This week in FMCG

TescoAnother eventful week in the Australian FMCG sector has ended. Big industry news made the headlines.

Supermarket giant and transport group signed a deal; UK grocery giant pledged to packaging system and dropped its online website; FMCG chief resigned after million dollar loss; Pie company celebrated 109 years with product relaunch; Infant formula maker, supermarket supplier signed new deal; Fast food, convenience chain urged for franchise reform and FMCG global giant unveiled a big move with its SmartLabel platform.

Coles, TWU committed to truckie safety

Supermarket giant Coles and TWU signed a deal to improve the safety of truck drivers who transport goods for the grocery under the new agreement. AAP reported workers will undergo more training and look at new ways to unload trucks more efficiently, which will reduce the time drivers spend on the road and improving safety.

Coles managing director John Durkan said the workers “in these sectors make an invaluable contribution not just economically but to the community as a whole.” While TWU national secretary Tony Sheldon said the new deal “indicated to the community what can be achieved with good corporate citizens on board.” The new deal included five principles – ensuring workers are treated fairly, education, consultation on safety issues, transparency and the promotion of safety initiatives.

Tesco targetted ‘close loop’ packaging system, closed down Tesco Direct

UK supermarket giant Tesco made the headlines with big news. It committed to its ‘closed loop’ packaging system as it called upon the Government to support the national recycling infrastructure. Tesco also dropped its non-food online website, Tesco Direct.

Tesco’s chief product officer Jason Tarry said in a statement the grocery giant is “committed to reducing the total amount of packaging used across our business. Ideally we would like to move to a closed loop system.”

Meanwhile, Tesco Direct has faced a number of significant challenges, including high costs for fulfilment and online marketing, which have prevented it from delivering a sustainable offer as a standalone non-food business. Supermarket giant announced it will cease trading on 9 July 2018 and will close the fulfilment centre at Fenny Lock.

Charles Wilson, CEO of Tesco UK & ROI said they want to offer customers the ability to purchase “groceries and non-food products in one place and that’s why we are focusing our investment into one online platform.” Certainly big news for the UK supermarket!

Campbell Soup chief quits after $393 million loss

FMCG giant Campbell Soup’s co-chief executive Denise Morrison has quit unexpectedly after the company reported a US$393 million loss for the third quarter. After seven years in the company, chief financial officer Anthony DiSilvestro said an urgent review of the company’s portfolio would be started. While changing consumer tastes away from processed food have been partly blamed for four years of declines in Campbell’s US soup business, it was the food company’s fresh food unit that disappointed the market, booking a $619 million impairment.

Herbert Adams celebrated 109 years with frozen pie relaunch

The 109-year-old Australian pie maker Herbert Adams celebrated with a frozen pie relaunch roll-out with a wine infusions range of three pies with the liquor sourced from the Swan Hill region. The pie company said it will deploy a national TV, print and outdoor campaign that launches this June.

Patties Foods GM of Marketing & Innovation, Anand Surujpal said the pie company is “seeing the premium quality pie category growing rapidly. Herbert Adams’ new irresistible pie flavours and packaging are a result of listening to our consumers about the simple at-home pleasures like a glass of red wine at dinner.”

Wattle Health, Metcash signed baby food range deal

Wattle Health and Metcash signed a deal with its baby food range. The infant formula company the distribution of its baby food range with supermarket supplier giant will increase brand awareness and drive sales not only of its baby food range, but also its existing range of infant formula.

Lazarus Karasavvidis, executive chairman of Wattle Health, said the latest move will “increase in our product range within the Metcash environment will further increase the awareness of Wattle Health and its product offerings which is another important step in growing sales and revenue.”

Domino’s, 7-Eleven sought for franchising reform

Pizza fast food chain Domino’s and convenience store 7-Eleven have called for minimum disclosure requirements for prospective franchisees under the Franchising Code of Conduct to be strengthened, joining a growing chorus of major networks calling for reform to the scandal-plagued sector.

Domino’s said the code could be expanded to mandate disclosure of the historical earnings of a franchise site, where available. The fast food giant commented that “there may be a benefit in the Franchising Code providing for the mandatory provision of earnings information where it is held.”

7-Eleven also called for an expansion to disclosure requirements in the code, focusing on addressing the causes of wage underpayment in some networks. The convenience store company said “buying any business entails some risk and is not a guarantee of income at a particular level. Accordingly, 7-Eleven strongly supports full disclosure of all necessary information to ensure fully-informed decision making and robust business planning by prospective franchisees.”

Procter & Gamble unveils big move into SmartLabel platform

Global FMCG giant Procter & Gamble Company (P&G) has unveiled it has more than 3,500 products present within its SmartLabel. The online and mobile platform enables consumers to access detailed information such as product ingredients, usage instructions, certifications and endorsements.

Kathy Fish, chief technology officer for P&G, said the company’s SmartLabel “shares our products’ ingredients, reinforces P&G’s commitment to transparency and is one way we are holding ourselves accountable to the transparency goals we outlined in Ambition 2030. We know people care about what goes into the products they use every day, and we want consumers to be informed and confident in their choice to place P&G products in their baskets.” Sounds like a good tool for consumers!

We’re capping off another interesting week in the FMCG sector. We’ll be back on Monday morning to deliver the freshest news. Have a great weekend!

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