Hilbert Klop breathes the dynamics of global trade in grapes, citrus fruits, kiwis, and dates. "It moves fast, you have to stay on top of it." That's how he talks too: fast, to the point, and above all... passionate. The CEO of Direct Source International (DSI) is completely intertwined with what he calls the service provider for growers and retailers.
What do you mean by service provider? Aren't you 'just' a trading company?
"There are many trading companies in the fruit industry, but our added value is that we coordinate the entire chain. So, it goes much further than simply buying and selling containers of fruit. We stand for a very close relationship with our growers as suppliers and the retailers as our customers. The grower provides us with the broad spectrum from his fruit production, and we support him in this. That is specialized work, we are good at it, and we have grown large because of it."
What growth has DSI experienced?
"We have been around for 14 years now, and last year DSI's revenue reached €180 million for the first time. In terms of volume, we receive about 5,000 containers in Rotterdam. We specialize mainly in citrus and grapes, which account for by far the largest part of the revenue. DSI is part of the Direct Source International Group. DSI is the main activity, but in recent years, we have helped start various new companies that together represent another €140 million. Encouraging new initiatives is in our DNA. Someone has an idea, and if we find it promising, we first support it with a majority stake, which later converts to a minority stake."
Where do these grapes and citrus fruits come from?
"The grapes mainly come from South Africa, Namibia, Peru, Chile, and India. The citrus fruits mainly come from South Africa, Egypt, and Morocco. We maintain direct contact with these growers. We visit them ourselves two or three times a year, that's the most important, personal contact! But in addition, there is also a lot of online communication. With most growers, especially in South Africa, there has been a generational change or is currently happening. These young people don't need to be taught how to grow, they don't need you as a European advisor for their production. What they do need is insight into product flows, quality, and prices. That's what I mean, among other things, by our chain coordination."
What is your ambition for the future?
"We are steering the organization based on a 2030 strategy. Establishing a strong relationship with our growers is crucial. This is achieved through long-term partnerships. This is good for the grower, but also for the retailer because they demand a specialist who brings their own partners. DSI still sees growth throughout Europe, but particularly in Eastern Europe. In addition to grapes and citrus, we also have a growth focus on kiwis and dates. The latter group is growing rapidly in Europe as a consumer product, valued as a healthy and fiber-rich product."
Do you have a specific revenue target?
"No, as management, we focus on facilitating entrepreneurship among our people. We don't need to lock our people in with fences; instead, we provide plenty of green grass and enough water, so that your team is intrinsically motivated. This way, they don't grow towards targets, but from within themselves. We only set guidelines. For example, with citrus, we are moving to a new location in Ridderkerk. This will increase our storage capacity, allowing our people to continue to grow without logistical constraints. So, growth is not driven by setting a number, but by facilitating growth! We give people a lot of freedom but are also very critical! The choices they make must be thoughtful and well-founded. They need to explain well what they are doing and why. When we set up and facilitate the team properly, growth will follow."
Growth often comes with growing pains. Have you experienced those as well and how do you prevent them in the context of your growth strategy?
“We have definitely experienced growing pains, which is almost inevitable. One important lesson we have learned is that in addition to commerce, which is truly the foundation of the company and where we are completely rooted with energy, you also need to increasingly focus on operations, finances, HR, business control; those kinds of matters. And furthermore, ensure that as founders you delegate your responsibilities. This includes not only leadership and tasks, but also making ownership available to those who are gradually taking over your role. Currently, over 35% of the shares are in the hands of the new generation. The other shares are held by the founders Marnix van Fraassen, Jan de Sterke, and myself. We must guide and empower our entire team, it goes hand in hand. Bringing out the best in your people and team: that's what it's all about!”
What bottlenecks do you foresee in the implementation of your growth strategy?
“A very important one is the substitution risk. Retailers are becoming so big that they are starting to talk to growers themselves and make agreements. This means that we have to do our utmost to demonstrate our added value as a chain coordinator, based on a very strong connection with growers, and to ensure that those retailers recognize our importance. Even if only for risk diversification. This leads me directly to a second bottleneck: product requirements in Europe are increasing along with rising costs in the chain. This means that together with the grower, we need to make an even stricter selection in the country of origin.”
You sail sharp and fast against the wind. What kind of corporate culture do you think fits that?
“I already mentioned that it's a fast market where you have to be on top of things. After coordination meetings in the morning, it's possible that you have to adjust prices in the afternoon. It's constantly changing, which makes it exciting. We also deal with fresh products; you have to sell them or they'll spoil. So yes, we are very commercial and in terms of business, we can be tough. But towards each other, we are always genuine, open, and honest. There are no political games, no backstabbing. The atmosphere is truly golden! As directors, we don't sit on the top floor in separate rooms, but right on the work floor among everyone. Passion and fruit are in our blood and people are the heart of the company, you want to be 100% part of that!”