This week in FMCG
This week there was plenty of big stories from the FMCG industry, from a record quarter for an Australian supermarket giant to high demand for meal kits during the pandemic.
Woolworths and Coles record high sales growth in Q3
Supermarket giants Woolworths and Coles have both reported high sales growth in the third quarter amid the COVID-19 pandemic. Woolies reported it reached A$11.1 billion in food sales while Coles recorded 13.1 per cent comparable sales growth. Coles CEO Steven Cain said the result is “the highest quarterly comp sales growth in Coles’ history”.
A hundred Chemist Warehouse stores in NSW, Victoria, Queensland and South Australia have started selling News Corp’s metro mastheads, The Daily Telegraph, Herald Sun, The Courier Mail and The Advertiser. The trial will run until July 2020 and the distribution of the newspapers may be extended to 400 stores nationwide.
Marley Spoon has seen a surge in demand globally for its home-delivered meal kits amid coronavirus lockdowns. It now expects to achieve positive earnings this quarter. The company earned 22 million euros in revenue in the four weeks since mid-March. Its shares more than quadrupled since the coronavirus crisis began.
Aldi has reassured shoppers that it will continue to keep prices low during the pandemic. CEO Tom Daunt reaffirmed the discount grocer’s commitment to providing “the lowest prices, every day”. He said that “despite these changing behaviours, we are acutely aware that many Australians are facing financial uncertainty right now. Our promise to you is that Aldi will never be beaten on the price of your weekly grocery shop”.
Australia’s trade minister Simon Birmingham said the country won’t give in to coercion after China threatened to withdraw support from major export industries. Beijing threatened to boycott the local education, tourism and agriculture sector as retaliation against the Morrison Government’s push for a global review into the origins of the Coronavirus. Simon Birmingham said that “Australia’s position is very clear that we believe it is entirely reasonable … for there to be a genuine inquiry and investigation into the cause of the loss of life of hundreds of thousands of people around the world”.
Thanks for reading Inside FMCG this week. Have a restful weekend!