Cargill collaborates with farmers, food makers and industrial customers to bring new ideas to the table.

Connections Carnival story Kevin Waters

Cargill’s Kevin Waters notes the company has a reputation in the cruise industry as a supplier that can make things happen.

 

All hands on deck.

Some of the biggest names in the cruise industry depend on Cargill for their provisions — and for a level of service they can’t get elsewhere.

 

It’s no coincidence that Cargill supplies 80 percent of the beef and 60 percent of the pork to the top three cruise lines in the world. The Cargill Food Distribution team prides itself on customer service, including regular visits to ships to talk in person with chefs and culinary managers.

Food, of course, is a crucial part of the cruise experience. The fare covers food, and the 18 million people who go on cruises every year expect memorable meals. “Eating is the one activity everybody does on a cruise ship,” says David Mizer, vice president of strategic sourcing for Carnival, the biggest cruise company in the world. “Food is very, very critical to our business — and it’s three times a day, seven days a week.

Connections Carnival story David Mizer VP strategic sourcing
David Mizer, vice president of strategic sourcing for Carnival.

“Our food stores have 27,000 line items. As a purchaser, we can’t be expert on 27,000 different items. I put a very high value on a supplier who provides service and solves problems. Cargill provides that comfort zone.”

The cruise industry is always looking for new ideas to keep customers happy. Any industry that comes up with ideas like shipboard ice-skating rinks is open to innovation. Cargill has been behind some of the industry’s major food-related innovations.

Breakthrough ideas

Cargill has served the cruise industry since the early 1990s and played a vital role in one of the industry’s biggest changes: the switch from frozen meat to fresh. As recently as 1995, frozen meat was the standard on cruise ships. Carnival decided that going to a fresh-meat program offered a dramatic way to improve its customers’ experience. It asked for bids on a fresh meat program, but only one supplier responded — Cargill.

“That, really, was the start of our reputation as a supplier that can make things happen and doesn’t say no,” says Kevin Waters, assistant vice president of Cargill Food Distribution. Cruise customers tasted the difference, and Carnival’s food quality ratings went up substantially. By 1997, every major cruise line had a fresh meat program.

Connections Carnival story warehouse
Cargill’s refrigerated warehouse in Florida stocks approximately 400 items, including almost any meat product imaginable.

“Other suppliers looked at it and rejected it as too complicated,” says Mizer. Cargill put the organization and infrastructure in place to do it — all the way down to color-codes for which week to use the meat.”

Cargill also had a role in creating alternative restaurants for cruise customers who were willing to pay for a special culinary experience. In an industry first, Princess Cruises created Sterling Steak Houses featuring Cargill’s Sterling Silver® beef. Today, most cruise lines have alternative restaurants.

Carnival’s growth

In the future, Mizer expects that Carnival will expand as an even more global company. “That is where Cargill has an edge over other suppliers,” he says. Logistics can get complicated. “If we’re boarding Americans in Europe, we know that we will need to export U.S. beef to satisfy their taste expectations,” Mizer says. “This is why we need a relationship with a company that has expertise in logistics and distribution.”

Personal service is another strong suit of Cargill, Mizer believes. To Waters, that only makes sense. “Customers appreciate it if you take the time to understand their business,” Waters says. “A lot of the suppliers just deliver boxes. We draw on all the Cargill areas of expertise — meat handling, butchering procedures, food safety, logistics — and try to deliver all the services our customers need to be successful.”

Mizer keeps a framed cartoon in his office. It shows a ship pulling out to sea with crates of toilet paper still sitting dockside. “That’s my nightmare,” Mizer laughs. “You need a supplier you can trust because, once the ship leaves the port, everything has to be right. If we close a deal with Cargill, we know that the contract is sound and the deal will be honored.”

Fact

Carnival Corp. started in 1974 with a few old ships. Today, its ships number 85, including ones operating as Princess Cruises® and Holland America.

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Insight

“You need a supplier you can trust because, once the ship leaves the port, everything has to be right. If we close a deal with Cargill, we know that the contract is sound and the deal will be honored.”

  David Mize
  Vice President of Strategic Sourcing
  Carnival, Corp.  

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