Fine Country Fine Cakes

Short Case

Fine Country Fruit Cakes

September 1994 was a year to remember for Jean and Dave Fulbright! Their twin sons, Michael and Alan, then five years old, started school, and in the same month, Dave, a 29-year-old master baker at a large bakery, was made redundant. Jean, who had a part-time secretarial job with a local builder, saw this misfortune to be an unrepeatable opportunity. They had always wanted to work together, and it seemed to be a good chance to set up a small speciality business, based on Dave’s skills and financed by his redundancy payments plus a small loan.

Traditionally, small local baking and confectionery businesses produce a wide range of breads, cakes, biscuits, etc., many on a daily basis. This involves a very early start (4 am), high complexity and considerable risk. Dave wanted a ‘simpler’ business that would involve relatively normal hours of work, for both himself and his wife. Neither wanted to be employers; the business would be run by just the two of them. Dave felt that his greatest satisfaction came from producing high-quality decorated fruit cakes, so together they decided that there was an opportunity to specialize in this product. Using an old family recipe, samples were made and packaged. ‘Market research’ was confined to taking these samples to various retail outlets in the area; the reaction was so enthusiastic, and the potential margin seemed so high, that by January 1993 they were in business. They rented a small modern factory near home, modestly equipped with weighing and preparation equipment, a large 15 kg food mixer, two small catering ovens, a small coolroom and sundry utensils. Talking to a friend in spring 1997, Dave recalled:

‘In early 1995 we only made one size: beautiful 2 kg cakes, symmetrically decorated on top with a pattern of almonds, cherries, walnuts and ginger. We sold most to cafés and restaurants; their customers loved portions of them with their teas/coffees. Demand ran at about 150–200 cakes a...