Chapter 2 - alianzateam

OUR CLIENTS, CONSUMERS AND SUPPLIERS

2019 was a year of great satisfaction for our clients, consumers and suppliers. It is through our relationship with them that we identify, plan, execute and achieve our purpose of nourishing a better tomorrow with finished products and highly innovative solutions. Aware of the vulnerability of our operation due to global threats such as climate change, political and social instability, and the proliferation of unscientific information, we reinforce our actions to proactively anticipate trends, positively contributing to the transformation of the industry by leveraging our indepth scientific knowledge

Juan Carlos Vargas
 General Manager Team Foods

José María Huertas
R&D Advisor

I was the creator of the research and development area since before the creation of the Alianza Team. Since my arrival, we started to make consumer and bakery margarines, and very importantly, industrial products, the basis of what we call Team Solutions today. I have always defended the importance of fats in the human body

José María Huertas

Asesor R&D

Client and consumer satisfaction

[T3]

We maintained our focus on evaluating the satisfaction of our clients and consumers through different strategies and actions, taking into account that these data are key inputs for the identification of needs and expectations of our stakeholders. We reaffirm the excellent satisfaction results of our industrial clients and consumers who contacted our service line. Our businesses are focused on delivering solutions to their clients and consumers with a high degree of innovation and quality, accompanied by teams committed and dedicated to solving any doubt, complaint, claim or inconvenience throughout the process.

Consumer satisfaction:

7% fewer complaints were registered compared to 2018, with an overall satisfaction rate of 94% of users, two points below the proposed target of 96% overall satisfaction.

The follow-up process showed improvement during the year, extending the scope of complaint and claim registration to different processes within the operation for greater follow-up. In issues related to quality, there was only one complaint during the year, compared to 25 reported in 2018, evidencing the excellent performance in this aspect.

Compared to 2018, as in Mexico, the scope of records was increased to new processes, growing the reporting base. In 100% of the cases, an investigation and analysis of the root cause were carried out, and timely and quality responses were provided, ensuring the satisfactory closure of all reported cases.

We presented a 34% reduction in the claims rate compared to 2018, based on the number of reports recorded over the total units sold. We are pleased with this progress and are motivated to continue improving our customer and consumer service.

Héctor Sandoval
General Manager BredenMaster

See

In Colombia, we highlight that 97% of the users of the service line indicated that they would buy our products again, reaffirming the solid process of quality accompaniment that we have to guarantee our consumers the greatest and best service. The number of complaints decreased compared to those reported in 2018, and the capacities of those who attend the calls were reinforced through training in case and product batch assignment.

In Mexico, although quality-related reports decreased substantially, due to a flaw in the inventory system that caused delays in shipments, the consolidated record increased significantly. We worked to resolve this issue as quickly as possible, and thanks to the proactive and dedicated action of the team, there was no loss of clients or accounts, providing clients and consumers support and transparent communication throughout the process.

In Chile, the increase in complaints and claims was mainly due to internal processes to ensure complete documentation at the time of delivery to clients. We are working hard to strengthen the skills of those responsible for each stage of the operation through training and the implementation of controls to ensure double-checking of certificates. Additionally, situations related to temperatures, packaging and manufacturing processes were also presented for which action plans are already implemented to improve the aspects identified as opportunities.

In BredenMaster we highlight that complaints and claims related to quality presented a reduction of 40% and 6% with logistics, showing that the efforts implemented throughout the year to offer the best products and service have been successful. We continue with our efforts committed to ensure the delivery to satisfaction of our portfolio.

12 of our brands are included in the listing of most valuable brands in Colombia

Product portafolio Team Foods Colombia

According to the analysis made by Compassbranding, a firm specialized in consulting and valuation of brands and intangible assets, Alianza Team is in the #6 position of the most valuable companies for Colombians with our Gourmet and Campi brands, occupying the first place in the category of oils and margarines respectively, and then with Dagusto, Oliosoya, Girasoli, Canoli, and Olivetto.

RESEARCH, DEVELOPMENT AND INNOVATION

[T1]

Strengthening our capabilities in innovation, research and development was one of the eight priority issues for the corporate sustainability strategy. Taking into account the growing expectations of all stakeholders to learn more about how we nourish a better tomorrow, and where we stand on global issues, challenges, and questions that impact different places and populations, we share the answers throughout this Report. Directly impacting Sustainable Development Objective 3 of Health and Wellness, we work from the three strategic business groups to improve the inputs, ingredients and processes of all our solutions to leave a better tomorrow for future generations.

Great Culture to Innovate Recognition

Great Culture to Innovate recognition

We were recognized for the second time as an organization with an innovative culture by Great Culture to Innovate. Thanks to the leaders and collaborators who every day give their best with passion, agility and resilience to challenge the status quo by finding new and better ways of doing things.

Ana María Forero
Director of Talent Development Alianza Team

This recognition has been given to us for being considered an organization with vision and leadership that drives us to do things differently, work with passion, and always think about how we can do things better; for having a structure and work environment that facilitates the disposition for learning, collaboration and teamwork; and for being an organization that values diversity, where we value and enjoy working across generations, from the recognition of the power of different experiences, perspectives and ways of thinking.

Ana María Forero

Director of Talent Development Alianza Team

In Team Solutions we work from a deep understanding of our clients’ brands to design and offer cutting-edge technological solutions, and develop tools that improve the nutritional profiles of products, contributing to solve major problems of today such as obesity, hypertension, diabetes and other chronic non communicable diseases. Thanks to Alianza Team’s high quality research and development team, today we have 15 patent families, 26 patents granted and 34 pending.

Jesús Jaimes
General Manager Team Solutions

From Team Foods and its various business units that serve the needs of consumers inside and outside the home, we develop solutions at the product level to improve their performance and welfare of those who consume them. Such is the case of Jappi without sugar, the development of Gourmet® products with natural antioxidants, and Vidalia’s portfolio of functional oils. We launched the first product with a purpose, Campi Sal Marina, with which for each unit sold we make a donation to a project exclusively designed to improve health and nutrition indicators for children in the Wayuu community of La Guajira, Colombia, the area where the sea salt used in the product comes from. We also develop solutions from the processes and business models, highlighting for example the design of our ready to seal (RTS) boxes that save our clients an hour in the unpacking and display of the product, and additionally, managed to reduce by 100% the accident rate of their employees due to injuries with sharp elements that were previously required to open the boxes. We are reaching millions of households by including our brands in new sales channels such as e-commerce, catalogs, and digital platforms.

Thanks to these efforts to strengthen our research and development capabilities to offer our clients and consumers the best solutions for their preparations and moments of consumption, today we can proudly state that in Colombia, 79% of households that buy oils consume at least one Alianza Team brand, and 50% of those who consume margarine do so through one of our brands (source: Kantar World Panel de Hogares 2019). These results motivate us every day to continue developing new capacities to continue to nourish a better tomorrow

From BredenMaster, we continue to develop products to complement the well being of consumers at different times of the day. With the launch of gluten-free pan de queso (cheese bread) in three different presentations, highlighting its exclusive formulation that gives them that crunchy and delicious texture. The category of empanadas was developed by improving the doughs and fillings in its 18 varieties, the baked crescent was launched for the convenience store and gas station channel, and customized salt and sweet products were developed for some industrial clients. We launched pizzas of different flavors with an extra thin crunchy dough, and began developing new product lines to be launched in 2020, with which we continue to accompany our consumers with high-quality products that, being part of a balanced diet and healthy lifestyle habits, nourish a better tomorrow.

See

Campi con Sal Marina

Campi Sal Marina:

Campi Sal Marina: Including a local ingredient within its formulation, sea salt from the Colombian Guajira extracted in a traditional way, this product compared to its alternative Campi with Salt, has 39% less sodium content, 13% fewer calories, and natural colors and flavors, being the first product in its category to offer these attributes and a natural, unique and pure flavor. In addition, for every unit sold of Campi Sal Marina, Alianza Team is contributing to improve the health and wellbeing indexes of the Wayuu community, through a project that we are carrying out in alliance with Fucai, a foundation that has a history of more than 27 years working for the Guajira, and Tras la Perla, the initiative created by Carlos Vives to actively promote the improvement of the quality of life in the city of Santa Marta and the surrounding regions. During 12 months, we will work with 210 children under 7 years old and pregnant and lactating mothers from 6 Wayuu communities; we will measure their weight and height for the necessary monitoring and controls. The aim is to identify cases of advanced malnutrition and provide the necessary nutritional accompaniment to improve results in this area, contributing decisively to leave a better tomorrow for future generations. Campi® with Sea Salt will continue to tell stories. Stories that connect us to the values and naturalness of the Manaure Sea and the wisdom of the Wayuu artisans!

“Innovative,… striking,… different,… natural,… handcrafted,… spectacular”

Learn more about this product, its impact and benefits at campi.com.co and follow us in networks at @campicolombia.

Jappi sin azúcar

Sugar – free Jappi®:

We developed the first sugar-free almond beverage that maintains its flavor properties without the need for artificial ingredients, highlighting the expertise of the R&D team who developed the formulation. It is the only presentation on the market that contains just 25 calories per serving. Likewise, all the products in Jappi’s portfolio are naturally lactose, gluten, cholesterol and carrageenan free. Jappi is ideal for any preparation and your best companion for the different moments of the day. Learn more at jappi.com.co and follow us in our networks at @jappicolombia.

Gourmet:

We developed a formulation of oils with natural antioxidants, designed to highlight the properties of food through frying, representing an evolution in frying, positively impacting the well-being of those who consume them. Learn more about the recipes and recommended preparations at gourmet.com.co and follow us on @gourmetcolombia networks.

Olivetto:

It had a positive behavior compared to the previous year, with a growth of 31%. With the launch of Olivetto for frying, we continue to bring consumers closer to olives for their frying preparations, improving alternatives with healthier options. Follow us at @olivettocolombia to learn more about all the benefits of olive oil consumption in your diet and see the complete portfolio at olivetto.com.co.

Kardámili:

In Chile, we maintained our presence in the market through Kardámili with a portfolio of selected products of olive and balsamic oils, providing consumers with alternatives for their recipes and different moments of consumption of high quality. As with Olivetto in Colombia, we emphasize the benefits of olive consumption in a balanced diet, because of its 100% natural components, it is an excellent anti-inflammatory, antioxidant and helps strengthen the body’s endocrine system and HDL levels, protecting and enhancing the functions of organs such as the pancreas, liver and stomach among others. Learn more about the benefits of olives and delicious recipes at kardamili.cl and on the web at @kardamilichile

Portafolio Vidalia

Vidalia:

Our functional brand, with products designed based on the current scientific consensus and safe, high quality ingredients to contribute to the well-being of its consumers. All the ingredients are of natural origin, designed so that the body is able to absorb and take advantage of the essential nutrients necessary to strengthen the specific functions of the organism. Find out more about this brand’s product portfolio, its properties, benefits and impact on your well being at vidalia.com.co and follow us on social media at @vidalia_col.

Nuevos canales

Our innovation and development is not only focused on products, but also on business models and sales channels. That is why we announced that since last year, several of our brands are now part of the portfolios of digital sales channels such as Merqueo, innovative distribution solutions for shopkeepers such as Chiper, and inclusion of independent producers in supply chains such as Frubana, connecting the countryside with urban centers. We are also present in e-commerce catalogues and other platforms such as Novaventa, among others, allowing us to reach millions of households. With these initiatives we are pioneers in our oil, margarine and vegetable beverage categories, leading efforts of inclusion, outreach and visibility to new territories and populations. Find our most available and nearby brands Oliosoya, La Garza, Girasoli, La Sevillana and S&S by entering the digital world.

Reinforcing innovation as an engine of growth

María Paula Ríos
Innovation and Digital Transformation Director 
Alianza Team

We formalized our investment fund to collaborate with different target groups in the innovation and entrepreneurship ecosystem, promoting disruptive innovation and finding new ways to positively impact our environment. We seek opportunities in four growth platforms where lipids and brands play a relevant role by integrating the different areas of the business. During 2019, more than 300 companies were reviewed worldwide, closing two investments after a careful process of due diligence and articulation with the businesses. Furthermore, with the implementation of this new structure, we would have the potential to increase the percentage of investment in research and development from 1% of our total sales to date, to 4%, representing a significant increase.

Alianza Team one of the most innovative companies in Colombia

We are ranked number 30 among 322 companies evaluated in Colombia by Dinero magazine and the National Business Association (ANDI), which recognizes us as one of the most innovative companies in the country and highlights the agility, creativity and adaptability with which we develop our processes. Once again, it is thanks to our highly committed team of collaborators that every day we challenge the status quo to make Alianza Team a reference of innovation.

In Alianza Team our main asset to innovate has been our people.

María Paula Ríos

Innovation and Digital Transformation Director Alianza Team

Team Reconoce:

Logo Team Reconoce

Adán y Eva
Winners of Team Recognizes first version

As part of the innovation ecosystem that seeks to promote innovative and systematic behaviors focused on the resolution of complex situations by our employees, we launched the internal recognition program Team Recognizes with the intention of recognizing the great ideas implemented by different teams in all our operations. With more than 218 participants and the application of 81 projects, great initiatives were identified that show how the Team People go beyond their tasks, promoting great changes from their respective fields of action.

Project impact categories: 

  • Growth: 33
  • Digital effort: 15
  • People: 17
  • Environment: 16

Evaluation criteria:

  • Team
  • Innovation
  • Impact
  • Scalability
  • Strategic relevance

See

The eight finalists had the opportunity to present their projects to almost 200 people in the city of Bogotá in a space designed exclusively to make an impact, with streaming for more than 8 hours for all the collaborators in Mexico, Chile and Colombia. It was through the same vote of those who tuned in to the presentations that the winners were chosen. The projects presented are a sample of the innovative potential of our collaborators to leave a better tomorrow for future generations.

Adam & Eve – life at the wastewater treatment plant in Buga

Video Adam & Eve project for Team Recognizes.

We share the video of the winning project of Team Recognizes 2019 – Adam & Eve – an initiative that not only shows how Team People goes beyond fulfilling its responsibilities, but how sustainability from its economic, environmental and social dimensions is lived day by day in Alianza Team.

Our credentials:

[T23; T24]

Rafael Piedrahita
VP Operaciones Alianza Team

We are proud to have the credentials that support our production processes by validating the credibility and safety of our products and services, which translates into confidence of our clients, consumers and other stakeholders. In these twenty years of Alianza, we have consolidated a robust Integrated Management System that covers different processes, certifications and moments to ensure that 100% of our operation not only meets the expected requirements, but that all employees contribute every day to improve our organization’s economic, environmental and social performance.

 

In addition, we maintain our commitment to responsible advertising and communication, guided by the selfcommitments that ANDI leads in Colombia with respect to front labeling and advertising aimed at children under twelve years of age for our mass consumption products. 74% of our Team Foods products for home consumption contain the Recommended Daily Allowance (RDA) where they indicate the content that each portion of sodium, total fat, sugars and saturated fats and calories provides and the percentage of daily recommendations for intake.

Operation optimization with our TPM Program

KFC recognition

“We were recognized by our client KFC as the best supplier 2019 highlighting our supply compliance, quality and product safety and thanking us for our effort and dedication to be a strategic ally to our clients.”

Operation optimization with our TPM Program

Equipo Planta Bogotá

For ten years we have been actively implementing our TPM program in the different plants, training our people in good manufacturing practices and implementing strategies to identify bottlenecks, reprocessing, inefficiencies and reasons for stoppages in the production lines. In the 12 steps to be executed within the program, through different instruments such as maps, diagrams, LUP diagrams, cards and others, we achieve the improvement of the processes in plants to guarantee quality, availability and opportunity from production.

 

2019 presents an important milestone in this program since we achieved the certification in Step 1 in different production processes in the plants of Barranquilla, Buga and Bogotá in Colombia, which means that there is an effective implementation of processes and methods that allows us to classify, organize, clean, and standardize the culture of order and discipline within the operation. Through the cleaning process, a deep inspection of the equipment is also made, which allows the identification of any anomaly or opportunity for improvement in production. This achievement was possible thanks to more than 16,700 hours of training, 6,000 of which were in 2019, to different teams in operational and administrative positions in our plants, and of course, to the commitment to excellence and quality of each of our collaborators and the constant support of the management team. Congratulations!

Responsible sourcing

[102-9; 204-1; FP2; T4; T5]

Elisa Sotomonte
Finance & Supply Chain VP Alianza Team

About the management of our chain, we strengthened our corporate capacity to better identify, accompany and manage the opportunities and risks present in our operation to positively transform our chain and the relationships with our critical and strategic suppliers, and be the best allies for development.

Compliance:

With the publication and dissemination of our principles to nourish a better tomorrow, we highlight the guidelines for responsible purchasing, among others, and carry out important actions to publicize and recognize their applicability to our suppliers’ operations through the self-management platform we currently have

 

Recognizing that there are many risks present along the chain that can impact the sustainability of the organization, we designed a mechanism for diagnosis, monitoring and follow-up to identify threats and opportunities that require special support.

Beyond a commercial relationship, we have a corporate relationship that has led us to participate jointly in innovative experiences, has allowed us an integration that has generated much more value than the sale of palm oil products would strictly be. We have gained side by side, we know each other deeply, and we have also built an environment of trust, credibility, and transparency; three values that are important and that give companies what is known as sustainability. We hope it will be maintained for many more years to come.

Fabio González

Palmas del Cesar Manager

Diagnostic mechanism for the securing of the palm chain

  1. Diagnosis and mapping of geographical location of extractors belonging to our chain.
  2. Identification of potential environmental, social and economic risks that may impact the organization’s sustainability.
  3. Detailed review of specialized sources for information related to watersheds, deforestation and climate change.
  4. Identification of publicly available documentation (policies, reports, other).
  5. Media analysis.

 

With these steps, we made the prioritization for a closer accompaniment of our suppliers, starting with our palm chain in 2020 and in the following years move towards the next stages contemplated within this process.

See

With the publication and disclosure of our main principles and expectations related to our actions with the different stakeholders through different channels, it allows us to guarantee that 100% of our suppliers know and accept to abide by these guidelines, which not only cover basic aspects of ethics and transparency, but also include important commitments to social and environmental issues such as the promotion and respect for human rights, compliance with our labor and environmental standards, anti-corruption and others.

 

We chose to start with diagnostic and monitoring efforts focused on the palm chain, taking into account its criticality and relevance within our operation. Although it is not the main input that we work with, we are aware that palm oil production in the world generates environmental and social impacts that we must take into account and be able to provide timely responses to the needs and expectations of the different stakeholders. In addition, we are contemplating the application of this mechanism eventually to 100% of our chain, identifying in a timely manner and with a strategic focus the opportunities and risks to continue providing the best service to our clients and products to our consumers, with the best ingredients, inputs, materials and raw materials.

Traceability:

Our main challenge for 2020 is to achieve 100% traceability of our raw material from palm to plantation. Understanding the context of Colombian palm oil production -and how it differs from that of Southeast Asia, which is the region with the highest production of palm oil in the world- the challenge of getting to know the geographical location of all the plantations of those who currently supply our operation through our suppliers is evident.

Developing a productive project for 43 years in Tumaco, makes visible the viability and the enormous contribution to the development that brings a company with a long-term vision as occurs in the projects of Palma, the good relationship with local clients as Alianza Team, creates endless opportunities to connect through Palmas de Tumaco dozens of small local producers, increasing the creation of social value of these projects

 

For Extractora del Sur de Casanare the stable commercial relationship with Alianza Team as a leading client in the food sector has meant sustaining the value proposal to more than 100 producers, respecting commercial commitments, providing fair commercialization conditions, strict compliance with payments, and supporting investments for productivity improvements

Maria del Pilar Pedreira

Palmar de Oriente and Palmas de Tumaco General Manager

Since 2017, Alianza Team has signed a voluntary agreement to avoid deforestation in the palm supply chain, a commitment that we have wanted to expand to ensure that by 2030, 100% of our total supply chain will be free of deforestation. Based on the baseline information provided by IDEAM, the Colombian government entity responsible for providing complete information on the country to the signatories of the agreement, we conducted the respective analyses to determine areas of potential risk and establish action plans to meet this objective. With the information provided, it was identified that of the land in the country that contains palm, only 1.5% shows deforestation. Although the percentage is really low, the challenge in the coming years to have traceability to plantation for the agricultural raw materials of our chain is a necessity.

Challenges 2020-2023

  1. Promote innovation, research and development as transversal capacities for the three strategic business groups.
  2. Strengthen our presence in new channels, conventional and emerging, so that our products and solutions reach more clients and consumers with quality, opportunity and availability.
  3. Implement and consolidate the monitoring mechanism to identify risks in our chain in a timely manner, joining efforts with different actors to transform our relationships into ones that generate mutual benefit and development in the areas where we supply.
  4. Consolidate Alianza Team’s innovation ecosystem, integrating all elements in a coherent and visible manner to generate greater impact on results.