This week in FMCG
Australian retailer Wesfarmers is expecting to record between A$2.1 billion to A$2.3 billion in its 2019 first half results, off the back of the Coles demerger.
Wesfarmers expects to gain between $670 million to $680 million from the sale of its stake in the Bengalla coal mine, while its divestment of Kmart Tyre and Auto (KTAS) is expected to net $265 million to $275 million. The disposal of its interest in Quadrant Energy is expected to add US$98 million. The company also revealed that comparable sales in Target stores has increased by 0.5 per cent on the previous corresponding period, while Kmart posted a comparable store sales decline of 0.6 per cent (excluding the gain on the sale of KTAS).
After 48 years, Coke will finally be sold at the fast-food chain Pizza Hut. The fast food chain’s CEO Phil Reed said that Coca-Cola Amatil’s (CCA) range of products has proven to be popular with their customers. West said that its other business partnerships with Hungry Jack’s, Red Rooster, Oporto and Hilton Hotels has strengthened the growth of CCA’s Australian Beverages. The beverages will be rolled out in Pizza Hut restaurants in the next few weeks with new cold drink equipment.
Kaufland will start selling unusual looking fruits and vegetables after it conducted a three month trial of the program. Markus Mutz, purchasing Fruits and Vegetables, Kaufland explained that the program will help remove from its farmers produce with visual defects and show that unusual shapes have no effect on healthy foods and a full flavour. In Australia, Woolworths, Coles and ALDI have also began the same practice. The Odd Bunch range at Woolies helps customers save money and reduce food waste by buying odd looking produce. Coles advocates reducing food waste by using produce that cannot be sold as a whole to make other value-added products such as banana bread or rice alternative products. While ALDI tries to utilise as much of their crops as possible as it ensures the stores meet high standards and specifications.
Gillette has released a new ad addressing the #MeToo movement and toxic masculinity. It depicts different situations of bullying and harassment and asks the question “Is this the best a man can get?” The company addressed the new campaign on its website saying “it’s easy to believe that men are not at their best”. Gillette said it’s time to acknowledge that brands play a role in influencing culture.
Nestlé is rolling out alternative packaging materials across its global product portfolio. It pledged to make 100 per cent of its packaging recyclable or reusable by 2025. Nestlé CEO Mark Schneider said that they are determined to finding feasible recycling options though they know that “100 per cent recyclability is not enough to successfully tackle the plastics waste crisis. We need to push the boundaries and do more.” Smarties, Nesquik and Yes! packaging will soon have plastic-free packaging.