Baking behemoth Goodman Fielder has announced that it will keep 35 or less of its 53 factories open and focus a narrower range of products.
Goodman announced a $146.9 million loss for 2011-2012 and will reduce its bakery division’s range and network.
Last week Goodman sold its Integro oil business to GrainCorp, as the company narrows its scope to five main products and attempts to return to profitability.
“This is not necessarily about jobs going. It's about having fewer but bigger and better bakeries,” said spokesman Martin Cole of the factory closures, mainly in Goodman’s baking division.
Sue Barrett, CEO of Barrett Consulting, told Smart Company that the company’s decision would help it refine its strategy.
“Many businesses struggle to figure out what they are about,” she said.
“Having your message being clearly understood in a noisy marketplace, much like the one we're in, is essential. And a lot of organisations are realising their product in and of itself is not the central focus of sales.”
GF will increase its marketing spend by 90%, but it will be focussed on only five (out of a possible 30) product areas.