Foster’s, Australia’s largest brewer, has announced their trading update today, again highlighting the struggles confronting their wine division as the Australian Dollar surges and the US remains mired in recession. “Unfavourable exchange rate movements are expected to negatively impact first half wine earnings by between $80 to $90 million,” the company said in a statement. “The major currency impacts are expected to be an approximate 9 cent increase in the average... ...Read more »

The EU is investigating an alleged banana cartel in southern Europe – a year after finding companies including Dole Food Co. and Chiquita Brands International guilty of price-fixing in the north of the continent. The European Commission said that it has issued a “statement of objections” to “a number of companies active in the import and marketing of bananas” over claims of a cartel. The parties concerned, which according to a Commission spokesperson cannot be identified,... ...Read more »

The list of food manufacturers making sweeping commitments to reduce salt in their range of food products continues to grow, with Sara Lee this week announcing plans to reduce salt by an average of 20 per cent over the next five years. The reduction will be seen across its key categories of fresh bread, hot dogs, lunchmeat, breakfast foods and cooked sausage. “This is in line with our broader wellness and nutrition strategy, which focuses on increasing the presence of positives, such as... ...Read more »

Food Standards Australia New Zealand (FSANZ) has outlined a number of possible changes to the Australia New Zealand Food Standards Code including the prospect of allowing more raw milk products. The changes under consideration include the approval of genetically modified (GM) maize, cotton and corn, erythrosine as a colouring for icing and a national food safety standard for the production and processing of raw milk products. Food derived from herbicide-tolerant (GM) maize – Application A1021... ...Read more »

Franklins has claimed victory in a bitter contract dispute with grocery wholesaler Metcash, although confusion reigns as the end of a four-year legal battle nears. Supermarket chain Franklins launched legal action against Metcash after its decision to end their supply agreement with the country’s third largest grocery player believing they were not receiving discounts and rebates they were entitled to. And yesterday they were seemingly vindicated with the Court ruling in favour of Franklins... ...Read more »

Domino’s Pizza Enterprises, Australia’s only publicly listed pizza chain, has announced a surprise update to their profit outlook just over a month after saying they were on track to meet guidance. Subject to finalising half year accounts, Domino’s “expects to achieve results for the first half FY10 materially above the corresponding first half FY09″, the company said. “Domino’s expects to announce half year NPAT to 3 January 2010 in the vicinity of $8.5m,... ...Read more »

Jean-Marc Huet has been announced as the new Chief Financial Officer of consumer products giant Unilever. He will replace James Lawrence, who resigned last week after spending just over two years with the maker of Streets and Lipton. “We are delighted to have attracted a candidate of Jean-Marc’s talent and experience,” Paul Polman, Unilever Chief Executive said. “He joins Unilever at an exciting time. His background and expertise will be important in helping us realise the... ...Read more »

Kraft has received regulatory approval in Australia for their proposed purchase of Cadbury. The hostile takeover offer remains in the hands of Cadbury shareholders, although is likely to need to be sweetened given Cadbury management have consistently labelled it as “derisory”. But the deal has passed at least one more hurdle this week with Australian regulatory approval coming on the back of similar approval in the US. European authorities are due to report their opinion on the deal... ...Read more »

US consumer groups have again put the marketing of unhealthy foods to children in the spotlight and raised questions over the rigour of industry self-regulation. A new study by Children Now has claimed to reveal the “ineffectiveness” of the food and drinks industry’s voluntary “better for you” initiative to improve the nutritional quality of foods advertised to children. The research found that, despite adhering to the “better for you” guidelines, 68.5% of... ...Read more »

Pressure is mounting for the UK government to step in and block Kraft Foods’ proposed takeover of Cadbury.Cadbury management has repeatedly rejected Kraft’s GBP10bn (US$16.25bn) cash-and-stock offer, arguing that it undervalues the company and its future prospects. Objections have also been raised by Unite, the union representing Cadbury workers in the UK and Ireland. According to the union, talks with Kraft management have failed to assuage concerns that the US conglomerate would not... ...Read more »