According to Luca Mignini, president of Campbell International, the Australian grocery sector needs to concentrate on innovation in favour of price promotions in order to remain competitive.
“We all know Australia is a market where promotion is having a key role,'' Mignini told Fairfax. ''We have just launched some innovation in terms of flavouring and there must be more than one currency with which you delight your consumer and promotion is just one of those. There are many others.''
According to Mignini, it was through innovation that the Arnott’s Tim Tam brand (which is owned by Campbell International) was able to reclaim customers that it lost to the sales of rival brands and cut-price private-label biscuits.
The Tim Tam brand launched its portion controlled Adriano Zumbo range earlier this year, which helped Arnott’s to reclaim customers and boost its share of the sweet biscuit category to 59 percent, as well as increase its majority share of the chocolate biscuit category to 80.9 percent.
Together with a renewed strategy locally, Arnott’s plans to launch its savoury biscuit range, Shapes, into the Indonesian market this year. It will also be looking to launch its Tim Tam range into other South East Asian countries.
“The launch of Shapes in Indonesia this year will be the biggest launch since the inception of Arnott's and actually I do see personally Asia as a big playground for both Arnott's and Tim Tams in particular,' Mignini said.