TOP AUSTRALIAN FOOD November – December 2013 – December November 100 & DRINK COMPANIES www.foodanddrinkbusiness.com.au PRINT POST APPROVED 100005338 Head Office Melbourne Office 115181 PresidentWelshpool Street, Road, Welshpool WA 26Suite Goodyear 7, Level Drive2, 541 Blackburn Rd ph: +61 (08) 9451 7300 ThomastownMount Waverly VIC VIC 3074 www.tfggroup.com.au ph: +61 (03) 94648588 50551133/4 Untitled-5c11420 TFG 1 ad_v2.indd 1 3/11/1131/10/13 9:58:02 2:56 AMPM contents November / December 2013 Editor Amanda Bryan FEATURES [email protected] 48 Year in Review 25 Advertising Sales Manager A look back over the last 12 months Australia’s Carol Ewing at the big news stories, the top job 0419 109 414 [email protected] appointments and some of the best new products to roll off the Advertising Production Manager production line. Michelle Carneiro PAGE 06 (02) 9213 8219 [email protected] 62 New Zealand Report NZ dairy update; Barker’s TOP SUBSCRIPTIONS enters Australian syrups www.greatmagazines.com.au space; Sanitarium rebuilds Call: 1800 807760 after NZ earthquake; Milmeq Email: [email protected] wins AACo contract; Water SUBSCRIPTION RATES Buddies scoops awards. 1 year $99.00 2 year $178.20 News 3 year $237.60 1 year (overseas) NZ A$110 PAGE 22 06 State of the Industry: ASIA A$125 ROW A$170 AFGC report encouraging 08 Simplot plants saved for now food & drink companies 2013 Publisher 08 Heinz consolidates Lindy Hughson Golden Circle operation 08 McCain shuts SA site Subscription Manager 09 WCB takeover battle gathers pace Martin Phillpott 10 Vegemite celebrates 90th birthday Marketing Manager 10 Beverages: innovation critical Chris Hamilton 10 Sweet returns for stevia PLUS 25 Top 100 Australian Circulation Manager SPONSORED BY Lamya Sadi PAGE 64 Regulars food and drink companies 04 Comment Our annual report, produced in Group Production Manager 12 Packaging collaboration with IBISWorld, is an Matthew Gunn 18 Branding indispensable who’s who of the food 20 Exports and beverage industry. The report Studio Manager 22 Ingredients is sponsored by Oppenheimer Caroline Milne 68 Sustainability and provides key information such Art Director 70 Product News as annual sales figures and the Ana Maria Heraud 72 New In Store latest manoeuvres by the biggest 74 Retail Wrap food and drink businesses operating Designer in the country. Bree Edgar PAGE 73 Food&Drink Business is published by Yaffa Publishing Group Pty Ltd top AustrAliAn food & drink compAnies 2013 – December November ABN 54 002 699 354 100 www.foodanddrinkbusiness.com.au 17-21 Bellevue Street, Surry Hills NSW 2010. Tel: (02) 9281 2333 print post approved 100005338 Fax: (02) 9281 2750 Front Cover All mail to: At Oppenheimer, we pride ourselves on our ability to GPO Box 606, respond to our clients’ business by providing Sydney NSW 2001 innovative and adaptive solutions that exceed their expectations backed by unbeaten commitment to service. With operations in Australia, New Zealand, India and China and global alliances with some of the SPECIAL OFFFER world’s most recognisable brands, Oppenheimer is now one of the industry leaders in providing innovative solutions for global food services. For further enquiries please contact +61 2 9748 3111 or [email protected] F&D Nov-Dec cover 2013.indd 1 13/11/13 9:38 AM 4 comment The big picture AS 2013 DRAWS to a close, this analyst, Emily Witham says (see story below). The takeover battle for Warrnambool Cheese issue of Food & Drink Business The Australian Food and Grocery Council has and Butter (WCB) could either further this objec- takes a good look at the year also provided also some pre-Christmas cheer in its tive with the creation of a new national dairy that was in Australia’s food recently released State of the Industry 2013 report. It powerhouse well positioned to reap these emerg- and beverage industry. Here, found that food and beverage exports increased by ing opportunities, or, if the Canadian group Sa- though, I’d like to take a peek 3.4 per cent from $18.2 billion to $18.8 billion in 2012- puto emerges victorious, we could see our dairy into the future to see what it 13, indicating the long-term strength of the sector. industry controlled by multinational companies, holds, and it turns out it’s not According to the report, this increase illus - as is occuring in the grain industry. looking too bad. trates improvement in the industry’s global com- First world problem? Actually no. Given the A highlight of this issue is our Top petitiveness and its ability to meet the demand looming issue of worldwide food shortages, 100 Australian food and drink companies report, for food and grocery products in Asia. the strength of Australia’s food and beverage which ranks the largest food and beverage com- Also encouragingly, the dairy product manu- exports has much broader implications for panies by size and provides a snapshot of their facturing sector led the industry on R&D, invest- global health. sales and their latest strategic moves. ing a combined $108 million in 2011-12, according According to IBISWorld, our collaborator on to the report. the Top 100, this year’s report shows just how These figures also help illustrate the fact that resilient some of our largest companies are. The Australia’s dairy processing industry is currently top 10 companies in particular have weathered at a critical juncture. In order to meet rising de- the tough manufacturing conditions and they mand for value-added products in Asia, it needs did this by boosting automation and efficiency to quickly scale up its export capabilities, just as and by adapting to changing consumer trends New Zealand’s industry did over the last decade Amanda Bryan through innovation, IBISWorld senior industry (see our NZ dairy round-up on page 62). Editor Australia’s Australia’s Top 100 TOP food and drink businesses revealed food & drink companies 2013 FOOD & DRINK Business has revealed the top Witham says beef processors have become 100 food and drink companies operating in Aus- more vertically integrated over the past five tralia in 2013 as we wrap up another action- years, gaining greater control of the supply chain SPONSORED BY packed year for the industry. and taking advantage of economies of scale. This year we saw companies ramp up their The dairy industry has also undergone product innovation efforts, expand into new ex- change, she says. “Companies are now focusing Dairy co-operative Murray Goulburn and port territory, and for those undertaking plant on exports, and this is a key area for growth Nestlé each rose a spot but swapped positions, upgrades, energy efficiency became a key focus. and development.” coming in at number six and seven respectively, According to IBISWorld, a collaborater on the These types of trends have in turn influenced the with only the former boosting sales. report, many of Australia’s largest food and bev- rankings of top 10 companies that lead this year’s Goodman Fielder returned to this year’s top erage companies also expanded the breadth of Top 100 Australian food and drink companies. 10, while George Weston Foods dropped down to their operations and diversified their product The world’s largest dairy exporter, Fonterra 11th spot. Fosters also exited the top 10, largely lines to capture new markets. Co-operative Group, stayed in number one spot due to a change in reporting period. “Looking at the top 10 in particular, many in the Top 100, despite seeing its sales falling to Witham also noted another key trend: a sig- have restructured the way they manufacture, $18.7 billion in the 2013 financial year, down from nificant increase in acquisitions among the top and increased the level of automation through $19.9 billion in the previous year. 20 companies, with many entering foreign own- the use of new technology, which has in turn in- Coca-Cola Amatil ousted dairy and alcohol gi- ership. She points to Fonterra’s acquisition of creased in efficiency and reduced labour costs,” ant Lion from the number two spot after boost- Tamar Valley Dairy and Lion’s 9.9 per cent share Emily Witham, senior industry analyst with ing its revenues. Meat company JBS Australia in Warrnambool Cheese & Butter as examples. IBISWorld, says. was joined in the top 10 by two others from the The driving force behind the trend is vertical “All of these top companies have also respond- meat and poultry sector: beef company Teys Aus- integration, Witham says. “It means they can use ed really well to market change with innovation, tralia, which rose from 13th spot, and poultry economies of scale to reduce cost and that’s been whether that be the introduction of new flavours producer and processor, Inghams Enterprises, a prominent trend.” or the inclusion of organic or fair trade lines.” which was previously in 11th spot. Where does your business rank? Food&Drink business | November / December 2013 REGISTRATIONS ARE NOW OPEN! Register at foodproexh.com using priority code DRINK1 foodpro, THE EVENT for the food manufacturing industry, is coming to KEY STAT Melbourne for the very first time in 2014! 84% of visitors foodpro has been helping the food processing and manufacturing to foodpro 2011 industry do business since the 1960s and is Asia Pacific’s major thought that food manufacturing event. This is your opportunity to make new foodpro kept them connections and learn how to gain an industry edge in innovation, up-to-date with profitability and sustainability. the food industry developments and trends.* *foodpro 2011 post show REGISTER NOW! report. foodproexh.com Co-located with the 47th Australian Institute of Food Science and Technology conference 6 news State of the industry report: top hits THE MOST VIEWED STORIES ON FOODANDDRINKBUSINESS.