Retail giant bought Indian online business; E-commerce giant eyes UK grocery; FMCG and coffee chain companies partnered; Counterfeit Australian goods seized in China and ride-hailing app halted grocery delivery service.
Walmart, Flipkart $21.4b acquisition deal
Retail giant Walmart has made the largest single deal in history by dropping A$21.45bn on a 77 per cent stake in Indian marketplace Flipkart. The deal has expanded in e-commerce presence. Walmart’s president and chief executive Dough McMillion said “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of e-commerce in the market.” Certainly a big news in the supermarket industry.
Amazon looks to UK grocery acquisition, reports
Online retail giant Amazon eyes the acquisition of bricks-and-mortar supermarket with the upscale UK chain, Waitrose. The Sunday Times reported that one of Amazon’s vice president of special projects Ajay Kavan, had several conversations with a director of the John Lewis Partnership, Waitrose’s parent company, about a possible deal last November. However, a request for a formal meeting was cancelled by the board.
Starbucks, Nestle in $9.48bn partnership
Vienna Swiss food giant Nestle has decided to sell Starbucks products under a A$9.48 billion deal. The coffee chain agreed to sell the FMCG company the right to market its coffee and foods products. The deal is set to close by the end of the year. Some 500 Starbucks employees in Seattle will become Nestle staff. Nestle chief executive Mark Schneider said the new deal is a significant move for their coffee business. While Starbucks chief executive Kevin Johnson said it “will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle.” Looks like a sweet deal!
Chinese police seized counterfeit Aussie goods
Counterfeit Australian products were intercepted by the police in Guangdong, China. Imitation of Penfolds wines and Swisse and Blackmores supplements were sold in the market for a much cheaper price, according to ABC. Treasury Wine Estates spokesperson told Inside FMCG they “work tirelessly with local authorities, as well as with our local partners and brand protection agencies to protect the integrity of our premium brands at all times, and we have a dedicated team and strategy in place for this.”
Uber shutting down delivery business, reports
Ride-hailing business Uber is reportedly shutting its delivery service, Rush, at the end of June. Uber spokesperson Ellen Cohn told Reuters about its decision to end the delivery service of groceries, clothes, flowers and other products. Reuters also reported Uber informed Walmart in March that it would cease delivery operations on June 30. Walmart spokesperson Molly Blakeman has confirmed it but did not disclose the reason.
That’s it for now and we’ll be back on Monday morning to deliver the headlines in the FMCG world. Have a good weekend!