Food & Beverage

The food and beverage sector is Australia’s largest manufacturing industry, employing more than 200,000 people. This $100 billion industry has continued to experience strong results during the global downturn, boasting 5.4 per cent growth from June 2008 to June 2009.

Nowhere is this growth more evident than in the Greater Brisbane region. The growing consumer market, skilled workforce, lower operational costs and excellent infrastructure have drawn companies such as Coca-Cola Amatil, Kerry Ingredients, Smiths Snackfoods (PepsiCo), Schweppes, and Arnotts (Campbell Soup Company).

The ingredients sector in Brisbane is at the forefront of global best practice. Companies choosing to locate in Brisbane can gain advantage right through the supply chain, with access to high quality raw materials, advanced R&D and production technology, and excellent logistics. In 2009, world-leading manufacturer of renewable food and industrial ingredients, Tate & Lyle, invested $7 million in a brand new Australian head office and manufacturing facility in Brisbane’s west. Also included in the investment is a R&D Centre of Excellence, where staff will develop new and improved products for customers in Australia, New Zealand and throughout Asia.

Queensland is also the undisputed capital of beef production in Australia – home to more than 50 per cent of the Australian industry. As a result, the meat processing industry is prominent in the Brisbane region. In 2008 Swift Australia (a division of JBS – the world’s largest meat company) announced a $30 million expansion at their Ipswich plant. Chicken processing and smallgoods manufacturing also feature. In 2008 Inghams increased production at their East Brisbane plant with a $13 million expansion creating 210 new jobs, and Primo Smallgoods will soon commence construction on a state-of-the-art, $70 million factory.

2010 will see the opening of the Health and Food Sciences Precinct at Coopers Plains – 20 minutes from the Brisbane CBD. The first of its kind in Australia, the Health and Food Sciences Precinct will cover both human and animal health and food sciences in one physical location.

Sectors

Ready-to-eat

Brisbane’s convenient location and low cost base have consistently been high on the menu for ready-to-eat (RTE) food manufacturers and distributors. Its close proximity to the lucrative Asian market, the world’s biggest market for RTE meals, makes Brisbane a mouth-watering proposition.

The domestic Australian market is also well serviced from here, with lower costs enabling greater efficiencies. Companies leading the way in the production of fresh-packed meals, salads and vegetable include; Mrs Crocket's Kitchen, Harvest Fresh Cuts, Golden Circle and Mitchell's Quality Foods.

Ingredients

The food and beverage ingredients sector in Brisbane is at the forefront of global best practice. Its success is epitomised by the visionary development of functional ingredients, designed to add value to existing staples.

Brisbane based companies leading the way include:

• Food Spectrum, a $38million annual turnover global manufacturer of functional food ingredients, aseptic fruit and syrup preparations and formulated pre-mixes, as well as stabilisers and fortified blends.
• Kerry Ingredients, having completed a $20 million expansion of their state of the art manufacturing plant in Brisbane’s Australia Trade Coast Precinct.

Meat processing

Queensland is the undisputed home of beef production in Australia, exporting $3.3 billion in high quality beef products. Meat processors in Brisbane enjoy some of the world's best grazing land and access to leading technology in breeding, feedlotting and processing. The industry is well supported by specialist food transport operations, and distribution costs from Brisbane can be as much as half as it is from other cities such as Sydney.

• In 2004, Australian Country Choice (ACC) invested heavily in a world's best practice meat processing facility in Brisbane’s Australia Trade Coast Precinct. This facility, capable of processing 200,000 carcasses a year, allows Australian Country Choice to conduct all its operations from slaughter to value added packaging for the export market within a single cold chain. The success of this Brisbane facility has led to a January 2007 announcement by ACC to expand this facility and further integrate with logistics service provider Swire Cold Storage.

Seafood

With an abundance of natural, fresh seafood on its doorstep, it is only natural that Brisbane’s Seafood industry is performing admirably.

The quality catch taken daily from the waters of pristine Moreton Bay – combined with innovative processing technologies and facilities – means Brisbane is an ideal location for progressive seafood companies.

Companies to have tasted success in Brisbane include;

• Raptis Seafood, one of the largest privately owned fishing and seafood trading companies in Australia,
• Watermark Seafoods,
• Global Seafoods, and
• Seafood Services Australia, a national industry organisation.

Beverages

Brisbane is fast becoming a hub for alcoholic and non-alcoholic beverage manufacturing in Australia. Each year, interstate and international companies move to Brisbane for its logistical efficiencies, convenient location and sub-tropical climate.

Recent AC Nielsen reports reveal that six of the top 20 fastest growing 2005/06 summer categories in Queensland were beverages, including: sparkling juices (up 47.5%), sports/energy drinks (up 35.1%), bottled water (up 23.4%), fruit/tea/coffee drinks (up 22.8%), flavoured milk (up 18.8%) and soft drinks (up 13.6%).

Leading international companies to have chosen Brisbane as their home include

• Lion Nathan,
• Carlton United Breweries,
• Cadbury Schweppes, and
• Berri.

Why Brisbane

A skilled and cost-competitive work force

Brisbane’s excellent education system ensures manufacturers have access to a high quality labour pool of qualified food technologists, nutritionists, managers and manufacturing staff. Labour costs are generally lower than in other Australian capital cities, and labour agreements are the least restrictive in the country.

Growing consumer market

Manufacturing in Brisbane provides access to Australia’s fastest growing consumer market – South-East Queensland.

Cost competitive land

Brisbane boasts high-quality and cost-competitive industrial land, unmatched in proximity to the CBD, ports and national arterial routes. Purchasing and leasing of industrial sites in Brisbane is on average significantly cheaper than comparative costs in Sydney, by an estimated 20%.

Logistics

Brisbane businesses enjoy excellent logistics. An effective, integrated network of roads, railways, ports and airports support the competitiveness of industry and business.

Exports

Brisbane’s close proximity to Asia means businesses are able to service the Asian market faster and more efficiently. State-of-the art facilities at the Port of Brisbane and Brisbane Airport mean product can reach Asian markets up to five days sooner than from Sydney or Melbourne.

Construction

The cost of commercial construction in Brisbane remains amongst the lowest in the country. Current construction cost statistics place Brisbane 8 points below that of Sydney.

Mrs Crocket’s cooks up a storm in Brisbane

When Brisbane company Mrs Crocket's Kitchen was faced with far-reaching business decisions, Brisbane Marketing’s Investment Attraction division threw its weight behind it’s rapidly expanding plans. Mrs Crocket's Kitchen co-owners, brothers John and Phillip George, established a salad making business on the Gold Coast in 1987, at which time they produced just three bulk salads for selected customers

Twelve years and three locations later, the company had increased sales and expanded operations to become a dynamic market leader in the fast-moving fresh food industry. With manufacturing operations at Colmslie in Brisbane and in Sydney, and distribution outlets in Melbourne and Adelaide, the company had become the largest supplier of freshly prepared bulk and pre-packaged salads and vegetables to the food service and retail market on the eastern seaboard.

In 2004 Mrs Crocket's needed to consolidate its operations. Mr George said the company had considered Sydney for its expanded manufacturing base but ruled that city out because of real estate costs and poor access to produce. This left Melbourne and Brisbane, the only two cities with an Institute of Food Technology, to compete for the company's headquarters.

"Victoria gave us enough information upon which to make a decision," Mr George said. "They certainly would have liked us to set up our headquarters and factory in Melbourne. Investment Attraction division, however, went far beyond this and was crucial in assisting us in negotiations with the Queensland State Government and in encouraging us to stay in Brisbane”.

"The Queensland State Government has a commitment to facilitate economic growth and offered strong incentives, and Investment Attraction division was very supportive in our dealings with the City of Brisbane and in helping us get the necessary approvals for expansion”.

"Investment Attraction division worked with us, helping to keep the whole project in perspective and on time, so that we could make a decision based on facts and figures. It has also provided us with ongoing support in dealing with some of the grey areas."

Mr George said the company is very happy with the skills of its Queensland employees and is confident they can handle the doubling of its capacity in Brisbane. "The expansion is also great news for Queensland farmers as we will be sourcing all our product from them," he said.

Today Mrs Crockets is Australia's largest and only truly national supplier of freshly prepared bulk and pre-packaged salads and side dishes to the foodservice and retail markets, employing more than 500 staff and with an annual revenue in excess of $118,000,000.