Coles Supermarkets is doing a natural recall of its home brand Chocolate Cake with Icing (cake mix) from its stores, including Bi-Lo and Pick N Pay stores, due to undeclared sesame content. Sesame is listed as one of numerous allergens (others can include milk, wheat, soy, seafood or nuts) that are required to be declared on a food label in accordance with the requirements of the Australia New Zealand Food Standards Code. Failure to do so is considered to be sufficient ground for a food to... ...Read more »

Australia’s leading supermarket chains have been accused of using “copycat” packaging of leading Australian food brands to mislead consumers into buying the supermarket’s own private label products. The Australian Food and Grocery Council’s Chief Executive, Kate Carnell, said today that supermarkets are targeting brands with a strong market share and copying their designs as closely as possible without infringing trademark laws. Private label products are forecast to grow strongly and could... ...Read more »

One of the world’s largest accountancy and business consultancy firms, Grant Thornton, today published its annual international business report on the food and beverage industry. The report highlights several key trends and predictions for Australia, including the strength of the Australian supermarket duopoly and the problems posed by their private label business. In the report, ‘Managing through uncertainty: Food and beverage industry in transition’, Grant Thornton’s Industry Leader... ...Read more »

One of the world’s biggest food processors, Heinz, has moved to deprecate news reports suggesting hostility between Heinz and Australia’s leading supermarkets who are its major customers. Articles in both the Sydney Morning Herald and The Age this week claimed Heinz had “hit out at (supermarket) home brands” and had been “forced to rework strategy” because of the impact of growing home brand label presence in Australia’s supermarkets. Heinz told Australian Food News today that both... ...Read more »

Australia’s largest bread manufacturer, Goodman Fielder, is reported to be reviewing alternatives to making daily deliveries of its bread to Australia’s supermarkets and extending the shelf-life of its bread products using food technology as part of a major cost-cutting exercise. With many Australian supermarkets now bake their own home-branded bread instore, external bakeries like Goodman Fielder are facing tough competition on price. As part of its Strategic Review, announced in August 2011,... ...Read more »

Newly appointed CEO of Australian retail giant Woolworths Limited, Grant O’ Brien, has unveiled a multi-pronged strategy to expand the company’s operations in Australia. In a series of media statements, the company announced plans to create 10,000 new retail jobs before the current financial year ends, as well as a five-year plan to double sales of Woolworths supermarkets’ own brand products. According to the statements, Woolworths plans to open 39 new supermarkets, seven new BIG Ws and 15... ...Read more »

The private label products of Australia’s largest supermarket operator are set to undergo a major facelift, according to a report on the weekend. Woolworths will work with Hulsbosch Strategy & Design to redesign some of its private label product lines in one of the biggest design briefs to be handed out this year, The Australian reported. The design company, which worked with Woolworths to create their new logo last year, is expected to focus on updating two brands within their private... ...Read more »

Woolworths, Australia’s largest supermarket operator, has recorded an 8.8% spike in first-half sales to $26.1 billion as their food and liquor division drives growth. “Today we are pleased to report a net profit increase of 10.3% to $983.3 million for the half-year ended 4 January 2009. This is a strong result reflecting increasing customer acceptance of our retail offer underpinned by the continued investment in all our businesses,” Woolworths CEO Michael Luscombe said. “I... ...Read more »

Private label products, or store brands, are growing faster in convenience stores compared to other stores and represent a tremendous growth opportunity for the convenience channel, according to new research to be released by The Nielsen Company. Nielsen’s research discovers that sales of private label products escalated by nearly 20 per cent over the last year to $826 million in American convenience stores, compared to a 15 per cent increase in drug stores (pharmacies) and just under 10 per... ...Read more »

Decisions by manufacturers to shrink product sizes in order to prevent price hikes have disappointed consumers, who instead seek larger package sizes with lower cost per serving. In more positive news for many manufacturers, though, the recent surge in private label sales in America has, contrary to popular belief, not been driven by national brand abandonment, according to The Nielsen Company. Private label Supermarkets across the western world are embracing private labels, with reports that consumers... ...Read more »