This week in FMCG
E-commerce giant has launched its pilot product trial; Supermarket giant food sales soared; Online food delivery’s downfall; Soft drinks giant’s profit strengthened; Retail online giant and grocery store chain continued to expand in the US; Liquor business’ workers held more strikes; NSW paid more for bottled drinks and another soft drinks multinational revealed global fashion and sports campaign.
Blackmores, Fonterra joined Alibaba’s pilot product trial
E-commerce giant Alibaba and a group of founding partners have announced the launch of its pilot orders through the new Food Trust Framework, a Tmall Global initiative that uses blockchain technology to improve supply chain traceability. The CEO of Alibaba Group, Daniel Zhang hosted the new program in Auckland, New Zealand.
Alibaba Group’s Alvin Liu, general manager of Tmall Import & Export, said during his speech that the “food fraud is a significant global challenge, particularly with the growing complexity of supply chains. In response, we have created a coordinated, world-leading and robust framework that involves stakeholders from across the supply chain to improve visibility and enhance the confidence of both end consumers and merchants.”
Alibaba also signed a Memorandum of Understanding last year with Blackmores, Australia Post, Fonterra and New Zealand Post in the Framework. Blackmores and Fonterra are the first companies to trial the Food Trust Framework, shipping products from Australia and New Zealand to China.
Coles’ food sales increased
Supermarket giant Coles had a moderation in food deflation while its basket size increased, which helped catapult sales in the third quarter. Wesfarmers retail sales increased by 2.8 per cent in the three months to 31 March to $14.4 billion. Coles managing director John Durkan told analysts on Thursday the planned grocery spin continued to invest in price with a slight slowdown in transaction growth from the second quarter being offset by an increase in basket size. He said “we’re in the place we wanted to be, of course we’d like to see more but we’re going in the right direction.”
Aussie Farmers Direct’s downfall wasn’t about the two big supermarkets
Food e-commerce company Aussie Farmers Direct’s (AFD) sudden downfall has encountered the harsh reality of failing to understanding the market it was working within and the customers it was serving, according to Queensland University of Technology associate professor Gary Mortimer. He said although AFD management was quick to blame the two big supermarkets, there were other important factors that contributed to its collapse. Mortimer stated five problems the food company encountered in his article – niche to mainstream; big market, little margin; a franchised model; ethical intentions and shopping habits.
Coca-Cola profit soared as costs declined
Soft drinks giant Coca-Cola has reported a first-quarter jump in profit as it introduced new flavours and continued to discard its bottling operations. AAP said Coke began selling Coca-Cola Zero Sugar, a reformulated replacement for Coca-Cola Zero, in 20 markets last year and on Tuesday reported “double-digit” growth during the quarter. Coke CEO James Quincey said “we’re encouraged with our first quarter performance as we continue our evolution as a consumer-centric, total beverage company.”
Amazon, Whole Foods expanded supermarket delivery in the US
Amazon, Whole Foods Market has continued the expansion of its free two-hour delivery of natural and organic products from the supermarket through Prime Now in Denver, Sacramento and San Diego. Whole Foods Market executive vice president of Operations Christina Minardi said the latest company plan “is another way that we are continuing to expand access to our high-quality products and locally-sourced favorites.”
Brisbane’s XXXX brewery workers strike
Australian XXXX brewery’s workers has announced its plan to rally at a statue of rugby league great Wally Lewis next week. The latest action aimed to draw attention to their pay dispute when they march on a Suncorp Stadium NRL clash. AAP said brewery workers at Milton went on strike for the fourth time in the past month on Thursday morning amid tense negotiations with management. United Voice spokesman Damien Davie “we want everyone on the same rate of pay, on the same conditions … not new workers brought in at 25 per cent less than the current workforce.”
NSW paid more for bottled drinks
Aussies in NSW has spent up to 14 cents more for soft drink and water bottles since the Government launched its Container Deposit Scheme. AAP said a report by NSW’s pricing regulator released on Tuesday found the price of bottled drinks had increased roughly in line with the costs of the scheme in its first three months.
Pepsi created new Global Capsule Collection
Soft drinks giant Pepsi has unveiled recently a global capsule collection. It collaborated with fashion partners Boohoo, Umbro, Le Specs, New Era and Anteater. Pepsi said the latest extension of its 2018 global #LOVEITLIVEIT campaign combined art and sport to celebrate the world’s beautiful game – football – on a new pitch: fashion. PepsiCo Natalia Filippociants, senior marketing director, Global Pepsi Trademark, Global Beverage Group, said the “pop culture acumen – from sport and music to art and culture – is embedded in our Pepsi brand identity. It’s exciting to see our brand extend its power beyond the refreshing cola it is traditionally known for.” Great collaboration for the soft drinks giant!
That’s it for now and we’ll be back again on Monday to deliver great FMCG news. Have a fantastic weekend everyone!