Goodman Fielder considers extending shelf-life of its bread

Posted by AFN Staff Writers on 21st November 2011

Australia’s largest bread manufacturer, Goodman Fielder, is reported to be reviewing alternatives to making daily deliveries of its bread to Australia’s supermarkets and extending the shelf-life of its bread products using food technology as part of a major cost-cutting exercise.

With many Australian supermarkets now bake their own home-branded bread instore, external bakeries like Goodman Fielder are facing tough competition on price.

As part of its Strategic Review, announced in August 2011, Goodman Fielder said it plans to cut A$25 million of its outgoings during the 2012/13 year.

According to reports filed by the company with the Australian Securities Exchange (ASX), Goodman Fielder has 19 bakeries across Australia and currently transports its bread to over 80 distribution centres nationwide. Around 500 bread delivery runs are then made from the distribution centres to almost 20,000 customers each day.

In a separate announcement made through the ASX, the company stated approximately 43 per cent of its expenditure goes on delivery costs and returns, while 27 per cent is spent on manufacturing and conversion costs, and 30 per cent is spent on raw materials.

The Goodman Fielder’s bread brands include Country Life Bakery, Flinders Bread, Freya’s, Helga’s, Lawson’s, Mackenzie, Leaning Tower, Mighty Soft, Wonder White, Vogel’s, and Quality Bakers.

Goodman Fielder’s new CEO Chris Delaney said, “Our manufacturing and supply chain will be optimised and work is advancing on the development of a new baking business model with potential efficiencies and cost saving already identified.”

Mr Delaney added that the company’s plans are “still at an early age”.