People

Flavor Maven
Melanie Dulbecco, MBA ’90

In China, sophisticates have acquired a taste for a smidgen of blueberry in their tap water. In Japan and the Philippines, where coffee has caught on, some have picked up the original Seattle habit of adding hazelnut or vanilla flavoring to their lattes. In North America in the past year, the low-carb craze prompted increased sales of sugar-free ingredients for smoothies and cheesecakes, and in the hot climates of Saudi Arabia and Israel, religiously authorized flavorings for frozen drinks are catching on.

This in from the intelligence desk of R. Torre & Co., where CEO Melanie Dulbecco has adapted mixing and bottling technology developed for the wine industry to the production of 70-plus bottled flavors for varied, global palates. (One of the latest, most difficult products to develop: sugar-free caramel sauce.)

San Francisco North Beach grocers Rinaldo and Ezilda Torre launched the company’s Torani syrups based on five recipes from their native Italy, in 1925. By 1991, seven employees made 27 flavors for carbonated drinks and liquors. Enter Dulbecco, fresh from the Class of ’90. She dropped the liquors and focused on growing the flavors. Within five years, the company was too big for its plant and moved to South San Francisco.

“We are growing by about 25 percent this year, and we need to find space for a new distribution center,” she said recently. In 2002, the company received the President’s “E” Award for being one of a few U.S. companies to increase its exports by 100 percent. Exports sales are still only about $3 million, in the 5 to 7 percent range of total sales, so there is room for growth.

But if it sounds easy, think again. Most of Torre’s competition has been bought out by a giant Irish firm, and there are always niche newcomers. Success depends upon being part of a family-owned company that cares about profit today but also wants to be around for the long run, Dulbecco says. It also depends on a horizontal value chain that can respond to consumer trends faster than a vertically integrated company.

With that in mind, white tents were erected recently on the company parking lot so employees, suppliers, and customers could plan for the next 10 years together. When the low-carb fad passes, Dulbecco expects those up and down her value chain to have not just fresh market intelligence but new programs in the wings.

—Kathleen O’Toole

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Photograph by Lina Kejriwal
Nandakishore Kabra
PHOTOGRAPH BY
LINA KEJRIWAL

India Stargazer
Nandakishore Kabra, MBA ’63

Part planetarium show, part IMAX-style movie experience, the 16 space theaters launched by Nandakishore Kabra throughout India are attracting new generations to the galaxies beyond. Traditional planetariums project stars, constellations, and galaxies onto a domed surface. By incorporating a high-quality sound system as well as video projection, the new theaters offer a more engaging educational experience. Geared to reach students and astronomy enthusiasts, the theaters are located at educational centers.

Kabra worked in California for a few years after receiving his MBA in 1963 and then returned to his native India, where he worked with corporate giants such as Otis Elevator and Union Carbide. At the time, government control of businesses limited management consulting opportunities, so he decided to leave the field entirely and try something in a then fledgling industry. In 1981, he partnered with Japanese manufacturer GOTO Optical, which is in direct competition with IMAX and similar companies to sell, service, and operate projection equipment. Although planetarium projection systems have limited growth potential, Kabra says he finds the work rewarding.

With no comparable business model in India, he had to rely on instinct and lessons learned at the Business School. Starting with a team of two, the company now has 40 employees and services theaters in 16 cities with populations from 200,000 to 12 million. “We’re proud that our planetariums never have had to suspend shows due to mechanical failure,” he said. Currently, he is trying to produce shows for the primary school level and distribute them free of charge to students.

Opening these educational theaters has been a collaborative effort with support from state and central governments and public and private charitable trusts. Kabra says the market for planetarium goers is there, but the success of individual theaters depends upon the marketing abilities of their owners. The next few years offer a great challenge as the industry shifts to an entirely digital system. Because of this, business will be more in the survival mode than the expansion mode, Kabra says. Although who knows what the stars have in store.

—Arthur Patterson