Bellamy’s Organic recorded $200 million in revenue in 2021, but CEO Tarsi Luo is not stopping there

At a time when operating globally is arguably trickier than ever — thanks to pandemic-related supply chain challenges and shipping delays — one of Australia’s biggest baby formula companies is hitting the accelerator.

Bellamy’s Organic, headquartered in South Melbourne, is forecast to grow 20-25% this calendar year, up from $200 million annual revenue in 2021.

It’s a long way from its beginnings as a small family business masterminded by Tasmanian mother Dooley Crighton-Bellamy, who wanted an organic baby food option for her first child.

With then-partner David Bellamy and a small band of family and friend investors, the business was founded in the early 2000s, and later bought out by Tasmanian Pure Foods.

In 2019, after some rollercoaster years including board upheavals and a very close brush with going under, the company was acquired by dairy producer China Mengniu Dairy. The $1.43 billion takeover was overwhelmingly approved by shareholders of Bellamy’s.

Last May, Tarsi Luo joined as head honcho, becoming something of a rarity in Australia: a young female Asian CEO.

With a background in technology, the 37-year-old moved from China five years ago, shifting into the area of fast-moving consumer goods.

Key takeaways

1. To mitigate international delays, be agile and find strong export partners

2. Develop new products quickly, without sacrificing quality

3. For overseas-born leaders, don’t be afraid to speak up and ask for clarification when needed

Eyes on international growth

Luo, a mother of two, has huge plans for the future of Bellamy’s, which has 200 staff globally, 150 of which are based in Australia. Along with South Melbourne, there are offices in Tasmania, Singapore, Shanghai and Hong Kong.

Globally, its products — which include baby formula, baby cereal, savoury meals and snacks — are sold in Coles, Woolworths, Chemist Warehouse, IGA, many pharmacy chains and on Amazon, as well as elsewhere online.

In Australia, it’s the top-selling organic infant formula, while in China, it’s the number one imported organic baby formula through cross-border e-commerce channels.

“We are actually looking at how [to] bring the business forward, so we are looking to become (more) international,” says Luo.

Outside China, Luo says Bellamy’s is strengthening export markets in Malaysia, Singapore and Vietnam. And, after 18 months of legwork, the company has also just got the green light to export into Indonesia, and has the Middle East in its sights.

Pushing out new products

Luo says expanding Bellamy’s range of products, which are made in Melbourne, is a key part of future growth.

“Our main focus is not only bringing the best formula, but also baby snacking [and] baby food,” she says.

“We used to only be able to provide products for 0-2 years, but we’re putting product from 0-6 years old, so we’re extending that variety.”

This year alone, the company is introducing 16 new products and boosting its advertising efforts.

“My strategy is very straightforward,” says Luo.

“It is simple, but it is all about execution.”

“It is always easy to say, I’ll bring 15, 20 SKU (stock keeping unit) products, but it’s how to make it happen. The second thing is how to make it happen with high quality and speed.”

Luo says traditionally a new product can take up to 18 months. But her aim is to have the best quality new products in six months, from concept to delivery.

Bellamy’s Organic is planning on launching more products this year. Source: supplied.

Pandemic delays

Stepping into the role of CEO mid-pandemic can’t be the easiest of asks.

As with many businesses, Bellamy’s has faced challenges with remote working, shipping delays, supply chains and testing its labour force daily.

She says supply chain issues are starting to get easier, but there are still shipping delays to Asia of seven to 10 days (added to the two months it usually takes a product to travel by sea).

“Sometimes (the) consumer doesn’t want to wait for three months to get a parcel,” says Luo. “It’s similar here — when we shop on Amazon, we don’t want to wait for two, three weeks, we want to get it in two days.”

To mitigate these problems, Bellamy’s sends its products to duty-free zones in countries such as China, and works with local distributors.

“So we are ready to ship in China already directly, from the duty-free zone to the consumer’s hand, which only takes two to three days.”

The Chinese market

China, home to more than 1.4 billion people, can’t get enough of Australian baby formula.

Luo attributes this demand to Australia’s “air, the water, the milk, the lifestyle”, but says birth rates in the country are declining, which obviously can affect sales.

“It’s probably the lowest in 90 years,” says Luo.

Luo, a mother of two herself, says the reasons for the dropping birth rate include cultural change, and financial stress brought on by the pandemic.

“A lot of people probably don’t want to have a baby right now.”

The daigou market — where Chinese tourists, expats or students sell prized baby formula back to their home country — has also taken a big hit, with COVID-19 restrictions seeing many sellers leaving Australia.

Life as a female Asian CEO

For Luo, being a female Asian leader in Australia, and in a boardroom that’s usually full of men, can be “very challenging”.

She says for many Asian female leaders, especially from China, English is not their first language.

“It is sometimes that we feel a little bit shy to speak up, and also sometimes I am in the environment where I have to say, ‘I don’t understand that’.”

However she has learnt to be confident, bring her considerable knowledge to the table, and be willing to ask again.

“Sometimes I come back to myself and say, hey I’m the one speaking three languages,” she says.

Her advice for other would-be Asian female leaders?

“Talk to your leaders, learn about the industry, learn about yourself and how to talk to your HR,” she says.

“Because if you don’t speak up, fight for your opportunity and just wait around, the opportunity may never come to you.”