Patties Food Ltd Essay Example for Free

Patties Food Ltd Essay A  leading manufacturer in Australia Industry: branded frozen food industry Major supplier and marketer of frozen savoury, dessert and fruit products. It has some iconic Australia brands in each of these product categories. the largest pie company in Australia Products: frozen savoury products: meat pies, sausage rolls, cheese and spinach rolls, pasties and quiches. Well-known frozen savoury brands: Herbert Adams, Four’N Twenty, Snowy River and Wedgewood. dessert products: fruit pies, waffles, crumbles and crepes. fruit products: frozen whole fruits (e. g. herries, strawberries, cranberries and raspberries) processed fruit products (e. g. fruit smoothies that are cubes of frozen concentrated fruit which can be added to milk by the consumer to create a drink). Well-known dessert and fruit product brands: Creative Gourmet, Nanna’s and Chef’s Pride. Growth History: a small cake shop in the Victorian country town of Lakes Entrance (origins back 50 years). then purchased in 1966 by the Rijs family extended into pies and bread rolls continued to grow (through acquisition product development) Subsequently refocused around frozen savoury, dessert fruit products Listed on the ASX in 2006. Stakeholders: 2 members of Rijs family involved as board members. Shareholders Customers: retailers (e. g. supermarkets) foodservice outlets (e. g. sporting venues or cafes). Not direct consumers. 2 main distribution: In-Home [retailers where products are bought for home consumption] Out-of-Home [foodservice outlets where products are bought ready for consumption]. lt; 1% sales coming from exports, despite moves to enter the US market with its Four’N Twenty products. Developed halal products in its Four’N Twenty range with the intention of growing sales in Asia. Its headquarters production facilities are in Bairnsdale, Victoria. A PFL’s strategic framework PhasesBuild the baseDevelop and growExpand and extend Outcomes†¢ Low costs †¢ High customer service levels †¢ Defend the core †¢ Category leadership†¢ New products †¢ Extra ranging †¢ Extra distribution †¢ More customers†¢ New channels †¢ New regions †¢ New categories †¢ New sub-business Executive leadership team focused effort on the ‘Build the Base’ phase of our strategic plan, relentless drive to build revenue reduce factory conversion costs Result: -improved trading Rebuilt market share in In-Home savoury category(important) Result: revenue increasing well over the category growth. Our strong relationships with the major supermarkets Result: enabled Patties’ brands to strengthen as market leaders. Strategic intent of increasing our mix of revenue towards foodservice other non-grocery channels [products sold through the Out-of-Home market]. Result: Out-of-Home revenue increased to another record level Sales management restructured with a new Head of Sales (Tim Peters ex Fonterra) joining the business. Investment in sales resources in all regions of Australia ensures we have a truly national representation. New products, across all channels Result: increased sales Exceptional technical expertise (due to well experienced Rijs Family) Result: enabled the new products to be launched with rapid entry to market New Four’N Twenty legendary Angus range developed and taken to commercialization stage during the year with the successful launch in June 2010. We expect this range to provide further growth in the near term. Increased marketing for the premium range of Herbert Adams savoury products. significant lift in sales in both In-Home and Out-of-Home channels achieved from the new TV commercial and consumer promotion celebrating Herbert Adams 100 years. Four’N Twenty brand increased exposure with the sponsorship of the AFL [national league] All Australian Football team. This initiative, and the successful tendering of a number of additional stadium supply rights, provided good growth in our core pie range and confirmed Four’N Twenty’s close connection with football in Australia. Patties Foods now has exclusive supply rights at most football stadia in Australia. Desserts business continues to grow with Nanna’s and Creative Gourmet brands retaining market leadership. lowered cost base and ensured the Creative Gourmet business can remain competitive in a very competitive market. (closed and relocated the frozen fruit packing operation from Silverwater NSW to Bairnsdale [in Victoria] in Feb. ) Manufacturing efficiencies are a critical driver of profitability. increased the economies of scale from the investment in production capacity during the year, further developed our team based continuous improvement projects. Thus conversion costs continued to improve A critical factor in our short and long term strategic plans: to maintain and build the high performance culture of the company. Introduced a comprehensive incentive scheme across the business this year. 340 people received monetary incentives based on specific targeted key performance indicators across the business. Balance sheet has been strengthened by the strong cash flow from both the improved trading and focused working capital management. This provides an excellent foundation for growth. Recent developments Patties Foods wins Reliance contract for BP sites won a $4. m+ contract to supply its products to the 200 BP branded sites in the Reliance Petroleum Group. The convenience stores will stock exclusively Four’N Twenty and Herbert Adams products. In announcing the contract, Reliance commented, ‘Patties have proven they are best positioned to build our Pie Sausage Roll business through strong marketing activity, excellent cost price and most importantly, a good pie! ’ Patties Foods Head of Sales, Tim Peters, says the contract win confirms Patties Foods’ market leadership in the Petrol and Convenience Channel. Creative Gourmet targets ‘Smoothie’ market Creative Gourmet’s innovative new range of Smoothie CubesTM proving a big hit with consumers. Launched in March with a national Television commercial featuring food presenter Maeve O’Meara, the new frozen Smoothie CubesTM are available at all leading supermarkets. Desserts Marketing Manager, Jane Westney, describes Smoothie CubesTM as a ‘game changer’, set to revolutionise how Australians enjoy breakfast and snack-time. ‘Smoothie CubesTM fruit-packed frozen cubes for making delicious Smoothies in a moment. a product innovation rated extremely highly in market testing. We’re confident they’re set to change the way Australians enjoy breakfast and snack-time’, Ms Westney said. The innovative Smoothie CubesTM come in 4 great flavours, Strawberry, Berry Antioxidant, Breakfast and Tropical. Look out for them in your local Supermarket. Four’N Twenty rules—Home and Away Four’N Twenty extended its national marketing push into northern States with a 5-year sponsorship agreement with the Sydney Swans [football team]. Patties Foods GM Marketing, Mark Connolly said: Four’N Twenty achieved instant popularity with Sydney fans since becoming the pie of choice served at the SCG [sports stadium] last year. ‘Sydney fans have really taken to Four’N Twenty at the footy and we’re delighted to be partnering with the Swans through this sponsorship—not only at the SCG, but by focusing on their positive community program.