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Welcome to UTT's Blog. Our first series of blogs will feature the diary of our MSc. Industrial Innovation, Entrepreneurship and Management (IIEM) students as they go on the INTERNATIONAL STUDY TOUR - PANAMA.







Friday, August 20, 2010

Cawy Bottlers

The visit to Cawy Bottling Co. Inc. began with a warm welcome from the President, Mr. Vicente Cossio who shared some of the company’s history which dates back to Cuba in the late 1940’s pre revolution. The original partners began the US Company in 1964 with other exiled Cuban investors and the company is still owned and operated by their decedents. The company has a diverse assortment of uniquely flavoured tropical carbonated soft drinks and these award winning beverages are distributed across the US to states such as Texas, New Jersey, California and Illinois and also the Caribbean, South America and Europe.


The factory currently produces 12 different product lines. These processes to manufacture the drinks are very straightforward. The raw materials required to manufacture a can of carbonated drink are treated water, carbon dioxide, high fructose corn syrup, artificial flavouring and the aluminium can. The raw materials are ordered and stored in large quantities on the compound. The process begins with treated water which flows into a tank and the carbon dioxide and artificial flavouring are injected into the water which forms the mix.




The cans are then transported to the filling machine via a conveyor system where they are filled to a specific volume. Lids are then placed on the top of the cans to seal them. Next, the cans are placed on cardboard cartons and a layer of plastic is placed on top of the cans. The cartons are then placed on pallets by a palletizing machine and the pallets placed in the warehouse. It was noticed that the factory has an uncomplicated layout and utilizes machines adequate for its production lines.



The company distributes its products in the South Florida area with its own fleet of trucks to major supermarket chains such as Publix, Winn-Dixie, Sam’s Club, Wal-Mart, BJ’s and Costco just to name a few. When looking at the sustainable practices that the company operates, Mr. Cossio mentioned that a calculated decision was made to run its production line below capacity to ensure the longevity of the machinery used at this facility. When asked about breaking into additional markets in the US, Mr. Cossio stated that he would be interested and excited, if he could get the right distributor for his products. The group enquired how the company ensures continuity of products in response to changing consumers’ tastes such as increasing preference for more health conscious beverages. He explained that the company had introduced diet lines to some original products. The company adheres to stringent quality controls guidelines and has never had any product recalls.


The company is innovative in its capacity to offer a wide range of soft drink flavours such as pineapple, watermelon and coconut. Similarly, as mentioned before, each of these flavours is also available in diet form. There are also future initiatives to develop recipes based on market demand such as replacing the corn syrup used in production with cane sugar. These drinks are also exclusively packaged in aluminium cans rather than glass bottles which have been phased out some years ago. This innovative decision allowed the company to reduce costs and simplify operations by eliminating losses due to broken bottles and expenses to collect returnables.


Other evidence of innovation is displayed in the redesigning of the aluminium can. Traditionally, the lid had the same circumference as the width of the can. However, in its latest form, the lid is tapered such that the amount of material used to make the lid is lighter, easier to ship and therefore much more cost efficient. Similarly, modifications to the bottling line were developed and implemented in-house such that existing equipment was able to operate with the redesigned cans. Overall, the company’s innovative performance aims to keep operations uncomplicated, neat and adequate such that cost reductions are derived and maintained. Cawy, with its straightforward bottling operations, its charismatic leader and efficient staff, demonstrate their innovative capabilities and calculated use of technology for ensuring longevity of their business. This has allowed them to become one of the leading soft drink manufacturers in the Miami tri-state area.





Authors: Laura, Sharon, & Sheldon.







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