Tuckatime Foods
Case study
It started as a way of getting out of an unpleasant childhood chore, became a passion and today, many years later, has become a very successful business.
The story of Tuckatime goes back to the day when nine year old Bruce Tucker persuaded his mother to let him trade his chores in the chook house for one in the kitchen, baking cookies for the family. Baking cookies became a passion for Bruce, but he certainly didn’t see it as a career. That path took him into the newspaper industry, then ten years in the computer industry, followed by a very successful seven year stint advising people on insurance, estate planning and financial planning matters. That might not sound like the sort of experience that would naturally lead into food manufacturing, but Bruce must have picked up some essential ingredients along the way. Today, Tuckatime is a major player in the “cookie” market with very aggressive plans for expansion.
Bruce first began thinking seriously about the cookie market in 1984. “I was keen on a change in employment and saw an opportunity to bake and supply cookies. Unfortunately, someone else had the same idea and beat me into the market.”
But that wasn’t the end of the dream. For six years Bruce studied the market before deciding in 1990 that there definitely was room for a competitor. Like many small businesses, getting started took a lot of courage and a high level of family support. The family home and personal life insurance policies were mortgaged and most importantly Bruce’s (retired) father-in-law agreed to bake cookies on a demand basis at night.
For the first two years the business grew slowly, focusing largely on Auckland and Wellington. “We found it much harder than we had expected to break into the market because of exclusive supply agreements. In August 1992, I decided we had to take a different approach and target new markets. We increased our product range, lowered our price and re-targeted the primary/intermediate school, route trade, vending machine and honour vending markets. Overnight we saw fantastic results. Sales in some of our existing outlets increased by 1000% and the take up by new outlets was equally dramatic.”
In 1998, around the same time Bruce was looking to invest in new premises and new equipment, he was approached by a number of individuals looking for investment opportunities. Unsure about how best to value the business and whether he should sell a shareholding in his company, Bruce sought advice from a professional services advisor
After evaluating the business and its potential growth, the advisor advised Bruce that it wasn't the right time to sell any shareholding - excellent advice as it turned out. By the year end, sales had increased by 300% over the previous year and climbed a further 200% the following year. By retaining total control, Bruce not only benefited from the dramatic increase in value but has also been free to take his company in the direction he wants.
Bruce continues his association with his advisor and says the advice provided has always been very helpful. "By reviewing our tax structures, was reduced our tax bill substantially. We reviewed our financial management systems and implemented new and improved systems which have dramatically improved our efficiency and most importantly our understanding of our business performance. Recently, we worked with to develop a marketing plan which includes targeted campaigns to raise our profile in key markets."
