The Fast Moving Consumer Goods (FMCG) market in Australia is worth $208 billion dollars with food, beverage and consumer products the largest manufacturing industry in the country. New Zealand is a major food and beverage producer and exporter, with the industry accounting for 46 per cent of all goods and services exports. Both markets are expected to continue to grow strongly this year.
Retail grocery can be highly lucrative for SME suppliers and producers. SMEs in the sector are diverse, ranging from larger players to the very niche. Landing a large-scale retail grocery client can come with benefits as well as pitfalls and in order to maximise the opportunity SMEs need to leverage their cash flow and ensure that their business can upscale as required.
Our business makes high end Christmas puddings which means demand is incredibly high at one time of year. We supply our own brand to high end grocers and based on the success of this we were approached by a large supermarket chain to produce white label puddings for them. To take on this huge opportunity we needed to upscale our production capacity very quickly. An invoice finance facility gave us access to the funds from our invoices sooner, we were able to deliver both our own branded items and our new white label to the supermarket chain without running into cash flow issues.