Kaddy’s newly-appointed CEO Steve Voorma has undertaken a strategic review of the business and as a result, Kaddy will now reposition its fulfilment division as a “pure play B2B Fulfilment services provider” by exiting all consumer Fulfilment services.
Kaddy will now operate two divisions; Kaddy Marketplace, a wholesale trading platform that connects trade buyers with beverage suppliers across Australia and Kaddy Fulfilment which provides specialised B2B warehousing and logistics services to the Australian beverage industry.
“Having completed the first stage of my strategic review, the potential of what we’re building is clear,” Voorma said. “We are generating good growth momentum with Kaddy Marketplace which has significant scalability across the industry with a growing base of 3300 buyers and the 2800 brands it represents. That said, the opportunity to be a best-in-class end-to-end Marketplace and Fulfilment solution in B2B relies on operational excellence across both divisions.
“Unfortunately for our Fulfilment division there have been extreme complexities by offering trade and consumer services which would require significant investment to get right.
“We have taken the decision to double down on our strengths and exit the consumer Fulfilment business to become a pure B2B player and deliver on our mission of making wholesale beverage distribution easy.”
Kaddy Fulfilment offers 35,000sqm of warehousing with state-based depots in Sydney, Melbourne, Adelaide and Perth, as well as a National Distribution Centre (NDC) in Albury.
Voorma added: “By removing complexity and noise from our business, largely driven by our consumer Fulfilment business, we will be able to champion the customer and dial in our systems and processes to remove duplication and inefficiencies. This will support our Marketplace business and drive a culture of operational excellence across the entire Kaddy business.
“It’s an exciting time for the Company as we make these changes and we’re committed to delivering a superior customer experience.”
The new go-to-market strategy will take effect immediately with last consumer deliveries being made by 7 February 2023. In a statement, Kaddy said this simplified focus will allow the business to continue to invest in its trade-focused Kaddy Marketplace and Kaddy Fulfilment divisions.
It also provides more clarity around the value proposition of the Kaddy business model, which after the changes will become 100 per cent trade focused.