A century of achievement

1915-2015 100 years of enterprise The History of Alf. Mizzi & Sons Ltd Author: Julian Sammut Publisher: The Kite Group / 2016 Pages: 416pp

The third generation

The advent of the third generation of Mizzi family members coincided with a very low point for the business.

The core business, the importation of foodstuffs, was all but annihilated by a series of centralist government policies. The most damaging was the creation of the infamous Bulk Buying Scheme. The state became the importer of all essential commodities, including tinned milk, cheese, butter, coffee, sugar, canned tuna, corned beef and luncheon meat. These items formed the bulk of the food importation business of Alf. Mizzi & Sons.

The company’s representatives were involved in almost daily meetings with government that invariably led to late night, often heated, discussions where sensitive issues such as sourcing and pricing were debated endlessly in the hope of finding common ground.

Invariably, the system prompted feast and famine extremes as the market swung from widespread shortage that brought on hoarding and blackmarket conditions, to over-saturation of stock of such products as milk, sugar, tuna and so many others where market prices were reduced to below cost as importers rushed to offload excess stock.

The conditions that prevailed ultimately led to the weakening and eventual demise of a number of old established companies that just could not cope with the stresses that were sustained.

The company‘s representatives stood their ground with the authorities and tried their best to restore some sanity in how distributors organised their approach with government. Very often, however, it transpired that what was being said in confidence was leaked to the authorities almost instantly and therefore any initiative to bring about some rationale for the common good was quashed before it got off the ground.

The discussions were invariably long-drawn and argumentative and became so heated that on one occasion the participants sat through a great storm in an office down by the harbour, unaware of the gravity of what was happening outside, the voices drowning out wind, rain and thunder.

Initially the Mizzi brothers were hopeful that the system would work. Career civil servants like Marcel Pizzuto, Oscar Grech and Costantino Spiteri were tasked to lead committees that handled specific product groups. But government then started to tighten the screws even further, and a certain Joe Zammit, another civil servant took over as head of the system. Things became worse. Zammit was a far from popular figure at the time, with his tyrannical style of enforcement. His “I’m the boss, take it or leave it” attitude earned him the not-sokind nickname of Ayatollah, after the Iranian religious leader.

A number of importers, vying for a larger share of the market, applied pressure and managed to change the original status in which the share of the distribution was calculated on the average of imports of the previous three or four years. Alf. Mizzi & Sons eventually pulled out of the system which became increasingly unjust.

The Bulk Buying Scheme was not the only control placed on imports. Imported items that were not included in the Bulk Buying Scheme were subjected to import licences. No licences were issued for the importation of items which were either also produced in Malta or else similar to items produced in Malta. Certain cases were borderline.

“I clearly recall one case,” says Julian. “We decided to import a consignment of rag dolls from Greece. In those days, soft toys were no-go as far as importation was concerned, since plush toys were being manufactured in Malta by a Chinese-owned factory. These Greek dolls, called Patapoufs, had soft bean-bag-like bodies with hard plastic heads. Sure enough, they were held at the border by Customs officials.

“In a panic – Christmas was barely one week away – I pleaded my case with Cost Spiteri, a wily civil servant of the old school, who decided to take this matter to the then Minister for Trade, Lino Spiteri. The minister in a Solomon-like judgement, ruled that as the dolls were half-hard and half-soft, then half could be released and sold and half were to be distributed to local orphanages.”

Alf. Mizzi & Sons lost the Elite brand due to a ban on imports from Israel. This ban was introduced to please Libyan dictator Colonel Gaddafi and other Arab leaders at a time when Prime Minister Mintoff ventured South and East for political allies and cheap oil.

Japan was next in the firing line. At that time Japan was peaking and taking its place as an economic and technological giant by creating innovative products capable of changing the lives of millions of people across the globe. The Maltese government stopped importation from Japan. The reason, or rather excuse, was an unfair trade balance. Alf. Mizzi & Sons lost the sales of Seiko watches and clocks and of cigarette lighters. These were major revenue streams in the non-food side of the business. The food division also lost out on the canned tuna business because of the ban on imports from Japan.

At one point, imports were also stopped from Italy which, together with the UK, was Malta’s and Alf. Mizzi & Sons’ major trading partner. Fortunately, this was one of Mintoff’s brinkmanship moves and before long, relations with Italy were back to normal.

Prior and after the new breed joined, the company suffered two ruinous fires. In the early afternoon of Sunday, 6 July 1980, fire destroyed two parallel stores behind the Wignacourt aqueduct in Santa Venera. All was lost and the fire took almost three days to extinguish properly.

Then on 28 March 1984, a warehouse in Victory Street, Qormi where the company stored its non-food goods, including jeans, footwear and housewares, caught fire. The inventory was valued at around Lm400,000.

In 1981, the company decided to take a small equity in Valletta Biscuit Co. Ltd, later named Consolidated Biscuit Co Ltd.

Earlier, government had tried for some years to lead the initiative to industrialization and one of its earlier ventures was the setting up of a chocolate manufacturing company in partnership with the Chinese government. This was not well received by the Maltese consumers who over the years had developed a taste for the flavour of the British chocolate. The consumer resistance increased even further when all imports of chocolate were suddenly suspended.

This company lacked modern manufacturing techniques and was soon losing money. Government was keen to privatise the company but the Malta Development Corporation insisted that the takeover of Chocolate Products Malta had to be included in the deal. Despite the introduction of a new chocolate line and the introduction of countline bars like Catch and Huskie, Chocolate Products could not survive the influx of international brands once import barriers started to be dismantled and it eventually ceased manufacturing.

During 1985, the Board agreed to move its head office out of 17, Strada Zakkarija to Europa Centre, the ex-NATO Mediterranean Headquarters in Floriana.

During 1986, the Kwiksave Gift Scheme was launched from the old offices at 17 Strada Zakkarija. It later moved to Gattard House and then to Homemate.

When Alec Mizzi joined the Board he focused on securing major brands beginning with La Vache Qui Rit (1984) and then Rowntrees (1986). These were followed by Alberto (1987), Tilda (1988), Agnesi (1988), Remia (1989), Lesieur (1992), Rio Mare (1992), Zott (1992), AiA (1993), McCain (1993), Carapelli (1994), Dujardin (1996) and Meadowlea (1997).

In 1991 the company acquired land on the periphery of the Marsa Industrial Estate where it built its headquarters, moving in during 1994.

The period 1999-2002 was a very difficult time for the company. Its largest client, the Price Club Group started to fall behind in payments and it soon became clear it was insolvent. The company was by far the largest creditor, being owed over Lm900,000. Despite efforts to save it, the company went into voluntary liquidation in 2002.

Two other initiatives which involved Alf. Mizzi but which later had to be relinquished by the company were a 16.6% shareholding in Finco Trust Group, a professional services provider and the setting up of The Malta Independent (Standard Publications) in 1992. Following the lead of L. Farrugia & Sons, Alf. Mizzi pulled out of this venture in 2009.

In 1991, two “Capital” ventures, Capital Insurance Agency Ltd and Capital Services Ltd were launched, later morphing into Atlas Insurance Agency and Capital Pest Control.

In 1992, Alf. Mizzi & Sons acquired Intercomp Ltd, one of its most rewarding investments. It was appointed Authorised Distributor for Malta for Dell Computer Corporation, then for Hewlett Packard and then for Nokia. System Ltd was formed to manage the HP brand.

The next year, the Board joined forces with Allied Projects Ltd to pursue the takeover of Macpherson Mediterranean Ltd, an established paint manufacturer.

The 1990s saw the company’s significant investments in property. In December 1993, the Plaza Shopping Centre in Sliema officially opened its doors on the site of the Plaza Cinema and the nearby Majestic cinema. Being the first of its kind, the project had to overcome numerous logistical challenges.

Then the Tigne Point and Manoel Island mammoth project hove in sight. Alf. Mizzi & Sons joined forces with the Gasan Group, the Mizzi Organisation and building contractors Gatt Brothers, Elbros and Polidano Brothers and Midi was born.

Comparable in size to Mdina and conceived as a holistic lifestyle development, Tigne Point is currently best known for its luxurious seafront apartments. This is complemented by The Point shopping mall, Malta’s largest retail centre and the carfree Piazza Tigne, the largest square in the Sliema district.

The proposed development at Manoel Island will include an exclusive Mediterranean-style marine village overlooking landscaped gardens, shoreline walkways and a picturesque and well-protected yacht marina holding some 350 boats. The masterplan also includes a boutique hotel, a waterfront casino, a host of cultural, leisure and sports facilities, marina-related commercial spaces and a shoreline promenade leading up to the old Lazaretto buildings and the majestic 18th century Fort Manoel which has been fully restored.

The Point is the largest phase within the Tigne Point development. The porticos and other stonework from the colonialstyle British barracks were painstakingly dismantled, numbered stone by stone and reconstructed around The Point shopping mall. Today the mall boasts some 150 brands in over 60 units.

Retail activity in Malta in the 1990s was booming. Fully aware of this, in 1998 Alf. Mizzi & Sons decided to set up a DIY centre. This was set up in the former Prosan factory just behind the Farsons Brewery. Homemate opened its doors for business in May 1998.

In November 2006, buoyed by the success of Homemate, Alf. Mizzi & Sons bought a plot of prime property along the Mriehel Bypass and built The Atrium, Malta’s largest home furnishing store which would open its doors on 1March 2010.

In 2008, Alf. Mizzi & Sons’ ambitious diversification programme branched out into the restaurant business. Kitchen Concepts Ltd was born. Wagamama was brought from London and then Vecchia Napoli took over the ex-Pastamania, below the Plaza Hotel in Sliema. Next came Caffe Cuba in Piazza Tigne and The Chophouse nearby. Then Gululu, a casual Maltese diner at sealevel in St Julian‘s followed by other outlets in St Julian’s and at the airport.

Finally, the company has been investing outside Malta – in Romania with the Zacaria Group (residential and logistics centres); in Sicily (residential units with Siculomalti Ltd; in Libya with the Retail International Group; in Croatia plus ventures in Benelux, etc.

To celebrate all the foregoing, the company held two gala celebrations at Manoel Island both in July 2015; it was not too soon Tony, one of the first generation, died in April and Bertie died in early September.

One last word must mention the Alfred Mizzi Foundation, which is still doing sterling work for the environment and heritage.