Our five-year path to growth

Project 50 2x

Despite the bruising year that every business in our sector has suffered under lockdown, Brand Architekts enters FY21 and beyond with real optimism. Indeed, we are even quantifying our positivity through our Project 50 goal.

The business now enjoys the undistracted focus of being a pure-play brands enterprise. It is led by a fresh management team with a wealth of sector experience. A strong balance sheet from our manufacturing disposal also provides the resources we need for strategic acquisitions and investment.

These assets, coupled with an already-strong portfolio, have led us to set a transformational target: to grow the Company from a £16m business now into a £50m business within the next five years.

To achieve this, Project 50 demands, and is receiving, new thinking, investment and focus across four key pillars.

Operational Efficiency

Description

We invested in new financial control systems for the transition to a brands-only business and the change to third-party manufacturing.

The focus now is to implement further operational improvements that will give us much greater visibility for future planning and demand.

Our immediate priorities

- to invest in business intelligence software that will help us anticipate future requirements, trends and opportunities

- to be able to analyse data effectively and manage inventory more efficiently

- to be equipped to forecast with greater accuracy

Optimising Our Portfolio

Description

Coming from a heritage of creating brands and products can, over time, create an unwieldy portfolio of mixed performers. FY21 will see us rationalise our line-up so that our best assets, together with new product development, receive the full benefit of our energies and resources.
We will continuously improve those products and support them with marketing spend while, in parallel, reducing the tail of lesser performers. In turn, this ‘fewer, bigger, better’ approach will reduce cash tied up in inventory, reduce warehousing and logistics costs, and meet our retailers’ desire for simpler SKU management.

Our immediate priorities

- to audit our portfolio and consult with retailers, leading to a possible reduction of SKUs in the region of 25% in the next two years

- explore international opportunities that maximise the value of our brands

- seek M&A deals that complement our existing brand strengths

Channel Development

Description

We will continue to strengthen our omni-channel strategy, following the simple logic that whatever and however the consumer wants to buy, we will be there.

In traditional bricks and mortar, our products and exclusives are listed in the national grocers. For everyday value in a tough economic climate, we’re in the value retailers. If consumers want to buy online, we’re readily available with the major e-tailers. During lockdown, e-commerce, together with the shops on our own sites, played a critical role in delivering sales and maintaining our relationships with consumers.

Our immediate priorities

- invest in, and ramp up, direct-to-consumer (DTC) activity across all our main brands

- target DTC growth to achieve a minimum share of 20% over the duration of Project 50

Being A Responsible Business

Description

Acting responsibly is not only the right thing to do; it makes our business a better partner for our retail customers, and a choice that our end-consumers feel good to make. We’re proud that our brands have grown largely through word of mouth, from consumers who are rightly selective about what they buy, and from whom.

We also want to be an employer of choice for great people, wherever they come from and regardless of gender, orientation, age, ethnicity and disability.

Our immediate priorities

- to embed our Sustainability Blueprint, launched in September 2020, across the business

- draw the roadmap that will take us to the destination of being carbon-neutral

- assess where we can make a meaningful difference by supporting community and charitable activities