Inside the blast zone: Foodland puts out the welcome mat for Aldi

Original article by Simon Evans
The Australian Financial Review – Page: 17 : 2-Mar-16

Discount supermarket chain Aldi opened its first Adelaide stores in early 2016, and it will open another five during March. Foodland has been "extremely aggressive" in defending its market share in areas where Aldi has opened a store, according to CEO Con Sciacca. South Australia-based Foodland argues that it has more scope to reduce grocery prices at individual stores than national rivals Woolworths and Coles. Foodland’s market share in the state is just below that of Coles and Woolworths.

CORPORATES
FOODLAND AUSTRALIA LIMITED, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, MORGAN STANLEY AUSTRALIA LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

Woolies turns to Saatchi for brand refresh

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 2-Feb-16

Andrew Hicks has been appointed as the director of marketing at Woolworths, a role he has held in an acting capacity since the resignation of chief marketing officer Tony Phillips in May 2015. Meanwhile, Woolworths has hired advertising agency M&C Saatchi to develop a new marketing campaign for its supermarkets business. Leo Burnett has been the retailer’s creative agency for the last two years, and was responsible for revamping the long-running Fresh Food People campaign. It also developed the not-so-successful Cheap Cheap campaign.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, M&C SAATCHI AGENCY PTY LTD, LEO BURNETT PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

ALDI ups ad spend as rivals cut back

Original article by Sue Mitchell
The Australian Financial Review – Page: 30 : 1-Feb-16

Data from Nielsen’s Advertising Information Service shows that ALDI Australia increased its advertising budget from $A15m in 2014 to $A28.9m in 2015. In contrast, Coles and Woolworths reduced their advertising expenditure by 25 per cent and 5.3 per cent respectively in 2015. ALDI has ramped up its metropolitan and regional TV advertising in recent years, and reduced its budget for newspaper advertising.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, THE NIELSEN COMPANY (AUSTRALIA) PTY LTD

Woolworths struggles to hire CEO

Original article by Michael Smith
The Australian Financial Review – Page: 1 : 22-Jan-16

An overseas candidate is likely to succeed Woolworths CEO Grant O’Brien, after no local executives expressed interest in the role. Woolworths is believed to have identified about five potential candidates from the UK, Europe and North America. Chairman Gordon Cairns had originally indicated that he aimed to install a new CEO by March 2016, but he has conceded that the selection process may take longer as overseas candidates are being interviewed in person rather than by video link.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

Woolies, Coles and Aldi caught up in child labour scandal

Original article by Sarah Danckert
The Australian Financial Review – Page: 5 : 15-Dec-15

Australian supermarket groups Coles, Woolworths and Aldi will review their supply chains after revealing that they source frozen prawns from a Thailand-based company that has been accused of using forced labour. It is also alleged that Thai Union uses child labour at a prawn peeling factory in the city of Samut Sakhon. Thai Union is one of the world’s largest seafood suppliers.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, THAI UNION FROZEN PRODUCTS PUBLIC COMPANY LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, METCASH LIMITED – ASX MTS, GREENPEACE INTERNATIONAL, ASSOCIATED PRESS, THAILAND. DEPT OF FISHERIES, INTERNATIONAL LABOUR ORGANIZATION

Woolies sued over payments

Original article by Sue Mitchell, Sarah Danckert
The Australian Financial Review – Page: 3 : 11-Dec-15

The Australian Competition & Consumer Commission (ACCC) has commenced legal proceedings against Woolworths, accusing the retailer of unconscionable conduct. The ACCC alleges that Woolworths contravened Australian consumer law when it demanded more than $A60 million in extra payments from suppliers in late 2014. The matter will be heard in the Federal Court.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA, COLES GROUP LIMITED

Coles MD says suppliers living on Treasure Island

Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 17 : 9-Dec-15

Coles MD John Durkan has criticised global suppliers of brand-name groceries for charging excessive prices in Australia, a concern he first raised in 2008. He concedes that consumers must be expected to pay a reasonable price for groceries, but he says cost increases in Australia should not be higher than in other countries. Durkan adds that more consumers will switch to supermarkets’ private-label products if the cost of branded groceries keeps rising.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, COLES GROUP LIMITED, ARNOTT’S BISCUITS LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, SCHWEPPES AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN FOOD AND GROCERY COUNCIL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

The power of Tim Tams: Arnott’s puts bite on Coles in price war

Original article by Eli Greenblat
The Australian – Page: 2 : 1-Dec-15

Coles will no longer stock certain Arnott’s products following a pricing dispute with the biscuit maker. Arnott’s had sought price rises ranging from 2.2 per cent to 9.9 per cent on more than 40 of its popular biscuit products, and the supermarket chain’s resistance prompted a ban on deliveries of Arnott’s products to its stores. Coles eventually backed down, although it has refused to accept price increases on some products and will cease selling them.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, ARNOTT’S BISCUITS LIMITED, CAMPBELL SOUP COMPANY, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, FOSTER’S GROUP LIMITED

Woolies shareholders look for green shoots

Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 26-Nov-15

Woolworths’ strategy to turn around the performance of its supermarkets division is likely to come under scrutiny at its AGM on 26 November 2015. Some shareholders do not expect any real improvement in the business for another 6-12 months, following Woolworths’ move to reduce grocery prices and ramp up investment in its supermarkets. The future of assets such as the Masters and Big W businesses are also likely to be a key focus for investors.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LUMINIS PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, BEST AND LESS PTY LTD, NBN CO LIMITED

Woolies taps Best & Less boss for seat

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 17-Nov-15

Australian-listed retailer Woolworths is believed to have invited Holly Kramer to become a non-executive director. Kramer is on the boards of AMP and Nine Entertainment Company, having stepped down as CEO of discount department store group Best & Less in May 2015. Woolworths is seeking to appoint three directors to replace Ian MacFarlane, Christine Cross and David Mackay. It has also yet to appoint a successor to CEO Grant O’Brien, who may remain at the helm until his replacement is appointed.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BEST AND LESS PTY LTD, AMP LIMITED – ASX AMP, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, YALE UNIVERSITY, GEORGETOWN UNIVERSITY, FORD MOTOR COMPANY AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, PACIFIC BRANDS LIMITED – ASX PBG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD