BRISBANE: A cashed-up Golden Circle is planning to launch a number of existing and new products in its key juice, packaged fruit and baby foods categories.
After financial difficulty and company restructures, the Brisbane-based foods and beverage producer has received a $50 million cash injection from global investment group Babcock & Brown. Golden Circle CEO Steve Morrow said while the majority of the funds would go towards rebuilding manufacturing resources, more will be poured into marketing and advertising activities. Morrow said the group had "under-invested" in its juice and foods brands in the past and was planning to increase advertising and marketing activities for a number of key brands. It is also planning to launch new products and relaunch existing ones, although he was unable to provide details. "If we don't invest more in our brands then we will not succeed," Morrow said. As part of the company's revival plan, BCM Partnership, which has held the account since 1999, will overhaul the groups corporate logo, packaging and point-of-sale material, expected to roll-out in early July. Golden Circle is the second largest juice manufacturer in Australia, with an 18% share of the market; it spent $750,000 advertising its juice products in 2004. In the baby foods sector Golden Circle competes against category leader Heinz Watties Australasia, which holds a 75.5% share of the $66.6 million baby foods market, as well as Random Harvest Pure Foods. While all players have a relatively low profile in terms of advertising spend, the category is expected to heat up. Heinz is launching its Heinz Globetotters range in May, backed by heavy TV, print and online advertising activity by creative agency DDB. Heinz business manager infant feeding Melissa Jones said in the past 18 months the baby foods category had seen increased competition between the major groups. "It's competitive partly because Golden Circle is a well known name. But people trust the Heinz brand and they [Golden Circle] lack variety and innovation." Nielsen Media Research AdEx figures shows Heinz is the biggest spender in the baby foods sector and in the 12 months to February 2005 spent $1.7 million on main media, compared to Golden Circle's $100,000. SPC Ardmona, purchased by Coca Cola Amatil in February this year, will be in a strong position to maintain its share of the packaged fruit sector. SPC Ardmona spend $1.1 million on its breakfast, diced peach and fruit snacks brands in the 12 months to February 2005.
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