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Agrimarketing : January February 2008
January/February 2008 AgriMarketing 65 encers. Participation is by invita- tion only. • Thinking Globally --- Managing Locally: With a presence in so many countries, the company strives to tailor its global out- look to a local perspective. This approach enables it to address spe- cific concerns of its individual clients. NEW DIRECTION By 2005, Alltech's animal products comprised 92% of the company's business while its products for the ethanol markets amounted to only 8%. "Although ethanol had 60% of my enthusiasm and 40% of my time," Lyons says, "we decided to sell our first 'baby' and concentrate on our other emerging lines." Today, the company is composed of four divisions: • Animal nutrition (including aquaculture, new in 2007), • Human nutrition, • Agronomic, and • A Rural Community Biorefinery Concept. "We expect each of our com- pounds and geographic areas to achieve a 20% growth rate," Lyons says. "Although our research is con- stantly generating new products and uses, we have decided to concentrate on those which will help us accom- plish our goal." Eight years ago, the company had more than 300 products, but deter- mined to scale that back to the "Big Six" it thought would have the great- est growth potential (MTB-100/ Mycosorb, Bioplex trace minerals, Bio-Mos, Sel-Plex, Yea-Sacc, and Sil-All). It allowed the organi- zation to focus its attention, streamline its processes and bet- ter serve each market. Last year, it increased its line to the "Big Nine" (Optigen, NuPro, Alltech SSF). Animal Nutrition is, by far, its largest division, so the remainder of this article will concentrate on its activities. SALES AND MARKETING The company sells directly to feed companies, both national and regional in market scope, as well as to large livestock integrators. Although all are important seg- ments, the company reports it has had a larger level of success with the smaller feed companies. Smaller feed companies are always looking for a competitive advantage, and typically can move much quicker than a larger company. Alltech is a fast moving company so the fit is natural. As Alltech products move from niche market to mainstream, larger compa- nies are taking notice and Alltech has seen growing acceptance in this area. It has a sales force of 80 within the U.S. and distributes its products directly to its customers. Strategi- cally located throughout the country are 14 facilities, most featuring man- ufacturing, laboratory and ware- houses to quickly process and fill its orders. Having many regional facili- ties allows the company to achieve its goal of "thinking globally while managing locally." Its products are normally higher priced than its competitors. "We invest way more in research and develop- ment than others in the market," Lyons comments. "The result is we are way ahead of the pack in better, more innovative products. Our customers recognize that and will support our (more on page 67) ALLTECH TIMELINE 1980 Company founded, first as a supplier to the alcohol indus- try, and soon after, as a supplier of biotechnology derived ingredients to the livestock and poultry industry. 1981 Opens its first international office in Ireland. 1982 Builds its first North Ameri- can biocenter in Kentucky. 1983 Launches its first animal feed additive (Yeas-Sacc 1026). 1985 Hosts its first annual "Feed Industry Symposium." 1988 Alltech UK opens, Alltech has 80 employees. 1990 Launches Bioplex Range of Trace Mineral Supplements. 1993 Launches Sel-Plex organic selenium. 1994 Launches Bio-Mos, a biolog- ical gut microfloral modifier. 1996 Opens its Asia Pacific bioscience center in Beijing, China. 2000 Passes $100 million in sales. 2003 Substantially expands its headquarters facilities. 2006 Announces it will be the lead sponsor of the FEI World Equestrian Games, new Aquaculture center, and its 3rd Biosciences cen- ter in Thailand. 2007 Opens its first Nutrigenomics center. ALONG THE WAY Entrepreneurs like Dr. Pearse Lyons are known for their quest to try new things. In his case, he also owns the Alltech's Lexington Brewing Co., whose brands include Kentucky Ale, Kentucky Light, and Kentucky Bourbon Barrel Ale. He also recently acquired the golf course next to Alltech's headquar- ters. "Not to play golf," he says, "but to control the land for our future expansion." AM Alltech's 200,000 sq. ft. warehouse enables it to perform QA/QC tests before shipping globally. This warehouse turns over about once a week.
2008 Marketing Services Guide
Crop Life America