Meeting consumers’ expectations | Tony Zammit Cutajar

P. Cutajar Co. Ltd has been operating for 150 years? How did the company evolve over the years? How many generations has the firm seen?

"The company was founded in 1865 by Paul Cutajar. Initially, he dealt in commodities and established a thriving coaling business. Within 15 years of founding the company, he also moved into importation and became the first overseas distributor for Martini vermouth.

"At the beginning of the 20^th century P. Cutajar was amongst the largest shipping agency in Malta. I am a member of the fourth generation of the Cutajar family and we already have a member of the fifth generation working with the company."

What products and services do you offer?

"Our range of products is varied and includes chocolate and confectionery, coffee, wines and spirits and have also also entered the frozen food sector.

"We also operate two Solaris sunglasses shops in Valletta and Sliema and we also have a retail store named The Store at our headquarters in San Gwann."

You have moved to new and bigger premises. Can you brief me about the move?

"Our previous premises in Mriehel were constructed in the early 1980s and basically our business outgrew them. Furthermore, Mriehel is developing into a major commercial destination and we are looking at various possibilities to redevelop this property."

Being early to innovate has always been a critical success factor. Now more than ever. customers demand active interaction with their brands. What is the key to survival and success?

"I believe that the key to survival and success can be summed up in one word - change. Most business models are constantly changing so one has to keep up with the amazing technological advances being made.

"We lost a major part of our business with the demise of the photo business but we also learnt a very important lesson."

How can companies like P. Cutajar anticipate changes in consumer tastes and preferences?

"By staying very close to our customers and ensuring that we are truly a customer-centric company."

What changes or strategies have you implemented and seen over the years? What other products have you had to explore? How has your firm navigated such challenges?

"We had, about 20 years ago, entered the retail sector with our one-hour photo shops. When this business ended, we opened two Solaris sunglasses stores in prime locations in Republic Street, Valletta and Tower Road, Sliema.

"In the import and distribution sector, we consolidated our position by assuming distribution for the entire portfolio of Bacardi Martini products while also exploring new business sectors like frozen foods."

How has information technology helped your firm interact? As a CEO, how are you signaling the importance of communicating?

"We are already using social media (Facebook) in a rather big way in order to get our marketing message across especially to younger consumers. As a firm which believes in IT we have an in-house IT department that is constantly looking for new ways to improve our business processes."

What are the main developments and challenges in store for Malta's consumer market for 2012?

"Malta's market is fully liberalised and very competitive and all this is good news for the consumer. We have also witnessed the entry of foreign-owned supermarkets in recent years and also an increase in foreign-owned businesses in the restaurant business.

"Companies like ourselves must do all they can to remain competitive. This I think is key."

With the disruption that we're seeing in the world's economy, has the sector been reasonably resilient or relatively resilient to the crisis?

"I believe that our market has performed relatively well given the precarious position of several economies close to our shores. I think I would put this down to two main reasons: tourism, which is so important for our economy, has done well. We also have very little unemployment which is something that we should be very pleased with."

What are your future plans?

"I am cautiously optimistic. Our firm has been in business for 150 years so I am confident that if we remain focused on what we do, we should hopefully be around for a few years more!"

P. Cutajar Co. Ltd: Past and present

In 1861, at the age of 17, Paul Cutajar started a trading business operating from his residence at 20 Strada Reale in Valletta. He initially imported wheat and cereals but was also active in the coal trade, even buying a steamer "Nave Elena" for this purpose.

Business prospered and in 1865, he changed the name of the firm to P. Cutajar & Co. The new firm expanded rapidly, and several important distributorship agreements were concluded. Two of these Martini & Rossi (1880) and Benedictine (1886) exist to this day.

Paul Cutajar died in 1897 leaving the business to his nephew, Arthur Zammit Cutajar. As Arthur was too young at the time of Paul Cutajar's death, his father Francesco Zammit administered the business until 1907.

In 1905, P. Cutajar & Co. was appointed the exclusive distributor for Dewar's White Label Scotch Whisky. The company moved to offices in 12 St Paul Street, Valletta in 1908. In the early part of the 20^th century, the company's main focus was in the ship agency business. In 1913, the company was the largest steamship agent in Malta, according to the historical book "Malta & Gibraltar" ,  handling 323 ships in that year.

In between the two world wars, the company concluded agreements with Eastman Kodak (1937) as Kodak distributor in the Maltese islands. Arthur Zammit Cutajar passed away in 1958. His sons Alfred, Francis and George succeeded to the business. They became the first directors when the firm was turned into a limited liability company in 1958.

P. Cutajar & Co. Ltd has moved away from the ship agency business. It is now focused primarily on the importation, distribution and retailing of fast-moving consumer goods. Many notable additions were made to the company's portfolio over the years. Particularly noteworthy among them are Ferrero chocolates (1967) and Lavazza coffee (1987). In recent years, the company acquired the distribution rights for JP Chenet Wines, Highland Spring mineral water, Pasqua and Bersano Wines, Gonzalez Sherries, Pellito nuts and now the latest addition is the operation of two Solaris designer sunglasses shops in Valletta and Sliema and Vincent Shoes for Children in Sliema.

In the early 1980s, the company had outgrown its premises in Valletta which had served the company for more than 75 years, and moved to custom-built premises in Mriehel in 1986, which still remain its operational headquarters to this day.

The present management team of the P. Cutajar Group is composed of eight persons and includes two fourth generation members of the Cutajar family, and also one member of the fifth generation. The company believes in a healthy mix of family and non-family participants in senior management and this is also reflected in the composition of the Board of Directors which includes two non-family members.