Australia Coffee

Coffee beans with a coffee grinder on top of them.
  • Company Profile:
  • Turnover: AUD$1bn
  • Categories: Soluble Coffee and Mixers
  • Region: APAC/Australia
  • Market Position: Brands are in the Top 1-2 in their respective categories
  • FMCG Analytics Solution: 2-year Pack Price Strategy & Financial Projections

Business Situation:

  • Coffee consumption had been flat over a 3 year period
  • Core mainstream brands been declining with competitor’s main brand growing
  • Competitors’s growth being driven by a more defined pack architecture and an aggressive promotion program focused on trading up
  • This meant the Client needed a complete review of:
    • Their pricing, promotional programs and opportunities to create more value through innovation
    • While recognising the Clients greatest competitor is often itself, which is driving trading down

What We Delivered:

  • Delivered a Pack, Price Architecture (PPA) strategy and set of 2-year financial forecasts focused on growing in 2 largest Customers
  • Final recommendations included:
    • Top and bottom line growth plans for 2 major customers whilst increasing clients profitability
    • Broad set of recommendations addressing client, customer and category needs including everyday price competitiveness through to expandable incremental growth opportunities
    • Promotion optimisation plan developed to ensure reduced cannibalisation of own brands and incremental growth for category
    • 6.5x ROI identified in first 12 months
  • Identified a significant lift in contribution margin in the first 12 months for both Client, and for the retailer

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