Strategic Collaboration and Diversification for Business Sustainability Phil Sims Chief Executive Officer

Commenced 1908 – 4 th Generation Family Business Robern – Fruit – Dried, Glace, Canned, Dehydrated Menz – Confectionery & Biscuits since 1850 acquired in 1992 Menz FruChocs – 2005 Official SA Icon (National Trust)

Niche Player – Global Confectionery and Fruit Snacks market Dominated by multi-national brands Growth of globalisation and private label Retail Market concentration Manufacturing in Australia – increasing cost base Market Position....

Avoid commoditisation Point of difference – S.C.A. Build brands – niche market strategy Spread risk Diversify – new market & product channels Localisation Collaborate – cross promotional opportunities & co-manufacturing Build supplier partnerships with in Australia & Overseas Remain Sustainable....

Brand Building.... Bring the brand front of mind with consumers Develop strategic partnerships to leverage each others strengths Promote ‘local’ and ‘community’ Build network of fans – Personal/Celebrity endorsement & engagement Have fun with the brand

Cross Promotions / Partnerships include: Golden North ~ Menz FruChocs IceCream Foodland/Little Heroes ~ Jelly Confectionery Partnerships....

Cross Promotions / Partnerships include: Kytons ~ FruChoc Hot Cross Bun -Diversification -Multiple revenue streams

Sunrise – Hot Cross Bun

Partnerships.... Channel 9 Telethon, Wallis Cinemas ~ Take 9 Card -Localisation -Strategic – Cinema experience

Partnerships.... Prostate Cancer Foundation - Channel 9 – Triple M -4 way Partnership -Celebrity endorsement -PCFA – Awareness ‘Men to get tested’

Social Media.... Facebook 34,000 Fans – 80% SA Based – 20% Expats

Social Media.... Twitter followers -Market research & communication -Personality engagement

Celebrity Endorsement.... Dick Smith – FruChocs Hot Cross Bun Eddie McGuire Fitzy & Shaun Micallef

Community Engagement.... Mr FruChoc Twenty20 Cricket – Adelaide Oval Dubai – Crows v Collingwood Zac Efron – Hollywood Premier ‘The Lucky One’ SAFM’s GIANT FruChocs Ball

Diversification Shops, 1 licensee, online, pop up SA Focus – leverage iconic brand strength Tourist retail model

Diversification.... Co Manufacturing focus Built our capabilities, capacity & business systems 2 way strategic advantages Identify & Specialise in what your good at – S.C.A. Out Source partnerships – upstream & downstream

Avoid commoditisation Point of difference – S.C.A. Build brands – niche market strategy Spread risk Diversify – new market & product channels Specialise vs generalise Collaborate – cross promotional opportunities & co-manufacturing Remain Sustainable....

Thank you