The Conversation ADOLFO ORIVE, PRESIDENT AND CEO, TETRA PAK

TETRA PAK IS SYNONYMOUS WITH PACKAGING IN INDIA. THE €11.1 BILLION SWEDISH CONGLOMERATE ALSO HAS A ROBUST FOOD PROCESSING AND A PROCESSING EQUIPMENT BUSINESS IN 161 COUNTRIES. COMPANY PRESIDENT AND CEO ADOLFO ORIVE TALKS TO FORTUNE INDIA ABOUT DEALING WITH EVOLVING FOOD HABITS OF CONSUMERS, SWITCHING TO SUSTAINABLE PACKAGING AND MANAGING COSTS IN AN INFLATIONARY ENVIRONMENT.

- AJITA SHASHIDHAR.

COVID-19 CHANGES

The pandemic brought about a massive change in the way businesses are run. What has changed the most?

The world drove globalisation to the maximum. In 2018, when we were developing our 2030 strategy, we started seeing a move towards more balance between ‘global’ and ‘local’. The pandemic accelerated the trend. We, too, are trying to balance the benefits of being global with speed and adaptability of being local.

There has also been a change in consumer behaviour. Today’s consumers are more conscious about health. Also, they are not happy with generic products. Earlier, it was okay to make the same hamburger for everybody but now you have to tailor-make it for every country and consumer. The third important trend is food safety, and that is all about sustainability. Sustainability is not just about recycling 1 It is also about how sustainably you source your products. It’s about food safety.

Of course, there is inflation, a consequence of realignment of the industry. We run the most efficient supply chain in the world, but as we move towards more regional focus, we can’t get the same supply chain efficiency. That is why you are seeing inflation in the system.

How do you manage costs in an inflationary environment?