Page 29 - Food & Drink Business Nov-Dec 2019

AUSTRALIA’S TOP 100 FOOD & DRINK COMPANIES 2019
SPONSORED BY DATA SOURCED FROM
AUSTRALIA’S
FOOD & DRINK COMPANIES 2019
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.
AUSTRALIA’S food and beverage manufacturing sector is the largest in the country. It accounts for more than a quarter of all manufacturing and has been the leading sector since 2012. But it is a volatile space as some on this list can attest. Working with leading research firm IBISWorld we have gathered all the data to reveal the food and beverage heavyweights, newcomers and those in between.
MOVEMENT AT THE TOP
Despite reporting a NZ$605 million financial loss, Fonterra has again topped the list. It was the second loss for the company in two years, in what CEO Miles Hurrell called an “incredibly tough” year.
Meat company JBS held its spot as it embarked on two major sustainability initiatives and acquired White Stripe Foods to boost its distribution capabilities.
Beverage giants Coca-Cola Amatil and Lion swapped places to take #3 and #4 respectively. Similarly, Treasury Wine Estates and Teys swapped spots at #5 and #6 while Ingham’s held strong at #7.
Nestlé fell two spots to #10, making room for Carlton & United Breweries (up from #14 to #8) and Saputo Dairy that jumped from #34 to #9.
FASTEST MOVERS
The standout this year was Saputo with its $1 billion takeover of Murray Goulburn and Warrnambool Cheese & Butter making it the largest
dairy processor in Australia. It had the highest revenue growth in the list, at 220.84 per cent.
Two of the fastest movers were new arrivals – Kinrise (revenue up 103.03 per cent) and Australasian Foods (69.89).
Almondco Australia had the fourth highest revenue increase (55.81 per cent). In the last 10 years the company has increased production four-fold.
Freedom Foods Group continued its climb, moving from #68 to #59 in 2018 and
up to #47 this year. It recorded 33.65 per cent revenue growth.
WINNING SECTORS
Poultry processors performed strongly, with an average growth of 6.24 per cent. Golden Cockerel and Hazeldene’s Chicken Farm were two notable performers, growing at 10.18 per cent and 6.86 per cent respectively.
Many operators in the meat processing sector also posted strong results over the year. While varied trading conditions across regions led to some sluggish results, the sector was bullish overall. Strong export demand combined with an increase in turnoff rates due to widespread drought benefited meat processors.
Thomas Foods and Midfield Meat International were strong performers, posting annual revenue growth of 22.0 per cent and 24.6 per cent respectively.
Per capita alcohol consumption is declining but demand for premium products such as spirits are rising. This boosted revenue
for Brown-Forman Australia, which saw significant sales growth in its Gentleman Jack and Woodford Reserve ranges and Beam Global, owner of Jim Beam and Suntory Whisky.
NEW ARRIVALS
New arrivals made their way on to the list through acquisitions, restructuring or reclassification by IBISWorld.
Kinrise arrived at #64 after being formed in May 2018. It calls itself “a new kind of food company” with breakfast, baking, bakery, biscuits and snack categories produced by its brands Cobs Fine Foods, Greens General Foods, Susan Day Cakes and Ozpack. It recorded a 103.03 per cent revenue rise.
Cake and pastry manufacturer Australasian Foods came in at #68 with 69.89 per cent revenue growth after acquiring Boscastle Pastries Foods for $10.75 million. It acquired Patties Foods in September 2016, which was #89 last year.
Poultry processor Turosi entered the list at #52 after a merger between OSI International Foods (#84 in 2018) and Turi Foods.
BIGGEST LOSERS
The worst performer on the list was Lion, partly explained
by a 15-month
comparative reporting period in 2017. Its dairy and drinks segment was impacted by the drought, declining alcohol consumption and increased competition from craft brewers. These factors also saw revenue drop for Australia’s largest brewer, Carlton & United Breweries.
Extreme weather conditions impacted meat processors in 2019. Queensland-based Aaco’s saw a fall in production from 77 million kilograms in 2018 to 68.9 million this year. This was largely the result of flooding
of the Gulf of Carpentaria in February, which resulted in the loss of 43,000 head of cattle.
Western Australia-based WAMMCO International recorded a nearly 13 per cent decline, with low annual rainfall impacting production.
Bellamy’s Organic also saw a sharp drop in revenue due
to several factors, the main one being $18.2 million of lost sales in China. Failure to gain SAMR approval, a lower birth rate, changing regulations and increased competition also impacted sales. ✷