This week in FMCG

This week the FMCG industry had plenty of big stories. Read what happened this week.

Coles recalled milk brands

Milk brand Lactalis Australia pulled eight milk products from supermarket shelves on Thursday, including three Coles Brand 1 litre milk products. The milk recall is due to potential contamination with a cleaning solution that is used to clean factory equipment. The recalled milk may have a yellowish colour and/or a metallic chemical taste. Other brands recalled include
Pauls Smarter White, Paul’s Full Cream Milk, Physical Skim Milk, Physical Low Fat Milk and Rev Low Fat Milk.

Arnott’s marked the start of the construction of $65 million dollar factory

FMCG giant Arnott’s Biscuits has invested A$65 million in a new state-of-the-art warehouse at Huntingwood in Western Sydney. The ‘Turning of the Soil’ ceremony marked the start of construction. Arnott’s vice president Supply Chain Campbell International, Craig Funnell said that the ceremony marked the new investment as “a key element of Arnott’s continued success, ensuring we continue to operate effectively in a global market”. The new facility will increase storage space from 6,000 to 28,000 pallets. It will also manage all in-bound and out-bound deliveries for New South Wales from the Huntingwood site.

P&G to create recycled plastic podiums for Tokyo Olympics in 2020

MCG giant Procter & Gamble (P&G), the Tokyo 2020 Organizing Committee and the International Olympic Committee (IOC) will collaborate on The Tokyo 2020 Podium Project as they create recycled plastic podiums. They will use recycled materials from plastic shampoo bottles and dish detergent bottles. They are urging consumers to donate plastics from their backyards. Marc Pritchard, P&G chief brand officer, said that “The Tokyo 2020 Podium Project is an example of how the Olympic Games can be a catalyst to inspire actions that have a positive impact on the environment and society”. There will be donation boxes at the retail store chain AEON in Japan.

Wesfarmers to buy Catch Group for $230 million

Australian business Wesfarmers has acquired online company Catch Group for A$230 million. If the deal is cleared by the Australian Competition and Consumer Commission (ACCC), the online marketplace will continue to operate as an independent business unit under Kmart Group managing director Ian Bailey. He said that Catch was built upon a successful marketplace, led by technology and data thus would banked on growing its capabilities and accelerate the consumer-driven, omni-channel initiatives across department stores Kmart and Target. Catch Group managing director and chief executive Nati Harpaz said the team was looking forward to working with Kmart, and that the marketplace would continue to focus on delivering great value and savings to its customers.

SDA took Woolworths to Fair Work over new store structure

The SDA, the union for workers in retail, fast food and warehousing, is taking Woolworths to the Fair Work Commission over its consultation obligations in the overhaul of its store management structure. SDA national secretary Gerard Dwyer said the union is challenging whether Woolworths is undertaking “genuine redundancies” and whether the timeframe provided to staff is reasonable. A spokesperson for the supermarket said Woolworths has been “proactive” in consulting with the SDA.

Nestlé may expand plant-based burger partnership with McDonald’s

Confectionery giant Nestlé expanded its plant-based burger partnership with McDonald’s beyond Germany Incredible Burger in April, under the Garden Gourmet brand in Europe. McDonald’s also began selling the patties as “Big Vegan TS” at its restaurants in Germany during the same month.
Marco Settembri, the chief executive of Nestlé’s Europe, said that the fast food giant “is an exciting and big customer, but it is not the only option and we have quite good capacity to cope with a (possible) extension beyond Germany. Nestlé plans to launch a plant-based burger in the US later this year to rival the Beyond Burger.

That’s it for this week.Inside FMCG will be back again on Monday morning!

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