Strategic Collaboration and Diversificationfor Business Sustainability

Phil SimsChief Executive Officer

Commenced 1908 – 4th Generation Family Business

Robern – Fruit – Dried, Glace, Canned, Dehydrated

Menz – Confectionery & Biscuits since 1850 acquired in 1992

Menz FruChocs – 2005 Official SA Icon (National Trust)

Niche Player – Global Confectionery and Fruit Snacks market

Dominated by multi-national brands

Growth of globalisation and private label

Retail Market concentration

Manufacturing in Australia – increasing cost base

Market Position....

Avoid commoditisation

Point of difference – S.C.A.

Build brands – niche market strategy

Spread risk

Diversify – new market & product channels

Localisation

Collaborate – cross promotional opportunities & co-manufacturing

Build supplier partnerships with in Australia & Overseas

Remain Sustainable ....

Brand Building ....

Bring the brand front of mind with consumers

Develop strategic partnerships to leverage each others strengths

Promote ‘local’ and ‘community’

Build network of fans – Personal/Celebrity endorsement & engagement

Have fun with the brand

Cross Promotions / Partnerships include:

Golden North ~ Menz FruChocs IceCream

Foodland/Little Heroes ~ Jelly Confectionery

Partnerships ....

Partnerships .... Cross Promotions / Partnerships include:

Kytons ~ FruChoc Hot Cross Bun

- Diversification

- Multiple revenue streams

Sunrise – Hot Cross Bun

Partnerships ....

Channel 9 Telethon, Wallis Cinemas ~ Take 9 Card

- Localisation

- Strategic – Cinema experience

Partnerships ....

Prostate Cancer Foundation - Channel 9 – Triple M

- 4 way Partnership- Celebrity endorsement- PCFA – Awareness ‘Men to get tested’

Social Media .... Facebook

34,000 Fans – 80% SA Based – 20% Expats

Social Media ....

Twitter- 2397 followers- Market research & communication- Personality engagement

Celebrity Endorsement ....

Dick Smith – FruChocs Hot Cross Bun

Eddie McGuire

Fitzy & Shaun Micallef

Community Engagement .... Mr FruChoc

Twenty20 Cricket – Adelaide Oval Dubai – Crows v Collingwood

Zac Efron – Hollywood Premier ‘The Lucky One’

SAFM’s GIANT FruChocs Ball

Diversification ....

3 Shops, 1 licensee, online, pop up

SA Focus – leverage iconic brand strength

Tourist retail model

Diversification ....

Co Manufacturing focus

Built our capabilities, capacity & business systems

2 way strategic advantages

Identify & Specialise in what your good at – S.C.A.

Out Source partnerships – upstream & downstream

Avoid commoditisation

Point of difference – S.C.A.

Build brands – niche market strategy

Spread risk

Diversify – new market & product channels

Specialise vs generalise

Collaborate – cross promotional opportunities & co-manufacturing

Remain Sustainable ....

Thank you