Skippy Peanut Butter in Australia

1. Skippy Peanut Butter in Australia Ben Haines Lauren Helton Deangelo Griggs Jordan Weidner

2. Australia • Total Population – 19,913,144 • 20.1% is 0 – 14 years of age • 67.2% is 15 – 64 years of age • 12.8% is 65+ years of age

3. Direct Competition • Kraft Peanut Butter • 70 years in Australia • Sanitarium Peanut Butter • Began production 100 years ago • Dick Smith Foods Peanut Butter • “As Australian As You Can Get”

4. Indirect Competition • Vegemite • 30 jars are sold in Australia for every one exported • Vegemite is in nine out of ten pantries in Australia • Nutella • Chocolate and Hazelnut spread

5. Price • $1 U.S. Dollar is equal to $1.3 Australian Dollar • Prices for peanut butter range from $1.79 to $3.22 for a 375 gram jar

6. Product • Texture and color can remain standardized from American markets • Peanut butter is offered in no added salt and no added sugar varieties. • Offered as smooth and crunchy varieties • Offered as original formula as well

7. Packaging • Australia uses the metric system so packages will be in grams, not ounces. • Plastic jars are standard • 375 grams is a standard size jar, which is approximately 13.2 ounces • Also offered in 200 and 500 gram jars • American jars come in 18 ounces for a medium size jar

8. Labeling • Legally required to have country of origin on label. • Legally required to have name and address of a person responsible for the information on the label • Legally required to have nutritional information and on label

9. Labeling (Continued) • Ingredients must be listed in descending order by ingoing weight • Must have storage and usage information • Packaged foods must be date marked with an expiration or “best before” date

10. Production • 90% of all Peanuts grown in Australia come from the Queensland Region

11. Production • Types of peanuts grown in Australia • Virginia • Runner • Spanish • Hi Oleic Genetically altered peanuts

12. Production • Peanut Company of Australia sells shelled and processed peanuts to manufacturers of peanut butter • Paradise Foods makes the peanut butter for Dick Smith foods, a major Australian producer • Barton Addison & Sons PTYL Ltd. produce peanut butter • Kraft Foods Intl. produces their own brand

13. Transportation • Unilever has established distribution channels throughout Australia already • Have manufacturing centers for other products in Sydney, Eppin, Melbourne, and Tatura • Unilever ships primarily by road in Australia • 314,090 km of paved road • 18,619km of that are expressways

14. Australian Highways

15. Transportation by Train • Rail Gauges are not standardized across the country so not always efficient • FreightCorp • National Rail • Australian Railroad Group is Australia’s largest private railroad company • Tracks totaling over 10,795 kilometers

16. Retailers • 75% of sales in supermarkets come from Woolworths and Coles Myer • 36,000 food retailers country wide • Major food retailers in Australia • Woolworths • Coles Myer • Foodland Associated Limited

17. Promotion • English language and western style culture • This means that promotional material will have to change very little • Ads can be standardized without fear of misunderstanding • 69% of total population lives in the 5 largest cities in Australia

18. Population Distribution • Sidney • 4,085,600 • Melbourne • 3,466,000 • Brisbane • 1,626,900 • Adelaide • 1,096,100

19. Media Availability • Television – 104 stations • Radio – 345 FM stations and 262 AM stations • Internet – 2,847,763 hosts and 9.472 million users • Internet advertising spending is growing at 450%