Tough competition between an Aussie retail giant and a German discount grocer; supermarket chain launched a new healthier store; another grocery giant expanded its loyalty scheme service to consumers; wholesaler boss to jumped ship without company benefits and a dairy manufacturer fined.
Tough competition with ALDI catapulted Dick Smith Foods to closed down stores
Dick Smith has decided to finally close Dick Smith Foods due to stiff competition from the German discount supermarket ALDI. The well-known entrepreneur said “it was one of the most difficult decisions I’ve ever made, and it’s one of the saddest days in my life.” He set up the business to help Australian farmers and food processors.
Woolies’ new Metro store ventured into healthier foods
Woolworths has opened the new Metro store in Sydney. The new grocery caters to Aussies looking for healthier options with create-your-own poke bowls, curries and roasts. Managing director Food Co, Fuel and Metro, Steve Greentree said that the supermarket giant has been doing research on Metro in the last five years. He said that the grocery targets “creating a supermarket experience that is locally relevant, no matter where it is.” We’re looking forward to checking it out over the weekend!
Coles expanded its ‘flybuys max’ loyalty scheme
Aussie supermarket Coles has unveiled a premium subscription to its Flybuys loyalty program, which offers different services for consumers including discounted groceries, free home delivery and access to online video streaming. The supermarket giant said the Flybuys Max is currently being tested with a small group of members before the subscription is rolled out nationally. The SMH reported that the new loyalty scheme will cost A$10 per month or A$99 per year, wherein members can avail up to a five per cent discount on all fresh produce at Coles supermarkets.
Metcash headhoncho dropped bonuses
Supermarket wholesaler Metcash’s boss Steven Cain has forfeited his bonuses as he returns to Coles later this year to serve as its managing director. Cain will be forgoing about $2.25 million of the various long-term incentives along with some short-term bonuses. He will also be missing out on the sign-on bonuses the company was supposed to give to him if he remains in his role for three years. In the company’s financial report, Metcash said that the grant was made in FY16 wherein there was an incentive for Cain “to accept Metcash’s employment offer, retail his services for three years from commencement of employment and to provide an incentive to successfully execute the Metcash Supermarkets business turnaround.”
A2 Milk fined A$20,000 Chinese ad breach
New Zealand dairy giant a2 Milk was penalised by the Chinese Government for breaching the Asian coutry’s advertising rules and regulations when it used images of a child under 10 years old. The Chinese authority said Zhi Chu Milk Trading Co, the trading company for a2 Milk, was fined A$20,000. The dairy giant confirmed in a statement to Inside FMCG that it is in “discussion with the Administration for Industry and Commerce over an advertising matter in China and has reached a mutual resolution to the satisfaction of both parties.”
That’s it for this week. We’ll be back again next week to bring our readers the top business headlines in the country. Have a good weekend everyone!