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This week in FMCG

FMCG-ThisWeekInNews-061118-10This week consumers have seen big news in the FMCG industry. From a supermarket giant’s big distribution plans to an iconic chocolate bar making a comeback. Take a look back on what has happened in the sector of late.

Coles’ new $146m provision for distribution network overhaul

Australian supermarket Coles has signed a deal with Witron Australia worth A$950 million. The deal will develop two new automated ambient distribution centres to replace three existing dry goods facilities across Queensland and New South Wales for the next six years. The two centres, one will be based in Redbank, south west Brisbane, and the other, in Kemps Creek, western Sydney.

Patties Foods acquired Simplot’s Pakenham facility

Australian food company Patties Foods has bought food manufacturer Simplot’s Pakenham facility. Last year, Simplot said it will exit the frozen meals category and a proposed closure of the Pakenham site in 2018. Patties Foods will use the facility to produce Leggo’s products for Simplot Australia and its chilled and sweet options from its fruit production line. Patties Bairnsdale bakery will continue as the company’s specialist site for savoury baked goods. Paul Hitchcock, CEO of Patties Foods, said that the latest acquisition enables them to have “a strong position as we continue to grow our manufacturing sites and product offerings into 2019.”

Treasury Wine ousts COO over internal policy breach

Polly Waffle makes a comeback

Sweets company Robern Menz has paved way for the chocolate brand Polly Waffle to make a comeback in Australia. It will take ownership of the brand, trademark and recipe under an agreement with confectionery giant Nestlé. The Polly Waffle was created in Melbourne in 1947 and later manufactured by Nestlé until it was discontinued in 2009. Robern Menz chief executive Phil Sims said there had been strong public support for the Polly Waffle’s revival.

API flagged due diligence in Sigma takeover

Australian Pharmaceutical Industries (API) is expecting to sign a deal to commence due diligence in its takeover bid for Sigma Healthcare. API had offered to buy Sigma for A$727 million, where shareholders of the pharmacy operator would receive 0.31 API shares and 23 cents in cash for each of their shares. API CEO Richard Vincent said that the result achieved in a year that had statutory price changes to the Pharmaceutical Benefits Scheme and exclusive direct distribution arrangements have “reduce our gross profit by more than A$10 million – far above the long-term trend and the impact on earning was well recovered in the circumstances”. Priceline Pharmacy network sales grew by 2.1 per cent to A$2.1 billion. The network grew by 13 stores in the year to finish on 475 stores.

Have a great long weekend everyone! Inside FMCG will be back again on Tuesday morning to deliver the top headlines.

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