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BBB4M Unit 1: McCain
Transcript of BBB4M Unit 1: McCain
in International Trade
McCain Foods Limited
By: Kyle Langevin & Tyanna Cellucci
Products and Services:
Ultra Thin Crust Pizza
Deep ‘n Delicious Minis
Pizza Pockets Snacks
Deep ‘n Delicious Cake
In 1957 Wallace and Harrison McCain, supported by brothers Andrew and Robert, founded McCain Foods Limited in Florenceville, New Brunswick, Canada.
In 1909 McCain Produce was created; a seed potato export company
1950-60: Heightened demand for easy meals with women going to work and the Baby Boom
Encountered a problem with the potatoes that were growing
Learned farming techniques that have been handed down to the present day
Size of the Company:
The company has
46 manufacturing facilities
around the world, accompanied by
44 sales offices
globally as well.
worldwide, the company brings in a total net sales of
$7 billion annually
3,200 grower partners
, as well as
36,700 supplier partners
Extent of International Business:
Overall, one may say that McCain Foods Limited is a very international company.
Only 12 out of the 55 total manufacturing facilities are in Canada
Only 3 out of the 44 sales and marketing offices are located in Canada
McCain employs a total of 36,700 non-grower suppliers worldwide and 3,200 growers under contract worldwide, employing approximately 40,000 people globally.
McCain products are sold in over 130 countries and are also the world’s largest manufacturer of frozen potato products
McCain does not have a high export value as their products are being manufactured all around the world, having both manufacturing facilities and sales facilities in the same place.
McCain Foods, Potato Growers Fixing 'strained Relationship'
McCain Food and Agriculture director John Jackson, admitted to having damaged relationships between the company and its local potato growers over the past years.
Jackson stated there was little scope in short term, for an increase in price paid to farmers, since McCain needed to keep its own price structure in order.
“With the amount of imports coming in we have to work together to reduce costs,” Mr Jackson said. “We are working together to look at costs at the factory but also on the farm.”
McCain Foods' Journey to Self-Service Analytics Includes Strong IT Role
How McCain responds to changes in the external environment
McCain Foods installed LED screens in all production facilities allowing any member to compare their own plants statistics in relation to the other 50 around the globe.
CIO Roman Coba cautioned attendees at their conference in Las Vegas, stating “while putting analytics in the hands of key decision makers is a great way to empower them to make better decisions, they have to use a dataset approved by IT. Without that, people could be making decisions based on data from anywhere.”
Concerns aside, Coba stated that the business benefits are real, and measurable, stating that many parts of the company's productivity went up by “double digits” after the implementation.
Potato growers in Manitoba, New Brunswick and Prince Edwards Island are going to need to reduce the prices there are charging for potatoes. Looking into statistics from Washington State, there is currently a 50¢ price difference, making many people look to alternative sources for their potatoes.
According to Statistics Canada, there has been a fluctuation in potato crops over the past years, going from 380,000 in 2008, to 360,500 in 2009, and finally rebounding to 373,400 in 2010. This has caused McCain to propose a 5% decrease in price, for potatoes grown in Manitoba.
“We absolutely have to become more cost competitive if we want to keep volume here in Canada.” said a representative from McCain Foods. She also stated they were looking into many farms in Alberta, as it would allow them to pay slightly more, but for a much higher yield, that many alberta farms produce.
: “McCain It’s All Good is everything to us. It’s our philosophy, and it’s integral to our business strategy.”
McCain stands by four main corporate responsibilities:
Respecting the environment
Positively impacting other people
Doing good things
More corporate responsibilities:
A responsible and profitable business over the long term.
Equitable compensation, a safe and respectful work environment, opportunities for personal development and sustainable business practices.
Quality products that are safe, affordable, manufactured responsibility and represent the lifestyle desires of their consumers.