The possibility of conservative festive season spending will not have an impact on the food industry, according to market researchers IBISWorld, with supermarkets expected to be among the biggest winners. IBISWorld (Australia) General Manager, Robert Bryant, said his firm has forecast total retail spending during the month of December to reach $20.5 billion – softer growth of 5% when compared to Christmas sales of the past two years. “Christmas 2007 was perhaps the best performing period... ...Read more »

ASX-listed Retail Food Group has told shareholders that they expect a 10-15% increase in profit for the first half, while expansion activity continues apace with a deal to acquire a Donut King competitor and the Brumby’s master franchises in north Queensland and New Zealand. “The Brumby’s North Queensland master franchise territory represents the best performing Brumby’s territory in Australia,” RFG CEO Tony Alford said during the company’s AGM on Friday. “Further,... ...Read more »

The Australian banana industry is meeting with chewing gum maker Wrigley’s today over a dispute regarding an advertisement for chewing gum. The ad, promoting plaque-fighting gum, groups bananas in with sugary snacks – a link the industry is far from pleased with. As such, they filed a complaint with the Advertising Standards Bureau and have even gone as far as to boycott chewing gum. The banana industry has spent millions promoting the health benefits of their product and believe the... ...Read more »

Most of the suppliers of milk to National Foods in Tasmania are yet to sign agreements with the dairy firm, despite the deadline for the offer ending this afternoon. The collective bargaining group maintains that the current offer by National Foods is unfair and will see farmers unable to meet the costs of their production. However, National Foods insists that the current offer will not be raised as the market is not strong enough to support a price rise. The dairy firm wrote to their Tasmanian suppliers... ...Read more »

The Vegemite cream cheese spin-off has yet to hit shelves under its new name almost two months after the public voted to name the product Cheesybite, but Kraft has dismissed claims that slow sales are to blame. Kraft initially saw strong sales from their spin-off when it was branded ‘Vegemite Name Me’ as part of a competition to come up with a suitable name. Indeed, almost 3 million jars were sold in its first two and a half months. The competition led to the initial choice of iSnack... ...Read more »

Global convenience retailer 7-Eleven is looking to continue their private label push with the creation of a new position -  senior product director for private label products. Tom Gerrity, who has led 7-Eleven’s foray into private-label packaged food while supervising the grocery category, will now focus his merchandising efforts solely on the company’s growing 7-Select line of products. “Establishing this key role in the organisation supports our commitment to develop a best-in-class... ...Read more »

The Hershey Trust, the controlling shareholder of the US chocolate maker, has reportedly asked law makers in Pennsylvania to allow the company to potentially bid for Cadbury. According to the Wall Street Journal, the trust has approached Pennsylvania attorney general Tom Corbett to get his approval for any move it makes for the Dairy Milk maker. Sources familiar with the matter told the WSJ that, in recent weeks, at least one member of the trust’s board had approached Corbett to see if he would... ...Read more »

The National Australia Bank (NAB) Agribusiness Commodities Wrap released today forecasts the Australian dollar to peak above parity with the US dollar, limiting the impact of rising soft commodity prices. Commodity prices have begun to rise again in US dollar terms but gains for Australian farmers are being wiped out by the strength of our currency. In commodities, NAB expects total farm production to remain unchanged in 2009-10, however wheat production has been revised down by two million tonnes... ...Read more »

One of Queensland’s biggest pig processors will shut today, with the KR Castlemaine factory closing down in Toowoomba. The 98-year-old abattoir was acquired by George Weston Foods’ subsidiary Don after their purchase of KR Castlemaine (now known as Don KRC). It has been closed due to persistent losses, with the factory reportedly making a loss of around $5 million last year and an expected $6 million this year. Toowoomba Historical Society president Maurice French told the ABC the closure... ...Read more »

McCain Foods appears certain to continue with plans to close their vegetable processing plant in Smithton, Tasmania after a last-ditch bid by Tasmanian Premier David Bartlett to change the manufacturer’s mind failed. Mr Bartlett met with McCain executives in Melbourne this morning and came away from the meeting resigned to the fact that the factory would close in November next year. He has attempted to convince McCain to at least keep it open for a further year, but this remains unlikely. McCain... ...Read more »