Independent Retailer - May 2018

ISSUE 3 | MAY 2018

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

INDEPENDENTS INVESTING FOR A BETTER FUTURE National Support Office

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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

CONTENTS 5 CEO welcome

INDUSTRY NEWS 7 Electricity pricing killing our members’ businesses 8 Gutted by fire two years ago – Ritchies Beechworth is back!

10 ACCC welcomes new deputy chair

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

10 Farewell to ACCC Deputy Chairman, Doctor Michael Schaper

RETAILER DIRECTORS

13 Better food for a better world

Rodney Allen (President) – Victoria Graeme Gough – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Carmel Goldsmith – New South Wales 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

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10 Meeting with Deputy Prime Minister and Minister for Veterans Affairs 11 Australian newsagents celebrate as government acts to outlaw “dodgy” lottery betting sites

12 Deregulation of WA trading hours will kill small businesses 13 COSBOA Board meeting in Canberra 14 South Australia; “The home of the independent retailer” 16 Plastic bag bans imminent in QLD and WA 16 ACCC enforcement priorities for 2018 17 2018 Scams Awareness Week 18 MGA’s 2018 GALA Industry Golf Day 21 Reduce your merchant fee costs 23 New food labelling laws 25 “Australia at Work” campaign

LEGAL AND HR 26 Union right of entry laws 26 The demise of casual employment?

29 Decisions from the Fair Work Commission

LIQUOR NEWS 31 Check IDs to avoid selling alcohol to minors – it’s that easy!

31 Regional hub launches in Ararat 33 Urban Hub opens its seventh Melbourne store 34 ACT Container Deposit Scheme details announced 35 DrinkWise to strengthen responsible drinking campaigns 35 Accolade purchased for 1 billion dollars

TRAINING 37 What is the difference between use-by and best-before dates?

37 Implementing a strong food safety culture

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MGA CORPORATE PARTNERS DIAMOND

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tasmanian independent retailers

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CEO REPORT

CEO WELCOME Constant changes affecting the way we do business in the family enterprise and private business sector is the norm. Intense competition, an inflexible workplace relations environment, sky rocketing costs to do business are factors challenging MGA’s members on a daily basis. As business owners we strive for business certainty and confidence to enable our business to grow.

MGA’s Board, together with members around Australia have identified increasing electricity prices as the number ONE issue affecting the sustainability and viability of their businesses.

Each state is different in terms of how renewable targets are considered and how power is generated and who owns the network of poles and wires. MGA has been working closely with the ACCC, who are doing a thorough investigation of the National Electricity Market (NEM), which unfortunately excludes WA. Their task is to gauge the effectiveness of competition at all levels of the electricity supply chain to drive electricity prices down. The ACCC’s report will be completed in June for presentation to Treasurer Scott Morrison to act upon. The good news is that the wholesale price of electricity, although still very high, has dropped significantly since 12 months ago. See the article on page 7.

Country of Origin labelling (CoOL) is finally upon us after 2 years of consultation and negotiation and will become effective from 1 July 2018 and will be adjudicated by the ACCC. Unfortunately this law will cause some major changes for MGA members in various departments of the supermarket including; fresh produce, delicatessen, meat and bakery, where all labelling done in store must show the products’ country of origin.

Changes to electronic scales, new labels, new shelf tickets and the labour cost to implement, etc will come at a significant cost to MGA members.

MGA has worked closely with the ACCC to produce a tailormade Country of Origin Labelling information tool kit that will

assist members with directions and guidelines to be compliant with the CoOL laws. See article on page 23.

Big business is doing its best to continue its dominance of retail and seeking to further crowd out MGA members by advocating to deregulate trading hours in WA and SA. In SA, we have a new Liberal government that says it acts in the best interests of small businesses but unfortunately wants to completely deregulate trading hours. This plays straight into the hands of the 2 big chains. In WA, the media continues to be pummelled

by Wesfarmers and Woolworths who want to further deregulate trading hours. This would cause significant commercial damage to MGA members in WA with no further growth in sales. Sales would quite simply be supplanted from the independents to the chains, causing significant job losses within the independent retail sector and not a single extra job created in the chains!

Labor government Minister for Industrial Relations Hon Bill Johnston has promised MGA and members at a recent industry event that there will be no further changes to trading hours in WA in this term of the WA state government.

Finally, MGA has developed a robust suite of industry training solutions. Online and face to face compliance training, such as Food Safety and Responsible Service of Alcohol, as well as professional development training and safe work instructions training. MGA members can avail themselves to MGA’s “Manage Training System” which is a very simple and inexpensive online tool that enables members to monitor all staff training at any given time. We encourage members to explore MGA’s 2018 Training Course Guide that was released in the previous edition of MGA’s Independent Retailer magazine.

Until next time – good selling.

Jos de Bruin CEO MGA Independent Retailers

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INDUSTRY NEWS NATIONAL

Electricity pricing killing our members’ businesses MGA has been very active in engaging with state and federal governments to seek ways to assist members to reduce the heavy cost burden of increasing and extremely high electricity prices all over Australia. MGA has also made a significant contribution to the ACCC “Increase in Electricity Pricing” inquiry, thanks to many members sharing their personal electricity consumption and costs information with MGA. The report is focussed upon the competitive workability of the electricity market and whether there needs to be additional steps taken to increase competition to help drive electricity prices down.

The final ACCC report is due to be submitted to Treasurer Scott Morrison in June.

The ACCC reports that last year, 2017, was the most horrific year for extremely high wholesale and retail electricity prices.

Electricity costs to members and consumers have been steadily rising for 10 years but 2017 was the year “the straw broke the camel’s back” as they say.

As members will know through the media, there are many reasons for the extremely high costs of electricity. On the east coast, there was a “perfect storm” combination of the closing down of vital coal powered base load electricity generators in SA (Northern Power Station) and Victoria (Hazelwood), together with an over ambitious renewable energy plan in some states that could simply not keep up with the energy demands of a growing population. Each state government has varying degrees of control and ownership of power generation. In Queensland the government owns and operates the electricity power generation together with the network (poles and cables) which has resulted in the cheapest wholesale prices in the country.

On the other hand, South Australia, which chose to rely upon renewable energy sources has had the highest unsustainable energy costs. On the west coast the WA government owns the electricity power generation and then on sells the electricity to retailers. Unfortunately, for our members in WA the chains seem to be able to avail themselves electricity for a reported 25% less than MGA’s members. All apparently associated with the volume of electricity being purchased. So, the WA government is allowing large multi national businesses, the 2 chains, to purchase electricity at a significant discount at the cost of the survival and viability of WA family enterprises and private businesses.

So many variables from state to state and so many opportunities in each state for MGA to assist members to reduce their electricity costs.

Wholesale prices of electricity Wholesale prices of electricity were at their peak around the country in 2017. They varied from state to state depending upon a number of circumstances including government ownership of electricity power generation, ownership of the network (poles and cables), renewable energy targets in each state (SA) and competition amongst electricity retailers. In 2017 many members electricity contracts came up for renewal. This was literally a “shock” to the system. Owing to the high price of electricity, some electricity retailers encouraged 3-year contracts with the price of electricity decreasing in each of the second and third years. Electricity retailers “hedge” or purchase your electricity consumption needs 2 years ahead to avail themselves to the best prices available and to lock them in on your behalf. Many members chose to do a year to year contract.

WHOLESALE ELECTRICITY PRICE RANGE – EASTERN STATES Year

Lowest

Highest

2017

$90 / megawatt (9c per kw)

$145 / Megawatt (14.5c per kw)

Queensland

South Australia

$59 / megawatt (5.9c per kw)

$75 / Megawatt (7.5c per kw)

Queensland

Tasmania

2019 Forecast

$65 / megawatt (6.5c per kw)

$95 / Megawatt (9.5c per kw)

2020 Forecast

$62 / megawatt (6.2c per kw)

$86 / Megawatt (8.6c per kw)

2018

Significant decrease

Source ACCC The ACCC, in its discussions with MGA, has advised that members who are able to lock in an electricity contract now with electricity retailers that it would be advantageous considering the fall in wholesale electricity prices.

For any further advice or access to contestable electricity pricing MGA encourages members to contact MGA’s corporate member and supporter, Aussie NRG on 1300 440 224. Managing Director Max Haas is only too happy to advise members of the best course to take to help reduce electricity and energy costs into your business.

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INDUSTRY NEWS VICTORIA

Gutted by fire two years ago – Ritchies Beechworth is back!

It was 16 January 2016 when Ritchies Chief Executive Officer, Fred Harrison received the message “there was a fire in the Beechworth store”. As terrible as the phone call was, nothing could have prepared Fred or the Ritchies team for the total devastation and the complete ruin that awaited their visit.

blaze about 7:30pm on the Saturday to find the supermarket well alight.

Crews managed to stop the fire from damaging adjacent buildings but could not save the supermarket.

Fred Harrison donated $2,500 to both the Beechworth CFA and a neighbouring rural fire brigade, who called the 2016 event the worst internal fire they’d attended.

The fire had completely destroyed the building and the entire contents of Fire truck that survived the 2016 fire Beechworth’s only supermarket – with only one item surviving the fire – ironically, a children’s ride on A 15 year old girl was later charged with criminal damage over fire truck which was located at the front of the store. the blaze.

The Country Fire Authority (CFA) said crews arrived at the

Ritchies was the only supermarket in town and as such, the

Ritchies CEO, Fred Harrison, building owners Jim and Patricia McCormack and Ritchies CFO Mal Cameron

May 2018 – Edition 3

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INDUSTRY NEWS

town rallied to find a temporary building to house the supermarket until the new store was built. The local plumbing store was generously offered by Mick and Jo Westra as a pop-up supermarket.

From then on, the laborious task of rebuilding the new supermarket began. There was an insurance claim to sort through, then there was planning, design and council permits to work through, plus landlord negotiations to be had. At the launch of the rebuilt store, Fred gave special mention to Jason Daniels of Adroit Insurance for the support and guidance through the claims procedure, Ian Williamson from The Retail Group (TRG) and to the building owners Jim and Patricia McCormack for their attitude and commitment to the rebuild.

Ritchies CEO, Fred Harrison with architect Ian Williamson from TRG

Fast forward to 11 April 2018, as Jim McCormack along with wife Patricia pointed out it was 816 days or 2 years, 2 months and 26 days later they would be on hand with Fred Harrison and many of the Ritchies support crew to officially open the state-of-the-art Ritchies IGA supermarket.

Over 150 excited locals gathered at the new IGA as the completely rebuilt and refurbished supermarket reopened its doors.

Fred said a highlight of the new supermarket is the latest in refrigeration technology, while a bakery and dry age meat butchery are also welcome additions to delight customers.

Fred was also proud to announce that although the refrigeration increased in size by 60 percent, there would be 55 percent less energy emission than the previous store.

Councillor Larry Goldsworthy, along with new store manager Cheryl Taylor, cut the ribbon to officially open the store in front of many excited locals, Ritchies support crew, local staff, the ‘tradies’ who completed the work, press from the local papers and news outlets.

Just before leaving the store one of the customers was heard remarking to another “isn’t it great, we have our supermarket back!” Such is the standing of many local independent supermarkets, they become part of the community and the town takes ownership of them.

Ritchies CFO Mal Cameron with the $2500 donation to Beechworth CFA The following service providers are all supporters of MGA through the corporate partnership program and are all very proud of their involvement and support in working for Ritchies on this massive project.

TRG Architect and Project Manager

Adroit Insurance

Ritchies have certainly opened a new store the community of Beechworth can be proud of for many years to come.

Well done to Fred and the team at Ritchies.

GPK I.T and Communications

Arneg Refrigeration

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INDUSTRY NEWS

NATIONAL

ACCC welcomes new deputy chair On 19 April ACCC Chairman Rod Sims welcomed the announcement by the Treasurer Scott Morrison that current ACCC Commissioner Mick Keogh has been appointed Deputy Chairman of the ACCC from the end of May for a period of five years. Mr Keogh will oversee the ACCC’s small business work in addition to his current role leading our agriculture work.

“Mick’s vast experience working with small businesses in the agriculture sector will greatly assist him in his new role working with small business right across the economy. I look forward to working closely with Mick as Deputy Chair,” Mr Sims said.

Farewell to ACCC Deputy Chairman, Doctor Michael Schaper After 10 years as ACCC Deputy Chairman and head of ACCC Small Business Engagement and terrific friend of MGA, Doctor Michael Schaper has decided to not renew his contract for a third term.

Michael has been instrumental in raising the profile of family enterprises and Doctor Michael Schaper private businesses not only within the ACCC but throughout all government agencies. Michael has led the charge that all small businesses are “people” and should therefore be protected the very same as consumers under Australian Consumer Law and in unfair competition matters.

Michael was also instrumental in assisting MGA, MGA’s members and all industry stakeholders, together with many other small business industry organisations in achieving the strengthening of section 46 in the Competiton and Consumer ACT – misuse of market power – with the addition of the “Effects Test”. This legislation was passed through the parliament in November 2017 after 13 years of strong advocacy.

I think I speak on behalf of our entire industry when I say that Michael Schaper has been a dedicated crusader and advocate for all family owned businesses in Australia.

Michael has been a guest speaker at MGA events on may occasion in the past 10 years of his ACCC tenure as Deputy Chair, for which we sincerely thank him.

We wish Michael terrific success for the future.

This announcement comes as the ACCC prepares to farewell Deputy Chair Dr Michael Schaper on May 30.

“Michael Schaper has made an outstanding contribution to the ACCC as Deputy Chair over the past decade. Michael has been an invaluable advocate for small businesses and franchises throughout his service, and his passion, tenacity and advocacy will be greatly missed,” Mr Sims said.

Meeting with Deputy Prime Minister and Minister for Veterans Affairs On 17 April, MGA met with Deputy Prime Minister Michael McCormack (former Small Business Minister) and Minister for Veterans Affairs, Darren Chester (former Infrastructure Minister), together with a small number of industry association heads and prominent private business owners.

“Michael has been an essential and effective conduit between the ACCC and a large number of business organisations across Australia.”

Deputy Chair Keogh will commence his term on 30 May 2018, becoming full-time, and will work alongside Deputy Chair Delia Rickard.

May 2018 – Edition 3

Acting Prime Minister Michael McCormack, former Nationals Minister Peter Nixon (80’s) and Minister Darren Chester

Both Ministers are very strong advocates for family enterprises and private businesses. Many policy matters were discussed to assist with the development of National Party policies including; the electricity cost pricing crisis and what can be done to reduce tariffs, growth of small business confidence and certainty, instant asset write off for small businesses be extended to medium sized business, company tax cuts be extended to big business, reduction of personal income tax (more money flowing through the economy) and excise being charged once a year not twice. Immigration and infrastructure matters were also discussed with a strong recommendation that immigration in take should be linked to infrastructure availability.

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INDUSTRY NEWS NATIONAL

Australian newsagents celebrate as government acts to outlaw “dodgy” lottery betting sites Many MGA members have lotto and keno retailing kiosks in their stores to service their local customers.

The Australian Lotteries and Newsagents Association (ALNA), with whom MGA has a very close working relationship, has recently had a very big win with the federal parliament, with the federal Minister for Communications set to introduce legislation into parliament to outlaw betting on the results of lotto and keno draws.

The Australian Lottery and Newsagents Association (ALNA) has long campaigned against loopholes in the nation’s gambling rules that have allowed overseas providers, including Gibraltar-based company Lottoland, to take bets from Australian punters on the results of lotteries from around the world.

ALNA has said that “dodgy structures” of these types of platforms have caused huge damage to local businesses by diverting money to overseas providers, when that money could have otherwise been spent on regulated Australian lotteries.

While ALNA says it will be difficult to put an overall dollar value on the benefits of the legislation, Kearney says both small businesses and the community will benefit because outlawing this kind of betting will stop overseas businesses from diverting revenue offshore.

“If you consider that 25c in every dollar of every official lottery ticket sold across Australia is paid in state lottery taxes, and that amounts to well over a $1 billion dollars annually to the community, you can see the impact it will have to not have synthetic lotteries cannibalising regulated lottery draws,” he says.

MGA will keep members informed of any further progress being made in this area.

W L O B N ILA A AV E

ALNA head of policy and government relations Ben Kearney stated recently that while local newsagents are “performing well” across the country, the fact that overseas betting agencies could offer these products, has been deeply unfair to local businesses, who are strictly regulated in their selling of lotto products.

approaching them to ask for tickets in “Lottoland” and other draws, which shows customers themselves don’t understand that these products are not actual regulated lotteries, but rather wagering on the outcomes of draws.

“These small businesses are tightly bound to regulation through state lottery acts, state lottery licences, and through their franchise agreements. As such, they have no levers to pull to respond to an online betting contingency that freely seeks to mimic state pool lotteries, yet doesn’t operate on a level playing field,” Kearney says.

The federal government said yesterday it had “listened carefully to a range of groups” about the issue and reached the conclusion that regulated lotteries form an important income stream for small businesses, whereas platforms that allow wagering on “synthetic lotteries” don’t produce benefits to Australia or contribute to its tax base.

As a result, Minister for Communications Mitch Fifield has recently introduced an amendment to the Interactive Gambling Act, which will outlaw wagering on the outcomes of all lotto and keno games.

For more information contact your De Bortoli representative or visit debortoli.com.au

Kearney says local newsagents have long had customers

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INDUSTRY NEWS

WESTERN AUSTRALIA

Deregulation of WA trading hours will kill small businesses Any further deregulation of trading hours in Western Australia will seriously impact the viability of small businesses throughout the state. The calls for deregulation of trading hours might suit the growth of the 2 giant chains but family enterprises and private businesses will inevitably suffer heavy financial losses if this happened in WA.

Mr. de Bruin continued, “We have seen this happen in so many towns and cities all over Australia. The chains get their way and what was once a thriving, tight-knit community, just ceases to exist. High streets become ghost towns.

Jos de Bruin, the CEO of MGA said, “We are fully aware of the struggle faced by independent retailers to keep their heads above water, as they fight to combat the might of the chains.

MGA strongly supports its 491 WA members in opposing the deregulation of trading hours.”

Businesses that have been established for decades just disappear and it’s not just the supermarkets. It’s the butchers, the bakers and the chemists. It’s also the professionals who were once supported by small businesses, and the surrounding farms that supply local commodities, they suffer too, because Coles and Woolworths have their support in the big cities and they buy in massive quantities.”

“We have seen Coles and Woolworths gradually expand their power by building more and bigger stores, which in the end just crowd out the little guys to the point of annihilation, all in their own self-interest. Currently small retailers are able to trade at times that gives them a small trading advantage and that helps them to survive, but if those times disappear – then so will they! “

Mr de Bruin concluded we need the community to know that there won’t be more jobs, as we are led to believe, there won’t be more competition because there won’t be anyone to compete with and there won’t be any Australian local produce because so much will all be imported. We need to stop big business bullying the WA people in regard to trading hours deregulation.”

May 2018 – Edition 3

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INDUSTRY NEWS NATIONAL

Better food for a better world Never before has the independent grocery sector endured such challenging times. With the majors beginning to realise that a full-scale price war is a race to the bottom, Aldi stealing valuable market share and the imminent arrival of Kaufland, a perfect storm is brewing in the Australian grocery trade.

Despite the obvious price challenges, a unique opportunity presents itself for independents to leverage their inherent agility and set themselves apart from the grocery behemoths by working closely with supplier partners to deliver real value to shoppers.

One brand doing just that is JC’s Quality Foods, located in Knoxfield at the foothills of the Dandenong Ranges on Melbourne’s outskirts. Founded in 1994, JC’s remains true to the business’ foundations of supporting independent retailers.

JC’s has always done things differently and challenged the status quo – JC’s was the first to package and distribute dried fruit and nuts exclusively to independent retailers nationally.

JC’s commitment to supply independent supermarkets and greengrocers with unique products that complement what they do has been an important part of their evolution into fresh food retailers.

JC’s founder, Joe Cannatelli, remains at the forefront of the business. Born into a family who have been fruit merchants for generations, Joe has the fruit and nut business in his blood, giving him a firsthand understanding of the needs of the independent retailer.

You will never see JC’s in major supermarket chains as they remain true to their humble beginnings and will always continue to support independent retailers in their quest to bring healthy and unique foods to the Australian grocery market.

Now approaching its 25th year, JC’s are committed to sourcing only the finest ingredients and will always provide Australian products where commercially viable, and where not, only the best the world has to offer.

JC’s are constantly on the lookout for new ways to do things and developing new products to bring to market.

Call JC’s today to see how they can grow your business and work with a team of industry experts dedicated to supporting independent retailers.

COSBOA Board meeting in Canberra MGA is a Director of the Council of Small Business Organisations Australia. The COSBOA Board met in Canberra on the 28th March in Parliament House.

Many matters were raised concerning small businesses including; the upcoming budget to be announced on the 9th May, the implementation of single touch payroll from 1st July, the working groups MGA is a member of with the Australian Small Business and Family Enterprise Ombudsman – Human Capital, Workplace Relations; Energy, Unfair Contracts and Access to Justice.

Also discussed were other initiatives and matters of concern such as the instant asset write off, relief for energy costs, reduction in personal income tax and company tax for big business, illicit tobacco, collection of excise tax, the conduct of unions demonising employers and the COSBO Small Business Summit to be held in Sydney on 30 and 31 August 2018.

COSBOA Board with Jos de Bruin

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INDUSTRY NEWS

SOUTH AUSTRALIA

South Australia; “The home of the independent retailer” – Drakes Foodland, Wayville The newly built Drakes Foodland supermarket in the Adelaide suburb of Wayville, managed by Steve Laratro, is simply stunning. This 1500 square metre store, employing over 100 staff, is superbly presented within a well thought out, very modern, edgy and industrial style retail envelope. This store is filled with excellent shopping experiences any consumer could wish for. Coupled with outstanding customer service credentials and a breathtaking range of fresh produce, delicatessen, bakery, meat and cheese products this store has lifted supermarket shopping to a new level.

Additional features of the store include a “Little Kitchen” with hot and cold ready to eat take home meal solutions, including hot stews, a Nonna’s homemade Italian pasta bar incorporating every style of

homemade pasta you can think of, a large self-service salad and cold meat selection available from a central salad bar, a special gourmet food section, a fresh popcorn cart, a peanut butter making facility and the pièce de résistance, is the fresh juice bar which incorporates two self-serve taps of fresh Kombucha.

Kombucha is a variety of fermented, lightly effervescent sweetened black or green tea drinks, commonly intended as functional beverages for their supposed health benefits. Kombucha is produced by fermenting tea using a “symbiotic culture of bacteria and yeast”.

This store has modern concrete floors and LED lighting and boasts an incredible selection of the newest energy efficient equipment from which to range products

including; 58 fridge doors of dairy products, 40 doors of frozen products, 25 metres of delicatessen, kitchen and prepared meals, 40 metres of coffin freezers with gourmet foods and a huge range of local and imported cheeses.

There are 18 metres of dairy case for a huge range of fresh meat, 22 metres of upright dairy cases for fresh vegies, as well as 4 huge display bins to display fruit and vegetables. Cakes, cupcakes, sweets, desserts and a wide variety of bakery items are all beautifully displayed from modern shelving near the produce area.

Customer service is enhanced with four full service lanes as well with four express checkouts.

Congratulations to the Drakes Foodland team – this store is amazing!

x

May 2018 – Edition 3

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INDUSTRY NEWS

Store Manager Steve Laratro

www.mga.asn.au

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INDUSTRY NEWS

QUEENLAND /

NATIONAL

WESTERN AUSTRALIA

Plastic bag bans imminent in QLD and WA Queensland The MGAQ committee has been working closely with the Queensland Government and the Department for the Environment to enable the smooth rolling out of single use, lightweight plastic shopping bag bans scheduled to take place from 1 July 2018.

Queensland members please note that all retailers will no longer be able to provide lightweight single use shopping bags that are 36 microns or less in thickness for customers.

MGA encourages all members to continue to offer and encourage the use of alternative enviro bags or multi use bags as an alternative service. Members may choose to either charge a small fee for these bags or in some areas might even choose to not offer a bag at all.

Members please note those businesses which do not comply with the new laws from 1 July face hefty fines of over $6,000 per offence, not to mention disruptions to their business and upsetting customers.

Western Australia MGA has recently met with the WA Minister for the Environment Stephen Dawson and has been given a commitment that MGA will be a part of the consultation committee to enable the smooth implementation for the banning of single use plastic bags in WA as of the 1 July 2018.

The ban will coincide with Queensland’s, and will bring WA in line with South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory which already have plastic bag bans in place.

May 2018 – Edition 3

ACCC enforcement priorities for 2018 In his first public address for the year, ACCC Chairman Rod Sims announced the ACCC's Enforcement and Compliance Policy for 2018 at the Committee for Economic Development of Australia (CEDA) conference which was held on 20 February 2018.

In addition to higher penalties, the ACCC identified the following areas as priorities in 2018: • Competition – the new misuse of market power, concerted practices & cartels; • Consumer – unfair contract terms in small business contracts, avoidance or misrepresentation of consumer guarantee rights, compliance with industry codes including the Franchising Code of Conduct; • Market studies; and • Industry priorities – agriculture, commercial construction, motor vehicles, financial services, consumer data and digital platforms, energy, broadband services.

of market power” practices by any large corporation so MGA may immediately involve the ACCC to further investigate.

Concerted Practices Given the uncertainty around how the concerted practices laws will operate, it is no surprise that the ACCC is keen to test this provision in 2018. Arguably the most significant of the Harper reforms, the concerted practices provision was designed to capture cartel-like conduct that falls short of the level of mutual commitment needed to establish an "arrangement or understanding".

Agriculture In addition to the ACCC's continuing inquiries in the dairy, beef and cattle industries, 2018 will turn to enforcing the recently revised horticulture code and unfair contract terms. We expect that the ACCC's online tool for reporting agricultural issues that was introduced in 2017 will invite greater scrutiny of the agricultural industry in 2018.

Mr Sims commenced his CEDA address by reflecting on 2017 as a "landmark year in competition law and policy". The Harper amendments that came into effect in November 2017 bring significant changes to many competition laws. Mr Sims indicated that the new misuse of market power and concerted practices provisions will be key enforcement priorities for the ACCC in 2018.

Energy The ACCC is conducting inquiries into retail electricity pricing and gas, both of which have a strong focus on affordability.

With the information gathered from the two inquiries, due in 2018 and 2020 respectively, the ACCC will no doubt focus on making recommendations that will improve energy affordability across the nation.

Misuse of Market Power The amended misuse of market power provision removes the requirement for companies to 'take advantage' of their market power and introduces an 'effects test' meaning that companies may fall foul of the provisions regardless of what the purpose of the conduct is. From 2018, companies with a significant market position will need to give consideration to the likely effect of their conduct on competition before the conduct is engaged in.

MGA members are encouraged to immediately report to MGA any “misuse

MGA has participated in the ACCC Increase in Electricity Pricing Review with the full report being submitted with the Treasurer Scott Morrison in June 2018.

ACCC Chairman Rod Sims made mention of many more matters of concern that would be an ACCC focus in 2018.

MGA is a member of the ACCC Small Business and Franchise Advisory Council and looks forward to working with the ACCC on behalf of members to seek out solutions for any concerns of a anti competition nature.

INDUSTRY NEWS

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NATIONAL

2018 Scams Awareness Week MONDAY 21 – FRIDAY 25 MAY 2018 Scams Awareness Week (21 – 25 May 2018) is an initiative of the Scams Awareness Network, a group of Australian and New Zealand government agencies with responsibility for consumer protection and policing in scams, cyber safety and fraud.

Members are urged to be on the lookout for threat-based impersonation scams by taking a moment to ‘stop and check: is this for real?’

The ACCC’s Scamwatch received almost 33,000 reports of these scams in 2017 – in these scams, scammers pretend to be from a government agency or wellknown company. Their aim is to scare you into parting with your money or personal information and if you don’t, they threaten you with fines, disconnecting your internet, taking you to court, arrest or even deportation.

How these scams work • Some scammers claim to be from government departments or trusted, well-known businesses and use threats to pressure or scare you into giving them money or your personal information.

• These threats are commonly received over the phone.

• The typical threats scammers use include that you will receive a fine, you will be charged additional fees, your internet will be disconnected, the police or debt collectors will be sent to your home or even that you will be taken to court, arrested or deported.

• Scammers also pretend to be from trusted businesses and organisations, including energy or telecommunications providers, Australia Post, banks and law

•

enforcement agencies like the police.

They may call and ask for remote access to your computer to fix a problem or they may email you fake invoices or fines, and threaten to cancel your service or charge you excessive penalty fees if you don’t pay them immediately.

If the scammer sends an email, it is likely to include an attachment or a link where you can download proof of the ‘bill’, ‘fine’ or ‘missed delivery details’ but opening the attachment or downloading the file could infect your computer with malware.

Tips to help protect yourself • When dealing with uninvited contacts from government agencies or trusted businesses – whether over the phone, by email, mail, in person or through social media – always consider the possibility that it may be a scam.

• If you’re unsure whether a call or email is genuine, verify the identity of the contact through an independent source, such as a phone book or online search, then get in touch with them to ask if they contacted you. Don’t use the contact details provided by the caller or in the message they sent to you.

• Don’t be pressured by a threatening caller. Hang up then check whether their story is real.

• Don’t respond to threatening emails or voicemail messages asking for you to call someone back. If you do, the scammers may increase their intimidation and attempts to get your money.

• If you’re still unsure, speak to a trusted friend or family member about what has happened.

• Never send money or give your bank account details, credit card details or

•

•

•

other personal information to anyone you don’t know or trust, and never by email or over the phone.

A government agency or trusted business will never ask you to pay by unusual methods such as with gift or store cards, iTunes cards, wire transfers or bitcoin.

Don’t open suspicious texts, pop-up windows or emails and don’t click on links or open attachments – just delete them.

Never give anyone remote access to your computer if they’ve contacted you out of the blue – whether through a phone call, pop up window or email – and even if they claim to be from a well-known company like Telstra.

Have you been scammed?

If you’ve lost money or given personal information to a scammer, there are steps you can take straight away to limit the damage and protect yourself from further loss.

• If you’ve sent money or shared your banking or credit card details, contact your financial institution immediately.

They may be able to stop or reverse a transaction, or close your account.

• If you’ve given your personal information to a scammer, visit IDCARE, Australia and New Zealand’s not-for-profit national identity and cyber support service. IDCARE can work with you to develop a specific response plan to your situation and support you through the process.

• As scammers are often based overseas, it is extremely difficult for government agencies to track them down or for law enforcement to take action against them. So take the time to warn your friends and family about these scams.

For more information about scams, where to get help if you’ve been scammed or to report a scam, visit the Scamwatch website www.scamwatch.gov.au.

www.mga.asn.au

18

INDUSTRY NEWS

VICTORIA

MGA’s 2018 GALA Industry Golf Day MGA’s hardworking GALA Committee organised another excellent industry golf day. This extremely popular event was held on Thursday 15th of March at the Keysborough Golf Club (KGC). Darren, the local golf pro, along with all the KGC staff could not do enough to help make this event a success. Weather-wise the conditions were excellent and the winning scores reflected that.

The format of the day was changed from previous years with a 10am teeoff replacing the traditional 12 noon start, the day still began with a hearty feed of various gourmet sausages and hamburgers supplied by Slape and Sons and cooked by Roy and his team of helpers from the Lions Club. There was also a large range of beverages supplied by our supporters, in particular Lion who supplied Furphy for on course and Boags Premium lager for the meal after golf.

After a welcome by Steve Sellars, on behalf of MGA and the GALA Committee, a

briefing by the golf pro and a lesson on the scoring app, all players commenced at the same time. This year there was no need for an am and pm tee-off, the feedback to the change in time and format was very well received, before and after the event.

All players had a great day of golf, networking and socialising which is what this day is all about. There were great prizes this year – including the opportunity to win $50,000 of Gold Bullion or a Ritchies Gift card to the same value (sponsored by Ritchies), with a hole in one on hole 3! Unfortunately nobody managed to snap this up!

After golf and some socialising in the members bar all guests moved into the dining room where once again proceedings of the day changed from the traditional sit down meal to an excellent buffet. The KGC staff prepared both the course and the meals to an excellent standard – as always.

Darren Watson, Tim Heath and Brad Slater from FoodWorks

Metcash team

Tony Ingpen, John Gay, Todd Hunte and Jean Cowley May 2018 – Edition 3

The briefing

The final change to the format was to have a comedian as the keynote speaker as opposed to a sporting personality and Dave O’Neill, had everyone laughing and enjoying his at times risqué but certainly not ‘blue’ humour.

MGA would like to thank all the sponsors of the day and event who made their food and beverage products available on the course itself, as well as, during the presentation dinner. Most of the golf awards and raffle prizes were also donated by our very generous industry suppliers and sponsors.

Whilst the main purpose of this day is to bring all our industry together for a day of fun and networking, we also like to make a community contribution, by donating all the proceeds to the Reach Foundation – which is making a big difference to the vulnerable youth in our community.

Thank you to all who participated and helped to make this such a terrific day!

19

INDUSTRY NEWS

Winners – Lion Group: Gross Score 63, Handicap 9.875, Net 53.125 – Congratulations to Aaron Scalzo, Rob Mantel, Dean Matthews and Anthony Palmer – Jean Allat (middle) presenting the award

2nd place – Premium Beverages: Gross Score 64, Handicap 9.50, Net 54.500 – Congratulations to Allan O’Connell, Liam Ganely, Theo Kyrlacopoulos and Jonathon Rayson-Hill – Jean Allat (middle) presenting the award

ALM team

MGA team

3rd Place – Brown-Forman Gross Score 66, Handicap 9.375, Net 56.625 – Congratulations to Nick Hawking, Julian Haines, Toby Middleton and Darren Schmidt

Premium Beverages

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CRE Brokers team

Dane O’Neill – Comedian www.mga.asn.au

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INDUSTRY NEWS

21

NATIONAL

Reduce your merchant fee costs MGA has been advocating strongly for “Least Cost Routing” to be made available by the banks to MGA members.

With the significant increase in the consumer embracing contactless and tap and go credit cards, members’ interchange fees have increased dramatically over the past 4 years or so. MGA has consulted widely with the Reserve Bank of Australia (RBA) and the RBA strongly encourages MGA members to contact their banks immediately to request “least cost routing”. If this is not forthcoming for some months, then the advice is to shop around the other banks.

Please note that banks will not ask their customers if they want “least cost routing”, however, they will respond upon your request. MGA members need to be aware that an eftpos transaction is just 40% of the total cost of transacting a credit card.

Here are some questions and answers regarding “least cost routing.”

What is least cost routing and why is it being offered?

The objective of least cost routing is to enable MGA members to choose the network that provides the best economic outcome for them on contactless transactions from dual network debit cards.

Least cost routing has not always been a choice made available for MGA members.

In November 2017, the RBA’s Payments System Board said it “strongly supported calls from a range of stakeholders for acquirers (banks) to provide merchants (retailers) with least-cost routing functionality for contactless transactions using dual-network debit cards.”

How many dual network debit cards are there in the Australian market?

There are around 26 million contactless enabled dual network debit cards in the market, featuring both eftpos and an international scheme (Visa or MasterCard), representing around 70 per cent of debit cards in Australia.

Will least cost routing affect credit card payments?

No. Currently least cost routing is only being developed for dual network debit cards in Australia.

What percentage of card payments are made on debit cards in Australia?

Debit cards represent almost 70% of all transactions in Australia, or around 6 billion transactions a year and growing quickly.

What is the potential saving for merchants (MGA members)?

Potential savings will vary from merchant (retailer) to merchant (retailer). According to the RBA in December 2017, “debit transactions via the international schemes (Visa or MasterCard), typically cost merchants (retailers) about 44 basis points more than transactions via the domestic eftpos system in 2016/17”.

Does least cost routing stop consumers using another network if they prefer?

No. Consumers can still dock or swipe their card and select their preferred network if they wish.

Which network will transactions be routed to?

This depends on the merchant’s (retailer’s) choice. According to the RBA, eftpos has the lowest published interchange rates for multi network debit cards on most transaction types.

Will the customer experience be different?

No, the customer experience should be the same. The customer simply taps a card to make transactions under $100 as they do today. If it is a transaction over $100 they will be prompted to enter a PIN as they are today. Cardholders should contact their bank if they notice a discrepancy.

Will consumers lose rewards if debit transactions are routed to eftpos? eftpos regularly offers all eftpos cardholders the chance to win rewards for eligible transactions via the eftpos

WIN platform. These rewards are not available to consumers who pay using the international schemes (Visa or MasterCard). Most debit cards in the Australian market don’t offer loyalty rewards. Those that do, usually involve a small number of specific merchants who can choose not to route and maintain those programs if they wish.

Will transactions be less secure if they are routed through the eftpos network?

No. eftpos has the lowest card fraud rates in the country. While disputed transactions and fraud rates are low on the eftpos network, eftpos members monitor fraud activity.

Are chargebacks available through eftpos?

Yes. Chargeback rights exist for eftpos transactions and cover the full range of losses required by the ePayments Code, like fraud, unauthorised transactions, goods not received and equipment malfunction or processing errors.

It is worth noting that more than 80% of fraud is online, not in store. eftpos is not yet a choice for online payments. Routing is only relevant for in store, dual network debit card payments.

Will least cost routing experience technical difficulties?

Least cost routing has already been introduced in other countries and technical issues have been overcome.

Pilots have also been run in Australia with no discernible difference in technical or payment outcomes.

Shouldn’t consumers have the choice about where their transactions are routed?

They will. Consumers will still be able to choose by docking or swiping their card.

Consumers currently have no choice about where their contactless transactions on dual network debit cards are routed – they go to the international card schemes (Visa or MasterCard), unless consumers dock or swipe their card. According to RBA, the international schemes are more expensive for merchants (retailers) for most transactions.

www.mga.asn.au

INDUSTRY NEWS

23

NATIONAL

New food labelling laws: In effect from 1 July 2018 In Australia, if you sell food at the retail level, your products must be labelled according to the Country of Origin Food Labelling Information Standard 2016 (Standard) by 1 July 2018. The new country of origin labelling requirements are designed to help consumers make informed decisions about the foods they buy.

Under the Standard, the new ‘standard mark’ labels must be used for ‘priority’ foods that are grown, produced or made in Australia (and for priority foods that are packed in Australia).

All foods are priority foods, with the exception of foods that fall within one of the following categories: • Seasonings • Confectionery • Biscuits and snack food • Bottled water • Soft drinks • Sports drinks • Tea • Coffee • Alcoholic drinks To comply with the standard, labels on ‘priority’ foods must clearly show the percentage of Australian-grown or produced ingredients in the food product.

The labels must also state whether the

food was ‘grown’, ‘produced’, ‘made’ or ‘packed’ in Australia and include the kangaroo logo (note that the kangaroo logo cannot be used for food packed in Australia or for food grown, produced or made in other countries).

A number of resources are available on the MGA website (www.mga.asn. au/c-o-o-l), and the ACCC website (www. accc.gov.au) to help you understand the new requirements. There is also an online tool available to help you create the new labels for your products (www. originlabeltool.business.gov.au).

Any products you labelled on or before 30 June 2018 that comply with the country of origin labelling requirements under the Food Standards Code can see out their shelf-life and don’t require relabelling. However, foods labelled from 1 July 2018 must follow the new rules under the Standard.

•

•

•

• Tips • A food may only carry a ‘Grown in Australia’ or ‘Produced in Australia’ standard mark label if it contains exclusively Australian ingredients.

• Unpackaged fruit and vegetables (including nuts, spices, herbs, fungi, legumes and seeds), unpackaged fish and certain meats must be labelled

in accordance with the Standard.

However, these foods don’t need to be individually labelled with country of origin information. It will be sufficient if the appropriate country of origin label is displayed close to the product e.g. on a shelf talker, hanging sign or display card.

Fresh fruit and vegetables in transparent packaging (e.g. plastic wrap, netting or citrus bags) can have their country of origin labels on the package or displayed close to the product.

Make sure you keep adequate records to back-up the claims you make about the origin of your products. You are required to keep records supporting a country of origin claim for 12 months after the sale of a packaged food item.

Your product suppliers are required to provide you with origin information if you request it from them.

Packaged foods that are suitable for retail sale without any further processing, packaging or labelling should have country of origin labels attached when they are supplied to you.

For more information on the new Country of Origin ood Laeblling laws, please visit our website: www.mga.asn.au/c-o-o-l

www.mga.asn.au

GPK Retail

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LAMB

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INDUSTRY NEWS

25

NATIONAL

“Australia at Work” campaign On 26 March 2018, in the Great Hall of Parliament House Canberra, Prime Minister Malcolm Turnbull launched a significant business initiative themed the “Australia at Work” campaign.

MGA, together with COSBOA Directors attended the launch with the BCA and their members, 100 CEOs from the top 100 companies.

The purpose of the campaign is to demystify the union movements employer bashing, inferring that employers are “ripping off” their employees. Rather than a constructive and bipartisan approach to grow the Australian economy together with employers, the unions seem to show a complete lack of respect for employers and foster a distrust within the community.

Employers are the very people who put

their livelihoods on the line every day to create employment in Australia.

I wonder how many people know that small, medium and large businesses; • Employ 10 million of the 12 million Australians who work – 5 out of every 6 jobs • Contribute about 80 per cent of Australia’s final economic output • Pay over $71 billion a year in company tax (unions are very powerful and wealthy organisations that pay NO tax) • Almost 6 million everyday Australians own shares in Australian companies Businesses are the backbone of a thriving country. They innovate, export and support vibrant local communities.

But who is business? It’s the worker on

the check-out who relies on their pay packet from the Prime Minister employer in town Malcom Turnbull – the supermarket, liquor store or timber and hardware store.

It’s the small business owner who supplies the snacks to one of the airlines. It’s the teenager who has their first job at the local fast-food outlet, and the farmers who provide fresh produce. It’s a lot of people and businesses, big and small. “When business works, Australia works”.

Australia at Work is a campaign to restore Australians’ sense of hope and rekindle their aspirations for themselves and their families.

The campaign is about recognising and applauding the contribution business makes to Australia every day.

www.mga.asn.au

26

LEGAL AND HR

NATIONAL

LEGAL AND HR Union right of entry laws It is critical for all employers to know and understand their rights and obligations in regards to unions entering the workplace.

A union official can enter a workplace to: • Investigate suspected contraventions of the Fair Work Act or relevant award or agreement which relate to their members; • Meet with employees to hold discussions; or • Exercise work/occupational health and safety rights (including investigating suspected breaches of work health and safety obligations).

In order to enter premises, a union official must: 1. Provide a valid and current entry permit from the Fair Work Commission. When issuing a permit, the Fair Work Commission may impose certain conditions, which can limit the use of the entry permit; 2. Be entitled to represent workers of the workplace; and 3. Provide written notice of entry no less than 24 hours and no more than 14

days before the proposed entry to the workplace.

The entry notice must specify: • The premises to be entered • The day of entry • The organisation the permit belongs to • The section of the Fair Work Act 2009 that authorises the entry • Particulars of the suspected contravention • A declaration by the permit holder that they are entitled to represent the industrial interests of an employee who performs work at the premises • The provision of the organisation’s rules which entitles the organisation to represent the member.

If the union delegate does not hold a valid entry permit or provide adequate notice of entry, an employer may be entitled to refuse them entry.

Whilst on the premises, the permit holder may do the following: • Inspect any work, process, or object relevant to the suspected contravention

•

•

Interview any person about the suspected contravention who agrees to be interviewed and whose industrial interests the permit holder’s organisation is entitled to represent Require the employee to allow the inspection and copying of any record of a member that is directly relevant to the suspected breach.

Interviews and discussions with employees are to take place only during breaks.

Employers can check if a union delegate holds a valid and current entry permit by checking the register of permits on the Fair Work Commission’s website.

Please note that it is an offence under the Fair Work Act for employers to improperly refuse or delay entry, hinder or obstruct a valid permit holder from exercising their rights of entry into a workplace and the penalties can be significant.

If you require assistance in this area please contact MGA’s legal and HR team on 03 9824 4111 (line 1).

The demise of casual employment?

Casual employment has been a feature of the retail industry for many years. The idea of operating a store without casual employees is to most retailers a frightening proposition. Longer store opening hours and finding employees who are prepared to come to work for short periods at different times of the day may become difficult. Most retailers will argue that they need casuals to maintain flexibility and that if they are no longer available, their ability to operate a store efficiently will diminish.

May 2018 – Edition 3

Many supporters of decreasing the ability of employers to use casual labour will say that casual employees do not have any security because their hours can easily be decreased, they can’t get a mortgage because they might lose their job and sometimes they work longer hours in a day than many permanent staff. In addition, they must take unpaid time off when they take holidays, despite the fact they receive a loading of 25% to compensate. On the other hand, some casuals will say they like the extra money, many working mothers enjoy choosing

27

LEGAL AND HR

casual hours to care for their families, especially at the weekends, and students regard it as a bonus because they can only work weekends and they get the higher penalty rates.

So, changing the award may not necessarily be in the interest of some workers and employers but many changes have already been made to the award and there are more to come. The award was “modernised” in 2010 but there have been further changes during the four-yearly review processes. Over the last 12 months we have seen a change in the status of the “casual employee”. They still retain the 25% to compensate for personal leave and annual leave but now they are entitled to overtime, just the same as some permanent employees and there is an application before the Fair Work Commission to compensate with additional penalties for working after 6 pm and on Saturday evenings.

Later this year there will an opportunity in some cases for casual employees to become permanent after they have been with the same employer for a period of 12 months.

An employer will be required to notify a casual employee of their right to apply for a permanent role and certain criteria then must be met.

Will this have a serious effect on the retail industry? In many cases it will mean a major change for retailers where employees choose permanency over casual employment.

But it may not be as big a blow as might be expected. Not all employees will want to be made permanent and there will be some who won’t meet the criteria that must be met before the change can happen including: • Whether their hours have been regular and systematic; • Is it reasonably foreseeable that the casual employee’s position will cease to exist in the future?

• Might the hours of work significantly change or be reduced within the next 12 months; and • Whether there are other reasonable grounds based on facts which are known or reasonably foreseeable by the employer.

The employment of casuals is likely to decline in coming years. If employers wish to retain casual employees as part of their workforce in the future, they will need to employ them initially as true casuals – that is on an irregular basis.

Otherwise a casual employee employed on a regular basis for 12 months will have the choice to opt for a permanent position with the employer, and that will mean coping with a permanent employee base.

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www.mga.asn.au

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LEGAL AND HR

29

Decisions from the Fair Work Commission – Domestic violence leave and flexible working arrangements Domestic Violence Leave The Fair Work Commission (FWC) has rejected union bids for 10 days of paid domestic violence leave to be inserted as an entitlement into all modern awards.

However, the FWC did decide that all employees covered by modern awards, including the General Retail Industry Award, should be entitled to five days of unpaid family and domestic violence leave per year.

The full five days will become available at the commencement of each 12-month period (as opposed to accruing progressively like annual and sick leave) and will not accumulate from year to year.

Furthermore, there will be no requirement for employees to firstly use their paid leave entitlements before accessing the unpaid domestic violence leave.

Please note that this is not yet law and the FWC will release proposed clauses for public comment in the next few weeks.

The Turnbull government has already indicated that it will follow the FWC’s decision and amend the Fair Work Act to legislate for all employees, to have access to five days of unpaid family and domestic violence leave per year.

Flexible Working Arrangements In a separate decision, the FWC rejected a union application for employees to have the right to demand flexible or family friendly working arrangements by giving their employer reasonable notice.

Currently under the National Employment Standards, employees only have the right to request flexible working arrangements and then it is up to the employer to determine whether the request is reasonable and can be accommodated.

The FWC said that this change would give employees the right to determine their own hours irrespective of the needs of their employer and would risk leaving employers unable to properly roster staff or conduct their business.

However the FWC did propose changes to the current rules regarding requests for flexible working arrangements as follows: 1. All employees including casuals with a reasonable expectation of ongoing employment have the right to request flexible working arrangements after 6 months of continuous service; 2. Before refusing a request for flexible working arrangements, employers must attempt to confer with the employee to genuinely reach an agreement; and 3. Employers that refuse a request for flexible working arrangements must provide a written response with a detailed explanation for the reasons for refusal and offer any alternative work arrangements that are available.

These proposals are still being considered by the FWC and MGA will keep members up to date with any changes.

www.mga.asn.au

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LIQUOR NEWS

31

VICTORIA

LIQUOR NEWS Check IDs to avoid selling alcohol to minors – it’s that easy!

Regional hub launches in Ararat

The Victorian Commission for Gambling and Liquor Regulation (VCGLR) has embarked on an education campaign, visiting packaged and other licensed venues in metropolitan Melbourne and regional Victoria to remind them to check IDs to avoid selling alcohol to minors.

On Tuesday 13 March, Victorian Minister for Gaming and Liquor Regulation Marlene Kairouz was in Ararat to open one of the new regional hubs for the VCGLR, that will boost oversight of liquor and gambling premises across Victoria.

VCGLR Education officers have provided managers and employees with an information kit containing fact sheets, a licensees’ action plan and Q&A, required signage and a newly developed Responsible Service of Alcohol (RSA) principles poster – all of which can be found on the VCGLR website.

To ensure all licensees understand requirements, material has also been translated into Vietnamese and Chinese, and interpreters accompanied VCGLR Education officers on some of the visits.

Licensees were also reminded to: • Be familiar with the new keypass design and digital keypass • Not only check ID but make sure it’s an acceptable form of ID • Ask for ID if a customer looks under 25 as best practice • Display their 2018 licence and other administrative obligations • Refresh their knowledge on minors by doing the minors quiz or listening to the audio file on the VCGLR website • Read the intoxication guidelines • Practice responsible service of alcohol.

If you are not sure of your liquor compliance obligations please call MGA on 1800 888 479 or visit the VCGLR website at www.vcglr.vic.gov.au.

Eight dedicated regional inspectors will be based out of VCGLR offices in Ararat and Sale once they complete their twelveweek training program.

Inspectors will work from these offices as they visit licensed venues and monitor compliance across premises in eastern and western Victoria.

Being locally based will mean inspectors can build strong relationships with local licensees, councils and the police.

The government provided $11.3 million over four years to the VCGLR in the 2017/18 State Budget to increase its presence in regional Victoria.

www.mga.asn.au

LIQUOR NEWS

33

VICTORIA

Urban Hub opens its seventh Melbourne store Building on their successful business model of locating their stores in high density inner city residential and business hubs, Urban Hub has opened their seventh store at 479 St Kilda Road, Melbourne.

Director Con Kiourtsidis stated that the group would continue to invest in new suitable greenfield sites as they became available, offering their customers convenience, service and a product range suited to today’s consumers fast moving life style at competitive pricing.

To complement our own trading brand, for liquor we have chosen to partner with IBA and use their Cellarbrations Banner.

We felt that it fitted best with our marketing model, offering brand recognition and strong promotional support.

PROSECCO SPRITZ JUST POP & POUR Director Peter Argyriou and Manager Bidur Rupakheri

www.mga.asn.au

34

LIQUOR NEWS

AUSTRALIAN CAPITAL TERRITORY

ACT Container Deposit Scheme details announced On Wednesday 11 April, MGA attended an industry information session in Canberra, where the ACT Government, scheme co ordinator Exchange for Change and Network operator Re.Group revealed the details of the pending Container Deposit Scheme.

Key points: • Proposed commencement date is 30 June 2018 • Costs for the scheme in the ACT: All containers will be charged at 9.940 cents for July, 10.192 cents in August and 10.445 cents in September • Containers can be returned on the same date as any potential price change comes into effect • Scheme prices are lower in the first three months, so true up adjustments

May 2018 – Edition 3

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are expected to be smaller Crushed and damaged containers can be returned There will be two collection point formats: Depots – standalone businesses • 300 – 600 sqm premises • 3 – 8 Staff • Cash payment if required • Targeting at least six collection points from commencement of 30 June, with 10 – 15 within 12 months.

1. Express – Cashless simple business model • Minimal labour • Fast, easy, convenient for customers • The majority of collection points will be based on the express

•

•

format – please refer to the web address at the bottom of this article for more information.

As the refund system is not bar code dependent, ineligible containers as well as product packaging material such as cardboard, will be accepted at collection points.

All collection points will be approved and licenced by the ACT Government

MGA will be working with ACT Government in the development of a consumer point of sale information pack and an in-store signage kit for use by retailers.

The full presentations can be viewed at www.mga.asn.au/act-cds – alternatvely, please call MGA on 1800 888 479 with your query.

35

LIQUOR NEWS NATIONAL

DrinkWise to strengthen responsible drinking campaigns

Accolade purchased for 1 billion dollars

DrinkWise is an independent, not-for-profit organisation established by the alcohol industry to bring about a healthier and safer national drinking culture.

CHAMP Equity has agreed to sell Accolade Wines, the biggest producer of Australian wine and owner of wine labels including Hardy’s and Grant Burge to global buyout firm The Carlyle Group.

CEO Simon Strahan stated that DrinkWise and their industry partners have been actively promoting the National Health and Medical Council’s guideline that it’s safest not to drink while pregnant via alcohol product labels and packaging since 2011. Their recently commissioned consumer research revealed that 75% of 18-40 year old’s surveyed had seen the messages on products and packaging.

Importantly, this result increased to 89% in the young adult population.

Over two thirds (67%) of survey respondents thought the labels provided useful information, with almost 40% having taken some form of action after seeing the labels, primarily reducing their consumption or sharing the information with others.

DrinkWise recognise that the use of consumer information messages on labels is only one part of a larger consumer education effort, which is why their initiatives have involved the Royal Australian and New Zealand College of Obstetricians and Gynaecologists as well as drinks retailers, licensed venues and cellar doors across Australia.

A recent government report showed that 75% of alcoholic products with the greatest market share carry the pregnancy message.

Strahan went on to say that industry can assist by adopting the DrinkWise developed pregnancy and ‘get the facts’ messages within their own retail promotions wherever possible.

Any active support is key to amplifying DrinkWise’s work beyond what could be achieved on their own.

For further information on these campaigns please visit drinkWise.org.au.

CEO Mr Haddock said the sale capped a big effort by CHAMP, which created Accolade in 2011, when it bought Constellation’s Australian and European business units for $290 million.

Accolade is on track to make about $100 million in earnings before interest and tax this year, having been breaking even when CHAMP acquired it seven years ago.

New owner Carlyle is expected to seek to accelerate Accolade’s Asia strategy, with a focus on China where wine consumption is increasing at about 50 per cent a year. Accolade’s business in China is small but growing quickly – its sales in China are forecast to be up 80 per cent this year.

It currently exports about $350 million a year of wine annually from Australia.

Mr Haddock said CHAMP had also been conscious of being a custodian of some historic wine labels including four – Hardy’s, Leadingham, Chateau Reynella and Houghton – each with more than 100 years of heritage.

“I know Sir James and Bill Hardy are very pleased with the renewed trajectory that their family’s heritage brand is taking and since Accolade’s acquisition of Grant Burge, sales have increased by more than 80 per cent.”

www.mga.asn.au

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TRAINING

37

NATIONAL

MGA INDUSTRY TRAINING What is the difference between use-by and best-before dates?

Knowing the difference between the use-by and best-before date is important for your business, as this will save you money. If the use-by and best-before dates are monitored correctly it will reduce the amount of perfectly edible food being discarded.

Use-by date can usually be found on products that are likely to spoil quickly such as raw meats, dairy products and pre-packaged salads. Use-by dates indicate a date after which an item of food is likely to have spoiled to the extent that it is not safe to eat. It is illegal to sell products that have past their use-by dates

as this may pose a health or safety risk to the consumer. If caught selling items past their use-by dates you will be hit with hefty fines.

Correct handling and storage are also critical to ensure the quality and safety of the food item, especially keeping the food in a fridge which is at the correct storage temperature. Storage instructions can be found on the labelling of the product or packaging.

Best-before dates appear on tinned, frozen foods and fresh food that keeps for a long time, such as eggs. As opposed to

the use-by dates, best-before dates are focused on the quality of the product and not the safety.

Items of food can be still consumed after the best-before date; however, the texture, flavour and nutritional value of the product will be less and will continue to deteriorate with time to ensure the continued safety of the food product, it is very important that the food is stored in the correct manner. Information on this can usually be found on the packaging.

Remember if the product looks and smells suspicious after the best-before date then you should not sell it.

Implementing a strong food safety culture As published by Food Standards Australia New Zealand (FSANZ): Food safety culture in a business is how everyone (owners, managers & employees) thinks and acts in their daily job to make sure that the food they make or serve is safe.

It’s about having pride in producing safe food every time, recognising that a good quality product must be safe to eat. Food safety is your top priority.

There are many benefits of having a strong food safety culture in your food business, the most obvious being the manufacture and sale of safe food. It can also protect your business from financial loss and maintain the integrity of your business brand.

The following points can help with establishing a strong food safety culture within your food business.

1. Strong leadership – it starts at the top. Managers/supervisors must show the way and openly commit to making safe food the top priority throughout the business.

2. Committed managers – managers can show their commitment to food safety through dedicating time and effort, implementing effective twoway communication and a supportive environment where staff feel confident to contribute is a must.

3. Everyone contributes – everyone in the business believes making safe food is important and everyone plays a part. This includes from the manufacturer, delivery drivers, contractors as well as the team leaders and staff.

4. Everyone is accountable – everyone understands that they are held responsible for ensuring food is safe.

5. Knowing and acting – this is making

sure that all team leaders and staff know the risks and do the right thing, every time. Starting with a comprehensive training program and implementing refresher when required, will be a great foundation to build upon.

6. Continual improvement – be proactive by monitoring what goes on. Look for ways to improve and prevent problems in the future.

www.mga.asn.au

38

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!

Managing Your Employees It is important to understand the laws associated with managing employee issues. Learn how to deal with difficult employees and resolve workplace problems.

Knowing the correct procedure to follow if termination of employment is required is vital so as to avoid costly court hearings. This seminar will provide you with the necessary information to establish a safe and productive workplace.

ADELAIDE Date: 24th May, 2018 Time: 9.00am – 1.00pm Members price: $165

May 2018 – Edition 3

TRAINING

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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 – protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Don’t forget to log in for your member discounts!

Visit www.mga.asn.au to see our range of training courses!

www.mga.asn.au

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