ISSUE 7 | OCTOBER 2017
YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
PENALTY RATES REDUCTION MGA “MAKES LIFE EASIER” National Support Office
•
1800 888 479
•
www.mga.asn.au
Ask your customers to press or to get cash out and avoid ATM fees. CHQ
eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.
SAV
3
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
CONTENTS 5 CEO welcome
INDUSTRY NEWS 7 ACCC takes JJ Richards to court over alleged unfair contract terms 7 Vaping Shop, SA 7 Hahndorf SA – bike riding bliss 8 IGA Penola, South Australia 9 Access to finance 9 Ban on excessive payment surcharges – credit cards 10 ACCC delays call on BP, Woolworths fuel deal 11 MGA welcome penalty rates win! 11 Tax payer engagement – illicit tobacco 12 COSBOA Summit 14 Our special energy offer for you 16 2017 Annual GALA Industry Ball 17 Small Business Ombudsman meets with Associations 18 NAB lead on simpler small business contracts welcomed 18 Mental health strategic plan 19 Effect of electricity price increases on the independent supermarket sector 19 MGA TMA committee – Canberra 21 3 reasons why you need an E-commerce store 23 Increase in alcohol consumption 25 Foodland South Australia leads supermarket satisfaction 25 MGA’s Legal and HR Team 28 How to cut through the complexity of asset finance 29 MGAQ committee 30 What small businesses need from our finance and banking sector
LEGAL AND HR 31 When can an employer question medical certificates? 33 Salaries under the General Retail Industry Award 2010: Is your business at risk of an underpayment claim?
CORPORATE PARTNERSHIP AND MEDIA SALES
33 Patriot Campers – on the road to success 34 Making sure employees are paid for all time worked
Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au
LIQUOR NEWS
EDITORIAL AND PRODUCTION
E: courtenay.hirst@mga.asn.au
FOLLOW US ONLINE:
www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers
35 Strong adjusted numbers for the liquor sector 36 Meeting customers’ needs crucial in staying ahead of the game 38 NSW Container Deposit Scheme from 1 December 2017 38 From the makers over to the tasters 40 Disaronno presents new limited edition: Disaronno wears Missoni 43 MGA meets with VCGLR Executive 43 The Penfolds Collection 2017 44 New look Keypass ID card 44 Schoolies is almost here 44 VCGLR selects new regional hubs
TRAINING 45 The importance of food safety training 45 Customer service training Cover photo: Shane and Kerry McPherson – Story page 8 www.mga.asn.au
MGA CORPORATE PARTNERS DIAMOND
British American Tobacco Australia PLATINUM
GOLD
SILVER
BRONZE
ASSOCIATE
WAREHOUSE AND BRAND PARTNERS
tasmanian independent retailers
5
CEO REPORT
CEO WELCOME Footy finals and the commencement of spring is always an exciting time for supermarket operators. The weather begins to improve and people seem to transition smoothly from footy into spring horse racing and summer sports. It’s also the time that retailers sort out their food and beverage ranges from winter warmers to summer BBQ’s and salads. Members may recall earlier MGA advice concerning MGA strengthening its sustainability by absorbing the Timber Merchants Association. As MGA President Rod Allen stressed at the time, this will only serve to further strengthen the support and services MGA members enjoy today. MGA has formed a MGA TMA Committee which will oversee the growth of MGA TMA from a state based association to a national body representing the Timber and Hardware Industry. The acronym TMA now means the Timber Merchants of Australia (TMA). MGA TMA members are family owned enterprises and privatelyowned businesses much the same as all our current members. MGA absorbed TMA on 1st July 2017. A delegation of MGA TMA Committee members recently visited Canberra to address with Government Ministers a number of common matters including
rising energy costs, cutting of company tax, strengthening of competition laws as well as articulating issues with local timber supply for the building industry. The Federal Government and State Governments and Territories continue to create issues for members around Australia. Sustainability and viability is becoming more challenging as each new piece of legislation is proposed – so much for the cutting of red tape and cost burdens. MGA is currently working on the following matters across a number of States and Territories including; plastic bag bans, container deposit legislation; packaged liquor licenses, tobacco retail licensing, E-cigarettes (vaping), planning and zoning and reduction of payroll taxes. Compounding these matters we currently have a very serious national energy supply crisis forcing unsustainable electricity price increases, causing members unprecedented angst. MGA has recently presented a compelling snapshot to Environment Minister Josh Frydenberg showing a cost increase to our members around Australia of more than $100m since January 2017. Members coming out of affordable contracts have been faced with extraordinary electricity cost increases. As pointed out to the Minister, if nothing is done soon to reduce energy costs then there is only one economic
lever that our members can pull to release the pressure valve and that is to reduce our work force by more than 2000 jobs. Other Federal matters MGA is currently working on include; Sunday penalty reductions, banking and the availability of finance and illicit tobacco – see articles contained in this magazine edition. The annual MGA GALA Industry Ball held on the 15th September in the magnificent Regent Theatre Plaza Ballroom in the centre of Melbourne, attended by more than 400 members and industry friends was a huge success. Raising over $63,000 for the Reach Foundation and seeing the changeover from GALA Committee Patron, Metcash CEO Ian Morrice to revered Industry Leader Fred Harrison was tremendous. Congratulations to the GALA Committee who volunteer their time so generously. Members are reminded the MGA’s Annual Industry Business Breakfast and AGM will be held at the Waterview at Bicentennial Drive, Bicentennial Park, Sydney Olympic Park, on Thursday 16th November commencing at 7.00am. Please book early as we have a compelling list of speakers. Until next edition – good selling. Jos de Bruin CEO MGA Independent Retailers
2017 AGM and
BUS I NESS B REAKFAST PERTH – THURSDAY 21ST SEPTEMBER Waterview at Bicentennial Drive, Bicentennial Park, Sydney Olympic Park Commencing at 7.00am
www.mga.asn.au
AUSSIE NRG FOR YOUR ELECTRICITY MANAGEMENT NEEDS
Get a COMPLIMENTARY ELECTRICITY ASSESSMENT of how much Aussie NRG can SAVE YOU with their GROUP BUY platform! Send through your details along with a photo or scan of a recent electricity bill... It’s that easy!
Case study
Services available
Previous rate peak
14.8922c /kWh
Re-negotiated rate peak
10.3524c /kWh
Previous rate off peak
10.9371c /kWh
Re-negotiated rate off peak
7.8311c /kWh
Total savings over 5-year contract
$32,439.00 saving!
Previous daily metering charge
$7.47/day
BILL AUDIT
TARIFF REVIEW
MLF RESET
Aussie NRG’s daily metering charge $1.92/day Total savings over 5-year contract
PF CORRECTION
GROUP BUY
$7,902.00 saving! METERING
Previous maximum load factor
120 kW/month:
$1,464.33/month
Reset maximum load factor
83 kW/month:
$1,075.00/month
Total savings over 5-year contract
$22,800.00 saving!
*Based on an Aussie NRG PTY. LTD. customer from October 2017
ENERGY MANAGEMENT SOLUTIONS
SOLAR QUOTATION AUDIT
For an obligation FREE quote contact Aussie NRG on: Phone: 1300 440 224 or 0409 377 852 Fax: (03) 9923 6645 Email: contactus@aussienrg.com Web: www.aussienrg.com
7
INDUSTRY NEWS
ACCC takes JJ Richards to court over alleged unfair contract terms As MGA members are aware “Unfair Contract Terms” legislation has recently been strengthened by the Federal Parliament. Members must be vigilant to uncover any “unfair terms” that may be in a contract when entering into binding agreements with other providers of services and products. As a consequence of this long awaited review of unfair contract terms, the ACCC has finally been able to take a company exercising unfair contract terms with its customers to court. The ACCC has instituted proceedings in the Federal Court against JJ Richards & Sons Pty Ltd (JJ Richards) alleging that eight clauses in its standard form small business contract are void because they are unfair under the Australian Consumer Law (ACL). JJ Richards is one of the largest privatelyowned waste management companies in Australia and provides recycling, sanitary, and green waste collection services. From 12 November 2016, the unfair contract terms provisions of the ACL were extended to cover standard form contracts involving small businesses. The ACCC alleges that until at least April this year, JJ Richards entered into standard form contracts containing terms the ACCC alleges are unfair because they: • Create a significant imbalance in the rights and obligations of JJ Richards and small businesses • Are not reasonably necessary to protect JJ Richard’s legitimate interests • Would, if relied on, cause significant financial detriment to small businesses. “This is the first time the ACCC has taken court action to enforce the new laws that protect small businesses from unfair
contract terms,” ACCC Deputy Chair Dr Michael Schaper said. The ACCC alleges JJ Richard’s standard form small business contracts contain eight unfair contract terms: • Binding customers to subsequent contracts unless they cancel the contract within 30 days before the end of the term; • Allowing JJ Richards to unilaterally increase its prices; • Removing any liability for JJ Richards where its performance is “prevented or hindered in any way”; • Allowing JJ Richards to charge customers for services not rendered for reasons that are beyond the customer’s control; • Granting JJ Richards exclusive rights to remove waste from a customer’s premises; • Allowing JJ Richards to suspend its service but continue to charge the customer if payment is not made after seven days; • Creating an unlimited indemnity in favour of JJ Richards; and • Preventing customers from terminating their contracts if they have payments outstanding and entitles JJ Richards to continue charging customers equipment rental after the termination of the contract. “In 2016 the ACCC engaged with a range of industries to encourage compliance with the new laws and reviewed small business contracts in a range of industries, including the waste management industry,” Dr Schaper said. The ACCC is seeking declarations that the terms are unfair and consequently void, and injunctions to prevent JJ Richards from relying on those terms or entering into future contracts with small businesses that contain them. Source ACCC
Vaping Shop, SA Sale of vaping or E-cigarette devices is legal in SA and has been going on for quite some time. Members are quite entitled to stock these devices and capitalise on the growth of these tobacco smoking alternatives. On a recent visit to Adelaide a vaping shop was found on a main road in Thebarton – complete with a board advertising vaping, out the front. Coincidentally there is draft legislation before the SA parliament as we speak that will render E-cigarettes or vaping devices subject to the same laws as tobacco products and must not be sold to minors and must be displayed behind closed doors.
Hahndorf SA – bike riding bliss MGA’s South Australian Director Chris dos Santos, together with his brother Franklin, own and operate Foodland Valley View and IGA Henley Beach. Chris’s love outside of the business is riding one of his high-performance bikes in the Adelaide Hills, which has become a famous haunt for the internationals riding in the Tour Down Under Chris dos Santos each January.
www.mga.asn.au
8
INDUSTRY NEWS SOUTH AUSTRALIA
IGA Penola, South Australia Deep in the Coonawarra heartland, famous for its red wine, is the regional township of Penola. A town famous for almost 200 years for serving its farming and wine producing community. Owners and operators of the IGA Fresh Supermarket in Penola, Kerry and Shane McPherson, have been mainstays of the community by providing families with their grocery needs for 27 years. After starting in a small store 9 years ago, the McPherson family invested in a new greenfields supermarket and they haven’t looked back since. Delighting their customers, Shane and Kerry built an 850 square metre supermarket, with the latest equipment with all departments including delicatessen, bakery, fresh produce, meat, general merchandise and
Assistant Store Manager Martin Simmond
October 2017 – Edition 7
fresh flowers, stocking more than 15,000 skus as well as providing 90 car parking spaces. The store is well lit and presented beautifully with wide aisles and plenty of shopper comforts. The front end includes two fast service registers as well as three full service lanes. So good was this store that it won the IGA National Retailer of the Year award in 2011 and has since then won many major departmental and store awards. Boasting eight gondola ends for specials and features at the front of the store and for general merchandise at the rear of the store, a specific area for general merchandise, 30 freezer doors – one with ice, 9 metres of dairy case for milk and drinks, 19 metres of dairy case for butter, cheese, dips and yoghurts and a
magnificent newly installed 4 metre cheese case. Local and “travelling through” consumers are well and truly catered for. There is a gourmet deli serving quick meals solutions and a variety of continental small goods and local products. The fresh produce section at the front of the store, with its newly made and installed vegetable bins, by son Sam, is magnificent and is the corner stone of the store. Presentation and freshness exemplify this and other fresh departments giving reason to the fact that fresh sales are over 30% of the business. The McPhersons have always been the hub of the community supporting local clubs, kinders, schools and hospitals and other good causes. Congratulations to Kerry, Shane and all the staff for presenting this wonderful store to the Penola community.
9
INDUSTRY NEWS
Access to finance Since the former Federal Small Business Minister, Kelly O’Dwyer appointed Kate Carnell as the Australian Small Business and Family Enterprise Ombudsman almost 2 years ago there has been quite a bit of activity. This includes a review of the banking and finance area which addresses the difficulties family enterprises and privately owned businesses are experiencing in obtaining finance from the major banks. The “Carnell Banking Report” as it is known has made a number of recommendations to help simplify and create a fairer platform for small businesses to obtain finance. To that end the Australian Small Business and Family Enterprise Ombudsman has welcomed government moves to reduce regulatory barriers to entry for new entrants to the banking system. Treasury is consulting on proposed changes to the Banking Act, which would allow use of the word “bank” by authorised deposittaking institutions. Ombudsman Kate Carnell said this should improve access to finance for small business.
“The power and control of the established banks remains a barrier for small businesses seeking capital to start or expand their operations,” Ms Carnell said. “Another barrier is a general requirement by the major banks for bricks-and-mortar security. “Unless a small business is able to meet this requirement, often by using a business owner’s home as security, they have few options to obtain finance. “Many young people do not own a home or have limited equity in their home, and therefore struggle to borrow to start or expand a business.” Ms Carnell said removing restrictions on use of the term “bank” should enable more industry participants to compete with established institutions and make it easier for small business operators to borrow funds. She noted the Australian Prudential Regulatory Authority’s guidelines currently
Kate Carnell require “banks” to hold at least $50 million in Tier 1 capital. “APRA will need to review its guidelines for minimum capital requirements if new entrants are to compete equally with the major banks,” Ms Carnell said. MGA and COSBOA, of which MGA is a director, are working very closely with Ombudsman Carnell on a variety of matters that are barriers to growing businesses and creating employment in Australia. Source AAP medianet
Ban on excessive payment surcharges – credit cards Members are advised that as from 1 September the ban on excessive payment surcharges will commence. What does this mean? This means, all businesses across Australia are banned from excessively surcharging customers when they pay with debit, credit or EFTPOS cards. The ACCC have been good enough to provide MGA with some key points below for members to be aware of; • The law applies to most types of card payments: o EFTPOS (debit and prepaid) o Visa (debit, credit and prepaid) o MasterCard (debit, credit and prepaid) o American Express (where an
•
•
•
Australian financial services provider issues the card). A surcharge is excessive if it exceeds the business’s ‘cost of acceptance’ – that is, from charging a customer more than what it costs the business to process the payment. Costs of acceptance can include what financial institutions charge businesses for transactions and the rental of card terminals, but cannot include a business’s internal costs such as labour or utility costs. Costs of acceptance will vary from business to business, so businesses that want to impose a surcharge should seek advice if they are unsure about what they can charge.
•
•
The ACCC can require businesses and banks to provide evidence of the actual costs incurred for accepting a particular payment method. Businesses must be able to substantiate their costs, so they should keep contracts, statements, invoices etc. as evidence. Businesses can face court-imposed penalties of up to $1,358,910. The ACCC can also issue infringement notices with penalties of either $12,600 (body corporate) or $126,000 (listed corporation) when it believes the business has imposed an excessive payment surcharge.
For more information see the ACCC’s online guidance material.
www.mga.asn.au
10
INDUSTRY NEWS
NATIONAL
ACCC delays call on BP, Woolworths fuel deal Back on the 30th of August, it was indicated that there is a “green light for Woolworths shoppers if BP buys the Caltex servos”. This announcement came as the ACCC issued a draft decision proposing to grant conditional authorisation to a commercial alliance between BP Australia, BP Resellers and Woolworths. This authorisation will allow participating BP service stations to accept Woolworths shopper dockets and participate in the Woolworths Rewards loyalty program, if BP is successful in acquiring Woolworths’ service stations. MGA, on behalf of members have lodged two submissions with the ACCC raising the serious risk of competition being lessened in the grocery industry, particularly in the convenience grocery channel, if BP succeeds in purchasing the Caltex service stations. BP have sought authorisation for the Woolworths Rewards program together with the 4 cents per litre petrol offer (available now in Woolworths Caltex service stations) to be additionally available in most BP service stations. It is feared that Woolworths, utilising its market power, will partner BP to develop each site to include a Woolworths Metro store concept, which significantly increases its distribution of small to medium sized supermarket sites and could effectively tie consumers to shop for their
groceries and fuel in either Woolworths or BP outlets thus significantly reducing competition. “Customers value fuel-related discounts and loyalty programs. We (the ACCC) believe giving consumers more opportunities to redeem shopper docket discounts and earn and redeem points through Woolworths’ loyalty program will likely result in some public benefits,” ACCC chairman Rod Sims said.
However, the ACCC says it has long-standing concerns that these kinds of fuel discounts can have anti-competitive effects if they are at a level that is unable to be matched by otherwise efficient fuel retailers. “The ACCC considers that fuel discount offers in excess of 4c a litre could have longer-term effects on the structure of the retail fuel markets and that the detriments from reduced competition may outweigh any benefits,” Mr Sims said. In the latest announcement, 6th October, the competition watchdog has delayed its decision on BP’s $1.8 billion acquisition of more than 500 service stations owned by Woolworths. The Australian Competition and Consumer Commission said that it needed more time for ‘data analysis, and to consider information provided by parties and market participants.’ It was due to deliver its ruling on the deal on October 26, but that has now been pushed back to November 30. In August, the ACCC said it was concerned that motorists could end up paying more for fuel if the takeover went ahead. ACCC chairman Rod Sims said at the time that the deal could substantially reduce competition in metropolitan areas by reducing the number of rivals in the fuel market. Woolworths agreed in December 2016 to sell its 527 petrol stations and 16 development sites to BP, which already owns 350 retail sites in Australia and supplies a further 1,050 BP-branded sites. If the deal gets the green light, BP and Woolworths plan to jointly roll out up to 200 new format convenience stores, rivalling Caltex and Shell-owner Viva Energy in the fuel convenience store market. BP has also previously said it plans to keep the Woolworths four cent per litre discount offer.
BROWN BROTHERS PROSECCO
October 2017 – Edition 7
The acquisition also requires approval from the Foreign Investment Review Board. Source ACCC & Sky News
INDUSTRY NEWS
11
NATIONAL
MGA welcomes penalty rates win! On 11 October, employers had a massive win in the Sunday penalty rates case with the Federal Court finding in favour of employers. Jos de Bruin, the CEO of Master Grocers Australia (MGA), said that, “The decision by the Federal Court has proven that employers were justified in their claim to reduce Sunday penalty rates. In its decision the Federal Court stated that in hearing any matter the Fair Work Commission is charged with the responsibility of considering all the relevant evidence and reaching the appropriate conclusion. The Federal Court found that the Fair Work Commission had carefully considered all the arguments that had been placed before it and the Federal Court was not able to ‘enter into the merits of the determinations made by the Fair Work Commission’.” Mr. de Bruin continued that, “MGA,
together with a number of other industry associations, had engaged Stuart Wood QC and his team to defend this application for the retail sector. At the hearing Counsel had stressed that the FWC made the correct decision, it had acted within its jurisdiction and that, in its decision the FWC was balancing the interests of employees and employers.” “The new penalty rates have already been introduced into the modern award and will reduce gradually over the next few years to 50% on Sunday. We have never advocated not providing some compensation for employees working on Sunday. By reducing the Sunday penalty our retailers have gained an opportunity to employ more staff, have some time for themselves and also keep the business viable. Many employers simply could not afford to continue paying high penalty
rates and previously employing extra staff was too expensive and therefore economically difficult. This favourable decision is going to help small businesses to grow and, despite what some critics claim, the decision will definitely assist in employment growth and productivity, because without this opportunity employers simply could not afford to give jobs to those who want them”. “MGA applauds the decision of the Federal Court and thanks all those who worked so hard to claim this favourable outcome. Employers have finally been vindicated and they can move forward in their businesses with greater confidence. At last the playing field is being levelled and employers and employees can share the positive results that will inevitably emanate from this fair and equitable decision.”
NATIONAL
Tax payer engagement – illicit tobacco Illicit tobacco continues to be a major problem effecting MGA members businesses across Australia. Not only does this uncontrolled illicit tobacco phenomena rob our members of legitimate tobacco sales revenue but so too, the Federal government (the Australian public) is missing out on billions of dollars of excise tax and GST. MGA has been consistently vigilant in highlighting this serious matter with all sides of politics at state and federal level, as well as, with government agencies. There seems to be little anyone is doing, although Australian Border Force has recently been successful in seizing illegal imports of illicit tobacco – but this is the tip of the iceberg. Members may be aware in recent weeks of the enormous amount of publicity in newspapers through
articles written by prominent members of the public in the form of opinion pieces, editorials and articles addressing their illicit tobacco concerns and the little that is being done about it. Federal Minister for Revenue, Hon Kelly O’Dwyer has recognised illicit tobacco as a threat to government revenue and has embarked upon conducting an inquiry into tax payer engagement through the House Tax and Revenue Committee. MGA has been invited to give evidence and share the issues that members face because of the presence of illicit tobacco in their communities. Recently, committee member Ms Nicolle Flint MP (SA Member for Boothby) contacted MGA expressing the committee’s interest in hearing about
the impact of the illegal tobacco trade on legitimate businesses, which are tax compliant and operating in accordance with tobacco sale regulations. Ms Flint understands this is an issue which MGA has made representation on a number of occasions. MGA will participate in this public hearing, in Canberra on 25 October and will keep members informed of any progress made concerning this serious matter.
www.mga.asn.au
12
INDUSTRY NEWS
NATIONAL
COSBOA Summit The Council of Small Business of Australia Summit was held in Melbourne from 23 to 25 August. The theme of the summit was Collaboration and Community which was fully embraced during the summit across a number of presentations, discussions and workshops. The quality of the speakers and audience was exceptional. MGA’s Board of Directors, as well as FoodWorks retailers, Tracee and Dominic Bruscamello, attended this event. Our industry can certainly be
proud of its presence which helped to further lift MGA’s profile with Federal and State politicians, bureaucrats and other industry associations. The opening of the summit was facilitated by COSBOA CEO Peter Strong and Chairman Paul Nielson and involved a panel of young men and women who recently started up their businesses and shared their experiences and insights with the audience. This set the scene for the rest of the summit.
COSBOA Board with Australian Regulator Commissioners
David Gandolfo, VIC Shadow Small Business Minister Neale Burgess, Kate Carnell, Anna Bligh, Jos de Bruin
Day one of the summit was rich with speakers and opportunities to engage with a variety of people across a number of small business-related presentations. Sessions included; the future of our economy by Tony Shepherd, past president of the BCA, small business – communication and the future, the digital economy, our regulators – how can we work better together, the role of business associations in modern society and ended with a fully subscribed summit dinner.
Banking Discussion Panel
COSBOA CEO Peter Strong with Federal Small Business Minister Michael McCormack
COSBOA’s Mark McKenzie facilitates discussion with heads Chris Jordan Commissioner for Taxation, John Price Commissioner for ASIC, Natalie James Fair Work Ombudsman, Michael Schaper ACCC
October 2017 – Edition 7
13
INDUSTRY NEWS
Special guests and speakers on day one included; Minister for Small Business Michael McCormack, Minister for Energy and the Environment, Hon Josh Frydenberg who were special guests at the summit dinner, Shadow Assistant Small Business Minister Julie Owens, Chris Jordan Commissioner for Taxation, John Price Commissioner for ASIC, Natalie James Fair Work Ombudsman, Dr Michael Schaper ACCC Deputy Chairman and Richard Clancy Deputy President of the Fair Commission.
MGA Director Graeme Gough, MGA’s George Kovits, Shadow Assistant Small Business Minister Julie Owens.
Day two commenced with a business breakfast with the Leader of the Opposition Hon Bill Shorten being the special guest and speaker. This was followed by a robust banking and finance panel session addressing the concerns of small businesses – panellists included; Victorian Small Business Minister Philip Dalidakis, Victorian Shadow Minister for Small Business Neale Burgess, Kate Carnell, the Small Business Ombudsman and former Queensland Premier, Anna Bligh the CEO for the Australian Bankers Association.
Mental health is fast becoming a hot topic in the small business world as highlighted in the following session by the Victorian Small Business commissioner Judy O’Connell and her panel. The final session included an address by the BCA CEO Jennifer Westacott along with an address by BCA President Grant King. The theme of both presentations encapsulated the need for small and big businesses to work together on matters of a common concern. All in all a very good summit addressing many relevant small business issues and concerns.
COSBOA Director David Gandolfo, Minister McCormack, COSBOA Chairman Paul Nielsen, Minister Josh Frydenberg, COSBOA CEO Peter Strong, MGA’s Jos de Bruin
COSBOA Board with Ministers Josh Frydenberg and Michael McCormack
Minister for Small Business McCormack
Minister Josh Frydenberg with COSBOA Director David Gandolfo
Senator Nick Xenophon and COSBOA CEO Peter Strong
Breakfast with opposition leader Bill Shorten
www.mga.asn.au
14
INDUSTRY NEWS
OUR SPECIAL ENERGY OFFER FOR YOU We’ve got great gas and electricity discounts for you and your employees! MGA has partnered with Origin Energy to bring you special electricity and natural gas offers for your home. As an employee of a MGA member, you can access some great energy plans that are available to existing and new Origin Energy customers. PLUS.. SIGNING UP WITH ORIGIN ENERGY GIVES YOU ACCESS TO THESE GREAT BENEFITS: THEY’RE HERE TO HELP
FLEXIBLE PAYMENT OPTIONS
Origin know you’re busy, so they have extended their opening hours. They’re open around 7am to 9pm weekdays, and 9am to 5pm Saturdays.
No one likes paying energy bills not even the discounted ones. But with EasiPay*, you have the flexibility to pay them weekly, fortnightly or monthly.
NO EXIT FEES ON RESIDENTIAL ENERGY PLANS Energy needs change, so you won’t be locked into a plan that might not be the best for your home in the future.
ONLINE ACCOUNT MANAGEMENT Using Origin’s ‘My Account’, you can pay your bills, check your usage and much more.
So to check out the offer and sign up, just head to: buyinggroup.originenergy.com.au/MGA October 2017 – Edition 7
15
INDUSTRY NEWS
The 2 case studies below are very recent examples of 2 MGA staff members that compared MGA's Origin offer to their current provider. In these 2 cases the home owners were able to save $681.69 and $923.52 per annum by switching their electricity and gas over to Origin Energy. Electricity Account – Oakleigh Vic 3166
Electricity Account – Port Melbourne VIC 3207
Current Plan (AGL)* including GST
Current Plan (AGL)* excluding GST
Anytime Usage
Price
Usage
Total
0.32824
1700.327
$558.12 $558.12
30% Usage
$167.43
Discount
87
$105.50
Supply Charge
$496.18
Total charges for 90 days
Sub Total Discount Supply Charge
1.21264
Total charges for 90 days
Price
Usage
Total
Peak
0.3036
1925.947
$584.72
Off Peak
0.1793
1257.134
$225.40
12% Usage
$712.91
90 days
$109.96
Offered Plan (Origin Saver) *including GST
1.2218
$822.87
Offered Plan (Origin Saver) *excluding GST
Price
Usage
Total
Price
Usage
Total
0.29634
1700.327
$503.87
Peak
0.2892
1925.947
$556.98
Sub Total
$503.87
Off Peak
0.1649
1257.134
$207.30
TOTAL FOR 90 DAYS
$337.60
Total
$81.05
Discount
$418.64
Supply Charge
Anytime Usage
Supply Charge
0.93159
87
Total estimated charges for 90 days
$764.29 1.0276
33% Usage
$512.07
90 days
$92.48
TOTAL ESTIMATED SAVINGS FOR 87 DAY PERIOD
$77.54
Total estimated charges for 90 days
$604.56
TOTAL ESTIMATED SAVINGS/ ANNUM
$314.45
TOTAL ESTIMATED SAVINGS FOR 90 DAY PERIOD
$218.31
TOTAL ESTIMATED SAVINGS/ ANNUM
$885.38
Gas Account – Oakleigh Vic 3166 Gas Account – Port Melbourne VIC 3207
Current Plan (AGL) *excluding GST
Current Plan (AGL) *excluding GST
Price
Usage
Total
Charge First Usage
0.02156
3336.74
$71.94
Charge Balance
0.01742
41480.895
$722.60
Peak
8% Usage
$63.56
Discount
58
$35.72
Supply Charge
$766.70
Total charges for 60 days
Discount Supply Charge
0.6159
Total charges for 60 days
Charge Balance
Price
Usage
Total
0.02215
3336.74
$73.91
Peak
41480.895
$748.32
Discount
18% Usage
$156.22
0.01804
Discount Supply Charge
0.6953
58
Usage
Total
0.02267
469.65
$10.65
8% Usage
$9.80
60 days
$46.84
0.7807
$56.64
Offered Plan (Origin Saver)
Offered Plan (Origin Saver) Charge First Usage
Price
Price
Usage
Total
0.02215
469.65
$10.40
18% Usage
$8.53
60 days
$41.84
$666.00
Supply Charge
0.6973
$40.33
TOTAL CHARGES FOR 60 DAYS
$50.37 $6.27 $38.14
TOTAL CHARGES FOR 60 DAYS
$706.33
TOTAL ESTIMATED SAVINGS FOR 60 DAY PERIOD
TOTAL ESTIMATED SAVINGS FOR 60 DAY PERIOD
$60.37
TOTAL ESTIMATED SAVINGS/ ANNUM
TOTAL ESTIMATED SAVINGS/ ANNUM
$367.24
TOTAL ESTIMATED SAVINGS/ANNUM
TOTAL ESTIMATED SAVINGS/ANNUM
$923.52
$681.69
Please note this offer is available to you, your managers, your staff and their families for home use (not business). The results will vary for each address and may be higher or lower than the examples shown, but you can work out the difference before committing to the deal. Don't forget to fill in the store MGA ID when completing the form. If you don't know your ID please call MGA on 1800 888 479, if you are a staff member ask your manager or store owner.
Go to buyinggroup.originenergy.com.au/MGA www.mga.asn.au
16
INDUSTRY NEWS
NATIONAL
2017 Annual GALA Industry Ball On Friday 16 September, the GALA committee hosted another hugely successful event, the annual GALA Industry Ball. This year the Ball was held at the Plaza Ballroom at the Regent Theatre on Collins Street, Melbourne – a beautifully restored ballroom dating back to 1929. Over 400 independent grocery, liquor and hardware retailers, suppliers and industry stakeholders and Reach guests attended. MGA and the GALA Committee would like to thank our retiring patron Ian Morrice, CEO Metcash, for his years of support.
Steven Cain, Metcash GM ably represented Ian and handed the mantle to our incoming patron Fred Harrison, Ritchies CEO. We look forward to Fred’s patronage and support. Thank you to our event partners for the evening; Bulla Family Dairy and Edgemill Group and supporters Unilever, Lion, Dynamite Printing, Interhampers and Helping Hand. We would like to take this opportunity to thank Bianca Chatfield for her outstanding role as MC. The Sam Luderman Band were spectacular and Stephen Smith from Marshall White & Co Real Estate Brighton, raised plenty of funds in his excellent role as auctioneer.
Fred and Denise Harrison
Jacqui Hooper and Steve Sellars
Phil and Pauline Ibbotson
Hanna and Tony Leon
MC Bianca Chatfield and MGA President Rod Allen
October 2017 – Edition 7
Belinda and Grant Hinchcliffe
Christine and Colin Potter
17
INDUSTRY NEWS
All proceeds from the evening go to the Reach Foundation that continues to support the well-being of young people across Victoria and NSW by providing a safe space within their programs to have authentic conversations and build resilience to deal with life’s challenges. We were lucky enough to have Reach’s CEO Chris Naish, and facilitators Alishia and Blossom take to the stage to explain what it has meant to have the support of the industry behind the foundation and
why the work of Reach is, and continues to be, a need for Australian youth. As always the raffle, silent auction and the main auction were exceptionally well supported on the night. All proceeds from the evening go to the Reach Foundation to help conduct a variety of vital youth programs. Proceeds from the evening totalled $63,000.
Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell
Congratulations to all concerned, particularly the GALA Committee.
Craig Latham
MC Bianca Chatfield
Linda Hensgen and MGA President Rod Allen
Marcus and Michelle Aquilina with Julie Bonola and George Kovits
Tony Care and David Grey-Smith
Karen Melhem, Angelo Giannetta, Hadi Melhem
Top: Steven Smith, Angela Lindrea, Chris Naish, Chris Doig Bottom mid-right: Catherine Ross, Madeline Smith
Small Business Ombudsman meets with Associations MGA, together with a number of other small business associations, recently attended a national webinar and forum with Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell and colleague Craig Latham. This forum raised a number of very important matters effecting the sustainability of MGA members. MGA as a consequence will be a party to a number of sub committees including Workplace Relations Simplification, Energy and Sustainability, Access to Justice and Human Capital.
www.mga.asn.au
18
INDUSTRY NEWS
NAB lead on simpler small business contracts welcomed MGA is a member of the NAB Customer Advisory Council and as such has been involved in a number of workshops and discussions to simplify lending contracts for family enterprises and privately-owned businesses. NAB is also a very strong supporter of MGA and its members through MGA’s Corporate Membership program. The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed the introduction of shorter, plain English loan contracts by National Australia Bank for small business borrowers. The bank announced yesterday that more than 130,000 Australian business owners would benefit from a complete overhaul of its existing business standard loan form contract. Ombudsman Kate Carnell said this was a positive step. “My small business loans inquiry recommended this in December last year and called for implementation by July 2017,” Ms Carnell said.
“It followed unfair contract terms legislation coming into force last November. “The inquiry report recommended that where a small business had met loan payments and acted lawfully, the bank must not default a loan for any reason. “The report also said conditions must be removed where banks could unilaterally value existing security assets during the life of a loan; and not invoke financial covenants or catch-all ‘material adverse change’ clauses. “I applaud NAB for being first off the mark and urge other banks to follow. “It shouldn’t have taken so long, but we finally have a situation where banks will be treating small business clients as partners and share some of the risk. Currently the contractual relationship is one-sided and unfair.” The NAB statement says: “The changes come after NAB announced financial
Kate Carnell indicator covenants will no longer be used in most loan contracts for new and existing small business customers with total business lending of less than $3 million in April 2017.” However, Ms Carnell said it would be disappointing if changes such as these were not applied by all lenders to loans above $3 million. “The banks’ own independent expert adviser on the ABA Code of Banking Practice review, the Financial Ombudsman Service and the Government’s response to the Ramsay review on external dispute resolution have all identified a credit facility of at least $5 million is an appropriate threshold,” she said. “I’ll continue talking to the government, opposition, crossbench MPs and the banks about raising the threshold to $5 million.”
NATIONAL
Mental health strategic plan Following on from our “Creating a Mentally Healthy Small Business” article in the June edition of the Independent Retailer – we now have a strategic plan for you to follow to develop your own mental health business plan. Making time to plan for your mental health care is a valuable business investment. It’s important to plan to create a mentally healthy workplace if you employ staff too. Normalising discussions about mental health in the workplace helps to reduce stigma and creates a space where it’s safe to talk about, and address mental health challenges. People often work
October 2017 – Edition 7
closely together in small business so it’s important to create a workplace that respects the individual experiences.
What should you include in your plan: • Likely stressors in your business • Identify your mental health ‘ red flags’ • Develop your plan of action. Identify strategies to address your stress levels • Identify people and resources that can support you • A plan in case you are unable to work • Create a return to work plan
The next steps: Whether you are a sole trader or employ staff, use our mental health strategic plan and the two page template to identify and implement workplace practices that support you on your small business journey. Once you have completed the template, print it off, laminate it and keep it somewhere safe for easy reference. To view our full strategic plan and template, visit
http://mga.asn.au/news-ma/mentalhealth-strategic-plan
19
INDUSTRY NEWS NATIONAL
Effect of electricity price increases on the independent supermarket sector It is an understatement to say that rapidly rising energy costs are causing members considerable angst. Thanks to the input from many MGA members, we have been able to put forward an alarming factual insight to the Federal Minister for Energy and the Environment Hon Josh Frydenberg MP in Canberra in mid September. This information has also been forwarded to the ACCC. We are still awaiting the release of the ACCC report that will cover in detail the cause of rising costs of electricity along with suggested solutions to deliver more supply and subsequently cheaper energy bills. Here are some facts that we presented; • Electricity price increases have been severely debilitating – compromising the sustainability and viability of many MGA members businesses. • MGA members comprise small, medium and large sized businesses.
•
•
•
•
•
•
•
There are 2,500 branded independent supermarket outlets around Australia – MGA members Industry average % cost of electricity to sales turnover has risen from .7% to 1 – 1.2% Cost of electricity has increased by more than $100m in the past 8 months – members coming out of old contracts & entering into new. There is no cost pressure relief valve – such as containing costs or increasing shelf prices to bridge the gap. Margins are razor thin. Reducing wage costs is the only variable cost that can be affected – members will shed staff It is estimated members will shed just over 2,200 jobs to cope with the electricity price increases. This will occur over the next few months as the increased costs bite hard into the viability of businesses.
MGA TMA Committee with Minister Josh Frydenberg with Jos de Bruin MGA will keep members informed as to any progress. The situation is quite different from state to state but there is no doubt that the closing of coal fired electricity plants and the slow development of renewable energy solutions has caused a shortage of electricity supply. Members will read in the press and see in the media daily the enormous attention that is being given to finding cheaper energy solutions. We are hopeful there will be a solution that reduces energy costs significantly very soon.
MGA TMA committee – Canberra On 12 and 13 of September 2017, a delegation of MGA TMA committee members, who are all directors of the Timbers Merchants Association, before being absorbed by MGA, attended a national Timber and Wood Products Gala Dinner and awards evening in the Great Hall of Parliament House. This high-profile event attracted numerous members of parliament from all parties who each sat at one of the fifty tables of guests. Special guests and speakers for the
Jos de Bruin, MGA TMA’s Ron Caddy, ACCC Deputy Chair Michael Schaper, MGA TMA’s Peter Alexander and Hugh Turner
evening were the Prime Minister Hon Malcolm Turnbull and the Assistant Minister For Agriculture (Forestry) and Water Resources, Senator Anne Ruston. Whilst in Canberra the delegation also took the opportunity to meet with Environment Minister Hon Josh Frydenberg and Small Business Minister Michael McCormack, as well as with the Deputy Prime Minister Hon Barnaby Joyce.
Prime Minister Malcolm Turnbull
Jos de Bruin, MGA TMA’s Peter Alexander, Barnaby Joyce, MGA TMA’s Ron Caddy and Hugh Turner
www.mga.asn.au
20
INDUSTRY NEWS
Helping lower your cost of doing business eftpos is committed to helping keep Australian payments competitive and convenient. We can also help lower your cost of acceptance. To find out more email info@eftposaustralia.com.au
October 2017 – Edition 7
21
INDUSTRY NEWS
3 reasons why you need an E-commerce store The digital age has changed the face of Australian retail. Tech-savvy, time-poor consumers are increasingly looking for ways to meet their needs better, faster and cheaper. In retail, delivering the greatest product and service value is even more critical. Customers want a retailer who’s responsive, convenient and able to fulfil their shopping list week in, week out – whether that list contains one item or one hundred. E-commerce has levelled the playing field for retailers. Once the domain of major chains with large marketing budgets, an online store is now quick and easy to implement. Some systems, such as Merlin E-commerce, can also be integrated with your in-store POS system, helping you avoid double handling of product, pricing and promotional data and improving overall operational efficiency. Operational efficiency is an important driver of business success, however an online store also provides a range of competitive benefits for independent retailers. These include: 1. Staying competitive with major retailers An online store allows you to compete more easily with much bigger retailers, without the high overheads of a large physical store. There are around 1 trillion searches being conducted every day on Google. These searches are not driven by how big your store is or how much foot traffic it receives, but instead how relevant your offer is to customers. Compared with a physical store, your visibility to potential customers is far greater online, and can be enhanced even further using search engine advertising. 2. Meeting customer demand for convenience Today, consumers of all ages are accustomed to having a range of shopping options available at their fingertips. Having an online store eliminates many of the limitations of a physical store such as operating hours and locations. It helps show your customers you understand their needs by providing what they want, when and where they want it – making them more likely to buy from you. 3. Better understanding customer behaviour These days, customers do a lot of online research before they visit a bricks and mortar store. But much of this research, including time spent on your website, reading comments and reviews from other shoppers and comparing you with the competition can only be partly measured when you have just a physical store. Having an E-commerce store allows you to follow your customer’s journey all the way to checkout, but perhaps more
importantly to track and manage customers who choose items but don’t make a purchase – an exercise which can help you recover around 30% of otherwise lost sales. Known as cart abandonment, this scenario is very difficult to measure or address in a physical store. With online grocery sales predicted to climb 20% in the next 10 years and customers increasingly checking you out online before visiting the physical store, retailers can no longer afford not to offer customers the option of an online store. Advances in e-commerce technology mean that this previously complex and costly process is now within reach of all retailers. It provides not only an effective way to build your customer base and complement your bricks and mortar store, but an efficient tool for positioning your business as a solution provider, which encourages customer loyalty and long-term revenue growth. If change and meeting your customers’ needs is a constant, doing nothing isn’t an option. Be sure you are partnering with a company with the depth and breadth of expertise you require. Particularly one who can help you navigate end-to-end managed services, cloud, mobile and paperless retail technology. GPK Retail consultant, Cordell Quaine, is available for a no obligation discussion on how GPK can help you reduce operational costs, manage your IT footprint more effectively and create an exceptional experience for your customers.
Phone 1300 000 475 or email info@gpkretail.com.au for more information.
www.mga.asn.au
22
October 2017 – Edition 7
23
INDUSTRY NEWS NATIONAL
Increase in alcohol consumption New IBISWorld research has shown that the amount of alcohol consumed per person in Australia each year has increased for the first time in nine years, bucking a trend that has seen a steady decrease since 2006-07.
Apparent Alcohol Consumption Per Capita
The amount of pure alcohol consumed by each Australian over 15 years of age has increased from 9.52 litres in 2014-15 to 9.70 litres in 2015-16, said Mr James Thomson, IBISWorld Senior Industry Analyst. IBISWorld research shows per capita alcohol consumption is expected to reach 9.72 litres in 2017-18. It’s an interesting result as we are seeing lower consumption rates among young adults, those aged 15-24. Burgeoning beer IBISWorld research found beer consumption was the driving force behind the recent rise in per capita alcohol consumption. Beer consumption is expected to rise from 3.76 litres per capita in 2014-15 to 3.86 litres in 2017-18. IBISWorld attributes this growth to the rising popularity of craft beer, commented Mr Thomson. The Australian craft beer production industry is expected to grow at an annualised 9.7% over the five years through 201718, outperforming the beer manufacturing industry, which is expected to grow at an annualised 2.1% over the same period. Craft beer’s popularity has been driven by consumers seeking variety and quality. An increasing number of small-scale craft breweries are opening to take advantage of changing consumer tastes, contributing to the expanding range of beers available in liquor retailers. Consumption of low-strength beer remained unchanged in 2015-16, while mid- and full-strength beer consumption grew, said Mr Thomson. Cider’s success Cider’s popularity has increased strongly, with per capita consumption expected to grow at an annualised 13.3% over the five years through 2017-18. However, this segment still accounts for a small portion of total alcohol consumption. Cider has grown in popularity due to its image as a refreshing alternative to beer, aided by savvy marketing and promotion. Conversely, per capita spirits and RTD consumption has declined over the past five years, said Mr Thomson. Per capita wine consumption is expected to decline marginally over the five years through 2017-18. According to IBISWorld research, the declining popularity of fortified wines, particularly among younger consumers, has contributed to this decline. Wine consumption as a share of total per capita alcohol consumption has increased over the past decade, and is expected to represent 37.7% of total per capita consumption in 2017-18.
Alcohol consumption by type in litres per capita
2014 2015 2016 2017 2018
Beer
Wine
4.01 3.76 3.87 3.88 3.86
3.64 3.66 3.64 3.64 3.66
Spirits + RTDs 1.84 1.79 1.83 1.82 1.79
Cider
Total
0.27 0.31 0.36 0.39 0.41
9.76 9.52 9.70 9.73 9.72
Despite a decline in per capita wine consumption in Australia over the past five years, IBISWorld research highlights the growing popularity of Australian wines abroad. Strong export growth, particularly to Asia, is expected to drive the wine production industry’s performance over the next five years, said Mr Thomson. Alcohol’s future fortunes IBISWorld’s research found rising health consciousness, increased taxation of alcohol and anti-alcohol advocacy have contributed to a long-term decline in per capita alcohol consumption over the past decade – and that these factors will continue in the future. Despite a long-term decline in alcohol consumption, a rising consumer preference for quality over quantity has contributed to consumers spending more on alcohol. Many participants in the sector have enjoyed revenue growth, tapping into the trend towards the ‘premiumisation’ of alcoholic beverages. Consumers are increasingly seeking artisanal and high-quality beverages, while also looking for authentic experiences, such as visiting small breweries, distilleries and cellar doors. This trend has contributed to strong revenue growth for many small-scale alcohol producers, such as craft breweries and boutique wineries, said Mr Thomson. IBISWorld expects per capita alcohol consumption to continue its long-term trend and decline over the next five years. Increasing health consciousness and lower consumption rates among younger consumers are expected to contribute to this decline, concluded Mr Thomson. Source: IBISWorld
www.mga.asn.au
SIMPLE, SECURE, SMART MANAGED NETWORK SECURITY SOLUTION METCASH ALLIANCE PARTNERS OFFERS A MANAGED NETWORK SECURITY SOLUTION ‘CISCO MERAKI’
SIMPLE
SECURE
SMART
OFFERS CLOUD BASED MANAGED SERVICES
LEADING SOLUTION TO PROTECT YOUR BUSINESS
INTUITIVE, USER FRIENDLY, REPORTING, DASHBOARDS
Cisco Meraki key Features & Benefits Features
Benefits
Virus Protection
Reduces the risk to your business from virus attacks like Cryptolocker and Malware with 24/7 monitoring
Managed Services
All technical details, reporting and device management is managed remotely so you can get on with running your business knowing you have protection
PCI Compliance
PCI-DSS 1 certified so cardholder data can safely be exchanged with service providers, banks and other organisations preventing fraud and data breaches from occurring
Wi- Fi Access Point availability
Option to get detailed reporting on analytics/trends/foot traffic and other customer information to assist in Marketing campaigns and Social Media interaction with your customers
Pricing
79
$
per month
^
Basic set up is $79 per month and one off configuration fee from $199 Addition of Wi-Fi Access Point available at extra $39 each per month.
If you would like to know more, call the Metcash Alliance Partners team on 1300 138 220 or email alliancepartners@metcash.com. *Meraki security device is configured for your network and then delivered to your store. Configuration/Installation is a guided process via phone with you and / or your IT person.’ ^Total minimum cost over 36 month term from $3,043 plus GST. meraki_17082017 1300 138 220 alliancepartners@metcash.com www.metcashalliancepartners.com
INDUSTRY NEWS
25
SOUTH AUSTRALIA
Foodland South Australia leads supermarket satisfaction On behalf of all members around Australia, MGA congratulates the entire Foodland team and network of Foodland stores in South Australia for the outstanding result in topping the charts with its consumers, again!
main shoppers spend 70.9% with them, compared to Coles main shoppers who spend 67.4% with Coles. Foodland shoppers are narrowly ahead with 71.0% spent at Foodland. Aldi is well behind the other four supermarkets, with only a 55.5% share of their customers spend.
New research from Roy Morgan shows that customer satisfaction with Foodland in August 2017 was 94.4%, making it the top performer among the big five supermarkets. Not only was Foodland the top scorer but it was also one of only two supermarkets to increase satisfaction over the last year, with an increase of 0.6% points.
Over the last 12 months, IGA showed the biggest improvement in the share of their customers spend (up 4.7% points), followed by Coles (up 2.9% points) and Foodland (up 1.8% points). Those showing declines were Aldi down 3.1% points and Woolworths (down 0.5% points).
These are the latest findings from Roy Morgan’s ‘Retail Satisfaction ReportSupermarkets’ which is based on over 12,000 interviews per annum with main grocery buyers.
Supermarket satisfaction differs by product areas In order to understand more about what drives overall supermarket satisfaction, it is important to measure satisfaction levels within the various supermarket sections or major product areas.
Foodland has higher satisfaction than the big two Foodland with 94.4% satisfaction and Aldi on 92.3%, lead Woolworths (90.0%) and Coles (88.4%). IGA was further behind on 84.7%. Foodland ahead of Woolworths which is ahead of Coles on customer loyalty Of the two major supermarkets, Woolworths
Foodland is the overall satisfaction leader and scores the highest satisfaction of the big five for ‘dairy’, ’delicatessen’ ,’fresh fruits and vegetables’ and ‘fresh seafood’. Aldi leads in satisfaction with ‘packaged groceries’, while Coles and Woolworths lead jointly in satisfaction with ‘bread’. Norman Morris, Industry Communications
Director, Roy Morgan Research says: “With increasingly tough competition among supermarkets, it is important to keep track of what customers think in terms of relative satisfaction between the major brands. This research has shown that not only is overall satisfaction important but it is necessary to understand how the different sections or departments are performing due to their potential impact on overall satisfaction and customer loyalty. "There appears to be plenty of scope to increase supermarket sales if customer loyalty can be improved. Currently the best performers in the market are only achieving around 70% of their main customers total supermarket spend, with the lowest achieving just over half. Increasing the share of customer spend for the major supermarkets has remained a considerable challenge for some time. This is evident by the fact that over the last five years, all of the top five supermarkets have seen a decline in the share of their customers spend, despite various attempts at loyalty programs”. Source: Roy Morgan Research
MGA’s Legal and HR Team MGA’s Legal and HR Team, led by Marie Brown and including Nikola Prestia and Belinda Imbriano, attend to a myriad of members’ employment law and workplace relations matters on a daily basis. These enquiries comprise of wage enquiries, a range of staff issues, numerous store policies, the renewal of EBA’s and the writing of employment contracts just to name a few. Simply contact MGA’s Legal and HR Team on 1800 888 479.
www.mga.asn.au
TM
Monde Nissin
Top 6 Cream brands % Growth Actual YA Independents 6.0 1.7 1.0 -4.0 -9.0
-6.6
-6.5
-7.7
-6.3
-8.4 -14.0 -19.0 -24.0
-19.3
10.0 5.0
5.2 0.5
0.0 -5.0 -10.0
-6.6
-4.0
-9.0
-15.0 -20.0 -25.0
-6.6
-6.8
-19.6
-10.6
28
INDUSTRY NEWS
How to cut through the complexity of asset finance By Rod Berryman Business Development Manager, Fingo Finance The role of every business owner and CFO is to achieve the best financial outcome on the best terms in all aspects of their respective businesses. That’s a big ask, particularly when your specific area of expertise may have little in common with the skills required to know the nuances of the contract you’re negotiating or the outcome you’re seeking to achieve. One of the most common and frequent areas where mistakes are made is the way in which banking facilities and finance solutions are applied in your business. You could be the greatest independent retailers / small-medium business owners on Earth, but it doesn’t necessarily follow that you have a deep and confident knowledge of the different mainstream and bespoke means by which your competitors fund their businesses and the cost, taxation and cashflow benefits they achieve by getting it right. But that’s easier said than done, especially when banks, brokers and lenders often look and sound the same. They all tell you they’re the best at what they do so how do you cut through all the sales spiel and get to the facts? First of all, you need to recognise that asset finance isn’t just about borrowing money. It’s a specialist area of lending that is about equipping businesses with the plant, machinery, infrastructure and transport fleet to increase throughput capacity, boost self-sufficiency, grow, employ and prosper.
and its intended purpose. It’s critical for them to know this so they can write up a worthy credit submission and have it approved on the best terms for which your business will qualify. Don’t give them your ideas – ask for theirs. Instead of asking for a specific term and balloon, ask what they would suggest and why. These are simple questions but they cut through the competence barrier with relative ease. In a recent article for The Advisor magazine, Commercial Asset Finance Brokers Association of Australia President and Quantum Business Finance director, David Gandolfo said: “Our members can do plant, machinery, equipment, infrastructure, they can import machinery in from overseas, they can organise lines of credit, they can do transaction in foreign currencies, they can do progress payments in different countries as well as here, they can do entire projects. And all that… certainly requires expertise, not just in putting the loan submissions together, but also putting together the solution for the end customer.” Put limits in place. Have an overall financing strategy and talk to your broker about putting a couple of key facilities in place. This is an area where brokers have a huge market advantage over business bankers, not just because of their depth of experience and career longevity, but because they can select the best deal from a range of lenders and not just your own bank. By having limits and master agreements you’ll save on costs and administration and have an uninterrupted source of funding for that brilliant opportunity you need to jump on quickly.
fund your machinery. Even the finance type (say fully maintained operating lease with fleet usage and FBT reporting) is likely to be different to the finance lease or chattel mortgage you utilise to fund your machinery purchase. When you purchase equipment from an overseas supplier, most banks can’t seamlessly combine their trade and asset finance products in an end-to-end solution, but experienced brokers can arrange for deposits, partial payments and duties to be paid as required and in any major currency, without utilising your overdraft or relying on real estate security. This is referred to as a Letter of Credit/Lease in Escrow facility and fixed repayments don’t start until the equipment is delivered and usually commissioned. In summary, follow these six simple tips: • Know what solutions are out there – or talk to someone who does • Get the right type of facility for each requirement • Have an overall strategy, not an ad-hoc bunch of loans • Achieve the above by working with the right provider for each requirement • Your bank is an option, not always a solution • Make sure your accountant and your broker are talking to each other That last point above is critical. Your accountant has an overall strategic plan for your business and your broker has specific products at great rates and terms that will fit with your accountant’s plan, but neither can achieve the best outcome unless they put their plans and expertise together.
So, you should look for experience. Don’t just ask for an interest rate – that’s the lowest common denominator. Ask the prospective banker or broker if they can describe the equipment you’re buying
October 2017 – Edition 7
Different lenders have different credit requirements and varying appetites for different asset classes. So, the lender with whom you fund your vehicle fleet is unlikely to be the one with whom you
For more information, visit: www.fingofinance.com.au
29
INDUSTRY NEWS QUEENSLAND
MGAQ committee The MGAQ committee, who travelled from all parts of QLD, met in Brisbane on 7th September to discuss a number of matters of key importance. After the long and very resource hungry battle to stop any further trading hours amendments with the Qld Government together with all other MPs to support the introduction of a 5-year moratorium, it was time to pay attention to other issues including; plastic bag bans, container deposit legislation, retail tobacco licencing, packaged liquor, planning and zoning issues and so on. The committee met with Mark West, a director for the QLD Department of Health who gave a very good overview of the current regulatory impact review of the proposed retail tobacco licensing initiative and applauded the MGAQ committee for sharing its insights through the consultation process which will go on until the end of 2017. It seems the current government has no intentions of introducing a retail tobacco license in this term of government. LNP Shadow Treasurer and Shadow Minister for Small Business, Scott Emerson, also met with the committee for a meet and greet. Scott discussed policy matters of importance as well as
L-R: Craig Careswell (Friendly Grocer), Wayne Mason (FoodWorks), Mark Meszaros (Drakes), Debbie Smith (FoodWorks), Shadow Treasurer and Small Business Minister Scott Emerson, Marie Brown (MGA), Terry Slaughter and Peter Piconne (IGA), Tim Manic (Metcash) the forthcoming election to be held sometime soon. The MGAQ committee thanked the LNP for strongly supporting our sector and the current government’s Trading Hours Amendment Bill in the Parliament which included a 5 year moratorium, increased staff levels for exempt stores and the preservation of 21 Sunday trading areas in regional Queensland.
plant & equipment
cashflow & business finance
automotive & car brokeing
employee benefits
TM
finance for things that go.
finance for things that go Rod Berryman: 0419 375 834 | 1300 134 646 www.fingofinance.com.au/MGA
www.mga.asn.au
30
INDUSTRY NEWS
What small businesses need from our finance and banking sector Small business lending conditions • We need an equal relationship between the banks and small and medium-sized businesses that borrow from them. • The Reserve Bank of Australia finds that smaller businesses pay more, on average, for debt than both households and larger businesses. Therefore we need banks to work with small businesses to assist small businesses lending conditions.
We provide meaningful business advice We understand your business as we are specialists in your industry Phil Ibbotson and the team at I + M have looked after all sizes of retail stores all around Australia for in excess of 30 years. 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? • Are you paying too much in electricity? • Does your cleaning compare favourably for your square meterage? • Making a profit but don’t seem to have any cash? 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, Walter + Amanda. Phone: (03) 9824 5533 www.imaccountants.com.au
October 2017 – Edition 7
Access to capital for small businesses • Small businesses access to finance should be easier. While restricting access to capital is a legitimate response from lenders to address uncertainty, some worthwhile opportunities may not be funded. This can be achieved if banks can mitigate higher interest rates and unmet demand for loans. • Potentially profitable investments that do not proceed because borrowers lack collateral or strong relationships or their projects cannot otherwise be accommodated in lenders’ business models; or perhaps because regulatory settings work against them. If this is the case, it is worthwhile exploring cost-effective measures that could improve access to capital for Small Businesses. Overcoming a lack of information • Our finance and banking system can improve the information provided to small businesses. There are a number of approaches to improving the information available to potential borrowers and lenders that are being used and could potentially be extended. • For example, lenders provide business training to applicants for some types of loans, going so far as to make the training a prerequisite in some cases. • The potential interest revenues from relatively small loans of smaller business do not justify the same ongoing relationship management and detailed credit risk assessments that businesses with larger loans receive. As a result lenders adjust for this additional risk by charging higher interest rates. We want to see banks move away from this approach and work with small businesses to help them grow their business. • Our banking and finance sector never had so much attention like in the past 12 months – what does the future hold? • Banks have agreed to specific changes outlined in the Australian Securities and Investments Commission and the Australian Small Business and Family Enterprise Ombudsman to eliminate unfair terms from their contracts. • We would hope to see that the big 4 banks continue to demonstrate industry leadership in embarking best practice in our banking and finance sector. • In the future banks will hopefully increase the coverage to small business loan facilities from $3 million to $5 million.
31
LEGAL AND HR
LEGAL AND HR When can an employer question medical certificates? The Fair Work Act 2009 (Cth) permits an employer to request an employee who is taking leave because of a personal illness or injury to provide evidence of that illness or injury that would satisfy a reasonable person. Medical certificates are widely accepted as sufficient evidence. Members often call MGA regarding medical certificates that they believe may not be genuine or that allow employees significant time off work when they in fact may be fit for work. In order to be accepted by an employer, medical certificates should contain the following information: 1. The name and address of the medical practitioner issuing the certificate; 2. The name of the patient; 3. The date on which the examination took place; 4. The date on which the certificate was issued; 5. The date(s) on which the patient is or was unfit for work; and 6. Any additional information which may assist the patient in obtaining the appropriate leave. Medical certificates do not need to contain a diagnosis or details about the employee’s condition, as employees have the right to privacy. However most importantly, medical certificates must state that the employee is or was unfit for work during the nominated period. If it is not confirmed that the employee was unfit for work, the employer may not be required to pay the employee sick leave. The Australian Medical Association’s view is that medical certificates are legal documents which should not be questioned by employers. However, this does not mean that employers may never question the validity of a medical certificate.
Employers are able to contact the medical practitioner and ask them to confirm the contents of the medical certificate if they have any concerns that it may be fraudulent or misconceived. If it is proven that the medical certificate is fraudulent, the employer may be able to discipline or terminate an employee, however these situations must be treated very carefully as the cases below highlight. Recent cases In the case of Walker v Bowtie Removals and Storage Pty Ltd [2012] FWA 2851, the employee chose to take sick leave rather than applying for annual leave, in order to travel interstate for a family event. The employee obtained a medical certificate claiming her leg was infected in order to take sick leave. The event was subsequently cancelled, but the employee decided to travel anyway. The employer suspected the employee was going on a holiday after she was seen printing airline tickets at the work printer. The employer began IT investigations that showed the employee had deleted all emails about the holiday on her work computer. The Commissioner concluded that it was fair for the employer to dismiss the employee without notice or warning in circumstances where it was believed on reasonable grounds “going fundamentally to good faith, fidelity and trust” that the employee’s conduct was sufficiently serious to justify immediate dismissal. In 2012, the Fair Work Commission (previously Fair Work Australia) (“FWC”) dismissed an employee’s unfair dismissal application when it was found that the employee had provided her employer with a fraudulent medical certificate. As the doctor’s provider number was absent from the certificate, the employer contacted the doctor’s surgery. The doctor confirmed that he had not provided the medical certificate. After an investigation,
the employee was terminated for serious misconduct on the basis that her conduct was dishonest and fraudulent both in creating a false medical certificate and continually denying that fact during the subsequent investigation. The employer was found to be justified in its decision to terminate the employee. However, irregularities in a medical certificate do not always justify dismissal. In another unfair dismissal case before the FWC, it was found that an employee who had amended her own medical certificate at the direction of her doctor’s receptionist had been unfairly dismissed. The employer based the termination on allegations of fraud, illegal and unethical behaviour and corruption. The FWC reinstated the employee and held that the termination was manifestly unjust because the employee’s alteration of the medical certificate was not corrupt, fraudulent or illegal conduct. It is clear from the cases that employers can dispute medical certificates in certain circumstances, however employers should act cautiously when questioning a medical certificate. Although medical certificates are generally to be taken as evidence of an employee’s incapacity to work, the above cases demonstrate that the Courts and FWC are prepared to acknowledge that not all personal leave is taken in circumstances where the employee’s leave is for genuine reasons. Employers can therefore challenge a medical certificate where there is reasonable cause to believe that the employee is acting in a manner which exceeds or abuses their right to personal leave.
www.mga.asn.au
33
LEGAL AND HR
Salaries under the General Retail Industry Award 2010: Is your business at risk of an underpayment claim? An annualised salary is an all-inclusive yearly wage, generally paid in weekly or fortnightly instalments. The payment of annualised salaries can relieve employers of the obligation to pay things like penalties and overtime, provided that the salary paid is sufficient to cover what the employee would have received under the relevant award or agreement for the work performed. Employers who are covered by the General Retail Industry Award 2010 (“GRA”) and pay annualised salaries need to be certain that they properly compensate employees for all
entitlements, allowances, penalties and loadings provided for in the GRA. This includes entitlements such as overtime or weekend penalty rates, laundry allowance and annual leave loading. Failure to ensure salary arrangements are compliant could result in an underpayment of wages. It is essential that annualised salary be accurately documented and calculated to include all entitlements to ensure compliance. Estimating an employee’s entitlement is not enough and proper calculations should be completed. All employees on annualised salaries should
also have a contract of employment in writing. Failure to ensure that the GRA has been adequately complied with could result in an employer being required to back-pay unpaid overtime and other entitlements, irrespective of the fact that the employee has been paid an annual salary intended to absorb those entitlements. MGA is more than willing to assist members in calculating and implementing salary arrangements. For further information please ontact MGA’s Legal & HR Team on 03 9824 4111 (option 1).
Patriot Campers – on the road to success Queensland camper-trailer manufacturer Patriot Campers had its genesis on a camping trip to Stradbroke Island when founders Justin and Sarah Montesalvo sketched their dream trailer design in the sand. “We had bought a couple of camper trailers, the best on the market at the time, but they were too long and too heavy to take off road easily and they just didn’t suit what we wanted to do. So we got talking about what we’d do differently,” Justin says. Back home, he spent the next three months turning their wish list into a blueprint for a compact, modular, towanywhere trailer with all the comforts and conveniences of a ‘big rig’. Built during downtime at his Brisbane sheet metal fabrication plant, the prototype was ready to be put through its paces by July 2014, on another Stradbroke trip. Building a prototype was one thing, but they knew that to go into even limited production would require a dedicated factory. But they found it difficult to secure funding to make it happen, until they spoke to NAB. The difference they found in working with NAB was that
their banker was dedicated to finding a solution that would work for them. Their banker had the industry expertise, he really understood manufacturing and he took the time to understand their idea, their business plan and their vision. With a tailored loan for Patriot Campers in place, the Montesalvos never looked back. Soon after, Patriot Campers was on the road to success: influential industry awards came pouring in while sales started taking off. Planning what’s next Justin says the advice he receives from NAB is critical to his business planning. “Our NAB Business banker can help me not only with banking matters but can also put me in touch with specialists from across the bank to help with our overseas expansion plans”. To find out how NAB can back your business, visit nab.com. au/backingbusiness to get in touch with a NAB Business banker today.
www.mga.asn.au
34
LEGAL AND HR
Making sure employees are paid for all time worked Members are reminded that employees are entitled to be paid for all the time that they are actually engaged in performing work in the store. This includes the obvious tasks such as serving customers, stacking shelves or moving goods in store. There is often some confusion about when payment actually commences for a shift or when employees are required to take monies to a collection point before finishing work or they need to count a float at the cash register. In order to ensure that you are not going to be subject to a wage claim for time spent in the store after “clocking on” or “clocking off” it is important to make it clear to staff what their obligations are for keeping to their rostered times.
It is suggested that members advise their employees of the basic rules that must be followed, which may well conform to your clocking on and off system. The rules should include the following: • An employee should clock on and allow 5 minutes to be at their work station in time to commence a shift • Similarly an employee should be allowed 5 minutes at the completion of the shift before clocking off so as to ensure they will be paid for their rostered time. • If an employee works in excess of the rostered time then a variation to the rostered time may be appropriate to ensure that the employee is paid for any excess time worked.
•
If an employee is required to count a float or engage in any form of extra “work” this should be calculated into the shift and time allowed to ensure that payment is made.
The Fair Work Ombudsman has recently targeted a number of retailers for not paying employees for the times they are actually “working.” However, it is also important to ensure that members do not have employees “clocking on” and then spending time chatting to friends or sitting in the tea room before commencing a shift. For further information please contact MGA’s Legal & HR Team on 03 9824 4111 (option 1).
FRESH THINKING HIGH EFFICIENCY & COMPLIANCE
Rigorously tested in independent certified laboratories.
HIGH QUALITY
Products ensuring longevity performance.
AFFORDABILITY
Excellent value for money.
EUROPEAN DESIGN & MANUFACTURE
Customised for the Australian market and rugged conditions.
K REFRIGERATION GROUP AUSTRALIA PTY LTD
October 2017 – Edition 7
W krefrigeration.com E salesaus@krefgroup.com T 1 300 225 665
LIQUOR NEWS
35
LIQUOR NEWS Strong adjusted numbers for the liquor sector The Australian Bureau of Statistics latest Australian Retail Trade data, shows overall retail turnover in July 2017 was 0.0 percent seasonally adjusted, following a 0.2 percent rise in June. While many sectors struggled in July, showing negative growth, liquor retailing saw 2 percent seasonally adjusted growth, one of the strongest performances of any retail sector. In seasonally adjusted terms, there were falls in household goods retailing (-1.7 percent), department stores (-2.8 percent) and clothing, footwear
and personal accessory retailing (-0.2 percent). There were rises in food retailing (0.7 percent), other retailing (1.3 per cent), and cafes, restaurants and takeaway food services (0.2 percent) in July 2017. According to Ben James, Director of Quarterly Economy Wide surveys for the ABS. “The falls in household goods retailing and department stores come after strong rises during the June quarter,” said Ben. In seasonally adjusted terms, there
were falls in New South Wales (-0.4 percent), South Australia (-0.8 percent), Tasmania (-0.9 percent) and the Northern Territory (-0.1 percent). There were rises in Victoria (0.4 percent), Western Australia (0.6 percent), Queensland (0.2 per cent) and the Australian Capital Territory (0.1 percent). The trend estimate for Australian retail turnover rose 0.3 percent in July 2017 following a 0.4 percent rise in June 2017. Compared to July 2016, the trend estimate rose 3.5 percent. Online retail turnover contributed 4.3 percent to total retail turnover in original terms.
CHARCOAL MELLOWED. IT’S WHAT MAKES JACK, JACK.
NEVER HAVE TOO MUCH OF A GOOD THING. DRINK RESPONSIBLY.
JACK DANIEL’S DOUBLE JACK & COLA 6.9% ABV (13.8 PROOF). JACK DANIEL’S AND OLD NO.7 BRAND ARE REGISTERED TRADEMARKS. ©2017 JACK DANIEL’S. BOTTLED UNDER LICENCE IN AUSTRALIA FROM LOCAL AND IMPORTED INGREDIENTS FOR BROWN–FORMAN AUSTRALIA PTY. LIMITED, LEVEL 6, 280 ELIZABETH STREET, SURRY HILLS, NSW 2010. JACKDANIELS.COM
www.mga.asn.au
36
LIQUOR NEWS
Meeting customers’ needs crucial in staying ahead of the game Three years after featuring in the IR magazine, MGA again caught up with Albert DiPietro and son Daniel, owners of Nillumbick Cellars in the Melbourne suburb of Diamond Creek to ask them about the recent refurbishment and direction of their liquor business. Albert when your store was last featured you said that ‘to stay ahead of the competition you to continually change your retail offer’, and after three years you have doubled the size your Diamond Creek store and added two new stores. Tell me about the decision that drove that and the resulting outcome. The decision to invest heavily in the larger stock offerings and the two new retail sites was a result of consumer demand and our desire to give our customers a greater offering. We already had an extensive product selection, however we recognised that our customer base and purchasing trends had been shifting, and with that came the demand for even more unique offerings. Our customers are health conscious and are looking to invest in better products and are less quantity focused. The result in investing and broadening our offer has been very positive. Customers love
Albert and Daniel DiPietro
October 2017 – Edition 7
the environment we have created and regularly express delight in finding new and exciting products to try or products that they enjoy that are not stocked by other retailers.
decision making, and because we have such an extensive range they are also taking advice from our team of specialists.
The changes we have made have resulted in increased visitation and patronage, along with a stronger bond between staff and customers. We have more conversation, more shared experiences and we are able to gain incredible insight in to our clients and what they are seeking. Our stores offer a real community meeting place that we enjoy sharing.
Being able to offer such a large selection of premium products to our customer’s means we are at the front of their minds when they are seeking that special bottle, knowing that they will always be able to get their preferred product due to the extensive range and high level of stock we hold. It makes us a destination for them, a one stop shop. The environment we have created also pays respect to the quality of the products we offer.
How has the increased offering of premium wine, spirit and beer improved your sales? During key times of the year such as Christmas, Easter, Mother’s Day and Father’s Day we have seen exponential growth year on year for the premium products. Our customers are investing not just more money but more time in
As you are in a premium wine region, how important is it to range local Yarra Valley wines? We love the local Yarra Valley and broader regions offerings. We believe it’s fundamental to support the region and it builds customers knowledge of the vast number of producers just minutes away from us. We highlight these producers
LIQUOR NEWS
through a range of activities including ‘behind the bar’ tastings each fortnight, and ‘meet the winemaker’ monthly experiences. Our customers absolutely love the opportunities we provide and the feedback from the producers has been very enthusiastic and supportive. We give customers access to the creators behind the labels, and the results have been fantastic with sustained return purchase for their products following these events. Has your online offer helped improve your walk in retail shop sales? Definitely, our online offering is a significant arm to the business and is not without its own challenges with fierce market competition; however we are committed and focused on investing in organic and sustained growth and build long standing relationships with our clients. We treat our online customers like we do our shop front retail customers and have been investing heavily in print media advertising which is proving
37
positive in assisting both foot and online consumer traffic.
the service and experience we provide our customers.
Everyone talks about the importance of customer service, how much training do you give your staff to deliver such an important service? Knowing your customers is the key, we pride ourselves on being able to provide advice and have a conversation with our customers beyond just the weather. We understand and appreciate the energy required to build those relationships and cannot take them for granted.
What then would you say are the key elements required to drive a successful independent business? The key elements required to drive a successful business in this ultracompetitive liquor industry are customer service, a unique and broad product offering and competitive pricing. Our team’s customer service and knowledge complement our offering, giving customer’s confidence to try new products. Having an online offer also helps our bricks and mortar stores in Balwyn North, Rosanna and Diamond Creek. Whilst it does require a much greater investment in stock holding we have flexibility as our Nillumbick Cellars site has a warehousing facility enabling us to purchase in bulk, combined with support from producers and suppliers we have been able to solidify our position in the market.
We are also fortunate enough to have a great team who treat this business like it’s their own, using their skills and initiative to develop strategies and create events that our customers love. It’s often said good staff are hard to find and that is very true, but we are blessed with the team we have across our stores. Being an independent family business also adds another layer of character and warmth to
Daniel DiPietro
www.mga.asn.au
38
LIQUOR NEWS + INDUSTRY NEWS
NSW Container Deposit Scheme from 1 December 2017 Whether you agree or disagree with the introduction of Container Deposit Schemes (CDS) the fact remains that NSW will follow South Australia and the Northern Territory and have a CDS in place from the 1 December 2017. NSW will be followed by the ACT, Queensland and Western Australia who plan to have their CDS operational by 1 July 2018, leaving Victoria as the only mainland state not to have a CDS. The introduction of the CDS has created a depth of uncertainty amongst retailers, in particular the estimated increased costs required to fund the operation of the CDS of up to $0.22 per unit which includes the 10 cent deposit or $5.28 per case on all eligible products. These increased costs will start to be passed on to consumers from 1 November as suppliers begin to increase their prices to build the deposit refund float. A serious unintended consequence of the NSW CDS being introduced ahead of Queensland and the ACT will be the cross border trading that will occur in the border regions of Queensland and the ACT and in the longer term Victoria, as consumers take advantage of the price variations. In NSW, MGA has been communicating strongly with the office of the NSW Minister of the Environment Hon Gabriele Upton to delay the launch date until 1 July 2018 in line with Queensland and the ACT. Close consultation has also taken place with NSW Small Business Commissioner Robyn Hobbs, as well as major suppliers on how the price discrepancies between NSW and Victoria can be mitigated. In Victoria, MGA have had several meetings with the Minister for the
October 2017 – Edition 7
Environment, Hon Lily Ambrosia, Chief of Staff Ian Porter and Advisor Emily Garnett on the cross border trading issue and have been advised that the Victorian governments’ position is to not introduce a Container Deposit Scheme. Speaking with our NSW border retailers they believe that if the Victorian government continues to hold their position of not introducing a CDS then only a National Pricing Policy by suppliers will mitigate cross border sales and stop their businesses from being decimated. MGA has been assisting with and pressing the NSW government, the EPA and the Scheme Coordinator, ‘Exchange for Change’ to finalise and urgently implement a media campaign and retailer point of sales material that will educate the consumer on the mechanics of the CDS, and the impact it will have on retail prices. As part of the Scheme ‘TOMRA Cleanaway’ have been appointed as the network operator to establish 500 “across the counter” collection points and co-partner with retailers to position 800 Reverse Vending Machines. Retailers can apply to be allocated a RVM by visiting the website tomra.com/en/collection/ reverse-vending/tomra-technology/ and completing the ‘Expression of Interest’ form. MGA has been in consultation with the ACCC to ensure that the allocation procedure of the RVMs is fair and equitable, by not favouring big business over small business. Clearly the introduction of a Container
Deposit Scheme in NSW without having a longer consultation period with industry and other state and territory governments on the impacts of not having a common implementation date will have a serious impact affecting the viability of NSW members’ businesses. The cost to businesses and communities as a result of cross border trading on the southern NSW towns bordering Victoria has created for those retailers a grave position of uncertainty for their business future. MGA has planned further meetings with relevant government officials to continue strong lobbying to minimise the impact of cross border trading to MGA members. CDS eligible containers All beverage containers between 150ml and 3 litres in volume except for the following; • 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 and spirits • Casks for wine and casks for water – 1 litre or more • Sachets for wine 250ml or more • Containers for cordials, concentrated fruit/vegetable juices • Registered health tonics NSW CDS timeline • February 2015 – the then Premier of NSW Mike Baird announced that his re-elected Liberal Government would introduce a Container Deposit Scheme (CDS).
LIQUOR NEWS
•
•
•
•
• •
May 2016 – the NSW government announced that the CDS would be operational as at 1 July 2017 August – September 2016 – Consultation took place on the draft Bill and Regulatory Framework Discussion Paper, where over 130 submissions were received and considered by the government. October 2016 – the Waste and Resource Recovery Amendment (CDS) Act was passed by the NSW government. November – December 2016 – Expressions of interest for the Scheme Coordinator and Network Operator were called. January – February 2017 – the Tender Bidding Process took place February 2017 – Minister for the Environment Gabriella Upton announces that after requests by environment groups and industry bodies the CDS roll out will be extended by five months to 1 December 2017.
•
July 2017 – NSW government announces Exchange for Change as Scheme Coordinator and TOMRACleanaway as Network Operator.
Queensland/ACT/WA CDS timeline • July 2016 – Both States and Territory announced that they would follow South Australia, Northern Territory and NSW and have a Container Deposit Scheme in place by 1 July 2018.
39
If you would like more information on the Container Deposit Scheme you can visit these webpages; NSW: http://www.epa. nsw.gov.au/your-environment/recyclingand-reuse/return-and-earn/how-returnand-earn-will-work QLD: www.ehp.qld. gov.au/waste/ ACT: www.tccs.act.gov.au/ recycling-and-waste/resource/containerdeposit-scheme WA: www.der.wa.gov. au/our-work/programs/390-wa-containerdeposit-scheme; or you can contact MGA on 1800 888 479.
From the makers over to the tasters Like most of us, Julie Mortlock loves nothing more than enjoying good wine with good friends over a meal. Unlike many though, Julie knows a thing or two about how to make the ideal wine for these occasions – after all, she’s had over 25 years’ experience working for one of Australia’s leading family owned wineries, De Bortoli Wines. Julie, along with other members of the De Bortoli Bilbul Estate winemaking team at the family’s home in the NSW Riverina, including John, Joel and Roberto, have put their heads together and come up with their favourite drops that they can’t wait for others to taste under the label ‘DB Winemaker Selection’. Julie neatly sums up the new range released today: “These easy drinking ‘go to’ wines are perfect for unwinding at the end of the day – they just beg to be shared.” Comprising four popular varietals selected for their quality and exceptional balance, the range is packaged with an elegant, classic yet contemporary look and comes with a very attractive price tag.
www.mga.asn.au
40
LIQUOR NEWS
October 2017 – Edition 7
42
LIQUOR NEWS
INDULGE IN THE
AVAILABLE TO ORDER NOW October 2017 – Edition 7
43
LIQUOR NEWS
MGA meets with VCGLR Executive MGA Liquor represented by CEO Jos de Bruin, President George Kovits and committee member Tony Leon recently met with the VCGLR executive including CEO Catherine Myers and
newly appointed Chair Mr Ross Kennedy and Deputy Chair Ms Deirdre O’Donnell. During the meeting CEO Catherine Myers shared with us the VCGLR’s 2017/20 Corporate Plan as the liquor industry regulator and the priorities that have been set to ensure the industries ongoing integrity and to further minimise harm, by working with the liquor industry in a manner that balances industry and community needs. MGA also vigorously raised some of the concerns our members have, in particular regarding the anomalies with the types of licenses that are permitted to sell packaged liquor for consumption off premise, trading hours and the liquor license risk based fee structure currently in place.
MGAL President George Kovits, VCGLR CEO Catherine Myers, Deputy Chair Ms Deidre O’Donnell, Chair Mr Ross Kennedy, MGAL Committee Tony Leon
MGA will continue to collaborate with the VCGLR on all liquor issues affecting our members. The complete VCGLR 2017/20 Plan can be viewed on www.vcglr.vic.gov.au/about-us/aboutvcglr/corporate-plan
The Penfolds Collection 2017 – A family of wines from distinctive years The 2017 release of The Penfolds Collection is a family of wines that deliver enjoyment today and stand the test of time. Each wine is archetypal Penfolds. A demonstration of Penfolds ‘House Style’, a style and philosophy the winemaking team have upheld since 1844 ever since founder Dr Christopher Rawson Penfolds first planted grapes at Magill. This style and underlying belief in quality and consistency is no more apparent than in the 63rd consecutive release of the flagship Grange – recently recognised as a First Growth in Liv-ex’s recreation of the Bordeaux 1855 classification. As the last remaining 2013 red to be released in The Penfolds Collection, the depth and brooding complexity of the 2013 Grange will provide life and longevity to this wine for decades to come.
Other highlights of this year’s release include the distinctive white wines made by White Winemaker Kym Schroeter. Each white wine provides a counterpoint; from the multi-regional, yet proportionate 2015 Yattarna, to the single-region 2016 Bin 311 Tumbarumba Chardonnay which exhibits a regionally mineral acid backbone, elegant fruit flavours and impressive generosity. The 2016 Reserve Bin A Adelaide Hills Chardonnay follows on from the highly decorated 2015 vintage, named Australia’s Best Chardonnay in 2016 James Halliday Chardonnay Challenge, with a powerful wine of great complexity and purity. The ever reliable Bin 51 Eden Valley Riesling continues to give with each return to glass; floral notes with fresh citrus following – undeniably from its home, Eden Valley.
To honour the origins and provenance of Penfolds, a selection of the wines in the Collection are conserved in a new signature bottle. Capturing the heritage of over 173 years of winemaking and providing a strong link to the home of Penfolds, each bottle bears Penfolds historical markings – a fine wine bottle that reflects the quality within. The Penfolds Collection 2017 is available globally from Thursday 19th October. For more information visit www.penfolds.com.
www.mga.asn.au
44
LIQUOR NEWS
New look Keypass ID card Australia Post have updated the design of the Keypass ID card. Make sure you and your staff are prepared. The Keypass card is a valid ID used to verify proof of age and identity throughout Australia, and is a common ID used by patrons over 18 years of age to enter licensed premises or to purchase liquor. As a licensee, ensure your staff are aware of the upcoming change in design and the continued acceptance of existing Keypass cards as well as the new cards. The new cards display the exact same identity details as the previous design including customer name, date of birth, the person’s photo, residential address and unique Keypass card number for authenticity. For more information about Keypass, see the Australia Post website. https://auspost.com.au/id-anddocument-services/apply-for-akeypass-id-card
Schoolies is almost here Schoolies season is upon us from 18 November to mid December 2017. Retailers in coastal and regional areas that attract schoolies celebrations will see an influx of young people celebrating schoolies. It’s also summer – which means more parties and larger crowds. Both the Victorian Commission for Gambling and Liquor Regulation (VCGLR) and the NSW OLGR reminds all licensees of their responsibilities to ensure everyone can enjoy this time safely by following these tips; 1. Fake ID Watch out for fake IDs and only accept the approved forms of ID. Hold the ID and check front and back, ask questions and if you are not satisfied, ask for a second form of ID. If you are still not convinced refuse the sale. 2. Secondary supply You must refuse service to anyone you suspect is going to supply alcohol to a minor. Explain that penalties apply both
to you as the person serving and them and the person supplying liquor to a minor. Look out for minors outside your venue, are they waiting for someone to purchase alcohol for them? 3. Appropriate advertising Read the advertising guidelines on the VCGLR website to make sure that your ads or promotions are not encouraging underage drinking or offer discounted alcohol that encourages rapid or excessive consumption. 4. Good training Make sure you and your staff are up to date with RSA training and practice how to refuse service. It’s smart to plan ahead. Be prepared early and brief your staff so that they know what to expect and do. For more information contact MGA on 1800 888 479 or visit the either the VCGLR or the OLGR websites: www.vcglr. vic.gov.au; liquorandgaming.nsw.gov.au
VCGLR selects new regional hubs Ararat and Sale have been chosen by the Victorian Commission for Gaming and Liquor Regulation (VCGLR) as its regional hubs where gaming and liquor inspectors will be situated. The VCGLR first announced their plans to create two regional hubs at the end of June, and have now confirmed the two regional hub sites to be in Ararat and Sale.
The Victorian Government allocated the VCGLR $11.3 million over the next four years in the 2017/18 State Budget to set up and maintain these two hubs. There will be eight inspector roles available from the two hubs, to monitor the operations regional and rural licensed premises. “More liquor and gambling inspectors based in regional locations means better monitoring of licensed venues across the state,” said the Hon Marlene Kairouz MP, Minister for Consumer Affairs, Gaming and Liquor Regulation. “Ararat and Sale are large regional towns in the east and west of Victoria and will provide an excellent base for inspectors travelling to other regional and rural areas.”
October 2017 – Edition 7
45
TRAINING
MGA INDUSTRY TRAINING The importance of food safety training As a business owner/manager, your responsibilities are varied, and they can keep you busy throughout the day. You may find yourself overlooking things that may not seem so important until they cause a problem. There is a growing problem in Australia with food borne illnesses, and this ought to be a serious concern for anyone who owns a food based business. In Australia it is a legal requirement that all food handlers are trained in food safety. In many states and territories (NSW, QLD, VIC, ACT) every food
business must also have a Food Safety Supervisor contactable at all times.
•
Food Safety Supervisor certification is nationally recognised training offered by MGA Industry Training. We also provide a course In Basic Food Safety (nonaccredited) to assist in educating your staff in the correct food handling procedures.
•
Some of the key responsibilities of Food Safety Supervisor include: • Ensure that the business is in total compliance with all food safety standards and codes.
•
•
•
•
Keep the Food Safety Plan up to date and ensure staff know how and when to maintain records. Perform checks for breaches of food safety. Identify potential food safety hazards and put controls in place to prevent them. Properly train all staff on food safety standards. Ensure that the employees are following personal hygiene practices in the workplace. Handle any issues of noncompliance when they arise.
Customer service training Offering customer service training to your employees doesn’t just add value for the customer; it can drive sales and give you a strong competitive advantage against your competitors. There are four main reasons to provide employees with customer service training that will benefit the business, employees and customers.
3. Increased customer satisfaction: Improving the quality of your customer service through training leads to an increase in customer satisfaction, retention and loyalty. Often, trained employees are able to address the concern at the first point of contact, which greatly increases customer satisfaction.
1. Higher employee motivation and engagement: Providing training on customer service allows employees to greater understand the impact their role has on the business. A business that invests in training shows their employees that they care about continual development and progress. In turn this makes employees more engaged in the business and therefore more motivated.
4. Rise in profit: Quality customer service training allows the business to achieve higher customer retention, the acquisition of new customers, reduced employee turnover and increased sales. Think of it as an equation: improved customer service + increases customer satisfaction + increased customer loyalty = an increase in profit.
2. Improved customer service skills: Through customer service training, employees improve their skills and/ or acquire new ones. Specific customer service training programs focus on improving communication, listening, problem solving and organisational skills.
Do you invest in customer service training? No, then isn’t it time that you did? At MGA Industry Training we can assist you and your business with customer service training options as well as many other training courses that cover different aspects of the day to day operations of the business.
www.mga.asn.au
46
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.
Responsible Service of Alcohol
X
This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons involved in the serving and sale of alcohol must complete this.
RSA – WA, QLD, SA, NT
RSA Refresher – ACT
RSA – ACT
RSA Face to Face – VIC
Duration: 3 hours Member Price: $45
Duration: 3-4 hours Member Price: $45
Food Safety Develop the knowledge and certification required to work in a food handling area.
BASIC FOOD HANDLING
FOOD SAFETY SUPERVISORS NSW
Duration: 20-30 minutes Member Price: $25
Duration: 4-8 hours Member Price: $150
FOOD SAFETY SUPERVISORS
FOOD SAFETY SUPERVISORS NSW REFRESHER
Duration: 4-8 hours Member Price: $105
October 2017 – Edition 7
Duration: 2-4 hours Member Price: $100
Duration: 1-2 hours Member Price: $30
Duration: 4 hours Member Price: $49/$75
47
TRAINING
Customer Service Ensure your staff have the skills and knowledge to build relationships with your customers, suppliers, fellow team members and management.
CUSTOMER SERVICE BASIC
Duration: 20-30 minutes Member Price: FREE
CUSTOMER SERVICE ADVANCED Duration: 45 minutes Member Price: $20
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
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