Meet the rescue crews reviving great Australian brands, Rosella and White King

THE saviours of Australian names Rosella and White King tell how they hauled the brands back from the brink of extinction.

Rosella chairman Dan Presser for business story about Aussie brands that have been rescued and bought back by Australian companies.

IT’S one thing to brag about your Aussie business credentials. It’s another to put your money where your mouth is.

Two Victorian businesses have been taking a stand in a fierce manufacturing market to keep key Australian brands — and jobs — in local hands.

Family-owned Sabrands bought soups and sauces maker Rosella out of receivership last year, while listed company Pental snapped up cleaning brand White King in 2011.

Between them, they have saved or created more than 200 direct jobs and stopped two much-loved names disappearing from household shelves.

But in the face of aggressive competition from global giants and rising costs, has the move been worthwhile?

For both businesses, the answer is a resounding yes.

“Absolutely,” Pental chief executive Charlie McLeish says.

“Australian consumers are passionate about heritage and want to keep that alive, so there’s strong support for that.”

Sabrands executive chairman Dan Presser says the sense of heritage played a strong role in the decision to rescue Rosella.

“I remember my grandmother serving Rosella soups and sauces when I was a kid,” Mr Presser says.

“It’s part of the Australian fabric and having grown up with it, when it looked like it was going to disappear forever we thought: ‘Why should we let this happen?’”

Mr Presser is not alone in his fondness for the brand.

Rosella was born in Carlton in 1895 and soon grew to become a staple in Aussie kitchens.

By 1963, the brand had attracted foreign attention and was snapped up by Lever & Kitchen, which became the Anglo-Dutch giant Unilever.

Rosella was back in Australian hands by 2002, after Stuart Alexander and Company bought the label and held it for five years.

But when new owners Gourmet Food Holdings went into receivership in November 2012, it looked like the end was in sight for the colourful parrot packages.

Production of Rosella halted in March last year, only to restart five months later when Sabrands swooped in with an eleventh-hour rescue deal.

“Rosella marks its 120th anniversary next year and we would like it to be here for another 120 years,” Mr Presser says.

He says the move created about 70 direct jobs in Victoria, South Australia and Tasmania, and supports “substantially” more roles in the growing, production and supply chain.

“We were really happy we were able to keep jobs in Australia.”

Mr Presser says the brand still resonates but needs to reconnect with modern customers.

“The retailers couldn’t have been more supportive, but it’s up to us to create the demand for our brand,” he says. “I think you have to earn shelf space.”

The battle to win over shoppers and retailers has seen the launch of a new marketing campaign last month, focusing on the ‘homegrown’ credentials.

The campaign is the brainchild of advertising guru Allan Johnston, the man behind the late 1970s World Series Cricket’s “C’mon Aussie C’mon” jingle.

“He just wanted to help and we thought that was fantastic,” Mr Presser says.

Mr Presser says Rosella’s Australian heritage and quality are proving a vital weapon in its fight against aggressive international competitors.

“Once it was obvious Rosella was making a comeback, we faced what I call multinational bullying, with brands cutting their prices so low that it’s unfair.

“But people are starting to think about what will happen to their kids’ jobs if everything goes overseas.

“I think that provided consumers can see value in what we are offering and understand what they are eating is a quality product, there are consumers willing to pay a slight premium for that.”

It is a similar strategy being employed by Pental’s Mr McLeish.

“Even though we’re playing against the big guys, one thing that we’ve never jeopardised is the quality of the White King product,” he says.

“If we compromised on that at all, I don’t think we would survive.

“If you’re going to market yourself as Australian-owned, you’d better have a quality product.”

It’s not surprising Mr McLeish is passionate about the cleaning products brand.

While Pental saved White King for Australia, it could also be said that White King saved Pental.

“I doubt Pental would have survived without bolting on the White King acquisition,” Mr McLeish says.

“It definitely would have struggled and a lot of jobs might not be here today.”

The group, formerly known as Symex Holdings, bought White King from US giant Sara Lee in 2011 for $50 million.

The company was already manufacturing the product in Australia on behalf of Sara Lee and was concerned the work could disappear when the US owners began looking for a buyer.

“Strategically for Pental to grow, it made a lot of sense to buy a blue-chip brand for the portfolio,” says Mr McLeish, who joined the company later that year.

“White King has been in the Australian market for 50 years, so adding it to our heritage has put value behind our other brands.”

The acquisition of White King saw the group close its Port Melbourne site and relocate operations under one roof in Shepparton.

The company, which also boasts brands such as Velvet soap and Jiffy firelighters, now employs 100 people in the factory and a further 20 in Melbourne.

But while consumers are becoming more conscious of the source of their food, Mr McLeish says there’s still some way to go to spread the word about Australian non-food products.

“We are starting to roll out White King products with the Australian owned and made logos on the pack,” he says.

“We haven’t given it enough attention in the past, but it’s only been recently that people are becoming more aware that we should support and back Australian-owned companies.”

Mr McLeish says the company is ramping up its competitive edge, with a broader range, more investment in the brand and plans for a $5 million high-speed bottle filling machine to hasten production and lower the cost base.

Like Sabrands, which has ambitions to launch Rosella into international markets in years to come, Mr McLeish says White King has a future in New Zealand and possibly beyond.

But both companies say their first priority is establishing a firm footing in their home territory.

Similarly, while neither group is actively looking for new acquisitions, both say they will be hard-pressed to turn down the right opportunity to bring another strong Aussie brand home.

Mr Presser says that given the right support from manufacturers, shoppers and retailers, Australian brands can look forward to a bright future.

“Brands are like people,” he says. “They just need to be cared for.”