Husband and wife team, Alex and Andrea Vowles, produce feta cheese, sour cream, cream cheese and yoghurt in Benoni. They have a combination of skills, experience and support that have seen them win against large competitors when it seemed all hope was lost.
Where it all began
Initially, Ultra Food Innovations supplied three wholesale distribution clients. During this time, Andrea joined the business to head up sales and food safety. By recommendation from a friend who was also in business, the team then employed the services of a GROW business coach in 2013, since they were always looking for opportunities to learn more and do business better as they scaled up.
A differentiated strategy that made all the difference
- Niche servicing of wholesalers and distributors that sell to hotels and restaurants.
- Next-day delivery – a solution that was important to their target clients, as managing stock was key to their performance.
As head of sales, next-day delivery was a key selling-point for Andrea. Many of the larger competitors couldn’t offer such attractive lead-times. Focusing on their target clients and providing the next-day service they needed, Ultra Food Innovations grew its client base to nine large clients and increased revenues by 500%! They are currently working on increasing capacity to keep up with demand.
Putting their differentiation strategy to the test
Their strategy was put to the test when one of their biggest clients put a tender out for manufacturing of their own yoghurt brand. Ultra Food Innovations competed against big, largely retail-focused competitors. Aware that Ultra Food Innovations had won a significant share of the wholesale market, one of the competitors undercut them on price and won the tender, leading to termination of Ultra Food Innovation’s contract.
Surprisingly, Ultra Food Innovations still received orders from the client after this. When the client asked its buyers why they weren’t buying from the newly appointed supplier, the buyers complained, not only about the long lead times, but also about how the new supplier had subjected them to poor treatment in the past.
The client then reversed their decision to buy from the new supplier and entered into a new agreement with Ultra Food Innovations, demonstrating that a good strategy can make one competitive against lower prices and much larger competitors.
And competition from smaller companies?
It goes to show that lower price and bigger brand names don’t always prevail if your strategy truly sets you apart. What’s your point of difference?