In the 28 years since Carolyn Creswell started Carman’s Kitchen she has turned a handmade muesli brand into an international market leader in snacks and cereals. Kim Berry caught up with the CEO just as COVID-19 restrictions started to be put in place. This article was first published in Food & Drink Business April 2020.
In the face of a pandemic, the panic-buying of grocery was not a surprise for Carman’s Kitchen CEO Carolyn Creswell, even if it was unnecessary. She told Food & Drink Business: “Australia produces a lot of food. Some of this consumer worry is unfounded. The run on meat is completely unwarranted and irrational, we are a country that produces food.”
The company is supporting its own workers as best it can, she says. All employees with children under 12 have been given $150 by the company to go and buy things to keep their kids busy and occupied at home.
For Carman’s COVID-19 has triggered unprecedented demand, with production up 350 per cent.
“This isn’t business as usual, but business as unusual. Isolation and work-from-home directives mean we are seeing a lot more consumption, but there are two parts to that.
“There are expandable items, meaning the more of the item you bring into the home, the more of it you consume – think chocolate. And non-expandable goods, so those things you bring into the home which no matter how much of it you have you consume at the same rate – such as toilet paper.”
Meeting demand
With such a dramatic and sudden increase in demand, Carman’s is shifting product straight from its production line, bypassing its warehouse facility altogether. The company works with multiple manufacturers to make its recipes, all based in Australia and most located in Melbourne.
“We are Australian-owned, everything is Australian made and we source our ingredients locally where possible. It means we can move really fast to keep up with demand compared to some competitors relying on imported goods.
“The current situation is also a big boost for Australian-made products. Consumer nervousness is reduced when they buy Australian products. They trust the product and they feel good about supporting a local business when so many people are losing their jobs,” she says.
That extends into consumers having a different appreciation of food, knowing more about where it comes from and issues around food safety and the benefits of supporting local industries.
“If Australians continue supporting our own thriving food industry, then there is no need to worry about the supply or contents of the products coming from overseas,” she says.
Creswell sees times like these as an opportunity to take stock.
“You come out of these challenges with different learnings, but you have to be open to seeing it like that. From a business owner’s perspective, it creates the space where we can prioritise the work we are meant to be doing, not the day-to-day happenings that take away our focus. You can see a lot of those meetings you were having could easily be covered in an email.”
The company that could
Creswell says it is interesting the company has survived when many do not. So why has a company, that started out as an artisanal muesli stand at a local market been able to grow into one of Australia’s most well-known snack and cereal ranges?
“We have been through a lot of food trends over the years and have always been able to ride the waves of change. The first one came with wealthier, older people who wanted zero-fat products. It didn’t matter how much sugar or chemicals were in it, it just had to have no fat.
“Then over the last twenty years, people realised fat was good for you and carbohydrates were on the out. Then the no-sugar movement appeared.”
Creswell says although no added sugar is still very much top-of-mind, there has also been a dramatic rise in people caring about what they eat. “In the last five years, the mindset shift to food as medicine and that what we eat matters has been massive. A much larger consumer base now purchases goods with the mindset of, if I want to look and feel good, I have to think about what I eat. It has been the biggest shift we’ve seen.
“What I have found interesting is along with that wellness focus is the massive wave of awareness and concern about sustainability, the environment and the provenance of food. These are so important, yet even five years ago were not really showing on consumers’ radar. There is a sensibility of consumers now, more than ever before.”
Finding and implementing environmentally sustainable packaging is of the upmost importance, she says, with the food industry having the added challenge of options that also address food safety and the integrity of the product.
“Packaging has been prohibitively expensive but in the last year it has become a number one priority for businesses everywhere. The technology has taken some time to catch up to consumer expectation, but it is catching up. The conversations around this are also much more sophisticated,” Creswell says.
“Once consumers want something, the industry will make it happen.”
Snacking for success
The growing popularity of snack foods is another trend the company is witnessing.
“The snacking sector is booming because people want things that are convenient and portable. They also want choices that are less processed, whole foods, which are better for them and have sustainable packaging,” Creswell says.
“For Carman’s we run all of that in-house. We have a big team behind product development, packaging development, materials and design. It is the engine of our business.”
The team have about 40 products currently on the go, which is a best-yet for the brand and will determine what makes it to supermarket shelves in the next 12 to 18 months.
Since it began, the Carman’s brand has been associated with hand-crafted muesli.
Creswell says the philosophy is still the same today, even as it expands its range of snacks, supplies major retailers and 15 international airlines, and exports to more than 30 countries.
“For us it has always been about real food. Less about no fat, no sugar or no carbs, and more about using real ingredients and minimal processing. We’re not a health food company.
”A large portion of our portfolio is very good for you and there are some products that are more indulgent, but even those are still better for you than what you would probably be having instead.”
Carman’s latest range, Aussie Oat Bars, was released earlier this year. It is lunchbox friendly (nut-free recipe), has less than four grams of sugar per serve and a 4.5 Health Star Rating. The bars were a big project for Creswell, taking five years from idea to final product.
“What parents buy for their kids and what kids will eat are two different things. The first attempt was a popcorn bar. It ticked all the boxes in terms of being healthy, but kids didn’t like it very much.
“With every project, I start with, how would I make this at home? What ingredients would I use? What shape would I make it into, could it be more rustic?
“Then we start in smaller batches and build from there. Top of mind, constantly, is ingredients, price and consumer demand. It is an enormous effort and we launch knowing we worked the hardest we could to get it there.”
