From accommodation to tea rooms and bread – how one business in the Solomon Islands diversified products to survive
Family run Ibubu Bakery in Munda manufactures and retails 18 different bread products for consumers in Munda, Noro and Gizo, the three trading centres in the Western Province of Solomon Islands.
Tony Langston and his wife, children and wider family operate the bakery, having diversified from accommodation in 2017 – and it’s lucky they did. With the pandemic, accommodation income plummeted, but as Tony says,
So long as we can keep making food, we have customers. Food is good business, everyone needs food.
Without much local competition for baked goods, this diversification was an obvious choice.
We have been able to sustain our cashflow but that doesn’t mean we haven’t faced other issues. The restrictions in terms of movement with lockdowns and supply chain issues has meant the kava boats can’t come to bring us essentials like flour, and supply is unreliable and expensive.
The cost of supplies has increased, and with fewer supplies able to reach Munda, fewer goods can be produced. This has necessitated staffing changes.
Most of the staff are close relatives who walk from their village setting to work each day. We have rostered them through the pandemic to ensure some money goes to all families rather than laying people off. We didn’t want to lose employees, so we are helping them stay in employment. Our staff is really loyal.
To get ahead of the changes brought about by the pandemic, Tony applied to Business Link Pacific for an Adaptation Grant. With his background in banking, Tony was well set up to apply for the Adaptation Grant.
He notes, “It would be hard for businesses who don’t have all the financials to hand, but there was help available from BLP if we had needed it.
The extra cashflow was used to set up a tea shop and to introduce new products into the bakery. Working hand in hand with a bakery in Noro, they have combined forces to secure supplies collectively and Ibubu now include some of the other bakery’s products.
This has been helpful for training staff, particularly the bakers so all products are up to scratch.
The tea shop has been a success, with customers purchasing a cream bun from the bakery, then buying a cup of tea to go with it from the tea shop. Of course during Covid this has been restricted to takeaway only, but Tony is confident this won’t last much longer, and he is well set up for the future.
ENDS
The Finance Facility enables access to capital for stabilisation, recovery and growth of viable but financially distressed businesses in the Pacific Islands due to the impact of COVID-19 on the regional economy.
The Facility opened applications to Business Adaptation Grants across eight Pacific Island countries in January and June 2021. Adaptation Grants have benefitted over 200 businesses to date, and Business Link Pacific is currently processing a similar number of grants to be disbursed before the end of the year.
To further support recovery and growth, Business Link Pacific is negotiating key partnerships with Financial Institutions to offer concessionary lending to small businesses in the region and will soon make information available on accessing those products. The Finance Facility also offers curated information about financial products for businesses on its free online tool, the Finance Finder; visit today to find out what is available to your business right now.