This week consumers in Melbourne began panic buying again and big brands bowed to public pressure to rethink marketing practices. Read the top headlines from this week in FMCG.
Both Woolworths and Coles reinstated purchase limits on select items at the first signs of a return to panic buying in Melbourne. Limits have been placed on toilet paper, hand sanitiser, paper towel, flour, sugar, pasta, mince, UHT milk, eggs and rice. Woolworths said that it saw elevated demand this week, while Aldi is currently monitoring the situation, but has not applied stricter measures as of yet.
Nestlé will rename Allen’s Red Skins and Chicos but the new names have not yet been finalised. The confectionery giant said that there is a “need to ensure that nothing we do marginalises our friends, neighbours and colleagues”.
Bayer-owned weedkiller brand Roundup has to pay out almost US$16 billion to settle lawsuits in the US. Maurice Blackburn Lawyers national head of class actions Andrew Watson said that the US settlement does not impact the Australian cases because it was made without admission of liability.
Woolworths has forecasted a drop in earnings for FY20 after flagging one-off cost linked with the Endeavour Group restructure; a transition to automation and further underpayments in its hotel business. Despite strong trading in supermarkets, the one-off costs of A$591 million will see full year earnings before interest and tax in the region of A$3.2 billion to A$3.25 billion, compared to A$3.29 billion for a 53 week period in 2019.
Coca-Cola and Morphe have launched a new makeup collection, partnering with famous beauty gurus such as Jaclyn Hill or Jeffree Star. Thirst for Life Collection features the Coke logo on lip glosses, eyeshadow palette, highlighters and brushes.
Have a great weekend. We will be back with the latest industry news on Monday.