Company's executive director Paul Camilleri looks back at his 55 years with the business and its ambitious plans for future growth.

It was July 1966 when Paul Camilleri, barely out of school, was thrust headlong into the family business, then known as Micallef & Zammit Limited.

“I had just finished secondary school and my father wasn’t well, so the decision was taken that I had to start working. In those days, the Trade Fair, which happened every July, was a huge event and that was basically my introduction to the business. At the time, we didn’t just import foodstuffs but also wood working machinery, so there was a lot to take in.”

The one advantage Camilleri had during this baptism of fire was the fact that Micallef & Zammit was already a well-established and respected name.

“My grandfather, Saviour Zammit, was one of the founders of the company back in 1922. He was a real workaholic with a huge passion for the business, who achieved significant success. As a result, Micallef & Zammit had a great reputation, something which I have cherished and built on ever since.”

Throughout the rest of the 1960s, 1970s and into the 1980s, the challenges continued to come thick and fast.

“Looking back, it’s incredible how many difficulties we have overcome. Starting with the 1967 Arab-Israeli War which created a fear of hoarding, to the oil crisis in the early 1970s, which resulted in significant price volatility, through to the decision the Maltese government took in the late 1970s to introduce bulk buying, it’s certainly been a roller coaster.” 

Recent events around Brexit and the COVID-19 pandemic have brought back some of those memories. 

“Supply shocks and the resulting inflationary pressures are threats that we need to be aware of and plan for,” Camilleri cautions.

The brand I Can’t Believe It’s Not Butter was launched in Malta before it was launched in the UK, showing the level of trust international suppliers had in M&Z Limited.

Despite the challenges, Camilleri’s journey has been a successful one. Today, M&Z Limited employs some 150 people and, as one of Malta’s leading importers and distributors of food, personal care, home care and baby care products, it delivers to some 2,000 shops and supermarkets every week. 

This is a far cry from the dozen or so employees Camilleri found when he joined the business.“Although it was a small team, they were fantastic people and incredibly loyal. In those days our business was, in a way, much simpler because importers only passed on products to wholesalers, who then handled distribution. So for us, it was a matter of managing relationships with a relatively small number of clients. This simpler business model, in fact, turned out to be a weakness when bulk buying was introduced in 1978. But in any crisis, you can always find an opportunity,” he points out.

“During that time, until the mid-1980s, we retained a foothold in the food business by turning our attention to distribution, particularly for edible oil which began producing products such as Flora in Malta. This also enabled us to stay in touch with Unilever, the owner of the Flora brand and one of the world’s biggest and most renowned food producers. 

“Over the years, going back to my grandfather’s time, we had been one of the main importers of Unilever products to Malta, so retaining this foothold was incredibly important. 

Although there were times when I felt like giving up, I knew that the day would come when the market would be liberalised and retaining a connection with Unilever would give us the edge we needed when that change came.” 

At the same time, M&Z also focused on diversifying its import business, this time into industrial machinery, ensuring it remained sustainable.

The long-anticipated change came in the mid- to late 1980s as bulk buying gradually came to an end and the market was liberalised. 

“Once the starting gun was fired, it was a real race between all the importers to secure as many brands as possible. It was here that our relationship with Unilever really helped, fully justifying my determination to stick with it. At the time, we were part of a consortium of four companies handling most of the Unilever business, but over the years we were able to consolidate everything within M&Z (Marketing) Limited.” 

This resulted in a period of rapid growth which continued into the 2000s and which saw the launch of many new brands in Malta. Among these was I Can’t Believe it’s Not Butter, which as Camilleri remembers, “was launched in Malta first to see what reaction it would get before launching in the UK, a decision which highlighted the levels of trust our international suppliers have in us”.

The rebirth of the food importation business coupled with strengthened distribution networks developed since the late 1970s brought significant change to the entire industry. 

“You’ve got to think ahead, to understand not only what is happening today but what is likely to happen tomorrow”

“There was a fairly rapid decline in the wholesale business once import companies like M&Z also took over the distribution aspect of the business. The growth in the business meant that by 2007 we were able to further consolidate by bringing the Unilever food brands imported by Alf Mizzi & Sons (Marketing) Limited and Vadala Company Limited into M&Z.

“Of course, new opportunities also bring some challenges. And the challenge of liberalisation was that foreign retailers started to enter the market and challenge established Maltese retailers.

“Initially, we saw a number of Italian supermarket chains establish a presence in Malta. That did not work out, but I could see that Maltese retailers needed to up their game because eventually a foreign supermarket chain would succeed here. The revolution which Lidl has brought to Malta shows how right I was. They run their business incredibly well and with their pan-European purchasing and distribution power, they have created significant challenges for local retailers.”

Understanding the changes that are coming and being flexible enough to adapt to them have been key to M&Z’s success over the years. 

“You’ve got to think ahead, to understand not only what is happening today but what is likely to happen tomorrow. And you need to take the decisions not only to be prepared for these changes but to grow in these new circumstances. I understood that in a liberalised market, our business was too reliant on importing foodstuffs, particularly Unilever brands, so we focused on diversification. That resulted in the acquisition of V&F Portelli in 2016, a business which imported several small brands with good potential for growth,” Camilleri notes.

“More recently, we have also focused on the meat-free sector, which is experiencing rapid growth. By building strong brands and keeping an eye out for emerging trends, you can always find opportunities to drive demand from consumers for your products. And that ensures the retailers, even the foreign ones, keep coming to your door.”

Looking to the future, Camilleri still sees plenty of opportunities.

“If there’s one area where we still need to further establish ourselves, it’s the food services business. Some two million tourists visit Malta each year and the truth is that we don’t really reach them. Growing our business in this sector will, apart from making us even more diversified, also give us greater leeway for future expansion. We’re also always looking at how we can become more efficient. Controlling costs is always vital to a successful business as is investing at the right time and in the right technologies and infrastructure.”

Another area of interest is the opportunity to grow the business internationally. 

“M&Z is a trusted partner of a long list of world leading food manufacturers. Most of these brands don’t have the resources to distribute their products all over the world. This gives us an opportunity to roll out our business model in other small, and not-so-small markets, where we can represent these brands and create win-wins for all sides. I think there is great potential for M&Z in this area and it’s something I’m excited to see the business pursue in the coming years,” Camilleri says.

“Looking back, I’ve been around for 55 of our 100 years in business. Today, the world is completely unrecognisable from the one that I knew back in 1966. But with resilience, adaptability, and discipline, particularly when it comes to financing, as well as foresight and courage, M&Z has continued to evolve and to succeed. There are always difficulties, many of which you have no control over, but the business today is well diversified, debt-free and with clear plans for growth. 

“Throughout the years, I have also been grateful to be surrounded by some excellent people who have supported me and been the backbone of our business. With all these elements still firmly in place, M&Z Limited’s future is looking very bright.”

A young Paul Camilleri