Sealright designs sauce system for McDonald's in South Africa, China

Kansas City Business Journal

Apr 26, 1996

Press Index

Sealright Co. Inc. in Overland Park has developed and is manufacturing a new sauce- dispensing system for McDonald's Corp. as it sets up fast-food restaurants in South Africa and China.

The system is a smaller version of the one Sealright already makes for busier McDonald's outlets around the world. The small-volume system, which dispenses controlled portions of sauces, condiments and dressings, is tailored to serve the special needs of McDonald's developing markets.

And it didn't cost much more to manufacture because the necessary plant, equipment and people were already in place from the high- volume version, said George Gassmann, Sealright's director of international business development.

"By coming up with smaller versions of our systems, we can reach areas that don't have the high volume and capital," he said. "When that builds up, perhaps, we'll be able to offer them high-volume systems in those places."

Sealright is a leading North American supplier of packaging and packaging systems for ice cream and other frozen dairy desserts. The company also manufactures flexible packaging and labeling, label- application equipment and rigid paperboard and plastic containers for food and dairy products.

The initial deal is worth about $500,000 to Sealright, but Gassmann said getting in on the ground floor as McDonald's expands its market share is the key to Seal-right's growth.

"It's important to get our systems in and grow as they grow," he said.

There are 18,600 McDonald's around the world with three in South Africa and 67 in China, said Ann Connolly, company spokeswoman.

Sealright's strategy is to eventually supply China's restaurants through its manufacturing plant in Australia. "As business develops, in a year or so, we'll move some of our (U.S.) manufacturing processes down to Australia," Gassmann said.

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