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FMCG news

by Sarah Adamson

fmcg

a2 raises earnings forecast

  • a2 Milk Co raised its annual earnings forecast, citing better-than-expected sales of its a2 Platinum-branded infant formula.
  • Operating earnings before interest, tax, depreciation and amortisation are expected to rise for the company which markets milk with a protein variant said to have health benefits to between $NZ33 million and $NZ37 million ($A31.1 million and $A34.8 million).
  • Annual revenue is forecast to rise to between $NZ300 million-$NZ315 million, ahead of the November forecast of $NZ285 million and from $NZ154 million in 2015, it said.
  • The upgrade is the second in as many months as demand for a2’s Platinum branded infant formula continues to exceed expectations.
  • The strong trading performance advised today provides further evidence of the increasing appeal of the a2 Platinum brand in Australia and China and the growth potential in additional markets in the future.

Source: Inside FMCG

Groceries go gang-busters

  • The Australian Retailers Association (ARA) is encouraging shoppers to hit supermarkets and other fresh food retailers this weekend and early next week to avoid the traditional last minute rush for Christmas groceries expected on Wednesday and Thursday.
  • Fresh food, perishables, alcohol, and other groceries, along with last minute gift purchases will be top of shopper’s lists this week as Aussies stock up on food and beverages for Christmas entertaining, or to tide them over on Christmas Day when stores may be closed.
  • Australian consumers are expected to spend almost $19 billion on grocery items this Christmas, up 2.5 percent on last year. The ARA ‘s top seller predictions for groceries in the next week include boxed chocolates, confectionary, ham, turkey, seafood, chips, dips and crackers.

Source: Inside FMCG

Fosters sued for deception

  • An American man is suing the brewers of Foster’s beer because it’s not brewed in Australia.
  • New Yorker, Leif Nelson, contends, in a proposed class action, that Foster’s is deceptive because it’s marketed in the US as an imported Aussie beer but is actually brewed in Texas.
  • Court documents from Nelson say Miller Brewing Co included Australian slogans and symbols to sell the locally-made product at an inflated price.
  • A spokesman for MillerCoors told the New York Daily News that the company “employs an Australian brewmaster so that the beer tastes as true to its origin as possible”.

Source: Inside FMCG

Fonterra to sell Aussie business

  • New Zealand-based dairy giant, Fonterra, will sell its Australian yoghurt and dairy dessert business to Parmalat Australia for an undisclosed sum.
  • Fonterra said the sale of the business, which includes manufacturing facilities at Tamar Valley and Echuca, is part of a plan to restore Fonterra’s Australian wider business to strong profitability.
  • Parmalat has offered employment to all of Fonterra’s Echuca and Tamar Valley employees in the yoghurt and dairy dessert business.

Source: Inside FMCG

Blackmores opens first flagship

  • Vitamin and supplement company, Blackmores, has opened its first Australian flagship store at Westfield Bondi Junction.
  • The store will offer the complete wellbeing experience with rooms for private consultations with qualified naturopaths, a ‘Wellbeing Bar’ for food and drink tasting, as well as offering the comprehensive Blackmores product range.
  • “Our new flagship store will provide a personalised experience for our customers to take control of and further invest in their health. “
  • “We know there is a lot of confusing information out there which is why we want to personally help Australians on their journey to wellbeing through advice and education,” David Fenlon, MD, Blackmores Australia and New Zealand.

Source: Inside FMCG

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