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FMCG News 2015 November

by Sarah Adamson

FMCG news with Sarah Admonson

Coca-Cola adds colour to summer campaign

  • Coca-Cola South Pacific has introduced colour-changing packaging as part of the next phase of its multi-million dollar summer campaign, Coke Come Alive.
  • The temperature-controlled designs feature on most packaging variants, including 250ml cans, 390ml, 600ml, 1L, 1.25L PET, and 2L, and frozen cups.
  • The new packaging is part of a multi-million dollar push over the summer, with a major national integrated campaign and is an evolution of the  #colouryoursummer campaign.
  • Returning this year as part of the campaign will also be image recognition technology. The  technology will be able to recognise ‘Come Alive’ colour packs across the entire trademark – Coke, Diet Coke, Coke Zero and Coke Life, as well as recognise packs that feature in our campaign advertising

Shortage on Infant Formula

  • 2 major infant formula manufacturers are scrambling to ramp up production amid a shortage in infant formula and toddler milk due to demand from China.
  • Thousands of parents have struggled for months to feed their babies and toddlers as supermarkets and chemists sell out of formula soon after products hit the shelves.
  • Frustrated parents say they can’t buy formula because of shoppers bulk-buying products to send to China.
  • Organic formula maker, Bellamy’s, and rival formula maker Danone, Nutricia, which owns the Aptamil and Karicare brands, are under the pump trying to increase supplies amid “unprecedented” demand.
  • Danone says it has increased production of Aptamil Gold + Toddler by 50 per cent, and Aptamil Profutura Toddler fourfold. The New Zealand factory is now producing 24 hours a day through the week, and we have implemented a weekend shift.
  • Bellamy’s said while it takes time to ramp up supplies, it expects stocks to improve from late November.
  • Whilst production had increased, there were limits to the amount of raw ingredients the company can access.

Blackmores

  • It is never a good look for a chief executive to sell shares in the company they run, especially $4 million worth, but it would be hard to beat the excuse given by Blackmores boss, Christine Holgate.
  • "I am soon to be married and I have sold the shares to help fund a new home," she said in her disclosure to the ASX this week. Holgate offloaded the shares on Monday.
  • The stock has rocketed more than 600% cent over the last year, an effort that has made the property bubble look tame, with Blackmores health supplements becoming hot property in China.
  • The stock broke through the $200 barrier last month after the company added even more froth with the news it is entering the infant formula market with Bega.
  • As the shares briefly pushed through the $200 mark, the shareholding of founder Marcus Blackmore, peaked at $844 million and billionaire status is now a distinct possibility before Christmas.
  • Holgate has also enjoyed the ride - her shares were briefly worth $13.6 million. This time last year the same shares were worth not much more than $2 million.

MasterFoods launch new BBQ friendly products for summer

  • MasterFoods has launched three new products aimed at those cooking BBQ’s this coming summer.
  •  The three products are:
  •  Hamburger Seasoning – a 126g jar of at least ten herbs and spices for adding flavour to homemade burger patties.
  • Homestyle Worcestershire Steak Sauce – Once discounted, the sauce has returned to supermarkets in a 250ml bottle.
  • Spicy Tomato Relish – a 250g jar which can be used on hamburgers, sandwiches and  other meat

Chinese dairy firm eyes Australia expansion

  • A major Chinese dairy company hopes Australian cows can help it quench China’s growing thirst for fresh milk.
  • China Dairy Corporation is considering expanding its milk supply operations into Australia to meet the insatiable demand for fresh milk, particularly for infants, in its homeland.
  • That expansion would be the company’s first offshore foray and may involve the acquisition of Australian farm land, cows, dairy producers, and technology.

Ocean Spray takes off with Qantas

  • Ocean Spray’s Original Craisins Dried Cranberries has landed in Qantas’ inflight range of breakfast box offerings.
  • Ocean Spray’s Original Craisins Dried Cranberries will be available in a snack sized pack on all domestic Australian Qantas flights until May 2016.
  • “Qantas has long been admired for its in-flight culinary offerings, so we are thrilled to be able to provide a tasty breakfast option like Ocean Spray Original Craisins Dried Cranberries to travellers across Australia,”said Elissa Booth, GM, Ocean Spray Australia.

Vittoria Coffee Fashion Series cups hit stores

  • For the first time, Vittoria Coffee’s coveted Fashion Series takeaway coffee cups have become available for the public to purchase.
  • Available exclusively in Woolworths supermarkets, the box set of cups contain 10 We Are Handsome prints that have been featured in the Fashion Series range over the past four years.

TWE gets nod for Diageo buy

  • Treasury Wine Estates has received the go-ahead from US regulators to proceed with its purchase of most of Diageo wines business in the US and UK.
  • The Aussie wine supplier on Wednesday said the US Federal Trade Commission had completed its review of the deal and had raised no objection.
  • TWE in October agreed to buy the Diageo operations for $US552 million ($A761 million) and will take on another $US48 million of leases. It raised $368 million through a share issue to help fund the purchase.

Contact a FMCG specialist at Six Degrees.