CBL Group recognised among Sri Lanka’s Most Admired Companies

CBL Group has been recognised among Sri Lanka’s Most Admired Companies for a fourth consecutive year. Group Managing Director Shea Wickramasingha, in this interview, speaks about the factors that enabled CBL to perform steadily and sustainably amidst the challenges faced in the past two years. Following are excerpts:

Q: CBL Group has been recognised for a fourth consecutive year among Sri Lanka’s Most Admired Companies. What are the core principles guiding your company’s approach?

 At CBL our purpose is to create enriching moments of happiness for people, by being a caring global entity, with a true Sri Lankan identity. We aim to provide our consumers with high-quality, innovative and nutritious food products that exceed their expectations and we operate in an ethical, socially responsible and environmentally sustainable manner. 

Keeping true to this we are governed by our core values of Caring, Quality, Innovation and Integrity. As a caring organisation we are considerate, respect our stakeholders, community and planet. Quality is a key factor in all aspects of our business where we strive with passion to deliver higher value and satisfaction through our products and services. As a food manufacturer we have been known for our innovation and we constantly explore new possibilities to create value and happy moments for people. Our integrity in doing good business is a way of life, where we always act honestly, responsibly and ethically. 

Q:  Most companies have faced unprecedented challenges in the past two years. What do you believe are the factors that have enabled CBL to perform steadily and sustainably, even amidst the challenges?

 CBL, like many organisations in Sri Lanka, faced unprecedented challenges that have tested its ability to perform steadily and sustainably. However, the following actions and factors set us apart from many organisations. 

CBL embraced agile decision-making processes to quickly adapt to changing circumstances. This approach allows for rapid, data-driven decision-making that enables the organisation to respond effectively to unexpected challenges.

We encourage a culture of innovation and creativity, empowering employees to think outside the box and come up with new solutions to overcome obstacles. This involved fostering an environment that supports experimentation and learning from failure.

Further, we focused on building resilience and adaptability within the organisation. This includes equipping employees with the skills and mindset to navigate uncertain situations and bounce back from setbacks. Also, fostering a collaborative and inclusive work environment, at CBL we encouraged employees to work together to find solutions. This involved creating cross-functional teams, promoting knowledge sharing, and breaking down silos within the organisation.

Communication and transparency is also crucial during times of uncertainty. We ensured that employees were kept informed about the challenges the organisation was facing, the steps being taken to address them, and how their roles and responsibilities may change according to the challenges.

Additionally during challenging times, prioritising employee well-being is essential for sustaining performance. We took measures to provide additional support like flexible work arrangements, introduced a total wellbeing platform that supports physical, mental, emotional, spiritual and financial well-being. Also, continued training and development and provided opportunities to make connections that count to help employees navigate the challenges faced. 

With the above strategies we positioned ourselves to perform steadily and sustainably in the face of unprecedented challenges.

Q:  Your views on how CBL continues to be an engine for growth in Sri Lanka’s food manufacturing industry?

 We are one of the largest diversified food manufacturers in the country and we produce a wide range of biscuits, cakes, chocolates, coconut products, soy based products, spices & organic fruits, cereals and soups & porridges. CBL has been operating for more than 50 years and has established a strong presence in both domestic and international markets.

One of the key factors contributing to CBL’s success is its commitment to innovation and product development. The company invests heavily in research and development, continuously introducing new and exciting products to meet the evolving tastes of consumers. CBL’s focus on quality and consistency in its products has also helped to build trust and loyalty among its customers.

CBL’s expansion into new markets has also been a significant driver of growth. The company has established a presence in more than 60 countries worldwide, with exports accounting for a significant proportion. CBL’s success in international markets is due in large part to its ability to adapt its products to local tastes and preferences, as well as its strong marketing and distribution capabilities.

CBL’s commitment to sustainable business practices has also helped to drive growth in Sri Lanka’s food manufacturing industry. The company has implemented a range of initiatives to reduce its environmental impact and improve the welfare of its employees. This has helped to build a positive reputation for the company and attract new customers who are increasingly concerned about sustainability and ethical business practices.

In conclusion, CBL’s focus on innovation, product development, international expansion, and sustainable business practices have contributed to its position as an engine for growth in Sri Lanka’s food manufacturing industry. The company’s continued success is a testament to its ability to adapt and evolve in response to changing market conditions and consumer preferences.

Q:  As one of Sri Lanka’s largest food manufacturers and exporters, how does CBL collaborate with stakeholders across the value chain?

 CBL collaborates with stakeholders across the value chain in numerous ways and we aim to go beyond our value chain to better collaborate and foster partnerships that last. There are few key stakeholders in our value chain who are essential to our business.

Suppliers: CBL works closely with its suppliers to ensure the availability of high-quality raw materials. This collaboration includes establishing long-term partnerships, conducting regular audits, and providing technical assistance to improve the quality and sustainability of the supply chain.

Farmers: CBL actively engages with farmers to promote sustainable agricultural practices. This includes providing training on best farming techniques, offering financial support, and facilitating access to markets. By collaborating with farmers, CBL ensures a consistent supply of raw materials while supporting the local farming community.Distributors and Retailers: CBL collaborates with distributors and retailers to ensure the efficient distribution of our products. This involves sharing market insights, providing promotional support, and offering training programs to enhance product knowledge and sales capabilities.

Consumers: CBL values consumer feedback and actively engages with them to understand their needs and preferences. Through surveys, focus groups, and other forms of communication via digital platforms. CBL collaborates with consumers to develop new products, improve existing ones, and enhance the overall product experience.

Industry Associations, Government and Non-Government Agencies: CBL collaborates with industry associations and government agencies to shape policies and regulations that promote the growth and sustainability of the food industry. This includes participating in industry forums, sharing best practices, and for advocating the interests of the sector. Additionally, our membership in the UNGC enables us to promote UNSDG’s and Human and Labour rights. Whilst other collaborations with UNDP, ILO and OXFAM further strengthens our networks. 

Overall, CBL’s collaboration with stakeholders across the value chain ensures a sustainable and responsible approach to food manufacturing and export, while fostering mutually beneficial relationships.

Q:  How has CBL strengthened the supply chain to adapt to the new normal?

 At CBL, we have pioneered many initiatives in our supply chain to adapt to the new normal. In our sourcing operations we have introduced mechanisation, SMART Agro app and Drone mapping, 60% supplier weightage for environmental compliance, Partnerships for green supply chains, Input management and soil health monitoring and training farmers on good agriculture practices. In manufacturing operations we use data driven decision making and ERP systems, introduced 11,000 KW solar power panels at CBL Foods, biomass generation, boiler ash for brick production and a new effluent management plant, Kaizen teams and efficiency improvements. 

Distribution has been our strength over the years and we at CBL launched our first inter-shuttle transport service, master carton recycling to reduce waste, use of focus app for streamlined distribution planning, solar energy is used at all our main warehouses. In packaging we have shifted to paper based compositions, trials on sustainable packaging alternatives, paving CBL Foods car park with paving blocks made from 250,000 used wrappers. 

Further, we have diversified our suppliers, by identifying and qualifying alternative suppliers to reduce the risk of supply chain disruptions. This includes seeking out local suppliers to reduce transportation costs and lead times and enable economic growth.

End-to-end supply chain transparency is also key in the food business, we have implemented strong communication channels that promote end-to-end visibility that help to monitor the flow of goods through the supply chain, enabling accurate planning and forecasting.

With the nature of supply chains becoming larger and more complex, we embrace the need for greater collaboration within the supply chain network. This involves sharing data and information between companies within a supply chain to enhance overall visibility and better manage risk.

Finally fostering resilience by re-evaluating processes, strategy and stockpiling critical supplies, our companies have put into place back-up plans to be resilient against unexpected disruption. These processes include business continuity planning and mapping out disruptions scenarios to determine how strategies can change accordingly.

Q: Over the years, CBL and its brands have become household names. Could you discuss how CBL’s products have evolved to become staples in the country’s food landscape?

CBL Group is home for many well-known household brands such as Munchee, Tiara, Ritzbury, Revello, Lankasoy, Samaposha and Sera. These brands have evolved to become staples in the country’s food landscape by consistently delivering high-quality, innovative, and affordable products that meet consumer needs.

One of the key reasons for the success of CBL Group’s products is its focus on innovation. The group is committed to developing products that cater to the changing demands of consumers. For example, it has introduced low-calorie and sugar-free versions of its products in response to the growing trend of health consciousness among consumers.

Another factor contributing to the success of CBL Group’s products is its commitment to quality. From sourcing raw materials to production and packaging, the group adheres to strict quality control measures to ensure that its products meet international standards.

Additionally, CBL Group has a strong distribution network that allows its products to reach all corners of the country. The group has invested in modern distribution facilities, including cold storage facilities, to ensure that its products are fresh and available in the market at all times.

In conclusion, CBL Group’s success in becoming a household name in Sri Lanka can be attributed to its focus on innovation, commitment to quality, and strong distribution network. These factors have allowed CBL to evolve over the years and establish itself as a leading food manufacturer in the country.

Q:  How has prioritising people contributed to strengthening CBL’s workplace culture?

 Prioritising people can contribute to a stronger workplace culture in the following ways:

Increased employee engagement and satisfaction: When employees feel that their needs and concerns are being taken seriously, they are more likely to be engaged with their work and satisfied with their job. This can lead to higher productivity, better quality work, and decreased employee turnover.

Improved communication and collaboration: Prioritising people means creating an environment where open communication and collaboration are encouraged. When employees feel comfortable sharing their ideas and opinions, and when they feel that their colleagues are listening and responding respectfully, they are more likely to work well together and achieve common goals.

Greater sense of purpose: Employees want to feel that their work is meaningful and has a positive impact. Prioritising people means taking the time to understand each individual’s strengths and goals, and finding ways to align those with the organisation’s purpose and values. This can lead to a greater sense of purpose and motivation among employees.

Increased trust and loyalty: When employees feel valued and supported, they are more likely to trust their employer and be loyal to the organisation. This can lead to a stronger sense of teamwork and a willingness to go above and beyond to achieve shared goals.

Overall, prioritising people in the workplace can contribute to a more positive and supportive culture, which in turn can lead to better business outcomes and increased employee satisfaction and retention.

Q:  CBL is renowned for supporting value chain stakeholders, importantly purchasing agricultural produce and supporting distributor networks. How does this approach contribute to both CBL’s growth and the well-being of these stakeholders?

 CBL’s approach of supporting value chain stakeholders has significant benefits for both the company’s growth and the well-being of those involved in the value chain. 

Firstly, by purchasing agricultural produce directly from farmers, CBL can ensure the quality and consistency of their raw materials, which is crucial for producing high-quality products. This approach also allows the company to establish long-term relationships with farmers, which ensures a reliable supply of raw materials and promotes sustainability in agriculture.

Secondly, by supporting distributor networks, CBL can expand its reach and improve its market share in different regions. Distributors play a crucial role in marketing and distributing CBL’s products, and by supporting them, the company can establish a strong presence in a given market, which contributes to its growth.

Moreover, by supporting value chain stakeholders, CBL can improve the well-being of farmers and distributors who may otherwise struggle to access markets or receive fair compensation for their work. This approach promotes inclusivity and ensures that all stakeholders in the value chain and beyond benefit from the company’s growth. By contributing to the well-being of our stakeholders, CBL can strengthen relationships, foster loyalty, and promote long-term sustainable growth for both the company and its partners.

Q:  Can you elaborate on how CBL works towards enhancing women’s participation in the distribution network?

Traditionally, the distribution and retail industry in Sri Lanka has been dominated by men. However, fast-moving consumer goods (FMCG) companies like Ceylon Biscuits Limited (CBL) have recognised that developing and advancing a distribution network that includes both men and women can lead to business benefits.

Women entrepreneurs are contributing fresh perspectives, skills, and ideas that can help drive growth and competitiveness in Sri Lanka’s FMCG industry in the long term. The impacts of empowering women in entrepreneurship are positive social and economic outcomes for everyone.

Building an inclusive distribution network is important for CBL – it views all distributors and retailers, both men-led and women-led, as critical business partners that play a key role in the company’s success. To take action towards a more inclusive distribution network, CBL collaborated with IFC to map the participation and barriers and facing women-led distributors and women-led retailers in CBL’S distribution network and gather insights on the business advantages.

CBL’s “Senehasin Jayamagata” or “Route to Success” program is a capacity building program for the distributors and retailers in CBL’s network. The program, as part of the IFC and Australia Department of Foreign Affairs and Trade (DFAT) Women in Work program, aims to build the business skills of the distributors and retailers in the network of CBL, increase and enhance women’s participation in the distribution network, and introduce and promote the use of digital payment methods across the network.

Through this program we have been able to improve diversity in over 5,000+ SME businesses in the CBL network. As a result we saw an increase of 313% increase in female owned distributors, 128% increase in female participation in distributor operations and 35% of the 3,850 retailers trained through the program were women.