Vegeta’s vegetable shortening substitution strategy has saved the company $3.6 billion since 2017.
It’s a big achievement in a year in which the company has made a lot of changes, including a $3-billion revamp of its manufacturing operations, a new logo and a move to a new platform for delivering products and products.
“The plant in Wollongong was a huge loss,” said Paul Henson, an analyst with Cushman & Frierson.
“We would’ve been better off if we had just closed the plant.”
In 2017, the company reported an operating loss of $3,621 million, a figure it says was lower than expected.
The company had a net loss of more than $3 million.
The latest annual report showed the company is making significant strides in its plant in the Northern Territory, where it makes the veggie shortening.
In the first nine months of this year, the plant produced about 3,500 kilograms of vegetable shorteners.
In its first nine-month period of 2017, that plant produced 5,000 kilograms.
The plant has more than doubled its production capacity, from 1,200 kilograms in 2016 to 1,400 kilograms in 2017.
The move to its new platform to deliver products and goods to customers also helped the company to lower its costs by about $3-$4 million.
“When you look at the plant, we were doing so well that we started thinking about how we could save some of those costs,” Mr Henson said.
“There was a $2 million savings, but then we decided to think about what we could do better to increase the efficiency of that process.”
The plant also used to make the vegeaser, which Mr Hinson said was an essential part of the company’s brand.
“It’s one of the few things that was actually produced locally, locally sourced, locally processed,” he said.