This week in FMCG
Aussies largest wine maker was acquired by US equity firm; Iconic Australian spread company ventured into opening an online merchandise store; Soft drinks giant’s “less sugar” is still too much; Supermarket giant grows after reorganisation; Grocery company threw $270mil spanner into supplier’s plans and coffee chain giant began worker’s racial discrimination training.
Accolade Wines acquired by The Carlyle Group
Australia’s largest wine maker Accolade Wines was bought by the US private equity firm The Carlyle Group. Former Murray Goulburn boss Ari Mervis will join the company giant as the executive chairman in August 2018.
The Carlyle Group managing director David Bluff said they “see significant growth potential for Accolade Wines in major wine markets, supported by a portfolio of prominent brands. With our expertise in the consumer sector and access to a global network, we look forward to working with the management team to support the company’s Asia growth strategy and the continued development of its business.” Certainly one of the biggest news in the FMCG sector this week!
Vegemite opened e-commerce merch store
Aussie’s iconic business Vegemite has opened its first e-commerce merchandise store. The well-known Aussie company said it will offer something different than just the iconic glass jar (and tube), with everything black red and yellow. It recently launched the 7 Mitey offerings, in collaboration with Australia’s homewares brand, Salt&Pepper. Vegemite said “Salt&Pepper have helped us bring the iconic range to life and are thrilled you can now welcome them into your home with your favourite Aussie breakfast spread”. Consumers can now purchase bespoke mug and plate sets; tea towels and melamine dinner sets; Vegemite trucker caps, t-shirts and beach towels.
Coke’s ‘less sugar’ is still too much
As sugar tax circulates in the FMCG industry in Australia, US, UK and other countries, Coca-Cola Australia has taken action to reduce “in 22 of our drinks since 2015”, and is committing to “make all our new Coca-Cola flavours either reduced or no sugar”, according to The Conversation’s recent column. The soft drinks giant aims to reduce sugar content by 10 per cent across their range by 2020.
Rosemary Stanton, nutritionist and visiting fellow at UNSW, said that “Less’ sugar in sugary drinks is also too vague. Even for those who are not overweight, these drinks remain a hazard for our teeth. The only solution is to stop drinking them.”
SPAR International grew in Australia after restructure
European grocery giant SPAR International has managed to find some growth in Australia’s competitive supermarket sector, after undergoing an internal restructure overseen by former Metcash boss Lou Jardin. SPAR Australia posted a 13.8 per cent increase in sales to AUD$308m for the year ended 31 December, according to accounts published by the international grocery business overnight.
Drakes Supermarkets threw $270mil spanner into Metcash’s plans
Drakes Supermarkets has put a spanner in supermarket wholesaler Metcash’s plan to bolster fulfilment in South Australia. The grocery disagreed to a deal that would see its supermarkets supplied by a new distribution centre. It signaled further trouble in its relationship with Metcash and throws a cloud over its supply deal, which will expire in 2019. “Disappointingly, Drakes has advised that it will not be making a commitment to have its supermarkets in South Australia supplied from Metcash’s proposed new DC,” Metcash said.
Starbucks started worker’s racial discrimination training
Coffee giant Starbucks has began training it’s employees, which came after the racial profiling controversy. It apologised for its behaviour towards the two black men last month who experienced racial discrimination inside a Starbucks store in the US. About 8,000 Starbucks stores into US shut down last Tuesday for the company’s anti-bias training. AAP reported Starbucks settled privately with the two men after a Philadelphia cafe manager’s call to police resulted in their arrests on April 12. The coffee giant trained 75,000 employees on racial tolerance.
We will deliver the latest headlines again on Monday morning. Have a restful weekend everyone!