As one of Malta’s oldest, family-run businesses, Salvo Grima Group is now run by the sixth generation of the same family, with CEO Karl Aquilina leading the charge. Originally set up as a firm of ship chandlers, the Group has evolved a diversified, professional and sustainable portfolio of businesses that has stood the test of time.
“Being part of such a unique family business is fantastic, especially since, this year, we are celebrating the huge milestone of our 160th anniversary,” Karl explains. “Not many businesses survive for that long, so this is a real achievement for our family and everyone who has been part of the Salvo Grima team over the years.
"The secret of our success has been that we have planned and grown the business steadily, establishing strong relationships with our staff, clients and suppliers. We have also taken advantage of every opportunity to expand and diversify the Group, and have looked to the future with each new generation.”
Salvo Grima Group combines the values and long- term approach of a family-run firm with world-class operating standards and a global outlook. “It is very positive for our people to know that the Group is backed by a family long-term,” Karl elaborates. “We have also developed a clear and professional governance structure to attract leading talent and ensure a smooth transition from one generation to the next. As a family, we have great chemistry, with a solid work ethic and an ambitious, clear-cut vision, so everyone – both internally and externally – knows that we strive for excellence.”
Managing these high expectations was one of many key responsibilities that Karl knew he must take on when he was appointed Group CEO in 2016. “I had a long transitional period of 13 years, from being a sales executive with the Group in 2003 to becoming CEO,” he explains. “I started out in the field and worked through many of the roles in the Group to develop a good understanding of how the business works on every level, witnessing the internal workings of the company and gaining a rounded knowledge of the industry.”
As well as working extensively within the Group itself, Karl’s preparation for following his predecessor, Robert C. Aquilina, as CEO, also included training and work abroad. He holds a Bachelor of Science degree from the University of Cardiff, and was instrumental, in his previous role as Chief Commercial Officer, in expanding the Group into the Netherlands and Palma de Mallorca.
Now Karl’s approach continues to put people at the heart of his decision-making. “My role is to drive the growth of our Group of companies, and, thus, it is critical to have the right talent to deliver on that strategy,” he asserts. “We are a people-centric business, and our success is purely down to the skill of our people to be able to deliver services that are competitive and desirable.”
To ensure that this talent is retained and engaged long-term, Karl notes that every part of the company has a succession policy and the Group is prioritising staff well-being, career development and training. “We invest a lot of time into making sure everything is in place for the Group to continue operating for the next 160 years, and beyond.”
Salvo Grima Group has, over its many years of operation, repeatedly proven that its people-centric approach is highly effective. Initially operating as a ship supply company in 1860, the company assisted with procuring consumables, medicines and a variety of other supplies for use on ships. The Group remains Malta’s largest ship supplier, competing against chandlers across the Mediterranean.
The Group began to expand its outlook beyond this original objective from the 1980s, when the fifth generation increased its business with Libya and also entered the duty-free and travel retail sector in collaboration with global travel retailer Gebr. Heinemann. Salvo Grima Group also built a strong relationship with British American Tobacco.
The Group’s knowledge of international relations and its focus on building reliable distribution networks in difficult and unstable markets has led it to become the official distributor for British American Tobacco in Libya. The company also distributes complementary products within this region, representing Swedish Match and Mazaya Shisha tobacco.
Karl’s role as CEO has supplied some landmark career moments for both himself and the Group, including the acquisition of Dutch international wholesale firm Vladex BV. “As well as setting up travel retail outlets at the cruise port of Palma de Mallorca and expanding our tobacco market further into Libya, I pursued the purchase of Vladex BV, a wholesale food distribution company based in the Netherlands. This brought us access to the ports of Rotterdam and Antwerp, and also widened our scope.”
Through this notable acquisition, Salvo Grima has been able to offer mixed goods containers to international ship suppliers as well as catering products for global humanitarian and military missions.
“Our goal is to continue improving and growing, and I find the journey of doing that very rewarding. I believe that the minute you stop changing is the minute you start declining,” Karl says. “Naturally, such a focus on internationalisation and expansion will always present challenges, such as having to find the right partner when setting up operations in foreign countries or finding the right talent to join the Group.”
The civil war in Libya had affected the company 10 years ago, leading to the Group’s closure of its travel retail outlets at Tripoli International Airport. However, Salvo Grima used this as a catalyst to diversify, while using its knowledge of the Libyan market to invest in new business opportunities. Today, they continue to operate successfully in Libya through a strong distribution network on the ground.
Salvo Grima has undergone a period of modernisation and innovation under Karl’s direction over the past few years, moving to new headquarters and upgrading its IT systems and procedures, allowing staff to work more efficiently.
“We have recently become more active and visible online, while focusing on setting up businesses in Tunisia. Cyprus and Djibouti, and taking on the distribution for large brands,” he explains. “Last year, we also relaunched our yacht provisioning service in Malta, complementing our boutique fine wines and provisions services to superyachts in both Malta and Spain through our associate company No. Twelve.”
Karl’s outlook for 2020 is positive and ambitious. “We are identifying new travel retail opportunities in new cruise port locations, while implementing as many changes as possible to become more environmentally-friendly as we broaden our international horizons, in keeping with our ethical commitment,” he maintains.
“We will be marking our 160th year with a number of new business lines, as well as consolidating the new ventures we have taken on recently. And, of course, we are celebrating the remarkable milestone of our 160th anniversary!”
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