This week served up plenty of big stories from the FMCG sector, with a Swiss chocolate maker acquiring an Australian company and supermarket giants lifting product restrictions following a period of grocery stockpiling.
Swiss chocolate maker Barry Callebaut is to expand into the Australian and New Zealand markets with the acquisition of Australian company, GKC Foods. Barry Callebaut has 10 chocolate and cocoa factories in Asia as well as being one of the biggest sweets maker in the Asia Pacific. The new deal will the company have a direct presence and manufacturing in the Australian market and expand its position in industrial chocolate.
Coles and Woolworths lifted product restrictions following stockpiling at the height of the COVID-19 pandemic. Coles lifted restrictions on all products including flour, pasta, rice, toilet paper, liquid soap and hand sanitiser.Meanwhile, Woolworths eased product restrictions on toilet paper, rice, hand sanitiser and antibacterial wipes – from one item per store to either two or four products per shop. It also lifted limits on pasta, frozen vegetables, tissues, baby wipes, baked beans, canned spaghetti, paper towels and disposable gloves.
Coca-Cola Amatil (CCA) reported that COVID-19 lockdown restrictions have severely impacted volumes across its major markets. During its trading update, the soft drinks giant’s sales volumes declined by 33 per cent in April compared with a year earlier, and that volumes are still down 26 per cent for the first three weeks of May, compared with a year ago. In April, CCA’s income has majorly declined in terms with volume, but the impact on its margins has been much greater, reflecting shifts in channel and portfolio mix.
Blackmores is targeting to raise A$117 million to strengthen its balance sheet and support growth initiatives in Asia. The company plans to secure A$92 million via an institutional placement and another A$25 million through a share purchase plan. Blackmores CEO Alistair Symington said the equity raise will help strengthen its balance sheet and liquidity position as well as having the flexibility to pursue key strategic priorities.
Marley Spoon Australia created a new range of snacks to its meal kits as more consumers are cooking and baking at home during the pandemic. From June 1, customers will be able to order the snack kits and prepare them using the raw ingredients and recipe card at home. Marley Spoon will deliver the new snack kits straight to their door.
That’s it for this week. See you on Monday morning!