Cereal Killer

The Carman's Story

In 1992, Carolyn Creswell was an arts student who helped support herself by working part-time at a muesli-making business. When she learned that the tiny business had to be sold, Carolyn spotted an opportunity. Rather than become unemployed, she offered her boss her life savings - $1000 - to buy the business. When no better offers were received, the owners agreed and at just 18 years of age Creswell found herself the owner of Carman's Fine Foods.

Creswell credits her parents for giving her the confidence to make it on her own. "They said ‘Go for it'. I can never underestimate the impact it had that my parents were positive about the idea."

Creswell continued her studies and spent her spare time making muesli and supplying it to health food stores and cafes. Steadily the business grew from a part-time job producing one tonne of muesli a month to a business that now makes more than 30 tonnes of muesli a week. Carman's muesli and breakfast bars are now available in Coles and Woolworths stores nationally and are on the menu with Qantas Airways and the Lite n' Easy weight-loss program.

The Challenge

Getting the product into supermarkets.

The Solution

By 1995, Creswell had graduated with her arts degree and wanted to develop the business. She made appointments to visit supermarket head offices and present the Carman's range of muesli. But the responses ranged from politely negative to much worse. Creswell attributes this to muesli then being considered a health food rather than a mainstream breakfast cereal. She says: "I recently looked back over a pile of rejection letters; one just had a great big ‘NO' scrawled across it."

But Creswell did not give up. In 1997, she presented her product to a Coles buyer who surprised her by suggesting she could have a six-month trial with some local Coles stores. The trial would involve Creswell delivering and merchandising her products in 20 Coles stores. Creswell says: "After he told me that, I walked into the foyer and burst into tears. Then I rang my mum and dad."

Although the buyer in head office had agreed to Carman's products being sold, Creswell still had to negotiate with the grocery manager in each store. Creswell says: "I would call the grocery managers each week and ask if they wanted an order. Then I would load the product into the back of my Daewoo hatchback and queue at each store's loading dock behind the semi-trailers doing their deliveries. Later, I would stack the product on the shelves to make it look great. Grocery managers told me they had never seen anything like it."

After the six-month trial, Coles saw that Carman's products were selling well. Carman's muesli was then allowed into the distribution centre to be stocked in more stores throughout Victoria. Coles suggested Creswell employ a broker to handle the merchandising and negotiations with the supermarket.

There have been problems. In 2001, Woolworths stores began stocking Carman's, but a new buyer decided to delete the whole range in 2003. Creswell says: "When Woolies decided to scrap everything, it was definitely a low point. I had to work to pick myself up from such a big blow."

This was when having a broker paid off. Creswell's broker, Teamworks, began renegotiating with Woolworths stores, which lead to the Carman's range being reintroduced in 2004.

Creswell says: "Our success with Coles proved we were providing a product that customers wanted." Creswell and her broker meet annually with the supermarket buyers to conduct a business review. Creswell says: "We talk a lot about shelf position. That is determined by head office and it's something we are constantly negotiating. Our bars are always down the bottom; we'd like to see them at eye level."

The Result

Carman's products have steadily spread through the Coles network, from Victoria, to New South Wales and then nationwide since 2000. In 2006, Woolworths conducted consumer research, blind taste-testing various muesli products; Carman's muesli out-rated the competition, according to Creswell.

In 2004, Carman's was approached at the trade exhibition - The Fine Food Show - to become a supplier for the weight-management company Lite n' Easy.  In 2006, Qantas approached Carman's to become a supplier for their in-flight catering and the contract has just been extended.

Carman's turnover has been remarkable over the past five years. Revenues have risen from $1 million in 2003 to a projected $10 million for the 2006-07 financial year.

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