Coles Supermarket Group has issued guidelines to the buyers that it employs on ways to avoid engaging in conduct that might be considered ‘unconscionable’ in dealings when negotiating prices with suppliers to Coles. The supermarket chain has sent a document to all of its buyers offering examples of unconscionable behavior and negotiating practices that might be said to infringe the Australian Competition and Consumer Commission Act 2010. This legislation is enforceable by the Australian Competition... ...Read more »

Wal-Mart Stores Inc. is trying to do for the environment what it has done for consumers. Wal-Mart is notorious for pushing suppliers to drive down prices if they want to display their products on the shelves of the world’s largest retailer. With $408 billion in revenue and a net income of $14.3 billion for the fiscal year that ended in January, Wal-Mart is the largest company in the world ranked by revenue. Now Wal-Mart is using its clout to clean up the environment. Wal-Mart “has more... ...Read more »

Consumer-oriented restaurant websites often grab the bulk of media attention, leaving business-to-business interaction as often the forgotten link. As a result, US-based foodservice consultants Technomic turned their attention to foodservice manufacturers’ sites, and asked their customers about their experience using them – finding several areas where there is typically room for improvement. Manufacturers’ web sites are visited regularly by restaurant operators, distributor sales... ...Read more »

Global food manufacturer Kraft Foods is intending to halve its supplier base in a bid to slash costs by US$300 million per year, according to a Reuters report. Such a move would affect more than 30,000 companies. The news comes amid continued speculation that the owner of the Vegemite and Oreo brands will increase their offer for UK confectioner Cadbury. The plan was in the works long before the Cadbury proposal, with Kraft reportedly informing suppliers of the review back in March. Kraft’s... ...Read more »

Irish political party Fine Gael (FG) has launched a stinging attack on the supermarket sector, which it has accused of jeopardising Irish jobs. FG’s spokesperson on agriculture, fisheries and food Michael Creed said that “forced payments” and “hello money” demanded by supermarkets is damaging Irish agribusiness. “I am seriously concerned that food suppliers in this country are being subjected to unfair demands by the large retailers in this country with industry... ...Read more »

Victorian-based dairy processor Warrnambool Cheese and Butter Factory has seen the majority of their milk supply return after a mass exodus of over 100 farmers in April threatened to leave a substantial hole in their supplies. The Chief Executive Officer of WCB, John McLean – who returned to the position he held for 32 years after the resignation of Neil Kearney in April – last week informed suppliers that, after losing in excess of 250 million litres of milk “virtually overnight”... ...Read more »

Kellogg Company, the world’s largest cereal maker, has reported a strained relationship with a key Australian retail customer – either Coles or Woolworths – during a conference call following the release of better-than-expected results. The manufacturer did not say which chain they were having difficulties with, but advised that there was an “issue” with one of the two major chains down under. “In Australia, we were negatively impacted by challenging negotiation... ...Read more »

The retail and wholesale distribution industry could save £6.1 billion (A$12.26b) a year by agreeing “better” more “mutually beneficial” supplier-buyer deals, new research has claimed.According to retail consultancy, The Gap Partnership, and independent economists, the Centre for Economic and Business Research, both suppliers and retailers could improve their business performances, productivity and profitability by “thinking creatively” about the terms of contract... ...Read more »

The Australian Food and Grocery Council last night expressed their disappointment with Australia’s largest supermarket chain over what they perceive to be an unfair shifting of blame to manufacturers for rising food prices. Australia’s leading representative of food and grocery manufacturers was upset by comments made by Woolworths Chief Executive Michael Luscombe on radio yesterday morning. Mr Luscombe told ABC Radio National that questions about food inflation were best answered by... ...Read more »

News of Wal-Mart’s latest sustainability push may have been lost amidst news of swine flu and economic recovery here in Australia, but their decision is likely have a major impact on the food and grocery sector around the world. Eco-labels For the last couple of years there has been talk of so-called ‘eco-labels’, which would highlight the environmental impact of each product on the grocery shelf. The notion has had its detractors, who point to issues of measurement, testing and... ...Read more »