Asiafruit Magazine talks to new CEO-elect of Fresh Produce Group Mano Babiolakis and CEO Robert Nugan about their future plans for the company

Mano Baiolakis, CEO-elect, Fresh Produce Group
You took over as CEO-elect of Fresh Produce Group in May after meeting with many quality organisations in Australia and overseas to determine your next career move. What attracted you to this position?
MB: I have a tremendous respect for Robert Nugan and what he has managed to achieve with Fresh Produce Group over the past 20 years. We share the same values and both have a passion for the industry. FPG has a very good platform for us to build on, it has exceptional relationships with key suppliers, very good people and a very solid customer base.

You have an impressive track record in your previous roles as CEO of CostaExchange and Chiquita Brands South Pacific, particularly in terms of driving strategic expansion. How will you bring that experience to bear on your role as CEO of FPG?
MB: Robert Nugan and I share a common view regarding the number of opportunities in the industry right now and how FPG can leverage off its current position to capitalise on them.
Both of us have been in the industry from many years and even though our past experience differs in many respects, we complement each other in most areas.

Can you give us an overview of the company you have taken over at FPG. How has it evolved, what position does it now occupy in the Australian and international fresh produce business and what scope do you see for development?
MB: FPG has built a strong reputation particularly in Imports and Exports. These two areas have been the historical mainstay of the business. In recent years, FPG has added a Wholesale and Distribution platform in both the Sydney and Brisbane markets.
There has also been considerable focus on building out the Domestic business with an emphasis on 12 month supply into the supermarket chains and leading independent retailers.

We understand FPG is looking to expand through acquisitions or start-up enterprises or even through integration further up the supply chain. Can you give us any insight into expansion plans that are in the offing?
MB: There is an ongoing opportunity to vertically integrate throughout the business and this will continue to form a key part of our strategic plan in the coming years. FPG will look to build upon  its supply partnerships through a variety of commercial initiatives with the aim of establishing a robust and significant organisation in the Australian fresh produce industry.

FPG purchased Brisbane-based Baird Produce a couple of years ago to boost its position in the domestic trade and in hard produce such as onions and potatoes in particular. Is FPG looking to become one of the giants of these trades i.e. domestic business and hard produce?
MB: We see the potential in this part of the industry and that has underpinned our investment in the Baird Produce business 2 years ago and now with the purchase of Produce One from the CostaExchange Group. It is our intention to be able to provide a wide range of domestic produce to all major customers around Australia.

What type of changes are you seeing in the Australian domestic market (with retailers and so on) and how is FPG positioned to take advantage of these?
MB: Competition is increasing with new entrants into the retail environment. This will further emphasise the need for both quality and value working in tandem. Understanding consumer needs and wants will increase as retailers look to differentiate their product offering beyond simply price and expectations on supply partners to add value to this relationship will be critical to FPG’s growth.

FPG has already carved out a leading position in Australia's fresh produce import and export trade. What potential do see for further development here?
MB: We believe there is significant upside in both the Import and Export categories. As Australian consumers enjoy the benefits of fresh produce 12 months of the year, the demand for imported lines will only increase.
Similarly, in key categories such as table grapes and citrus, the Export markets continue to show strong demand for quality Australian produce.
These two areas also provide FPG with a ‘natural hedge’ strategy against currency and other geo-political fluctuations.

What plans do you have in terms of developing the R&D, technical and production capabilities of FPG?
MB: As expectations increase from our major customers, FPG is investing and resourcing these areas in the business. The ultimate aim is to have the right people doing the right jobs in the right locations. R&D, technical and production capabilities coupled with targeted investment in proprietary varieties in key growth categories will all combine to support our commercial endeavours.

What kind of potential do you see for FPG 'off-shore' in terms of joint ventures or acquisitions?
MB: FPG already has existing partnerships particularly for our Import and Export divisions. Whilst our focus is on the Australian marketplace in the short term, anything that can bolster our long term strategic plan will be evaluated and considered.

What kind of short- and longer-term goals are you working on for FPG?
MB: FPG wants to bring together the needs of the consumer, grower and customer. Historically, there has been too much focus on two of the three. We believe that we need to bring deep consumer insights and understanding into the discussion in the short term and closely partner with our customers to understand the various levers that will drive innovation, interest and growth into the fresh produce category. If we do this, the long term will look after itself!

Robert Nugan, CEO, Fresh produce Group
In a company statement, you described Mano's naming as CEO-elect of FPG as "a most significant and exciting appointment for the company". What prompted you to recruit a figure of his calibre to the role and what does this move signify in the evolution of FPG?
RN: I have always believed in trying to attract the best talent to help me grow FPG. Mano and I have known each other for many years and we have a great deal of mutual respect. FPG has grown rapidly in recent years and it became clear to me a couple of years ago that I could not continue do this on my own, particularly given the growth aspirations I have for FPG. Mano’s appointment is another key building block in our growth plan.

We understand you plan to work alongside Mano in the CEO role over the coming months before assuming the role of executive chairman of FPG down the track. What sort of role do you see yourself playing in the day-to-day running of the company longer term?
RN: Certainly not becoming the resident golf professional! My handicap will not allow it!
I will hand over the day-to-day responsibility of running FPG to Mano which will free me up to concentrate on a range of business development initiatives across every single business unit within the company.

FPG has enjoyed dynamic growth in recent years. What, in your view, has been the key to that growth and what will characterise the next phase of growth?
RN: It is dangerous to try to be all things to all people. Key to growth in this industry is knowing what you are good at and constantly trying to improve the way you do it. It is very easy to get distracted by what might look like to be a great opportunity. Having a strategic plan and executing it in a disciplined fashion is one of my core principles.

A couple o years ago, you told us "the Australian industry is consolidating and we [FPG] will chart our own course rather than letting others determine our fate". How important is Mano's role to this goal?
RN: Very important. In his previous roles, Mano has led very large produce organisations through major strategic evolution. His commercial ‘nous’ is first class, and he has excellent relationships with a wide variety of people and companies both here in Australia and overseas.
Consolidation in the industry is a worldwide phenomena and given we operate outside the shores of Australia, we need to be cognisant of every international initiative and development so that we can be ahead of the game as to how it might impact us back at home.

A couple of years ago, FPG brought in three new directors from a corporate background to help steer its expansion and diversification strategy - experts in strategy, M&A activity and business development. What influence have those directors had on the company's development and how will their roles tie in with that of Mano?
RN: They have had a significant impact on the FPG business over the last two years. The team now with Mano included has the depth of skills, breadth of experience and motivation to execute our strategic plan. We will fail as individuals but succeed as a committed and unified team. 

Article kindly provided by Asiafruit Magazine Back