Sweet success for short bread exports - Success Story - product of Old Colonial Cookie Co. Pty. Ltd

Business Asia, July, 2003

Take an old Scottish family recipe, add some Australian butter, and what results is an export success story for a Victoria-based shortbread specialist.

The Old Colonial Cookie Co Pty Ltd began exporting to Japan 10 years ago, and has since extended its market into Hong Kong, Singapore, Canada, and the US. The company is now working on China, South America and India.

Located in Lilydale, in the Yarra Valley ranges east of Melbourne, the company was established in 1981 by John and Julie Lander.

Managing director Howard Dray bought the company in 1999, and has since seen the production of Butterfingers shortbread grow extensively, recently necessitating the installation of new ovens to cope.

Export growth

The expansion into exporting has played a large role in this growth.

Dray says the move from operating solely in the domestic market to exporting was not simple, largely due to the fact that every country has its own idiosyncrasies that must be learnt and adhered to. "You've got to look at every market individually, carry out your research," Dray says, adding that understanding factors such as packaging and presentation can be vital.

For example, in Japan smaller packet sizes are used because supermarket shelves are smaller, whereas in Canada and the US the packets are bigger, but must have more labelling.

Dray says the company learnt this from experience, when a product was launched in a particular country without the required bi-lingual packaging, which had to be re-printed.

Australian edge

Dray says that to get past the stereotype that good shortbread has to come from Scotland, the company has focused on the fact that it is baked using a traditional recipe, but with the added advantage of Australian butter to give it a creamier taste.

He describes the market for shortbread as seasonal, although it is sold year round in Japan, Australia, Canada and Hong Kong.

"It is purchased more as a treat, for a special occasion, or as a gift," Dray says.

Exports currently account for 22 per cent of revenue for The Old Colonial Cookie Company, although this is expected to increase to approximately 30 per cent over the next 12 to 18 months. Dray is currently working to get Butterfingers shortbread into China.

If the move into that market is successful, he plans to start off small to establish a presence and come to grips with the necessary cultural requirements.

In terms of advice to others hoping to branch into the exporting market, Dray says the key is research.