Jeanee Rose Andrewartha’s Post

Can SPAR shake up the Aussie grocery scene? Coles and Woolies dominate, but is there room for a new player? SPAR's global success rests on a few key factors: Focus on Fresh: Emphasis on quality produce, baked goods, and prepared foods could set them apart. Local Connection: Their franchise model allows for tailored product offerings and community ties – something big chains sometimes struggle with. Competitive Pricing: SPAR's buying power and efficient operations could lead to prices that challenge the duopoly. 🤔 SPAR could be the fresh disruption the Aussie grocery market needs #SPAR #grocery #retail #Australia #innovation

(AUSTRALIA 06.03.24) Fixing Australia’s supermarkets: how to drive competition without wielding a hammer. Albanese government avoids breaking up top Australian supermarkets, seeks regulatory competition changes. Challenges include supplier access, land availability. NZ scandal shows supply limits favor big players. Kaufland's exit underlines hurdles for new entrants due to land constraints. Government may aid non-duopoly supermarkets to access sites. Senate inquiry and regulator scrutinize pricing, market distortion. Proactive reforms urged for fair markets. ----- [AG: In Australia's ever-evolving food industry, fostering competition and supporting local growers are critical to ensuring a vibrant and sustainable marketplace. While the idea of wielding a hammer to break up dominant players may seem tempting, there are gentler yet effective approaches to drive competition and promote fairness in our industry. One innovative solution is to invite major overseas retailers to settle in Australia with full government support. By welcoming renowned retailers, we can inject new competition into the market and provide consumers with greater choice and affordability. Moreover, these retailers can bring in expertise and resources to enhance efficiency and innovation in our industry. Another avenue is to invest in Australian farmers and growers by supporting the development of Cash and Carry establishments near domestic fresh produce wholesale markets or urban regions. These farmer-owned establishments can streamline the supply chain, allowing farmers to sell directly to retailers and consumers, bypassing intermediaries and reducing costs. This direct-to-market approach not only benefits farmers by improving their profit margins but also ensures fresher produce for consumers. Furthermore, promoting the establishment of regional cooperatives owned and managed by local farmers and growers can strengthen their collective bargaining power and enable them to negotiate fair prices with major retailers. By eliminating unnecessary intermediaries and shortening the supply chain, these cooperatives can ensure that farmers receive a greater share of the profits while providing consumers with high-quality, locally sourced products. Ultimately, the key to driving competition without wielding a hammer lies in fostering collaboration, innovation and support for local producers. By embracing these solutions and empowering farmers and growers, we can create a more resilient and equitable food industry that benefits both producers and consumers alike. Let's work together to build a leaner and fairer food supply chain from paddock to plate.] ----- https://lnkd.in/gr_i3X49

Australia’s two largest supermarket groups, Coles Group and Woolworths Group, have defended their pricing strategies after it was announced the country’s parliament is to hold an inquiry into what one main political party believes is price-gouging, or profiteering on the grocers’ part. #coles #woolworths #food #foodindustry #foodindustryinsight #foodnews #foodbusiness #foodbusinessnews #foodbusinessowner #foodmanufacturing #foodanddrink #foodandbeverage #foodandbeverages #foodanddrinks #foodanddrinkindustry #costofliving #costoflivingcrisis #inflation #inflation2023 #inflationimpact #inflationinsights #crisis #foodcrisis #costoflivingcrisis #foodprices #foodproducts #foodproduction #foodinflation #australia #australianmanufacturing #australianbusiness #aussiebusiness

Uutta sääntelyä ⚖️ päivittäistavarakaupan 🛒toimitussopimuksiin ja käytäntöihin Uudessa-Seelannissa. Haasteet ovat yhteneväiset eri puolilla maailmaa. Lue alta lisää 👀📑🔽 ’Mr van Heerden says the new Grocery Supply Code – which took full effect from 28 March 2024 – will for the first time provide transparency and certainty for suppliers, ensuring appropriate and comprehensive agreements with supermarkets and “encourage suppliers to negotiate the specifics of deals before signing”. “A handshake or verbal agreement is no longer good enough, and suppliers should not feel pressured into signing an agreement without the chance to negotiate the terms with a supermarket first. “As one of the largest sectors in New Zealand, Kiwi shoppers should trust they are getting a fair deal at the check-out… and that suppliers of their trusted products are being treated fairly and transparently by supermarkets. “This is a $25 billion sector, and with deals often being made ad-hoc, verbally and at times pressuring small suppliers, this new Grocery Supply Code is about formalising more comprehensive agreements – creating more transparency and certainty for suppliers about what they are signing up to, protecting them from unfair conduct, so they can better compete and succeed.”’ #ruoka #elintarvike #sopimus #sääntely #päivittäistavarakauppa #toimitussopimus

The Grocery Supply Code, which is now in full effect, addresses a historical power imbalance between major retailers and suppliers, helping to level the playing field in the $25 billion sector and create opportunities for suppliers to thrive. Grocery Commissioner Pierre van Heerden says the new Code will for the first time provide transparency and certainty for suppliers, ensuring appropriate and comprehensive agreements with supermarkets and “encourage suppliers to negotiate the specifics of deals before signing”. Read more in our media release here: https://lnkd.in/gKR77iZx

Coffee, anyone? Oops, there goes the "best before" date in yet another Salling Group dumpster. In 2022, Denmark's leading retailer Salling Group saw its food “waste” increase to 2.01% - up 4% from 2018. Their 44 million kg of food "waste" a year wasn't too concerning though stating in the press it's "doing pretty well & have a low waste rate.” As a comparison, retail giant Tesco wastes 0.8% across all international operations. 2.01% & 0.8% may not seem that different but given the volumes these giants are shifting, the difference is profound. Is it not surprising that even though a UN report found that per capita Danish retailers are the most wasteful on Earth, no commercial food "waste" policies have been implemented? Last week, in the world of supermarkets: FIREWORKS ERUPTED. Down in Australia. Given that just like Denmark, Australia's top 2 supermarkets - Woolworths & Coles - hold 65% market share, it's a market I've been following closely for years. And luckily for me (& Australian consumers) so has the Australian Competition & Consumer Commission (ACCC). According to the former head of the ACCC, Rod Sims, who retired 18 months ago, the Australian grocery market is "stunningly concentrated" & that: “It’s a cold, hard economic fact that when you have that much competition then you have higher prices." The ACCC is undertaking a year-long pricing probe to assess whether the Duopoly have used their dominance to pressure agricultural suppliers & price gouge consumers. Woolworths & Coles will also appear before a Senate public inquiry into "Supermarket Prices" in March. Given the public interest, last week, the Australian Broadcasting Corp. (ABC) released its film - Super Power - on the Duopoly. When reporter, Angus Grigg, asked Woolworths CEO about the lack of competition in the Australian grocery market, raised ACCC's Rod Sims' statements, etc., it all eventually got too much for the CEO, as he attempted to retract his derisive comment that Sims was "retired, by the way" & then threatened to leave the interview before PR staff told him better. Days later, the $8 million-a-year Woolworths CEO announced he was retiring. As Grigg writes: "That was a pretty basic line of questioning... & the fact that he bristled so badly when pushed on whether or not there was adequate competition in Australia tells you they're not really used to having much scrutiny." After this implosion - before the political pressure has even started - I just had to look up Woolworth's and Coles' annual & sustainability reports to see what their data was regarding food waste. Almost nothing. A few statements about landfill diversion, how most food waste is caused by farmers, etc. No concrete data regarding their food "waste" though. I've said it before, & I'll say it again, one of the biggest challenge the global food system faces are: The Supermarket Oligopolies. Photo from anonymous food waste campaigner in W Denmark. Thank you! #foodwaste

🥊 Aussie grocers hit back after pricing probe announced 📉 Coles Group, Australia’s number two food retailer, said its rate of inflation has been “progressively moderating, particularly in key staple areas”. Woolworths Supermarkets, the biggest grocer in the country, said it “will continue to focus on delivering savings to our customers”. 🔎 The Australian Greens, which is to lead the inquiry, said it will “scrutinise the impact of market concentration on food prices and the pattern of pricing strategies employed by the supermarket duopoly”. 👎 A Coles spokesperson added: “Having a profitable business means Coles can continue to serve Australians, invest in our stores, employ the 120,000 team members we employ, pay taxes in Australia, pay dividends to our hundreds of thousands of mum and dad shareholders and ensure long-term sustainable relationships with our suppliers. 💳 “It also puts us in a position to invest in value like Great Value Hands Down, thousands of weekly specials, our Flybuys programme for our customers to save and have confidence they can buy good food in our supermarkets. Read More: https://lnkd.in/gRWhNuDc #fmcg #fmcgindustry #supermarket #parliament #food #foodandbeverage #inflation

Australain supermarkets are in the news again due to sourcing overseas produce for their private label ranges. A few months ago SPC reported it was cutting back purchasing local fruit for canning as Woolworths had allocated part of its supply for private label canned fruit purchases overseas. Now a report from the ABC advises Coles is to purchase a percentage of its frozen pea requirements from overseas sources. Why cant our producers effectively compete with overseas producers? What is inflating our costs of production and competitive posture? Do supermarkets consider collaborative ways to improve local growers competitiveness ? And should they if it risks shareholder returns? Would shoppers pay more for Australian grown? #Supermarkets #PrivateLabelpractices #Australianproducers #Competitivedisadvantage #Futureoutlook>>

(AUSTRALIA 15.03.24) Drakes Supermarkets founder Roger Drake has worked his way back to richlister status. Roger Drake, founder of Drakes Supermarkets, has regained his wealthy status after a significant profit surge. Starting with a small shop in 1974, despite early doubts, Drake built his supermarket chain, now Australia's largest independent. With a 50% profit increase in 2023, Drake's estimated fortune stands at $827 million, earning him a spot in The Australian's 2024 list of the country's richest, marking his journey from humble beginnings to entrepreneurial success. https://lnkd.in/g85JdhBK ----- [AG: In Australia, discussions about supermarket pricing and fair compensation for farmers currently eevolves around our 2 major players: Woolworths and Coles. There's a constant scrutiny on whether they are engaging in price gouging and if they are paying our farmers sustainable and profitable prices for their produce. However, amidst this focus on our 2 retail giants, it's essential to widen the lens and consider the broader ecosystem of post-farm gate operators. While Woolworths and Coles dominate the supermarket landscape, they are not the only players in the game. Aldi, for example, has carved out a significant market share and operates on a different pricing model, often offering lower prices to consumers. Then there are the independent post-farm gate operators – wholesalers, traders, merchants, aggregators and independent supermarkets – who play a crucial role in the supply chain but escape the spotlight. These independent players are key intermediaries between farmers and consumers. They source produce from our farmers and sell it to retailers or directly to consumers. However, their operations and pricing strategies are not as closely scrutinized as those of Woolworths and Coles. This raises questions about how fortunes and excessive profits are made within this segment of the supply chain. One aspect to consider is the negotiation power dynamics between these post-farm gate operators and farmers. Are farmers receiving fair prices for their produce, considering the costs of production and ensuring their sustainability? Additionally, are these operators passing on these fair prices to consumers, or are they pocketing significant margins along the way? Transparency and accountability are crucial for fairness and sustainability in the supply chain. While Woolworths and Coles face pressure to disclose practices, attention should also focus on Aldi and independent operators. Understanding their impact on farmers and consumers is key for a fairer food system. Let's broaden the conversation to include the entire production and distribution ecosystem, demanding transparency and supporting fair trade initiatives for a more sustainable future.] -----

Will David Littleproud's call for market competition shake up Australia's grocery landscape? With Coles and Woolworths under scrutiny, Read Here: https://lnkd.in/gJ2bN-PN #financialservicesonline #MarketCompetition