Spotting a niche food market and filling it internationally with marketable brands has required tenacity, persistence and a passion for food from a Melbourne-based manufacturer.
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Entrepreneur: Frank Buontempo, Co-director
Company: Roma Food Products; Orgran Natural Foods
Business type: Specialised food manufacturer
Founded: 1953. Roma Food Products name and processing equipment acquired by Buontempo brothers in 1986. Orgran brand established in 1985
Employees: 40 full-time; 15 part-time
Turnover: (2007 - 2008) $17-22M
Head office: Carrum Downs, Victoria
Contact details: +61 3 9776 9044
The Roma Food Products/Orgran Story
Frank Buontempo was 21 and his brother Max was 19 when they opened their first retail store at Box Hill in Melbourne's eastern suburbs in 1985.
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Their dream was to establish a food manufacturing business based on nutritious alternatives to conventional grains such as wheat, which some people react badly to. Their first product was a pasta range based on rice, millet and buckwheat, which are suitable for people with gluten and various grain allergies.
Frank does not suffer from allergies but his interest in nutrition may well be genetically linked to his Italian heritage. His mother loves to cook. His parents, who migrated to Australia in the 1960s, came from a semi-rural district of the Abruzzo region near Rome and infused their own children with a strong food culture.
As a teenager, Frank developed an interest in alternative foods. He recalls looking at health-food store magazines and reading about the nutrients in foods such as roasted dandelion roots.
Getting the business going was harder than Frank and Max anticipated. Frank says that many people considered the idea of gluten-free food "as a niche business or cottage-type industry because gluten-free food was not generally well known in 1985".
As it grew and needed more production space, the fledgling business moved five times in five years. Frank, who was newly married, spent three and a half years based in Adelaide to oversee production equipment. His wife Lily remained in Melbourne earning a steady income. Frank says: "You couldn't move around like that if kids were involved." He now has two children aged 12 and 14.
The Challenge
To establish a market for gluten-free food products made from alternative grains.
The Solution
One of Frank and Max's first challenges was to persuade big distributors to represent their product. Max used to pack a few boxes of pasta into the back of his panel van and make the rounds of the supermarkets. But lack of reach was a problem. Frank says: "Once [Max] had a few supermarkets it helped in getting distributors to take us on as a stock product."
The brothers formed close ties with organisations such as the Allergy Association Australia and the Coeliac Association of Australia. Frank says: "They gave us feedback and assistance in finetuning our products, which in turn assisted their members." This helped established the credibility of their brand. "The Coeliac Association mentions our gluten-free brand, which assists their members. But it works both ways - we help them to publish leaflets."
Packaging has been vital. To woo a specific market, a product's packaging must contain relevant and correct information. Frank says: "Early on we were quite substandard in our presentation; the packaging was just a clear pack with a little bit of print on it. The early packaging was way distant from what was commercially available. We went on a very steep learning curve. You make that mistake once and then you quickly learn all about the intricacies of printing, how to use colours, information and being economical in printing by using common plates."
The Roma brands' packaging has changed incrementally since the initial repackaging; design continuity helps customers recognise the product. But changes are regularly made, prompted by feedback from distributors and customers when they feel the packaging is becoming dated. Frank says: "It takes time to digest the ideas and think about how the product should look."
Frank is wary of change just for the sake of change. He consults various graphic designers about new designs and asks ‘Is the new design going to produce new sales?' and ‘Does it set us apart from other brands?' A package redesign process - including development, design and reprinting - can take up to eight months and is expensive. Franks says: "Design elements take a while to evolve."
The packaging reflects the products' positioning as specialised foods that are also a nutritious alternative to conventional products. "We want to give the message that our product is gluten-free but is otherwise a mainstream product. It's a healthy alternative. Our products go back to our initial interest in alternative grain nutrition. That's always been our direction."
Roma places a high value on innovation. In September 2008, Roma Food Products was awarded the Telstra Victorian business award for innovation for the Orgran Outback Animals brand of children's biscuits. The product features non-dairy calcium, a high percentage of dietary fibre (12.8%), and excludes the allergens gluten, wheat, dairy, egg, yeast, soy and nuts, making it safe for most children.
The Telstra Award was a big deal for Roma. Frank was pleased for his staff. "They made a lot of noise at the table on the award night that's for sure."
The Result
Roma has expanded its market from supermarkets around Box Hill in Melbourne to North America, Asia, Europe, the UK and all states in Australia.
In the past five years, sales have been steady. There has been a 5% increase in retail outlets in Australia and five extra full-time staff have been employed at the Carrum Downs plant.
These days, Frank, 46, has weekends off and relaxes by walking and kicking the soccer ball with his son. "It's important to maintain a balance or you burn the family out."