This week in FMCG
It was a difficult week for some businesses in the FMCG sector. Last week’s popular product was suddenly recalled; a convenient store giant and bank faced lawsuit and supermarket giant’s ‘alarming’ cleaners exploitation has caught the eye of the ombudsman.
Mondelez’ Cadbury Caramilk recalled
Aussies were disappointed when Mondelez Australia has suddenly recalled their Cadbury Caramilk. The popular chocolate bar contained small, flexible pieces of food grade plastic due to a machinery fault. Some of the Cadbury Caramilk were sold at Coles, Woolworths, IGA’s and other independent retailers. Consumers certainly weren’t happy about the news as they clamoured to purchased the popular chocolate bar after 20 years since it was first sold in the market.
Lawsuit sought damages from 7-Eleven, ANZ
It wasn’t an easy week for the convenience giant 7-Eleven and ANZ bank as a Sydney law firm’s lawsuit sought damages from both companies. The convenience chain giant was required to pay back millions of dollars to thousands of workers who were underpaid. 7-Eleven said it intends to “vigorously defend any such proceedings” based on what is known. We’ll see how this one turns out in the new few weeks.
Woolworths cleaners ‘exploitation’ alarming
The Fair Work Ombudsman said the Woolworths doesn’t comply with workplace laws with 90 percent of its cleaning contractors at their Tasmanian supermarket sites. This alarmed ombudsman Natalie James since supply chains involving vulnerable workers are not adequately monitored. Supermarket giant outsources its day-to-day cleaning services. James said that cleaners were often paid in unrecorded cash-in-hand payments and no payslips. Sounds like the supermarket giant will have a lot of explaining to do.
That’s it for this week in FMCG. We’ll see you next week!