This week in FMCG
Supermarket giant has decided to go into smaller artisan stores; Soft drinks giant cuts its Coke Zero product; Aussie old time favourite sweets company ventured into cakes; Another soft drinks conglomerate sealed a deal with an Aussie almonds company; Tissue maker slashed its full-year earnings; FMCG giant beat its 2Q projections and mushroom products are pulled out from supermarket shelves.
Coles to open smaller artisan stores
Supermarket giant Coles has decided to rollout 120 smaller neighbourhood stores over the next five years. It will focus more on health foods and artisan products with the “Project 535″, The Australian reported. Aussies can look forward to its first store which will open later this year in the Melbourne suburb of Surrey Hills. The new stores are expected to have 1500 grocery items not available in standard Coles stores. Looks like an exciting new venture!
Bid farewell to Coke Zero
The soft drinks giant Coca-Cola has finally decided to phase out Coke Zero completely starting on August 1. Coca-Cola Australia marketing director Lucie Austin said the “Australians have embraced Coke No Sugar – which from day one was carefully crafted to taste even more like Coca-Cola Classic, but without the sugar.” Coke developed the less sugary soft drinks at its US headquarters for more than five years. The phasing out of Coke Zero is set for completion by September 2018.
Arnott’s baked some cakes
Australia’s old time favourite biscuit company Arnott’s has veered to a different direction as it moves into baking mini cakes. The new product range was inspired by their classic biscuits. The new range are made into four different flavours including Caramel Crowns, Mint Slice, Iced VoVo and Monte Carlo. Certainly these sounds delicious!
Pepsi, Select Harvests sealed a five-year deal
Australia’s almond company Select Harvests has struck a five-year deal with the global beverage giant PepsiCo. Select Harvests will start supplying its Lucky nuts, seeds and mixed products to the soft drinks maker’s Chinese division, who in return will handle the marketing, sales and distribution.
Select Harvests general manager Mark Eva said entering the China market in partnership with PepsiCo is “extremely exciting” for the business. While PepsiCo president and CEO of PepsiCo Greater China Ram Krishnan said the soft drinks giant “is committed to being truly ‘In China, For China, with China’.”
Cost surge wiped Asaleo Care earnings
Asaleo Care, the maker of Sorbent tissues and Libra personal care products has warned the rising costs and stiff competition will affect its full-year earnings by slashing it by 30 per cent. The tissue manufacturer said its preliminary half-year underlying earnings would be 24 per cent lower as a result of higher paper pulp and electricity costs, lower sales and price competition.
Johnson & Johnson beat 2Q projections
Johnson & Johnson (J&J) has posted a three per cent increase in second-quarter profit due to a 20 per cent sales jump in its prescription drugs business. The FMCG global giant accounted for half its $US20.83 billion ($A28.18 billion) in total revenue. J&J has benefited majorly from its use of cancer and immune disorder medicines and its 2017 acquisition of the Swiss drugmaker Actelion, according to AAP. The US company on Tuesday reported a net income of $US3.95 billion, or $US1.45 per share, up from $US3.83 billion, or $US1.40 per share, a year ago. Good news for the FMCG company!
Costa mushrooms recalled from supermarkets
Sliced mushroom punnets available at several Australian supermarkets have been pulled out from grocery shelves due to the products may contain pieces of plastics. Costa Group has recalled the 200g, 375g and 500g sliced mushrooms packets with a ‘best before’ date of July 19, which are sold at Coles, Woolworths, ALDI and independent supermarkets in Victoria, NSW, Queensland and the ACT. The mushroom products affected are sold under several brands including Woolworths, Coles, Karidale and Costa Mushrooms. Costa has urged customers to return the product to the store of purchase for a full refund.
These headlines wrap up this week in the FMCG business sector in Australia. We’ll be back again on Monday morning to deliver fresh news. Have a great weekend everyone!