Ray Rust Managing Director - Australian Nut Industry Council

Ray Rust
Managing Director
Ray Rust
Owner & Managing Director, The Gourmet Nut Company
Ray Rust is the owner and Managing Director of The Gourmet Nut Company, which specialises in
producing premium quality coated nuts. Ray has been involved in consumer brands for over 20 years
with companies such as Gillette, Officeworks, Sancella and SCA in Sweden where he was Global
Category Director in their Personal Care Division. Since returning to Australia and purchasing The
Gourmet Nut Company, his focus has been on developing new exciting products in the nut industry.
More recently, The Gourmet Nut Company has focused on exotic flavours to drive category
development. Flavours such as French Vanilla, Tiramisu, Canadian Maple & Thai Sweet Chilli are
certainly starting to impact growth with retailers throughout the region.
A Quick Snapshot
• Established in 1998
• Great concept & solid ‘basic’ process
• Honey coating
• Acquired the company 2007
• Major Focus on Quality – process & product
• Significant investment in machinery
• Innovation top priority
• Today
•
•
•
•
14 active flavours & 8 currently in development
Supplying all major Australian retailers
Supplying many Industrial customers
Exporting to at least 6 SE Asian countries
Nut Coating Specialists
Product Benefits
Cholesterol Free
Gluten Free
All Natural Ingredients
No oil used in roasting process
Where possible we use only Australian ingredients
No clumping/sticking
……………………..…..and a great taste!!
Types & Sizes
• From a 2mm sesame seed to a large macadamia and
everything in-between.
• Slivered, Sliced, Diced, Granulated or Whole. Just about
any shape you could want.
• Extremely adaptable
NUTS
Almond
Cashew
Hazelnuts
Macadamia
Peanuts
Pecans
Pistachios
SEEDS
Pepita
Sesame Seeds
Chick Peas
OTHER
Coffee Beans
Cocoa Nibs
Goji Berries
Rolled Oats
Popcorn
Exotic Flavours Inspired
by Exotic Locations
Canadian
Maple
French
Vanilla
Indian
Chai
English
Toffee
?
Japanese
Wasabi
?
?
Mexican
Salsa
Colombian
Espresso
Italian
Tiramisu
Portugese
Peri Peri
?
Moroccan
Spice
?
Australian
Lemon Myrtle
?
Thai
Sweet Chilli
New Zealand
Manuka Honey
… and Award Winning
Flavours.
Driving Category Growth
Through Innovation
Key trends that will shape the market
- & drive innovation & growth
Ethical/
Environmental
Provenance
Health/
Wellbeing
Ethnicity in search of
adventure
Portion
Control
New World
Foods
The Constant
Diet
Indulgence/
Pleasure
Water
Specialising
the Ordinary
Retro
Eating
Affordable
Premiumisation
Source: http:euromonitor.com/Top_food_trends & hhpt:/toptrends.nowandnext.com
Brands that can deliver on at least 2 (or more) of these are most likely to succeed
Key trends that will shape the market
- & drive innovation & growth
Ethical/
Environmental
Provenance
Health/
Wellbeing
Ethnicity in search of
adventure
Portion
Control
New World
Foods
The Constant
Diet
Indulgence/
Pleasure
Water
Specialising
the Ordinary
Retro
Eating
Affordable
Premiumisation
Source: http:euromonitor.com/Top_food_trends & hhpt:/toptrends.nowandnext.com
Brands that can deliver on at least 2 (or more) of these are most likely to succeed
Premiumisation trend….
• Consumer ‘trade-up’ to premium products is clear across a lot of
categories and this is the key foundation for category growth
Year on Year
Value % change
“Premium” sector Value share
of Total Category
Chilled Pizza
20
Soft Drinks
21
Biscuits
20
Cereals
6
Olive Oil
Cheese
5
Yogurt
Total Category
19
5
Cereals
Premium Sector
3
Olive Oil
36
1
10
3
5
Ice Cream
15
5
4
6
Chilled Ready Meals
54
Crisps & Snacks
12
Cheese
17
Chilled Sausages
Haircare
7
8
Bread
Ice Cream
Chilled Ready Meals
5
4
6
Biscuits
Bread
7
3
Soft Drinks
7
Yogurt
11
11
Chilled Pizza
26
16
Source: Nielsen Scantrack Total Coverage
52 w/e 30th December 2009 vs 52 w/e 2th December 2010
7
Chilled Sausages
11
5
Crisps & Snacks
Haircare
1
3
8
Potato Chips
Basic
• Basic flavours
- salt & vinegar
$2.99 for 185g
$16.16/kg
Basic but Improved
(sunflower oil)
Gourmet & emotional
(deli inspired)
• Jazzed up names for
basic flavours
- rock salt & …..
• Gourmet flavour
combinations
- dijon mustard & honey
$3.69 for 185g
$3.99 for 185g
$19.95/kg
$ 21.57/kg
Snack Biscuits
Basic
•Basic flavours
- bbq
- cheese & onion
- chicken
$2.60 for 180g
$14.44/kg
Gourmet
Emotional Appeal
•Gourmet Flavour assortment
- sea salt
- honey & soy
- lime & black pepper
- dijon mustard & honey
$2.78 for 180g
$3.79 for 220g
$ 15.44/kg
$ 17.22/kg
Pasta Sauce
Basic
Alternate usage
Gourmet & Alternate Use
• Interesting flavours
•
$2.98 for 575g
• Interesting flavours
• Increase repertoire
•
$3.69 for 575g
$5.18/kg
$6.42/kg
$3.88 for 350g
$ 11.08/kg
Tea
Basic
$5.99 for 100
$5.99/100 bags
Classics
$10.09 for 100
$10.09/100 bags
Origins
Gourmet
• Sophisticated
• Exotic blends link to
exotic locations
•
$1.73 for 10
• Infused flavour combinations
• Taking tea beyond tea
• Increase usage & repertoire
$17.30/100 bags
$1.99 for 10
$ 19.90/100 bags
Why not with NUTS ?!
Share of Shelf
Category
Retailer Brand(s)
Share of Space
Pasta
Pasta Sauces
Tomato Paste
Chocolate Blocks
Tea
Chips
Dried Fruit & Nuts
10%
15%
25%
10%
< 5%
15%
15%
Snack Nuts
55% (incl Housebrand)
Retailer Brand space allocation in Snacks Category is one of the largest in the store
A reflection of lack on innovation in the category?
Retailer Pricing vs Main
Proprietory Brand
Category
Main Brand
Retailer Brand
RB
% of
Brand
Chocolate Blocks
Cadbury Dairy Milk 200g
$4.47  $22.35/kg
RBDairy Milk 200g
$2.85  $14.25/kg
64%
Pasta
San Remo Spaghetti 500g
$2.25  $4.50/kg
RB Fettuccini 500g
$1.29  $2.58/kg
57%
Tomato Paste
Leggo’s Tomato Paste 500g
$3.45  $6.99/kg
RB Tomato Paste 500g
$2.49  $4.80/kg
69%
Snack Nuts
Nobby’s R&S Cashews 375g
$8.59  $22.91/kg
RB R&S Cashews 300g
$7.79  $25.97/kg
113%
Retailer Brand Price vs Main Brand in Nuts is high relative to other categories.
Suggesting opportunity to drive category value
Retailer Nut Ranging
Peanuts
–
–
–
–
Retailer Brand Salted 300g
Nobby’s Salted 375g
Housebrand Salted 500g
Retailer Brand Unsalted 300g
– 4 facings
– 4 facings
– 6 facings
– 3 facings
Peanuts
14 facings x Salted
3 facings x Unsalted
– 3 facings
– 3 facings
– 3 facings
– 2 facings
– 3 facings
Cashews
11 facings x Salted
3 facings x Unsalted
Cashews
–
–
–
–
–
Retailer Brand Salted 300g
Retailer Brand Salted 150g
Nobby’s Salted 375g
Mother Earth Salted 150g (Amore)
Retailer Brand Unsalted 150g
Almonds
–
Mother Earth 150g
– 2 facings
Mixed Nuts
–
–
–
–
–
–
Retailer Brand Salted 300g
Nobby’s Salted 375g
Mother Earth Salted
Housebrand Salted 500g
Retailer Brand Unsalted 300g
Mother Earth Unsalted 150g
– 7 facings
– 7 facings
– 4 facings
– 4 facings
– 4 facings
– 2 facings
Retailer Brand Macadamia 150g
Retailer Brand Pistachio 150g
- 4 facings
- 4 facings
Others
–
–
Mixed Nuts
22 facings x Salted
6 facings x Unsalted
Snack Nuts Category
High Value (Premiumisation)
Macadamia
Pistachio
OPPORTUNITY
Almonds
Cashews
Hi Olec Peanuts
Salted & Unsalted
Raw
Mother Earth
Nobby’s
(Amore)
Retailer Brand
Housebrand
Chinese Peanuts
Low Value (Commodity)
NUT TYPE
STYLE
BRAND
Driving repertoire is a
proven category driver..
Mainstream
• Low Growth
• Value Decline
• Low Innovation
• High Penetration
• High Price Sensitivity
Premium Niche
• High Growth
• High Value
• High Innovation
• Low Penetration
• Low Price Sensitivity
?
Key trends that will
shape the market
Ethical/
Environmental
Provenance
Health/
Wellbeing
Ethnicity in search of
adventure
Portion
Control
New World
Foods
The Constant
Diet
Indulgence/
Pleasure
Water
Specialising
the Ordinary
Retro
Eating
Affordable
Premiumisation
Source: http:euromonitor.com/Top_food_trends & hhpt:/toptrends.nowandnext.com
Brands that can deliver on at least 2 (or more) of these are most likely to succeed
TGNC delivers on 5 Key
Trends
Ethical/
Environmental
Provenance
Health/
Wellbeing
Ethnicity in search of
adventure
Portion
Control
New World
Foods
The Constant
Diet
Indulgence/
Pleasure
Water
Specialising
the Ordinary
Retro
Eating
Affordable
Premiumisation
Source: http:euromonitor.com/Top_food_trends & hhpt:/toptrends.nowandnext.com
Brands that can deliver on at least 2 (or more) of these are most likely to succeed
TGNC - Definitely on Trend
Health/
Wellbeing
Specialising
the Ordinary
Nuts are already
seen as a healthy
snack.
Specialising the
commoditised salted
& unsalted nut.
TGNC Coated Nuts:
• Gluten Free
• Cholesterol Free
• No Oil Added
• Natural Ingredients
Lifting the humble
cashew and almond
into an aspirational
space.
Indulgence/
Pleasure
Maybe not a snack
for everybody every
day, but definitely an
indulgent snack, or
an accompaniment
to lift the humble
platter.
Affordable
Premiumisation
Ethnicity in search of
adventure
TGNC Coated Nuts
pricing strategy is
within reach of the
mass market.
Linking the flavour
profiles to exotic
destinations around
the world.
Tapping into already
growing taste trends
evident in many
existing categories
• Thai Sweet Chilli
• Mexican Salsa
• NZ Manuka Honey
• etc
Permiumisation of the Nut
Category
Mainstream
• Low Growth
• Value Decline
• Low Innovation
• High Penetration
• High Price Sensitivity
Premium Niche
• High Growth
• High Value
• High Innovation
• Low Penetration
• Low Price Sensitivity
Snack Nuts Category
High Value (Premiumisation)
Macadamia
Pistachio
Almonds
Cashews
Mother Earth
Hi Olec Peanuts
Salted & Unsalted
Chinese Peanuts
Raw
Nobby’s
Smart Buy
Low Value (Commodity)
NUT TYPE
STYLE
YLC
BRAND
Our Retail Offer(s)
Gluten Free
Cholesterol Free
Nothing Artificial
Low GI
No Trans Fats
Not Cooked in Oil
Driving Category Growth
Through Innovation