Submitted by Amanda Connelly, St. Croix EDC Administrative Assistant
HUDSON, WI – The food industry is in Doug Audette’s blood. A year and half ago, Audette signed on as CEO assuming the helm at Ciranda, a leading North American provider of certified organic, non-GMO and fair-trade ingredients based in Hudson, Wisconsin.
His resume includes more than 30 years of general management, sales, marketing and operational experience primarily in the food industry sector. Audette joined a company that has experienced consistent growth commensurate with its role as a leader in the organic food industry.
Ciranda won the St. Croix Economic Development Corporation’s 2023 Business of the Year award in February of 2024. The company specializes in gluten-free flours and starches; syrups and sweeteners; cocoas and chocolates; coconut products; liquid and powdered lecithin; and vegetable oils.
Ciranda was formed in 1994 by Brazilian-born entrepreneur Hans Friese and his wife Joan dedicated to the premise that organic food and farming was better for the planet and for the people inhabiting the planet.
Risk – Balancing pragmatic considerations with human relationships.
On the other side of the equation Ciranda’s success depends on a single fundamental challenge, its ability to fill an order by securely moving a physical commodity from one part of the world to another. In today’s climate of global unrest that challenge is fraught with risk.
“It’s a challenge. From a very pragmatic business standpoint, it’s about having contingency plans. So, with any given ingredient, we try to have more than one supplier and usually located in more than one geography,” Audette explained, “For example, if something happened in Pakistan, can we get the rice syrup from Vietnam?”
Once the ingredient is secured, transporting it to the U.S. can still be very challenging.
Audette cites several current challenges on the horizon: water levels in the Suez and Panama canals becoming too low to navigate; and the potential for labor strikers at east coast ports.
“There’s a lot of risk in logistics, just plain old getting stuff from here to there around the world,” he said. “We start by forecasting what our customers are going to need. Then we look at the risk and assess ‘do we need to get ahead of that? Do we need to carry a little bit more of that inventory so that if the port strikes happen on the East Coast later this year we aren’t left saying ‘Oh we can’t service our customers.’”
Beyond the logistical challenges of shipping and inventory the perception is that the world is in turmoil and it’s a dangerous place to do business. Unpredictable events beyond your control from climate change to political upheaval to military incursions can stress relationships with processors and farmers.
Caring for those communities, keeping those relationships safe and productive while dealing with circumstances beyond your control requires a combination of faith and mitigation.
“Those situations are out of our control. There are a lot of human relationships at play requiring timely compassionate judgment. We need to determine how we can leverage our long-standing relationships to mitigate the risks around some of these situations,” Audette said.
He believes that under stress, the mettle of those relationships comes to the fore with transparent communication and collaboration.
“I think it matters when there are businesses like ours working with businesses like the ones we have on both sides and we’re having really productive conversations, establishing that we care about each other. I think that matters and that those relationships ripple out in all directions,” he said.
Ciranda’s long-term investment in these communities can have a stabilizing effect. The financial advantages of organic farming and fair-trade practices lead to the building of schools, water and sanitation infrastructure, access to medical services and better nutrition to strengthen the community ahead of the storm.
A culture of sharing – Ciranda also makes direct investment in projects locally and globally.
The company became 100 percent employee owned in 2017. At the time Founder Hans Friese said, “Our employees inspire us every day with their passion and creativity. The ESOP (Employee Stock Ownership Plan) allows us to transition the company into the hands of those who have helped build it, and those who will join us in the future.”
An enduring commitment to the philosophy of “We do well when they do well,” is reflected in the company’s commitment to donate 2.5 percent of its profits annually to projects like a new school in Pakistan.
In 2022 Ciranda teamed up with TCF-USA to build and operate a much-needed school in Karachi, Sindh Province, Pakistan. The $20,000 contribution toward construction and operation of the school for the first two years was made possible by the owner employees of Ciranda who donate 2.5 percent of their company’s profits each year to projects locally and globally.
Ciranda’s sales have increased by 34 percent from 2019 -2024, Organic still makes up 80 percent and fair trade certified is up to around 50 percent.
“We had record years through the COVID-19 spike when everybody was loading in ingredients. 2024 will be our second-best year behind those years. We’re on a good track,” Audette said.
Looking ahead he wants to strengthen the customer side of the equation.
“Strategically we’re starting to evolve and mature the organization working to build that same kind of depth on the customer side of the equation. Operationally, doing more things with technology and business processes. We’re getting the right team in place to do an even better job of connecting customers with suppliers.”
Biggest challenge – The global state of unrest poses an outsized risk to the future security and feasibility of Ciranda’s 100 percent import-based business. Audette recognizes that it is prudent to consider other options.
“One of the things that we are looking at, is are there some domestic ingredients that we could get into to diversify a little bit. We have a lot to offer to other companies to help them become successful in terms of our connections, sales and marketing and customer service resources,” he said.
For Audette, determining the path forward always comes back to people, the farmers, manufacturers and customers but more importantly, the team he works with every day. Their character, curiosity and courage inspire his optimism.
“We’re always going to have situations that are challenging. The best we can do is work to mitigate it, collaborate and communicate and there’s nobody I’d rather be going through those challenges with than this team. We have great people who care about each other. Maybe we need to change how we look at these situations and recognize how blessed we are to be working together. What happens next is totally up to us.”
Just the Facts: Ciranda, Inc., Doug Audette – CEO. Formed: 1994. Address. 708 2nd Street, Hudson, WI 54016, phone – 715-386-1737, Website: https://ciranda.com. Employees: 60.
