Jordans takes on the big players
"It is more complicated than organic," Murphy told a meeting of the Food, Drink and Agriculture group of the Chartered Institute of Marketing recently. "Jordans and the other firms in [conservation grade] haven't done a very good job of selling it."
Murphy added: "You will see over the next 12 months we will be focusing much more heavily on that message because it is a real point of differentiation and it does make a difference."
Jordans & Ryvita Company was formed as a joint venture in 2008 between Associated British Foods and the Jordan Brothers. It has a turnover of around £125M with around one-third of its sales overseas, said Murphy. It has three sites in Dorset and Bedfordshire and employs around 500 people.
It claims a 3% share of the UK cereals market, but seeks to double that in future by direct engagement with shoppers who are concerned about the environmental impact of their food. Murphy hopes his firm's ability to move quickly, with its focused innovation, will enable it to steal market share from its rivals Nestlé and Kellogg.
In contrast, the company is a big player in the savoury biscuit category, extending its Ryvita range from its origins to improve taste, while retaining its "healthy, natural" credentials, remarked Murphy.
"We've just finished a great year, we are doing very well, with top line growth of about 10% and our profit growth has been significantly more than that," said Murphy. However, he admitted that the first 18 months had proved tough as the two businesses were being integrated and inflationary pressures took their toll.
The company has "strong links with the countryside", and was a founding member of The Prince's Countryside Fund (TPCF), which was established to support rural businesses. It purchases 90% of the UK's rye crop for use in its Ryvita crisp bread range, much of it sourced locally in Dorset.
Murphy stresses that his firm's close connection to the TPCF is because "we think it is right thing to do". But, he added: "There is a less noble reason and that is we believe, with time, it will become a point of differentiation and that will help us underpin our brands and help drive consumer preference."
