Saputo (TSX:SAP) produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is one of the top ten dairy processors in the world, a leading cheese manufacturer and fluid milk and cream processor in Canada, the top dairy processor in Australia, and the second largest in Argentina.
Top three cheese producers and the largest manufacturer of branded cheese
In the United States of America, Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the largest manufacturer of branded cheese and a top manufacturer of dairy spreads.
Strength and resilience of a global platform
Fiscal 2021 appears to have been a pivotal year in Saputo’s history. While Saputo certainly felt the effects of the COVID-19 pandemic, the company’s performance reflects the strength and resilience of a global platform. Amidst an atmosphere of uncertainty, Saputo stood firm in the company’s values and never wavered in the company’s resolve to do the right thing for all stakeholders.
Prioritizing employee well-being with programs and initiatives
In addition, Saputo’s employees appear to be the heartbeat of the company and the company always seems to prioritize employee health. In addition to enhancing Saputo’s already robust safety protocols, Saputo maintained the company’s commitment to no layoffs due to COVID-19 and prioritized employee well-being with programs and initiatives designed to offer peace of mind and recognize the critical role the company’s workforce plays.
Rallying to supply high-quality products
As an essential provider, Saputo’s teams rallied to supply the high-quality products the company’s communities rely on. Employee contributions helped drive Saputo’s business forward and reinforce the vitality of the company’s culture every single day. Saputo also appears to consider patron farmers as valued members of the extended Saputo family, supporting them with additional services and resources to help alleviate the mental and physical impacts of the pandemic.
Turning challenges into opportunities
In addition, Saputo also worked with local community organizations to help those most vulnerable, mainly to ensure food security. To date, Saputo’s COVID-related financial and product donations have reached over $10 million and counting. Saputo has turned challenges into opportunities as the severity of the pandemic and corresponding government-imposed restrictions evolved throughout the year.
Leveraging the brand power of the company’s retail portfolio
Further, Saputo has had to contend with fluctuating shifts in consumer demand, impacting all the company’s sectors to varying degrees, as well as a significant amount of volatility. Saputo appears to have been able to capitalize on the business upswing by leveraging the brand power of the company’s retail portfolio and by engaging with retail customers to tailor the company’s offering to match rapidly-changing consumption patterns.
Overall, Saputo operates in a wonderful industry and has some pretty significant competitive advantages. This is a great stock for all millennials and retirees to own over the long term.