The FMCG industry reported big headlines once again this week. Read what happened including big news with a soft drinks giant and the news of an Australian supermarket scrapping A$1 milk.
Coca-Cola Amatil profit plunged after SPC write-down
Coca-Cola Amatil’s profit has plummeted in the SPC aftermath. It reported its full-year net profit after tax slumped 37.3 per cent to $279 million in 2018. CCA’s group managing director Alison Watkins said 2018 was a transition year for the company, with the Accelerated Australian Growth Plan. The container deposit scheme, economic factors in Indonesia and operational challenges in PNG impacted the company’s full year profit. But Coca-Cola No Sugar and the consumer trend towards low- and no-sugar choices have lifted the Australian Beverage earnings.
Supermarket giant Woolworths announced this week that it has gotten rid of its $1 milk to help Australian dairy farmers. Woolies CEO Brad Banducci said the long term nationwide plan is the most effective way to guarantee price increases go to the farmers. Its two and three litre varieties of branded fresh milk will be priced at A$2.20 and A$3.30 respectively. The 10 cent increase will go to over 450 farmers who supply them. Meanwhile, its rival grocery Coles and ALDI are keeping their prices unchanged.
Coles sales soars but restructure costs pull profit
Supermarket giant Coles has reported sales growth of 3.1 per cent at its first half year results since it demerged from former parent company Wesfarmers. However, the spin off impacted its net profit, which dropped 14 per cent for the half year to A$738 million. Coles chief executive Steven Cain said the results for the first half was a solid outcome in a challenging retail environment, along with its A$950 million investment in supply chain automation and the new alliance agreement between Coles Express and Viva Energy.
Foodland won top supermarket in customer satisfaction awards
Research company Roy Morgan has named supermarket Foodland as the Supermarket of the Year at the eighth annual Roy Morgan Customer Satisfaction Awards. Dan Murphy’s took home the award for Liquor Store of the Year and first timer Discount Drug Store bagged the Chemist/Pharmacy of the Year award.
Mars named Fortune’s Top 100 list of best companies to work for
Food giant Mars has ranked #98 on the list of Fortune Magazine’s 100 Best Companies to Work For. The list by Great Place to Work shows the companies with the most talent retention and those that demonstrate higher levels of productivity than rival businesses. Wegman’s Food Market ranked 3rd while Nugget Market made it to the 81st spot this year.
Godiva sells Asia-Pacific businesses
Belgian chocolatier Godiva has announced the sale of select assets to MBK Partners. It will purchase the retail and distribution operations Japan, South Korea, Australia and the future rights to develop in New Zealand. The transaction includes consumer packaged goods, digital commerce, travel retail and more than 300 retail stores, as well as the Godiva production facility in Brussels that supplies product to these markets.
That wraps up the big stories for this week. Come back on Monday morning for the headlines in the FMCG sector.
