The dairy industry Down Under is in the spotlight in today's issue. Australia's big supermarkets, including Aldi, have pledged to raise the milk price to support the nation's struggling farmers. Across the Tasman, cooperative Fonterra has returned to black numbers and is tipped to sell its European business. Enjoy the read!




Wednesday, 20 March 2019





Hello ,

The dairy industry Down Under is in the spotlight in today's issue. Australia's big supermarkets, including Aldi, have pledged to raise the milk price to support the nation's struggling farmers. Across the Tasman, cooperative Fonterra has returned to black numbers and is tipped to sell its European business. Enjoy the read!

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Asia & Australasia


Global restructuring ▪ Metro has kicked off the sale of its China business, valued up to USD 3 billion. The German wholesaler operates 95 stores in the country. At the same time, the retailer is investing in Myanmar, where it has opened a massive logistics centre near Yangon.



Dairy developments ▪ New Zealand-based Fonterra has posted a half-year profit and announced the sale of its European operation. In Australia, grocery chains Coles and Aldi have raised the price of home-branded milk sold at their Australian stores by 10%, following the steps of supermarket rival Woolworths.



Better connected ▪ In a bid to ensure that suppliers are able to better communicate and engage with customers, Australia's Woolworths has launched Cartology, a standalone media business. The new unit will progressively replace the existing media selling model within the group.




Europe


Croatian merger talks ▪ Retail chain Studenac, the sixth biggest grocer in Croatia with more than 360 stores, is set to acquire rival Istarski, who operates 110 supermarkets in Istria and Rijeka. Provided it gets the green light, the transaction might create a new market leader on Croatia's Adriatic coast.



Solid performances ▪ Online grocer Ocado announced a healthy 11.2% revenue growth in its first quarter despite the impact of a huge fire at its flagship distribution centre last month. Over in Poland, retailer Dino Polska has posted like-for-like sales growth of 11.6% in full-year 2018, driven by investments in new stores.



Bleak outlook ▪ Struggling stationery chain Office Outlet, formerly known as Staples, is the latest UK high street retailer to go into administration, putting 1,200 jobs at risk. British fashion chain Bonmarché is also in troubled water and has issued a profit warning after tough trading in March.




The Americas


Growing overseas ▪ Ikea is reportedly on the lookout for its first location in Mexico as part of its expansion plan in Latin America. It aims to battle competition in Europe and the US, where the Swedish furniture retailer will open its first city centre location, dubbed Planning Studio in New York in April.



Strategic sale ▪ Supermarket chain Kroger has announced to sell its Turkey Hill business to an affiliate of private equity firm Peak Rock Capital. Turkey Hill, which has nearly 800 workers, produces milk, ice creams, frozen dairy treats, iced teas and fruit drinks.



Reporting results ▪ Canada-based Alimentation Couche-Tard missed the estimates with their quarterly profit, despite posting record earnings. The convenience store operator, who runs more than 8,000 outlets in the United States, has been expanding its business with new acquisitions recently.




What to watch


Consumer loyalty ▪ A report from Feedvisor reveals how committed Amazon shoppers are. Almost three-quarters of 2,000 surveyed American consumers and nearly all surveyed current Prime members are more likely to buy products from Amazon than other e-commerce platforms.



Fashion threat ▪ A survey from Global Data takes a closer look at the growing interest in used fashion over new clothes. Last year, the second-hand apparel market in the US was worth USD 24 billion and is predicted to reach USD 64 billion in 2028, while fast-fashion is said to be worth USD 44 billion at the time.