Company Background and History

Paradise Beverages Fiji Limited (PBFL), formally known as Foster’s Group Pacific Limited
(which also was formerly known as Carlton Brewery (Fiji) Ltd.), is a Fijian publicly quoted
firm that operates as a holding company for a group engaged in the manufacture and sale of
beer, ready-to-drink alcoholic beverages and soft drinks; distribution of wines; as well as the
distillation and sale of potable and industrial alcohol. Paradise Beverages Fiji is a subsidiary
of Coca Cola Amatil, an Australian company that is one of the largest beverage companies in
the Pacific region. Coca Cola Amatil (Fiji) is also a subsidiary of Coca Cola Amatil

Through its subsidiaries, the company operates in Fiji and Samoa. It has offices in Suva and
Apia; brewing operations in Suva, Lautoka and Apia; and a distillery in Lautoka. It exports
its products to more than 20 other Pacific Island markets. Paradise Beverages aims to become
the leading multi-beverage supplier in the Pacific community.

The principal activities of the group are the manufacture and sale of beer, ready-to-drink
alcoholic beverages and soft drinks, distribution of wines as well as the distillation and sale of
potable and industrial alcohol. Its segments include beer, spirits, soft drinks and other. Samoa
Breweries Limited, is the subsidiary of the Company, which is engaged in the manufacture
and sale of beer and soft drinks.

The principal activities of the group are the manufacture and sale of beer, ready-to-drink
alcoholic beverages and soft drinks, distribution of wines as well as the distillation and sale of
potable and industrial alcohol. Its segments include beer, spirits, soft drinks and other. Samoa
Breweries Limited, is the subsidiary of the Company, which is engaged in the manufacture
and sale of beer and soft drinks.

Paradise Beverages Fiji has so much history in Fiji and the South Pacific and is the most
recognisable brand of alcohol beverage industry (thanks in part to the thousands of university
students that come from other neighbouring countries to study in Fiji every year).

Cooperate Governance Structure

PBFL encourages cooperate responsibility. It is expected of all employees to know all the
basic principles by which business is conducted. The philosophy is that, as a team member,

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one must comply with all applicable laws and regulations, adhere to the highest ethical
standards and to act as responsible members of the communities that frequently interact with
the company.
There must be integrity. Long Term, Trusting business relationships are built by being
honest, open and fair. There must be respect for each other also. Employees are also
encouraged to have dedication for high quality standards and continue to always be a better
person.
Company Distribution
Paradise Beverages employs around 300 staff across Fiji and Samoa. One of its four sites, the
Suva Brewery employs 119 people and produces Fiji Bitter, Fiji Gold (Fiji’s number one
selling beer), Vonu Pure Lager and Fiji Premium, as well as a range of Ready to Drink (RTD)
products including Bounty Rum and Cola, and the Tribe range. Other facilities include its
Samoan Brewery (home of Vailima Beer, Samoa’s biggest selling beer), it’s Lautoka
Distillery (home of the award-winning Bounty Rum range) and the Lautoka Distribution
Warehouse.
Management

Management is the action system which possesses key requirements needed for getting the
objectives of any enterprise accomplished through the efforts of its personnel. Management is
essential for directing and unifying the group efforts of personnel towards a common goal.
Management alone possesses the authority for getting things done through personnel, but at
the same time must provide the proper dynamics that will allow internal company fluidity,
communication and cooperation. Management in a way, helps create economies and is
continually responsible for any changing characteristics within these economies via
innovation and adoption of fresh ideas and novel thoughts.

Management operates through several functions, often classified as scheduling, organizing,

leading/directing, and controlling/monitoring.

 Scheduling: Deciding what requires to happen in the future (today, after that week,
after that month, after that year, in excess of the after that 5 years, etc.) and generating
plans for action.
 Organizing: (Implementation) creation optimum use of the possessions required to
enable the successful carrying out of plans.
 Staffing: Job analysing, recruitment, and hiring individuals for appropriate jobs.

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  Leading/directing: Determining what requires to be done in a situation and getting
people to do it.
 Controlling/Monitoring: Controlling/Monitoring checking progress against plans,
which may require modification based on feedback.

PBFL - System Approach Management

The first vital level in system management is the determination of organisation system. Since
Organisation is a deliberate and purposive creation, the vital objectives of the organisation
should be determined before its creation. Determination of objectives is significant because
every effort is directed towards realization of these objectives.

In the second level, each unit of the organisation is arranged in some combination to give
desired results. Systems design gives the overall framework for implementing systems
concepts. It comprises strategic and comprehensive scheduling for the whole organizational
system, as well as the development of operation and facilitating sun-system.

The third level-operation and control-refers to conversion of inputs into outputs. Inputs may
be in the form of information, materials, and power. The inputs are allocated to plan, though
it is possible to eliminate parts of the scheduling required throughout operations through
designing system with predetermined input allocation structuring the system to operate in a
specified fashion and with more predictable results. Operation of the system requires some
sort of control, that is, a mechanism for output or related features, comparing his
measurement with the average, and activating the element to adjust inputs to correct the
deficiency. This is necessary to uphold the equilibrium of the system close to the ideal point.

The fourth level pertains to review and evaluation, that is, to ascertain how well the system
has performed. This is dissimilar from the control in the sense that control refers to operating
efficiency, while the concept of review and evaluation is more comprehensive, and always
relates the functioning of the system to its objectives. The review and evaluation happen at
periodic intervals throughout the life cycle of a system and lead to design changes in the
present system or recommendations for changes which may be operated in future systems

Strategy

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The top management of an organization is concerned with the selection of a course of action
from in the middle of dissimilar alternatives to meet the organizational objectives. The
procedure through which objectives are formulated and achieved is recognized as strategic
management and strategy acts as the means to achieve the objective. Strategy is the grand
design or an overall plan which an organization chooses in order to move or react towards the
set of objectives through by its possessions. Strategies mainly often devote a common
programme of action and an implied deployed of emphasis and possessions to attain
comprehensive objectives. An organization is measured efficient and operationally effective
if it is characterized through coordination flanked by objectives and strategies.

PBFL Sales Strategy

 Focus business to drive budgeted sales Volume and implement strategies to achieve
maximum market share.
 Develop and execute Drive Brand investment plans
 Fiji Bitter, Fiji Gold, Fiji Premium Beer, RTD – Bounty Rum & Cola, Bounty Zero,
Tribe and other minor brands.
 Focus innovation:
 brand extension (Fiji Taki Beer, Draught Beer, new Tribe Flavours and Mid-
strength)
 creativity in brand awareness, visibility and availability of brands
 Creative signs for in store marketing
 Improve billboards and signage in all outlets.
 Capitalise on all major sponsorships and key events.
 Implementation of hot spots displays, coolers and shelves realignments.
 Being pro-active with customers and illustrate the benefits of selling our brand
(profit story and secondary benefit) with examples from the past.
 Strengthen Customer Planning
 Formulate detailed pro-active customer and consumer tactical promotional
plans (activity planner).
 Implement merchandising and on premises promotional plans
 Effective supply planning to ensure stock availability (SOP)

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  Working in partnership with Key Customers showing gross margin bracket to
other Sales that contribute to there business (Key account customer
management) (MH and New World Supermarkets)
 Engage with key stakeholders for improved insights.
 Excel in execution
• Reduce portfolio complexity with clear focus on drive brands
• Implementation of Visibility and availability strategies
• Trade Marketing Activity to drive sales throughout the year
• Hire the best people to make it happen
• Identifying the main drivers
 Understanding Financial information
• Provide the team with detail data on customer trend analysis and
business gross margin across brands.
• Implement effective forecasting strategies.

SWOT Analysis
A SWOT analysis of Paradise Beverages (Fiji) Ltd provides a strategic SWOT analysis of the
company's businesses and operations. The profile shows a comprehensive view of the
company's key strengths and weaknesses and the potential opportunities and threat. The
company faces a growth potential. The market shows growth potential.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

- high profitability - future debt rating - growing demand - rising cost of raw
and revenue - new acquisitions materials
- future profitability
- technological
- experienced
- tax structure problems
business units
- cash flow
- cost structure
- barriers of market
entry - competitive market

- existing distribution - productivity

and sales networks

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- high growth rate

- domestic market

Case Study A – Health Safety Environment (HSE) Risk Control

Prior to implementing a Risk Management Program, there are a number of critical elements
that need to be in place to allow the system to work effectively and efficiently.  Note that the
scope of this risk study begins from the receipt of raw materials to the storage and dispatch of
finished goods in the internal warehouse.
Objectives:
Having an effective method to Consult & Communicate through all levels of the
organization.  It is important to ensure that all parties who may potentially come into contact
with workplace hazards are both aware of the potential risk and the steps required to control
this risk.  In the case of PARADISE BEVERAGES FIJI, the primary method to ensure an
effective flow of information is to have a functional site HSE Committee.
However, there are a number of specific requirements related to the communication of
important information back to the employees in the workplace.  It is important that
information is conveyed in an effective, timely manner to ensure that the Risk Management
process functions as intended.  Important information for the committee to monitor includes:
Identification of any new significant hazards;
Monitoring the risk assessment schedule to ensure compliance;
Monitoring the effectiveness of critical hazard controls;
Monitoring the status of hazard controls still to be implemented; and
Monitoring the status of Risk Management Training.
It is the committee's responsibility to monitor all of the above items and minute all relevant
information for review by workplace employees.

Risk Management Training

In order to have an effective Risk Management System, all relevant managers/employees
need to be trained in the key system requirements.  These include:

Training/Competency Audience

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 Risk Assessment Designated employees who will
perform risk assessments.
Job Safety Analysis All maintenance personnel, as well as
any designated employees who may
perform non-standard activities.
Standard Operating Procedures (SOPs) All employees should be trained in the
SOP(s) that are relevant to their daily
tasks/responsibilities.
Site Induction All employees and contractors must
have undertaken a site induction within
the past 12 months.

Site Hazard Register

A Site Hazard Register provides a central location where all significant site hazards are
documented and monitored.  Key elements of a Site Hazard Register include:
Location of the Hazard;
Details of the Hazard (Machine / Chemical / Activity);
Description of the Hazard (Entanglement, Crushing, Ergonomics, Environmental,
etc);
Initial Risk Rating;
Details of Hazard Controls currently in place;
Details of Hazard Controls still to be implemented;
Relevant Corrective Action tracking information;
Residual Risk Rating; and
Details of who performed the Risk Assessment.
PARADISE BEVERAGES FIJI has developed a template for a Site Hazard Register that
includes all of the above requirements.  

Site Environmental Management Plan (SEMP)

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A SEMP provides details of all potential impacts to the environment and improvement
initiatives that are currently being worked on to improve overall environmental performance.
Several important requirements for inclusion in a SEMP include:
Legislative Requirements (licenses, permits, etc.);
Summary of Environment-related site hazards;
Waste Management Procedures;
Guidelines for Refrigeration Substances;
Noise Control Procedures;
Stormwater Management;
Energy Use and Management;
Water Use and Minimisation Plans;
Environmental Monitoring Requirements; and
Environmental Improvement Plans.

Corrective & Preventative Action (CAR) System

A Corrective & Preventative Action System provides a means for tracking any required
actions to conclusion.

Auditing Methods
Tactical Combat Casualty Care course (TCCC)
Telecom Consumer Complaints Monitoring System (TCCMS)
The Coca Cola Management System Evolution 3 (TCCMS E3)
Corrective Action Plan (CAP)
CCSP | Certified Cloud Security Professional | (ISC)² Certification
Government Accountability Office (GAO)

Conclusions:

The overall outcome of this Stage 1 TCCMS audit is a Pass. Five process-related Minor
Nonconformities and 8 Improvement Opportunities were observed during the audit. The
findings were not indicative of structural process failure. The management team is committed
to high safety standards on the Production Site. The housekeeping and traffic management on
site is impressive and recent improvements in chemical management and machine guarding
are to be commended. There is now a need to formally document the required risk

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assessments in the highlighted areas so the site ensures their safety management continues to
improve. The Operation displays the characteristics of the Compliance Phase in the
TCCMSe3 Maturity Continuum for Safety. There was one legal non-conformance detected
during the audit and this was in the ensuring of enough security for the machines, however
the site had completed the corrective action plan by 2016.

Case Study B - Major Operations

In 2015, Operations Feedback Systems (OFS) a leading provider of real time productivity
improvement software, announced that Paradise Beverages had deployed the OFS Software
Suite to its manufacturing facility in Suva, Fiji.
 
It was always a challenge for PBFL to monitor downtime on packaging lines. Machine
operators were depended upon to write down any losses, but as usual, recording any micro
stoppages was always a problem. Following a successful OFS deployment, PBFL is now
easily able to monitor line performance in real time, as well as capturing all downtime and
allocating losses to the relevant categories.

The downtime information is available in real time and it has become much easier for the
company to figure out which machine is causing specific losses. Issues are attended to there
and then. The machine operators no longer have to write down the downtimes in the logbooks
and there is a significant level of engagement, with a substantial amount of comments and
observations recorded by operators on a daily basis. The operators feel that their input is
valued and actually lots of pointed information is being passed on to management,
maintenance and service teams.

Paradise Beverages has invested in large displays that are mounted in the packaging line area
displaying line performance to all staff working on the floor. Not only has OFS helped
monitor line performance but also provided timely information on the SKUs that are being
produced. This is used by Logistics and Sales department, who now monitor in real time the
amounts available for sale, hence improving customer service.