Heinz, who already possessed a strong retail distribution channel, found itself able to leverage the Golden Circle franchise distribution network after purchasing Golden Circle in December 2008.
Heinz viewed the strength of the iconic Golden Circle brand at the forefront of its purchase decision, but so were the opportunities in new categories and channels to market.
The acquisition of Golden Circle added beverages for the first time to the Heinz Australia portfolio, plus a ‘route trade’ network of franchisees directly servicing customers from schools and aged care facilities, to petrol and convenience stores, hotels, cafes and restaurants.
Heinz is the first to admit however, that it has been a steep learning curve.
Previously National Sales Manager for Schweppes, Chris Smith joined Heinz last month and brings a wealth of insights and experience to his new role as General Manager Out of Home. He has also run his own franchise businesses and was Director of his own Victorian based Fast Food Chain for 5 years.
“Heinz has found the specific demands of the route business challenging since it acquired Golden Circle. It’s very different from retail – from the structure and dynamics of promotional activity to the logistics of meeting the daily service needs of route channel customers – and demands a different way of thinking,” said Chris.
Since the acquisition we’ve been busy developing new products, such as GC Raw chilled fruit and vegetable juices and LOL carbonated fruit juice.
Looking ahead, Chris is focusing on key areas to improve the opportunities and efficiency of the Golden Circle franchise network – such as minimising out-of-stock situations, providing real-time data on the latest available products and pricing, and boosting the sales leads generated for the network.
Chris says of the franchisees: “we have some great operators in our network and we’re keen to ensure they get the marketing and sales rep support they need to boost volumes this coming summer. We’re also keen to attract new franchisees to the business to enable us to capitalise on future growth opportunities.”
