5 Things Nigerian Food Manufacturers Can Learn From the Success of Honeywell Flour Mills
Honeywell Flour Mills Plc recently recorded the highest revenue record in the company’s 23-year history. In spite of the global economic impact of COVID-19, the company generated ₦109.5 billion in revenue for the 2021 financial year, a 36% increase from ₦80.4 billion recorded the prior year.
Commenting on this groundbreaking achievement, Lanre Jaiyeola, MD of Honeywell Flour Mills said, ‘‘Last year, we crossed the ₦100 billion revenue mark, putting us firmly within an elite company of FMCGs in Nigeria. Never mind that we did this despite a COVID-19 pandemic that disrupted global trade and impacted how we source raw and packaging materials.’’
Following this latest accomplishment, here are five things food manufacturers can learn from the success of Honeywell Flour Mills:
- It is okay to start small
Honeywell Flour Mills started out as one of the smallest mills in the country in 1995.
“The company started with a very small capacity,” Jaiyeola said.
Since then, it has been on a steady upward trajectory and has grown into one of the major food manufacturers in the country.
Honeywell products
2. Branding and reputation matter
Honeywell prides itself on consistently providing good quality flour for baking and other wheat-based food products; Pasta, Ball Foods and Noodles to customers. This has helped the company stand the test of time for over 20 years.
According to Jaiyeola, “The first thing Nigerian bakers want is the comfort around the name of the flour brand, so our unique selling point is that we have a brand that is consistently reliable and a name that is synonymous with quality. Bakers don’t want any surprises that will affect the quality of their dough and Honeywell offers that comfort.”
L-R: Head of Operations Sagamu, Honeywell Flour Mills Plc., Tunde Adebayo; Managing Director, Honeywell Flour Mills Plc., Lanre Jaiyeola; Consumer Marketing Manager, Honeywell Flour Mills Plc., Esther Tontoye and Director of Manufacturing Operations, Honeywell Flour Mills Plc., Ifeanyi Abadom at the product launch of the Honeywell ‘Spaghetti Mini’ at the Honeywell Flour Mills Sagamu Factory, on Thursday, June 10, 2021.
3. Hire the right people and invest in them
Last year, Honeywell increased its staff strength by 1.6% which meant that employee costs went up by 12%. Its FY 2021 financial results show that this was a wise move, as profit after-tax went up 73%.
Explaining the company’s bold decision to hire more staff in a pandemic, Jaiyeola told Nairametrics, ‘‘Our people represent an invaluable asset. I have been in the organisation for close to three decades, and in that period, I have learnt that the quality of our people is the true secret of our business success.
‘‘With the challenges of the pandemic and all that came with it, we had to take deliberate steps to improve the welfare of our staff through the introduction of measures such as flexible working hours and inconvenience allowances paid out to staff at the peak of the lockdown to recognise their sacrifice during that difficult period. Ultimately, improving our people’s overall mental and physical health and safety adds to the bottom line.’’
The company recently launched the Honeywell Spaghetti Mini pack
4. Develop a plan to withstand any storm
No one saw the pandemic coming, but its arrival did not stop Honeywell Flour Mills from surpassing the ₦100 billion turnover mark. This is due to the company’s planning and survival strategies.
Some of these strategies adopted by the company during the heat of the pandemic included implementing operational efficiency initiatives. This led to a 4% reduction in operating expenses (OPEX) despite the double-digit inflation resulting from the pandemic.
The company also prioritised the health, safety and well-being of the employees. Doing this prevented it from shutting down any of its locations due to the outbreak of the virus.
5. Use technology to your advantage
Thriving during a pandemic requires doing business in innovative and efficient ways. This is where technology comes in.
The company recently upgraded its Enterprise Resource Planning (ERP) System, which enhanced its market insights, speed and precision. This upgrade had a positive impact on Honeywell Flour Mills’ bottom line.
According to the MD, Honeywell Flour Mills is committed to ‘‘advancing digital capabilities in the areas of business model, processes, data management, social media and e-commerce to accelerate innovation, fuel new growth opportunities, and improve efficiencies.’’
