Arnott’s strong results for fiscal 2020 provide clear evidence of this year’s unprecedented trend of consumers returning to the brands they know and trust during the uncertainty and stress of COVID-19.
From March to June, it recorded incremental sales of four million packets of chocolate chip cookies, two million cans of soup, 2.7 million packets of stock and one million additional units of V8 Juice.
If there wasn’t enough evidence of the nation’s somber mood during a pandemic, then the 270 million Tim Tams sold in Australia is a good indication.
For Arnott’s Group’s new CEO, George Zoghbi, it’s a solid foundation for future growth and also a reflection on the company’s heritage as one of the oldest brands around. and most trusted in Australia.
He replaced interim CEO Brian Driscoll, who is also chairman of the board of investment firm KKR, which bought the company last December from Campbell Soup Company. KKR paid $2.2 billion for most of Campbell’s international operations, including Arnott’s.
Best financial performance “in years”
The company reported 6% year-over-year sales growth, largely due to the COVID-19 lockdown restrictions which saw more people cooking at home and many more snacks across the board. world.
Growth in export markets – New Zealand, Malaysia, Japan and Hong Kong also played a role.
Zoghbi said supply chain constraints related to COVID-19 caused production costs to increase by around 6%, but were offset by efficiency measures.
Zoghbi said the company aims to make the group a regional powerhouse of mainstream food brands.
“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 company.
“From our headquarters in Sydney, The Arnott’s Group will invest in key Asian markets; our ‘Tim Tam takeover’ will accelerate the growth of cookies, snacks, soups and meals in certain geographies,” he said.
The company also invested $66.4 million in new infrastructure to modernize its bakery facilities in Australia.
New visual identity
The new identity – The Arnott’s Group – and a refreshed corporate logo were also released, as part of its strategy to grow the company into a multinational consumer food company across Asia-Pacific.
Arnott’s said the new logo was designed to express this new generation of the business by capturing its proud history, including the vibrant colors of the parrot which is one of Australia’s most recognizable brand symbols.
The new corporate identity is not aimed at consumers, and Arnott’s logo on its cookies remains unchanged.
Zoghbi said its regional growth will be based on the company’s history, recognizing its privilege of being a locally run business with local ingredients and Australian authenticity.
“Despite unprecedented pressure on many suppliers due to COVID-19 and summer bushfires, we sourced over $110 million worth of fresh ingredients from farmers in Australia and New Zealand.
“Over 72,000 tonnes of Australian flour, 23,000 tonnes of Australian sugar and 4,400 tonnes of dairy products made in Australia and New Zealand entered our baking and kitchen facilities.
The group uses RSPCA-approved cage-free eggs and used more than 10 million eggs last year.
Zoghbi said he used 489 tonnes of UTZ certified cocoa products to support sustainable and socially responsible cocoa production around the world. It also only uses RSPO certified palm oil products.
“Across Australia, we work with the farmers who harvest our wheat, the bakers and chefs who bring our cookies, soups and snacks to life and our partners who keep grocery store shelves stocked so Australians can always find their favorite brands in store. We have a responsibility to carry on this legacy for many generations to come.”
“A big part of our strategy will be to invest in our people and our products while minimizing our environmental impact and supporting the communities in which we operate,” he said.