CRITICAL THINKING CASE McCain Foods Shifts with the Times Closing a French fry plant in Prince Edward Island in 2014 was part of McCain Foods strategy for moving with the times. The company has been a leader in the potato bus: ness for more than 70 years and closing the P.E.I. plant was one of several moves it made around the world in response to a shifting consumer market. A lot of people were “in shock-really in shock,” John Bryant, a chemical tech. nician for McCain Foods, was quoted as saying with regard to the plant closure in Borden-Carleton, P.E.L. But Earth Action, an environmental group, tweeted: “Fantastic news & blow to destructive potato industry!” Groups like Earth Action are against the use of chemicals in conventional potato production and claim that organic produce is better for humans and the soil. In con- trast, nutritionists tend to believe potatoes are healthy foods; however, the oils used in deep frying and the means of industrial production don’t generally get positive reviews in the health press. Even though restaurants have been using higher quality oils and cleaning the fryers more often, and McCain has reduced the oil absorption of its products, French fries have been linked to poor health in anti-fast-food discussions. McCain traces its roots to Florenceville, New Brunswick. Now it sells in nearly every country in the world. It started using frozen food technology early, which became important to the company’s expansion, and it’s continued to stay on the leading edge. McCain keeps moving forward with innovations in packaging, preserving, and mar- keting to new consumer groups and new countries. It tries to be first to respond to health trends and adopt new ideas. McCain is a family company, led by family members including spouses in both major and minor roles wherever they are best suited. Family members get to know all aspects of the business before they move into the executive suite. And they continue to work at times on the production lines and shop floors even after they become man- agers or executives. Nearly every employee at McCain and the company’s subsidiaries will tell you that they have worked side by side with a McCain family member on some menial task, such as loading a truck or filling boxes on an assembly line. The family has been in agriculture since the 1800s, first in grains and hay. They have been keeping up with change for a long time. When cars arrived on the scene, resulting in a drop in the demand for hay for horses, they adapted by developing pack- aging, which allowed them to sell their hay in other countries. When, in the 1920s the automobile replaced the horse throughout the world, McCain switched from growing hay to growing potatoes. The company’s experience in international shipping gave it an advantage over other producers in the region. The involvement of family mem- bers in the politics of New Brunswick and later P.E.I. also enabled the company to get favourable tax and incentive terms. ness As a vertically integrated company, McCain has a lot of control over its products It controls them from seed to plate, including even the courier company that delivers the memos and documents from head office. Thinking Critically or Men production 1. Prepare a SWOT analysis of McCain potato production. What are the company’ internal strengths and weaknesses? What are the environmental opportunitie and threats facing the company? 2. What competitive advantage does McCain have? Do you think it can keep th advantage? Why? 3. How should McCain move forward considering its land holdings, investments potatoes, and contracts? 4. Investigate online: what is the trend in worldwide French fry production? 2015 Langley “McCain