Bernardo Wagner

Bernardo Wagner has created an industrial-level production facility and distribution system to
provide low-cost, highly nutritious hot cereal to low-income Peruvian school children. He now
plans to create mega-cafeterias that will provide meals to poor people at a low cost.

In September 1990, the government of President Alberto Fujimori implemented drastic structural
economic reform measures. As a result of these measures, the prices of basic goods multiplied
overnight (the price of bread increased ten times), and many poor people could not afford to eat.
In a short time, the population living below the poverty-level had risen from 7 to 12 million
people.
At that time, Bernardo was General Manager of the Peruvian subsidiary of H. B. Fuller, a
multinational cooperation headquartered in Minnesota. His distress at the acute problems created
by "Fujishock" led him to open his company's cafeteria to friends and relatives of the workers.
The response was great; demand increased from 500 to 3, 500 meals daily. To meet the need,
Bernardo started producing the food on an industrial scale. Meanwhile, in a parallel response
to the crisis, "comedores populares" or "popular cafeterias" appeared throughout the poor
neighborhoods, as neighbors pooled their meager resources so they could eat.
Bernardo saw that by applying business practices to this social problem, he could attack it
efficiently, providing more highly nutritious, lower cost, and uniform quality meals to feed
hungry people. So he left his position at Fuller, marshalled his own and friends' resources, and
built a hot cereal factory called, "La Olla Gigante" or the "The Giant Pot".
The central idea is to industrialize the production and distribution of hot cereal to efficiently
combat child malnutrition. Each ration contains 100% of the recommended daily allowances of
vitamins and minerals and 40% of proteins and carbohydrates.
At present, The Giant Pot produces 200, 000 rations of hot cereals daily. These are distributed
hot in adapted tankers to 780 schools in the depressed zones of the city of Lima at a cost of US
0. 06 {6 cents).
Bernardo is currently working on a new project to establish "mega-comedores" or "megacafeterias"
in poor neighborhoods in Lima which would each serve 5, 000 low cost meals daily.
He intends to apply business principals to this endeavor as well, and has designed special
systems and processes to ensure cost-efficient operation.

Poverty, hunger and the grave problems associated with them affect at present close to 50% of
the population of Peru. Malnutrition and infant mortality are two of the most serious problems
that the country faces.
UNICEF, in its 1990 State of Global Infancy Report, ranks Peru 46th of 131 countries in rates
of child and infant mortality. In the Latin American and Caribbean region, Peru occupies third
place after Bolivia and Haiti. 123 of every 1, 000 Peruvian children die before the age of five.
Other statistics indicate that 52% of the children under the age of six suffer form malnutrition.
The resources allocated to nutritional aid programs have always been insufficient. One
government program, the "Vaso de Leche" or "Glass of Milk", enjoyed considerable success
for many years distributing dry milk through mothers' groups, Also, the Peruvian government
has cut back the program substantially in recent years as part of its budget tightening.
Other feeding efforts, many of which erupted spontaneously in poor communities in response
to economic hardship, lack the scale and possibly the knowledge to be able to provide low-cost,
highly nutritious meals to people.

Bernardo's first project, "The Giant pot", is developing and demonstrating feasibility of
producing and delivering highly nutritious meals at a very low cost.
The original installation of the plant and the purchase of distribution equipment was financed by
private sources. At present, the program receives food donations from USAID and is partially
financed by some marketing initiatives that Bernardo set in motion in order to generate income.
The next step will be to present the government feasibility of the project, to obtain financing for
its sustainable operation.
In the medium term, Bernardo intends to install a second production plant in the interior of the
country and add a shift to the Lima plant to increase total producbon to a million rations per
day.
His new initiative, the "mega-cafeterias", will each serve nutritious hot meals to 5, 000 people
per day. The hot meals will be cooked in a central location and distributed in specially-designed
tanks to the cafeterias. The tanks will be parked in slots and open from the top to convert to
serving tables. A well-known Peruvian architect is designing attractive, durable buildings made
of traditional materials. Those who can afford it will pay a small amount to cover the costs of
the operation. The elderly and those who cannot afford to pay will be subsidized. Bernardo has
convinced a number of Lima restaurateurs to cover the costs of these subsidies, creatively taking
advantage of tax deduction for advertising costs, since the Peruvian law does not allow
deductions for charitable giving. He has arranged for a television station to donate time to
broadcast the names of the restaurants and how many rations they give.

Social entrepreneurship is Bernardo's third career. Prior to starting "The Giant Pot", he spent
15 years in the Navy and 15 years in business. He holds an undergraduate degree in Naval
Engineering from the Peruvian Naval School and a Master's in Business Administration from
the INCAE in Nicaragua.
The hardship he witnessed caused by the economic measures of 1990 marked a turning point in
his life. He is now committed to applying his business skills and entrepreneurial capabilities to
improve the living conditions of poor Peruvians.