Arnott’s launches new group structure and strategy

Arnott’s has marked an important milestone, launching a new corporate brand identity that unites its family of leading consumer food brands. The Arnott’s Group has been introduced to employees and stakeholders, celebrating the company’s rich history and bright future.

The launch of the new corporate brand coincided with Arnott’s strongest financial performance in recent years and the first since the sale of the business to investment firm, KKR, in December 2019.

This signifies a new chapter for the business as The Arnott’s Group sets its sights on building a regional powerhouse of consumer food brands, based in and run from Australia.

The identity is designed to express this next generation of the business by capturing its proud history, including the vibrant colours of the parrot which is one of the most recognisable brand symbols in Australia.

Arnott’s legacy as one of Australia’s oldest and most trusted brands will help drive a business strategy that emphasises food quality, local sourcing, and community trust.

The new corporate identity is not consumer facing, and there is no change to the Arnott’s logo that is currently on Australians’ favourite packet of biscuits.

“We have a fantastic legacy, a strong business and a plan for growth by building a world-leading group of businesses from right here in Australia,” said Arnott’s Group CEO, George Zoghbi.

“Across Australia, we work with the farmers who harvest our wheat, the bakers and chefs who bring our biscuits, soups and snacks to life and our partners who keep grocery shelves stocked so Aussies can always find their favourite brands in store. We have a responsibility to continue that legacy for many generations to come.”

The Arnott’s Group finished FY20 in a strong financial position in part as lockdown restrictions across the country led to more people cooking and snacking at home.

Over March-June 2020, an extra 4 million packs of chocolate biscuits, an additional 2 million cans of soup, an extra 2.7 million packs of stock and 1 million more bottles and packs of V8 Juice were purchased by consumers.

Sales grew by 6per cent from the previous year on the back of increases in Australia, New Zealand, Malaysia, Japan and Hong Kong and, through growth in exports from its Australian facilities.

Key performers included Tim Tams (270 million individual biscuits sold), Campbell’s soups products (over 5 million units sold) and V8 juice bottles and packs (nearly 3.5 million sold).

COVID-19 related supply chain constraints led to production cost increases of approximately 6 per cent in the last financial year, which the company worked to offset through a program of efficiency measures.

Despite unprecedented pressure on many suppliers due to COVID-19 and the summer bushfires, the company purchased over $110 million in fresh ingredients from Australian and New Zealand farmers.

Over 72,000 tonnes of Australian flour, 23,000 tonnes of Australian sugar and 4,400 tonnes of Australian and New Zealand-made dairy products came into our baking and cooking facilities.

In addition, The Arnott’s Group uses RSPCA-approved cage free eggs, last year purchasing the equivalent of over 10 million eggs. It purchased 489 tonnes of UTZ-certified cocoa products, supporting sustainable and socially responsible cocoa production worldwide. Its food is only made with RSPO-certified palm oil products.

In FY20 the business also invested AUD 66.4 million in new infrastructure, including a state-of-the-art 4-acre warehouse at Huntingwood in Sydney’s west, which will be completed early in 2021.

Over the next three years, The Arnott’s Group will expand its reach across key geographies in Asia Pacific to become a leading regional consumer food business.

From its headquarters in Sydney, The Arnott’s Group will invest in key Asian markets. In Australia and New Zealand, its focus will be on growth in existing biscuits business, delivering an efficient meals and beverages business and, addressing gaps in key snack food categories.

Arnott’s takes a bite out of possible Tim Tam super-stores

Whilst participating in a price war with supermarket giant Coles, Arnott’s has been seeking to promote its top Tim Tam product with a foray into building a standalone store.

With almost 3,000 biscuits made every minute, Arnott’s clearly have a loyal customer base as Australians eat approximately 670 million Tim Tams per year.

According to Tim Tam Marketing Manager Claire Kesby-Smith, despite the fact that there are twelve different varieties of Tim Tams, the original flavour is still the most popular.

“In the last few years, we’ve brought Tim Tam trees to Martin Place, a Tim Tam plane to remote Central QLD, a bus delivering Tim Tam packs to regional towns and collaboration with Adriano Zumbo, Australia’s foremost patissier, to supermarket shelves across the nation,” Kesby-Smith said.

“A standalone Tim Tam store sounds like something we should investigate! Perhaps a place with chocolate waterfalls and a never-ending pack of Tim Tam bikkies for sharing!”

There is good precedence for flagship stores becoming a major part of product marketing in the internet era. While fewer physical outlets are required close to people’s homes, one major destination store is often retained as a tangible reminder of the brand’s presence.

M&Ms may provide Tim Tams with a positive source of inspiration. M&M’s have flagship stores all over the world which act as both a sales outlet and a theme park. The intent is to make the product as unique as possible, where visiting the outlet is an once-in-a-lifetime opportunity to browse through all twelve varieties of Tim Tam flavours.

A Tim Tam store, as Kesby-Smith suggests could be a great source of community enjoyment where consumers can demonstrate the art of the Tim Tam Slam with one another as Tim Tam cake is readily served.