Just Food

Daily Newsletter

10 August 2023

Daily Newsletter

Australia’s Ferndale Foods invests in bar facility to meet better-for-you demand

It will offer co-manufacturing capabilities and create its own branded product lines.

Ferndale Foods Australia is investing A$20m ($13.1m) in a new manufacturing facility to meet the growing demand for better-for-you bars and snacks.

Once operational, the FoodLine Australia facility, in Ballarat, Victoria, will have the capacity to manufacture 180 million bars annually, Ferndale Foods Australia said.

It will offer co-manufacturing to existing customers while also creating its own better-for-you product lines, employing up to 30 people over the next 18 months. Production is expected to start next month.

Ferndale Foods Australia supplies retailers including Woolworths, Coles and Aldi with 40% of its business being in branded products and 25% in private label.

The family-run business is hoping to take advantage of a growing market for healthier bars and snacks in the country. It points to Coles’ strategy of “health in every aisle”, as an indication of a growth trend.

CEO Leigh Edward said: “Through extensive research and consultation with our major customers and leading brand owners, we have identified a significant gap in the industry – a comprehensive, state-of-the-art manufacturing hub capable of producing a diverse range of bars, including protein, muesli, low-sugar, sugar-free, gluten-free, and high-fibre options.

“Similar to marshmallows, we recognised the existing demand for better-for-you products. We can optimise production, storage, and shipping processes for larger customers, providing them with unparalleled convenience and cost savings.”

Established in 1995, Ferndale Foods Australia is known for its low-sugar products. It
manufactures confectionery brands, including Jila Mints and Jols Pastilles, under its Ferndale Confectionery arm and marshmallows through its its So Soft Marshmallow Co.

The company, which also exports products to Japan, South Korea, New Zealand and the US, has annual sales of around A$25m but is predicting the new site will increase sales to A$40m within 12 months and A$50m within 18 months.

Ferndale Foods Australia told Just Food staff numbers are expected to grow from 65 to more than 100 by mid-2024 when its new better-for-you brands are launched.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.