This week in FMCG
This week’s top headlines involve a supermarket giant lawsuit and rising milk price to support farmers. Read what happened below.
Supermarket giant Woolworths will defend the class action filed by current and former employees who claim the underpayments scandal is worse than the $300 million estimate reported in October. Woolworths said it will “fully defend the proceedings” which it believes are “without merit”.
Coles will increase its payments to dairy co-operative Norco by over $5.25 million after the ACCC raised concerns that the supermarket giant misled consumers about price increases being passed on to farmers. In March, Coles increased its milk price to 10c per litre for 2L and 3L Coles Brand milk, but the consumer authority began investigating the situation after claims that when an unrelated 6.5 cpl increase commenced on April 1, 2019, Coles reduced its payments to Norco under the 10 cpl retail price increase from 10 cpl to 3.5 cpl.
Fuel retailer Caltex Australia said the $8.6 billion takeover bid from Canadian convenience operator, Alimentation Couche-Tard (ATD), undervalues the business. The unsolicited, non-binding proposal was forwarded by ATD last week. The petrol board saw that the offer “does not represent compelling value” for shareholders given factors such as future earnings potential, international growth, and the proposed IPO of up to 49 per cent of 250 retail sites.
Australia’s iconic spread Vegemite has been the inspiration for a new Booking.com accommodation at Brogo, NSW. It is a four-metre-high and two-metre-wide jar that has a Vegemite bed, eye masks, slippers, socks and an alarm clock. The villa can accommodate two guests at a time and is available for two nights only. It was built by three builders, two sculptors, one scenic artist, a printing team and has a custom-made Vegemite bed quilt and sheets.
The first Coke cafe in a cinema opened at the new Toppen Shopping Centre in Tebrau, Malaysia. Coke Zone was inspired by 1950s-style American diners. The cafe has a “Coca Cola” sign above the counter where they can order fresh Coke and snacks like popcorn or confectionery. There are large sofas for customers to relax; free high-speed WiFi and charging stations for mobile devices.
That’s it for this week, have a great weekend.