In 1994, J.C. Qiuality Foods began. It made one product. These are the 2014 statistics of a quiet Aussie achiever:
- J.C.’s Quality Foods has reached its 20th anniversary.
- Has shot beyond 1000 different products in its catalogue.
- Is sold in more than 6000 outlets around Australia.
- Is exported to six Asian countries including China.
...Has achieved all this without being sold in any of the major supermarkets.
Managing director and founder of J.C.’s Quality Foods, Joseph (Joe) Cannatelli, stated, “Underpinning every aspect in our business is loyalty. To our customers firstly, who are small business owners, secondly to Australian growers who supply nuts and dried fruits and thirdly to the consumers who are loyal to the brand.”
Joseph Cannatelli
PKN wanted to hear J.C.’s story. This is the interview that grew from that:
1. PKN: You began the business in 1994 with one product, a fruit bar. You used your mum and dad’s 1980 Commodore as a delivery vehicle. You used the back half of their store in nearby Wantirna to store your stock, packing and distribution. What about packaging?
Joe Cannatelli: Well, at first I was packing nuts and dried fruit by hand. Then I bought a linear vertical form fill bag maker that was collecting dust and needed an overhaul. Then I bought a Go Pack bag maker 14 years ago that was made in Mt Eliza (we still have it working under an auger filler now) and put a 10 head Ishida weigher above it. I was so green that I tried to save money and not buy a bucket elevator until I realised I would struggle to load the weigher and pack cartons at the same time. Now we have multiple TNA bag makers and an Ishida bag maker and all Ishida weighers.
2. PKN: What were your major growth spurts and what triggered them?
JC: A major growth spurt was definitely when we decided to package nuts and dried fruits rather than try and compete in the loose / bulk market. At the time, independent retailers were having to become HACCP accredited and consumers wanted a quick purchase. Therefore, we said to our customers that they should let us package for them. This would also let them do away with the messiness and conformance of handling loose product, we told them. From there we created our "world famous" Original Delicious Energy Mix and Original Outback Mix. We also soon realised that consumers are not interested in peanuts as much as they are interested in quality. Our best selling mixes are not our cheapest mixes and they do not have peanuts (peanuts help reduce the price of mixes). They are the ones that bring fun into eating healthy.
3. PKN: What did you add or change in regards to packaging and distribution to keep up with growth?
JC: As a business, we have been focused on the independent market and achieving volume (therefore, the best prices). We quickly realised we had to go interstate with a view to selling Australia-wide. We took what worked in a small part of Melbourne to country Victoria and that was successful. So I was confident it would work anywhere else in Australia. Further to that we now also export to New Zealand and half a dozen other countries. Our export levels to places other than New Zealand are not huge but it’s a start.
We originally had very plain (clear film) packaging on which we printed the necessary information (front and back) and used the same film for just about every product we packed. After a few years we added generic information and branding like our logo, address and an image of a handful of nuts and fruits at the bottom of the bags.
To grow our brand outside of the traditional independent greengrocer and independent supermarket, we created a range of 40/45 gram packets of our best selling mixes and created a fully pre-printed design on foil film that we felt would work in vending machines, service stations, convenience stores and for airlines.
4. PKN: Product innovations? Packaging innovations?
JC: Well, our mixes (ie. not having peanuts in most and using other ingredients like white chocolate drops in one) although not scientific, really did raise the bar in the nut industry (I like to think). Most importantly, consumers were up for it and prepared to pay for something that was healthy and satisfying. Also, packaging our snack packs (40/45gram) mixes in fully printed film for P & C (petrol and convenience) was an extremely important breakthrough for the J.C.'s Quality Foods brand. The packaging shows the product floating in a white background and is packaged in a very good oxygen barrier foil film with a matt finish that does not scream high use of colours and gloss.
5. PKN: What have you learned about packaging along the way?
JC: When it comes to packaging machines, I learned that the slightest changes in calibrations / timings for example would get the results I was looking for in speed etc. But that was after getting a very sore foot from kicking the machine. I had no idea how to run a vertical form fill seal machine at the start and still don't know! So I left it up to the experts, our well-trained team members who taught themselves once I left them to it. Oh yes, now you have brought back memories. I remember trying to save money on film. I changed suppliers in the early days for a better price and I did not realise why the bags would not be centred once formed until someone pointed out that if the film is wound on so well that you get a smooth surface when you run your hand down the side of the roll that would make the difference. I thought that would make no difference and I was wrong and have been loyal to my film supplier ever since. If the film is rolled incorrectly it’s not the machine’s fault for producing out of centre bags.
6. PKN: What do you want to say to the big supermarkets?
JC: I am all for competition and everyone has a niche in the markets they supply. The independent retailer has advantages over the big supermarkets and vice versa. Consumers have a choice and one thing I am noticing more and more is that the big supermarkets are realising this and are becoming willing to give a lot of smaller manufacturers a go. I can also see that it’s not all about getting the best price but being innovative and flexible. Consumers are shopping around, so I really believe there are opportunities for everyone.
Something that is affecting everyone, from the farmer to the retailer, is that we have to be flexible and innovative. Thirty years ago, everyone had a set group products that they would buy week in week out. Now the question consumers are asking is, “What have you got that’s new, different and great value?”
7. What next Big Things do you see on the horizon for your business?
JC: All of the above. :)
