UDDERLY UNBELIEVABLE GROWTH
TBY talks to Guilherme Franklin, Managing Director of Tetra Pak Andina, on the decision to locate the regional headquarters in Bogotá, the plan for double-digit growth, and its efforts on digital innovations and sustainable operations.
BIOGRAPHY
Guilherme Franklin has been with Tetra Pak since 2000 and has held his current position of Managing Director of the Andean region since 2015. Originally from Brazil, he holds a master’s degree in marketing from Pontifícia Universidade Católica do Rio de Janeiro and an MBA from UC Berkeley.Why was Bogotá chosen as Tetra Pak's headquarters for the Andean region?
The headquarters of the company in this region is in Bogotá for many different reasons: there are almost 50 million consumers here, Colombia has shown economic stability for the past few years, and its political institutions have been stable, all of which attract foreign investment. One of our main categories is milk, and Colombia has the highest consumption of milk per capita in South America and after Brazil is the second-largest milk producer in the region. Here, our market share is one of the lowest worldwide, meaning there is a huge opportunity for growth. We also see that in other categories such as juice and nectar. Compared to other markets, Colombia is still underdeveloped. Therefore, if we put everything together, Colombia is a key market for the company, and the group has been investing heavily in the country and the region over the past years. For the region in general, we have had double-digit growth the last two years and intend to maintain this level.
How would you characterize the first half of 2017 for Tetra Pak?
For 2017, we expect to have the same level of double-digit growth we had last year. As of today, we will see 12% growth. The market has not started out as strong as the previous year; the beverage category in Colombia for the first three months fell compared to the previous year. Colombia has all the pillars to keep growing; however, the situation in the region, such as tax increase and other factors, created a constraint during the beginning of this year. I expect, however, these factors to change in the coming months. Thus, our expectation is to grow around 15% in Colombia this year.
How is Tetra Pak implementing digital innovations into its operations?
Today, it is key to work on digitization and on digital platforms. With current technology, we are able to connect the entire plant, from where we prepare the product, to the filling line and the package itself. This also allows us to monitor the entire process and provides digital information to the plant manager that helps improve operations and performance. In addition, we are now introducing The Hololens, a kind of goggle, in partnership with Microsoft. With these goggles, we can provide remote support 24/7; if there is an issue in the plant, a user can wear these and receive support from a specialist anywhere in the world, whether it is for our technicians or even customers. We are investing heavily in digital innovations, and there is still much to be done.
How are you implementing Tetra Pak's sustainability initiatives in the local market?
The environment is one of the four strategic pillars of Tetra Pak; the company has big ambitions for sustainability and has invested a great deal in this area. For example, as of last year, all Tetra Pak packages are 100% recyclable—with new technology we were able to make caps and polymers out of sugar cane to create the first 100% renewable carton package. For our ambient packages, 82% is made of renewable material, using the same approach as pasteurized products with bio-based resources. Our goal is to get 100% recyclable or 100% renewable packaging. We are supporting the construction of five plants in Colombia that will recollect packaging and through various processes separate the paper part from aluminum and the polythene; the paper can then be used for books and more. The aluminum and polythene can be the used to produce chairs, tables, and roofs, for example. We also have programs across the region where we go to schools and explain to students about the importance of recycling and the environment. We have invested around USD400,000 over the last two years supporting various recycling activities in the country.
UDDERLY UNBELIEVABLE GROWTH
TABLE OF CONTENTS
Focus: Nobel Prize
Eyes on the Prize
Juan Manuel Santos' Nobel Prize demonstrated the international community's recognition of his efforts toward forging permanent peace with the FARC, but the process of ratifying the treaty reveals that the issue remains as complicated as ever for Colombians.
read articleGuest Speaker
Luís Guillermo Solís Rivera, President, Costa Rica
TBY talks to Luís Guillermo Solís Rivera, President of Costa Rica, on respecting the sovereign power of the Colombian people, the critical areas of Caribbean security where both countries can work together, and the importance of burgeoning industrial ties between Colombia and Costa Rica.
read articleInterview
Ernesto Samper Pizano, Secretary-General, Union of South American Nations (UNASUR)
TBY talks to Ernesto Samper Pizano, Secretary General of the Union of South American Nations (UNASUR), on working with regional powers to bolster the peace process, boosting citizen participation at home and in the region, and forging a new concept of hemispheric security.
read articleInterview
María Claudia Lacouture, Minister, Commerce, Industry, and Tourism
TBY talks to María Claudia Lacouture, Minister of Commerce, Industry, and Tourism, on integrating Colombia's markets with natural regional partners, boosting underserved areas, and making sure that areas like bird-watching flourish.
read articleInterview
Patricia Tovar, Executive Director, Colombian British Chamber of Commerce (BRITCHAM)
TBY talks to Patricia Tovar, Executive Director of Colombian British Chamber of Commerce (BRITCHAM), on standing behind the UK despite Brexit, the opportunities offered by 4G, and why Colombia is one of the UK's best long-term bets in Latin America.
read articleInterview
Ricardo Ávila, Editor-in-Chief, Portafolio
TBY talks to Ricardo Ávila, Editor-in-Chief of Portafolio, on the biggest social, political, and structural changes Colombia must make to reap a full peace dividend, maximizing its huge agricultural potential, and the cornucopia of sustainable energy possibilities.
read articleInterview
Juan José Echavarría, Governor, Banco de la República (Central Bank of Colombia),
TBY talks to Juan José Echavarría, Governor of Banco de la República (Central Bank of Colombia), on the bank's cultural role in securing a broader peace, the importance of saving, and why the economy must still open up even more.
read articleInterview
Marcela Vaca Torres, Colombia General Director , GeoPark
TBY talks to Marcela Vaca Torres, Colombia General Director of GeoPark, on GeoPark's assertive moves in exploration investments, regulatory opportunities to encourage exploration, and new opportunities in shale gas and offshore resources.
read articleInterview
Francisco José Lloreda, Executive President, The Colombian Oil & Gas Association (ACP)
TBY talks to Francisco José Lloreda, Executive President of The Colombian Oil & Gas Association (ACP), on expectations for the year, increasing the feasibility of hydrocarbon projects, and the state of the offshore sector.
read articleFocus: Gold
The Road to El Dorado
2016 has been a mixed and sometimes challenging year for the mining industry in Colombia, especially for gold, due to legal issues, competitiveness, and high volatility in international markets. While gold exports rose 40.5% in 2016 to USD1.5 billion, the Colombian Mining Association estimates that up to 80% of gold production is done illegally.
read articleInterview
Guilherme Franklin, Managing Director , Tetra Pak Andina
TBY talks to Guilherme Franklin, Managing Director of Tetra Pak Andina, on the decision to locate the regional headquarters in Bogotá, the plan for double-digit growth, and its efforts on digital innovations and sustainable operations.<span></span>
read articleInterview
Ricardo Bribiesca, President & Director General of the Andean Region , PPG Industries
TBY talks to Ricardo Bribiesca, President & Director General of the Andean Region of PPG Industries, on strategic areas of growth, product segmentation, and raising the bar for industry sophistication.
read articleInterview
Zully Salazar Fuentes, President, The Cartagena Tourism Corporation (Corpoturismo)
TBY talks to Zully Salazar Fuentes, President of The Cartagena Tourism Corporation (Corpoturismo), on the successes of the past year, becoming a model for other regions, and focusing on sustainability.
read articleFocus: Buenaventura Port
Good Fortune
Colombia is blessed with being the only country in South America with direct access to the Pacific Ocean, the Caribbean Sea, and the Atlantic Ocean, but its Pacific ports have long been overshadowed by their flashier Caribbean counterparts. With an ambitious investment initiative from the public and private sector, that is about to change.
read articleReview: DOING BUSINESS
Doing Business in Colombia
The first year of Colombia's extensive fiscal reform has made doing business slightly more difficult in the immediate short term. Yet, if the state achieves even half of its goals in doing so, it will significantly improve the long-term corporate outlook for the country.
read articleInterview
Michelantonio Bosso, Regional Manager & Director of Operations of Latin America, Grupo Menarini
TBY talks to Michelantonio Bosso, Regional Manager & Director of Operations of Latin America of Grupo Menarini, on the importance of Colombia to the company and its goals for the local office.
read articleFocus: Zika VIrus
Ending the Epidemic
The Zika virus posed a special threat to the 26 million Colombians living in 900 municipalities below 2,200m. Nevertheless, due to proper surveillance, international cooperation, and an immediate government response, Colombia was the first country in the Americas to announce the end of the Zika epidemic.
read articleInterview
Alfonso Prada Gil, Director General, The National Service of Learning (SENA)
TBY talks to Alfonso Prada Gil, Director General of The National Service of Learning (SENA), on its key role post conflict, upcoming development projects, and its focus on technical and technological training.
read articleInterview
Cecilia María Vélez White, Rector, Universidad de Bogotá Jorge Tadeo Lozano
TBY talks to Cecilia María Vélez White, Rector of Universidad de Bogotá Jorge Tadeo Lozano, on the impact of its new university building, developing agricultural management programs, and becoming an innovative university.
read articleInterview
Fr. Juan Ubaldo López Salamanca, O.P., General Rector, Universidad Santo Tomas Colombia (USTA)
TBY talks to Fr. Juan Ubaldo López Salamanca, O.P., General Rector of Universidad Santo Tomas Colombia (USTA), on its growth plans across the country and its contributions to society.
read articleFocus: EDUCATION INVESTMENT
Striking A Deal
Teachers went on strike for the second time in two years in May 2017, fighting for increased wages, improved infrastructure, and more teacher development programs. Will the government's offer be more broken promises or will Colombia write a new chapter for the textbooks?
read article
