This week has been quite big for the FMCG industry in Australia. Retail giant has unveiled its supermarket spin off plans; dairy giants acquisition moves forward and Aussies still love beef among other meats.
Wesfarmers to demerge Coles supermarket
Retail giant Wesfarmers has decided to make a huge move with a Coles spin off. Managing director Rob Scott said the demerger was already in discussion even before he took seat as the big boss at Wesfarmers.
He said that the latest move for the diversified conglomerate is “an opportunity for us to deliver a superior return.” The spin off would include Coles national network of 806 stores, Coles Online, 894 liquor stores, Coles Express’ 712 fuel and convenience store outlets and 88 hotels under the Spirit Hotels brand.
Murray Goulburn, Saputo takeover edges closer
The takeover of Murray Goulburn by Saputo inched closer as independent reports backed the Canadian giant’s $1.3 billion offer for the troubled Australian dairy processor. Advisory firms have spoken up on the big acquisition plans between the the two dairy giants.
Grant Samuel said the proposed sale to Saputo is in the best interests of Murray Goulburn’s suppliers and unit holders because it preserves its assets – especially milk supply – from further deterioration. It said the offer is fair and reasonable.
Saputo offered $1.3 billion, about $114 million will be used to fund additional milk payments to Murray Goulburn’s suppliers, including a step-up in the farmgate milk price.
Aussies still prefer beef among other meat
Beef still won the hearts of Australians as Nielsen’s latest research has shown it still remains as the popular choice for meat despite its decline in sales in the country. The global research company said annual data has shown Australian shoppers are buying less meat overall than the previous year. Both younger and older Aussies are more interested in healthier food options.
Enjoy the weekend everyone!