Aussie consumers have changed, demanding better from companies everywhere. 90% of them are engaging with sustainability in their everyday lives, led by Millennials and Gen-Z. In the coming years, these generations are set to become the most prominent customer segment, making it integral for companies to act fast.
Premium food company Pure Foods Tasmania (ASX: PFT) is doing just that. The Company’s Daly Potato Co. division launched its Potato & Gravy product in March this year, with Daly recording sales revenue of $311k in the month, up 46% on March 2022.
The Potato & Gravy product boasts 100% recyclable packaging and is ranged in Coles Supermarkets in Victoria and Tasmania. It delivered record sales for Daly in March 2023. The Woolworths in Queensland and Tasmania will range both 250g & 450g Potato & Gravy products in late April 2023.
Michael Cooper, Managing Director and CEO, highlighted, “In March, we successfully launched Potato & Gravy into Coles Victoria and Tasmania with sales exceeding our expectations. We are very excited about the further distribution opportunity with Woolworths Queensland and Tasmanian stores in late April 2023. This result is [a] testament to the nutritional value, rich flavour and price point of our Potato & Gravy product.”
He added, “In this current economic environment, the consumer is looking for good value healthy food and it does not get any better than farm fresh Tasmanian potatoes. Moving into the cooler months we only see demand increasing for this unique product.”
At the same time, to cater to the more eco-conscious diets of younger generations, Pure Foods has also introduced a new 1-litre plant-based ice cream range under the brand, The Cashew Creamery. It has been launched into independent stores “with strong acceptance” already. Cashew Creamery is a top-performing division for Pure Foods. In Q2 FY23, its sales rose by 44% on Q2 FY22.
Besides launching new products, the Company has also undergone some board changes. Its CFO, Charles Hughes, will be stepping down on April 21, and being replaced by Phil Excell. Excell has previously spent over 18 years with Tasmanian salmon farming company Tassal Group Ltd in senior management financial and commercial positions.
In H1 FY23, the Company’s revenue fell by 21% to $4.4 million. This revenue reduction was mainly driven by a planned reduction in Woodbridge Smokehouse sales (down by 56% from $1.72 million in H1 FY22 to $750k) due to rising raw material prices, increased sales prices and disciplined focus on operating costs. Daly Potato Co. was also impacted by wet seasonal conditions on the East Coast leading to a reduction in cabbage supply for eight weeks. Because of that, the Company hadto temporarily withdraw its Coleslaw range from major retailers and independent stores.
Cooper said, “The PFT Group from the accounts team, team leaders and operators have all put a lot of work into reducing overheads, looking for efficiencies and reducing wastage whilst also continuing our focus on new product development. This is in line with our strategy to deliver a sustainable base business with large cash reserves, allowing PFT to continue to deliver on our growth strategy via acquisitions and organic sales.”
Alinda is a Business Reporter for The Sentiment
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