This week in FMCG
The second week of November has rolled by quickly and the FMCG sector has delivered lots of big news. Take a look back what happened on Inside FMCG.
FMCG giant Procter & Gamble (P&G) announced plans to simplify its corporate structure at its annual investor meeting in Cincinnati, Ohio. The move comes after investor Nelson Peltz joined the Board in March. The organisation aims to reduce major units to six with one “CEO” per division. The changes will take effect on July 1, 2019. P&G also announced that CFO Jon Moeller will be expanding his role to COO. He will now also oversee the markets that is not covered by the new major six units.
Supermarket giant Woolies has introduced superannuation contributions for 12 months of parental leave for its employees. It hopes to close the gender gap in the company. Over half of its 190,000 team members are female so this move is expected to create a significant difference to employees’ retirement savings. Woolworths Group chief people officer, Caryn Katsikogianis said Woolies “wants to play our part in closing the gap. We hope it’ll help create an even more inclusive workplace at Woolworths.” The supermarket giant reviewed salaries of about 18,000 employees from 2016 to 2017, leading to salary adjustments of 29 per cent of staff. This move reduced the salary gap to an average of 0.5 per cent between males and females in the same roles.
Coca-Cola (CCA) Fiji has unveiled its new bottling plant in FIJI, with the installation of Krones Blowfill technology. The soft drinks giant’s latest innovation brings it to the forefront of having the latest equipment in New Zealand, Australia and Indonesia drinks industries. The new line can manufacture up to 21,000 bottles per hour. CCA Fiji managing director, Roger Hare, said it has triple the capacity of the current line and not only supports future growth for the next 10 years but enables the CCA Fiji business to embark on a significant export led growth strategy, over the next five to eight years.
Australian company Freedom Foods partnered with Alibaba-owned Theland New Cloud Digimart Co. Both companies signed the deal during the China International Import Expo in Shanghai. This latest move is set to expand the cereal and snacks range category in China. Theland will become the exclusive distributor of Arnold’s Farm product range. Freedom Foods managing director and CEO Rory Macleod said that the company has “a good footprint here in China and it is strategic long term partnerships like this with Theland that will help us continue our strong trajectory.”
Bega Cheese is planning to sell its stake in Capilano to Bravo BidCo. A spokesperson for Capilano told Inside FMCG, “We welcome the news today that Bega, one of Capilano’s largest shareholders, has said it will support the Scheme of arrangement. We believe the offer from the consortium of Australian private equity funds is compelling for shareholders and a positive outcome for industry participants”. In August, the consortium offered A$20.06 per share for Capilano. Bega Cheese upped its stake in the ASX-listed honey company a month later, paying A$5.38 million for 255,291 shares at an average of A$21.08 per security.
Convenience store giant 7-Eleven celebrated 7-Eleven Day this week. Aussies received about 300,000 free large Slurpees and regular, Iced Coffees or Coffee Melts. 7-Eleven CEO, Angus McKay said that it’s one of the most anticipated days of the year for its customers and employees. Aussies got to won A$711 every hour for 24 hours as the posted celebratory photos on Facebook or Instagram with the #7ElevenDay. More than 200 7-Eleven office-based team members supported the event.
Fair Work Ombudsman (FWO) released a report this week showing a great improvement in national compliance, after it performed series of re-audits on businesses, who previously breached workplace laws. FWO said 479 businesses were re-audited and 62 per cent of employers were now meeting their workplace obligations. It recovered A$244,246 for 347 workers, issued 16 compliance notices, 56 infringement notices and 88 formal cautions as part of the campaign. Chemist Warehouse was one of the positive performers. The Australian pharmacy entered into a compliance partnership with FWO in November 2016. Following underpayment allegations relating to employee training, the company was forced to backpay A$3.5m to nearly 6,000 staff members.
That’s it for this week! Have a restful weekend and Inside FMCG will be back on Monday morning!