Reference no: EM133526846
Question: how could SAP Enterprise Systems technologies enable Cookie Time to be: adaptive, intelligent and sustainable.
Cookie Time says it is revelling in the "Costco effect" and has increased its sales by more than $1 million since the retail giant opened its first Auckland store in September 2022. The Christchurch-based business founded by Michael Mayell in the early 1980s has been selling a pallet of its cookies each day since the world's second-largest retailer launched in New Zealand.
Guy Pope-Mayell, managing director of Cookie Time, said the cookie manufacturer had "had tremendous success" with Costco in New Zealand, so much so that it was now set to supply its cookies for other Costco stores internationally.
Cookie Time Group management is also now looking at opportunities to expand its Templeton factory, along with its Cookie Time Factory Shop and Bakery to meet long-term demand.
"Yesterday and today we are producing two 40-foot containers - 80 pallets of product - that are going out to Japan later this month to be sold in the middle of December.
"The Japan order is two to three days of production time for us - and that's just a trial. If the product sells well in Japan and other countries come on board, it will further accelerate the growth Cookie Time is seeing significantly."
Pope-Mayell said the Costco effect had done wonders for the $60m Cookie Time business. Until now, Cookie Time has generated sales from orders received from Costco in excess of $1m and is preparing to put on another manufacturing shift in order to keep up with current demand. Cookie Time was growing at around 30% per year prior to Costco's New Zealand launch, and it anticipates that will almost double as more Costco markets come on board.
The Costco effect relates to ongoing strong consumer interest and increased competition within the grocery supplies sector, which forces us and other operators to keep prices competitive. Not only was Costco giving consumers more options and access to competitive prices, but the opportunities for local manufacturers were also significant, Pope-Mayell said. Resulting in both burgeoning market demand and increasing competition.
Costco approached Cookie Time to arrange some products for its Auckland store ahead of its opening in September. Cookie Time developed a product for the Costco store and was then later asked to produce more of it for other stores across the Asia Pacific region.
"Not only have we had success in Costco New Zealand, we've also now had success in Costco Australia, Japan and Taiwan, and China are looking very favourable as well."
Cookie Time has been in Japan for 10 years, operating a Cookie Time bar in Tokyo, and has recently started exporting its cookie pouches into that market.
"The Costco order for Japan has tipped Japan from us exploring an export market to succeeding in an export market."
Pope-Mayell said Cookie Time Group would be changing its growth strategy and operational plans to continue to see the gains from the Costco connection.
"We're certainly going to be increasing our shifts and of course in today's world that brings about new challenges like finding new staff to man manufacturing, but the opportunity that has been presented at the moment is huge."
Cookie Time manufactures its cookies in Christchurch. Pope-Mayell said that although the current factory had capacity to meet current demand, management was now planning new factories in Christchurch and Auckland to meet future demand.