INTERVIEW | Maria Micallef: ‘I believe in putting passion into anything I do’

You occupy the role of CEO for a number of companies which operate in diverse sectors – The General Soft Drinks, The Waterfront Hotel, IELS, Arkadia and Is-Suq tal-Belt. How did you start out, and how did you eventually get involved in this broad sphere of business?

By profession and training, I am a chemist. Back in 1992, I accidentally landed myself a job at The General Soft Drinks Co. Ltd (GSD). At that point in time Malta was facing an issue related to nitrates in the water table. GSD had contacted the university asking for a chemist who could help with the analysis of the water. My tutor recommended that I join GSD for the summer months, and when I completed my university studies, obtaining  a BSc. degree, I remained with the company. In the following year I was promoted to Quality Assurance Manager and I held that role for three years, before taking on the role of production manager.

After two years I was appointed General Manager and quickly started introducing new measures to improve our business. One of the first major challenges I faced as general manager was related to Malta’s accession into the European Union.

One of the important issues during the negotiations period before membership had to do with the fact that, locally, soft drinks were bottled in returnable glass bottles whilst other products, such as water, were bottled in plastic bottles. This was due to an anomaly in our legislation. At the time, I formed part of a lobby group, which also involved Farsons, that had worked very hard to try and convince the EU that Malta should keep its returnable glass bottles. This  is ironic considering the current shift in trend against plastic containers.

The EU, however, felt that allowing Malta to retain its returnable glass bottles would amount to a barrier to the free movement of goods, as it would be considered protectionism of the local manufacturing industry. Therefore, the economic principle won over the environmental one at the time and we were forced to shift to plastic packaging, subject to a four-year derogation period.

At that junction, the Mizzi Organisation had to decide between building a new factory to cater for the new requirements, or to be limited to only importing Coca-Cola products. Following discussions with Coca-Cola, the family was convinced to invest €28 million in a new soft drink production factory. I was given the task of overseeing the construction of the factory, and, against all odds, we managed to build it in 18 months. Coca-Cola themselves were a bit sceptical that we would manage to accomplish the task within the required timeframe, but thanks to the team I had, we completed the building on time.

The fact that I successfully saw the new factory finished on time and within budget, boosted my career, and subsequently, in 2008, my managing director asked me to assume responsibility for the whole portfolio of companies that fell under this remit. This is how Arkadia and The Waterfront Hotel fell under my responsibility. I was also appointed executive director of the IELS English language school, in which the Mizzi Organisation has a shareholding interest.

When 2018 came around, I was made CEO of the entire operation. Moreover, I currently also sit on the board of First United Insurance Brokers.

Which of these areas presents the most challenges?

I feel that all businesses have the same knobs , so to speak. With all businesses, the starting point has to be gaining a close familiarity with their respective numbers – the operational figures. Whether its Coca-Cola, Arkadia or The Waterfront Hotel, you need to know your numbers and your customers. After that, you need to build a team of people who can run the business and manage those numbers.

All the businesses under my remit are exciting to me. I love dynamic business models and having contact with people. Funnily enough, although chemistry brought me where I am, today I would not wish to be based in a laboratory  without having contact with people.
Work for me is a passion and I spend a lot of my time at work. I believe in putting passion into anything I do and I wouldn’t do it if I didn’t have the passion for it.

Regarding which area is the most challenging, I would say that every business model has its own particular challenges. Take Arkadia’s business model – here we are managing a combination of food and fashion. Fashion has its cycles, and, over the years, internet shopping has also presented a challenge. The food store market is growing, but the number of players has also increased, making it very competitive. In connection with running Arkadia’s commercial centre in Gozo, a challenge here is that, while we operate all year round, the summer months and the December period represent the peaks in terms of sales and getting the business model to continuously maximise its returns is challenging. Furthermore, the labour market in Gozo faces its own share of challenges.

In terms of Is-Suq tal-Belt – which is our latest major project – the first year was very exciting because its business model was a first on the Maltese market. We got some things right, and others wrong, as often happens in life. What’s important is to learn from the wrong decisions and to go on and improve.

In the case of GSD, we  constantly monitor every little number - it’s a volumes business with extremely low margins, making it necessary to be very careful about the cost of goods, production, energy usage and labour costs, and to deliver the product on time. At the moment, my biggest headache is our capability to serve all our customers in the face of the traffic issues our truck drivers face on the roads. We’ve tried to improve the situation by setting up a logistics hub in the north of Malta, but this isn’t enough. Malta’s rising population, tourism and traffic bring with it these types of challenges.

But, at the end of the day, when the financials are in the positive, they are good challenges to have.

Turning to The Waterfront Hotel, we last year expanded the establishment from a 116-bedroom estate to one with 164 bedrooms, which was a challenge to get done on time. We had a record first year and such good results can sometimes be difficult to maintain.
Regarding the English language school, the number of students coming from Germany are down throughout the whole market. However, we are successfully attracting students from other markets, such as South America.

One common challenge across all business models  is the availability of human resources. The issue is not limited only to finding people with the right skills , but also to engage people with the passion and self-discipline to really be the best in their respective positions.
In relation to this, I feel that although the economy is doing so well, employees have become somewhat spoilt for choice. I have worked hard throughout my life, and I find that trying to instil the passion I have into people is one of the biggest challenges across the board.

How are you able to juggle the various duties which come with the role of being CEO for several large ventures?

I consider myself to be very disciplined. I normally arrive at the office by  9am and go back home at around 10pm. But between 7am and 8.30am, I’d have already gone through my emails and the businesses’ figures for that particular day, which are sent to me by an assistant.
I make sure to reply to all my emails daily, although I receive around 300 of them each day. I have the luxury of having a driver, and this is allows me to utilise the time I spend travelling to answer my emails and make my phone calls. My driver is worth his weight in gold, because through him I can utilise my time in the best way possible when I’m at work.

Having a very supportive partner and good staff around me in my office also goes a long way towards helping me perform my duties.  
As an aside, I should remark that the reality in Malta is that if you want to grow professionally, at my level, you have to go sideways not upwards. Getting involved in other businesses has kept me remain motivated.

The elimination of plastic waste is one of the most topical subjects when it comes to safeguarding the environment. What is GSD doing to help address the problem of the waste created by the disposal of single use plastics, such as of the type used to bottle soft drinks and mineral water?

This is a topic which is very close to my heart. And single-use plastic isn’t the only issue here – waste needs to be tackled holistically.
In 2016, Prime Minister Joseph Muscat announced during the United Nations’ Ocean Conference that he wanted to tackle the issue of plastic waste in Malta. From this, I took the cue and set out to discuss with The Coca-Cola Company about the possibility of having a bottle deposit system. While The Coca-Cola Company (TCCC) initially had their reservations about a deposit system in Malta, my team successfully presented a case and obtained TCCC’s support. Subsequently, I drew up a deposit system for returning containers and we started discussion with the government and stakeholders on the prospect of implementing it.

During the initial stages, the government was considering issuing a tender and selecting a private operator to run the scheme. However, I worked hard to bring together practically all major stakeholders with the aim to drive the message that the scheme should be the beverage producers’ responsibility. Furthermore, I also highlighted that it was in the producers’ interest to operate this system on a non-profit basis, to minimise the impact on consumers

Discussions among stakeholders also included the major beverage producers and importers as well large retailers to ensure that any system put in place would not create a barrier to free movement of goods, having learnt my lessons from the events surrounding glass bottles and Malta’s path to EU membership. We also brought in the GRTU, because it is also essential to work  hand in hand with smaller retailers.  To this extent, the various stakeholders proceeded to establish three associations, namely  a beverage producers’ association, a beverage importers’ association and a beverage retailers’ association.

These three associations will be the equal shareholders of the Beverage Container Refund System (BCRS) company, with the aim to be responsible for handling the deposits once the scheme comes into effect. The company will be installing reverse vending machines, will be responsible for registering all bottles placed on the market and will ensure that any retailers selling the products are registered with the company. It will then be up to the consumer to return the beverage containers  – be they glass, cans or PET – by depositing them in one of the many  reverse vending machines which will be located around the island to get ones’ deposit back.

We have provided substantial feedback to Government during the Consultation period in respect to the relevant legislation, which should soon be published. Last December we’ve signed a memorandum of understanding which will soon be turned into an agreement. Once the agreement comes to be, the scheme will start operating within 14 months.

There are currently around a dozen countries in the EU which operate such a scheme, but Malta will be the first country in which The Coca-Cola Company gave its full support. In fact, I am particularly proud that TCCC will likely apply Malta’s approach as a best practice in other markets.

In 2018 The Coca-Cola Company announced a bold, ambitious goal: to help collect and recycle a bottle or can for every one we sell by 2030. This will be done within its framework of the World Without Waste. Another initiative within this framework is to have primary packaging that contains at least 50% recycled material by 2030. We’re also upgrading our machines to incorporate a certain element of recycled PET within our bottles We will soon be launching a Zero Waste Initiative through funds acquired from The Coca-Cola Foundation where we will work to create the first zero waste campus and also a zero-waste city.

There are several eateries at is-Suq tal-Belt, but these all face competition from the hundreds of other restaurants operating in Valletta. What does the Suq offer which the other restaurants don’t?

Different cuisines under one roof – that’s what makes us unique. The market is indeed crowded, but we offer a unique venue  where we give our clients the option of enjoying different types of food in a single venue. Is-Suq tal-Belt required a €16 million investment, and through it we’ve restored a bustling market in Merchants Street.

We’ve brought life into Valletta, but I believe we must also be very considerate to the community within which we’re operating, and we’ve organised various initiatives with a view towards integrating Valletta’s community with our Suq establishment, while also striving to cater for the local community’s needs.

There were reports last year that inspections by Jobsplus carried out at is-Suq tal-Belt found a number of workers at the food court’s various outlets working who didn’t have a valid work permit. Have better measures been put in place since then to ensure the outlets abide by the relevant employment rules?

When the Suq was newly opened, we encountered some elements of negative publicity, such as when it came to the placing of tables and chairs outside. Regarding the Jobsplus matter, in reality the numbers of workers without permits which were cited related not only to the Suq, but to the whole of Merchants Street. And while we did have some people working at the Suq who weren’t regularised, these were actually ITS students who were receiving training, and their paperwork wasn’t 100% in place.

Following the media reports, the Suq was not found to be in breach of the rules and no action was taken. We’ve moved on from there, and we’re now more sensitive to the issue.

Are there challenges when it comes to employing foreign workers?

GSD employs around 14 nationalities, including South Africans, Venezuelans, Mexicans, Filipinos, Eritreans and various Europeans. In the catering industry, we have several Nepalese and Indian staff, amongst other nationalities. These all represent different cultures, and it’s important to adapt to this variety through understanding the respective cultures and being inclusive. At the same time, we have to strive to retain the local touch in everything we do. Tourists who come to Malta still want to understand what Maltese culture is all about. I believe that this is the challenge of the moment.

There has been significant discussion on a local level recently about the gender pay gap, and the relative lack of women in Malta who occupy decision-making positions. Do you feel there are obstacles in Malta for women who want to advance to senior positions in their professions?

My opinion here might not be the typical one. I have been heading GSD’s operation for 21 years, and I started out at a time when it was very difficult for women to occupy such roles. The issue of gender equality is one which exists worldwide. Multinationals have been very conscious of this. At 28, I was Coca-Cola’s only female general manager. Today, however, the situation is different. The president of Coca-Cola’s central and south east Europe arm is a woman, for instance, and the person driving Turkey’s Coca-Cola business is female, as is the person managing the German sector. So, even in a company like Coca-Cola, when two decades ago I was the only woman, I would say that now, in Europe, there are more females occupying senior positions than male.

On a more local level I tend to be against gender quotas. I believe that if a woman wants to make it, she has to prove herself, just as any man has to prove himself. No position should be given to someone based solely on whether they are male or female.

At the same time, a woman cannot expect to argue that she will be as good at the job as a male counterpart but then go on to say she has problems with her hours of work. I think one needs to establish certain priorities. In Malta, we now have easily accessible support for working women, such as child care facilities. This said, I feel that, when it comes to my own office for instance, I am flexible in adapting to the family life of the women working around me. A woman might for instance need to leave work to pick her children up from school, but she could then tackle something in the evening, when her children go to bed.

I do acknowledge, however, that it is still more difficult for women, as societal expectations still revolve somewhat around females carrying out certain roles, such as caring for children or elderly parents. This is where men need to pull their socks up. A lot of this, however, depends on the relationship a couple has, and no legislation will sort this out. There still needs to be a change in mindset in this respect.

Regarding gender pay gap, I’ve personally never been distinguished against when it comes to the salary offered to me, nor have I ever distinguished by gender in the pay I offer to employees.

What advice would you offer to young women who have aspirations of being successful and advancing in their careers?

If you want to achieve something, do all you can to overcome all obstacles. Many times, obstacles are created in the mind. Try to not create excuses, and, if there is a genuine obstacle, be passionate enough to work through it.

Be true to yourself and don’t be someone different from who  you really are. Be proud of who you are and believe in yourself. If you do this, and add in an element of the right ambition, you will make it.

Also keep in mind that being emotional isn’t a bad thing. Women’s emotions are sometimes used against them and being emotional in a woman isn’t seen the same as in a man. But, with me, my employees know exactly where they stand and this is a good thing. When my staff come to me with a problem, I also expect that they suggest a possible solution. We can debate whether it’s good or not and ultimately the buck stops with me, but I will let them make their own decisions as that is how one learns.