Bulla has survived two World Wars, a depression, the recession we had to have...and is doing rather well in the difficult period manufacturers are facing right now. PKN asked Nick Hickford, general manager - sales, marketing & innovation at Bulla Dairy Foods about heritage vs trailblazing, dealing with dairy-free, what mainstream food needs to do, sending a tub of frozen yoghurt into space and more...
This is that interview:
PKN: Apart from the odd high fat hysteria from time to time, this has probably been the first time in Bulla’s history that it has faced “dairy free” being seen as a pro-health movement. How has it affected your marketing?
Nick Hickford: People have been enjoying Bulla’s products for more than 100 years – it’s a trusted brand that delivers premium quality and taste. The choice between dairy and non-dairy is just that, a choice; dairy products are also seen as healthy choices – it’s all a part of knowing what works for your body and individual preference. We do see the trend for non-dairy and lactose free growing in Australia, however our core focus remains on dairy. That being said, we have made non-dairy creams for our Foodservice customers for some years and will continue to support this area as long as customers require.
We are proud to offer Australia’s locally made dairy products and continue our consumer education piece on picking the right product for the right use, as well as clearly labelling better-for-you options on shelf.
PKN: The dairy free and no lactose messages are on a lot of foods, but dairy seems to have steered clear of retaliating with pre-dairy or health dairy messages on its packaging?
Nick Hickford: The majority of Bulla products are about delivering delicious tastes and treats, as such our focus needs to be on the quality of our dairy to deliver that enjoyment. As such specific dairy health messaging is not a critical component of our product messaging mix.
For Bulla, the dairy component is about our products being made with real, authentic, ingredients and a delicious quality product. This is particularly relevant in a market where so many products are made from powders, reconstituted milks, and bi-products from production of other dairy. We won’t be changing our marketing strategy to promote one over the other, because they are two different product categories that speak to different audiences.
PKN: Coca-Cola is struggling with a new, healthier attitude and the barrage of healthier drink options that has come with it – or rather because of it. It has tried almost everything in the last three years to stop market share slide...Grab and go ice creams must be facing the same attitude shift and healthier treat options. How is Bulla responding?
Nick Hickford: This category has not yet been affected in the same way as the soft drink market; in fact it’s quite the opposite and most indulgent segments are growing at the fastest rate. Our research would suggest that this ice cream is being used as a substitute for more expensive ‘feel good’ experiences as Australian consumers keep greater control of their discretionary expenditure. They’re picking up something from the supermarket rather than spending on super premium chef/ gourmet offerings.
PKN: Bulla ice cream packaging is not the most forward thinking in terms of design. What is the thinking behind the pack designs? What are the elements in your packaging that you think contribute positively to purchase?
Nick Hickford: Bulla unveiled a new logo and packaging suite in 2014, taking the heritage and traditional values of the brand and adding a contemporary element to better communicate the care, craftsmanship and passion of Bulla’s history.
Market research confirmed that customers loved and instantly recognised the Bulla brand, but weren’t deeply familiar with the longstanding Australian heritage. Bulla’s updated packaging was the first part in communicating our great story and sharing six generations of family tradition with new and existing Australian consumers.
Now, more than ever consumers are concerned about product origin and are getting more skilled in the kitchen. Select Bulla packaging calls out our Australian made and owned heritage, while also better illustrating product use for customers to gain greater knowledge about using the right product for the right occasion. As a part of this journey, Bulla Cream packaging now features usage icons and distinct colours for each cream type, something that helps consumers achieve better results from their home cooking.
PKN: How does one package ice cream sustainably? Ditto, cream. What inhibits your efforts to package sustainably?
Nick Hickford: Bulla made a long-term commitment to working towards a more sustainable business in 2011, driving a ‘best practice’ audit to reduce our environmental footprint. In that time, we have worked hard to engage our staff and make each department more conscious of wastage and accountable to collective sustainability goals.
Bulla is a also voluntary signatory to the Australian Packaging Covenant, using packaging assessments and sustainable packaging guidelines to ensure it meets the requirements to be considered a ‘sustainable’ product. This includes designing packaging for reuse, transport, recovery and litter reduction, while business operations ensure it is made with renewable energy resources.
It is continously researching options for use of more sustainable materials in our packaging, in line with our endeavors to reduce our consumption of non renewable resources thereby reducing our environmental impact. This is already in play for the majority of Bulla’s secondary packaging, which is made from recycled content, however primary packaging is made from new materials due to food safety requirements.
Our co-generation plant in Colac that was established in 2014 has enabled us to advance recyclable energy production which in turn affects our overall approach to creating a sustainable business. The purpose of the plant is to reduce the reliance on the local energy grid and we forecast it has the potential to produce up to 80% of the electrical energy that the factory requires.
PKN: Bulla’s packaging design and branding for creams (and to some extent frozen yoghurt) relies heavily on the company’s family heritage, purity etc. Ice cream branding and packaging design is very different. What is the thinking behind marketing and packaging the two with minimal crossover?
Nick Hickford: While we were a ‘branded house’ our packaging did not always reflect this and we could have been seen as a house of brands, so to better align the product range, Bulla refreshed its ice cream design in February 2015 showing consumers the Australian heritage and family values of the brand. This was the second phase of the master brand update. With consumer concerns rife, there is no better time for us to bring our product suite together, so customers are clear that they’re picking up a quality, Australian made dairy product – irrespective of whether they’re in the fridge or freezer aisle.
PKN: What’s on the horizon in dairy?
Nick Hickford: Exports are a key area of growth given the signing of the China-Australia Free Trade agreement, which will reduce tariffs considerably in the next few years and allow Australia to play on the same level as other major dairy markets in Asia.
As constantly reported by the media, we are seeing greater calls for clarity in product labelling and transparency in ingredients as well as product origin. Given Bulla is one of the last remaining Australian-owned products in the dairy aisle, it’s important that we tell our consumers who we are and where we’ve come from.
Bulla is also investing considerable time and resources in new product innovation to ensure it is always delivering products that excite customers, as well as their family favourites that they continually return to. In the next few months, we will start to release these to market and we’re expecting consumers, as well as commercial customers to enjoy the benefits, flavours and formats of the new brands and product range extensions in the pipeline.
PKN: What does mainstream supermarket food need to do to compete in a world – or through a period – in which ‘health food’ brands and private label brands are playing the game aggressively and scoring a lot of goals.
Nick Hickford: [Note: LOVE THIS QUESTION!] Mainstream food needs to:
- Democratise the health food trends, firstly proving their benefit then commercializing their mass production and secondly: educating and enabling access to them for everyday Australians.
- Reclaim innovation over private label –fast! We are seeing private label deliver better innovation faster than mainstream brands, likely due to the fact they have immediate access to what customers are responding to at store level. Mainstream brands need to get their innovation agenda’s front and center within their business, which is a core area of focus for Bulla at our Colac based Innovation Centre.
- Increase focus on the consumer, strengthening their relationship with them outside the supermarket. It’s important to build a relationship with the shopper before they even get to the supermarket, so that when the shopper enters the store they have some pre-disposition towards a brand (loyalty) rather than picking up what’s on special or what they respond to at point of purchase.
PKN: No major ad campaign since 2013? The Cloud 9 stunt was, at the time, a very avant-garde decision following years of traditional advertising.
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Nick Hickford: This is a good observation...watch this space! We’re happy to talk more about our ongoing advertising strategy when we’re ready to go to market.
