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This week in FMCG

This week’s trade tensions with China reached new levels, and Australian consumers voted for their favourite products. Catch up on the top stories from this week.

Coles extended direct milk contracts

Coles expanded its Coles Brand milk model to SA and WA wherein the retailer deals directly with farmers on a farmgate milk price. Afterwards it pays processors such as Lion Dairy and Drinks, Brownes Dairy or Lactalis Australia to process and bottle the milk under a toll processing agreement. Coles said that it guarantees farmgate prices for local farmers, with either a one or two year contract and flexible supply options.

Canstar Blue revealed Australia’s favourite products

Canstar Blue revealed the top performers across products such as coffee, tea, cheese and razors. Lavazza won the Most Satisfied Customers Award for its coffee beans. Aldi topped the list in sliced cheese and razors for men. Twinings earned the Most Satisfied Customers Award for its tea bags.

In-home dining is here to stay

The increased numbers of people dining at home due to COVID-19 lockdowns is set to continue post-pandemic, according to UBS’ latest report. Restaurant closures could see the market contract by A$5 billion over the next five years. While a surge in demand for online delivery and meal kits will fuel Aussies interests in home cooking. Consumers are expected to be more cautious in returning to restaurants despite the relaxing of restrictions.

Low cholesterol Sultana Bran unveiled

Kellogg Australia rolled out Sultana Bran+ with Cholesterol Lowering Plant Sterols. The new cereal includes plant sterols. Kellogg’s senior nutrition manager, Dr Gina Levy said that sterols helps lower cholesterol.

China banned some meat imports from Australia

China has halted meat from four Australian abattoirs amid ongoing tension between the two countries. Kilcoy Pastoral Company; Dinmore and Beef City (owned by JBS) and Northern Cooperative Meat Company at Casino were affected. China also threatened to slap an 80 per cent tariff on Australian barley. Australian Meat Industry Council told Inside FMCG that they are well-versed with China’s strict requirements on labelling and are taking it seriously.

That wraps up our news for the week. Have a great weekend.

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