benchmarking review for Asia/ME/Oceania suppliers 2016
Lessons learned
Volume forecasting was hard at first:For iceberg we need forecast of 3 monthsBeef tomato 6 monthsNew country for McD, new restaurantsEvery 2 months a new restaurant
Rainy seasonHail stormsShort term: contingency plans were prepared and worked: fly in from AustraliaLong term: greenhouse farming
Solutions were always foundThanks to very good partnership with the McDVietnam and the McD Global team
Who is next?Creating sustainable food value chains in Asia
Thank you!
Contact Managing director (HCMC):Mr. Siebe van [email protected]
Contact R&D director (Hanoi):Mr. Ren é van [email protected]
www.freshstudio.vn
/freshstudio
freshstudioasia
/freshstudio
Questions Your challenges Ideas Next steps
