It’s that time of the week when we take a look back at the top stories that dominated the headlines in the FMCG sector. Read back on the big news stories below.
Australian biscuit company Arnott’s has named former Kraft Heinz executive George Zoghbi to lead the company through the “next phase of evolution” under the new ownership of KKR. Zoghbi will commence the role in March replacing interim CEO Brian Driscoll. The news follows the acquisition of investment firm KKR which was completed in December. Driscoll said he is confident that “George’s leadership will challenge the business to seek growth and innovation opportunities”.
Supermarket giant Coles is expected to report solid earnings for the first half of FY20 after a strong Christmas period. The grocery expects first half earnings to be between A$710 million and A$730 million, hindered only by margin pressure in liquor. In a first half trading update on Thursday morning, it reported comparable sales growth of 2.0 per cent in supermarkets, helped by strong growth in the second quarter of 3.6 per cent.
Discount grocer Aldi has launched a free grocery app to promote healthy food choices. Healthy Picks was developed in partnership with The George Institute for Global Health. The app gives users a nutritional rating of a product upon scanning the barcode with their phones. Aldi said all packaged food and drinks bar fresh items will display the nutrition information and either a Health Star Rating or Traffic Light Label.
Winemaker Treasury Wine Estates faces a second class action from shareholders led by Maurice Blackburn Lawyers over possible breaches of market disclosure laws. An investigation centres around market disclosures on its US business and the health of its commercial wine category, which was followed by sharp falls in the company’s share price.
Unilever is considering all options for its tea brands, T2, Lipton, PG Tips and Bushells, as part of a strategic review of the business. Unilever has seen a drop in sales of traditional black tea in recent years based on changing consumer habits. Tea saw price-led growth, but volumes declined due to subdued consumer demand. Unilever CEO Alan Jope said the company was continually evaluating its portfolio. The strategic review will conclude by mid-year.
That’s the top headlines for this week. Have a good weekend!