About the CompanyThe McCains Foods company was founded in 1957 in Florence, New Brunswick, Canada and is now a world-leading food company. The company grew significantly over the years celebrating its 60th anniversary this year with sales of 9 billion Canadian dollars. Being one of the world’s largest manufacturer of frozen French fries, McCain Foods processes 6.
5 billion potatoes each year making fries its driving force as one in every three french fries is a McCain french fry. Other than fries, McCain also produces frozen desserts, frozen vegetables, fruit juice concentrates and other oven meals and snacks for foodservice and retail industries. The business grew remarkably from having 30 employees from its early years to 20, 000 employees today worldwide. The successful story of this family owned business started with brothers Harrison and Wallace McCain with the help of their other brothers, Andrew and Robert. The passion for growing potatoes runs through generations of this family as their father and grandfather were potato farmers.
This enabled the McCain brothers to consider going into the frozen food business, working with passionate farmers as partners for the past three generations. Initially, there were difficulties forming the business as it was during the early days of the frozen food industry, not providing the brothers with much knowledge of the frozen foods field. Anticipating of being innovators in a new era of food processing, today McCain Foods works with 150 families of farmers in Canada alone making “good food that is tasty, convenient and affordable”.Productivity and CompetitivenessMcCain Foods uses technology today to enhance the quality of their products by seeking to improve farming with drone technology. Drones are flown over the fields in order to collect data which aids farmers into knowing what is best and needed for crop health, resulting in optimization of their products. The data provided assists growers by telling them how to control the distribution of moisture in soil to pests and disease pressure. This shows how the company evolved over the years as there were no such technology before and now it will revolutionize the world of agriculture, while trying to improve sustainability and cost efficiency.
For distribution, McCain Foods does not use their own vehicles but instead distributes them to wholesalers and retailers, therefore not selling the products directly to their consumers. The company partnered with the Day Ross Group in order to share their expertise in sustainable agriculture and to reduce environmental footprint. McCains has also evolved tremendously regarding the promotion of their products by the use of emotions in their tagline “It’s All Good”, making consumers aware of their healthier options.
As of 2000, the company ensures that product labeling provides clear information on nutritional facts such as level of fats, salt and sugar. The company evolved by considering what their consumers wants and needs, in a more sustainable and efficient way. Extent of International BusinessThe company has 53 sites and operates across six continents in more than 160 countries working with 3,850 farms globally.
In 1965, McCain Foods expanded their company internationally for the first time by entering the British market, following Australia in 1968. This was successful for the business as the results to this decision lead to the company entering other markets such as the U.S in 1971. In 1969, the company opened its first international facility in the U.S and now has 55 facilities operating worldwide.
Mccain Foods has many head offices around the world including the U.S, United Kingdom, Australia, New Zealand, Korea, South America and India. With more than 35,000 suppliers worldwide, the company has manufacturing plants in all the continents around the world with 8 plants in Canada, 11 plants in the U.
S, 3 plants in Latam, 5 plants in the U.K, 16 plants in Europe, 1 plant in China, and 1 plant in India being the latest. Mccain Foods does not import any goods or services as they fully rely on their committed employees as they are their competitive advantage, supplying the company with efficient production. For emports, the company sells 80% of their products to markets where the products are made with export sales of over 50 million dollars. Global Presence/AdaptabilityOver the years, McCain foods has done many things to stay relevant by creating customer loyalty.
Realizing that time and people’s preferences changed since the company first opened, McCains Foods surveyed Canadians on their thoughts regarding frozen foods, the results being that 90% of people wanted to know what goes into the food products that they purchase. In 2010, the company responded to the consumers by creating the “It’s All Good” campaign that is built upon the principles that the products should have easy to understand ingredients, good flavour and nutritional quality. Almost 90% of the frozen foods are in line with the program and implementation continues. As of now, there has been an increase in sales for pizza of 8% and 10.
5% increase in sales for fries, the company clearly remaining to be competitive in the frozen food industry. This company succeeded in creating a global presence because they helped “warm up” the frozen aisle ever since the launch of the It’s All Good campaign. More consumers shop its offerings making McCains one of Canada’s largest food manufacturer by revenue. The company also targets their business to areas where they have competitive advantages such as investing in product innovation and divesting products that do not work or sell anymore. Because of the company’s attention to growth strategies, it has been recognized as a “Best Managed Company” by Deloitte along with several other industry awards leaving positive impacts on the company.