This week in FMCG
November has rolled in fast, with big news making the headlines again this week. With only two months left in 2018, consumers have witnessed interesting movements in FMCG. Here’s what happened this week.
Caltex has aimed for a A$120 – A$150 million uplift in profits in 2018 profits for its convenience retail arm. Its 15-year partnership with supermarket giant Woolworths will see 10 – 12 more new Metro stores. Four Metro sites are slated to open in the first half of 2019 and the rest during the second half of the year. It banks on the growing demand for easy and quick food. The petrol giant had a 27 per cent increase in take-home food sales over the previous 12 months and a 13 per cent increase in on-the-go foods.
Confectionery giant Nestlé has launched three new Incubator created product ranges in China with Totole, the company’s own brand. The Xingshan, Muscle Hunt and Green Bite were unveiled during the Nestlé China Innovation Day. All three brands will be first launched on e-commerce sites. Rashid Aleem Qureshi, chairman and CEO of Nestlé Greater China said that this is a “response to the rapid changes in China’s Food and Beverage industry.” China is the second country to have an Incubator team after the US.
Soft drinks giant PepsiCo has expanded its plant-based portfolio with Health Warriors. It now has nutrition bars and on-trend offerings. Al Carey, CEO, PepsiCo North America said the company positions itself “at the forefront of changing consumer preferences and trends. This acquisition helps us increase our presence in the nutrition bar category, which is an attractive growth space.” Health Warrior founders Dan Gluck, Nick Morris and CEO Shane Emmett built the healthy food company to make nutrient-dense foods more accessible to more Americans.
Inside FMCG sat down with Procter & Gamble ANZ boss Vivek Gupta. He discussed the focus of the summit this year which circles around leadership in the 21st century with an emphasis on digital disruption, diversity and inclusion. Gupta talked about his views on leadership, the power of a positive attitude and staying connected with 21st century customers.
As Jack Ma prepares for exit as Alibaba’s CEO next year, he penned a letter to unveil future plans. The e-commerce boss Daniel Zhang will take his place in September 2019. Ma will join the Board of Directors and will still be a partner in the Alibaba Partnership, after stepping down next year. He said he’s “grateful for what Alibaba has achieved over the past 19 years. Ma sees Zhang who will lead a team of young, talented people which will give Alibaba the leverage to continue to bring positive impact worldwide. Alibaba’s founder also said it will venture further into the future with AI and robots that will help improve a global trade system for the future.
E-commerce giant Catch Group is managing a website for The a2 Milk Company’s infant milk formula. The a2store.com.au provides availability even when local stores are out of stock and cuts out queuing times, with delivery to customers’ door in one to three business days. Catch Group CEO Nati Harpaz said that the total “end-to-end solution” helps brands like a2 to meet the demand of customers at all times. While Peter Nathan, CEO of a2 Milk in Asia Pacific said Catch has helped provide a “great solution to Australian parents who often cannot find a2 Platinum formula on supermarket shelves due to high demand”.
Mondelēz EVP and chief growth officer Tim Cofer said a new hub will focus on well-being snacks, digital platforms and premium snacks. Fortune reported that Cofer expects SnackFutures to contribute $100 million to revenue by 2022. SnackFutures capitalises on new trends, mobilising the ecosystem of entrepreneurs and focus on consumer-centric growth.
Have a good weekend! Read the top headlines again at Inside FMCG next Monday morning.