The group that recently purchased the wholesale New Zealand bakery Original Foods Baking Co. has announced it will acquire Sara Lee, the iconic Australian desserts and baked goods brand, from McCain Foods in Australia and New Zealand. Read more
GrainCorp is selling its 60 per cent stake in manufacturer of bakery premixes and products Allied Mills to Pacific Equity Partners (PEP) for $190 million.
PEP said in a statement Allied Mills will be integrated with their Pinnacle, their Bakery and Integrated Ingredients business.
With over a century of flour milling and food ingredient manufacturing experience, Allied Mills annually buys and processes around 800,000 tonnes of wheat and specialty grains including maize, rye, triticale, organic hard, soft and noodle wheats.
Pinnacle has a leading position in the sweet bakery products and bakery ingredients market, manufacturing and distributing finished and unbaked goods such as cakes, pastries, cookies, muffins and donuts, as well as bakery ingredients such as fillings and fondants. Both businesses service major supermarkets, food manufacturers and foodservice operators.
“Since acquiring Pinnacle, PEP has substantially increased investment in both R&D and manufacturing capability and demonstrated an unwavering focus on delivering great results for our customers. The combination of Pinnacle and Allied Mills offers a unique opportunity to generate value through category-leading innovation and technology solutions while embedding a world-class supply chain which can service more customers, more often,” said Pinnacle CEO, James Ajaka.
The combined group will concentrate on products in the frozen specialty baking, in-store baking and bakery ingredients areas.
The transaction is expected to close within two to three months.
Renaissance Ingredients’ has filed a provisional application for the patent of its non-GMO acrylamide-reducing (AR) baker’s yeast.
The application protects the company’s work over the last two years in developing baker’s yeast strains (Saccharomyces cerevisiae) that reduces acrylamide by up to 95 per cent in a variety of food products by degrading the precursor compound asparagine.
Acrylamide is a World Health Organization Group IIA carcinogen that has been shown to be mutagenic and neurotoxic in a variety of laboratory animal studies. In 2002, acrylamide was identified in a range of common foods including bread, toast, potato chips, fries, cereals, and coffee. Acrylamide is not added to foods, but forms naturally from the amino acid asparagine when foods are heated above 120 °C (e.g. baking, roasting, or frying). The European Food Safety Association (EFSA) recently announced its latest risk assessment on the continuing widespread presence of acrylamide in these various foods. This report is one of many issued by food regulatory and health agencies worldwide, including the US FDA, Health Canada, and others.
“Our AR yeast is an important step towards solving the global health concerns posed by dietary acrylamide,” said Renaissance Ingredients President Dr. Matthew Dahabieh. “Our testing, both in-house and with commercial partners, demonstrates that AR yeast reduces acrylamide by up to 95 per cent in a variety of foods.”
AR yeast applications: baked goods, potato products, snack foods, and coffee
Renaissance Ingredients’ AR yeast strains are traditional baker’s yeast with an accelerated natural ability to consume asparagine, thereby reducing acrylamide. AR yeast can replace conventional baker’s yeast with no disruption to the baking process. AR yeast also can be used in foods in which yeast is not normally an ingredient. Renaissance Ingredients has conducted numerous successful studies on the feasibility of using AR yeast in novel ways for foods containing yeast extract, chemically leavened foods, or foods exposed to soaking steps during processing. These foods include potato-based products such as potato chips and French fries, savoury snack foods, cereal products, and coffee.
Product Name: Ancient Grains + Activated Super Seeds Organic Sourdough
Product Manufacturer: Bill's Certified Organic Health Bakery
Launch date: 10/06/15
Ingredients: Certified organic stoneground spelt flour and certified organic stoneground khorasan flour, filtered water, certified organic flaxseeds, certified organic chia seeds, certified organic quinoa seeds, certified organic sunflower oil, psyllium husk, lecithin and Himalayan pink rock salt.
Shelf Life: 6 days
Packaging: Fully degradable packaging made from polyethylene
Country of origin: Australia
Brand Website: www.billsorganics.com.au
What the company says:
Activated & Certified Organic Chia, Quinoa and Flaxseed are combined with Certified Organic stoneground Spelt and khorasan flour (both highly nutritious alternatives to conventional wheat) to create this bread. Our process of activating our 7 Seeds (the start of the sprouting process) unlocks the whole grain nutrition in this loaf. Digestibility is improved by breaking down gluten allowing for easier absorption.
Product Name: Ancient Grains – Power Protein Organic Sourdough
Product Manufacturer: Bill's Certified Organic Health Bakery
Launch date: 10/06/15
Ingredients: Certified organic stoneground spelt flour and certified organic khorasan flour, filtered water, certified organic barley, certified organic buckwheat flour, certified organic millet flour, teff flour, certified organic sunflower oil, psyllium husk, lecithin and Himalayan pink rock salt.
Shelf Life: 6 days
Packaging: Fully degradable packaging made from polyethylene
Country of origin: Australia
Brand Website: www.billsorganics.com.au
What the company says:
This loaf is full of nutrient dense, conventional wheat free, performance enhancing and protein rich ancient grains. This bread is filled with a selection of high protein, calcium, vitamins, minerals and soluble fibre. We achieve this powerhouse of protein by blending certified organic khorasan and Spelt with Teff, Millet, Buckwheat and Barley.
Product Name: Abe's Kids Bagel Bites
Product Manufacturer: Abe's Real Bagels
Launch date: May 2015
Ingredients: Wheat flour (wholemeal 12%), GM Free Canola Oil (with antioxidant Vit. E), Sour Cream and Chives flavour (4%) (Contains milk, GM-Free Soy), Iodised salt, Bakers yeast, wheat gluten,sugar, vinegar, malted barley flour, GM-Gree Soy flour, enzymes.
Shelf Life: Six months
Packaging: 6 x 15grams
Country of origin: New Zealand
Brand Website: https://abes.co.nz
What the company says:
ABE’S Kids Bagel Bites are a guilt-free, versatile snack which has Australian wholemeal flour, and natural flavourings, and only 1.9g of fat and 0.6g of sugar per serve.
Healthier and longer lasting pita bread may be the outcome of barley research underway at the University of Adelaide’s Waite campus.
Researchers in the School of Agriculture, Food and Wine have been investigating different varieties of barley to find ones that have higher levels of Vitamin E and other antioxidants at harvest and after storage.
They are then making pita bread with different combinations of malt, wholegrains and flour (all made from promising barley varieties) to see if they can produce pita bread with higher antioxidants, making them healthier and prolonging their storage capacity.
“Barley has historically been used for malt and livestock feed,” said Professor Amanda Able, University of Adelaide Professor of Plant Science.
“Recently, however, there has been growing interest in the use of barley in human foods largely due to its high content of fibre, beta-glucan and antioxidants.
“Antioxidants are crucial in maintaining the health of tissues and organs because of their ability to slow tissue damage by acting against damaging free radicals.
“Malt and food products containing antioxidants have the additional benefit of lasting longer on the supermarket shelf. And, while antioxidants can be easily destroyed by light, water and heat, we’ve found barley varieties that not only start with higher levels of antioxidants but the levels remain stable during storage before processing.”
The research is being carried out by PhD candidate ThuDung Do, who is supported by AusAid. Preliminary results have one hull-less (no outside husk) barley variety in particular showing promise for its high and stable levels of Vitamin E.
“Usually it’s the varieties with husks that have the higher levels of antioxidants so this hull-less variety has the additional benefit of being softer and a better type of grain for pita bread,” said Professor Able. “Husked grain can be quite hard and not so suitable for pita.”
The next steps in the research are conducting consumer testing and further research to see if the Vitamin E from the barley is being digested and used by the human body. They are also investigating the additional shelf-life due to the higher antioxidant levels.
Other research will look at genetic sequencing of the barley to see which genes are responsible for the antioxidant and Vitamin E levels for future breeding programs.
Woolworths is conducting a national recall of its Select Chicken & Vegetable Pies 4pk from Woolworths and Safeway stores nationally, due to the presence of foreign matter (glass).
The recall applies to products sold in Woolworths and Safeway stores nationally from 14 April 2015, with a Best Before date of 9 October 2016 to 10 October 2016 inclusive.
No other products are affected by this recall.
The product can be returned to Woolworths or Safeway Supermarkets for a full refund.
Last year, Woolworths recalled 500g blocks of its Homebrand tasty cheese after a consumer bit into a safety pin buried in the product.
Naturally, when a food manufacturer reaches the 150 year milestone, you want know how they did it.
To celebrate 150 years of ‘Bringing out the Biscuits’, Food Magazine spoke with Craig Funnell, VP Supply Chain and Sarah Ryan, Director of Marketing Arnott’s Shapes.
1. How has Arnott's maintained relevance over 150 years?
Craig: To remain relevant with consumers and retailers in Australia you need to be both innovative and cost competitive. It also helps if you can own the shelf in in the supermarket! Arnott’s has market share of more than 60 percent and to retain our position as category captains, we continually invest in many areas including infrastructure, ensuring our food safety and quality standards continually rise to meet higher consumer expectations.
Sarah: Arnott’s has a commitment to great consumer insights, which ensures we remain in touch with market trends and our consumers. Over the past 150 years we’ve evolved to meet changing needs of our consumers. We do this in a number of ways – renovating favourite products (like new Shapes flavours in keeping with current trends) while also understanding that many of our products have stood the test of time and should remain untouched, for example, Milk Arrowroot (1882) Iced VoVo (1906) and SAO (late 1800s).
Shapes Light & Crispy is a really good example of how we have approached changing trends to stay relevant. Health and wellness is a growing trend in food and we saw there was an opportunity to develop a Shapes product that allowed consumers to enjoy the Shapes flavour hit they love with a lighter and crispier texture, 75 percent less saturated fat and no artificial colours or flavours. Shapes Light & Crispy has been launched in four on-trend flavours, with our top seller being Tasty Cheddar and Chives. The product has contributed to strong growth of 15 percent for total Shapes, which indicates that when you tap into a market trend and deliver a great product to meet it, you can really improve your consumer relevance and drive great growth.
2. How has the Australian Food Manufacturing industry changed over time?
Craig: To remain viable, Australian manufacturers need to constantly address productivity. Operations also need broad capability to meet innovation challenges. For Arnott’s, our biggest priorities remain the health and safety of our people and the quality of our food.
As many of our competitors have exited the Australian manufacturing industry, we are now increasingly up against Asian/NZ and European imports which are lower in cost. For Arnott’s, that means we have to continue to provide the most relevant products to meet our consumer’s wants and needs and continue to be quality driven.
3. How has the market changed and how has Arnott's responded?
Sarah: Arnott’s started baking Ships biscuits and pies in 1865 for the Port of Newcastle. Ships Biscuits were a very functional, hard biscuit designed to last for long journeys at sea. They were for sustenance really. In the following years, sweet biscuits became popular. Today, sweet biscuits and chocolate biscuits are popular but savoury biscuits and snacking is increasing in popularity – Shapes now makes up 19 percent of our portfolio sales and savoury biscuits 44 percent.
Some other key changes include increasing sophistication of products over time, as consumer food interests and manufacturing capabilities have evolved. The proliferation of products, as manufacturers responded to the needs of different consumers and for different products for different occasions e.g. snacking and entertaining.
The Shapes biscuit range is a great example here. Shapes was launched in 1954. Over time the popular biscuit flavours have remained relevant, tasty snack for Australians, but the range has expanded to meet the needs of specific consumers and occasions. In 2008, Shapes Sensations were launched to meet the needs of an older consumer.
The product delivers more sophisticated, foodie flavours to meet the needs of an adult snacking occasion. In 2014, we launched Shapes Light & Crispy, which is targeted to meet the needs of a female consumer. In 2015, we have launched Shapes Extreme, which is designed to meet the snacking needs of teen boys. These biscuits deliver to teen boys by delivering a bigger, bolder flavour, a bigger biscuit with an extreme crunch and an attitude to match. The hero flavour Chilli Charge is a great example of the taste intensity of the range.
4. What lessons has Arnott's learned?
Sarah: We must always put our consumers first and deliver fantastic food – delicious food that has no substitute for quality.
5. What has Arnott's got planned for the next 150 years?
Craig: Our focus is always our consumers, their preferences and of course, there’s no substitute for quality! In the next 150 years we will continue to innovate and expand into new areas and look for ways to keep biscuits relevant in Aussies day-to-day lives.
Sarah: A lot! To keep making Australia’s favourite biscuits. Innovation into new spaces – more moments with the right biscuits. Capitalising key trends – health and wellness, foodie trend, on-the-go snacking. And finally, continuous improvement – leveraging new technologies to continually improve our products to deliver best quality and maintain relevance for our customers.
Product Name: McCain Pizza Toastie
Product Manufacturer: McCain
BBQ Beef: Toastie dough (wheat flour (thiamine), water, rice flour, sugar, yeast, canola oil, salt), bbq sauce (24%) (water, tomato paste, flavour (sugar, thickeners (1422, 415), dextrose (wheat), vegetable powders, salt, flavours (soy), acidity regulator (262), anticaking agent (551), spices), bread crumbs (wheat), canola oil, thickeners (1412, 415)), mozzarella and parmesan cheese (16%) (milk, salt, starter cultures, enzymes, preservative (200)), beef (6%)(beef, water, mineral salts (451, 452, 450), salt).
Cheese & Tomato: Toastie dough (wheat flour (thiamine), water, rice flour, sugar, yeast, canola oil, salt), sauce (water, tomato paste, flavour (sugar, salt, natural flavours , thickener (415), vegetable powder, vegetable oil (soy)), bread crumbs (wheat), canola oil, thickener (1412), salt), mozzarella and parmesan cheese (19%) (milk, salt, starter cultures, enzymes, preservative (200)), tomatoes (3%).
Ham & Cheese: Toastie dough (wheat flour (thiamine), water, rice flour, sugar, yeast, canola oil, salt), sauce (water, tomato paste, flavour (sugar, salt, natural flavours, thickener (415), vegetable powder, vegetable oil (soy)), breadcrumbs (wheat), canola oil, thickener (1412), natural flavour (wheat)), mozzarella and parmesan cheese (16%) (milk, salt, starter cultures, enzymes, preservative (200)), processed ham (9%) (pork, water, potato starch, soy protein, salt, thickeners (1412, 407a), dextrose, emulsifiers (451, 450, 452, 508, 322 soy), maltodextrin, smoke flavour, antioxidant (316), acidity regulators (326, 262), hydrolysed vegetable protein, preservative (250), natural colour (120), canola oil, yeast extract, herb extract).
Shelf Life: 12 months
Packaging: A plastic wrapped aluminium tray inside a cardboard box
Product Manager: Jessica Foley
Brand Website: www.mccain.com.au
What the company says:
McCain Foods Australia has launched a category first for Australia with a new range of McCain Pizza Toasties, a convenient hot pizza snack that is ready from frozen in just a few minutes.
By quickly heating and then finishing in the toaster for a golden crispy crust with a warm filling, the McCain Pizza Toasties deliver a convenient way to enjoy pizza snacking on-the-go.
McCain Pizza Toasties are available in Ham & Cheese, Cheese & Tomato and BBQ Beef. All flavours contain no artificial colours or flavours and include mozzarella cheese.
Victorian-based fresh pizza manufacturer Della Rosa has cracked the Chinese market, with plans for Taiwan, Japan and Korea.
"I didn't find it hard to get into China but you need to adapt to the type of product they need and our product has changed a lot for them and their tastes," says Emilio De Lorso, director of Della Rosa Fresh Foods Group.
One modification Della Rosa made to their products for China is the salt content. In China, Della Rosa products taste less salty than the company's products sold in Australia. Della Rosa identified a need to make these modifications by first finding a buyer, who helped work out what type of products would work well in the country.
"For example, in China we're not importing products with meat. The three products that we're exporting are vegetarian. In Costco Taiwan, we're not going to have any problem with meat, because meat from Australia is already allowed to export to Taiwan," De Lorso says.
Della Rosa was then provided with a list of ingredients it is allowed to bring into China.
"We build the product basically on what we're allowed to sell in the country."
Above: Della Rosa in a Costco supermarket.
When the product went to market in China, Della Rosa put their demo team to work, three days a week in five major stores for three months.
One point of difference that helps set Della Rosa apart is the company's "constant cycle of innovation." Della Rosa recently launched a newly designed product exclusively for Coles Supermarkets.
"We launched a box that looks like a freezer box but it's got a window that allows you to see right through, to the product," De Lorso says.
"The window in the box has a large impact. We are in the fresh section; but we go in the frozen section. The frozen section often uses a full box so often people see a fantastic photo and when they try the product, it's not what they saw in the photo.
"So we allowed people to see the product through this window, which is like a quarter of the packaging. To balance the packaging, we then replicated the real product inside with a photo on the box. It's extremely new in this country – what you see is what you get."
Della Rosa creates new products by keeping an eye on the trends in Australia's food industry and incorporating them into their products.
"We work around what is the latest trend. The trend is launched by all the food retailers, that is; McDonalds, Kentucky Fried Chicken, Nando's and so on. They are the people who decide what's new. Then we create products around what people have accepted.
"Plenty of times what [the food retailers are] launching is not accepted into the marketplace and you can tell straight away because it is cut in two months," De Lorso says.
Keeping it local – a necessary expense
Della Rosa sources 95 percent of its ingredients from Australia and 80 percent of which is from Victoria.
"We don't find it a problem getting [ingredients] locally, what you face is competitiveness in price. A supplier from another state, if they want to enter into Victoria they may have a better price than the local one but [sourcing locally] is part of quality."
Another consideration for Della Rosa is finding a supplier with the right certification to allow the product to enter into supermarkets.
Coping with demand
Della Rosa has grown between 20 and 30 percent every year, with this year witnessing an additional five percent growth.
"The demand is there and at the moment we manage to cope with the demand by working Saturday, Sunday and overtime, so we have this extra expenditure. By spending on new equipment, we will release this pressure."
For a more sustainable way of coping with demand, Della Rosa is building a new 10,000m² facility, which will boost production from 1,500 units per hour to over 4,500 units per hour. The new facility will be Della Rosa's second line.
"The second line is three times bigger than the first one and because of that, we've purchased land and we are building a new premises where the new line has got to go.
"There's going to be new refrigeration, it's all completely new and then we're going to move there, which is only two doors down from where we are. It's on the same street but the factory is purpose-built for the new equipment."
So what's next for Della Rosa?
Aside from the growing export business, De Lorso says the next big step will be into foodservice. This will be accommodated by the new equipment, due to arrive in June.
As for growth, De Lorso says it's "not an issue."
The Federal Court has ordered Coles to pay penalties of $2.5 million for its misleading "Baked Today" and "Freshly Baked In-Store" bread promotion.
The Federal Court has ordered Coles Supermarkets Australia Pty Ltd (Coles) to pay penalties of $2.5 million for making false or misleading representations and engaging in misleading conduct in relation to the promotion of its par baked bread products, in proceedings brought by the Australian Competition and Consumer Commission.
The products were promoted as “Baked Today, Sold Today” and in some cases “Freshly Baked In-Store”, when they were in fact partially baked and frozen off site by a supplier, transported and ‘finished’ at in-store bakeries within Coles supermarkets.
In imposing these penalties, Chief Justice Allsop said “The contravening conduct in this case is substantial and serious. Notwithstanding the absence of any specific evidence as to loss or damage by a consumer or a competitor, it is clear that the significant potential to mislead or deceive and thus to damage competitors, the duration of the conduct, and the fact that the goods in relation to which the impugned phrases were used were “consumer staples” indicate that the objective seriousness of the offending conduct was considerable.”
The evidence before the Court showed that Coles had engaged in the campaign with the clear purpose of improving its market share vis-à-vis its competitors, being bakeries such as Bakers Delight…It set out to do so by engaging in the conduct that, in fact, breached the Australian Consumer Law,” Allsop said.
“This penalty sends a strong message to companies that they should not use broad phrases in promotions that are deliberately chosen to sell products to consumers but which are likely to mislead consumers,” ACCC Chairman Rod Sims said.
“As the Chief Justice pointed out, it is important that sellers in the market recognise that consumers are entitled to reliable, truthful and accurate information”
“The ACCC took this action because it was concerned that Coles’ “Baked Today, Sold Today” and “Freshly Baked In-Store” claims about its par baked bread were likely to mislead consumers. The conduct also placed independently-owned and franchised bakeries that entirely bake bread from scratch each day at a competitive disadvantage,” Sims said.
Coles’ conduct was part of a nationwide campaign that was promoted in 637 Coles supermarkets. “Baked Today, Sold Today” was used extensively on packaging for par baked products over a three year period. During this time, Coles sold a significant number of par baked products and generated substantial revenue from these sales.
In September 2014, the Court declared that by using the phrase “Baked Today, Sold Today”, Coles represented to customers that certain bread products were entirely baked on the day on which they were offered for sale, when this was not the case, in contravention of the Australian Consumer Law (ACL).
The Court also declared that by using the phrases “Freshly Baked In-Store”, “Freshly Baked” and “Baked Fresh”, Coles had represented that certain bread products were baked from fresh dough, entirely baked on the day on which they were offered for sale and had been entirely baked in the Coles in-store bakery, when this was not the case and in contravention of the ACL.
At that time, the Court banned Coles from advertising that its bread was made, or baked on the day that it’s sold for three years and that it place a corrective notice on its website and in its in-store bakeries.
The Scheme of Arrangement under which Wilmar International Limited and First Pacific Company Limited will acquire 100 percent of Goodman Fielder has been implemented.
Wilmar and First Pacific, through 50:50 jointly owned entities, now hold all of the shares in Goodman Fielder. Eligible Goodman Fielder shareholders who held shares on the Scheme Record Date (10 March 2015) will be sent the Scheme Consideration of A$0.675 cash per share today (or as soon as practicable thereafter).
The resignation of Steven Gregg, Chris Delaney, Ian Cornell, Jan Dawson, Chris Froggatt, Peter Hearl, Clive Hooke and Ian Johnston from the Board of Goodman Fielder took effect from implementation.
Robin Nicholson, Kuok Khoon Hong, Scott Weitemeyer, and Graham Pickles have been appointed to the Board of Goodman Fielder with effect from implementation. Nicholson has been appointed Chairman.
“This final step in the process completes First Pacific and Wilmar’s acquisition of Goodman Fielder and we look forward to working with the business to implement our transition plans and growth agenda,” Nicholson said.
“As part of this we would like to announce that Scott Weitemeyer will be appointed managing director and chief executive officer of Goodman Fielder, replacing Chris Delaney.
“Scott will work with the dedicated team at Goodman Fielder to begin building a leading Asia Pacific consumer foods business,” Nicholson said.
Goodman Fielder expects to be delisted from the ASX and NZX on Thursday, 19 March 2015.
The takeover was approved by shareholders in February.
Goodman Fielder owns brands such as Helga’s, Mighty Soft, White Wings, Praise and MeadowLea.
Goodman Fielder shareholders have voted in favour of the proposal from Wilmar and First Pacific to acquire 100 percent of Goodman Fielder.
Goodman Fielder shareholders have voted in favour of the proposal from Wilmar International Limited and First Pacific Company Limited to acquire 100 percent of Goodman Fielder (through an Australian jointly owned entity) via a Scheme of Arrangement.
More than 99 percent of votes were cast in favour of the 67.5¢-a-share offer, while just over 80 per cent of shareholders approved overall.
Goodman Fielder Chairman, Steve Gregg said the transaction was an attractive value outcome for Goodman Fielder shareholders and also represented a positive outcome for the company’s employees, customers, suppliers and consumers.
“Recommending shareholders vote in favour of the resolution was not a decision the Board took lightly. We are very mindful of the iconic status of Goodman Fielder across Australia and New Zealand and the rich history it enjoys across this region.
“While in one respect it will be sad to see the company change from public shareholding to private ownership, I also think it is important to recognise the significant opportunity that can come from this change.
“Wilmar’s scale and distribution networks, together with First Pacific’s experience and both parties’ financial resources, will provide meaningful scale to Goodman Fielder’s existing operations and allow the company to grow its presence further in the Asia Pacific region.
“We’ve consulted widely with our people through this transaction process, and they are excited about the future prospects that this change of ownership can bring for Goodman Fielder,” Gregg said.
A Federal Court hearing is scheduled for 2 March to approve the takeover and Goodman Fielder shares are expected to stop trading the day after.
Goodman Fielder owns brands such as Helga’s, Mighty Soft, White Wings, Praise and MeadowLea.
Product Name: Tim Tam by Adriano Zumbo
Product Manufacturer: Arnott’s Biscuits
Choc Raspberry: sugar, wheat flour, vegetable oil, cocoa mass, milk solids, cocoa butter, golden syrup, food colours, cocoa powder, emulsifiers, salt, baking powder, raspberry powder, food acid and flavour.
Coconut Cream: sugar, wheat flour, vegetable oil, milk solids, cocoa butter, cocoa mass, dessicated coconut, coconut milk, golden syrup, food colour, cocoa powder, emulsifiers, salt, baking powder and flavour.
Shelf Life: 6 months
Brand Website: www.arnotts.com.au
What the company says:
Tim Tam by Adriano Zumbo Coconut Cream: Delicious Coconut Cream sandwiched between rich, dark biscuits and covered in Arnott's famous Milk chocolate.
Tim Tam by Adriano Zumbo Choc Raspberry: Irresistible Raspberry Cream sandwiched between rich, dark biscuits and coated with Arnott's semi-dark chocolate.
Adriano Zumbo is an Australian and French-trained patissier known for his elaborate, quirky desserts and has developed a cult following thanks to his work on shows like Masterchef and his growing fleet of eponymous patisseries.
Zumbo says: “This is my second collaboration with Arnott’s Tim Tam and I couldn’t be happier with the result. The new Coconut Cream and Choc Raspberry flavours are bold and authentic additions to the Tim Tam biscuits Australians know and love.”
Following the success of the Tim Tam by Zumbo range launched in 2013, the two new flavours will join the existing Tim Tam by Adriano Zumbo biscuits.
Goodman Fielder has returned to profit but says the retail trading environment in Australia and New Zealand is challenging.
Goodman Fielder reported a $28.6 million net profit for the six months to December 31, compared to a $64.8m loss for the previous corresponding period but said there'd be no dividend.
“Trading conditions, particularly in the Baking and Grocery segments continue to be challenged by significant pricing pressure across several of our core categories,” said chief executive officer, Chris Delaney.
“In Baking, we significantly increased market share in our power brands in Australia and New Zealand from strengthened brand equity, product reformulation and innovation. However, net average selling prices were lower due to the very competitive pricing environment, particularly from increased promotional pricing in the fresh loaf category.
“In response, we are working with our major retail customers to move our major brands in Australia from high/low promotional pricing to everyday low pricing which we believe will provide a better, longer term value proposition by restoring consumer confidence in branded pricing, better align demand with production and enhance value in the category.
“Our Grocery business continues to be impacted by strong price competition in the spreads, flour and cake mix categories, which more than off-set the improved result in dressings and mayonnaise where our Praise brand continued to lead the category by recording its highest ever market share during the period.
“While we continued to face challenging headwinds in Baking and Grocery, our margins in New Zealand Dairy recovered from the lower farmgate milk price following the record increase which significantly depressed earnings last year.
“Meanwhile, the growth momentum from our Asia Pacific business in the prior year continued in the first half of FY15 with earnings up 12 per cent on the prior corresponding period.
“The improved results from the NZ Dairy and Asia Pacific businesses resulted in overall Group earnings being in line with the first half of FY14,” Delaney said.
Goodman is in the process of being acquired by Asian groups Wilmar and First Pacific in a $1.34 billion deal.
Paul Slaughter has been appointed as the new Chief Executive Officer of Mrs Mac’s, commencing with the company on 9th February.
Slaughter’s most recent role was General Manager of the Metcash Food & Grocery (IGA) business in Western Australia where he led the entire wholesale, manufacturing and distribution business. He was also Director of the Metcash Transformation project in Sydney, leading a 65-strong team to transform that business nationally.
Prior to these roles, Paul held other senior roles in the industry. These include General Manager for Procter & Gamble leading the Coles Customer team (Melbourne) and National Business Manager for Arnott’s Campbell’s leading the Woolworths Customer Team (Sydney). He has worked for a range of smaller West Australian food companies including Anchor Foods and launched a company specialising in distributing quality Australian food products, throughout a wide range of local and international channels.
Slaughter has a degree qualification in Marketing (University of WA) and Strategic Management (Macquarie Graduate School of Management). He recently completed the Advanced Management Program at INSEAD (France). He is also a member of the Australian Institute of Company Directors.
IBISWorld predicts the Cake and Pastry Manufacturing industry will focus on specialised, higher margin products, over the five years through 2019-20.
According to the IBISWorld report, changing consumer trends, volatile commodity prices and a saturated market have characterised the Cake and Pastry Manufacturing industry in Australia. Rising input prices and intensifying external competitive pressures have posed some serious challenges to the industry over the past five years. For example, supermarkets have extended their private-label offerings as part of their ongoing push into the fresh food market. In addition, the move towards artisanal and gourmet foods has increased competition from retail bakeries, which have posed a threat to branded manufacturers in other parts of the baked goods sector.
According to IBISWorld industry analyst Arna Richardson, “in response to these challenges and sweeping changes in consumption needs and preferences, industry operators have relied on innovation and new products to stimulate demand in an otherwise stagnant market.”
Over the past five years, industry operators have promoted a widening range of products on the basis of health, wellbeing and convenience. Despite these measures, industry revenue is expected to contract at an annualised 1.3 percent over the five years through 2014-15, as heightened competitive pressures and restrained household disposable expenditure have taken a toll on the industry.
Over the five years through 2019-20, the industry will slowly evolve in line with its changing operating environment. New products, including lower sugar, low-fat and gluten-free alternatives and those containing added functional ingredients, will continue to be rolled out as the industry focuses on specialised, higher margin products. In view of intensifying competitive forces in traditional distribution channels, including the grocery channel, “the industry is expected to increasingly focus on food-service providers and convenience stores as preferred channels for purchases of pies and cakes,” said Richardson.
The Cake and Pastry Manufacturing industry is characterised by a low level of concentration, reflecting the existence of a large number of small and medium operators. This is despite the existence of some larger manufacturers with global connections including George Weston and Sara Lee. Concentration also varies between product segments. The cake segment tends to be less concentrated, as numerous niche players exist and production tends to be labour-intensive. Pies, however, command higher brand and customer loyalty and are therefore more concentrated, with the major players competing for market share.
Typically, the industry's larger firms tend to specialise in mainstream products, targeting the low to mid-price range of the final market. Smaller firms tend to concentrate on specialty products requiring short production runs and lower volumes. Despite the presence of smaller firms, manufacturing is moving toward larger scale, concentrated production.
This industry consists of companies engaged in the manufacturing of cakes, pastries and similar bakery products (including frozen products) from either a factory-based premises or home. It does not include those companies that produce and sell their products direct to consumers on the same premises, such as retail bakeries and supermarket instore bakeries.
At Temptation Bakeries, continuous improvement isn’t just an industry catch phrase – it’s absolutely vital.
Temptation Bakeries started as a small regional bakery on Victoria’s Mornington Peninsula, but 21 years on the bakery has completed construction of its $2.5 million manufacturing plant in Melbourne.
“As demand has grown, so has the need to increase productivity, along with having to regularly come up with new products,” CEO, Temptation Bakeries, Michael Ratcliff says.
“Things really started to ramp up and we had to keep pace. We knew we had to innovate if we were to be taken seriously for large contracts, but we had the willingness and creativity to think outside the square and come up with our own niche markets.”
Ratcliff says the up-front challenge was to be able to deliver a marked point of difference and maintain that, while the ongoing challenge has been to stay competitive in a country with high costs and low margins.
“We have actually capitalised on the advantages of being small and having the flexibility to bring together timely innovation, technology and business operations aimed at keeping costs down, while at the same time being able to deliver on rapidly shifting market demands,” he says.
“Finding and keeping business for Temptation means constant quality improvement, introducing new products to keep up with the changing demands of supply chain consumers. But that, says Ratcilff, is the advantage in being able to make short production runs profitable.
“Our company’s competitive advantage leverages off the combination of innovative and sustained new product development and a flexible manufacturing culture that expects and welcomes change.
“Running in tandem with all this, is the need to up the ante on our research and development to enable us to convert great ideas into manufacturing reality. This can require considerable investment of time and money.”
“It is a challenge,” says Ratcliff, “with the constant need to introduce new lines, but it helps ensure we stay at the top of our game.
“So continuous improvement isn’t just an industry catch phrase – it’s absolutely vital for us and for that matter, any business deadly serious about what they’re doing”.
Quality assurance has also been integral to their planning and development which has helped grow opportunities for their branded and house branded products and has been at the forefront of the company’s latest expansion.
Manufacturing Plant Upgrade
Last financial year, Temptation produced around 32 million individual products. With the completion of its new $2.5 million plant and expansion of its technological capabilities, the company is aiming to double its output within 3-5 years.
“We now have the capabilities of a complete, high efficiency, test kitchen-to- consumer -ready production line,” Ratcliff explains.
The blueprint included segregated zones aimed at meeting the most stringent quality control standards for manufacture and hygiene.
Separate areas for preparation and post baking are designed for the premium care of products prior to wrapping and packing to ensure sustained quality and freshness. The facilities also accommodate increased storage of finished goods. Overall, it means significant efficiencies in the production, packaging, storage and dispatch all on the one site.
The company employs around 100 people and Ratcliff hopes to be able to recruit more as they progress.
P: (03) 9773 4800
Product Name: NOSHU Guilt Free Donuts
Product Manufacturer: NOSHU Foods Pty Ltd
Ingredients: (Varies between flavours)
Egg, water, chocolate coating (natural sweetener [erythritol], coconut oil, ethically-sourced palm kernel oil, soy flour (non GM), cocoa powder, sunflower lecithin, natural flavour), pumpkin puree, organic coconut, cocoa powder, soy flour (non GM), soluble dietary fibre (polydextrose), baking powder (raising agents 500, 575), vegetable fibre, vegetable glycerine, beetroot, thickener (vegetable gum 412), stevia leaf extract, natural flavours.
Shelf Life: 28 days
Packaging: Individually wrapped 45g, in retail POS box of 12
Product Manager: Rachel Bajada
Brand Website: Noshu.com.au
What the Company says:
NOSHU’s baked, gluten free, no added sugar, naturally sweetened cake donuts are revolutionary guilt-free treats made without grains, seed oils or sugar. Lower carb, completely gluten free and fructose friendly – NOSHU donuts have less carbs, less sugar and more fibre than a medium apple. Ideal for gluten free, lactose intolerance, fructose malabsorption, diabetics, healthy snacking and kids school lunches.