Page 34 - Food & Drink Business Nov-Dec 2019

AUSTRALIA’S TOP 100 FOOD & DRINK COMPANIES 2019
SPONSORED BY
ABBREVIATIONS O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative
INGHAM’S
Ingham’s streamlining stutters
▼ Revenue down ▲ Revenue up
7
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
OP
2543
06/19
2397
Jim Leighton
POULTRY producer and processor Ingham’s held steady at number seven for the third year in a row. Current CEO Jim Leighton joined the company in November last year.
In 2018, Ingham’s outlined a consolidation plan to streamline its processing network. At the company’s AGM in October, Inghams Group chair Peter
Bush said: “The strategy and execution of
that project have
regrettably faced unexpected challenges
as substantial additional and unexpected
customer demand placed unplanned pressure on operations, leading
to inefficiencies and higher costs.”
Bush said while solid progress was made on its strategy and an underlying $103.2 million net profit after tax was delivered, it was a decline of 4.4 per cent on the previous year.
“Our refreshed leadership team is applying a new and different focus on delivering efficiency and getting more out of our current assets and it’s clear that the introduction of international poultry operations expertise shines a new light on this opportunity. The Board are confident that this vastly experienced team can deliver volume growth,
through manufacturing efficiencies with a capital light strategy funded through ongoing operations.”
Poultry volume growth of 4.3 per cent was driven by steady demand in Australia, supported by early signs of a return to growth in the New Zealand market.
The cost of feed is at an almost historical high due to the ongoing drought. It is Ingham’s single biggest cost. “The drought has proved challenging for Ingham’s and indeed all agri businesses open to the vagaries of the weather,” Bush said.
8
CARLTON & UNITED BREWERIES
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▼
O Pty
2504
12/18
2950
Peter Filipovic
CUB (ABI Australia Holding) rises in rank
HURTLING up the chart this year is ABI Australia Holding, trading as Carlton & United Breweries (CUB). To clarify, this company was formed as part of the acquisition and restructure of CUB by Anheuser-Busch InBev SA/BV (SAB Beverage Investments), which was ranked 14 last year, using financial data from 2016.
CUB was a wholly owned subsidiary of Anheuser-Busch InBev SA/NV until July, when it was sold to Asahi Group Holdings for $16 billion. Great Northern Brewing Co, Crown Lager and
Carlton Draught are among the brands in the CUB portfolio. The divestiture of CUB will go towards paying down AB InBev’s debt.
In September, CUB acquired Adelaide-based Riot Wine Co, which sells wine exclusively in kegs and cans. CUB Sales VP – Australia and NZ Rose Scott said it was about meeting the evolving needs of Australian drinkers. CUB plans to accelerate Riot Wine’s expansion through its large on-tap network, Scott said. Riot Wine Co is the only company in Australia that sells wine exclusively in kegs and cans.
34 | Food&Drink business | November-December 2019 | www.foodanddrinkbusiness.com.au