This week in FMCG

This week the FMCG sector witnessed some more big headlines. Take a look back on the major stories in the industry this week.

Woolworths to overhaul stores

Supermarket giant Woolworths plans to revamp its store operating model for the first time since 2011. It will put more focus on fresh food, convenience and customer service to suit changing customer needs. Claire Peters, managing director at Woolworths, said that in recent years “our customers’ needs have changed, but the way we have been operating our stores has stayed the same”.

Coles to source milk directly from farmers

Supermarket giant Coles will start sourcing milk directly from farmers next month for its Coles Brand milk. It will bypass milk processors and pay dairy giant Saputo to process and bottle under a toll processing agreement. The grocery will offer longer-term contracts to the dairy farmers with the option to choose from one, two or three year contracts. Coles chief operating officer Greg Davis said that the move will allow farmers to have more choices of length of contract and have a more stable source of income.

Coca-Cola Amatil splits with SPC

Soft drinks giant Coca-Cola Amatil (CCA) has sold its fruit and vegetable processing unit to Shepparton Partners Collective for A$40 million. Shepparton Partners is a joint venture between Perma Funds Management and The Eights. Its current workers will be made as permanent employees of the SPC team. CCA group managing director Alison Watkins said its a good news for SPC and Goulburn Valley. Shepparton Partners Collective is aligned with the value of SPC’s brands.

Darrell Lea’s first chocolate block range

Australian confectionery company Darrell Lea has created its first chocolate block range in its 92-year history. The sweets giant also owns six varieties including Rocklea Road, Liquorice, Peanut Brittle, Fruitier & Nuttier, Peppermint Partytime and Caramel Craving. Tim York, CEO of Darrell Lea said that since the company makes “Australia’s favourite confectionery products and we knew these would translate perfectly into a block format”. He plans to change the brand much known for liquorice as it dabbles into more chocolate product range.

Thomas Foods to rebuild with a new plant in South Australia

Food company Thomas Foods International is set to build a new state-of-the-art meat processing facility at Murray Bridge, to replace its original plant destroyed by fire in January 2018. Thomas Foods International CEO Darren Thomas said in a statement it will create around 2000 jobs once it opens. He said the new facility will have “the latest advancements in technology, efficiency, environmental sustainability, animal welfare and workplace safety”. It’s the single largest investment of the company in its 30-year history.

We will be back on Tuesday with the latest news. Enjoy the long weekend.

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