Page 29 - Food & Drink Magazine Nov-Dec 2018

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100
THE Australian food and beverage operating assets to Saputo Dairy sector was worth $126 billion in Australia, which comes in at #34
AUSTRALIA’S
FOOD & DRINK COMPANIES 2018
Food & Drink Business, in collaboration with IBISWorld, presents this year's Top 100, a ranking by revenue of Australia's heaviest hitters in food and beverage.
2017 making it our largest manufacturing sector, and every year, in collaboration with researcher IBISWorld, we gather together all of the latest company data to reveal the biggest earners in this crucial sector. So here is Australia's Top 100 Food & Drink Companies 2018 report, where you'll find Australia’s food and beverage heavyweights listed in order of their most recently reported revenue, and here are just some of the standout trends.
MOVEMENT AT THE TOP
Fonterra has again topped the list despite reporting a loss in its latest financial results. The NZ dairy giant maintained its spot at the top of the list, and also saw its revenue grow six per cent from 2017 to 2018, according to IBISWorld senior industry analyst Bao Vuong.
Fonterra was followed by last year’s #2, the meat company JBS, and beverage giants Lion and Coca-Cola Amatil, which swapped places this year to take #3 and #4 position respectively.
Teys was the biggest mover in the top ten, jumping three spots to number five this year, thanks to rising revenues of 11.1 per cent from 2017 to 2018.
"Factors that contributed to this jump include high domestic beef and lamb prices and an expected increase in industry output," Vuong says.
Murray Goulburn, last year's number six, has fallen out of the top ten due to the sale of its
on this year’s list.
FASTEST MOVERS
The stellar performers of this year’s list were headed by Allied Pinnacle, which rocketed up the rankings thanks to a 150 per cent rise in revenue. The bakery goods company jumped 40 spots from #80 due to last year’s acquisition of Allied Mills Australia.
A number of dairy disruptors also did well this year. The a2 Milk Company rose up the rankings from to #31 from #44 thanks to an 84 per cent jump in revenue due to the growing success of its a2 Platinum infant formula.
“The company has continued to grow its market share both domestically and internationally. It has also entered new markets in South East Asia this year,” Vuong says.
Bellamy’s Organic also reported rising revenues, taking it from #79 to #63, and Freedom Foods Group rose from #68 to #59, driven by the launch of its Australia’s Own Dairy range.
“The main driving force for Freedom’s growth is the company’s dairy segment. Continued strong performance in Australian and Asian markets, and the launch of its Australia’s Own Dairy range helped to grow its revenue this year,” Vuong says.
WINNING SECTORS
One of the year’s top performers was the dairy sector, given the strong results of Freedom Foods,
a2 Milk and Bellamy’s Organic over the year.
Fruit produce also did well, as evidenced by Costa Group (#27) and Turners & Growers (#28) showing strong revenue growth over the year.
For Costa Group, growth in the produce and international segments were largely thanks to strength in the avocado and citrus categories, according to Vuong.
“In another common trend, many of the companies with the largest growth in the list attributed export markets as a large reason for their strong growth,” Vuong says.
NEW ARRIVALS
Many of the new arrivals made their way on to the list through acquisitions or restructuring, while others were added as a result of their reclassification by IBISWorld.
PepsiCo Australia & New Zealand entered the list this year at #19 after Frito-Lay Australia Holdings sold its operations to the newly incorporated company PepsiCo ANZ Holdings last year.
Tassal Group entered the list at #47 along with Huon Aquaculture Group at #61 after an IBISWorld review of their principal activities showed they made most of their revenue from the farming, processing, marketing and sale of salmon and other seafood.
Saputo Dairy Australia debuted at #34 this year following its Murray Goulburn and Warrnambool Cheese & Butter (WCB) acquisitions. In addition to Murray Goulburn and WCB,
list drop-offs
included Mars, due
to last year’s
acquisition by
Wrigley Australia
(#13), and Burra Foods
due to its acquisition by Australian Nature Investments.
The companies whose revenue didn’t meet the threshold this year were last year’s #94, Tully Sugar and last year’s #100, Milne AgriGroup.
BIGGEST LOSERS
Wilmar Sugar fell from #11 to #15 on falling revenues due to the sale of one of
its subsidiaries,
and Bindaree Beef Group fell from #31 to #38, after divesting a joint venture investment.
AACo fell from
#34 to #46 due to the
company’s move
away from a reliance on external supply, which impacted its sales volume, according
to Vuong.
Other companies to drop down the list on falling revenues were Top Cut from #58 to #73,
and Patties from #76 to #89.
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