Retail and FMCG update

By Ivor Lloyd-Rees

Published on 29-10-2016

retail and fmcg update

Opportunity knocks with Coca-Cola Ginger

  • Coca-Cola South Pacific has announced the world premiere of its new limited edition flavour, Coca-Cola Ginger, in Australia.
  • Claimed to give consumers a 'refreshing ginger twist', the new flavour is aimed at attracting occasional and lapsed Coca-Cola drinkers.
  • Comes as a result of Coca-Cola recognising a commercial opportunity for ginger flavoured carbonated soft drinks with consumer research revealing that the market share in Australia is worth $80 million and is continuing to grow.
  • Limited edition packs will be available in Coles, Woolworths, independent retailers and petrol and convenience stores in a variety of pack sizes from late October through Summer 2016/17.

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What are Australia's favourite liquor stores?

  • First Choice Liquor is the top choice once again in the Liquor Store category of Roy Morgan’s Customer Satisfaction Awards, with a score of just over 93 per cent.
  • Less than a percent separates the Coles-affiliated liquor superstore from its runner up Cellarbrations (93%), while its rival Dan Murphy is close behind in third place (92%).
  • “Overall, the country’s liquor retailers are doing a good job of keeping their customers satisfied” said Norman Morris, industry communications director of Roy Morgan Research.
  • “With factors as diverse as store convenience, range of stock, price, staff and even store layout being of varying importance to different kinds of alcohol shopper, it is a challenge for bottle shops to hit on a winning formula for success,” said Morris.

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China now Australia’s biggest wine market

  • China has become Australia’s number one wine market after exports to the Chinese mainland jumped 51 per cent to $474 million in the past year.
  • A decade ago, wine exports to China were valued at just $27 million.
  • Currently, 93 per cent of wine sales to China are reds but white wines have seen a 33 per cent increase in the past year.

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Terry White, Chemmart merger approved by shareholders

  • Terry White Group shareholders have approved the pharmacy group’s merger with Chemmart at the company’s general meeting last week.
  • Terry White, chairman of the pharmacy group said the merger will create one of Australia’s largest retail pharmacy networks with approximately 500 pharmacies and $2 billion in retail turnover.
  • Completion of the merger is scheduled for October 31 with the $13 million (98.4 cents per share) capital reduction anticipated to be paid to shareholders on November 21.

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Lovisa appoints new CEO

  • Lovisa has confirmed the appointment of Steve Doyle as CEO at its AGM, with the jewellery and accessories retailer also confirming strong trading for the September quarter.
  • “Steve is a proven, passionate and dedicated leader in the retail sector,” said Shane Fallscheer, who will continue as managing director of Lovisa.
  • Michael Kay, chair of Lovisa said by putting the new structure in place, the retailer is positioned to deliver profitable growth in its core Australian business and develop in the UK.

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Woolies launches exclusive underwear range

  • Woolworths has partnered with iconic intimate apparel company Bendon to launch an exclusive range of underwear.
  • “In the last 12 months Woolworths sold more than 1.5 million pairs of briefs and our partnership with Bendon will ensure our customers continue to get more out of their supermarket shop.” said Samantha Hewlett, Woolworths category manager, Underwear, Socks, Hosiery, Footwear, Apparel & Baby.
  • “We’re absolutely delighted to be creating these exclusive ranges for Woolworths customers and to give Australian consumers access to high quality underwear at an affordable price.”

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For more insights into the FMCG and Retail sectors, get in touch with Ivor Lloyd-Rees on 02 8024 7177