Matthew May

Woolworths reports price deflation in the third quarter. Rate is - .2%. This was largely as a result of 6% deflation in produce and 9% deflation in red meat prices. If you consider the percentage of sales in these two areas for WW supermarkets, plus an overall decline in comparable units vs same time last year (down .5%) then inflation still prevalent in grocery categories (in fact, Coles indicated earlier this week grocery inflation still well above 2%) #supermarkets #foodinflation #grocerypricesup

5

🚨 Commerce Commission blocks Foodstuffs merger proposal 🚨 The New Zealand Commerce Commission has declined the proposed merger of Foodstuffs North Island Limited and Foodstuffs South Island, citing concerns that it would substantially lessen competition in the grocery marketing . If approved, this merger would have combined the two co-operatives into one national grocery entity, further consolidating the market and reducing the number of major grocery buyers from three to two, alongside Woolworths. 🛒 What this means - The merger was expected to result in greater buyer power for the combined entity, potentially lowering prices for suppliers but raising concerns about reduced supplier innovation, choice, and consumer product quality. - Consumers could face fewer choices in grocery products and higher risks of price coordination between the two dominant players, Foodstuffs and Woolworths. - This decision also emphasises the importance of maintaining competitive dynamics in the sector, ensuring room for new players and a diverse retail landscape. 💡 Pros - Protects consumers from potential price hikes and maintains competitive pressure in the grocery sector. - Supports smaller suppliers by preventing a significant reduction in buyers for their products. - Helps avoid price coordination risks between the two largest grocery retailers. ⚠️ Cons - Foodstuffs argued the merger could have generated operational efficiencies, benefiting suppliers with lower costs and providing more consistent pricing across the country. - Missed opportunity for greater scale economies that could reduce prices for consumers over time. - Foodstuffs operates over 500 stores across New Zealand under its three main banners: PAK'nSAVE New World, and Four Square ​ - In comparison, Woolworths New Zealand (formerly known as Countdown Supermarkets has 194 supermarkets directly, along with approx. 70 SuperValue and FreshChoice stores​. - This highlights the scale and competition between the two major players in New Zealand's grocery sector and the efficiencies Foodstuffs New Zealand would have gained would have been significant. - Also Foodstuffs stores are franchise operated. While individual owner/operators are a core part of each and every community, they are also in business to make money. However, in my personal experience, owner/operators are typically well balanced in making a reasonable profit, being a great employer and contribution positively to their community. When they face competition they are fierce rivals. 🤔 For New Zealand shoppers and the grocery market, the decision ensures competition remains robust, though Foodstuffs misses out on potential efficiency gains. I can see both sides of the coin, but if I was Foodstuffs, this move makes perfect sense.

21

8 Comments

Do you want more choice when it comes to where you buy quality Meat, Produce and Groceries? It’s a proud moment as we do just that via The Meat Box. Create your own box by choosing your favourite meat cuts, produce and groceries, or choose one of our preselected options. Delivery NZ wide. #supportsmallbusiness

29

1 Comment

How are Aldi cheaper than Woolworths Supermarkets & Coles Group? The answer is pretty simple: 1. Fewer staff. 2. Less products (1,800 items as opposed to Coles and WW estimated 20,000 to 25,000) 3. Smaller stores (so lower rent) So for all those asking for cheaper pricing from Coles & WW, will you sacrifice range and customer service for price? https://lnkd.in/gHXY8AnB

3

3 Comments

🍸 The Rise of Alcohol-Free Alternatives in Australia 🍸 As we move through 2024, the Australian beverage industry is witnessing a fascinating shift towards alcohol-free alternatives. More Australians are prioritizing their health and wellness, leading to an increased demand for beverages that offer the same social experience without the alcohol. Whether it's for mental clarity, fitness goals, or overall wellness, these options are becoming mainstream. The concept of mindful drinking is gaining traction, with consumers becoming more conscious of their alcohol intake. They're seeking sophisticated, flavourful alternatives that allow them to enjoy social settings without compromising their health. The market is now bursting with innovative alcohol-free options that don't sacrifice taste. From botanically-infused spirits to zero alcohol beers and wines, the variety and quality of these beverages are better than ever. These alcohol-free choices are also promoting social inclusivity. They provide options for everyone, ensuring that non-drinkers or those looking to cut down on alcohol still feel part of the celebration. Many alcohol-free brands are leading the way in sustainability, using eco-friendly packaging and ethically sourced ingredients. This aligns perfectly with the values of environmentally-conscious consumers. The availability of these alternatives is growing significantly, with more retailers and online platforms stocking a diverse range of products. This increased accessibility is making it easier for consumers to make healthier choices and enjoy these innovative beverages. I’d love to hear from you: Are alcohol-free alternatives changing the way you socialize and consume beverages and how do you see this trend evolving in the next few years? #AlcoholFree #MindfulDrinking #BeverageIndustry #Australia #HealthAndWellness #Sustainability #InnovativeBeverages

18

3 Comments

FIRST CHOICE. I built an FMCG Sales foundation in an incredible global snacking business. At the time the business was an underdog in the Australian market motivated by a simple mantra: ‘first choice’. Becoming first choice was a pan-organisational goal focused on winning with consumers and customers. In my capacity (field sales), I learned early that competitive advantage in samey categories could be gained through service excellence, specifically: having intent, being available, urgent, highly communicative and fostering partnerships. The measure? Getting the phone call first. Entering the crowded room of recruitment, this same philosophy underpinned our approach to getting established and achieving cut through. Our mantra was (and still is) ‘inspired to deliver a new standard’. After almost thirteen years, I can honestly say nothing has changed. We remain inspired, we continue to deliver a high standard and enjoy being ‘first choice’ to many employers and professionals. To all who have engaged and partnered with us over the years, thanks as always for having us. Equally, if you’re looking to engage a trusted, highly regarded and pinpoint accurate recruitment/search partner, look no further. Yours in (recruitment) service excellence, Steve Ward with Emma Ward Core Element | Executive Recruitment Partners

99

5 Comments

"The Australia statistics are starting to roll a little too easily off the tongue: 7.6 million tonnes a year, costs the country $36.6 billion or $2500 per family annually, and is equivalent to 29 million meals going to waste every year. If that’s hard to visualise, our annual food waste pile is the size of Queensland." With the National Food Waste Summit taking place in Melbourne, Food & Drink Business reports on some of the talking points from the week including key milestones, framework, progress and actions being undertaken to tackle food waste in Australia. Shared via David Pinker #FoodWaste #NationalFoodWasteSummit #Environment #ClimateAction #Australia #FoodProduction #FoodLoss

3

What drives your grocery shopping habits? Are you a food enthusiast or maybe a convenience-seeker? Concerned about health, finding a bargain or being eco-conscious? A new global report identifies five key consumer personalities and says grocers must meet the particular needs of customers. I say that’s what our independent grocers have always done, with the support of our hard-working wholesalers.

10

1 Comment

ProTen, a chicken farm producing $70m EBITDA, is looking for a buyer. They provide a significant portion of Baiada's chickens, which holds the Steggles & Lilydale brands. I knew chicken was a big business in Australia but I didn't realise just how big. Australia produces 660 million chickens a year. And that's not including egg laying chickens. ProTen holds 24% of this market, operating 720 sheds across 62 farms. It's a huge operation. Aware Super acquired the company in 2018 and pumped the business full of growth hormones, taking revenue from $40m to $150m. In just 6 years. But what surprises me most is how high the EBITDA margin is, $70m EBITDA on $150m revenue. These chooks are $10-$12 at Woollies & Coles So, assuming that's the price it's sold to the supermarkets, it must cost $5 to produce a chicken. But then Baiada would take a cut for using the Steggles and Lilydale brand. It looks like it costs $3-$4 to produce and ship a chicken. Think about the labour and feed required to raise a chook for over a month. Crazy cheap.

124

25 Comments

Just like humans, birds are becoming infertile care of unsafe exposures to toxic chemicals in plastics, in food (pesticides, PFAS), in air (P2.5, PAH,PFAS etc) and in water. What seems like a happy story below- when you comprehend the scale of reproductive failure happening, there really ought to be rational concern. One in 3 pregnancies now end in miscarriage. One in 6 couples need fertility treatment to conceive. Should we offer the falcons IVF? Or better, regulate endocrine disrupting chemicals as an urgent One Health priority.

15

1 Comment

ANNOUNCING THE LAUNCH OF PLANTWELL I am incredibly proud and excited to see #Plantwell hit the shelves! Plantwell - Grown by Nature. Proven by Science – is now available at Woolworths stores with broader distribution later in the year. Plantwell by Sanitarium combines the best of nature and science into a range of delicious and versatile plant milks, delivering targeted health benefits with clinically proven superplants and superfoods.   It is the first Australian plant milk range to: • Contain plant sterols in our Cholesterol Lowering plant milk • Contain 250mg Wellmune in our Immune Defence plant milk • Contain mushroom vitamin D • Deliver 500mg calcium per serve (from seaweed) in our High Protein Bone & Gut plant milk • Contain 4g prebiotic fibre per serve, and • 2.5g fructooligosaccharides (FOS) per serve to promote good gut bacteria in our High Protein Bone & Gut plant milk Plantwell is an incredibly easy and delicious switch to make better health accessible to Australians, which is what it is all about. It is not every day that you get to work on an #innovation of a new brand and product range, both as project lead and SME, actively involved in all facets of this innovation. From consumer research, product design, claims development, changing the Food Standards Code, and developing claims dossiers, to shaping this bold brand and its stand-out design. Then, a move into Marketing to manage the go-to-market process and help bring it to shelf. It is an absolute privilege. https://lnkd.in/ghjXudzK #NPD #PlantMilk #SuperPlants

142

10 Comments

As story teller's Tribe are excited to share Simon McLennan's story - the first episode of our Tribe Talks series - FMCG Edition. Simon is interviewed by Cameron King and you'll hear how his amazing career grew. It's inspiring... There are more of these to come, and they are worth the watch! #tribeexecutivesearch #fmcg #findyourtribe

1

When is enough, enough? Woolworths warehouse workers already earn $85,000 to $95,000 annually, a remarkable 60% above the storage award rate of $25.57/hour. Yet, unions are demanding an additional 12.5% annual pay increase and threatening empty shelves before Christmas if their demands aren’t met. This strike impacts everyone:    •   Consumers: Higher grocery prices as businesses are forced to recover costs.    •   Businesses: Increased employment costs like superannuation and workers’ comp premiums, creating significant financial strain.    •   Employees: Public backlash and potential risks to long-term job security. Jobs aren’t paid based on cost of living but on skills, performance, and market demand. For context, a warehouse role paying up to $95k already exceeds salaries for professions like nurses or teachers, which require far more responsibility and skill. Even Toyota warehouse workers, who earn award rates, wouldn’t demand such excessive pay rises. Unions should represent workers fairly, but these demands are irresponsible and greedy, hurting businesses, workers, and consumers alike. Focus needs to be on performance-based rewards and sustainable solutions, not chaos. Unions should foster collaboration, not ransom tactics.

2

2 Comments

Major Supermarkets back in "the firing line" as the Federal Opposition ( historically the party of "free enterprise") announces support for the ACCC having powers to force the "big two" to divest stores if anti-competitve activites are proven. Not sure this move will deliver the lower grocery prices shoppers. Every action has a reaction and in this case if divestiture becomes law, maybe the chains will become more accepting of supplier price increases, forcing up food inflation.( especially fresh produce prices) #Supermarkets #Competitvebehaviour #Storedivestments #Oppositionsupport #uncertainty #floodofpriceincreases? #foodinflation

6

20 Comments

🛒 Supermarket Pricing Practices Under Scrutiny: What It Means for Australian Consumers Speaking on 3AW, Country Hour ABC, The World Today, 2BC. Featured on Yahoo, AAP Network The recent supermarket inquiry has revealed concerning issues in Australia's grocery sector, highlighting the financial challenges many families face when purchasing basic necessities. Key points: The ACCC has uncovered evidence suggesting major supermarkets may have been inflating prices while creating the illusion of discounts. This revelation calls for greater transparency in grocery pricing. The Supermarket Inquiry recommended that new mandatory rules for the Food and Grocery Code of Conduct be implemented. Trust between consumers and retailers is at stake, and action is necessary to protect Australian families. Concerns arise that these pricing strategies may have contributed to overall inflation. My thoughts: The ACCC's findings confirm what many consumers have long suspected about deceptive discount pricing. It's crucial that we take immediate action to protect Australian families and ensure they can access affordable groceries without fear of being misled. These practices affect individual households and may have broader economic implications. Their potential contribution to inflation is a serious concern that warrants further investigation and action. Economics @RMIT RMIT College of Business and Law #AustralianRetail #ConsumerRights #GroceryPricing #ACCC #EconomicPolicy Article source:

18

MORE MADNESS AS WE ATTACK ONLY AUSSIE-OWNED COMPANIES OK, sure the 'big two' supermarkets, Coles and Woolworths, have been playing it very hard with suppliers and aggressive in their promotions to consumers. But let's not forget that these two companies employ over 350, 000 people, are wholly-owned Australian businesses, and pay millions of dollars in dividends to everyday Aussies - mostly through their Super schemes. So as the Albanese Governments beats up on these two iconic companies, let's not even worry about Amazon, Costco, and Aldi, who are huge businesses in their own right and send all their huge profits offshore. Meanwhile so many foreign-based retailers, and resources companies simply structure their businesses to ensure their books to show very little profit being made here in Oz. How convenient. And almost no or very little tax to pay. This Federal Government needs to get its priorities right, as to ignore the truth by pressing ahead with the idea of breaking-up Coles and Woolies would, as Wesfarmers CEO Rob Scott said yesterday, "..would only lift costs and hurt competitiveness". The highly respected Scott is spot-on, and this ideologically-driven government needs to stop attacking Australian businesses on so many levels. #retail #business #exports #supermarkets #consumers #competition #manufacturing #suppliers

65

27 Comments

In the midst of a #supermarket crackdown, #German supermarket giant ALDI Stores Australia has been quizzed by the #ACCC. No big surprises. When you have smaller stores, fewer staff, and offer less choice and fewer items, you're dealing with fewer suppliers and wholesalers. Ultimately, less complexity, lower costs and greater economies of scale leads to lower prices. The ACCC will spend the next two weeks grilling the bosses of #Aldi, #IGA affiliate #Metcash, Coles Group and Woolworths Supermarkets on their pricing strategies. QUT (Queensland University of Technology) #retail

1