Blenheim’s Annies sells in to Coles

12 September, 2011

Blenheim’s Annies sells in to Coles

South Island food manufacturer Annies Marlborough Limited has secured a substantial foothold in one of Australia’s biggest supermarket chains.

Blenheim-based Annies has shipped a container-load of its popular fruit leathers to Coles supermarkets. Annies’ fruit leathers are made by drying pure fruit pulp.

Ongoing the deal could be worth up to $3m depending on how much Australian household shoppers like the Kiwi product. Annies is also shipping 24-pack boxes of fruit leathers, ranged in the confectionary section of Costco Wholesale.

Two varieties of Annies fruit leathers have hit the shelves in 750 Coles supermarkets across Australia from early this month (Sept.).

Annies managing director Annie Giles says her company’s products have a real point of difference in the Australian market.

“Our fruit leathers are made from real fruit pulp, not from concentrate, and we do not add any preservative, sugar, flavour or anything else. Consumers love our product because it is just fruit, but it doesn’t bruise like fruit does, and it’s super easy to take anywhere,” Ms Giles says.

She says the move in to Coles has been a “real intrepid journey of the commercial kind”.

“It’s been an interesting process because Australian supermarkets have a different approach to those in New Zealand. Here we range in the fresh produce department but Coles wanted us to be in grocery.

“That involved us in a change of packaging but fortunately coincided with a brand refresh in New Zealand so we were able to piggy-back on that if you like,” Ms Giles says.

Annies began working on a strategy with Coles 12 months ago when it first pitched to have five products ranged in the company’s supermarkets. A second pitch in February this year resulted in Coles accepting apricot and berryfruit eight-pack varieties for stocking nation-wide in Australia.

“We’re confident Australian consumers will like Annies because our ‘real fruit’ point of difference distinguishes us from our major competitors,” Ms Giles says. “As it is in New Zealand, Australian consumers are increasingly more health conscious – with more people actually reading the ingredients list on the pack.

“You’re only as good as the space you occupy and the product you move and nothing’s guaranteed in terms of ongoing sales.”

Even before the Coles sale, Annies Marlborough Limited had been in a growth phase.

“Partly in anticipation of the Coles ranging we had expanded our production facilities adding extra contract staff to meet seasonal demand and we had also bolstered our drying capacity with new machines,” Ms Giles says.

While the Coles sale is not Annies’ first foray in to the competitive Australian market, Ms Giles says it is by far the most significant.

“Coles is huge and has the second largest market share in Australia. It has stores in every state capital and has more than 11 million customer transactions every week. The company employs more than 100,000 people so this deal represents great visibility for the Annies brand across the Tasman.”

Ms Giles says Annies has also been ranged in the Melbourne Costco store for 18 months.
“Costco has recently expanded, opening big stores in Sydney and Canberra and Annies has been selected for those stores based on our sales performance in Melbourne.

“We have a very solid base in Australia now and with consumers there following the trend towards healthy eating I’m picking Annies has a good thing going across the Tasman.”

ENDS

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