News

Delivery service Jimmy Brings has launched a range of convenience products to augment its liquor line-up.

The range includes condoms, chips and dips, painkillers, drinks and more, and spans 231 inner-city suburbs across Sydney, Melbourne and Brisbane. 

Aiming to provide customers with convenient services, Jimmy Brings said Australians can place their orders and follow Jimmy’s activities via the app.

Luke Calavassy, head of Jimmy Brings, said Jimmy’s entry into the convenience market is a “natural step” toward elevating its “ultra-convenience services”.

“From impromptu family pop-ins to parties with your friends, our new non-liquor range makes it easier for our customers to get more of what they want from us,” said Calavassy. 

Customers can order all the essentials by visiting Jimmy Brings’s website or downloading the Jimmy Brings app. 

Multibrand food chain franchisor Retail Food Group says sales across its domestic network have grown 16.5 per cent in the first 21 weeks of this year.

The company owns and operates Gloria Jean’s, Crust Gourmet Pizza, Donut King, Brumby’s Bakery, Cafe2U Michel’s Patisserie, Pizza Capers and The Coffee Guy.

In August, the business reported that its tax-paid profits increased threefold to $5.3 million in its full-year results.

Continuing into the new financial year, same-store sales are up by 20 per cent with Donut King performing particularly well, up by 47.6 per cent.

Customer visits to stores have grown by 20.6 per cent during the quarter to date, although staffing shortages are an ongoing issue for many outlets.

To alleviate operational pressures, the company says it has launched a baker recruitment program in partnership with the state-based TAFEs to create career opportunities.

For the first half of this year, 32 new outlets were opened while an additional 50 stores are planned across 16 countries in the remainder of FY23 (which includes four new US-based Gloria Jean’s drive-thru outlets).

In its international division, the company has reported that restructuring activity and improved trading conditions boosted underlying EBITDA by 35.5 per cent last financial year.

Estee Lauder has acquired luxury fashion label Tom Ford for US$2.8 billion, marking Estee Lauder’s biggest acquisition yet. 

Once the deal is completed next year, Estee Lauder will become the sole owner of the Tom Ford brand and all of its intellectual property. The company expects to fund this transaction through a combination of cash, debt and $300 million in deferred payments to the sellers that become due beginning July 2025.

“As an owned brand, this strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” said Fabrizio Freda, president and CEO at Estee Lauder. 

“It will also further help to propel our momentum in the promising category of luxury beauty for the longer term, while reaffirming our commitment to being the leading pure player in global prestige beauty.”

Under the agreement, Tom Ford, founder and CEO of Tom Ford International, will continue to serve as the brand’s creative visionary after closing and through the end of next year. Domenico De Sole, chairman of Tom Ford International, will stay on as a consultant until that time.

The owner of the Zegna and Thom Browne brand, Ermenegildo Zegna Group has also signed an agreement to enter a long-term license for Tom Ford fashion with Estee Lauder. As part of this transaction, Zegna will acquire operations of the Tom Ford fashion business necessary to perform its obligations as a licensee. The brand’s current license with Marcolin will also be substantially extended.

Shoppers should expect to pay more for premium steak as Australia’s biggest beef producer seeks to continue raising its meat prices to boost profits.

Just don’t expect that to translate into juicy payouts for shareholders, with the stock closing nearly 5 per cent lower on Thursday after the company signalled no end to its 14-year dividend drought.

The Australian Agricultural Company (AACo) reported a 27.7 per cent increase in operating profits to $38.3 million in the six months to September 30, compared to the same period last year, which newly installed chief executive David Harris said was the result of a 19 per cent rise in meat prices per kilogram during that period. And he flagged prices will continue to climb.

“We’ll keep pushing until we potentially find [the price ceiling],” Harris told this masthead.

The half-year results were Harris’ first in his new role of chief executive, which he stepped into only a month ago after former CEO Hugh Killen resigned suddenly in June. Harris has been with the company since 2016, and has been its chief operating officer since 2020.

Over the first six months of the year, AACo raised its prices for premium wagyu beef by 26 per cent to $22.06 per kilogram compared to the same time in 2021 and nearly doubled its proportion of meat sales to Europe and the Middle East (9 per cent to 17 per cent) as those regions recovered from COVID and dining out increased. Meanwhile, the percentage of sales in Asia and Australia dwindled slightly and sales in North America remained steady.

AACo will continue to rotate its focus between markets depending on where they are in the post-COVID recovery, Harris said.

“There’s still such an untapped opportunity, so many markets we haven’t been to yet, so many places that haven’t experienced wagyu, and that’s why you saw some movement between markets,” he said.

Even as consumers tighten their belts amid the rising cost of living, Harris expressed confidence that meat lovers would not turn away from its products. “I think consumers still value quality ... so instead of consuming [beef] three or four nights a week, you might go for higher quality, but you’ll only consume it twice a week.”

While operating profits were up, net profit slumped 38 per cent to $51.6 million, due to a lower valuation of the company’s herd as cattle prices came down from previous highs.

AACo’s investors appeared disheartened by the company’s outlook that acknowledged the rising cost of living, pointed to high inflation, cited the IMF’s lowest global economic growth forecasts since the global financial crisis and discussed the prospect of foot and mouth disease or lumpy skin disease in the next five years. AACo’s shares closed 4.96 per cent lower at $1.63.

The results also failed to mention any dividend payments. The company hasn’t paid out profits to shareholders in 14 years, and Harris gave no indication it would do so again in the near term.

“The dividend questions, in particular, I think are a matter for the board,” Harris said, adding that the company had been reinvesting back into the business.

“14 years is a long time,” he acknowledged. “I think what we also have to remember is the things and the conditions that we went through in that storm, we had some very significant droughts and floods, and we’ve got to build the business back.”

Brisbane-headquartered AACo is the country’s largest cattle herd operator, and also owns about 6.4 million hectares, or 1 per cent, of Australia’s total landmass.

More than half of the company (nearly 51 per cent) is owned by billionaire Joe Lewis, a British investor with a net worth of $7.7 billion who owns Premier League soccer team Tottenham Hotspur.

Iron ore billionaire and mining magnate Andrew ‘Twiggy’ Forrest owns a 17.4 per cent stake.

Liquor company Craft Revolution has named Campbell Speers as its new CEO. Speers will join Vaughan Thompson, sales and marketing director, to ensure the current portfolio’s strategic, financial, and operational leadership and work closely to acquire the distribution of new labels. 

The company has several liquor brands under its belt, including Estrella, Curatif, Tromba Tequila, Patient Wolf, Kona, Nusa Cana and High West Whiskey.

Speers’ most recent role was GM for Paramount Liquor, and during this time, he oversaw the development of the supplier relationship, national customer experience, national purchasing, and Victorian sales teams, along with the logistics and operations of the Victorian warehouse. 

Speers said he’s excited about the opportunity to join the company and continue its growth as one of the country’s leading alcohol distributors. 

“Craft Revolution is in great shape, and I look forward to expanding the portfolio and continuing to grow the current brands and to build on the outstanding knowledge and skills of the excellent, well-established team,” he said.

Mark Winter has been named permanent CEO of meal-kit delivery service My Food Bag, effective immediately.

Winter joined My Food Bag in 2019 as the CFO of the business and took over operations as interim CEO after the departure of Kevin Bowler on October 14 this year.

My Food Bag chair, Tony Carter, said the board is “extremely pleased” with the appointment.

“After careful consideration of the needs of the role and the desired attributes of our next CEO, the directors unanimously agreed Mark was the ideal candidate.”

He added Winter has in-depth knowledge of the business and continues to show leadership and commercial skills.

Winter added despite a number of challenges ahead, My Food Bag remains an exceptional business and he is “looking forward to leading it through its next phase and the initiatives already underway”.

The company has commenced a search for a new CFO while Jeremy Edmonds continues as interim CFO for the time being.

Coles Group boss Steven Cain believes the supermarket chain has hit the “sweet spot” with its widest range of items at low prices and groceries readied for click and collect pickup in under an hour as the battle for consumer convenience ramps up.

The supermarket chain has shaved 30 minutes from its click and collect boot delivery service with the launch of its Coles’ Rapid Click & Collect at its next-generation supermarket at Southland in Victoria, where its largest collection point site sits, and new technologies are being trialled such as digital scales.

Mr Cain told media that Coles Rapid Click & Collect in the future will be linked to the likes of home delivery partners DoorDash and Uber.

“Worldwide, what we’re seeing is a demand for fast (delivery). We’re seeing different pricing models emerging. Either you pay more for the product or you pay for a delivery charge. I think everyone’s still exploring what the right model is,” he said.

“A lot of people are going down that 15 minute and even 30 minute route. It doesn’t seem to be economically viable at the moment, and so we think an hour right now is the sweet spot in terms of working for us, but it’s working for customers, as well.”

Groceries within minutes are all the rage with start-ups raising tens of millions of dollars, but many have gone under given the tough economics. Uber has begun partnering with grocers in some markets to offer rapid grocery delivery, while Woolworths launched Metro60 in Melbourne and Sydney for home delivery. These services have a smaller selection of items to choose from.

But customers who opt to use Coles’ Click & Collect in under an hour can order from an extended range of more than 20,000 products, some of which – such as hot roast chicken – are not typically offered for home delivery. Customers can also select from a range of local and international beer, wine and spirits from selected stores.

Rapid Click & Collect service is available in almost 400 Coles stores around the country, and the offer will roll out to an additional 200 stores early next year. Coles launched the original Click & Collect service in February last year with a 90-minute delivery offer.

Mr Cain said customers are increasingly demanding more convenience when shopping, and were seeking out omnichannel solutions that allowed them to shop anytime, anywhere and anyhow.

“Our research shows the number one consideration for online shoppers is convenience and for click and collect customers it’s immediate collection,” he said.

Sales growth

Customers can place an order for up to 40 items, with a minimum spend of $30 and a flat fee of $5 for orders to be picked, packed and ready for collection in under 60 minutes between 8.30am and 4.30pm daily.

Over the 2022 financial year, Coles supermarket e-commerce sales grew by 41 per cent to $2.8 billion with penetration of 7.9 per cent compared with 5.8 per cent in the previous year.

Coles Online increased its network coverage with 95 per cent of Australians now having access to home delivery. The Click & Collect network expanded to more than 740 stores with Click & Collect to the boot of car available at more than 670 stores.

The launch of Rapid Click & Collect comes as Coles opens its next-generation supermarket in Melbourne’s Cheltenham, which will have digital ticketing in some aisles in fresh produce and grocery which eliminates the need for paper tickets and automates price changes.

Digital scales in the fresh produce will use artificial intelligence to automatically detect the fruit or vegetable weighed to speed up shopping, while the deli area will have a new queue monitoring technology to shave waiting times for customers.

Mr Cain noted that fresh food inflation is “moderating a little” and he still expects a strong Christmas sales with shoppers “pushing the boat out” to celebrate. He is still tipping a moderation of inflation for most industries in the first quarter of next year.

The nation’s second-largest supermarkets chain will also offer its first convertible hybrid checkout where a trolley can be used, and will rotate between self-service or staffed.

Mr Cain said Coles aimed to improve efficiencies and speed of service while reducing waste through initiatives such as BYO containers at the deli, scoop and weigh, frozen fruit, fruit and veg bar and the pet treat bar.

Goldman Sachs analyst Jeff Pehl outlined in a note that although Australia lags offshore markets such as the UK and US in online grocery penetration, there is no shortage of customer demand for omnichannel and online grocery solutions.

“Retailers are continuing to delve into different infrastructure solutions (ie brick and mortar stores, click and collect and delivery) that optimise customer convenience and accessibility,” he said.

Mr Pehl noted that Australia’s geographic and population density were an additional consideration for retailers when assessing the economics of supply chain solutions, but since supermarkets were mostly conveniently located they provide the opportunity for existing store networks to be utilised as retail micro-fulfilment centres which was an advantage given lower capital outlay.

Some of Australia’s biggest food suppliers expect double-digit price rises over the next two years, as supply chain disruptions, labour shortages and natural disasters push up the cost of Christmas staples.

With festive season price shocks locked in for consumers next month, Independent Food Distributors Australia chief executive Richard Forbes said price rises of between 6 per cent and 8 per cent were expected in both 2023 and 2024.

Amid historic flooding and post-pandemic logistics pressures, the National Food Supply Chain Alliance is lobbying the federal government to support the creation of a national food security plan.

Mr Forbes said the rising cost of living reflected global geopolitical tensions, transport and logistics pressures, and soaring operational costs for businesses.

“Without a proper strategy, we’re going to continue to be under-prepared,” Mr Forbes told The Australian Financial Review.

“We have a renewable energy strategy, but we don’t have a bloody food plan. We need to stabilise food prices, and we need to reduce the food shortages that we’ve seen over the past year or two.

“The only way we can do that is prepare better.”

Food prices are increasing at their fastest rate in 16 years, according to the Australian Bureau of Statistics.

Annual inflation in food and non-alcoholic beverage prices hit 9 per cent in the September quarter, thanks to broad-based price rises across most supermarket products.

Consumers are now paying 5.8 per cent more for fish and other seafood than they were last year, 12.1 per cent more for dairy products, 16.2 per cent more for milk, and 8.6 per cent more for poultry.

Foodbank’s 2022 Hunger report showed at least 2 million Australians were struggling to put food on the table, with as many as 1.3 million children at risk of going without essentials.

Mr Forbes has met with government and opposition MPs in Canberra, representing groups including the National Farmers Federation, AUSVEG and Restaurant and Catering Australia.

John Fragopoulos, a major seafood retailer in Canberra, said climate change was hurting variety and quantity in Australia. His business, FishCo Fish Market, is already receiving orders for Christmas.

“It is the first time we’ve had Christmas orders this early in the year,” he said.

Prices are high, but demand has not dropped significantly.

“The humble little flathead, which a few years ago we were buying for $6 or $7 a kilo, is now up to $14 a kilo. This is because the demand is there, but not the catches,” Mr Fragopoulos said.

“King prawns have already gone up to $50-plus a kilo. It’s too early to pay those prices but this is what the price is on the auction floor at Sydney Fish Market.

“It is the same thing for Balmain bugs and lobsters. Mud crabs have escalated to the price of lobster. A few weeks ago we bought live mud crabs for more than $70 a kilo, while lobsters were less than $70.”

Seafood Industry Australia chief executive Veronica Papacosta said supply chain and labour shortages were hurting, but there was abundant supply of prawns, snappers, barramundi, salmon and ocean trout.

“There is still going to be a really nice abundance of western rock lobsters in the domestic market. Consumers can expect to find these in stores for between $30-35 each.

“It’s been a tough season for Sydney rock oyster growers with the loss of the Port Stephens oyster farms and the ongoing rain events along our eastern coast. This will put pressure on the supply available, but the Sydney rock oysters in-market are of fantastic quality.”

Deputy opposition leader Sussan Ley met the group in Canberra. She said the nation’s food supply chain was being taken for granted by federal Labor.

“The reality is Australians will pay more for their Christmas spread because the Albanese government hasn’t got its act together to support our food manufacturers and distributors.”

Foodland Supermarkets is set to open a unique “community-minded” liquor chain in South Australia early next month.

Dubbed ‘Local Cellars’ – the stores will sell local wines, craft beers and spirits depending on the region or location – while providing customers with what Foodland describes as “a premium shopping experience”.

Foodland Supermarkets CEO, Franklin dos Santos, said launching the liquor chain was the “next step” in the retailer’s growth pipeline.

“South Australia has some of the best wines, beers and spirits in the world and we want to encourage local producers in the community to prosper.

“The benefit of this approach is that we’re creating less emphasis on the need for transport which will minimise our impact on the environment.”

The first Local Cellars store will open in Renmark with more than 10 planned across the state before March next year.

In addition to local alcohol, the stores will also stock other South Australian complementary beverage brands and mixers. The stores will operate either next to a Foodland supermarket or as a stand-alone separate family business.

In November 2020, the retailer invested $300 million into a five-year plan to refurbish and add new stores in South Australia.

Dan Murphy’s has been given the green light by the ILGA (Independent Liquor and Gaming Authority) to open a premium outlet in Sydney’s CBD.

The approval followed the city’s consent earlier this year for the fit-out and use the former Lindt Cafe site as a premium wine store for the liquor company. 

In its decision, ILGA announced the site would trade as a “premium wine store, targeted to wine enthusiasts to discover and experience premium wines” and will be a “boutique operation compared to a typical Dan Murphy’s store”, reports the Daily Telegraph.

Conditions for the approval include that the outlet close for six hours between 3 am and 9 am, have CCTV, contact police about any incidents and maintain an “incident register”.

The liquor company proposed to trade seven days from 9-10 pm and 10-10 pm on Sunday.

After announcing the decision last week, ILGA mentioned it received an objection from the NSW Police because it had concerns about opening an outlet in a “sensitive area” and was “inappropriate for a liquor license to be issued at the location”.

ILGA responded that NSW Police has “conceded” that the City of Sydney had approved the location to “trade as a bottle shop”.

Endeavour Group, which owns Dan Murphy’s, announced it had taken “all steps possible” to respect the victims and survivors of the terror siege that happened in the building in December 2014.

A spokesperson from ILGA said the authority was satisfied the company “behaved appropriately” and consulted directly with the victims’ families. 

“After much consideration, the authority agreed that Dan Murphy’s proposal was in line with the retail character of the area, did not increase the density of packaged liquor outlets in the CBD, and demonstrated appropriate harm mitigation strategies,” it added.