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disadvantageous depending on a team’s “experience and understanding of the independent retailer”. Definite advantages of going through the Metcash DC include access to 1400 stores and retailers “that have their community top of mind and want to partner to drive success for all”, Mr Currey says. “Alignment equals success. Independent stores have the ability to carry their own unique ranges suited to their shopper demographic and the needs of the local community. This means success for the local manufacturer servicing a local market but as for Bulla, a national brand, a nationwide network is key, which means using Metcash DCs.” Logistics and sales When considering logistics, Mr Currey points out that the Metcash model allows for stores to have greater access to frequency of deliveries and dealings with one body. “I believe this is a bigger challenge in far reaching regional areas where, depending on the store size, they might receive three to four orders a week. The DSD model might only accommodate two deliveries.” He adds that the DSD model can also be a “little disjointed” if not all states are represented by the primary partner. “There may be a state or two where a third party comes into play, which could add to communication challenges.” As to finances and sales, at times the cost of products using a DSD model through a third party can result in higher costs compared to using Metcash DCs, Mr Currey says. This could result in diminished margins if retailers want to remain competitive with chains. The other issue, he adds, is a flow-on effect in that a diminished range could mean that retailers take an interest in competitor products. “The consequence here could see our turnover decreasing and our market share dropping,” he said. “The decrease in sales when we left the Metcash shed and moved to the DSD model was considerable, according to historical data. “Promotional alignment is also easier when being driven out of one body, that is Metcash. This in turn means maximising the promotional offtake and financial return.” Mr Currey highlights that “even though nothing is ever seamless” the move back into the Metcash fold has progressed well. “As we were about to go back into the Metcash DC we had to contend with a SAP changeover that presented challenges, but I can say that the support from the Metcash team, the Bulla team and our field partner Liaise Marketing saw us hit significant milestones.” He says that the first test was the launch in January of Bulla’s Super Premium Ice Cream under Murray St branding. “The work by everyone saw a great result, with the brand continuing to grow. This has contributed to some strong growth for Metcash in the frozen category.” Bulla has attributed growth in the chilled and frozen categories to the Murray St launch, running long- term shelf discounting programs on selected lines, a continued field focus on distribution and a solid promotional program. Impact of pandemic on working with Metcash The impact of Covid-19 has certainly been positive from a Metcash point of view, Mr Currey says. This is because many consumers reverted back to their local supermarkets, resulting in growth above that of the market in many cases. “As we all know, manufacturers, wholesalers and some stores have been adversely affected by Covid-19, but we have all worked together in getting stock out to consumers in what is a terribly tough time for many Australians,” he said. “I’d say our relationship has been strengthened as we have had to all pull together. “From the independent retailer’s perspective there is a hope people will come back to their local supermarket, find satisfaction with the range or service they experience, and remain loyal, ideally increasing their weekly spend and basket size.” Mr Currey says Bulla has continued to support its brands in various formats since moving back to Metcash DCs and contending with the pandemic. He adds that the brand has been “aggressive” in its “above the line” support for Murray St and the recent relaunch of Bulla Creamy Classics Ice Cream Sandwich. This has been complemented with catalogue panels, promotional support and other activities to drive awareness of the Bulla Brand. Online trend gets thumbs up Mr Currey says the increasing trend to purchase online has helped Bulla’s business in many ways. This is a result of the brand’s products being widely available across the major retailer platforms. “We have a strong online presence through their respective engines in this area. I’d say we’ve really benefited as people have shifted a lot of their shopping behaviours to online as they have become more confident in the online availability of products. The percentage of sales from online over the last six months has been accelerating to unforeseen levels,” Mr Currey said. “The interesting thing will be how consumer behaviour changes as we go back the ‘new normal’.” The current Covid environment sees people cooking more at home instead of eating out, he says. Bulla’s categories have benefited from this trend. The brand also uses support websites such as Taste.com where people are encouraged to try new recipes and broaden their in-home dining experience. The amount of baking at home for example appears to have increased dramatically considering the increase in the purchase of cream, Mr Currey says. “It will be interesting to see whether people continue this trend going forward.” And what of going forward Mr Currey says Bulla intends to grow its business as it endeavours to work “strongly” and “collaboratively” across all retailer platforms. He highlights that the brand is experiencing strong growth in the frozen category, among others, with sales of some products being up 20 to 30 per cent during Covid-19. “We have had to think a little differently”, Mr Currey said. One example is Bulla Creamy Classics Choc Tops, which were ranged through a “job lot” process in Coles and independents. These proved very popular for people having a Choc Top at home instead of at the movies. “The challenge is to match growth next year, which I have no doubt we’re up to doing.” EXCLUSIVE INTERVIEW NOV, 2020 RETAIL WORLD 21