Ferndale Foods Australia is investing A$20m ($13.1m) in a new manufacturing facility to meet the growing demand for better-for-you bars and snacks.
Once operational, the FoodLine Australia facility in Ballarat, Victoria, will have the capacity to manufacture 180 million bars annually, addressing the increasing market needs, according to Ferndale Foods Australia.
In addition to providing co-manufacturing services to existing customers, the facility will also introduce its own line of healthier bars and snacks. The expansion is expected to create employment opportunities for up to 30 people over the next 18 months, with production slated to begin next month.
Ferndale Foods Australia is a leading supplier to major retailers such as Woolworths, Coles, and Aldi. With 40% of its business dedicated to branded products and 25% to private labels, the company aims to capitalize on the growing market for healthier bars and snacks in the country. Coles’ “health in every aisle” strategy further highlights this upward trend.
CEO Leigh Edward emphasized, “Through extensive research and consultation, we have identified a significant industry gap – the need for a comprehensive, state-of-the-art manufacturing hub capable of producing a diverse range of bars, including protein, muesli, low-sugar, sugar-free, gluten-free, and high-fibre options. We are committed to optimizing production, storage, and shipping processes for our larger customers, offering convenience and cost savings.”
Ferndale Foods Australia, established in 1995, is renowned for its low-sugar products. Under its Ferndale Confectionery arm, the company manufactures confectionery brands like Jila Mints and Jols Pastilles, while its sibling brand, So Soft Marshmallow Co., specializes in marshmallows. With exports to Japan, South Korea, New Zealand, and the US, the company currently achieves annual sales of around A$25m. However, it anticipates that the new facility will boost sales to A$40m within 12 months and A$50m within 18 months.
According to Ferndale Foods Australia, staff numbers are projected to increase from 65 to over 100 by mid-2024 upon the launch of their new better-for-you brands.
