UK supermarket chain Sainsbury’s has rid their private label cereal of cardboard boxes, a move which could be followed by some of the sector’s heavyweights. The decision will help to cut packaging on its entire range of products by a third, with the retailer to simply use recyclable plastic packaging commonly used by potato chip makers. Australia’s Sanitarium and the world’s largest cereal maker, Kellogg’s, have both indicated they were also contemplating the idea as... ...Read more »

The Federal Opposition has today confirmed that it will now support the controversial alcopops tax despite maintaining that it will not help fix the binge drinking issue. The 70 per cent tax hike on alcopops was introduced last year but was voted down in the Senate in March. Since then a Bill has been passed to validate the tax raised prior to the Senate’s rejection, with the Bill being reintroduced today by Labor. Opposition health spokesman Peter Dutton argued that the legislation is nothing... ...Read more »

As retailers expand the offerings of their own brands, the world’s largest cereal manufacturer has contended that the threat of private label can be quelled by continued product innovation and a renewed focus on value. “Companies that continue to invest in the recession will be the successful ones,” Kellogg’s UK Marketing Director Kevin Brennan said at a briefing in London, according to just-food. “(Private label) has been very much driven by retailer visibility rather... ...Read more »

Schweppes has increased the prices of their beverages by up to 10 per cent, according to a report in The Age. Australia’s second largest soft drink beverage manufacturer will reportedly charge an extra 8-10%, representing their first price hike since 2007. Schweppes, which was purchased from Cadbury by Asahi for $1.185 million earlier this year, has denied suggestions from analysts that the rise was due to the Japanese brewing giant seeking to gain an immediate return on investment. The maker... ...Read more »

Financiers for Mildura-based Neqtar Australia have called in receivers PriceWaterhouseCoopers. The move was made on Friday, with Neqtar Wine and SDS Beverages to continue operating as normal until a purchaser is found. The company, which employs around 100 staff, is in charge of the Roberts Estate Winery and their SDS Beverages group is the largest exporter of vegetable concentrates in the Southern Hemisphere. SDS has contracts with a number of leading food groups including Coca-Cola Amatil, Unilever,... ...Read more »

Food and household goods manufacturer Sara Lee is mulling the potential of food and beverage acquisitions as the company fields offers for its households business. Chairman and CEO, Brenda Barnes, told Bloomberg last week that, with an extensive cost cutting process underway and the potential of a sale of their $3b International Household & Body Care business, they were in a position to expand their food and beverage business. “We now have the capability to do this,” she said of the... ...Read more »

The online consumer has a much stronger relationship with brands than the average shopper, according to new research. Online sales continue to grow despite the recession, highlighting the significance of the digital consumer. This is underscored by new research from Millward Brown, who analysed WPP’s BrandZ database (the largest repository of brand knowledge in the world) and found that digital consumers have, on average, a 15 per cent stronger relationships with brands than non-digital consumers. In... ...Read more »

Japanese brewer Kirin Holdings has received the all clear from the Foreign Investment Review Board for their takeover of Australia’s second largest brewer – Lion Nathan. The $3.5 billion takeover offer was accepted by the Lion Board last month but still requires approval from shareholders and the Australian Consumer and Competition Commission. The ACCC is due to decide on July 1 whether or not Kirin’s expansion in Australia – they have purchased National Foods and Dairy Farmers... ...Read more »

Victorian dairy firm Warrnambool Cheese and Butter has today advised of the extent of the profit downgrade outlined last month. The troubled company, which has seen the resignations of its Chairman and CEO after an aborted capital raising while also coming to terms with one of the most difficult periods in the history of the dairy industry, anticipates a loss for the current financial year of between $16 and $18 million. They announced a profit warning in December last year as continued market volatility... ...Read more »

Confectioner Cadbury reported improved trading throughout April and May, which they believe will allow them to reach their sales targets for the current year. “Growth in Chocolate remained robust, reflecting a good seasonal performance and the benefit of new product innovations,” the UK-based firm advised. “Gum and Candy both grew, helped by improved performances in a number of developed markets.” The Pacific business benefited from good seasonal chocolate sales and an improved... ...Read more »