Welcome to season two of Troubleshooting Innovation. We’re teaming up with food operations and manufacturing expert Rich Berger to discover new ways to operationalize values into the manufacturing space.
In this episode, Berger and Joanie Spencer, Commercial Baking editor-in-chief, explore how food manufacturing facilities can become good stewards of their surrounding community.
Sponsored by Shick Esteve.
Joanie Spencer: Rich, thanks for joining me today. Before we get started with the questions, I want to get a feel for your entire background because I know you have a lot of manufacturing experience over three decades. So can you outline that for me in what engineering looks like for you and in food and beverage?
Rich Berger: Well I’ve been fortunate enough, Joanie, to have been and currently be in the food and beverage industry for most of my 30-year career, from brewery to distillery to fresh, refrigerated and even frozen bakery products, energy bars and beverages. Currently, I’m on the team at Kinders. Kinders is a spice blend, dry rub and sauce company based out of the San Francisco Bay area, where I currently reside. Kinders is really an amazing company with a family history that spans three generations. We have a true focus on quality that’s always been at the heart of the handcrafted products that we offer. The flavor profiles offered by Kinders products — which you can find at most retail outlets such as Walmart, Costco and Sam’s — are really amazing and quite creative. Kinders treats our consumers like family and helps them prepare delicious meals to enjoy with their family and friends.
Spencer: So Rich, one thing that I really like about you is that you go at manufacturing in a very different way. You’re not just an engineer, you really think holistically about what you’re producing. And I’m really excited to have this conversation with you because I think conversation creates change. Would you agree with that?
Berger: I totally agree. In fact, a mentor that I am fortunate to have in my career journey is Elisa Hammond. Elisa is a true sustainability thought leader in our industry, and also in many other industries. And she’s also a business advocate at Clif Bar. And Elisa reminded me at one time to remember that conversations are way more engaging than statements. She said, “Conversation creates change.” And while that’s kind of a simple statement, I actually found it to be profound. I truly believe in that and appreciate the opportunity today, Joanie, to have conversations around operationalizing your values in the manufacturing space.
Spencer: I think that’s so important, Rich, to think about what those values mean for how manufacturing is done. It’s not just about the hard skills, it’s about what’s happening overall. And I think today more than ever, that’s what’s most important.
Berger: Absolutely. And I do also want to add that I am not here as a sustainability expert. I’m constantly learning, my thinking is constantly evolving. But I’m looking forward to sharing some of my experiences as an operator in sustainable practices and operationalizing those values into the manufacturing space.
Spencer: And that’s exactly why I invited you to join me on this podcast, Rich. So let’s get started. We’ve already established this vast experience that you have in manufacturing. So over the years, can you tell me how have you seen the relationship between manufacturing facilities and their surrounding communities evolve?
Berger: Yeah, the current global food system is, in my opinion, generally pretty efficient in production, processing and distribution. But make no mistake, it’s rendered some undesirable social and environmental impacts. Over the last 30 years, food producers’ profit margins have trended downward and agribusiness organizations with global networks of production, processing and distribution now really dominate our industry. The changing economic conditions, from what I have seen, have really decreased the financial viability of small- and medium-sized farms. It’s increased fossil fuel consumption and reduced the number of farm-related local transactions. And processing facilities really made the profession of farming less attractive to younger generations. In large part, food production has been removed from our communities, diminishing our collective knowledge around our regional practices.
I mean, look, the current food system offers consumers inexpensive food. But the amount of processing, the length, the distribution channels and global trade patterns favor prepared food that is calorie-rich but nutritionally deficient.
Another challenge is that conventional food retail sources such as grocery stores are inequitably distributed throughout our communities. For example, Joanie, while middle and upper income neighborhoods have many grocery stores, cities such as Detroit are often characterized as urban food deserts. Large grocery chains and small markets are now supplemented with farmers markets, community-supported agricultural programs and community gardens, all of which are emerging as alternative food suppliers within our communities that also offer benefits for a greater share of the community and may actually address the unmet needs of low income residents. Personally, I feel the term “community-based” is more representative than “local-based.” It emphasizes a regional perspective that connects food production with economic and community development. As leaders in our industry, all of us should be active in removing legal and political barriers to urban agriculture, in an effort to advance community-based sustainable food practices and processes.
Spencer: Right. So when you think about supporting agriculture and supporting the fact that agriculture can support those without good access to food stores, how can food manufacturers really take that to heart and put it into action in placing their communities at the foundation of their innovation? What’s the first step with that?
Berger: Well, I kind of go back to how food companies run the business today. Big data-driven analytics bolster companies in our industry by providing critical decision-making abilities when it comes to the areas of pricing, product promotion, product development, as well as demand forecasting. It’s really served as a trail map for successful food companies for quite some time, perhaps in different forms and the use of evolving tools over the years, but make no mistake: Analytics have been a big ingredient to the success of food business. It informs us. For example, I’ve I’ve seen product innovation, enhanced sales, effectiveness, improved margins and revenue boosted customer reach even prolonged marketing ROI is enhanced and customer loyalty improved through data analytics. So much in the same way, as we have used data to size the business, we can learn a lot as we build our strategic priorities around community based data.
I think these trends are pretty powerful. For example, according to Cone Communications’ corporate social responsibility study, 87% of American consumers will make a purchase because a company advocated for an issue that they care about, that was important to them. So the case for sustainability is very strong. And to become sustainable, our business must engage everyone who can contribute. A green business functions in the best interests of the local and global environment, meaning it supports the community and economy dependent on a healthy planet. And environmentally aware business considers more than just the profits, right? It’s it considers its impact on society and the environment. And a business is sustainable, because it, it contributes to the health of the structure within which it operates, thereby helping construct an environment in which the business can thrive. So that’s, that’s kind of for me, that’s the profound takeaway here.
Spencer: Rich, I thought that was so insightful that you mentioned data in terms of community impact, because in the last season of our podcast, we talked about data collection and how important it is to understand the analytics and what to do with it. Because data without analytics is just numbers and information.
Berger: Exactly. And I thought the last season of your podcast with with David was was quite interesting for much of the same reasons. And David stressed thinking about data as more than record keeping and audit preparation, and encouraged us to really think about data as a way of understanding how we do something meaningful.
Spencer: I think that sometimes we forget to think about data, not just in a hard sense, but in an influential and impactful sense. I think that’s a good segue to the next question and talking about a community foundation and analyzing information. How do you use that to transfer corporate values into good manufacturing practices? Because they are so often seen as two different things. We have the corporate side of a food company and we have the manufacturing side. But how can we use this information and a foundation of community involvement to bring values and good manufacturing practices together?
Berger: Sure. Well first, I think it’s important to understand that everyone in the business lifecycle can affect change in their community: business owners and organizational leaders, business administrators, managers, supervisors, human resource professionals, and employees. The last group, at least for me Joanie, I think employees can be the most impactful. Sustainability initiatives don’t always have to come from the top down. For example, employees at a Unilever tea factory in the UK saved the company roughly 48,000 euros and reduced the waste of over nine tons of paper by suggesting the company change the size of paper tea bags. It’s because these employees were working with the product directly, day in and day out. They knew exactly what could be improved and what was really possible. So I like when we encourage our teammates to speak up and share their thoughts about how our business can become more sustainable. I think the results could contribute to both sustainability and profitability. Moreover, the Stanford Social Innovation Review reported that this also can improve employee retention, productivity and overall engagement.
Spencer: It’s one thing to give employees a voice, but you have to listen to that voice. It has to be heard and I think that’s really important for workers these days. And when you think about being able to make an impact in the community, it is important to hear from the people who are producing.
Berger: Absolutely. And I think it all starts with trust. I think as you begin to really listen to the team that’s working on these solutions day in and day out, and they feel free to express ideas and solutions, that also has a side benefit of trust. And once you begin to build that trust with the workforce, really the ideas will keep coming.
Spencer: So I do want to shift gears a little bit and talk about facility design. Now, this is something that I’m really interested to hear your opinion on, because I first met you when I visited a facility that you had a huge hand in designing and you put a lot of thought into how it functioned. So in those terms, what would you say are some key community factors for a food manufacturer to consider how can good facility design help a company become a good steward of its community?
Berger: I would say first, be relentless in your efforts to source locally. Obviously, you will enjoy logistical cost savings, right? Because you’re not you’re not shipping products and materials all over the world. You’re having to deal with that regionally and and there will be cost savings involved with that. But you’ll also better connect with the community and your fellow businesses within it. And consider regional materials and services not just over the lifecycle of your ongoing operations, but utilize these local products for your build or your renovation. It’s amazing to see how employees connect better in an environment that has materials around them that are regionally produced everything from perhaps stone and tile products that are made from materials that are available locally. And connect with teammates locally to landscape strategies with plantings that are more local based that folks can relate to. I think that’s really important. Also encourage green commuting and living. For example, offer your employees incentives to utilize public transportation or perhaps contribute to the purchase of electric vehicles for your employees and put some EB chargers out in the lot.
I would also encourage folks to explore the many green building certifications such as LEED sites, ENERGY STAR, and begin to treat these certifications not as a plaque that you hang on a wall, but rather as a way to inform, educate and ideate. This, in my experiences, is really the true value of these programs. It’s not about chasing points, or certifications. It’s really about using the experiences of others through these certifications to generate ideas in continually improving your sustainability in your company.
Another idea might be to select a team of volunteers who are responsible for sustainability initiatives at your facility. It can do wonders for your efforts. It creates accountability. There are people specifically responsible for this and they can take care to follow up with others and bolster a culture of sustainability. Moreover, I think a committee like this will keep the ideas flowing. Task them with talking to other employees and fellow community leaders as well. So think about it not just internally, but also externally facing and give them the power to make decisions.
Recycling is very beneficial. It keeps trash out of the landfill and the incinerator, and it creates hundreds of thousands of jobs annually. If your workplace doesn’t already do so, start recycling. If your workplace is already recycling, take a moment to read up on the specific recycling laws in your area to make sure you’re doing it correctly. It’s easy for everyone, including myself, to get a little lazy and put items in the trash bin when we’re at work. So provide ample recycling bins in the workplace, and make sure they’re labeled for the types of items that go in them.
Spencer: Now, that’s a really good point, Rich, because it’s one thing to recycle but you have to do it correctly. And so many people don’t know there’s a right way and a wrong way to recycle. So there’s a little bit of training and education that goes with that, right?
Berger: And there can be downstream consequences to that. Without those conversations with your team, for example, you wouldn’t want to contaminate a great source or stream of recycled materials to the local source with materials that perhaps don’t belong or are not separated properly in that stream. Also, if your city has a composting program, take advantage of that.
Another idea, and one that I have a bit of experience with, is that most companies in our industry are committed to a safe, clean and highly sought-after work environment, right to the extent that you can without risking your intellectual property. Be transparent as much as possible. I think this is really important. invite the community in. Arrange your facility such that it facilitates guests and tours in a safe and secure way. Of course, offer opportunities for families and employees to see where you work show a sense of community pride by opening up the facility to them. Think about ways to educate others, such as students about your manufacturing processes and practices. Or perhaps take it a bit further and demonstrate how your business can improve the environment in which you operate, perhaps through organic water-efficient landscaping, for example. I think that can go a long way. So really, you don’t need to be starting from scratch with any of these examples. And many other approaches apply, whether you’re embarking on a greenfield, brownfield or even a renovation of your existing facility.
Spencer: It’s really interesting hearing you talk about the impact on the community. And thinking about that statistic that you quoted, that 87% of consumers are going to gravitate toward a brand or a product that stands for something, and so on. On one level, the immediate is that you’re interacting with your community. And so the surrounding community isn’t looking at, oh, there’s the big bad manufacturing facility. You’re actually becoming a part of [the community]. You’re building trust with your community, but at the same time, consumers even on a regional or national level can look at the company and say that’s a company who participates in their community. That’s a company that I want to support, even if it’s not a local company to me.
Berger: Absolutely. I think it helps in a broader sense, Joanie, to connect the values that you have in your organization to your community. It’s an opportunity for others to really connect with what’s important to you and your business.
Spencer: Those are really great ideas for good starting points for really being a part of the community. But what are some ways that food companies can think outside the box in terms of how they interact with the community on a corporate level as well as manufacturing?
Berger: I think taking care of the people who live and work in your company shadow ensures the long-term sustainability of your supply chain, much of what we talked about earlier. Also improving the quality of the talent pool that may someday produce your best and brightest employees. I think our companies bear some degree of ethical responsibility for the wellbeing and sustenance of communities that become economically dependent on us. First, identify clear reasons to collaborate. Help each community partner achieve something significant. Incentives such as “we’ll do this for good publicity,” or “everybody else is jumping in and we don’t want to be left out,” I think are not sufficient.
Spencer: Those should be the part of the benefit. Like that’s what you get back as good publicity, but you don’t do it for good publicity.
Berger: Exactly. Second, truly lead. Behind the most successful collaborations are one or a few organizations that are willing to invest more than their share of financial, human and political capital to make the effort a success. Coordinating action, or coordinated action I guess, can be difficult because first movers are always taking the biggest risks, right? Who’s in the water first, and later entrants can benefit without much investment at all. Like, “Hey, how’s the water,” right? And so the temptation — and believe me, I have been there many times — is to come in late. But someone has to start, or nothing will happen. So be that leader and take some risks.
Third, set simple but credible goals. I think one certain way for a collaboration to stall is when the partners have different agendas. To protect or guard against that is to set an aspirational goal that everyone can agree on.
Fourth, truly dedicate good people and valuable resources to the cause. Neil Hawkins, the corporate VP of sustainability at Dow Chemical, said some time ago that if a company believes something is strategic, then resource it like it’s strategic. I couldn’t agree with with him more.
And lastly, be flexible in defining success, because success is going to come from unexpected directions. For example, while while your collaboration may not change the world, in precisely the way you intend, it can still change the rules of the game in a very positive way.
Spencer: Yeah, definitely. That’s really good advice. And that’s a really positive note to end on. So that is going to do it for our first episode. And I just want to let our listeners know that the final episode of this season is going to consist of listener questions that Rich will be answering.
Berger: In fact, I would love to respond to all questions that come in, we may not be able to do that fully in the podcast time may not allow for every question, but I would like to have the opportunity to respond to all the questions that do come in, because I think that again, that conversation is so important to collaborate with this wonderful food industry that that we work.
Spencer: If you have any questions, email info@avantfoodmedia.com. Next week, we are going to talk about how a food manufacturing company can innovate sustainably so we’re really going to dive dive deep into sustainability efforts. So I will talk to you next week, Rich.
