This week in FMCG
It’s mostly major supermarket news this week and several FMCG giants have gained recognition as the top companies in Australia.
ALDI is Australia’s most trusted supermarket
Discount grocer ALDI has been recognised as Australia’s most trusted grocery brand for the second time in Roy Morgan Research’s latest survey of the top 10 leading brands. An ALDI spokesperson told Inside FMCG they are glad to gain the trust of Aussies in the grocery sector. The spokesperson said that it proves the “unbeatable value we offer Australian shoppers as well as our ongoing commitment to doing the right thing for our business partners, customers, employees, the community and the environment.” What will rivals Woolworths and Coles have to say about that?
Metcash profit lifted
Wholesaler Metcash chief executive Jeff Adams told investors sales have continued to improve in the two months since the retailer announced its A$149.5 million statutory loss in FY18. The financial loss was due to the $352 million impairment after Drakes Supermarkets cancelled signing its new distribution centre (DC). Metcash doesn’t see Drakes decision impacting on its supermarket earnings in FY19. Instead the wholesaler has signed with Foodland Supermarket to supply the DC for the next 10 years.
Woolworths protects contract cleaners
Grocery business Woolworths has agreed to protect its workers rights in its cleaning services supply chain. The supermarket giant has sealed a deal with the Fair Work Ombudsman (FWO) under a new Compliance Partnership. It came after FWO found out non-compliance with workplace laws amongst contractors at Woolies’ Tasmanian supermarket stores. Issues involved the underpayment of workers and record-keeping breaches. Fair Work ombudsman Sandra Parker has commended the supermarket for committing “publicly to monitoring and auditing its network of cleaning contractors at all Woolworths Group sites.”
Caltex mulls over offloading $2bn convenience retail assets
Fuel retailer Caltex Australia may sell its convenience retail assets, Star Mart and Woolworths. It is eyeing a real-estate partnership, which may include the sale of 15 to 25 per cent of its existing freehold site portfolio, worth A$2 billion, while retaining a 25 – 50 per cent stake. The petrol giant said the convenience retail real estate is a “critical asset” in the company’s long term retail strategy. Managing director and CEO Julian Segal said the 15-year fuel supply deal includes wholesale food supply to over 700 existing Caltex convenience sites.
Mars Australia, Campbell Arnott’s recognised as best companies to work in Australia
Confectionery giant Mars Australia has been chosen as the best manufacturer to work for in Australia. It took the 6th spot in the overall list of Best Places to Work for 2018 while food company Campbell Arnott’s took the 10th spot this year. Mars Wrigley Confectionery general manager, Andrew Loader said they’re proud to be recognised in the business industry and the company is “striving to create an environment that allows people to learn and grow and gives them exciting and rewarding careers.” In 2017, Mars Australia was the number one company in the Best Places to Work Study. Congratulations to both companies!
Nestlé, Starbucks to infiltrate supermarkets
Confectionery global business Nestlé and coffee chain Starbucks sealed a deal to market the latter’s Consumer Packaged Goods and Foodservice products outside of the coffee shops. The latest agreement includes packaged coffee goods Starbucks, Seattle’s Best Coffee, TeavanaTM/MC, Starbucks VIA Instant, Torrefazione Italia coffee and K-Cup pods. Nestlé CEO Mark Schneider said the latest big move gives “Nestlé an unparalleled position in the coffee business with a full suite of innovative brands.” Kevin Johnson, president and CEO of Starbucks agrees that the new coffee alliance is a milestone for the growth of Starbucks that “[amplifies] the Starbucks brand around the world while delivering long-term value creation for our shareholders.”
That’s it for this week in FMCG news. Have a restful weekend and Happy Father’s Day!