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This Week in FMCG

August is coming to an end but the FMCG sector has delivered big news this week. From supermarket to confectionery news, catch up on what happened this week on Inside FMCG.

David Jones enters convenience sector with BP

Retailer David Jones sealed a deal with petrol business, BP to enter the A$4.7 billion convenience game. The deal will see high end products from David Jones Food sold at BP sites. There will be 10 strategically positioned sites around key regions in Melbourne and Sydney that will be transformed to focus on city dwelling consumers. Pieter de Wet, managing director of David Jones Food, said the launch will signify a new chapter for the department store’s food banner.

Woolworths expands Quiet Hour

Supermarket giant Woolworths is rolling out low-sensory shopping experience Quiet Hour to more stores across Australia. Over 260 Woolworths stores will dim their lights, turn down the volume of phones, registers and radio and turn off oven buzzers for an hour every Tuesday between 10:30am and 11:30am to reduce anxiety and sensory stress for customers. Roll cages will be removed and there will be no PA announcements in-store except for an emergency.

Kaufland adds more sites in Victoria, nine under review

Supermarket giant Kaufland Australia has pushed forward with two more stores in Victoria, while another nine locations are under review. The two new stores are located at Oakleigh South and Coolaroo. In March, it announced three Victorian stores at Dandenong, Epping and Chirnside Park and has already began the construction of the first two. Kaufland Australia managing director Julia Kern said that the Dandenong store marks “a tremendous milestone” in their expansion in Australia. The A$255 million distribution centre in Mickleham will be one of the largest in Australia.

Cadbury unveils Unity bar to promote diversity

Confectionery giant Cadbury created a limited edition four-in-one Unity bar in India to bridge the gap between different cultures and religions. The chocolate promotes diversity by combining dark, blended, milk and white chocolate – all in one chocolate block. Cadbury said this was designed to bring together “people of different castes, creed, languages, regions and religions”. It won the hearts of consumers with over 7,000 likes on Instagram.

Caltex to offload 50 stations in a bid to cut costs

Petrol giant Caltex Australia’s half-year profit fell by 54 per cent. Managing director and CEO Julian Segal said it was “disappointing”. Due to the major loss, Caltex will sell 50 petrol stations to cut costs and is currently reviewing another 240 stations. The head office will also be moved from Sydney’s CBD to the suburbs by 2021. The petrol giant said it will be unable to deliver on its 2018 deal with supermarket giant Woolworths to create 250 retailers.

That’s it for this week. We’ll see you again on Monday morning with the top headlines.

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