Honey Bun looks to reduce sugar content in products
Honey Bun donuts via the bakery's Facebook page.
Baking company Honey Bun will this year, focus on developing products with reduced sugar content and fewer calories per serving, as it moves to double its capacity output following the completion of new operating space.
Honey Bun last May officially opened its new 11,500 square feet facility which sees see greater automation and efficiency.
In outlining its plans for 2019, the company, led by CEO Michelle Chong, said Honey Bun would focus on product development, which will see it incorporate the use of more indigenous products and increase sales and marketing to maximize the opportunity presented with the new building.
“Our strategy moving forward is to continuously build on our capacity, improve on our efficiency and continue to invest in technology as our foundation for growth,” Honey Bun said in its 2018 annual report.
Honey Bun has also employed the services of an international consultant to provide advice on strategies to transform the company under a new vision.
“In the development of Honey Bun’s strategy for 2019, the board of directors approved the revision of the company’s vision statement to, ‘Making life more delicious for everyone everywhere’ and our mission statement to ‘Leading through innovation, achieving success for our stakeholders and serving the greater good of mankind’” the company said.
The Retirement Crescent-based manufacturer is also looking to generate more sales from its pocket-size rum cakes, which it says has started to contribute to export growth and has gained tremendous local interest.
“In spite of the capacity constraints, several of our winning products continue to grow significantly,” the company said.
Honey Bun’s performance for the financial year 2018 shows a five per cent increase in revenue to $1.3 billion when compared to $1.2 billion for 2017. Pretax profit decreased by seven per cent to $98 million during the year.
It said the performance reflects an inability to meet product demand as its previous capacity hindered growth.
The company’s balance sheet also shows an increase in noncurrent assets of 24 per cent from $467 million to $579 million while investments increased from $78 million to $85 million.
The value of the company has increased steadily over the years from $284 million in 2012. During the year, over $149 million worth of capital was reinvested in the form of assets. This was mainly from the new building and investments in equipment.
Honey Bun, a wholesale bakery produces cakes, buns, bread, and various other pastries, under brand names Goldie, Buccaneer, Island Bites, Honey Bun, Goodie, and Shorty.