This week in FMCG
This week a petrol giant slashed thousands of jobs worldwide and an Australian brewery recalled gin bottles which had been accidentally filled with hand sanitiser. Read on for the top headlines from this week.
Energy company BP cut 15 per cent of its global workforce due to the impact of the Coronavirus outbreak, Reuters reported. Chief executive Bernard Looney said the business will slash 10,000 jobs by the end of this year, reducing its current workforce of 70,100. The cuts will primarily impact senior office-based positions as opposed to frontline operational staff. About a fifth of the cuts will be in Britain. BP cut its 2020 spending plans as the pandemic resulted in less demand for oil and it said that it will cut costs even further.
Lion had to shut down its IT systems this week due to a cyber attack, causing disruption to suppliers and customers. Lion said it is working with expert advisors to address the issue. Damien Manuel, director of Cyber Security – Research and Innovation Centre at Deakin University told Inside FMCG that since the outbreak, there has been an increase in individuals who are targeted via phishing (email), smishing (SMS) and vishing (voice), as most employees switched to working from home.
Amazon Australia entered the online liquor market with the opening of a wine, beer and spirits store. The store will sell Penfolds, VB, Johnnie Walker, Curatif Cocktails and Lawrenny Estate. Matt Furlong, Amazon Australia country manager, said that they are “thrilled to work with local brands at launch and help them access our customers, marketing tools and logistics expertise to grow their business”.
Victoria’s Apollo Bay Distillery recalled its SS Casino Dry Gin as nine bottles were mistakenly filled with hand sanitiser. Food Standards Australia New Zealand (FSANZ) said that the product was recalled as it was labelled as gin, but does not contain gin. The company told Inside FMCG that all of the affected products have now been recovered and said that they “are very sorry this occurred. Rest assured we will be following up our procedures to ensure this does not occur again”.
Businesses in Victoria could be fined up to A$10,000 over mixed messaging around the state’s order to work from home. Victorian Premier Dan Andrews announced that Aussies should continue working from home for at least another month, to help prevent a second wave of Coronavirus. Andrews’ statement advised that from June 1, the obligation of employers of keeping their staff working from home would be included in the chief health officer’s directions. But the amended Restricted Activity Directions, dated Sunday May 31, was stated differently as, “An employer must not permit an employee to perform work at the employer’s premises where it is reasonably practicable for the employee to work at the employee’s place of residence or another suitable premises which is not the employer’s premises.”
Have a good weekend! We’ll be back with the latest FMCG news on Monday morning.