Retail Update - powered by LebensmittelZeitung
Retail Update - powered by LebensmittelZeitung
Thursday, 07 July 2016

Hello, dear reader!
In the US, food giant Danone is about to buy organic foods producer WhiteWave in a deal worth US$ 12.5 billion. Meanwhile, Alibaba is active on all fronts. The Chinese mega-retailer has moved into the automotive sector and shows interest in Spanish products. Self-driving robots are being trialled for deliveries across the UK, Germany and Switzerland. Enjoy the read!

Asia & Australia
Alibaba and the industries   The Chinese e-commerce giant officially announced its move into the automobile space and unveiled its first smart car. In other news, Alibaba is reportedly interested to learn more about Spain's food and drink industry, while representatives visited the country. ▪
Woolies to spark price war   Analysts warn that the Australian supermarket giant is at risk of making 'irrational' price cuts, which will lead to a full blown supermarket price war. The challenge is that Woolworths must find a way to compete against a traditional supermarket, Coles, and a discounter, Aldi.  ▪
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Chinese take on brew deal   China Resources Beer, the owner of beer brand Snow, plans to raise US$ 1.2 billion in a Hong Kong share sale to help finance the purchase of the remaining stake in a Chinese venture with beverage company SABMiller. ▪
Robots start to deliver   Starship Technologies, an Estonian start-up, has kicked off a test programme in the UK, Germany and Switzerland that sees deliveries carried out by self-driving robots. One of the partners is German retailer Metro Group, which tested robots made by the Estonians in one of their stores a few weeks ago. ▪
British announcements   Supermarket operator Sainsbury's has warned of a possible loss of up to 600 head office jobs, while it is powering ahead with its GBP 1.4 billion takeover of Argos, but promises the deal will create hundreds of new roles. Meanwhile, rival Tesco supports the country's farmers and will invest GBP 12 million to help British Agriculture, especially potato growers. ▪
Litigation matters   Italian authorities are investigating whether consumer goods company Procter & Gamble has avoided to pay taxes in the country. In the UK, consumers are preparing a GBP 19 billion class action lawsuit against financial services provider Mastercard over "illegal" card charges. ▪
usa & canada
Walmart Pay reaches goal    The US big box retailer has completed the rollout of its digital wallet service across the United States and says that 88% of transactions are from repeat users. Walmart Pay works through the company's mobile shopping app. ▪
Walgreens beats expectations   The US drugstore chain giant has posted a better-than-expected profit in its third quarter. The Illinois-based company is still waiting for approval of its US$ 17.2 billion takeover of rival Rite Aid, but might not have to close as many stores as previously announced. ▪
Distribution decisions   Florida-based supermarket company Publix joins a growing number of retailers in offering grocery delivery service through a partnership with Instacart +++Minneapolis-based retail company Supervalu has signed an agreement with Marsh Supermarkets to serve as its primary grocery wholesaler.  ▪
Billions for Healthy Food   French yogurt maker Danone is making headlines with a US$ 12.5 billion deal (paywall) to purchase US organic foods producer WhiteWave. Danone is keen on adding the best-selling US soy milk brand Silk and expanding in organic food. It is believed to be the food giant's biggest acquisition in almost a decade.   ▪


developments to watch
Tackling Brexit   The Food and Drink Federation, which represents the UK food and drink manufacturing industry, has launched a manifesto to help its members cope with Brexit - “UK’s most significant peacetime challenge ever”, according to its director general Ian Wright. ▪
Tea revolution in Britain   A brand called ‘No More Tea Bags’ has been introduced in the UK, aiming to shake up the tea market. Founded by serial drinks entrepreneur Guy Woodall, it is based on a new patent which allows for liquid teas to be contained in an aerosol style recyclable can. ▪

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