MBR_Issue_28 -February 2017 (1)

Malta Business Review
CORPORATE INTERVIEW OF THE MONTH
CORPORATE INTERVIEW OF THE MONTH
Malta Business Review
Logistics Centre
PRESERVING CULTURE,
DRIVING TRANSFORMATION
By Martin Vella
Exclusive interview with Mr Louis A Farrugia, Chairman
of the Board of Directors of Simonds Farsons Cisk plc.
Farsons has a history of good governance and a reputation of a
good employer. This has enabled it to employ good people and
engage well qualified representatives on its various Boards. Mr
Farrugia says that maintaining this tradition, Farsons have been
on top of the issues they face, both in the short term and long
term visions that they have set for the Group.
MBR: What is FARSONS culture?
LAF: Farsons Culture is embodied in our
Mission Statement, which states: “Our
strategy is based on creating and nurturing
world class brands which inspire the trust
and loyalty of consumers; championing
customer relationships and building
meaningful partners; engaging talent
and empowering employees to deliver
sustainable and quality driven operations;
connecting with the community and
embracing our social and environmental
responsibilities; providing a fair return
to shareholders to ensure long-term
investment and profitable growth. Thus we
shall accomplish our vision of growing our
local and international business to establish
the Farsons Group as a regional player
within the food and beverage sector.”
MBR: Where is the business today and
how do you see the company positioned?
LAF: Our main business remains the
Maltese market but our vision is to grow
our export markets over the next decade.
Our main investments remain within the
beer industry – increasing our quality and
productivity throughout our operations to
improve our competitiveness.
Our recent major €27 million
investment was that of a new
multi-purpose beer packaging
hall which incorporates three
different packaging lines
MBR: Do you concentrate on particular
industries and what can you tell us about
your current project and investment
strategy?
LAF: Our recent major €27 million
investment was that of a new multipurpose
beer packaging hall which
incorporates three different packaging lines
– a returnable glass unit, a one-way line
and a canning line. This is now enabling us
to export new packages in many different
formats. We are currently exporting our
beers to Italy, UK, China, South Korea and
will send our first consignment to the USA
very shortly.
MBR: Having gone through your
investment process so many times, are
you ever taken by surprise?
LAF: In 2008 we invested in a new PET soft
drink packaging line and a new Logistics
Centre. I was surprised at the improvements
we achieved in our competitiveness once
we got used to the new ways of production.
MBR: Is it challenging dealing with
regulation and the short-term mentality
that is prevalent today when you’re
investing long-term?
LAF: Our biggest frustration is that as
a serious law abiding corporate citizen
we are subjected to elements of illicit
competition from opportunists who seem
to get away with their illegal activities.
MBR: Do you work with the existing
management in the companies you
invest in as opposed to trying to replace
executives?
LAF: As I stated in my first answer, we have
a good track record of recruiting good
management material. Our management
team is a mix of long service elements and
recently recruited experienced managers.
The mix is a healthy one and establishes
the Farsons’ culture.
MBR: How do you define the role the
board should play today?
LAF: The role of the Board of Directors is
fundamental to the success or otherwise
of the company. The Board appoints its
Chairman, CEO and Senior Management
positions. As a result of good decisions
trust is won over from the Group’s
employees and vice-versa.
MBR: How important is the brand for
you?
LAF: The Farsons brand represents all that
the Company stands for. It conveys to the
public all the achievements over its 90 year
history, namely, good quality products,
good employer, a good investment for
its shareholders, proud wholly owned
Maltese Group of Companies competing
on the world stage against the best in the
world. It represents all that everyone to
do with the Group has worked so hard for
all these years. Naturally I feel very proud
of our achievements. MBR
All rights Reserved. Copyright © 2017
New Brewhouse
Packaging Hall
EDITOR’S
Note
Mr Louis A Farrugia
FCA qualified as Fellow
Member of the Institute
of Chartered Accountants
in the UK. He is the Chairman of the Board
of Directors of Simonds Farsons Cisk plc. He
is also Chairman of Multigas Ltd, Liquigas
Malta Ltd and Farrugia Investments Ltd. Mr
Farrugia served as Chairman of the Malta
Tourism Authority and Air Malta. In 2004
he was nominated a member of the Order of
Merit by the President of Malta in recognition
of his contribution on a national level to the
industry and enterprise in Malta and in 2013
he was bestowed the honour of Ufficiale dell’
Ordine al merito della Republica Italiana
for his voluntary involvement in initiatives
outside his direct line of business.
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