From its inception, biscuit producer Luken and May intended to export. Three years ago the company began preparing itself for export’s high volume rigours by supplying to domestic supermarkets, retailers and airlines. Then Ms Luken visited Europe to get a feel for the positioning of Luken and May’s competitors, and to talk to potential buyers.

“They were just besotted; they were beside themselves,” Ms Luken said. “I went from customer to customer and they just said we want this and kept ordering it. I was dazzled by the dollars.”

Eager not to miss an opportunity, Luken and May established a warehouse in the UK and attempted to field the orders. Soon the company was exporting approximately AUD$800,000 into Europe. While Ms Luken was pleased with the sales and attention, she was concerned about whether the company could sustain its export endeavour.

“What I had done was bitten off more than we could chew,” she said. “We didn’t have the skill set to be able to manage such a fast growth on the other side of the world. We said this is crazy; we’re in six distribution channels, let’s slow down. We know we’ve got a market over there, we know people love the product . . .”
It was time to consolidate the foundations at home. The company spent the ensuing year developing structures and processes which would foster export growth. That meant closing some very large doors.

“I actually went over to Tesco and Sainsburys and said, ‘Guys, I want to pull out of this market. [But] this is where I am and what I’m doing, can you wait? And they said, ‘That’s great, we understand’”, Ms Luken said. She added that she speaks to Tesco every month to keep them “in the loop”.

That kind of honest approach is part of Luken and May’s philosophy. The company aims to have buyers and customers view its biscuits as part of a lifestyle choice. A big admirer of Anita Roddick and The Body Shop, Ms Luken sees a deep connection between people’s philosophies and the businesses with which they choose to deal.
“Luken and May is about creating beautiful biscuits and it’s about the lifestyle we have here in Australia that everybody envies: light and space, a clean and green environment and a different way of doing things; more relaxed yet passionate. And we have a reputation of being able to deliver. It’s about balancing work and life . . .that you can actually have your cake and eat it too . . .”
Or your biscuit . . .

Ms Luken said Luken and May’s “lifestyle choice” approach to branding and marketing, coupled with a warmth and honesty clients see as peculiarly Australian, will provide their point of difference. She said the next year will see Luken and May building upon the foundations it’s taken pains to strengthen.

“We know our product, we know our customers and we’re taking that next step into becoming a solid brand that can grow into a much bigger operation. [But] we’ve had to say, ‘Hey, we’ve got to learn how to do this.’”

Luken and May is a founding member of the National Food Industry Council (NFIC). It’s one step in a process that Ms Luken said is vital if Australian food is to develop export potential: teamwork.
“We’ve done incredibly well in the wine industry, but they’ve all got together and said, ‘Let’s go overseas, let’s work together to grow the segment.’”

Ms Luken said the food industry needs to look to the wine industry’s strategy on export. Rather than assessing individual companies’ points of difference, there needs to be more attention on Australian food’s point of difference.

“I can’t do it myself; I need everybody else. I need to work with the other biscuit manufacturers; I need to work with the other food companies to ensure we develop an innovative offer with excellent sales potential that can be sustained.

In terms of its own export future, Luken and May will naturally gravitate to the UK where it has established relationships. Europe is also on the radar and the company has for some time been exporting to Singapore. China looms large, and Japan has always been a favourite market for Ms Luken.

“I went to Japan when I first set up the company because I thought if we set a standard as high as they have then the world is our oyster; we’re going to be able to sell anywhere. So that’s what we had in mind when we first started to design our packaging and our products; what we’re doing very much has an influence from the Japanese market.”

Luken and May exported to Starbucks in Japan by selling in bulk and then having a Japanese firm package their biscuits.

“They made it up into their own intricate packs that we’d have little expertise of doing over here; we don’t have the skill set or the equipment”.

And further opportunities appear to be opening up in Japan. A Japanese company is looking to establish a packaging house dedicated to Australian products.

“There’s always a way of working,” Ms Luken said, adding that Luken and May had “gone out and tasted the market” to understand how to package and present its product. “That’s what gives you the energy to pursue the idea of having a large proportion of your company exporting.”