We helped Arnotts make $5.0M EBIT in 12 months on $100M in revenues

The Best Chocolate Chip Cookies 2

Written By

Ron Wood

Ron Wood

Pricing Strategy Expert


Case Study – Arnotts

  • 41 key account managers setting their own pricing strategies
  • Channel clashes between Woolworths and Coles resulting in retailer “fines” deducted off remittance.[+$200K]
  • Excessive discounting driving revenues but lowering profitability below baseline levels
  • Substantial and costly inventory builds due to forecasting errors
Outcome Required
  • Optimised price points and strategy for iconic brands like Tim Tam and Kettle Chips
  • Elimination of channel conflict
  • Increased forecast accuracy to reduce excess stock build up
  • Improved brand profitability
Action Taken
  • Detailed analysis and pricing strategy developed for every promoted SKU
  • Centralised pricing strategy and team established
  • $5.0M trade spend improvement in 12 months

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