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stobart warns of bogof supply chain strain
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transport giant eddie stobart has warned that the supermarket demand for two-for-one offers is placing a strain on logistics firms, and increasing the number of miles the company’s fleet runs empty. a stobart group spokesman told foodmanufacture.co.uk that the comments, initially made back in may when ceo andrew tinkler gave a lengthy interview to a journalist – were “not meant to cause a storm” and were mentioned alongside other pressures. short notice issue “but it is one of the challenges facing us, it’s true,” he said, adding that short notice from supermarkets about bogof offers was the real problem, where it stopped the haulier from arranging other pick-ups after the delivery of food. “you might be told on monday that that on tuesday you will need to put several more trailers onto a job – say delivering corn flakes to tesco. “you might have six extra drops into tesco, but then you have six extra trailers that are not filled on the way home.” tinkler said in may that bogof demand was reducing advances made by stobart in cutting the number of miles its fleet runs with empty trailers. he asked retailers to appreciate the volatile effects that bulk buying had on suppliers, given the former’s prioritisation of the supply of products on two-for-one offers. bogof’s have increasingly come under attack from other quarters in recent years, most notably after the the department for environment, food and rural affairs (defra) published the report ‘food matters: one year on’ in mid 2009. this suggested replacing two-for-one deals on short-life, perishable food items with half-prices offers to cut uk consumer food waste, which the waste & resources action programme (wrap), which partners food businesses to cut waste, estimated at around 8.3m tonnes per year in november 2009. wrap investigates promotions however, defra denied subsequent media reports that it was considering legislating on the issue, and in 2009 the european court of justice ruled that member states do not have the power to ban such promotions, which are outlawed under the relevant directive. a wrap spokesman said the organisation had been discussing with retailers how food is sold on promotion, "in order to make it easy for consumers to take full advantage of offers, while reducing risk of unnecessary waste", but no research had yet linked different types of promotion with food waste. he said wrap had begun research accordingly, to inform retailers, the uk government and public: "the project will identify the types of promotions used by retailers on a range of foods (including fresh fruit and veg, diary and bakery products) over the last 12 months, and provide insights on how products bought on promotion are stored, used as well as how much and what is thrown away. results will be available towards the end of this year." nonetheless, he said retailers had responded positively to wrap's guidance on promotions, with several undertaking trials of alternative offers such as 'buy one get one free later', and reviewing more generally how promotions are used with perishable products.
Source :foodanddrinkeurope.com
Date :
15
June
2011
Category :
Rest
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both of australia’s major supermarket chains, coles and woolworths, have slashed prices on their own-brand milk offerings, in a move which they claim will not affect farmgate prices for their milk suppliers, but which has nevertheless caused consternation throughout the dairy industry. coles led the move when it reduced the price of a 2 litre bottle of own-brand milk by 47c to just $2 - which was immediately matched by its competitor, woolworth’s - in a ‘loss leader’ move aimed at reeling shoppers in from other supermarkets, such as aldi and iga.
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a new private member’s bill to be tabled this week to australian parliament would, if passed, require australia’s major supermarkets to reveal what percentage of the retail price of their fresh produce goes to the farmers. the farm gate pricing bill, drafted by independent senator nick xenophon and house of representatives independent bob katter, would need the support of a major party, in order to be passed.
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supermarket giants coles and woolworths have been taken to task over dodgy origin labelling, after an investigation by the nsw food authority revealed that two stores were selling mislabelled fruit the incident marks the first time coles and woolworths have been fined for country of origin labelling breaches, and both have been placed on the nsw food authority’s name and shame register. woolworths at newington in sydney has been fined $1540 for advertising lemons for sale as being the “product of australia” when the individual products were actually from the usa.
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the number of grocery products on promotion at tesco, asda, sainsbury\'s and ocado fell during december as the volume of promotions throughout the year made it difficult for the uk retailers to increase the level in the run-up to christmas. according to the latest data from just-food\'s promo tracker, all four retailers had less items on promotion in december, seen as one of the key selling periods in the uk grocery calendar.
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the australian competition and consumer commission yesterday announced that it will oppose the sale of supermarket chain franklins to wholesale giant metcash, on the grounds that it would create a monopoly in wholesale supermarket supply in nsw, and make it more difficult for another wholesaler to enter the nsw market. metcash had announced its intention to purchase the 88 franklins stores for $215 million, and then onsell them to independent retailers under the iga brand, retaining supply rights.
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woolworths limited, australia’s largest supermarket operator, has reported a 7.5% surge in full year sales to $49.6 billion. chief executive officer, michael luscombe, said their results highlighted the resilience of the australian economy. “despite the global economic turmoil, 2009 has been a successful year with solid results across our business overall,” he said. “continued solid sales growth in food retailing and especially in discretionary areas like apparel, consumer electronics and homewares, highlights the underlying strength of the australian economy in these times.
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quote, unquote: just-food\'s week in words by: just-food.com | 10 june 2011 wal-mart president and ceo mike duke is looking to emerging markets for growthtwo of the world\'s leading grocery retailers this week outlined the scope of their ambitions - wal-mart through emerging markets and tesco through its online operations. meanwhile, just-food interviewed milk link\'s ceo neil kennedy about its expansion strategy.
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rising commodity prices: should we be concerned? that is a key question facing the food industry. again this week there was much comment on the issue and the possible impact on the sector. sainsbury\'s boss justin king, for instance, warned suppliers they would have to work hard to justify price increases. meanwhile, the uk retailer, widely seen to have outperformed its rivals over christmas, issued its festive numbers this week, alongside the likes of tesco, marks and spencer and morrisons.
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Coca.Cola
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PEPSI
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Mcdonald
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Nestle
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Mars
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Baskin & Robins
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Nutrika
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Mumika
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Chika
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