Home' Convenience and Impulse Retailing : August September 2014 Contents 30 August / September 2014 | C&I | www.c -store.com.au
New International Owner for Peters
[ WHITE MILK ]
and Australia’s population ages, at this stage, they still
only account for less than 4% of category sales.
A study by Nature Research a couple of years ago
revealed that milk customers are quite brand loyal,
with 72% of customers buying the same brand. It
is therefore vital that retailers range trusted brands
across core fat segments, with functional milks and
skim milks ‘nice to have’ to round out the range.
When a category is such a proven traffic driver as
white milk, it is potentially disastrous for stores not
to be always well stocked in all core lines. Leading
business-to-business market research company, the
Advantage Group, says that white milk is the number
one category for consumers wanting the freshest
product, and the number one category for shoppers
wanting an in stock position. Lion says white milk
out of stocks are three times more likely to persuade
customers to change consumer behaviour (i.e. change
stores) than in other categories. A disappointed
customer who doesn’t return means lost sales, not
only of white milk, but of many other categories that
he or she may have also purchased.
According to previous him! research, there are two
peak trading times for milk penetration. These are
first thing in the morning and from 4pm-7pm as
shoppers are on their way home. Keeping milk in
stock for the second peak will maximise a store’s sales
while offering true convenience to customers
While supermarkets have a larger proportion of
‘planned’ visits and therefore shoppers often buy larger
volumes and pack sizes, convenience has a higher
proportion of ‘top up’ or ‘emergency ’ shops, and pack
sizes will often be smaller. The top up and emergency
shop account for a high proportion of milk sales and is
an area that convenience stores can capitalise on. While
the two-litre pack is the biggest seller in convenience,
the one-litre pack is ideally suited to the consumer who
wants to pick up milk to ‘get them through’.
Getting the range and stock levels right is only half
the battle for convenience stores seeking to make
the most of the white milk opportunity. Some 20%
of customers in the category can be influenced at
point of purchase, so a clean and clear layout that
consumers can navigate is essential.
Lion says white milk should be located adjacent
to flavoured milk products in impulse fridges to
encourage ‘grab and go’ sales. It also says it is also
crucial that products are clearly price ticketed as
non-priced items are frustrating to shoppers. Price
tickets should be located adjacent to products,
with specials/promotions clearly ticketed at point
A proven way of increasing overall basket size is
bundling white milk with other ‘staple’ products
like bread. This has been one of the key weapons
employed by many petrol and convenience outlets in
an attempt to prevent customers from bypassing them
on the way to the supermarket.
While there can be no doubt that the supermarkets
private label price assault had an impact on white
milk sales though convenience, the category has
also proved itself to be impressively resilient.
The major milk suppliers rely heavily on the
channel to sell their product and it is thanks
to their marketing spend, as well as thoughtful
management at store levels, that white milk
volume has stayed strong. The bottom line is that
Australians love their white milk and they remain
ready to pay a premium to get the brand that they
want – and the convenience their lifestyle demands
at their local convenience store.
Long may it continue.
Convenience and Impulse Retailing would like to
thank Lion, Parmalat and a2 Milk for supplying
information for this article.
›› Is the number 1 category for consumers
wanting the freshest product, and
delivers with 52% of shoppers saying it is
›› Is the number 1 category for shoppers
wanting an in stock position when
shopping for white milk
›› Shoppers are more likely to switch
brands rather than walk out if their
preferred product was unavailable –
Europe’s largest supplier of private label ice cream,
R&R Ice Cream plc, has taken over the Peters Foods
business in Australia.
R&R has acquired Peters, with its portfolio of brands
including Drumstick, Connoisseur, Peters Original and
Maxibon from Pacific Equity Partners, a private equity
company. PEP purchased Peters from Nestlé in 2012.
Since the acquisition, PEP said that Peters has undergone
a significant transformation driven by investment in its
core brands, substantial new product development and
improvement in operating costs. It generates annual sales
in Australia of some $269 million.
Pacific Equity Partners Managing Director, Tony Duthie, said:
“We are pleased that a company of R&R’s pedigree will help
drive the future of the Peters’ business alongside the existing
skilled and committed Australian management team.”
Founded in 1985, R&R is the largest private label ice
cream manufacturer in Europe and the second largest ice
cream manufacturer overall in Europe. Its strong branded
portfolio includes the Mondelez and Nestlé brands
(including Cadbury Dairy Milk, Oreo, Milka, Smarties and
Kit-Kat) as well as brands such as Disney, YooMoo frozen
yogurt and Kelly’s of Cornwall. Revenues for the year
ending 31 December 2013 were A$968 million.
The existing Australian executive leadership team will
continue to develop the Peters business locally and as a
part of the broader global R&R business.
“Peters remains a proudly Australian company
employing around 500 people across Australia,”
Peters Chief Executive Officer, Stephen Audsley, said.
“With the backing of R&R, Peters will continue to invest
in its market leading brands including Drumstick and
Connoisseur and in its long history of innovation.
Manufacturing will continue at our world class facility
in Mulgrave from which we intend to create new
opportunities for growth.”
Leading point of sale and retail merchandising company,
EDA Australasia (EDA), has appointed John Kerby as its
new Chief Operating Officer.
Mr Kerby brings to the role extensive experience in
helping companies navigate successfully through a
period of growth, which EDA is currently undertaking. His
background is primarily in the manufacturing sector having
worked with leading niche corporations including well-
known Australian transport company, Custom Coaches.
Of his appointment Mr Kerby said; I’m delighted to join
such an interesting and dynamic organisation like EDA.
My major focus for EDA is to take advantage of the big
opportunities in the market and expand our product
offering into Asia. We are planning a number of innovative
projects which I’m eager to bring to life.”
Mr Kerby will be responsible for the day-to-day operating
activities of EDA including expanding revenue and sales
growth. He will also play a key role in general HR management
and improving the overall performance of the business.
Managing Director, John Atwill said, “EDA Australasia has
achieved a significant amount of growth over the past few
years. Bringing John in to the team will further facilitate
this growth and enable us to expand into new markets,
categories and brands.”
For more information on EDA visit www.eda.net.au
EDA Australasia appoints New Chief Operating Officer
25/07/2014 10:54 am
Links Archive October November 2014 June July 2014 Navigation Previous Page Next Page