IR August 2017 by MGA Independent Businesses Australia

ISSUE 5 | AUGUST 2017

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

WORKING TOGETHER TO PROMOTE THE INDEPENDENT SECTOR

National Support Office

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1800 888 479

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www.mga.asn.au

NEW

OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

MGA NATIONAL

SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479

RETAILER DIRECTORS Rodney Allen (President) – Victoria Andrew Bray – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland

MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au

EDITORIAL AND PRODUCTION

E: courtenay.hirst@mga.asn.au

www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers

CONTENTS 5 CEO welcome

INDUSTRY NEWS 7 Increasing excise tax drives the price of tobacco up 9 ACCC won’t allow tobacco companies to act together 9 Senate Economics Committee inquiry – tobacco and red tape 10 Metcash Expo - The Best Store in Town 10 2017 IGA Awards of Excellence 11 Rising Star Award 2017 13 MGAQ Committee meets with Minister for Industrial Relations Hon Grace Grace MP 13 SA supermarket group, Foodland wins national award for most satisfied customers 15 Black Economy Taskforce 15 MGA’s corporate partner NAB hosts small businesses 17 Micro, Small and Medium Enterprise Day 19 Tasmanian Independent Retailers (TIR) conference 20 Information concerning rising energy costs in eastern states 21 Decreasing electricity bills at Atherton Supa IGA, QLD 22 Giving the frozen aisle a facelift

LEGAL AND HR 23 23 24 24 25 25

Sunday penalty rates Bullying in the workplace – employers obligations Internships, volunteer work and training – paid or unpaid? Overtime for casuals Casuals will be able to claim permanent status FWC gives green light for unpaid domestic violence leave

LIQUOR NEWS 27 Key VCGLR staff address MGA Liquor Committee 29 NSW Container Deposit Scheme (CDS) implementation update 29 Swift + Moore relaunches 30 The Victorian State Government has announced a funding boost for regional compliance officers

31 Treasury Wine Estates introduces Maison de Grand Esprit new French wine range 33 Indulge in the adventures of Samuel Wynn & Co 33 Annual increase to liquor license and penalties fees 35 Gin trap – how Scotland is moving with new spirits 35 High-margin beers can pay dividends as global beer landscape shifts

TRAINING 36 The negative impact from lack of training 36 Induction training 37 MGA Industry Training course guide Main cover image: Nikola Prestia – MGA with Jarrod Swaine – Ritchies Inset image: Leo Ryan, Nathan Ryan and Ben Ryan – Ryans Supa IGA www.mga.asn.au

MGA CORPORATE PARTNERS DIAMOND

British American Tobacco Australia PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS

tasmanian independent retailers

CEO REPORT

CEO WELCOME The end of a tough and challenging financial year has come and we all now embark upon a fresh and exciting start in financial year 2018. The past financial year for MGA has been one of the busiest ever and I would like to take this opportunity to thank all MGA’s staff for their dedication and commitment to you, our members. MGA’s Board of Directors have also played a significant role in guiding MGA on a very focused pathway of directing MGA’s resources toward providing essential support services for the betterment of all MGA member’s businesses. We have had a few significant wins for our members including the reduction of Sunday penalty rates from 100% to 50% and the reduction of company tax for businesses with sales up to $50m in turnover. Unfortunately our gains for members can be eroded with the ever increasing price of energy, placing unprecedented pressures on the

viability and sustainability of member’s businesses.

customer service is the number one priority.

At any one time MGA has a number of different workstreams underway whether they be for state or federal government or government agencies. Government inquiries are on the rise and include anything from competition matters, to Sunday penalty rates, to plastic bag bans, opposing trading hours liberalisation and container deposit legislation to name a few. MGA will keep members informed of all the matters we are dealing with on an ongoing and as needs basis.

Over the next month or so, MGA will be requesting financial funding assistance from members. The SDA has applied to the FWC to review the FWC decision to reduce Sunday penalty rates from 100% to 50% in the Federal Court. Coupled with this it is anticipated that the SDA will apply to the FWC to increase penalty rates on Saturdays, particularly after 6pm. This is of course unacceptable and MGA will be joining forces with other organisations and retailers to mount a strong and well-resourced case to defend the Sunday penalty rate decision and oppose any form of penalty rate increase on Saturdays. There will more information to follow on this matter.

The newly launched MGA Industry Training Course Guide 2017 has been delivered to your store by now and I encourage members to seek out courses in the guide that are “must do” compliance based courses or courses to assist with the professional development of your staff. Well trained, capable and skilled staff are vital in running a successful business, particularly when

Until next edition – good selling. Jos de Bruin CEO MGA Independent Retailers

INTRODUCING

OUR NEW

2017

COURSE GUIDE

Tobacco

Customer Service

Employment Law Seminars

Plus loads more!

Log into mga.asn.au/ma-training to access your member discounts!

www.mga.asn.au

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August 2017 - Edition 5

INDUSTRY NEWS FEDERAL

Increasing excise tax drives the price of tobacco up Subsequently, tobacco related retailer break-ins are on the increase and the availability of illicit tobacco is more prevalent and problematic In a recent A Current Affair TV program, alarming examples of retailer break-ins were featured including MGA President and owner of a supermarket in Mount Martha, Victoria. The story focused on the personal impact this criminal activity is having on the profitability and safety of retailers who are the victims of criminals targeting cigarettes. This program prompted the Herald Sun newspaper to highlight the magnitude of this issue in the newspaper the next day. Members from around Australia are at a constant risk of criminal activity associated with the stealing of tobacco products. Their sales (of a legal product) are also being compromised owing to the availability of illicit and illegal tobacco. The government and the people of Australia are the losers as they miss out on billons of dollars in excise and GST tax revenues. These foregone taxes could have been allocated to our hospitals. By way of example – between January 2016 and March 2017 tobacco related

criminal activity has flourished in Victoria. • 137 break-ins (that we know of) • Approximately one theft every three days in Victoria. • $2.795 million in damage and stock losses. • 1 in 5 robberies during store hours • 77% of robberies happened out of hours. • 22% happened during store hours. • Biggest theft was a tobacconist in Noble Park ($300,000) • Thefts concentrated in the South and Bayside areas of Melbourne • Top offending suburbs: • Cranbourne (8 robberies) • Dromana/Rosebud (7 robberies) • Mornington (4 robberies) It’s time the government did something! Thefts of cigarettes have always been an issue for the retail sector but the nature and frequency of these thefts has increased dramatically over the past twelve months. Starting with Labor in 2010 and continued by the Coalition, successive tobacco tax increases have greatly increased the price of tobacco per kilo. Since 2010 the excise on tobacco has increased by 75% and today attracts a tax of $771.60 per kilo. Another four more 12.5% tax increases are scheduled from September 2017 to 2020. By 2020 the tax on cigarettes will have increased by 125% sending the price of cigarettes over $40 a pack. Smugglers and illegal “chop chop” farmers are taking advantage of this by importing or growing illegal tobacco. Excellent work by the Australian Border Force, Federal and State police had led to a string of busts and interceptions hampering supply of illegal tobacco by criminal networks.

MGA President Rod Allen on “A Current Affair” TV program

The result has seen opportunistic thieves specifically targeting legal cigarettes being

sold in stores to then sell on the black market. These thefts involve tens and often hundreds of thousands of dollars’ worth of damage and stolen inventory. These figures do not include the human capital cost of lost staff, work cover, increased insurance premiums or lost customers. HISTORY OF EXCISE TAX INCREASES WITH MORE TO COME Year: Excise Increase: 2010 25% 2013 12.5% 2014 12.5% 2015 12.5% 2016 12.5% Total tobacco tax increase from 2010-16: 75% Year: Excise Increase: 2017 12.5% 2018 12.5% 2019 12.5% 2020 12.5% (Due 1 September) Total tobacco tax increase from 2010-20: 125% Starting September 2017 tobacco taxes on roll-your-own tobacco products will start increasing to eventually match the taxes on cigarettes by 2020. Members please make yourself aware of the many security options that may be available to your store. There is nothing worse than your store being broken into, damaged caused, staff being put at risk and you bearing the enormous cost to clean it all up and make good your store. Please note – tobacco products can now be regarded as a “currency” worth stealing. The excise on tobacco has made cigarettes more valuable than silver. On 15 May 2017 the spot-price for a kilo of silver was $719 while the excise tax on one kilo of tobacco was $771.60. Add in 10% GST to tobacco excise and the price becomes $848.76 per kilo.

www.mga.asn.au

INDUSTRY NEWS

August 2017 - Edition 5

INDUSTRY NEWS FEDERAL

ACCC won’t allow tobacco companies to act together The Australian Competition and Consumer Commission is denying authorisation to British American Tobacco, Imperial Tobacco, and Philip Morris to jointly cease supplying retailers or wholesalers they consider to be supplying illicit tobacco. Between them, these three companies supply well over 90 per cent of the market for tobacco products in Australia, including all of the major brands. MGA and a number of prominent MGA members from around Australia were extremely supportive of this initiative and voiced their support at the ACCC consultation forums as well as with the lodging of submissions. “This kind of interaction between all of the major competitors raises competition concerns, especially in such a highly

concentrated market,” ACCC Chairman Rod Sims said.

that the proposed conduct would have limited effectiveness,” said Mr Sims.

“The ACCC doesn’t consider that there would be a net public benefit in giving the three dominant tobacco companies immunity for information sharing and joint boycotts of retailers.”

“To the extent that ceasing supply is effective, these companies can already achieve much of this effect by doing this on an individual basis without any requirement for ACCC authorisation.”

The tobacco companies had submitted that the proposed conduct would reduce retail sales of illicit tobacco in Australia.

The ACCC was also concerned that these arrangements would give the tobacco companies a quasi-regulatory role, which may be inconsistent with the World Health Organization Guidelines for implementation of Australia’s obligations under international agreements about tobacco control.

They argued there would be public benefits from increasing the collection of excise from legal tobacco, reducing sales of tobacco without the required health warnings, and benefitting retailers who stock legal tobacco by reducing competition from sales of illicit products. “While any reduction in sales of illicit tobacco is welcome, the ACCC considers

Further information about the application for authorisation is available on the ACCC Authorisations register. Source ACCC June 2017

FEDERAL

Senate Economics Committee inquiry – tobacco and red tape On the 16 May 2017 MGA was invited to attend a public forum in Sydney to meet with 3 prominent Australian senators to discuss the red tape and cost burdens associated with the sale of tobacco incurred by MGA members around Australia. The inquiry panel led by Senator David Leyonhelm (NSW), included Senator Stirling Griff (SA) and Senator Dean Smith (WA). MGA raised many red tape hurdles and cost burdens with the panel including; Federal Excise tax 12.5% x 4 times next 2 years – causing tobacco to exponentially increase in price, legalising E-Vapourisers, plain

tobacco packaging causing many issues including incorrect products being served by error.

concerning discussions by some state governments to restrict distribution and times of sale for tobacco.

Retailer issues Cost of tobacco prohibits stock holdings and open to buy budgets, insurance costs sky rocketing and capped, burglaries and robberies on the increase – tobacco is now regarded as a currency.

Illicit tobacco Illicit tobacco is a big issue – “chop chop” and contraband – more needs to be done.

States Every state has different rules and regulations – dark displays, point of sale communication – inconsistent fonts, OH&S issues – safety and disgruntled customers, costs to serve – training, tobacco licensing fees – a tax collecting mechanism, and

Local Councils Local councils often engage in draconian entrapment practices infuriating members. To name but a few….. This Senate Economics Committee Inquiry will be completed in the near future. When the report is released MGA will facilitate access via www.mga.asn.au.

www.mga.asn.au

INDUSTRY NEWS

NATIONAL

Metcash Expo – The Best Store in Town Many retailers from around Australia once again congregated on the Gold Coast to attend the annual Metcash Expo held in the Gold Coast Convention Centre between the 16th and 19th of July. Many national and state grocery and equipment suppliers and service providers were given the opportunity to make face to face contact with their customers and to speak with

them about their products and business solutions. To be the “Best Store in Town” is not easy and this Expo gave retailers the opportunity to explore many new ideas for instore refurbishment, as well as see first hand a huge range of refrigeration, point of sale, fresh food, shelving, delicatessen, meat, and general equipment solutions. Other features of the Expo included; staff training, local marketing, product

knowledge opportunities, as well as taking advantage of the many networking opportunities with fellow retailers from around the country to swap experiences and knowledge. Congratulations to the organisers of the Expo. There was something there for everyone and with many retailers leaving the Expo with new ideas to assist them to grow their sales and grow their businesses.

NATIONAL

2017 IGA Awards of Exellence Australia’s leading Independent Grocers of Australia (IGA) stores were recognised at the prestigious annual IGA Awards of Excellence held on the Gold Coast on 17 July 2017. The IGA Awards of Excellence acknowledge the dedicated efforts of the stores and their teams in their local community and heralded the winning stores as the benchmark for other 1,400 independent supermarkets across the IGA retail network. The national awards were judged on a range of criteria including what the store is famous for, customer service, community contribution, department excellence, brand values, sales, profits, merchandising, shopper experience and the store’s overall performance. The awards were presented to the store teams by Steven Cain, Metcash CEO of Supermarkets and Convenience and Ian Ashcroft, Chair of the IGA National Retailer Council. Steven Cain said, “We’re extremely proud of our retailers and celebrate the hard work, commitment and excellence that stores in the IGA network have

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demonstrated throughout the year as the network transforms into being the best store in town.

NATIONAL RETAILER OF THE YEAR McLaren Vale Foodland IGA, SA – Romeo Retail Group

“Congratulations to all of our winning IGA stores who have delivered an outstanding shopping experience tailored to their customers in their awarded categories. Our network of 1,400 independent atores continue to do an incredible job in supporting their local communities across Australia.

FOODLAND IGA/SUPA IGA STORE OF THE YEAR McLaren Vale Foodland IGA, SA – Romeo Retail Group

“We are delighted to recognise their outstanding achievements, and contribution to the independent retail grocery industry and the Australian economy.”

IGA X-PRESS STORE OF THE YEAR IGA X-press West Hobart, TAS Nikitaras Family (2nd year)

IGA Awards of Excellence take place each year at a gala dinner during the Metcash Food and Grocery Expo on the Gold Coast to celebrate the success across IGA’s network of stores. Over 6,000 retailers and suppliers visit Expo from across the Metcash business to experience retailing best practice and latest products and food trends to bring to shoppers at their local IGA. Twenty-one category awards were presented. The major award winners were:

IGA STORE OF THE YEAR IGA Mt Cotton, QLD – Jones Retail Group (Leanne and Tyrone)

HALL OF FAME 2017 Roz White, Whites IGA Grocers – Sunshine Coast, QLD Outstanding retailer, community advocate and business identity. Roz White was inducted into the prestigious IGA Hall of Fame, which recognised outstanding achievements and contributions to the Australian independent retail grocery industry. IGA Community Award 2017 Whites Retail Group – Roz and Michael White

INDUSTRY NEWS

Rising Star Award 2017 Rachael Kolbrink – Hilton Supa IGA WA Other national departmental awards presented during the evening included; Delicatessen Channel 2 – Nth Buderim IGA, QLD Channel 1 – Boccaccio Supa IGA, Balwyn VIC – Tony D’Anna Meat Channel 2 – Canningvale IGA, WA – Pat Rock & Rob Halvorsen Channel 1 – Young Supa IGA, NSW – Robert Donges Bakery Channel 2 – Crookwell IGA Plus Liquor, NSW Channel 1 – Ritchies Supa IGA Mount Waverley, VIC

Fresh Produce Channel 2 – Mount Barker IGA, SA – Jo Elsom Channel 1 – Atherton Supa IGA, QLD – Michael Shakes

NATIONAL

Grocery and General Merchandise Channel 2 – IGA Vale, WA Channel 1 – Ritchies Mount Waverley, VIC Dairy and Freezer Channel 1 – Pennant Hills IGA, NSW – Karellas Family Channel 1 – Happy Valley Foodland Supa IGA, SA – Graham Rugless Service Department of year Minlaton IGA, SA – Vicki Love Retail Transformation and Innovation – Boccaccio Supa IGA, Balwyn VIC

Rachael Kolbring – Hilton Supa IGA, WA

Rising Star Award 2017 Antonio and Elizabeth Romeo accepting Mclaren Vale Foodland SA, IGA Store of The Year award

Joseph Romeo – Romeos Group

Rachael Kolbring, store manager from Hilton Supa IGA, WA took home the Rising Star Award at the 2017 IGA Awards of Excellence. She was also nominated for this award last year! Rachael has been working in retail for the last 20 years – 10 of which have been spent wokring at the Hilton store. Rachael has also completed a Diploma in Business Management.

Tyrone and Leanne Jones accepting IGA Mt Cotton, QLD IGA Store of The Year award

Amy Reiner and Greg Sheen accepting the West Hobart, TAS IGA X-press Store of The Year award on behalf of the Nikitaris Family

Roz White, Whites IGA Grocers, QLD being inducted into the Hall of Fame 2017

Store owner Gino Divitini says “Rachael is very passionate about retail – in particular, retail in supermarkets”. Rachael is a compassionate and caring individual who has a great rapport with all of the staff and sales representatives. She is incredibly proud of her store and is very innovative with ideas on how to improve the store – sometimes by even taking inspiration from going around other stores on her days off!

Tyrone Jones accepting IGA Mt Cotton, QLD IGA Store of The Year award

Well done to Rachael – an award much deserved!

www.mga.asn.au

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INDUSTRY NEWS

QUEENSLAND

MGAQ Committee meets with Minister for Industrial Relations Hon Grace Grace MP The MGAQ Committee met with the QLD Minister for Employment and Industrial Relations, the Hon Grace Grace MP, at their meeting in Brisbane on 7 June 2017. The members of the committee were interested in the Minister’s views on a number of issues including the proposed legislation to amend the Trading (Allowable Hours) Amendment Bill 2017. The Minister was very sympathetic to the needs of the independent retail sector and the effects that extended trading hours can have on regional jobs and communities. In discussions on the difficulties faced by small businesses the Minister did express how she believed the proposed changes to the law would simplify and standardise trading hours across the state. The committee was particularly concerned that any further changes to the Act may have similar effects on the independent small business sector as those experienced by retailers who were affected by the recent changes to trading hours laws in SE Queensland. It was pointed out that independent retailers

in SE QLD were doing it tough after the QIRC decision in 2016. The Minister pointed out that the decision was made by the independent umpire and it was a decision that she was unable to change. The MGAQ Committee also gave examples of how the ability to sell liquor in small stores would assist the independents to compete fairly with the chains but this issue is not part of the Minister’s portfolio. The meeting was open and transparent and the committee was pleased to discuss these issues with the Minister. The committee also had proactive discussions with three informative contributors at the meeting, on issues that affect small businesses in Queensland. In particular, the committee heard from Mr James Coutts, who is the Executive Director with the Department of Infrastructure, Local Government and Planning. He advised on a number of interesting developments in the planning area. Ms Maree Adshead, who is the QLD

Roz White, Terry Slaughter, Kate Whittle CCIQ, Peter Lee, Minister Grace Grace with Tim Shipston, Mark Meszaros, Debbie Smith, Marie Brown, Peter Piccone Small Business Champion appointed by the Minister for Small Business described her travels around QLD and her engagement with representatives of small, diverse businesses all over the state. Mr Gavin Leckenby, the Executive. Director, Skills Investment and Market Strategy, explained a number of the innovative and strategic programmes that are being developed in his department. The committee gratefully acknowledged the attendance of these interesting speakers at the meeting and their contribution to assisting small businesses to invest and grow in Queensland.

SOUTH AUSTRALIA

SA supermarket group – Foodland wins national award for most satisfied customers South Australian supermarket group – Foodland has been awarded Canstar Blue’s “most satisfied customers” award in its 2017 survey. Released on Monday 17 July, Foodland scored a perfect five star rating in customer satisfaction for store layout, product variety, food freshness, customer service and overall satisfaction, conquering its national and international rivals. The award, conducted by independent research agency Colmar Brunton, surveys over 3,000 Australians, asking how satisfied they are across a number of industries. The research asks respondents

to reflect on their interactions with all of the nation’s supermarkets in the past twelve months, rating each on eight key categories. In this time period, Foodland has grown its footprint with new stores; and refurbished a number of its existing network, keeping its focus primarily on the South Australian communities it services. The Canstar Blue award comes in the midst of fierce competition and pressures in the retail sector. Foodland Chief Executive Officer, Con Sciacca said: “Winning Canstar Blues” most satisfied customers’ award is great testament to

the hard work and passion each and every Foodland retailer puts into our stores.” “Not only are we fully committed to servicing our South Australian communities, we are ensuring we give our customers what they want. We are taking a customer centric approach in how we operate. It’s about building on our already strong Foodland brand, a South Australian icon and one of the State’s most trusted names. Awards such as this shows how important it is to meet your customers’ needs.” MGA congratulates all Foodland retailers and staff for this first class award.

www.mga.asn.au

LAUNCHING

THIS JULY!

FIZZY FLAMINGO …an all time loved combination

Kirks Surprises are quirky and intriguing flavours that excite or divide the family with healthy, aussie style debate.

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‘KIRKS’ IS A REGISTERED TRADE MARK OF THE CCA GROUP

These Aussie flavour rotations are proven to recruit new users and drive category growth with 50% of buyers new to the category! *

INDUSTRY NEWS

FEDERAL

Black Economy Taskforce Earlier this year the Federal Minister for Revenue and Financial Services, Hon Kelly O’Dwyer MP commissioned Mr Michael Andrew AO to conduct a full investigation into the black economy with a view of capturing unpaid taxes on goods or services sold for cash and not recorded. In other words, the Black Economy Taskforce has been formed to target the black economy, which is also known as the shadow economy or cash economy – businesses and individuals operating outside the tax and regulatory system. MGA and MGA members around the country were invited to attend a range of consultation meetings to discuss their views of the black “cash” economy. We thank all members for their valuable contribution to these initial consultations. In June this year the Minister for Finance, Senator the Hon Mathias Cormann publicly released the Black Economy Taskforce Interim Report. The report stated that black economy activities disproportionately affect the most vulnerable in our community. Participation in the black economy undermines the community’s trust in the tax system, creates an uneven playing field for business,

VICTORIA

fosters the exploitation of workers, and results in lost government revenue and undue welfare expenses. The Government has accepted the recommendations identified for immediate action: Extending the Taxable Payment Reporting system (TPRS) to two high-risk industries – cleaning and couriers – to ensure payments made to contractors in these sectors are reported to the ATO. Banning the manufacture, distribution, possession, use or sale of sales suppression technology. This technology allows businesses to understate their income, and has been identified as a threat to the integrity of the tax system both in Australia and internationally. Providing funding for the ATO audit and lodgement activities to better target black economy risks. The report stated that these measures will improve fairness for businesses, level the playing field and strengthen the integrity of our tax system, resulting in a net gain to the budget of $632 million. Thank you to all MGA members who participated in the Black Economy consultation forums.

NAB CEO Andrew Thorburn

MGA’s corporate partner NAB hosts small businesses NAB CEO Andrew Thorburn, together with NAB Board members and a number of senior executives recently hosted a dinner in Melbourne for a number of selected business owners and stakeholders. This provided a networking forum for NAB and small businesses, as well as, introduced an overseas special guest speaker, Professor Daniel Goleman, to talk about his book “Why Emotional Intelligence Matters”. Professor Goleman advocated that emotional intelligence skills are vital for executives and business owners to be aware of how they control, and express their emotions, and to handle interpersonal relationships judiciously and empathetically. Professor Goleman said, "emotional intelligence is the key to both personal and professional success."

2nd and 3rd from left: Gino Divitini – MGA WA Director and Pierre Sequeira – IGA Como at the WA Forum

Business owners were able to share their insights with NAB executives to assist them to obtain a deeper understanding of what challenges and opportunities small business owners face on a day to day basis.

www.mga.asn.au

INDUSTRY NEWS

August 2017 - Edition 5

INDUSTRY NEWS VICTORIA

Victorian Small Business Commissioner, Judy O’Connell

Judy O’Connell with Victorian Minister for Small Business, Hon Philip Dalidakis MLC

COSBOA CEO, Peter Strong

Micro, Small and Medium Enterprise Day International Micro, Small and Medium Enterprise Day was declared on June 27 2017. The Victorian Small Business Commissioner, Judy O’Connell, together with Victorian Minister for Small Business, Hon Philip Dalidakis MLC, decided to honour all small businesses with a special function to celebrate all small business owners and their families. They make up 97% of all businesses in VIC filling 60% of the employment market. They often make a huge sacrifice to start, develop and run a successful

business in their chosen industry sector. The event was held on the 46th floor of a prominent Collins Street building in Melbourne. Congratulations to all family enterprises and privately owned business around Australia. You are the back bone of the economy and you all deserve a great deal of praise and thanks for what you contribute to the communities in which you live and work.

www.mga.asn.au

Helping lower your cost of doing business WESTERN AUSTRALIA

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August 2017 - Edition 5

INDUSTRY NEWS TASMANIA

Tasmanian Independent Retailers (TIR) conference All too often we find we get so caught up in our day to day routines of family and business that we are too busy to take the opportunity to “step outside the business” and reassess our goals and the reasons for doing what we do. The 2017 Tasmanian Independent Retailers (TIR) Conference on 1st and 2nd June, provided a fresh opportunity over two days for more than 150 delegates to examine current and emerging challenges and to explore new possibilities to develop. Held at Launceston’s Country Club Casino, the revitalised two day conference format presented a wide array of topics from 10 presenters and included; online disruption and marketing, customer insights and illicit tobacco. Plus there were business presentations from Fonterra and CCA and a popular presentation from Fred Harrison

who shared some of his passionate tips for success. While trading in Tasmania has been solid, escalating energy costs, the continuing dominance of Coles and Woolworths and the potential impact of Aldi and Amazon threatens independent retailers. However, TIR CEO, Grant Hinchcliffe, highlighted that these challenges present new opportunities to focus on channel clarity, explore shopper engagement and to continue to improve customer perception with a strong in-store offer and competitive Price Match in line with customer expectations. The Tasmanian Awards of Excellence dinner provided the opportunity to acknowledge stores that have embraced these challenges successfully.

SUPA IGA Store of the Year SUPA IGA St Helens – Kemuel and Cassey Wood IGA Everyday Store of the Year IGA Everyday Norwood – Mark and Leanne Colson IGA X-press Store of the Year IGA X-Press West Hobart (Hill Street Grocer) – Nick, Marco and Niktar Nikitaras Sam Richardson Perpetual Award IGA Everyday Swansea (Morris) – Jim Morris The response and support from both retailers and suppliers to the renewed TIR conference format has been spectacular, with a high attendance for both days of the conference and the awards dinner. Written by Glenn Rainsford

TIR Conference

Sam Richardson Perpetual Award – Grant Hinchcliffe TIR CEO, Jim Morris, Greg Raspin TIR Board Chairman

IGA X-press Store of the Year Award – Grant Hinchcliffe, Niktar Nikitaras, Omiros Polikretis, Greg Raspin TIR Board Chairman

Traci Castle, Cassey Wood, Kemuel Wood, Julie Watkins, Grant Hinchcliffe, Greg Raspin TIR Board Chairman, Brad Goodyer and John Tatnell

IGA Everyday Store of the Year – Daniel Colson, Leonie Nichols, Christine Boucher, Vanessa Gibbons, Grant Hinchcliffe, Mark Colson, Greg Raspin TIR Board Chairman

Fred Harrison presenting at the conference

www.mga.asn.au

INDUSTRY NEWS

Information concerning rising energy costs in eastern states Energy costs have fast become the major issue of the day effecting MGA members around the country. Energy costs are now the 2nd biggest cost to do business after wages and salaries. The energy market can be very confusing to understand so, with the assistance of MGA’s Corporate energy partner Aussie NRG, we provide you with some basic information and facts for your digestion before you go off and procure “the cheapest” energy deal. This information will be split into two areas: 1. Difficulties in comparing retail electricity offers 2. The structure & content of retail electricity bills Complexities of the market & alternative rate-offer structures The difficulties found by members in comparing electricity offers often come from the different formats used by energy retailers for their retail quotations. The majority of offers will fall into one of two categories; either a stepped rates offer or a flat rates offer. • A flat rate offer comprises of a rate for each usage time (peak, off peak, shoulder in NSW) which applies for the duration of the term of the contract. These rates are locked in and not subject to change. • A stepped rates offer comprises of rates offered for each usage time (peak, off peak, shoulder), however, it differs from a flat rate offer in that the rates change year to year depending upon a variety of factors. Major factors which effect the step rate • The current spot price • The patterns in usage of the consumer • Trends in the market • Forecasts of annual market trends by retailers • Climate change (extreme weather increases which affect the demand of electricity)

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Since September/October last year and the announcement of the closure of the Hazelwood Power Station in Gippsland, Victoria, the continuing operation of the Loy Yang-powered Aluminium Smelter and a variety of other variables, the spot price, and subsequently the contractual rates offered by retailers, have increased dramatically. Why has this increased prices? Increased prices are due to the massive load demand of the Loy Yang-powered Aluminium Smelter continuing after its closure was revised, and the decreased power supply in Victoria as a result of closing one of the largest brown coal power stations in the state, Hazelwood. Victoria also supplies some of its power to South Australia and NSW, which is why these states have been affected in regard to their electricity prices.

market will restabilise to a point that they are able to counter the losses with a better rate when recontracting. This has a large element of uncertainly to it. Alternately members could choose to go with a longer contract length with rates that do not have the same loss impact per annum as the shorter offers, however are locked into those rates for a longer period and may find that in a year or two, are losing substantially more due to the market if the market restabilises to a price point well below what the business is locked into.

The increase peaked in the week prior to the official closure of Hazelwood (the end of March), which saw NSW, Victoria and other states subject to contract prices of over 20c/kWh in the retail component alone.

Thus, the client must make a decision on whether to short the market or not, which is in itself a gamble.

Since the added demand and decreased supply has been realised across the grid of Australia, the prices have slowly been restabilising in large market contracts, however the increase experienced by businesses now is still sitting above 200% for their retail component.

Price & Other Contract Terms: Solar A contract term which is becoming increasing relevant for businesses to be aware of, is the estimated load, and the flexibility of falling short or exceeding the projected contract load. Solar is becoming an increasingly more common investment for businesses, and in regard to the retail electricity agreement, there can be unforeseen costs associated with the installation of solar.

So how does this relate to comparing retail offers? When comparing different retail offers in the current market, businesses will notice that the cheaper offers in flat rates are the offers whereby the duration is longer. In stepped rates, the later years are the years which are cheaper per kWh than the earlier years. Thus, a business must make the decision to either choose a shorter contract with a far larger loss in the hopes that the

The importance of price and other contract terms

The cost common % of flexibility in estimated load within the contract terms of a retail contract is a 10% allowance for a business to go either over or under the estimated load. This is so that retailers can buy their loads in bulk knowing that the amount will be consumed by their clients. When a business installs solar in the early

INDUSTRY NEWS

stages of his retail contract, because of the impact that the power generation has on the usage, businesses run the risk of falling short of their expected usage, and the retailer withholds the right to bill the business for any remaining kWh’s that have not been used within their contract term. It is important for businesses to plan their solar installation with a degree of regard to their electricity retail contract to avoid this unexpected cost.

Why businesses have switched energy providers There are a multitude of factors as to why businesses do or do not switch their energy providers. Much of the time, the reason for switching comes down to price evaluation and the key factor of the bottom line cost – if another retailer can offer the utility of electricity at a lower price, a business will be far more likely to switch their electricity provider.

In some cases businesses may switch because they are disappointed in the customer service that they receive from their provider, or the struggle to get in touch with the relevant personnel or billing errors which have occurred. Many SME sites have been unwilling to switch if the price and rates with another provider are only marginally better. This is because they are used to the billing cycle / pattern, and are skeptical when it comes to players in the energy market.

Decreasing electricity bills at Atherton Supa IGA, QLD Atherton Supa IGA is a 2800m2 store built in 2009, located in picturesque Far North Queensland. In 2011, store owner, Mike Shakes was awarded the highest possible distinction for his store: IGA Australia International Retailer of the Year, and has since continued to receive accolades and awards every year. Mike’s focus on quality and innovation made Atherton Supa IGA the ideal candidate to trial the new ebm-papst AC AxiBlade on the store’s aircooled condensers. As a result, Atherton Supa IGA became the first supermarket in Australia and one of the first installations internationally to benefit from the latest development in fan efficiency. Located on the Atherton Tablelands, a 90-minute drive inland from Cairns, the store is perfectly located to demonstrate power saving technologies due to its size, busy trade, complete retail offer, and tropical climate.

Recommendations Because of the different running hours per fan each year, the savings vary dependent on which fan is replaced. It was recommended that at least fans 1 and 2 on each condenser are replaced with AxiBlade.

Atherton Supa IGA air condensers, pictured: ebm-papst AxiBlade Evaluating the fans The selected condenser has 6 fans in two banks which service separate refrigeration circuits. The input power to 3 fans in one bank was monitored for one week before and after the upgrade. Easy installation In less than 30 minutes per unit, the new AxiBlade fans were installed. No changes were made to the electrical components or structural design of the condensers, making the installation a simple task. Cost comparison The cost difference between a comparable, conventional AC-6 pole fan to the new AxiBlade is negligible.

Failing fans and fans with high operational loads are optimal opportunities to install new AxiBlade fans. AxiBlade

Savings per fan

% run

kW/h year

Fan 1

95%

2675 (38%)

$534.90

Fan 2

53%

2380 (43%)

$476.07

Fan 3

22%

1009 (43%)

$201.75

6064

$1,212.72

TOTAL

Next steps Contact our dedicated sales manager, Thomas Heine, to discuss what fan solution is best for your circumstances.

Phone: 0437 542 626 Email: thomas.heine@au.ebmpapst.com

www.mga.asn.au

INDUSTRY NEWS

Giving the frozen aisle a facelift It’s no secret that innovation is paramount to stay competitive in the ice cream category. That’s why it’s something that Bulla Family Dairy has always had at the heart of its business – it has allowed the company to remain a relevant and influential player in the market for over 107 years. In recent years, Bulla has cleverly looked back to classic Australian desserts, such as the lamington, coconut ice and fairy bread, and used these taste profiles to draw on the buyer’s longing to reminisce about the good ol’ days. With a hint of nostalgia and a creamy touch, the selection has been received with great enthusiasm from the Australian market.

We’re excited to announce a new partner on board! I+M continue to provide meaningful business advice – and now there are more opportunities to see us! We understand your business as we are specialists in your industry Phil Ibbotson and the team at I+M welcome David Cunningham to the business! We have looked after all sizes of retail stores all around Australia for in excess of 30 years and David has joined our team, adding to our existing skills and expertise. This puts us in a unique position to help you with all your business needs. • Does your accountant discuss benchmarking? • How do your results compare to other stores of similar size? • Do you know if your wages expense is right for your business size? • Making a profit but don’t seem to have any cash? • Business acquisitions? Sales? We regularly get clients top results in these areas We would love to have an obligation free opportunity to discuss your needs and see where we can add value to your business.

Call us to book in a time! Phil, Rami, Kanye, Walter, Amanda & David. Phone: (03) 9824 5533 www.imaccountants.com.au

August 2017 - Edition 5

“Consumers love old favourites reinvented with a twist, and Bulla has been very successful in this area. We have many more exciting product developments arriving just in time for summer,” says Bulla Dairy Foods Senior Brand Manager Lakshika Graves. One of Bulla’s successful recent launches was Custard Tart, which was unveiled in January of this year. This is made with custard tart-flavoured ice cream, dipped in a choc coating and smothered in crunchy biscuit pieces. Bulla was also the first to bring frozen yoghurt to the retail market. More recently the offer expanded in to Frozen Greek Style yoghurt & the range was met with positive feedback and was lauded at the Dairy Industry Association of Australia’s (DIAA) Awards of Excellence. So what’s next? Well, Bulla predicts that consumers will be increasingly looking to the ice cream category for indulgence. With this in mind, they will be launching Bulla Creamy Classics Frozen Custard in August this year. “Made from fresh milk, cream and egg yolks, this range is extra smooth and creamy. It aims to satisfy consumers’ desire for a more decadent choice, with classic custard, rich chocolate and toffee caramel flavours available,” Lakshika says. Not satisfied on stopping there, the family owned company will also be bringing Bulla Creamy Classics Ice Cream Sandwiches to market for summer 2017. Featuring real ice cream sandwiched between two chocolate chip cookies, these will be available in vanilla, double choc fudge and mint choc chip ice cream flavours. From August onwards, this concept will also extend to the frozen yoghurt range, with boysenberry-flavoured Frozen Greek Style sandwiches hitting the shelves.

LEGAL AND HR

LEGAL AND HR Sunday penalty rates The arguments to reduce Sunday penalties in the retail industry have been debated for years. Retailers strongly believe that the hike in wage rates on Sunday often requires them operate their businesses themselves at weekends, employ fewer staff and reduce customer service and in some cases not even open all, because having to pay double time on Sunday is financially crippling. Conversely, workers and their unions argue that Sunday is a day that should be available to be with families, it has long been recognised as a day that is outside the traditional “working week” and therefore deserves special recognition, it is normally regarded a day for relaxation and enjoying sport. Therefore, because Sunday is a “special day” it deserves recognition as such and anyone who works on that day deserves to be paid an additional amount of money for giving up the pleasures that everyone else enjoys.

The Fair Work Commission considered the extensive arguments put before them by senior lawyers and in their final decision they quoted from a report of the Productivity Commission that stated,”consumer expectations of access to services has expanded over time so that the cost of penalty rates affect consumer amenity in ways they did not when penalty rates were first introduced. Such industries are also important sources of entry level jobs for, among others relatively unskilled casual employees and young people (particularly students) needing flexible working arrangements.” If the reduction of penalty rates means more jobs and gives those who simply want to work on Sunday a higher note, even if only 50% higher as will be the case eventually, it still puts these workers ahead and provides greater opportunities to employ more people.

The decision given by the Fair Work Commission was made by an independent umpire, one that was created by the governing political party in 2009 and agreed to by the Opposition politicians at the time. Then why, after such a protracted hearing of all the arguments can’t we accept the decision that was obviously not made lightly? If the decision had been otherwise employers would have felt equally disgruntled. But this decision provides benefits for employers and employees. There will be more work available, there will be greater consumer satisfaction and there will still be penalty rates for work on Sunday. If the outcome of the review of the this decision in the Federal Court is to uphold the finding of the Fair Work Commission then ultimately there will be winners on both sides but a finding for the union argument will take us back decades.

Bullying in the workplace – employers obligations Workplace bullying is repeated and unreasonable behaviour directed toward an employee or a group of employees that creates a risk to their health and safety. Employees who are exposed to bullying may incur physical or psychological injury. Employees may also be entitled to lodge an application for an order to stop workplace bullying with the Fair Work Commission (FWC). The application is dealt with by the FWC through mediation, conference or a formal hearing to determine a decision and/or an order to stop the workplace bullying. All employers have a legal obligation

to exercise a duty of care under occupational health and safety law and to provide and maintain a working environment that is safe and without risks to an employee’s health. Additionally, employers need to be proactive to reduce the risks to the employees’ health and safety caused by workplace bullying. This can be achieved by implementing preventative measures to address inappropriate workplace behaviour and deal effectively with complaints. Preventative measures include all employees being provided with training and information of how to prevent and respond to workplace bullying as well as

having an investigation process in place to manage allegations of workplace bullying. Employees must be aware of how to recognise bullying behaviour, be encouraged to report workplace bullying and the consequences involved for not complying with bullying procedures in place. If an employer allows bullying conduct to arise and continue in the workplace then an employer is not meeting their legal obligations. It is important that employers use effective measures to deal with bullying, act on any complaints quickly and ensure the organisation has a strong and effective complaint resolution procedure.

www.mga.asn.au

LEGAL AND HR

Internships, volunteer work and training – paid or unpaid? There is often confusion about whether those undertaking “internships”, “volunteer work” and training should be paid for their time. According to the General Retail Industry Award 2010 and most enterprise agreements, employees must be paid for all time spent undertaking required training, including online training, even when the employee is new to the job. The law around offering work experience, internship and volunteering is also clear. Employers cannot simply choose to label an employee as an “intern” or “volunteer” in order to avoid paying their staff according to their lawful entitlements. Employers can legitimately offer work experience placements or internships to students if the placement is required as

August 2017 - Edition 5

Overtime for casuals

part of an approved education or training course. Employers engaging interns who are not undertaking an approved education or training course must take care to ensure that their interns do not perform productive work in an employee-like way. An intern who performs productive work that benefits the employer will likely be an employee and entitled to wages and other employment related benefits. Unpaid interns should only be engaged to watch, learn and gain experience relevant to their industry or profession. The benefit of the internship should favour the intern, not the employer.

The Fair Work Commission in its review of the modern awards has decided that casual employees should be entitled to overtime rates. Where a casual employee is employed in excess of 38 hours then a casual will receive an overtime payment.

There are hefty penalties that can be imposed on employers who incorrectly label employees as interns or volunteers in addition to orders that the employee be back paid their correct entitlements.

The General Retail Industry Award will be varied in due course to provide for this variation and members will be advised.

When working outside the span of hours for each day overtime will be payable. For example if an employee opens the store before 7.00 am or starts work before 7.00 am overtime must be paid.

LEGAL AND HR

Casuals will be able to claim permanent status The Fair Work Commission (FWC) has been considering union and employer argument as to whether casuals should be allowed to claim permanency where they have worked on a regular and systematic basis for a period of time in a retail shop. This issue has been considered as part of the four year review of the General Retail Industry Award and other awards over the last two years. In July, the FWC handed down its long awaited decision and decided that approximately 2.5 million casual employees in the retail industry should be granted the right to claim permanent status in certain circumstances. The right to become permanent has always been an issue for retailers and employees. Some employees are just not interested in permanent employment. They enjoy the additional 25% penalty they are paid, because in many cases working in a retail outlet is seen as an interim job and it suits many employees, especially students. However, conversely there are many employees who see their position in a retail store as a career

path, and therefore being able to obtain permanency after a period of casual employment is an attractive proposition. How do retailers see this proposed transition? There are mixed reactions to the decision. Some retailers are unphased by the decision, they say that they will lose flexibility in some cases but they will arrange rosters to suit the business and they will learn to adapt to the new system that has been imposed on them. Others are less philosophical about the change. They fear they will definitely lose flexibility and the right to be able to reduce hours if they need to. So how will it work? Many employees have been working in the same position, with the same roster for years. They tend to arrange to take a break from work in much the same way that permanent employees take holidays but they don’t get paid and they don’t receive the leave loading that the permanent employees receive. Some casuals see themselves as a permanent part of the organisation even though in

some cases they have held the same casual status for years. Many such employees even provide sick certificates if they are absent, mainly because they regard themselves as part of the permanent staff, having been in the store for years. The employee will have to be offered the option to become permanent if they have worked on a regular and systematic basis for a period of twelve months in a shop, which they may accept or reject. If they accept then they will be able to continue in that position as a permanent part time or full time employee. An employer can refuse a conversion to permanent status if it would require a significant adjustment to the employees hours of work to provide for permanent status or if the employer genuinely believes the position will not be available within the next 12 months. The FWC is yet to hand down the specific details of when this change will become effective and there will be further information available to members as these details become known.

FWC gives green light for unpaid domestic violence leave Last month the Fair Work Commission (FWC) refused the union’s application for ten days of paid family and domestic violence leave to be inserted into modern awards, including the General Retail Industry Award 2010, but advised that it had formed a preliminary view that employees should have access to unpaid domestic violence leave. In addition, the FWC stated that employees should also be able to access personal/ carer’s leave if they experience family or domestic violence. Domestic violence leave is used for victims to get their affairs in order after an

incident. For instance, victims may need time to attend court or police stations, flee abusive homes or family members, or set themselves up in a new safe location. The reasoning for the FWC’s position is that family and domestic violence was a "significant community issue" that needed a "workplace response". It also said "such unpaid leave serves to confirm the significance of family and domestic violence leave as a workplace right and provides an employment protection in circumstances where there is a need to access such leave". The FWC has stressed that the decision is

only preliminary and more issues will need to be finalised before the reforms become law. The FWC will hold further hearings in due course and give all interested parties the opportunity to make submissions or call evidence on the FWC’s preliminary view.

www.mga.asn.au

GPK Retail

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LIQUOR NEWS

VICTORIA

LIQUOR NEWS Key VCGLR staff address MGA Liquor Committee At the June MGA Liquor Committee meeting hosted by Lion, the VCGLR Director Research & Engagement – Nitsa Karahalois along with the Director Compliance – Stephen Berryman, Acting Manager Regulatory Strategy – Brendan Atkinson and Manager Education Programs – Veronica Goluza presented to the committee their department’s key focus for 2017/18. Some of the key topics covered in Compliance Division were; risk-based compliance activity, minors and secondary supply, working with industry to identify risks, Responsible Service of Alcohol (RSA) and staff training and working with co-regulators such as Victoria Police and joint operations. The overall message from the presenters is that the VCGLR through its relative departments want to engage, work, educate and communicate with industry so that they have a clear understanding of their obligations as a holder of a packaged liquor licence.

Additional to requirements under the Act, the code requires all packaged liquor premises to: • Have ‘House Rules’ that all staff are trained in and aware of their obligations. • Have all staff trained in Responsible Service of Alcohol within ONE month of employment. • Where possible, hold surveillance recordings for at least two weeks, and make these available to Victoria Police and Compliance Inspectors upon request. • The code also covers signage obligations, minors on premises, and sales vis internet, fax or email. All members are advised to keep their Liquor House Rules manual up to date and along with staff members constantly review it. Should you require an updated version it can be downloaded from the MGA web site or a hard copy can be ordered by contacting the national support office on 1300 888 479.

All Victorian Packaged Liquor Licence holders are required to comply with the “Code of Conduct” and the code forms part of a licensee’s legal requirements under the Liquor Control Reform 1988 Act and are a condition of the licence. The purpose of the code is to reinforce the aim of the Act to minimise harm from the abuse and misuse of alcohol, contribute to the further development of licenced premises and to facilitate the development of licensed facilities in keeping with community expectations. N

T O R A NGE

Fruit is sourced from carefully selected parcels of Shiraz and Grenache grown on the red volcanic soils of Northern Heathcote. Rich, ripe flavours of dark fruits, olive spice and wild herbs with a plump, soft finish.

Back Row Left: Stephen Berryman, Brendan Atkinson, Gary Woodgate, Front Row Left: Chris Christofi, Nitsa Karahalios, Angelo Giannetta, Tony Bongiovanni, Veronica Goluza and Alex Giannetta

CONTACT YOUR DE BORTOLI REPRESENTATIVE FOR MORE DETAILS

www.mga.asn.au

LIQUOR NEWS

August 2017 - Edition 5

LIQUOR NEWS

NSW Container Deposit Scheme (CDS) implementation update Following requests made by environment groups and industry bodies the Minister for the Environment Gabrelle Upton granted a five month extension for the implementation of the Container Deposit Scheme in NSW. At the time of printing, the government had yet to appoint a Scheme Coordinator (1) or Network Operators (9-11), which according to industry sources makes the revised roll out date of 1 December 2017 less likely.

Government envisages the Scheme Coordinator invoicing beverage suppliers a month in advance, which means that any pass-through to retailers will also likely happen one month in advance, effectively increasing the cost of all beverage containers between 150ml and 3 litres in volume by a minimum of $2.40 (per case of 24) + handling fee (which will be determined once the Scheme Coordinator is appointed) + GST.

MGA has been in contact with both the Ministers Office and the NSW EPA requesting an update on the implementation timing of the CDS and were advised that the 1st of December 2017 is still the targeted roll out date. Whatever the implementation date is,

Excluded products are; • Plain milk (or milk substitute) containers • Flavoured milk containers 1 litre or more • Pure fruit or vegetable juice containers 1 litre or more • Glass containers for wine or spirits

•

• • •

After eight months of retirement, Michael McShane has announced that he will be relaunching the iconic beverage distribution and marketing business Swift + Moore next month.

MGA will endeavour to keep you constantly informed as more information comes through by e-Alerts and on our website. Should you have any queries regarding the CDS please contact us on 1800 888 479 or admin@mga.asn.au.

@IBWINE #IBWINE

Swift + Moore relaunches

Casks (plastic bladders in boxes) for wine and for cask water – 1 litre or more Sachets for wine 250ml or more Containers for cordials, concentrated fruit/vegetable juices Registered health tonics

T: 1800 032 248

McShane announced that he was stepping down a year ago as SVP, Managing Director of BrownMichael McShane Forman Australia, New Zealand and Southeast Asia, and was replaced by Marc Satterthwaite in October 2016 as Managing Director of Brown-Forman Australia, New Zealand and Pacific Islands. The Swift + Moore brand dates back to the late 1800s, but hasn’t traded in the local market since 2007 after the business was acquired by Brown-Forman. McShane explained that “Despite a constantly evolving industry, Swift + Moore is always remembered with great fondness as a people-focused business that developed many of the great brands we see today”. McShane will take on the role of CEO of the new relaunched beverage distribution company.

NOW DISTRIBUTED BY BROWN BROTHERS

www.mga.asn.au

LIQUOR NEWS

The Victorian State Government has announced a funding boost for regional compliance officers The government is giving the Victorian Commission for Gambling and Liquor Regulation (VCGLR) an extra $11.3 million to fund a permanent regional presence with extra compliance officers for liquor

and gaming venues in regional VIC. Minister for Gaming and Liquor Regulation, Marlene Kairouz, made the announcement today while meeting with members of the VCGLR, the Greater Bendigo Council and Victoria Police. “The Andrews Labor Government supports a thriving liquor and gambling industry, but strong regulation is needed to minimise harm to the community,” stated Kairouz.

Minister for Gaming and Liquor Regulation – Marlene Kairouz

“With this funding we are reinstating regional inspectors to ensure all businesses do the right thing.” The government stated that the extra

inspectors were needed to deal with “high levels of alcohol misuse” and problem gambling in rural areas. Currently two locations for these regional hubs are being finalised, where compliance officers can travel from. The officers are expected to establish relationships with licensees, police and local councils to minimise harm, and to ensure that venues are compliant. VCGLR CEO, Catherine Myers, stated that with the extra funds, regional venues can expect more regular visits from compliance officers. “This funding boost means there will be more inspections, more often and in more venues across the entire state.”

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August 2017 - Edition 5

LIQUOR NEWS

Treasury Wine Estates introduces Maison de Grand Esprit new French wine range Treasury Wine Estates (TWE) have introduced its latest brand offering, Maison de Grand Esprit, a unique French wine portfolio that combines old world winemaking techniques with a new world sourcing model, challenging conventions of the French wine category. Unveiled at a VIP trade preview event in Paris on 16 June, Maison de Grand Esprit breaks the mould of traditional French houses that focus on a single sub-region and are anchored to a physical location. Instead the new brand, which translates to ‘House of Great Minds’, showcases the very best of France’s regions – Bordeaux, Burgundy, Rhone and Provence – all under one brand. Wines are sourced from a selection of France’s premier vineyards and grapegrowers, with all wines made and bottled at wineries in France. The introduction of Maison de Grand Esprit represents a significant step forward

for TWE with the addition of a French brand to its existing portfolio of wines from diverse countries of origin including Australia, New Zealand, the USA and Italy. As signaled at TWE’s Investor Day briefing in March this year, the new French portfolio will include three tiers of luxury wines, initially to be sold across North Asia to capture growth opportunities in this rapidly expanding market, with other markets to follow in F18. According to TWE Chief Executive Officer, Michael Clarke, the flexible sourcing model and new world marketing approach behind Maison de Grand Esprit will deliver greater accessibility of premium wine from France to Asian consumers. “French wine is one of the most sought after country-of-origin wines across North Asia, as consumers see this category as a benchmark for quality. We have created Maison de Grand Esprit as a brand built

from multiple regions within the one country, but importantly, the wine is produced to a consistent quality standard, as opposed to various regional winemaking standards. This is similar to the approach we take for Penfolds, and in doing so we are making the French category easier to understand and more accessible to Asian consumers,” Clarke said. With a strategy to bring simplicity to the French wine category, Chief Marketing Officer, Simon Marton added that the injection of modern wine marketing principles and consumer led thinking was central to the creation of this brand. “Maison de Grand Esprit is re-writing convention by fusing heritage with simplicity and modernity, to reinvigorate the consumer experience with French wine. We are confident this brand approach will not only appeal to current drinkers of French wine, but also the next generation of wine drinkers,” Marton said.

www.mga.asn.au

NEW 32

LIQUOR NEWS

A WINE BORN OF EXPLORATION

Please contact your local TWE representative for more information. August 2017 - Edition 5

LIQUOR NEWS

Indulge in the adventures of Samuel Wynn & Co Samuel Wynn & Co is the purveyor of wines from across Australia and around the world; inspired by the adventurous spirit and early career of wine industry legend Samuel Wynn. Migrating to Australia in search of a free life, Samuel Wynn arrived in 1913 with nothing more than he could carry and a fearless spark. This new wine collection is testament to a life of daring that would eventually find this journeyman emblazoned in wine history. Two varietals are available now to order from Treasury Wine Estates (TWE) in fruit forward styles – ‘The Man From Nowhere’ Shiraz 2016, and ‘The Last Rites’ Cabernet Sauvignon 2016. TWE’s Managing Director for Australia and New Zealand, Angus McPherson, said that Samuel Wynn & Co offers retailers the opportunity to capture the attention of consumers, particularly millennials, who are not necessarily loyal to the wine category, in new and engaging ways. “Samuel Wynn & Co wines are born from the adventurous spirit of winemaking legend Samuel Wynn. He left his homeland after being conscripted, travelled to the other side of the world on a whim, and faced a number of challenges and triumphs. With each wine linked to a unique story, Samuel Wynn & Co takes consumers on a journey that extends beyond traditional wine territory.”

To drive shelf stand out, Samuel Wynn & Co bottles have an unusual, angular shape similar to that of a whisky bottle. Both Cabernet and Shiraz are leading red wine varietals in Australia, and they are both in growth – Shiraz is our number one red varietal, growing by 10%, while Cabernet has grown 8% in the past year by value . The launch of Samuel Wynn & Co in Australia is being supported by strong marketing investment across outdoor, in-store, social, and digital channels; with an exciting consumer promotion planned for later this year. Samuel Wynn & Co builds on the success of other recent innovative launches by TWE, including 19 Crimes Cabernet Sauvignon, which was the top performing NPD in the wine category in 2016, 19 Crimes Red Blend, which reached number two and St Huberts The Stag Shiraz, which came in at number five. Contact your local TWE representative on 134 893 for more information about Samuel Wynn & Co.

VICTORIA

Annual increase to liquor license and penalties fees The annual increase to liquor fees and penalties has come into effect from July 2017. The increase is a result of indexation under the Monetary Units Act 2004 with fee and penalty unit increases determined for each financial year. New fee and penalty amounts The values for a fee unit and a penalty unit have been approved for the 201718 financial year and are as follows: • the value of a fee unit rose from $13.94 to $14.22 • the value of a penalty unit rose from $155.46 to $158.57. What does the increase mean? The increase to application fees and penalties/infringements for noncompliance occur immediately from 1 July 2017. All submissions after this date will be required to pay the increased amount. Packaged liquor license fees will increase to $1,934.10 and authorised non-standard hours fee will increase to $5,802.30. Renewal liquor licence fee increases will take effect when payable by 31 December 2017. For further information contact the MGA national support office on free call 1800 88 479.

www.samuelwynn.com

www.mga.asn.au

LIQUOR NEWS

Mountain Goat started out as Daveâ&#x20AC;&#x2122;s weekend homebrew project in a suburban Melbourne backyard when a postcard turned up from his mate Cam who was backpacking overseas. Cam had just discovered good beer in Vancouver and decided Melbourne needed good beer too. This was back in 1997. So Cam and Dave had a great idea but no money to build a brewery. They were knocked back from every bank they approached but

Drink Responsibly.

August 2017 - Edition 5

luckily, with a little help from friends and family, they prevailed and Mountain Goat was soon tapped at a few local pubs. Today, almost 19 years later, Mountain Goat is now found nationally and the brewery and bar still operates in the back streets of Richmond, with a lineup of old favourites on tap and constantly changing limited releases and barrel aged beers.

From Steam Ale, one of Australiaâ&#x20AC;&#x2122;s first organic beers, to the refreshing Summer Ale and Pale Ale, through to the complex malt characters in Hightail Ale and Fancy Pants, there is a Mountain Goat beer for everyone. To place an order for Mountain Goat please contact your Asahi Premium Beverages representative or call our customer service team on 1800 090 378.

goatbeer.com.au

LIQUOR NEWS

Around the World Gin trap – how Scotland is moving with new spirits Popular lore has it that the older a distilled spirit, the finer and costlier it will be. But growing numbers of upstart young drinks-makers who are bringing gin back into fashion aim to disprove this. Moreover, they are challenging the mighty Scotch whisky industry. In a converted Perthshire farm building, Tony Reeman-Clark, whose career began in brewing before shifting to civil engineering and IT, started a small gin distillery in 2013. Its success means he is now contemplating doubling its capacity to 280,000 bottles a year; he has also moved into whisky production.

His is one of more than 60 such distilleries to have started in Britain since 2011. Unlike whisky, which must be stored for at least three years, gin can be sold almost as soon as it is made. Although it requires juniper berries, it can also be infused with many herbs to produce a range of tastes and colours, adding to its craft-made appeal. Mr Reeman-Clark’s sales jumped after television featured one of his pale brown gins that turns pink when tonic water is added. Like most newcomers, his drink sells at roughly twice the price of big-brand gin. It seeks to cash in on the fad among “millennials” for traceable craft-made

products, rather than big-name stuff. The Wine and Spirit Trade Association reckons this is why, although the volume of gin sales in Britain is up only 6% since 2012, their value has risen by 18%. Now Mr Reeman-Clark and others plan some novel whiskies. His three-year-old whiskies are being matured in casks made of wood other than the prescribed oak. He says: “I was told ‘You can’t do that.’ Yes, I can, I just won’t call it Scotch whisky.” He claims a lot of Scotch has become bland, produced in vast computer-controlled distilleries supervised by bored process technicians.

High-margin beers can pay dividends as global beer landscape shifts A recent report by Rabobank states that global brewers must target super-premium's plump margins as growth in the drinking age population slows. Beer consumption has mainly been boosted in the past decade by younger consumers moving into the legal-age bracket, Rabobank said today. However, that 2% per year increase is forecast to decline to just 1% over the next ten years, leading to new pressures on international brewers.

the past 15 years have seen the super-premium segment more than double its share of the market in terms of value to 13.5% are expected to continue.

"The focus needs to be on enhancing the product, not just pushing volumes," Francois Sonneville, senior beverage industry analyst at Rabobank, said.

Sonneville added: "While we expect consumption to continue to slow over the coming years, there will still be opportunities for brewers to thrive, though a change of tack is needed. Consumer experience will be key. Brewers must be ready to adapt to the new landscape."

The report suggests brewers tap into higher-margin beers to increase profits as consumption declines. It said that in the US, a super-premium craft beer costs 80% more than a mainstream beer, and is around twice as profitable per unit. Trends that over

Consumption declines have already made themselves felt in the global market. Beer consumption fell 1.8% last year, compared with average drop of 0.6% since 2013, Rabobank said, citing IWSR figures.

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TRAINING

TRAINING The negative impact from lack of training

Induction training

Your employees can contribute to the success of your business when they are trained to perform their jobs according to benchmark business and industry standards. Training can consist of online courses or face to face classroom setting during induction and ongoing training. Unfortunately some businesses consider training as an unnecessary expense and expect new employees to learn on the job from supervisors and more experienced employees. However, this type of training can create problems due to not training an employee in all facets of use of equipment or supplies.

Do you provide adequate training when an employee commences work with your business?

The workplace health and safety regulators say that inadequate trained workers, or even those that do not receive any training, are more susceptible to injuries. This happens when workers lack the knowledge and skills required to use equipment and supplies safely. The problem could be fatal in work environments that contain dangerous machinery and hazardous materials. A business that provides inadequate training for its staff can expect an increase in miscellaneous expenses. These expenses could include the cost of medical attention for staff because of injuries sustained from unskilled use of equipment and supplies, compensation to customers for defective products, and the cost of defending the business against lawsuits. Productivity will be low when employees don’t know enough to perform their jobs confidently. Unskilled employees could spend considerable time seeking help to perform their jobs or they could perform tasks to their understanding, to the detriment of the work process. This could lead to errors and injury. Supervisors and more experienced employees must also spend time monitoring unskilled workers, which detracts from their work and increases the amount of time necessary to complete production. When there is a lack of training, employees do not understand what their roles are and how to perform the tasks either correctly or safely. This may lead to low morale among employees, which can result in high staff turnover. Untrained employees will lack adequate knowledge and skills to provide satisfactory customer service. If this is the case the business will experience a decline in sales as the customer chooses to go to your competitors who can provide the appropriate service and quality products.

Visit: www.mga.asn.au/ma-training to see our range of courses available. Remember to log-in for your member discounts!

August 2017 - Edition 5

No matter if you employ casuals, part time or full time employees they should all receive adequate training they are all entitled to the correct training to ensure the health and safety of everyone. When you have a new employee some of the areas that need to be covered are: • Show them how to use the equipment and supplies they will be working with • Provide and demonstrate how to safely wear/use any safety gear • Help the employee to know the layout of the workplace including emergency exits, toilets, staff area, etc. • Introduce a new employee to their immediate supervisor, health and safety representative and work colleagues • Train health and safety procedures to perform their job so no harm comes to themselves or others • Explain OHS policies and procedures – including where to find forms, first aid and emergency evacuation procedures • Explain the roles and responsibilities for safety in the workplace. You should also record all training that an employee receives, this includes the induction training, equipment use and any other training that is involved in the function of the employees’ role in the workplace.

2017

COURSE GUIDE

Practical.

Supportive.

Interactive. 1800 888 479 www.mga.asn.au

MGA Industry Training course guide MGA Independent Retailers is here to make your life easier! We are thrilled to announce that the training department has developed a course guide with new courses that are in line with the day to day running of your business. Training is crucial for organisational development and success, it is beneficial to both employers and employees. An employee will become more efficient and productive if he/she is trained well. Some of the benefits are improved

morale, less accidents, less supervision required and increased productivity.

the employee satisfaction and retain their job.

Training is particularly important to new employees. When a business invests in the training and development of their employees it tends to generally give

Look out for your copy of the 2017 course guide. If you would like any more copies please contact the training department on 1800 888 476 option 2.

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TRAINING

NATIONAL ONLINE COURSES MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members. *Log in to our website with your member login to order your courses at these member prices. Call us on 1800 888 479 if you need your log in details.

Manage Training System (MTS) Manage Training System (MTS) is an easy to use training program – set up training per department, allocate courses to staff, monitor results and have complete training records for all staff. Either use included HR policies or upload your own including staff rosters!

Employment law seminars Essential for store owners, department managers and human resource managers. Be informed, save time and costs by attending an interactive session on employment law. Areas Covered • Your legal rights and obligations as an employer • Knowing how to deal with employment issues • Managing a legally compliant workplace

BRISBANE

Date: Thursday 10th August, 2017 Time: 9.30am – 4.30pm Members price: $250 or two for $350

August 2017 - Edition 5

TRAINING

Online & face to face training MGA Industry Training offers discounted training for all members. Courses are online or can be conducted face to face at your business for 10 or more employees! Responsible Service of Alcohol, Food Safety, Employment Law, Customer Service, plus more!!!

Tobacco training This course covers information on the legal obligations for the sale and service of tobacco, non-tobacco smoking products, smoking accessories, e-cigarettes and e-cigarette accessories in each respective state/ territory. Training ensures your staff comply with Tobacco Retailing Laws â&#x20AC;&#x201C; protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Donâ&#x20AC;&#x2122;t forget to log in for your member discounts! Visit www.mga.asn.au to see our range of training courses!

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Don’t just renew…

“Adroit provide ideas for preventative measures and procedures so we focus on what we are best at. I have confidence in them!” Jean Cowley. Owner – IGA St Leonards & Barwon Heads.

...review & get the right protection for you. We know you don’t want to spend your time worrying about insurance, but would your current insurance be enough to see you through?

Access your member discounts and

SAVE!

Let your insurance industry experts take care of everything for you. Call your local Broker today and rest easy knowing you’re in good hands.

We’ve worked with MGA to develop a tailored insurance solution to meet the specific needs of their members.

Contact your local broker on 1300 402 756 for a FREE INSURANCE REVIEW or go to www.adroitig.com.au/mga