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FMCG Update

FMCG update

Woolies won’t stock new Coca-Cola No Sugar

  • Australia’s largest supermarket has decided not to stock Coca-Cola Amatil’s (CCA) new no-sugar option.
  • The supermarket giant has stated that consumers already have ample choice when it comes to low-sugar soft drinks, including Coke Zero, which CCA plans on phasing out in 2018 after cementing Coke No Sugar in the market.
  • IBISWorld senior industry analyst Samuel Johnson said Woolies’ decision reflects increasing competition for soft-drink shelf space as water becomes more popular, but noted that the giant will likely change its tune once Coke Zero is phased out.

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Metcash names former Tesco exec as CEO

  • Food and grocery wholesaler Metcash has appointed former British supermarket giant Tesco executive Jeff Adams as its next CEO.
  • Adams will step in to the four-year-role in December, succeeding Ian Morrice who in June announced his intention to retire after five years as chief executive, Metcash said on Tuesday.
  • He will join Metcash in September, on a $1.8 million per year pay package plus possible bonuses, and will work with Ian Morrice, Metcash current CEO, for three months before formally starting in December.

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China demand boosts A2 Milk sales expectations again

  • A2 Milk Co has lifted annual sales guidance for the second time in as many months as it beefed up production to meet sweltering Chinese demand for infant formula.
  • The Auckland-based, Sydney-headquartered milk marketer says revenue is expected to be $545 million in the 12 months ending June 30, a $20 million increase from its April update which was itself an upgrade. A2 reported annual revenue of $352.8m in 2016.
  • A2 shares last traded at $3.56 and have jumped 67 per cent so far this year, outpacing the 9.2 per cent increase on the S&P/NZX 50 index over the same period.

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Blackmores set to pluck new CEO from inside

  • Departing Blackmores chief executive Christine Holgatesays an internal successor would be ideal as a motivating tool for the staff, the $1.5 billion vitamins company, and for stability after a rollercoaster ride.
  • Two of the strongest internal candidates to take over as full-time chief executive when Ms Holgate officially departs at the end of September are David Fenlon, the Blackmores Australasian managing director, and Peter Osborne, Blackmores managing director for Asia.
  • Ms Holgate said the final decision would be up to the board, but she would "have some input".

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Treasury Wine Estates taps into rise of millennials

  • Millennials have overtaken the Baby Boomers to become the second-largest segment for wine sales in Australia, prompting Penfolds owner Treasury Wine Estate to build a new brand from scratch to better target the younger drinkers.
  • Treasury Wine Estates managing director for Australia and New Zealand, Angus McPherson said a new brand, Samuel Wynn & Co, has just hit the market in the Treasury portfolio and is deliberately designed to appeal to customers from 18 to 35.
  • The biggest wine drinking segment was still the 35 to 54-year-olds. It represents about 36 per cent of total sales, just ahead of millennials at 34 per cent, and Baby Boomers at 30 per cent.

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Matthews Australasia appoints new CEO

  • Matthews Australasia has announced the appointment of Mark Dingley to the role of Chief Executive Officer (CEO), effective July 1, 2017.
  • Dingley’s appointment coincides with the transition of current Managing Director Lester Nichol to the role of Chairman, after 36 years as CEO/MD.
  • Mark Dingley is also Chairman of the Australian Packaging & Processing Machinery Association (APPMA) and is actively involved with GS1 Australia. ​​

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For more insights into the FMCG industry, get in touch with specialist Jennifer Kenworthy on 03 8613 3515.