Case study: New world of opportunity for nougat

The combination of tradition and innovation has proved a wining recipe for Mondo Nougat.

The business is currently undergoing a makeover – from a factory wholesaler of Italian cakes, biscuits and pastries to a successful retailer and exporter of high quality hand-made nougat.

And the family-run business is continuing to grow, having recently relocated to the Swan Valley, increasingly recognised as a mecca for gourmet food and wine.

Andrea Romeo has been the driving force behind this growth. With tertiary qualifications in marketing and commercial law, Mr Romeo filled the role of sales manager before taking the helm and guiding the business to its most successful position yet.

The Romeo family moved to Australia from Italy in 1988. With father, Alfonso, having been a pastry chef and café operator in Italy, the family started Mondo Patiserrie in 1992, producing Italian desserts and delicacies, including nougat at Christmas time in the time-honoured European tradition.

In 1997, after overwhelming demand from retailers and customers, the company began producing nougat all year round.

Two years later, the Romeos decided to change their business to focus solely on the production of nougat, moving operations to a purpose built 190 square metre factory and retail outlet in Morley. The new facility opened to the public in 2000 under the new name of Mondo Nougat.

The business experienced rapid growth, and eventually began exporting to Singapore, Indonesia, Malaysia and New Zealand.

But with the number and size of orders increasing, the business began to outgrow its factory space.

Mr Romeo said the family then began to look for a bigger factory in the industrial areas. However, it was a chance Sunday drive through the Swan Valley that inspired the Romeos to think outside the square.

“We were driving through Swan Valley and saw the old cheese factory building for sale, and thought ‘why not’,” he said.

The family saw the Swan Valley move as a great opportunity to re-incorporate the manufacturing and retail businesses, and to capitalise on the region’s growing reputation and the increased exposure it would bring.

“We spent more than we should’ve spent, but the whole family was behind the decision,” Mr Romeo said.

The business shifted into its new 400sq m premises in Herne Hill in 2004, establishing the manufacturing arm first so not to disrupt the wholesale supply or exports.

In August 2005, the new Mondo Nougat retail/factory outlet opened its doors to the public, offering a café-style set up with the re-introduction of the homemade Italian cakes and sweets for which the business had become famous.

 “We decided we wanted to offer people a bit more of an experience. Everything is still done in-house; we offer cakes and deserts that people have never seen before, and this also helps our brand,” Mr Romeo said.

The new location has been a great success. Not only has it given the business room to expand, but it has also increased awareness of the brand.

Mondo Nougat’s introduction into many Swan Valley tour itineraries this year will also help take the brand to the public.

The relocation also had a flow-on effect with the business’s retailers and distributors, rejuvenating interest in the product. 

“Because something new was happening, it was the stimulus to get people excited about the product again; our distributors were interested with what was happening because it was new and exciting,” Mr Romeo said.

He said the company remained very much a family-run business – all five members of the Romeo family work for the business, as do three additional employees.

And the family has every intention of keeping it that way.

Plus, Mr Romeo says, it’s not a bad place to work.

“When I look out my window I see green hills, not concrete. It’s not a bad office space,” he said.