SupermarketNews // November 2014

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November 2014 • Vol. 7 No. 11

Frucor cleans up at the Juice & Beverage Awards. (see page 6)

REPORT FROM COMMERCE COMMISSION DUE SHORTLY THE Commerce Commission report on the Countdown affair is expected before Christmas and the industry is waiting with bated breath – although it is unlikely to contain any surprises, the outcome may lead to other issues. While our Food & Grocery Council is expecting little to come of the report, as are most others in the grocery industry, it has put a serious stake in the ground and let it be known to both major retail groups that they can only go so far with domineering behaviour. Truth is that the Commerce Commission has no real power to reprimand but it may well be the catalyst for the Government to force the industry into either a legislated or voluntary code of practice similar to that promulgated in Australia. Already the complaints made to the Commission covering Countdown and Foodstuffs (on a lesser scale) have

produced results in that a number of suppliers are reporting improving relationships. And while there has been absolutely no sign of retribution against complainants, some are treading quite warily until the matter blows over. The last few months have proved particularly difficult for the FGC’s chairman Pierre van Heerden and CEO Katherine Rich who have been bombarded by the press – so much so that this month’s conference passed a vote of confidence in the pair. There’s little doubt that industry confidence in Countdown took a nosedive over the past few months but at the same time, Progressive has lost millions of dollars in turnover so for them it has been a double-edged sword. Hopefully for the sake of the industry, the matter may

BREAD INDUSTRY HARD HIT BY RETAIL DISCOUNTS THE two major grocery retailers aren’t doing our baking industry any favours with bread being the centre of a now prolonged discount war. Industry reports put bread sales turnover

down by over $30 million since the two started coming up with a low priced commodity. Admittedly the product being discounted by Countdown and Pak’nSave is at the lower end of the quality scale but it is still being sold-on at less than cost and it has certainly taken the gloss off the profitable end of the specialist bread products. Neither of the major plant bakeries care to discuss the issue saying it is a private matter between them and their two customers but behind the scenes, there is much gnashing of the teeth in the hopes it may end soon – and that is not something currently in sight. n

soon be resolved and for a company that buys around 45% of our suppliers products, it is critical that the Countdown relationship gets back to normal as quickly as possible. At the end of the day, both retail groups have been clearly told that it is ethically inappropriate to have “mugging” meetings with suppliers and it may well be one of the key issues if a code of conduct is promoted. n

JOB CUTS AT WATTIE’S HEINZ Wattie’s has announced plans to cut up to 100 jobs from its Kiwi workforce, with the majority expected to be in the company’s Auckland head office. The move follows further job losses across the ditch with the restructure designed to help grow the business in competitive local and offshore markets. n

Corine Tap

JOHN KEY BACKS DANONE ENTRY

PRIME Minister John Key along with French and Chinese government officials helped Danone celebrate the finalisation of two major company purchases in New Zealand last month. Nutricia, the French Danoneowned infant formula maker, has now boosted its existing operational platform here with the purchase of the Sutton Group and Gardians of New Zealand. Sutton was the privately owned food ingredients and dairy sector supplier established by Brent Sutton 25 years ago in Auckland and Gardians is a well known dairy exporter. Nutricia’s ANZ managing director Corine Tap said the transactions would provide access to a large milk drying facility and a long term supply of fresh milk as well as an infant formula blending and packing unit. n

TWIN AGENCIES CHANGES AT TOP IN a surprise move, Wayne Sands is taking a step back from his 20-year-old Twin Agencies operation and intending to sell his major stake to Heinz-Wattie’s general manager sales Shane Webby within the next year or so. Webby shortly leaves his 16-year-career with Heinz-Wattie’s to initially become general manager of Twin Agencies joining the 22 other team member shareholders. Twin Agencies has built a strong reputation in the industry representing the likes of Whittakers, Hubbards,

Barkers, RJ’s, Café L’Affare, Heartland, Eco Store, Tandoori Palace and Farrah Wraps. n Shane Webby

contents 04 Countdown for Tauranga 09 BOP Wins Checker Comp 18 SIAL 2014 Wraps Up 20 Cleaning 28 New Products

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