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Section B – minor case study
Van Diemen Group
Restructuring Van Diemen Group
Van Diemen Group (VDG) is an Australian Stock Exchange (ASX) listed Australian business with headquarters in Melbourne and operations throughout Australia as well as in New Zealand, Malaysia, and China. The company has over 1000 employees worldwide and consists of seven divisions, each built around a single brand (see Table 1).
SectionC – major case study
Major Case –
Nespresso and the demand for coffee capsules in Australia
1 The Australian coffee manufacturing industry
A About the industry
Background
Coffee beans were brought to Australia by the First Fleet in 1788 with the intention of growing coffee in the colony. However, growing conditions were not suitable, resulting in the continued importation of coffee.
The arrival of migrants in the Gold Rush era in the 1890s was a major catalyst in growing the demand for, and supply of, coffee.
The history of instant coffee began during World War II when it was provided to American soldiers. Instant coffee gained popularity in America through the 1950s. The increase in international travel saw instant coffee spread to Australia.
The popularity of the café style espresso that is prevalent in Australia today began with the invention of the coffee machine by Achille Gaggia, an Italian café owner. The Gaggia machine heated and pressurised water and filtered it through ground coffee beans, creating the espresso coffee. There has been wide debate as to when the first Gaggia machine was introduced into Australia, however, it is generally agreed that four machines were imported into the inner suburbs of Melbourne around 1954. Embraced and championed by a generation
of Italian migrants, espresso coffee gained popularity and has since been the preferred taste for higher-quality
coffee for many in Australia.
Coffee is now the second most preferred beverage behind water.
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