Many SME food and beverage companies are seeing revenue growth that their larger counterparts can only dream of.
While they may not generate the massive revenues of Australia's Top 100 Food & Drink Companies, analysts agree that they do have a strategic advantage.
Small companies have become the industry's fastest movers because they are better able to address niche markets with personal stories and innovative products, Innova Market Insights director, Lu Ann Williams says.
“Small companies are really leading in terms of thought leadership nowadays,” she says.
Williams points to the success of small companies in emerging niches such as free-from space, and as early adopters of innovative ingredients.
“Everybody should be watching the small guys to see what they're doing,” she says.
Smaller companies have other advantages over their larger counterparts, according Dermott Dowling, managing director of innovation and international business consultancy Creatovate.
Shoppers and consumers are looking for authenticity and ‘realness’ more than ever before, and there is scepticism about whether large companies can deliver this.
On the flip-side, consumers feel more connected with the small- and medium-sized family-owned or startup food brands.
Throughout the year, Food & Drink Business showcases some of the Australian companies that exemplify this trend.
So here are this year’s Rising Stars: those SME companies making strong gains in their market, thanks to their ability to innovate, adapt and grow.
For the full coverage, click here to download the November – December issue of Food & Drink Business.
Roza’s Gourmet Sauces: Fresh thinking
In just four years, Roza’s Gourmet Sauces has transformed from a homespun business into a thriving company that produces a wide range of premium, handmade sauces for the food intolerant.
Nexba: the next big thing
A passion for health and real ingredients saw two Aussie boys launch an iced tea range that this year won them the Telstra Australian Micro Business Award.
Popina: serial growth for muesli maker
This manufacturer specialises in clusters and holds a significant slab of the local muesli market.
Mayvers: the ultimate health nuts
Healthfarm Fine Foods’ pure-state nut products are healthy profit spinners for the company.
Slim Secrets: a recipe for growth
Sharon Thurin turned a gap in the healthy, convenient snacks market into a growth opportunity.
Cocofrio: the dairy-free dream
Cocofrio found its point of difference among health-conscious and sugar-wary consumers.
Schibello Caffé: a unique blend
Schibello Caffé introduced Italian espresso to Australia, and the company continues to bring new experiences to coffee drinkers.
Pangkarra Foods: from paddock to platter
As demand for food transparency soars, Pangkarra Foods has found an innovative way to value-add what it grew on the farm.
Frosty Boy: expanding its soft serve empire
Frosty Boy’s new purpose-built plant boosted its capacity and efficiency, and placed it on a firm footing for exports.
SodaStream: adds fizz
Innovation in natural flavours is boosting SodaStream’s bid for benchtop domination in Australia.
For the full coverage, click here to download the November – December issue of Food & Drink Business.
