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Spirits company Bacardi has appointed Luiz Schmidt as MD of Bacardi in Australia and New Zealand.

Schmidt has more than 20 years of international experience across a range of sales, marketing, and leadership roles.

Most recently, he was the regional marketing director for Bacardi in Latin America and the
Caribbean where he improved the market share for brands including Patron and Bombay Sapphire in the region.

Of his appointment, Schmidt said: “These markets are one of the most developed and attractive premium spirits markets in the world, offering Bacardi a tremendous opportunity to accelerate the growth of our brands in close partnership with our customers and consumers.”

Vijay Subramaniam, Bacardi’s regional president for Asia, Middle East & Africa and global travel retail, said Schmidt is both “uniquely and abundantly qualified” for the role.

“His extensive international experience leading both developed and emerging markets with the company and more broadly within the industry brings a deep and nuanced understanding of the global premium spirits market.”

Schmidt will be based in Australia and will oversee the sales, finance, marketing and supply chain functions of the brand and assist with market and portfolio expansion in the region.

Chinese wine sales will not return to the same level for Australia’s Treasury Wine Estate even if high tariffs imposed during a political dispute with Canberra are dropped, its chief executive said.

The world’s biggest standalone winemaker drew a third of its profits from China before anti-dumping and subsidy tariffs of up to 212 per cent were imposed on Australian wine, effectively ending sales, in 2020.

Australia’s trade minister met with his Chinese counterpart in Beijing last week seeking an end to all trade impediments as diplomatic relations improve, although wine tariffs remain in place.

Treasury is closely watching how the Chinese and Australian governments work through a process to resolve tariffs on barley, outside of the World Trade Organisation, hoping the same path will be followed for wine, Treasury chief executive Tim Ford said on Tuesday.

The company had continued to invest in marketing the luxury Penfolds brand in China over the past three years, and supporting staff there to maintain relationships, despite making no profit, he told the Australia-China Relations Institute at the University of Technology, Sydney.

“Our brand awareness in China has gone up in the last two years on Penfolds,” he said.

The biggest lesson learnt from the situation was that Treasury should have invested more in the local Chinese wine industry earlier, he said on Tuesday.

It was most likely tariffs would be dropped, although they could also be reduced, he said.

“This isn’t going to be a big tap that gets turned on overnight for us. We don’t have incremental wine sitting there ready to go at the A$100 above,” he said.

“The A$30 level we would be able to start supplying to China pretty quickly, but it is going to take us two, three, four years to start building up the Australian supply,” he added.

Many Australian wine growers had exited the industry, while in China, the luxury wine segment had shrunk, he said.

Treasury will not get back to China being a third of profit in the next six years without diverting wine from the other markets it had built to replace Chinese sales – “which we are not going to do”, he said.

In February, Treasury said net profit for the first half through December jumped by nearly three-quarters to A$188.2 million ($131.51 million) from the same period a year earlier, but below analysts’ estimate.

If you’ve ever made a toasted sandwich, experimented with an air fryer or set up a barista station in your home office, there’s a decent chance you’ve come into contact with ASX-listed Breville Group.

The Australian-founded kitchen goods business has come a long way since being founded by Bill O’Brien and Harry Norville (whose names merge to form “Breville”) in the 1930s. These days, it’s one of Australia’s biggest consumer goods exports, a $3 billion brand that sells its products into retail giants like Walmart and John Lewis.

Breville has delivered strong results over the past few years as consumers directed their spending towards home goods and getting the best technology available for their kitchens. The business has also seen volatile conditions recently, however, with inflation hitting all elements of the supply chain, while the war in Ukraine changed trading conditions across Europe.

Stock watchers are weighing these short-term headwinds against the company’s longer-term growth trajectory.

Industry: Consumer goods.

Main products: Coffee machines, air fryers and juicers.

Key figures: Chief executive officer Jim Clayton, non-executive chairman Timothy Antonie.

How it started: In 1932, Australian entrepreneurs O’Brien and Norville merged their names together to launch Breville, a business that started off selling radios. Over the next several decades the company branched out into other consumer electronics goods, and in 1974 invented the jaffle maker, which quickly sold hundreds of thousands of units.

How it’s going: Since listing on the ASX in 1999, the business has delivered returns of more than 2200 per cent and is ahead by 83 per cent over the past five years. The growth in share price has been a major win for Solomon Lew’s Premier Investments, which owns a stake of around 25 per cent, worth $809 million at the start of this year.

The bull case: The majority of analysts watching Breville say the company has three key things going for it: it sells into a wide range of overseas markets, it continues to invest in innovating new products, and it has a strong brand position that is well-marketed.

Despite sales in Europe being more volatile over the past year, largely due to the war in Ukraine and retailers taking a more conservative approach to how much Breville stock they are holding, those watching the stock say there’s plenty of opportunity for fresh growth.

“Given the early success of the South Korean launch (June 2022), we expect Asia, specifically China, to form the next stage in growth globally for Breville,” Wilsons analyst John Hynd said last month.

UBS analysts say the company has been able to meet its profit and sales guidance even when product sales are softer.

“Over the medium term, we are attracted to Breville’s exposure to the structurally growing coffee category, opportunity to build scale offshore, and rollout of new products,” the UBS team said in a note to clients.

The bear case: Those that are more cautious on the stock have the consumer spending slowdown front of mind.

Australian Bureau of Statistics data for March shows that while most categories of household spending are continuing to grow, spending on furnishings and household equipment is declining.

The RBC Capital Markets team say that even though Breville is a premium brand, there could be challenging conditions ahead for overall spending.

“The upcoming challenging macro environment causes us to be cautious despite Breville’s strong historical track record,” its analysts said when initiating coverage on the stock in March.

RBC’s price target of $21 per share is just above Breville’s share price of $20.70 on Tuesday morning.

The investment bank pointed out that Breville trades at a premium to its peers, thanks largely to its track record of growing earnings and its strong profitability.

“However, at present, these factors look fully priced in which supports our Sector Perform rating,” RBC analysts said in a note earlier this year.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Australia’s biggest beef producer will target affluent European and Middle Eastern customers willing to fork out a premium for wagyu steak as it reported a 35 per cent jump in operating profits, yet declined to reinstate dividend payments.

The Australian Agricultural Company (AACo) said its operating profits jumped to $67.4 million in the 2023 financial year as total sales climbed 14 per cent to $313.4 million, helped by a 17.3 per cent price rise in branded wagyu sales to $21.98 per kilo.

However, the company once again made no mention of dividends, meaning shareholders have not been rewarded for their investments for roughly 15 years.

Chief executive David Harris, who told this masthead six months ago that the company would “keep pushing until we potentially find [the price ceiling]”, said the latest earnings were “one of our strongest operating results in recent memory for the business”.

AACo’s profits were driven by revenue growth across all markets as sales from North America increased 22 per cent. The European and Middle Eastern markets saw a 43 per cent lift as the beef producer raised the profile of Westholme Wagyu, one of its key Australian brands, among key chefs to command a price premium. Revenue from both Australia and Asia rose 13 per cent.

Harris earmarked the Europe and the Middle East as a “real area for expansion” and “a really high price-paying market” for the $946 million beef company as it rotates its focus between different global regions based on their economies’ transition out of the COVID pandemic.

“We move the product around the world to keep driving that price out of markets that might have been doing it more difficult, and into better ones,” he said, naming Paris, London, Geneva, Stockholm and Copenhagen as key cities.

“Where the [price] ceiling is, I couldn’t tell you, and I won’t make a punt on that. But I think our distribution network is set up brilliantly in order for us to continue to push it, and we’ll certainly be aiming to do that.”

Harris is confident that demand for premium steak will remain high despite rising cost-of-living pressures and said he was still seeing “huge demand” around the world for AACo’s beef.

“People don’t sit down to really large portions of wagyu – so it’s a smaller quantity, higher quality, special-occasion-type product that people like spending their money on and having wonderful experiences with,” he said. “I still see tremendous opportunity for us to increase supply and for us to extract excellent value.”

Statutory net profits slumped by 96 per cent to $4.6 million, which Harris attributed to softer cattle prices forcing the company to write down the book value of its herd in its accounts. The business “decouples” the price of live cattle from the performance of its branded beef products.

Despite the lack of dividend, shareholders seemed pleased with AACo’s performance, sending the share price more than 10 per cent higher in early afternoon trading.

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

More than half of the company is held 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 has an 18.5 per cent stake.

The company found itself in the middle of a billionaire beef battle late last year, with Forrest upping his stake in the “asset-rich” business.

Michael Courtney has been appointed as the new CEO of Coles Liquor, effective July.

Courtney is the former chief of Coles Express and lead the business for four years. He replaces Darren Blackhurt, who resigned last month in order to return to the UK to be with his family.

In a LinkedIn post, Courtney said he is “excited” to take on the role, adding “providing an exceptional drinks experience for customers is key to Coles Group’s strategy”.

“We’ve got three really strong brands in the liquor business Liquorland, First Choice Liquor Market and Vintage Cellars and they each cater to a variety of customer missions and give us the opportunity to really differentiate in the market.”

Coles CEO Leah Weckert described Courtney as “exceptionally well-placed to lead liquor in delivering the strategy and transformation plans underway”.

Australian cattle prices have dropped 20 per cent this year from herd restocking, but analysts are still bullish on the outlook and predict a return of more stable market conditions that will benefit exports.

The industry benchmark, the eastern young cattle indicator (EYCI), has skidded to $6.1 per kilogram. That has almost halved from the peak in 2022 when supply could not keep up with global demand and made Australia’s cattle prices among the world’s most expensive.

Since then, Australia has rebuilt its cattle herd thanks to heavy rainfalls from weather phenomenon La Niña which helped replenish grass and grain.

Industry trade body Meat & Livestock Australia estimates national cattle to expand to around 29 million this year, the largest herd since the late 1970s, reflecting the most intense rebuilding period in nearly 50 years.

Rabobank senior animal protein analyst Angus Gidley-Baird projects prices to be more “normal” in 2023 after dramatic fluctuations over the past three years as the nation recovered from one of the worst draughts in its history.

Bubs Australia chief executive officer Kristy Carr has been ousted from the company she founded amid a stoush that has been brewing behind closed doors between her and the board of directors, who also dumped long-time chairman Dennis Lin.

In a statement to the ASX on Wednesday, the infant formula maker said Carr’s employment had been terminated effective immediately “due to failure to comply with reasonable board directions”.

“We acknowledge Kristy’s long service to Bubs and the role she has played in building the Bubs brand to the position it enjoys today,” said new chair Katrina Rathie, who was appointed to the role on April 11.

“Noting the recent deterioration in Bubs’ financial performance over the half year, the non-executive directors considered the time was right for a change in leadership and to change the governance framework of the company to ensure that it aligns with ASX Corporate Governance Principles and best practice,” the ASX statement said.

Carr had been on personal leave ever since the board installed Rathie and removed Lin from the position he served for nearly six years. The company also terminated Lin’s employment on Tuesday.

Chief operating officer Richard Paine is acting as interim chief executive until a replacement for Carr is found.

Carr has been contacted for comment.

Investors didn’t seem to welcome the executive shake-up, sending Bubs Australia’s share price down 1.6 per cent in afternoon trading.

In a LinkedIn post shortly after Lin was removed from his role, Carr described the ousted chairman as “the smartest, most strategic person I’ve ever met” and “an inspiration”.

“He has not only been a mentor to me, but also to many younger budding team members ... he has only ever acted with the highest level of integrity in the best interest of the business and all shareholders,” she wrote. “I 100 per cent stand by him.”

Carr founded Bubs in her kitchen in Sydney’s northern beaches almost two decades ago while on maternity leave from her communications job at a global firm. The mother of three was dismayed by the baby food on offer and began experimenting with making her own.

The infant formula maker, which produces products using goat’s milk, had its trading debut on the ASX in January 2017 at 10 cents a share and soared to $1.42 in early 2019 amid strong demand from the Chinese market.

It shot to global fame in May last year thanks to a tweet by US President Joe Biden thanking Bubs Australia for its assistance in patching the US infant formula crisis, which resulted in the Dandenong-based baby formula maker supplying millions of bottles to American families in a deal aided by former treasurer and ambassador to the US Joe Hockey.

Its entry into the highly competitive and tightly held American infant formula market prompted the company to turn its focus on growing further in the US and China, which helped it turn a profit for the first time in the 2022 financial year.

In the company’s ASX statement on April 11, Rathie said it was important for the company to evolve from a founder-led business to a company with a “deeply experienced” board and chair who would “help guide and mentor management, oversee growth, exercise fiscal responsibility and help navigate financial and non-financial risks”.

“As a growing company now operating in three core markets, it is critically important that the newly reconstituted Bubs board under my leadership has strategic oversight over our expansion plans, as well as financial and non-financial risks as we look into rapidly changing economic circumstances and evolving markets.”

Chobani founder Hamdi Ulukaya says it’s about time businesses started shifting away from simply chasing profits and instead focus on social responsibility.

The founder of the multibillion-dollar yoghurt brand says the success of his company, which started with him buying a disused yoghurt factory in upstate New York in 2005, is proof that it’s possible to run a business that puts communities and consumers before profits and shareholders.

Since its humble beginning, Chobani has become the No.1 Greek yoghurt brand in the United States and runs the largest yoghurt facility in the world. For Ulukaya, it has given him a platform to pursue his passion to democratise access to quality food globally.

“I want this idea of Chobani to impact other businesses as a proof point of saying this narrow view of focusing on only profit is yesterday’s idea — and there is no place for companies in the future to be in this narrow mindset.

“Through yoghurt, we want to make a difference [to] people’s lives,” he said while visiting his company’s Australian team last week.

As the world has emerged from the pandemic to face soaring inflation, including in grocery prices, Ulukaya’s focus on access to food has taken on a greater importance.

He is critical of other global food giants who are posting record profits at a time when many shoppers are struggling to get food on the table, and notes companies were keen to pass on price rises immediately but have been slower to wind these back when input costs have moderated.

“During the pandemic and post pandemic ... the underprivileged community’s access to food became more challenging. Yet companies are focused on extreme profits during this time,” he said.

“You see an enormous amount of profit records from food companies – it’s real, it’s out there, they publish it. Yet, there is this problem of hunger, and not being able to afford food – that is a big problem.”

Inflation has hit food makers across the globe, however, and Chobani is by no means immune from the reality of rising supply chain costs.

The company’s Australian managing director, Lyn Radford, says she has had several long conversations with Ulukaya about the impact of rising ingredient prices in Australia, and how to balance these soaring costs with price increases.

The company has put prices up for some Australian products, but Radford says Ulukaya’s message was to find a balance and keep the brand accessible to consumers.

“The one thing that he said to me that really stuck with me is, ‘Don’t make the short-term decisions that will impact the long-term business. Don’t damage the business now … this is a longer-term journey that we’re on,’ ” Radford said. “We are not taking the same quantum of price increases that our competitors are.”

Ulukaya said it was critical that the company’s core consumers still felt they could afford Chobani products.

“I want to make sure when someone buys this yoghurt, it doesn’t make a pain in their gut [and they say], ‘Well this is too much.’ I want them to buy it with a smile and say, ‘I can’t wait to take this home and feed my children,’ ” he said.

The company’s approach to manufacturing has provided some degree of control during difficult trading conditions, including the pandemic.

“One of the advantages we have is that [from] day one, we believed contract manufacturing was not something that we liked,” Ulukaya said.

The business has instead invested heavily in its own manufacturing hubs, including its new facility in Dandenong South, which opened in 2022, with a view to having more control over how it makes its products.

The strength of Chobani’s growth during the pandemic sparked plans for a sharemarket listing in the US, but Chobani pulled plans for the float in 2022, citing tough market conditions.

Ulukaya said he was happy the business made the decision to focus on continuing its growth instead of getting distracted by the ups and downs of the market, though he is still open to the idea of listing in future.

“We paused it because we didn’t think it was a good moment. I’m proud of the intelligence Chobani had [to do that],” he said.

Whether the company stays public or private, Australia remains a key growth market for the brand, which has expanded its product portfolio significantly over the past few years.

Chobani’s most recent financial documents filed with the corporate regulator show that it generated $191 million in Australian sales in 2021, up from $189 million in 2020, and profits increased to $1.8 million, compared with $787,000 the year before. The company’s US listing prospectus, lodged in 2021, revealed the company hit global sales of $US1.4 billion ($2.1 billion) in 2020.

“If you didn’t know it, you would think this company was an Australian start-up – it is built in an Australian way,” Ulukaya said.

Radford said Ulukaya has always trusted the Australian team will do the right thing by the Chobani brand, which has given local employees the freedom to come up with new ideas and products.

The idea for a dog yoghurt, for example, came from an Australian employee who could see how many consumers were giving Greek yoghurt to their pets. When Radford called Ulukaya to launch the product, she was surprised by his openness and enthusiasm.

“He said, ‘Of course, Lyn, dogs are part of our family and they deserve better food too. Why wouldn’t we do that?’ ”

The Labour government’s new federal budget has promised a host of relief measures to small businesses and retailers to curb the rising cost of living and inflationary pressures.

Australian Retailers Association CEO Paul Zahra said cost-of-living relief was “front of mind” for retailers and consumers alike.

“Australians are rightfully keeping a close eye on cost-of-living reprieve, but so too are retailers – with discretionary spending beginning to significantly soften in the wake of inflation and consecutive interest rate rises.

To help small businesses bounce back from the current cost of living crisis, a $20,000 instant asset write-off has been introduced along with an energy bill relief and a Small Business Energy Incentive program to encourage investments.

Zahra said “alleviating” the cost-of-living pressures is a vital component of economic stimulation.

The budget’s made reforms to the Australian migration system, are “welcomed” by the retail community since it will ease labour and skills shortages.

“The red tape of Australia’s migration system and the barrier of expensive childcare are two leading drivers of high job vacancies.

“We are pleased to see the commitment to cut the cost of childcare for 1.2 million families – together these measures will have enormous benefits for retail and the broader economy,” said Zahra.

He flagged businesses need more support managing higher labour, leasing and supply chain costs as well as insurance.

Australian Food and Grocery Council (AFGC) CEO, Tanya Barden, said this year’s federal budget provides “much-needed” cost of living relief to businesses.

“The cost of living measures announced tonight recognise that higher levels of discretionary spending are essential drivers of growth.”

The $310 million Small Business Energy Incentive, introduced in the budget, will assist small and medium food and grocery manufacturers invest in upgraded, energy-saving plants and equipment.

Barden described the incentive as a “sensible support” for essential industries that keep supermarket shelves stocked amidst fragile supply chains, rising input costs and subsidised foreign competitors.

Pepsi Lipton International, a joint venture between PepsiCo and Unilever, has unveiled T2 Iced, a new range of ready-to-drink iced tea. This marks the first time T2 has entered the RTD category since its acquisition by Unilever in 2013. 

T2 Iced features a “refreshingly playful spin” on traditional teas and is available in three flavours: Peach Amore, a black iced tea with notes of peach and raspberry; Lemon Coco Breeze, a lemon coconut-infused black iced tea; and Watermelon Fiesta, an herbal hibiscus blend with splashes of watermelon and mint.

 T2 GM Katrina McDonald said the new range was designed to meet the demand for premium beverages that are lower in sugar. 

“We couldn’t be more thrilled to bring T2 Iced to consumers, a new range that delivers an elevated experience to the beverage category,” said McDonald.

These iced teas are low in sugar (2 grams per 100 ml) and do not contain artificial colours, preservatives, or sweeteners. They are also made sustainably using Rainforest Alliance-certified tea.

T2 Iced is available in 4x240ml multipack at RRP $10 and 300ml single bottle serve (Peach Amore and Lemon Coco Breeze) at RRP $3.35 in major supermarkets and online through Amazon.

It will also be available at select cafes, restaurants, and convenience stores in the coming months.