The Sustainable Table - Business Leaders Talk Welfare
Leading the Way: Marriott International's Cage-Free Commitment in Asia with Richard Tan
Mar 04, 2024
Elissa Lane, Global Food Partners
In this episode, we sit down with Richard Tan, the Vice President of Procurement for the Asia-Pacific region (excluding Greater China) at Marriott International. With over 25 years of experience in the hospitality industry, Richard shares his journey, successes, and valuable advice on transitioning to cage free eggs as a hospitality leader in Asia. He recounts eye-opening visits to conventional caged farms, and how seeing the condition of the animals in cages instilled in him a personal conviction to create change and do the right thing.
Richard talks about Marriott's cage-free progress in Asia, and outlines three pivotal actions that have helped him instil supplier confidence. He shares Marriott's goal of achieving 50% cage-free implementation within the next 12 months, and imparts strategic advice for those implementing similar commitments in the hospitality sector.
As the episode concludes, Richard leaves us with a piece of advice that helps keep him grounded: "how you do business is as important as the business that you do," advocating for introspection and purposeful change in the pursuit of a sustainable and humane future.
In this episode, we sit down with Richard Tan, the Vice President of Procurement for the Asia-Pacific region (excluding Greater China) at Marriott International. With over 25 years of experience in the hospitality industry, Richard shares his journey, successes, and valuable advice on transitioning to cage free eggs as a hospitality leader in Asia. He recounts eye-opening visits to conventional caged farms, and how seeing the condition of the animals in cages instilled in him a personal conviction to create change and do the right thing.
Richard talks about Marriott's cage-free progress in Asia, and outlines three pivotal actions that have helped him instil supplier confidence. He shares Marriott's goal of achieving 50% cage-free implementation within the next 12 months, and imparts strategic advice for those implementing similar commitments in the hospitality sector.
As the episode concludes, Richard leaves us with a piece of advice that helps keep him grounded: "how you do business is as important as the business that you do," advocating for introspection and purposeful change in the pursuit of a sustainable and humane future.
Speaker 1:
Hello everyone. Welcome to our podcast, the Sustainable Table Business Leaders Talk Welfare. For those of you joining for the first time today, welcome. My name is Elisa Lane and I'm the CEO and co-founder of Global Food Partners. On this podcast, we interview thought leaders in the fields of cage-free and other sustainability, responsible sourcing and welfare initiatives. I'm honored to have with us today Richard Tan, vice President of Procurement at Marriott International, based here in Singapore. As most of you know, marriott International is a leading hospitality company with approximately 8,700 properties in over 100 countries worldwide, including across Asia. In his leadership role as Vice President of Procurement for Asia Pacific, he oversees all countries in the region, excluding greater China, and oversees the procurement at a global level, including the implementation of Marriott's cage-free commitment in Asia. Welcome to the podcast, richard. It's a pleasure to have you here today, so let's get started.
Speaker 2:
I'm Gail Isla for having me.
Speaker 1:
All right, so I'm interested in hearing more about your story. Can you tell us about your path to getting to this role at Marriott International and overseeing procurement and the cage-free commitment across Asia?
Speaker 2:
Thank, you, Gail Isla. Yeah, it's an exciting time for me in this role, which is almost about four years now, but I've been the longer in the industry close to about 25 years in hospitality. This journey, arriving here in Marriott, is by far the most exciting time for me, you know, not just because of sustainability but because of our growth and our skill. As you know, as one of the largest hospitality companies, having the largest system, I can see the great opportunity in creating a very positive impact to all the right things that we need to do in the areas of sustainability, animal cruelty issues and many more positive changes, that we can play a big role as a change agent. Truly look forward to more collaborations with partners like yourself. We can do this alone and we got to be on a journey together in the entire value change.
Speaker 1:
Couldn't agree more. We're also very excited and happy to be working with you and your teams to implement cage-free across the region. So I've had the pleasure of being in meetings with you recently in our Singapore Roundtable meeting, and you spoke very passionately and you were very genuine about your passion for animal welfare and the importance it has, not just for a Marriott as a company but for you. I think it sounded like it was a very personal issue, something that you really believe in. Can you tell us more about how you started to get interested in animal welfare and to believe so strongly in it, and then how you were able to start incorporating that into Marriott supply chain?
Speaker 2:
Sure, I must admit it all started from a very scripted policy or target at the statutory and even policy-based kind of driver. But within a very short period of time that consciousness, that mindfulness of animal cruelty and many more other good reasons started to kick in and hit us. We got to be a lot more humane the way we go about living our life, conducting our businesses. It's beyond descriptions of this genuine responsibility of us must carry, and me in supply chains in particular, has witnessed going to the farm seeing how the production is being conducted. It is something that is beyond words to describe the cruelty towards a living thing. It's very much emotional and you have to be there to see it. You and I would agree.
Speaker 2:
K38 is sometimes kind of distracted a little bit of our focus on the bird itself. We talk about the egg but we should be focusing on the bird itself, how they're being treated. All this kind of kicks in and hits me. Within a very short period of time I had the opportunity to visit many of the farms, the way, the skills and size of productions, all because of the P&L and the bottom line that is driven. Sometimes that cruelty, part of how we treat a living thing, has been ignored and being taken for granted. So that pretty much my story, how it all began, seeing with my own eyes, not accepted and in the change past.
Speaker 1:
So you were able to visit some conventional cage farms. Was it in Singapore or across Asia or many different markets, pretty much across Asia, wherever we operate.
Speaker 2:
As I mentioned even before this role, I'm already managing many of the supply change in particular, and many other categories as well. It is our duty to visit and inspect some of the factory or farm, so that kind of something that is quite alarming to me personally.
Speaker 1:
Yeah, it's pretty, you know, when you first walk into a battery cage facility and so many birds can't move around for about a year, a year and a half, and then I don't. If you have the same experience and you visit the cage free farm and you can see them flying around and moving around. Such a difference. Cage free needs to be. There needs to be a lot of training and management and welfare, but such a stark difference between welfare of the animals in the two different systems. So you were moved when you went to the farms and, as a company, how is animal welfare important?
Speaker 2:
So, from Maria, as you mentioned, as a leader in hospitality and as a corporation, Well, it is clearly written in many of our companies policy and statement this animal cruelty thing is a no-no to us in all things that we do.
Speaker 2:
And our chairman has this famous saying how we do business is as important as the business that we do.
Speaker 2:
This consciousness is kind of in our DNA. You know, sometimes we'll get carried away with so many priorities that's going on in the day and many other responsibilities, including the financial ones, so this is something that we have to remind ourselves from time to time. Yes, we do get carried away at a time and distracted by many other priorities, but we got to pull ourselves back and we got to ground ourselves with this fundamental and all encompasses within that statement how we do business is as important as a business that we do. In all things K38 is step three, number one, and we got to keep pushing forward. We know change will not happen overnight, but every day we got to move forward with a positive step at all level. And then what you do is great bringing all the partners, all the stakeholders, into a round table, create a consciousness focusing on what is available as a solution today, and that change happening every day is the minimum that we should do, and we'll get there together one day for sure.
Speaker 1:
We will. I'm confident about that. I think it is a challenging topic, right, especially in Asia, but, like you said, we just have to keep taking steps. So it's something I always remind myself of. We have two choices right to do nothing, to say oh, it's too hard, or to just take one step forward and keep taking those steps forward until we see the change that we want, so moving in the right direction. So, agree, we just have to keep stepping forward and taking those steps together. And so, regarding progress and taking those steps, I have heard some of your colleagues speak across Asia and meet with them and share their progress, which is impressive. I think the most recent conference was in China, in Shanghai, china, and heard one of your colleagues speaking about cage-free progress there. So I'm wondering if you can share what have been some of your successes around cage-free in Asia and which countries have made the most progress out of the ones that you oversee? So you mentioned APEC, excluding Greater China.
Speaker 2:
Right Immediately that kind of pop up in my mind is definitely Australia. Australia is leading the pack and we can understand why the regulatory is one driver and also the consciousness and also the majorities of the user consumer is also a big driver to a step. So Australia definitely is number one in our radar, in our map, and Thailand is equally successful, mainly because of a very robust supply change and change is happening fast, married as one, you know, big driver for that, and many other players in the industry as well. So these two definitely pop up as the most successful among the country that I'm currently managing, but many are, you know, right behind, not far. It's always the demand and supply you know at play and also what you do technically, how we convert the farm and the investment required and the green financing that is available is happening every day. Some are faster, some are not.
Speaker 2:
In terms of the more challenging one, I would say you know nations or city, that is more urbanized, it's a bit more challenging. In the end of the day, we still have a financial duty to deliver to our stakeholders. So, more urbanized, where you know the product are coming from far. Distribution costs is on the rise, right, it's not just happening to eggs, but many other products that we buy today have this challenge with rising distribution costs, logistic and many other things. So we have to kind of crack the code to create the right volume of demand to mitigate against the cost factor but also at the same time, you know, to find other revenue in terms of avenue of saving, you know, to help us cross the finishing line for something that is more responsible in terms of business conduct.
Speaker 1:
Can you share more about how you've been able to make such good progress in Thailand, because I know a lot of hospitality companies are kind of in the chicken and egg situation, right, like how to start Supply is not there, but the supply won't be there until the buyers take the necessary steps. But how were you able to just get this going, get it moving and see that progress in Thailand?
Speaker 2:
Yeah, I think you just say the magic word kind of chicken and egg. In every conversation that kind of crops up. Transparency and round table does help bringing the supply and demand into the same table and being very transparent to each other From the buy side. We as a company do stand in front of all these potential supply partners of our commitment and we are serious about it. It's not just a number that we flashed on the screen or in the document, but we truly believe in this journey that we really want to achieve the goal. So that commitment does help.
Speaker 2:
I just want to end it up, you know, with this particular statement is you got to show you are very serious. You mean you know what you claim you wanted to achieve as a target but you got to translate that into a real action. Yes, initially you'll be hit with a higher cost, but the cost will kind of plateau and come down once the demand pick up. You know we visualize a day. You know you'll be at least 90% case free. Maybe we'll remain with 5, 10%, the normal egg that we buy today. But how do we get to that state? We got to take the first step and that commitment, that seriousness, is super important.
Speaker 1:
So you mentioned it's one thing to have something on paper or to say you're committed. It's another thing for to put that into action. So can you say, like, what are three things? Three actions like very, very tangible actions that have allowed suppliers in Thailand or in other markets to really know you're serious and for them to have the confidence to expand cage free or to build cage free for the first time and to take this journey with you? Are there a couple actions like very concrete things you could share for others that are trying to start this?
Speaker 2:
Yeah, I love to take on the three points that you suggest just now, you know. Number one is show them. We have done it. Australia is a good example, right, so that is a fact and that is a number. Number and data don't lie, showing to them what has happened in Australia and what our hotels are buying. That is a fact, right, so that is helpful. Let the numbers speak for yourself, right. And the second is also demonstrate to them.
Speaker 2:
We track and measure of our business conduct, right, so we report on the monthly basis. You know the two number and how the number has been incrementally changed. That is also transparently shared, you know, with many of our supply partner. So, again, allow the number and data to speak for itself. Not just words and statements, but actual numbers itself. We track and measure. We track and measure every individual's performance and the decision that they make.
Speaker 2:
And, last but not least, we are not the final end consumer. It's our guess. So our guess being educated and our guess consciously being told the change that we have made. And we publish, we share, we show the kind of responsible actions that we have taken. So this third one kind of send a message across we are helping the farmer to create demand as well. We are educating the public, the guests, our customers, the importance of this change, and they will, in turn, ask for more in the history going forward. It's the right thing to do so. That will help create the demand as well, and the guests go back to their home with their consciousness when they go retail in a supermarket. They will know the difference between the two different types of it, and that will help them in return as well.
Speaker 1:
Definitely so. Are you noticing from guests that they're having positive feedback about the cage free eggs?
Speaker 2:
Yeah, I love to jump into this. I'm a long stay in the hotels. You know, I talk to guests who are sitting in the lounge in the restaurant together having a morning breakfast to chat, and the next round, when I meet them again, we are back in the same hotel. You know, you can see and you can hear, you can feel the change that is happening, which is great. And they go back and tell their friend, tell their family the difference. You know, sometimes they were just not certain what's the difference between the two eggs? You know, the minute I flip over to the bird's side of things, wow, it rings about right. So that helps. That's also a conversation, you know. Sometimes. You know, don't underestimate the power of that conversations and that consciousness sometimes will hit you in a moment that you don't even realize.
Speaker 1:
Yeah, it's good to hear guests are talking about it and they're learning and then going back to their own homes and making different decisions and is having an impact. I think a lot of times there's some skepticism, right If on this side of the world consumers care as much as in Australia or Europe or the US which, yeah, I don't think. I think they do care just as much and I think it's growing really quickly. So it's good to hear from your experience that you have found that guests that are in your hotels they care and they're talking about it and they're noticing. I think we're seeing that trend of more and more consumers across the region. So about your goals from Marriott, if I can ask, what, let's say, in the next 12 months would you be hoping to achieve with cage free, taking into account? So by, I think, the end of 2025, your commitment comes into effect. So like if we were to break it down in the next year leading up to the commitment.
Speaker 2:
Yeah, happy to share. Like I say, transparency is important. We are truly committed to it and we'll definitely do our best. Practically we are looking at crossing at least 50% over the next 6 to 12 months and we know your swing in a faster pace once you cross that 50%. It's usually the first 10%, 20%. That is the toughest as you grow in terms of a percentage. Once you cross 50% from a supply chain and procurement interview is that is the tipping point. Tipping point, in a sense, you help to cross the demand over 50%. The next 50% will be a lot easier and you'll ramp up after that 50%, mainly because the cost has come down due to the increase in volume and it also has become the norm. It's kind of sitting on the fan, very uncertain which way they will swing, but once you tip over the 50%, to swing over the other sides of the fan will be a lot easier. So it is a bit tactical and it's critical that we cross that 50% within the next couple of months. That is the target we are setting for us.
Speaker 1:
Great. So you're well on your way to reach the 100% cage-free by 2025. That's great. Now I have another question. You mentioned a few things already that you've been able to do to influence suppliers and to make good progress. Is there anything else you would recommend or any advice you would give to someone from a hospitality company in Asia who wants to meet their cage-free commitment, who might be struggling a bit now but it's just starting out? What would you tell them could be helpful?
Speaker 2:
Yeah, probably not one point. Probably. I'll make an attempt with three. Began with very much a journey that has happened to me Got to start with individuals.
Speaker 2:
It's never just about policy, it's not just about regulatory, but you personally have to see with your own eyes, have your own mindfulness and consciousness about what you are doing. It's beyond life, for sure, and it's for many more generations to come and the way we live our life has to change. So that personal commitment, personal consciousness, is important. Get yourself across that line, to be on the right side of the equation is important. If you yourself are not believing in it, just driving it because of a statement in the document, I think that will be very difficult, will be very challenging. And the supply partner, people who have to create a solution and people who have to follow you will feel it right, how genuine you are right. So that is important. And second one, of course, is a bit more tactical. You've got to be more tactical in terms of a demand and supply change, how it works Right. It is very commercial driven and has been many generations. It has been produced in such a way.
Speaker 2:
Believing in it, you and I have agreed you will not change overnight. Prepare for a journey that you have to take would not be a short one, depending on the size of the company. Some are smaller, probably will be a shorter journey to take, but for a size like Merritt, which is huge, the journey probably slightly longer and the spread, like you're talking about, 100 over country. The economy and the demographic and the supply chains are pretty complicated, right. So know your timing, know the journey you're going to have. Give me a bit more tactical and be very realistic about it. Yeah, don't go in blind. Study the competitive landscape and the supply change. Know all technical about it, how to make that tipping point work. Set your tipping point, like I said, 50 percent as a good example, right, but you will vary from company to company.
Speaker 2:
Last but not least is basically this new way of living will be the biggest incentive. Imagine the day it is no longer the way it's been produced today. Go and visit the farm, bring your children along. Look at you know three roaming birds. That will be the incentive, in the style of a carrot dangling in front of it. Maybe let's help move towards that day sooner. And that is kind of emotional. We are human being. Emotional part of it is super important, as I did another day 100 percent is really good advice.
Speaker 1:
I think it's very easy to kind of forget about our own mindset and ourselves. There's a policy. We need to get it done. We need to take the steps, but without thinking about how do we feel about it? What have we seen? Do we really believe in it? Because you're right? If it's just implementing something that's on paper because you have to, you probably won't have the same type of success or progress. It starts with really believing in it and believing in that kind of future in the world. Thank you, two more quick questions. One is aside from cage free eggs, are there any other sustainability or responsible sourcing initiatives that you've been part of? That you've really enjoyed?
Speaker 2:
Yeah, interesting that you brought this up. You probably can already imagine this animal cruelty and many other sustainability and environment targets that we are setting is definitely beyond the bird and the egg, just to name a few, is sustainable seafood quick report and also in a more environmental related, such as in the plastic borders, waste management. Yeah, I would say easily another 9 to 10 different categories we are working on at the moment. Same passion towards the bird, towards the sea produce, the same to the pork, the soul that we have to manage under the same principle and the same belief, of course, great and if somebody wants to learn more detail about these different initiatives, where can they find more information?
Speaker 1:
as far as what Marriott is doing.
Speaker 2:
Yeah, we do have a big website internal to our community of all things that we learn best practices, the new learning, new sources that we have found, and the round table that we had was shared with the whole community as well, and this is the learning curve for everyone, and no one size fit, or what's going on in Japan is not the same as in Australia. So this intranet of resources is super important and we make sure that everything is published and then we get feedback. Sometimes what we do is not right. Feedback from the audience is quite critical to us as well.
Speaker 1:
I'll publish on the episode page in the notes section maybe a couple of links to some of your reports where you talk more about these different initiatives, so people who have been listening to you and are interested in learning more can check that out. My last question and this is not related to Cage Free, this is something that I ask all the guests is what is the best piece of life advice that you've ever received?
Speaker 2:
Yeah, I think every time I always learn something new, something more powerful, something more impactful and something that changed my life, as well as of today. Towards this question, I must say it's exactly what I've mentioned earlier. The piece of advice is how you do business is as important as the business that you do, yeah, so I would say that is the most impactful, the most powerful advice I have, and this came during the time I'm with Merritt, and that is quite awakening as well. You'll get carried away on a day-to-day basis because of the number of priority that hits you. Sometimes you just got to slow down and pause a little bit and reflect on it, and this statement was just kicking and driving the change that I would do tomorrow.
Speaker 1:
Thank you for sharing that and thank you for joining us today, richard. It was a really good conversation. It's really good to hear about your experience. I think your advice that you shared will be really helpful for other companies that are on a similar path but maybe struggling in some of the countries in Asia. So thank you again for being here To be notified of our latest episodes. Don't forget to subscribe to the Sustainable Table Business Leaders Talk Welfare podcast. Wherever you get your podcasts, such as Apple Podcasts, spotify, youtube Podcasts and more See you soon.
