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Margaret River has again shown it can produce world-class wines not limited to its traditional varieties of cabernet and chardonnay at the 2018 Wine Show of WA.

And German retailer Aldi also proved its previous honours on the national wine show circuit were no flash-in-the-pan wins.

Local winery Stella Bella won best wine of show at WA's most prestigious wine show for its 2017 Shiraz, the $32 wine judged best from a field of nearly 850 that were tasted at the show in Mount Barker.

And Aldi claimed best white wine and best chardonnay of show for its $15 2017 Blackstone Paddock Limited Release Chardonnay, a remarkable feat given this year's judges praised the high standard of the 2017 chardonnay class.

Wine judge Lim Hwee Peng was in town for the 2018 Wine Show of WA.
Wine judge Lim Hwee Peng was in town for the 2018 Wine Show of WA.
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The most successful exhibitor at the show for the throng of experienced local, national and international judges was Cherubino Wines, which recently opened its new cellar door on Caves Road in Margaret River.

The judging panel said the standout class this year was the 2017 chardonnay class, with 108 entries that garnered eight gold medals, while the 2018 rieslings also impressed with six golds from the field of 44 wines.

The 41st edition of the annual wine show drew 834 entries from 115 producers among all nine of WA's wine regions, with 592 medals awarded (340 bronze, 166 silver and 86 gold).

Celebrated Singaporean wine judge Lim Hwee Peng joined new chief judge of show, Tasmanian winemaker Samantha Connew, who said the judging illustrated the strength of WA wines on the national circuit, particularly in the riesling class.

Margaret River winery Stella Bella won best wine of show for its 2017 Shiraz.
Margaret River winery Stella Bella won best wine of show for its 2017 Shiraz.
"These wines show a breadth of different styles, from classic linear purity to funkier, slightly worked wines," she said.

"While we expect both chardonnay and cabernet to be world class in this show (and they undoubtedly were), other varieties and styles put in a strong showing.

“Malbec impressed both as a straight varietal and as part of blends, showing the regional promise of this variety for the future.

“Some lovely 2017 shiraz demonstrated real purity of fruit with deft winemaking guiding the way in terms of vibrant, medium-bodied wines with judicious use of oak and stems.

“The 2017 chardonnays were a very strong field as always and with the cooler vintage showing through in tighter, more coiled wines, these will provide good drinking for some time to come.

"Finally, it was pleasing and very apt to be able to award the Gladstone’s Trophy to a fortified, a nice nod to the Swan Valley and its historical contribution to the WA wine industry."

A recent WAtoday taste test of Aldi's wine offerings on the eve of selling liquor in WA for the first time proved the wines were nothing to sneer at and the German retailer had established a solid wine buying program .

Aldi recently won two trophies at the 2018 Riverina Wine Show and in the past 12 months has won gold for the following wines:

• Veuve Olivier Brut NV - $7.99
• Kaiora Bay Marlborough Sauvignon Blanc 2017 and 2018 vintages ($8.99)
• Kaiora Bay Reserve Marlborough Sauvignon Blanc 2017 ($11.99)
• Reserve Les Maurins Sauvignon Blanc 2017 ($11.99) (3rd year in a row) (Seasonal)
• A.C. Byrne Margaret River Chardonnay 2017 ($9.99)
• Claire Creek Merlot 2017 ($5.99)
• The Pond Cabernet Sauvignon 2017 ($6.99)
• 5171 McLaren Vale Cabernet Sauvignon 2016 ($11.99)
• Chateau Les Maurins Bordeaux 2016 ($9.99)
• El Toro Macho Superior 2016 ($4.99)
• El Toro Macho Reserva 2014 ($6.99)
• Coraggioso Nero D’Avola 2017 ($4.99)
• Chateau La Diffre Plan De Dieu (Cote Du Rhone Villages) 2016 ($9.99) (Seasonal)
• Pajaro De Buen Aguero Ganarcha 2016 ($9.99) (Special Buy)
• Taylors Special Release Clare Valley 2016 ($14.99)

Aldi Australia buying director Jason Bowyer said recognition from judges in WA and interstate was extremely pleasing.

"Winning four trophies this year in a highly competitive show circuit is testament to the genuine quality of our wines," he said.

"Our team of suppliers and winemakers both domestic and abroad have achieved outstanding results.

To win golds across price points from as low as $4.99 through to our premium wines, shows that we committed genuinely to value at every price point.

This is rarely seen in any other retailer domestically and internationally."

WA Wine Show panel leaders included Courtney Treacher from Brookland Valley Wines, Kim Horton from Willow Bridge and winemaker Peter Bissell from Balnaves of Coonawarra.

2018 Wine Show of WA : Trophy Winners
Best Wine of Show
Stella Bella 2017 Shiraz

Best Red Wine of Show
Stella Bella 2017 Shiraz

Best White Wine of Show
Blackstone Paddock 2017 Limited Release Chardonnay

Most Successful Exhibitor Overall
Cherubino Wines

Most Successful Exhibitor (under 250 tonnes)
Castle Rock Estate

Winery with the Highest Aggregate for top 3 pointed wines
Houghton and Xanadu (equal winners)

Best and Most Distinctive Regional Character
Houghton NV Cellar Reserve Rare Liqueur

Best Great Southern White
Castle Rock 2018 Porongurup Riesling

Best Great Southern Red
Ferngrove 2017 Black Label Malbec

Best Chardonnay
Blackstone Paddock 2017 Limited Release Chardonnay

Best Riesling
Castle Rock 2018 Porongurup Riesling

Best Aged Riesling
Alkoomi Wines 2010 Black Label Riesling

Best Sauvignon Blanc
Franklin Tate Estates 2018 Alexanders Reserve Sauvignon Blanc

Best White Blend
Deep Woods Estate 2018 Ivory Semillon, Sauvignon Blanc

Best Dry White Varietal
Juniper 2017 Small Batch Fiano

Best Rose of Show
Rockcliffe Winery 2018 Third Reef Rose

Best Pinot Noir
Castle Rock 2017 Porongurup Pinot Noir

Best Shiraz
Stella Bella 2017 Shiraz

Best Cabernet Sauvignon
Xanadu 2014 Cabernet Sauvignon

Best Red Blend
Ironcloud Wines 2017 Rock of Solitude Purple Patch GSM

Best Other Red Varietal
Ferngrove 2017 Black Label Malbec

Best Older Red Wine
Xanadu 2014 Cabernet Sauvignon

Best Sparkling
Pemberley NV Sparkling Lustre Chardonnay, Pinot Noir

Best Fortified or Sweet Wine
Houghton NV Cellar Reserve Rare Liqueur

Wesfarmers is looking to explore new investment opportunities and better leverage its existing data and digital opportunities, if shareholders approve its proposed demerger of supermarket subsidiary Coles on November 15.

In a series of documents released to the ASX on Friday, October 5, Wesfarmers said that the move to spin off Coles into a separately listed entity will enable it to invest in businesses with higher future earnings prospects.

Coles contributed just 35 per cent of Wesfarmers’ earnings in the 2018 financial year, despite accounting for 64 per cent of the conglomerate’s employed capital.

The group said its strong balance sheet and cash generative assets will create new investment opportunities post-demerger, while Coles is expected to benefit from Australia’s population growth and improving disposable income and consumer sentiment metrics moving forward.

Coles currently holds 31 per cent of the Australian supermarket sector. Rival Woolworths holds 38 per cent and German up-and-comer Aldi holds 10 per cent.

The supermarket revealed plans to improve the supply chain with two automated distribution centres over the next five years and continue rolling out consumer-centric initiatives in each of its divisions, including supermarkets, liquor, convenience and loyalty.

Coles is partnering with logistics solutions provider Witron on the automated distribution centres, which are expected to reduce costs and increase productivity over the medium to long term. The project is expected to cost between $600 and $800 million in capital expenditure.

Wesfarmers in August reported full-year earnings before interest and tax (EBIT) of around $4 billion. On Friday, it revealed that without the Coles business, the group’s EBIT would have been around $3 billion, while Coles’ EBIT would have been around $1.4 billion.

Wesfarmers shareholders will vote on whether to go ahead with the demerger on November 15. If the plan is approved, Coles will list on the ASX the following week.

With hindsight, Rob Scott's decision to bring Steve Cain back into the fold as chief executive of Coles was always going to create a few little timing issues heading into Wesfarmers' demerger of the supermarket business.

Cain officially started with the group in September, and made his first public appearance as Coles boss with Scott last Friday when Wesfarmers' released the documents underpinning the Coles spin-off.

Cain previously ran Coles for 14 months between 2003 and 2005. But most importantly, he worked with Wesfarmers on its acquisition of Coles in 2007. Scott announced Cain's appointment and the retirement of current Coles boss John Durkan in March, when it first announced the demerger.

But at the time Cain was running Metcash's $10 billion supermarkets and convenience business, so Scott's decision came with two costs.

First, as the demerger documents showed, Coles had to pay Cain a $3.9 million cash sign-on bonus as compensation for lost bonuses at Metcash.

Second, his employment conditions at Metcash meant Wesfarmers had to wait until it was well into the demerger process until Cain officially got his feet under the desk. This meant, for example that Cain wasn't involved in the preparation of Coles' five-year strategic plan, which was delivered in June.

On Friday, Cain committed to the broad thrust of that plan – particularly the focus on growing fresh food sales, and the move towards everyday low prices, with fewer and deeper discounts – but also left room for smaller changes.

"I'll get into the detail of it all and look at each individual component – but it will be about how fast we can execute it and how well we can execute it," Cain told investors.

Any strategic shifts, he said, would be detailed when Coles presents its half year results, likely in February.

Wesfarmers chief executive Rob Scott says investors don't need to fear the prospect of Cain making major strategic changes just months after Coles lists in late November.

"Part of the reason for selecting Steven as CEO is he's obviously very experienced, but he also sees things in a similar way to us around strategy," Scott told Chanticleer on Sunday, on the eve of an investor roadshow that will naturally have a big emphasis on the Coles deal.

Scott expects any strategic tweaks to be at the margin, and will be focused on faster execution of the existing plan.

More important for Scott is that any changes Cain needs to make will occur against the backdrop of improving sales and earnings at Coles. Same-store food and liquor sales grew in the June quarter at the strongest pace in two years, rising 1.9 per cent (adjusted for Easter), helping to boost June-half earnings 3 per cent after a 14 per cent fall in first-half profits.

Coles' highly successful Little Shop promotion has likely provided a further boost; Coles will hand down its September quarter sales numbers on October 15.

"The positive for Steven is he's coming into a business with positive momentum," Scott says. "I have no doubt he will put his own touches and stamps on the businesses."

BAML analyst David Errington was critical of the incentive structure for Cain detailed inside the demerger documents – or rather, not detailed, given Errington felt the disclosure was light on.

Errington also didn't like the fact short-term incentives are 100 per cent cash, as was the sign-on bonus.

Again, Scott urges investors to look at context and timing.

"The incentive arrangements for this for Steven are very much focused on what is a transitionary year."

For example, Scott says the bonus scheme for the next 12 months needed to reflect the fact Cain joined Coles part-way through the new financial year, when budgets had been set.

He says the Coles board will need to review this pay structure once the demerger is completed.

Investors will no doubt be watching closely, and will expect a better level of detail once Coles is on its own.

The new boss of Coles, supermarket veteran Steven Cain, will make his mark in the nation’s $90 billion grocery sector by driving one of the biggest shake-ups of Coles in more than a decade. It will see him kick out under­performing brands, narrow the range of brands within categories and fill the shelves with more private label goods.

Unveiling his five-year plan to the market yesterday, Mr Cain showed some of the steely determination and ruthlessness that have characterised his decades-long journey through the Australian and British retail sectors, as he confidently declared Coles would maintain its competitive edge by squeezing prices further.

Also under the gun would be brands that either failed to inspire shoppers or were merely mirroring what was already on offer — something Mr Cain said he had witnessed over his many years in the sector.
There is clearly more of an opportunity in the grocery space to differentiate and simplify ... but the way certainly I have seen these thing work in other places is that the big brands tend to get bigger, and brands that are just duplicating ... get smaller,’’ Mr Cain warned.

And Mr Cain showed he was a man in a hurry, as was his hallmark when tried to rescue a then failing Coles food arm back in 2003, before he was ejected from the business.

He has now returned with a much more powerful mandate from parent company Wesfarmers and a newly formed Coles board to drive through his changes at a rapid pace.

“The focus for me is getting on at it and as fast as we possibly can because that is a competitive advantage,’’ Mr Cain said.

“It will be about how fast we can execute it, how well we can execute it.’’

He has pledged that Coles will cut deeper on prices to put more grocery products on everyday low pricing while pulling back on heavily discounted promotions, and he believes private label, or supermarket-owned brands, should increasingly take shelf space.

Mr Cain could be about to start a war on two fronts when Coles emerges as a stand-alone ASX-listed company on November 21.

Stripping out some grocery brands could infuriate suppliers, while lower shelf prices could trigger a new price war with Woolworths.

During his maiden press conference and briefing with analysts Mr Cain fleshed out his five-year plan for Coles, after details of the $20bn demerger from Wesfarmers were released late on Friday.

“Obviously we will maintain our relative competitiveness in the market — that is not something that anyone wants to lose, the good work that has been done,’’ Mr Cain said. “Going forward, as we have said, more everyday low pricing, more own brand and fewer, deeper promotions is, we believe, the way forward.

“We will remain competitive on price and make sure that at Coles you are getting very good value.

“When I look at the five-year plan, that plan is to be better value in five years’ time than we are today.’’

Mr Cain, who has spent the past few weeks in the role touring supermarkets, said shoppers would notice changes to the stores under his watch and the curating of individual stores’ ranges to better serve local, ethnic communities, as well as improving its health food categories.

But the new boss of Australia’s second-biggest supermarket chain seems to have private label and the duplication of products high on his agenda.

“I’ll certainly have a watchful eye on simplification and removing duplication, but equally we know we have to do more on unique own brand products (private label) and we have got to do a better job for matching the stores for the local customer base.’’

Mr Cain wouldn’t nominate a target for private label penetration in Coles stores but said in some grocery categories there would be greater own-brand selection and fewer outside brands.

“In broad terms I would expect to see more small brands, smaller innovative brands in the store.

“I’d expect to see the removal of some duplication in some categories, particularly those in decline, and I’d expect to see more innovation in own-brand products around exclusive lines.’’

Mr Cain wouldn’t say which categories were “in decline’’.

However, there would be new brands, and not just private label, with suppliers able to benefit from this, he argued.

“The key to success will be around innovation and bringing new things to customers. By the way there will also be lots of new brands coming in, not just own brand and around that sort of ethnic and health space.

“The good news for suppliers is that the business is growing.

“I think it has had 43 consecutive quarters of growth. When we are growing it means the supplier base is growing.’’

Details released by Wesfarmers to the market yesterday showed Coles Liquor had sales of $3.3bn in 2018 and pre-tax earnings of $130m, while its convenience stores had sales of $5.8bn and pre-tax earnings of $133m.

But the once-struggling liquor arm of Coles, which includes its Vintage Cellars and Liquorland banners, has begun to turn around.

The Coles demerger scheme booklet shows that its liquor business on a pro-forma basis had pre-tax earnings of $100m in fiscal 2016, rising to $138m in 2017 and slipping to $130m in 2018.

However, Coles convenience stores reporting earnings of $190m in 2016, and the same in 2017, falling to $133m in fiscal 2018.

Coles has also shown to be holding $1bn of freehold property on its books.

ELI GREENBLATSENIOR BUSINESS REPORTER
Eli Greenblat has written for The Age, Sydney Morning Herald and Australian Financial Review covering a range of sectors across the economy and stockmarket. He has covered corporate rounds such as telecommunica... Read more

Soft drinks giant Coca-Cola is adding another Australian drinks company to its portfolio with the announcement of a minority stake in beverage company Made Group.

Coke has purchased a 45 per cent stake in Made Group in a joint acquisition with local drinks distributor Coca-Cola Amatil.

Made Group is known for leading Australian beverage brands including Cocobella, Rokeby Farms, Impressed and the company’s first brand, NutrientWater, which was launched in 2005.

Their portfolio appeals to Australians looking for healthier beverage options including cold-pressed juice, high-protein smoothies, probiotic milk and coconut water as well as cold-brew coffee and yogurts.

The deal, for an undisclosed sum, will see co-founders Luke Marget and Matt Dennis remain in charge of the business with support from Coca-Cola Australia and Coca-Cola Amatil to grow market reach and distribution

madecoke

Made Group co-founder Matt Dennis said that the investment was a significant milestone in the company’s 13-year history.

“We are extremely pleased to have such experienced partners in helping unlock scale and growth, while we continue to focus on product innovation to match emerging consumer trends,” Dennis said.

“Our focus on improving the everyday lives of Australians aligns perfectly with Coca Cola’s strategy of becoming a total beverage company,” he added.

Dennis revealed plans to expand manufacturing in Melbourne with a state-of-the-art production facility which is in the final stages of development.

President of Coca-Cola Australia Vamsi Mohan said that the investment is another example of how Coca-Cola is transforming into a total beverage company.

“We are always looking to offer the new beverages that Australians want. Globally Coca-Cola has shown that we can build successful new brands through both acquisition and our long history of innovation. This investment is a perfect example of our desire to keep doing this in Australia,” Mohan said.

“The Made Group’s capability in agile innovation across its range, which includes premium juices, dairy and coconut water, is the perfect complement to our existing portfolio and growth plans and will help us ensure we provide Australians with beverages for all occasions,” he added.

Alison Watkins, Managing Director Coca-Cola Amatil Group, said the investment is an important link in the Accelerated Australian Growth Plan for Coca-Cola Amatil and Coca-Cola Australia, which aims to bolster performance in attractive growth categories and embrace innovation.

Retail giant Wesfarmers has requested a trading halt pending an announcement on its planned $20 billion demerger of supermarket chain Coles.

On Friday morning, the Perth-based conglomerate requested a trading halt until Tuesday, or until it made an announcement about Coles.

In March, Wesfarmers announced its “once in a decade” move to spin off Coles Group, its largest division which it bought in 2007, and list it on the ASX.

Coles accounts for 60 per cent of the conglomerate’s employed capital, but only 34 per cent of earnings.

In August, the company said it would retain 15 per cent of Coles post-separation in order to facilitate growth initiatives and retain a strategic alignment, while also telling investors the sale would allow it to focus on generating cash for its leading stores moving forward.

Wesfarmers suffered a 58 per cent drop in FY18 net profit after taking more than $1.3 billion in costs and losses on its disastrous Bunnings UK exit and a $300 million writedown on underperforming Target.

“Following the decisive actions taken to address underperformance and reposition the Group’s portfolio, Wesfarmers is well placed to deliver sustainable growth in earnings and improved shareholder returns,” the company said in a statement.

Coles, which is expected to be spun off by November, recorded a 6.8 per cent drop in earnings to $1.5 billion for the last financial year.

The demerger will be effected by a scheme of arrangement, under which eligible shareholders will receive one Coles share for every Wesfarmers share held.

When the demerger was announced, Deustche Bank analyst Michael Simotas said it was a positive move.

He said it showed Wesfarmers managing director Rob Scott was taking an “active approach” to portfolio management.

The group recently proposed the appointment of three non-executive directors to complete the new board of Coles, adding to the four previously announced.

Wesfarmers is expected within the next few days to release the key details around its planned $20 billion demerger of Coles, forcing analysts to reconsider the investment opportunity for the nation’s second-biggest supermarket chain and its competitive edge against Woolworths.

Coles is expected to emerge as a newly listed independent company with superior store sales growth compared to archrival Woolworths, although the chain will face the headwinds of costs associated with the phasing out of plastic bags at its stores.

Coles also gained an advantage over Woolworths thanks to its popular Little Shop collectables campaign that was mostly paid for by suppliers and, while it was highly successful, it is expected to have triggered extra labour costs as demand for the collectables was higher than expected, which required more staffing to stock shelves.

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Investors are awaiting the demerger documents from Wesfarmers that will provide the most insight and detailed financial information ever seen of the Coles business since it was bought by Wesfarmers in 2007.

JPMorgan analyst Shaun Cousins said in a note to clients yesterday that Wesfarmers had disclosed little on the subdivisions within Coles but this was expected to be disclosed in the demerger scheme booklet.

That booklet could be published as early as this week, with Coles to issue its first-quarter sales results on October 15.

JPMorgan is forecasting EBIT margins for Coles will remain below Woolworths in food, liquor and convenience. Mr Cousins said that, based on EBIT including new corporate costs (as a stand-alone Coles) and a 10 per cent discount to the Woolworths EBIT multiple, JPMorgan ascribed a value of between $18.3bn and $18.6bn for Coles.

Mr Cousins has revised upwards Coles’ first-quarter like-for-like sales growth, and revised downwards the first-quarter performance for Woolworths with Coles’ lead expected to extend into the second quarter.

JPMorgan is tipping Coles to now report first-quarter same-store sales growth of 4 per cent, up from an original forecast of 2.5 per cent, and for Woolworths to post 1.3 per cent growth, down from an original forecast of 1.8 per cent.

It would mean that Coles would regain crowing rights of having the fastest same-store sales growth, after being beaten by Woolworths for the past seven quarters, and comes at a perfect time as investors ponder an investment in Coles when it lists on the ASX later this year. But Coles would still face some headwinds, Mr Cousins wrote in his note.

“For fiscal 2019, the strong start to the first quarter is expected to be a positive with Little Shop expected to be break even due to significant supplier contributions, but plastic bag costs are a headwind,” he said.

“Plastic bag changes required additional labour (more hours due to slower checkout processing, more training due to the change in bags), which is expected to have offset the gain from no longer providing free plastic bags, with the profit on the sale of new plastic bags donated (as with Woolworths).

“Little Shop drove volumes more than expected such that more inventory was required in store to meet this higher demand, which in turn required more ­labour to stock shelves and working capital.”

There was also increased ­labour costs for Coles from a new EBA deal.

Mr Cousins said looking forward to the second half of 2019 and beyond, he forecast a return to leadership by Woolworths.

“Although expect periods of sustained success by one player or another to be less likely with less obvious mistakes, which have riddled both retailers over the past decade,” he said.

“However, we suggest that Woolworths is more likely to do better. We think Woolworths retains the superior long-term strategy, with Coles tactically ­better but risks remain with its strategy.”

One in five samples of local honey sourced along the eastern seaboard of Australia, including boutique brands, has been found to be fake, deepening the global scandal over the impurity of honey.

The study, which tested five raw samples of honey and 95 local and global-branded honey, found 27 per cent were adulterated. But the big shock was Australian honey. Of the 38 honey samples sourced from supermarkets and markets, 18 per cent, or almost one in five, detected adulteration. The states implicated in the scandal include Victoria, Queensland, NSW and Tasmania.

Professor Mark Taylor (right) and student Xiaoteng Zhou at Macquarie University have completed a survey of 100 samples of honey that shows Australia has adulterated honey.
Professor Mark Taylor (right) and student Xiaoteng Zhou at Macquarie University have completed a survey of 100 samples of honey that shows Australia has adulterated honey.
Photo: Wolter Peeters
It found that 23 per cent of the nine samples tested in Tasmania were adulterated, one out of two samples sourced from NSW were adulterated, a third of the six samples sourced from Queensland weren’t pure honey and 29 per cent of the seven samples sourced in Victoria were fake. Samples sourced from South Australia and Western Australian tested pure.

The testing was undertaken by the same high-security government lab used to test drugs seized by Border Force, the National Measurement Institute.

The scientific team, led by Professor Mark Taylor from the Faculty of Science and Engineering at Macquarie University and PhD student Xiaoteng Zhou, as well as Helen Salouros and Shiva Prasad, also highlighted issues with mis-labelling of geographic regions.
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The findings come weeks after the honey industry was put under the spotlight in a joint investigation by Fairfax and 7.30 in relation to imported honey. It embroiled some of the country’s biggest supermarket chains and Capilano’s Allowrie brand, which blends local and imported Chinese honey.

The latest study, peer reviewed and published in the Nature journal, Scientific Reports, and provided to a joint investigation by Fairfax Media and the ABC’s 7.30 ahead of its release, warns that mis-labelling compromises the confidence of customers and raises health and safety concerns.

“Blended honey of unknown origin has been known to contain antibiotics, toxins, irradiated pollen or even alkaloids with the potential to cause organ damage,” the study says.

It is titled "Authenticity and geographic origin of global honeys determined using carbon isotope ratios and trace
elements". Its findings are expected to put pressure on authorities to start testing local honey.

In Australia, authorities only test imported honey – 5 per cent is tested using the C4 sugar test
which is decades old and can’t detect syrups such as rice syrup which are used by fraudsters to
dilute honey.

Play Video'No bees, no crops': The problem with 'diluted honey' Play Video
02:45
'No bees, no crops': The problem with 'diluted honey'
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Fruit and vegetable magnate Robert Costa says it's important to protect the beekeeping industry, otherwise we could face trouble with food security.
Peter McDonald, the chairman of the Australia Honey Bee Industry Council (AHBIC), a peak
body for the industry, said local honey was not tested by the authorities.

A sticky situation.
A sticky situation.
Photo: Matt Golding
“It is up to the individual companies that actually buy the honey to then test,” he said.

Mr McDonald, who was briefed by Professor Taylor on the results of the study, said he didn’t believe Australia had a problem with honey adulteration and said customers should be confident what they are buying on the label is pure honey. “They should be very confident," he said.

“I would say there is not a problem in Australia, I am fully confident the Australian honey bee industry is clean and green and we have the best product in the world,” he said.

When asked why he was so confident, he said “I’m a beekeeper and I’m also chairman of the Australian honey bee industry council and I know bee keepers and they are honest, hard-working people and they are just using what nature is providing, bees are providing and they are producing it in a pure form and providing it to people to market.”

But he did concede that he couldn’t know that all beekeepers or producers were doing the right thing.

Professor Taylor said he was surprised at the findings from Australian-sourced honey. “We know that the issue of adulteration is a prevalent problem but we didn’t think it would be that persistent in Australia for Australian-produced products.”

He said the research was robust but believed the results could be conservative given the official honey test, the C4 test, was used, which has come under attack for its inability to detect substances used by fraudsters to beat the tests.

Peter McDonald, chairman of the Australian Honey Bee Industry Council.
Peter McDonald, chairman of the Australian Honey Bee Industry Council.
Photo: ABC
He said he used the official test used by authorities because he wanted to see whether there was a systemic problem in the honey industry.

“The only way to guarantee that you are getting real bona fide honey is to buy it from a local producer where you can see it coming out of the hive or you produce your own honey yourself. That’s really the only deadset guarantee at this moment in time,” Professor Taylor said.

The only way to guarantee that you are getting real bona fide honey is to buy it from a local producer where you can see it coming out of the hive or you produce your own honey yourself.
Professor Mark Taylor
The earlier investigation into imported honey tested 28 honey samples in a German lab that specialises in detecting fake honey using a new test known as Nuclear Magnetic Resonance (NMR).

Capilano denied its Allowrie blended honey brand wasn’t pure honey and criticised the NMR on the basis it wasn’t the official test for detecting honey authenticity and that the results of NMR testing between labs was inconsistent. It also criticised the size of the NMR database.

But the study prompted the Australian Competition and Consumer Commission (ACCC) to launch an inquiry into imported honey.

Professor Taylor said the survey did include some boutique brands and it came from a range of providers.
Professor Taylor said the survey did include some boutique brands and it came from a range of providers.
Photo: Wolter Peeters
Professor Taylor has sent his latest study to the ACCC for investigation.

He declined to reveal the names of the scores of brands that were sampled on the basis it would detract from the study, which was to prove that adulteration is a global problem.

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“The study is not really about particular brands, it’s about looking at the persistence and prevalence of authenticity of honey,” he said.

“It did include some boutique brands and it came from a range of providers,” he said. “And we also tested some Manuka honey and that failed. That is a boutique brand. But as you know there is something in the order of about ten times the amount of Manuka honey sold as there is produced.”

It was part of a broader investigation into honey, which previously looked at urban contaminants in native bees and European bees.

Phd student Xiaoteng Zhou said she decided to test Australian honey after a honey company was fined in Australia in 2016 for selling fake honey.

“And two years ago in 2016 a commercial honey secret was revealed on Facebook and the honey sold in the supermarket might be toxic. It was claimed to be an Australia product but it was actually imported from overseas,” she said.

“These samples were analysed in Germany labs so we were thinking can we do the analysis in Sydney then we designed this project and we collected samples and developed this method,” Ms Zhou said.

Food fraud is a $US40 billion a year industry and it is getting bigger as criminal gangs exploit weak regulation and outdated government tests. Honey is the third most adulterated food in the world, behind milk and olive oil.

The international fraudsters produce the fake honey and sell it to unsuspecting suppliers at a higher price, making a fortune along the way. Chinese vendors use website Alibaba to sell rice syrups and other syrups that claim that they can pass official honey tests. They sell for $US500 a metric tonne, which is vastly cheaper than honey.

Minister for the Environment, The Hon. Melissa Price, today launched the Australasian Recycling Label and announced the government’s National Recycling Targets at a milestone industry event in Melbourne.

The Minister was joined by leaders from packaging, retail, manufacturing, recycling and waste management businesses in a pledge to better manage packaging waste and improving recycling in Australia.

Australia’s 2025 National Packaging Targets include making all of Australia’s packaging reusable, recyclable or compostable and for 70 per cent of plastic packaging to be recycled or composted by 2025.

Unnecessary single-use plastic packaging will be phased out through design, innovation or introduction of alternatives and 30 per cent of average recycled content will be included across all packaging by 2025.

Minister Price congratulated the Australian Packaging Covenant Organisation (APCO), Woolworths and the initial working group of key business leaders including Coca-Cola Amatil, Goodman Fielder, Nestlé, Pact Group, Simplot and Unilever in tackling Australia’s waste challenges and supporting these ambitious targets.

The new labelling system was developed by Planet Ark, PREP Design and APCO to help consumers better understand how to recycle packaging. With more than 200 recycling labels currently being used in Australian packaging, the new system is designed to combat confusion and reduce the levels of contamination in the waste stream.

In a statement today the Minister said she was “delighted” at the response of Australian businesses to the recycling challenges. To date more than 50 Australian businesses have committed to the program, with the label now being used by brands including Woolworths, Nestlé, Blackmores and Unilever.

“The Australasian Recycling Label provides people with easy to understand recycling information when they need it most, in those few seconds when they are deciding what bin the package goes in. The label removes confusion and reduces waste,” Price said.

Toward 2025 - Panel Discussion

Unilever ANZ CEO Clive Stiff welcomed the recycling initiatives in a statement today, saying it is a “critical step towards greater collective action” on recycling.

“As a consumer goods company, we are acutely aware of the consequences of a linear take-make-dispose model and we want to change it,” Stiff said.

The FMCG giant recently announced that bottles of its popular products like Dove, Sunsilk and Surf will soon be made with at least 25% Australian recycled plastic.

Stiff said this is “just the start” for Unilever and that “heavy lifting” is required by everyone from suppliers to packaging converters, brand owners and retailers.

“We need a complete shift in how we think about and use resources. Plastic packaging waste represents an $80 billion loss to the global economy every year. The benefits of the circular economy approach are clear for business and the environment – the more effective use of materials means lower costs and less waste. It means new sources of value for customers and consumers, better risk management of raw materials, and improved approaches to the supply chain,” he said.

Private equity firm Adamantem Capital has bought New Zealand-based smallgoods maker Hellers in a deal believed to be worth about $200 million.

It is understood Adamantem told investors on Monday night that it had signed a deal to take a controlling stake from Kiwi private equity investor Rangatira Investments, and would invest in partnership with Hellers founder Todd Heller.

The deal is expected to complete early next year and is subject to regulatory approvals.

Hellers is New Zealand's largest bacon, ham and small goods manufacturer.

It was marketed to potential buyers as about a $NZ20 million business at the earnings line, as part of a sale handled by Kiwi firm Cameron Partners.

Adamantem is expected to grow Hellers in Australia and New Zealand via new distribution channels and product categories. Adamantem told investors it wanted to make the well-known brand more widely available through food service channels and quick service restaurants.

It's another partnership-style deal for Adamantem. Todd Heller retains a stake in the company and a board seat, while Hellers will be run by its existing chief executive officer John McWhirter and chief financial officer Brent Ford.

Hellers joins Adamantem's investment portfolio alongside Kiwi aged care business Heritage Lifecare, horsefood business Hygain and data analytics firm Servian. Each is a partnership-style deal with the previous owners or founders.

Hellers was established in 1985 by Todd Heller, who grew the business from a single butchery to New Zealand's largest producer of processed meats including sausages, bacon, ham, salami and the like.

The company has about 600 staff.