News

27 Dec, 2018
How veganism is moving into the mainstream - and becoming big business
The Financial Review

At the beginning of 2018 my local supermarket in south London had a couple of shelves of vegetarian and vegan food tucked away in the aisle with hummus, pizzas and quiches. Blink and you'd miss it. Then, over the past 12 months, something happened.

First a new section popped up near the cheese and cold meats aisle, offering vegan alternatives for your sandwich. Then some "cauliflower steaks" and "pulled jackfruit" turned up in the fresh veg corner. Over in the UHT milk section, almond drink and its non-dairy relatives colonised an entire zone. And suddenly there was half an aisle of vegan ready-meals. By the year's end, I was pushing my trolley past a full-blown vegan and vegetarian section, with every wish and whim catered for.

In Britain and Australia, the vegan trend has been gathering steam for about five years, particularly among the under-35s. The motivations are varied – health, animal rights, climate change – but the results are striking. Britain, long a trend-setter in meat-free eating, has a vegan fried-chicken outlet run by a former KFC employee; it has vegan delis, vegan festivals, vegan shoeshops, vegan beers in vegan pubs – and even a vegan episode of The Great British Bake-Off.

 

The Impossible Burger replicates the taste and texture of meat using plant proteins but the holy grail of vegan food is something that tastes as good as macaroni and cheese.  AP

But with the supermarkets getting in on the act in 2018, veganism has now hit the British mainstream. It was the year veganism no longer meant annoying trips to a pricey health food store three suburbs away. And the year that being a vegan no longer meant being a social pariah, impossible to cook for; your dinner party host or long-suffering partner could now just grab a convincing and tasty ready-meal from the supermarket round the corner. In fact, the new route to social pariah-dom is to diss vegans: just ask the editor of the Waitrose Food magazine, who was forced out in October after his disparaging remarks on vegans went public.

British trends migrate to Australia pretty quickly. So if you've ever flirted with cutting down on meat, dairy and eggs, 2019 might well be your moment. And if you're in the food business, or want to be, this is a growth area to watch.

There were 600,000 vegans in Britain in 2018, up from 276,000 in 2016, according to an Ipsos Mori survey for the Vegan Society. That's quite some growth.

"If you add the vegetarians to the vegans, there's possibly 2 million to 3 million of those, and then you add the 21 per cent of people now saying they're 'flexitarians' – eating meat and fish less often – you're looking at one in three people who are eating no meat or significantly cutting down," says food writer and cook Lucas Hollweg. "This is not just a fad – it's a shift in where we're going with food, how we're thinking about it."

World has changed

Lauren Harris is a British public servant in her late 30s who became vegan three years ago. She was already vegetarian, and was annoyed that the canteen at her workplace had only one vegie option – a boring old cheese sandwich. When she complained, the chef casually remarked that since Harris was eating cheese she was hardly in a position to be holier-than-thou about animal suffering.

Stung, Harris decided to give veganism a go. She kept a food diary at the start, to make sure she got the required amounts of key nutrients.

 

Vegan milk alternatives. From left hazelnuts, almonds, oats and coconut. Supplied

"I lost weight, my hair got shinier. I felt so much better," she tells me over a meal at a vegan café in west London. The biggest challenge was her family: they were at a loss to how to cater for her, and she even skipped family Christmas the first year to save her mum the trouble.

But now the world has changed around her. "You used to have to do everything yourself. I used to say to people that it's easy to be vegan if you like to cook. But that's not true any more – if you want something like a vegan pizza, you can get it in the supermarket."

She recently had a baby and plans to bring him up vegan, although she admits this will take even more research and effort than going vegan herself.

Experts generally accept that a vegan diet can be adequate, even for children. But although worries about calcium and protein are overblown, you do have to spend more time thinking about how to get vitamin B12 and omega-3 fatty acids in particular.

 

Vegan leather products, like this bag from The Edge, are also increasingly popular. Anthony Weate

You also need to be wary of assuming that just because something is vegan, it'll be healthy. Lots of those new ready-meals on the supermarket shelves are pretty heavy in salt and fats, and should be approached with the same care as their meat equivalents.

And you need to get used to the idea that things won't taste exactly the same as the meat equivalents you are used to.

"You can't just add a bit of goat's curd to your salad. You need to find different ways to create flavour with vegan food. That's still the specialist thing," Hollweg says. Harris agrees: "Trying to get a mac-n-cheese to taste cheesy – that's the holy grail."

That's where the business angle comes in. With the supermarkets buying in, the vegan food industry is on the up. Not only is production increasing, but so is R&D.

Blockbuster technology

Niko Koffeman, co-founder of Dutch company The Vegetarian Butcher, wants to make products that are indistinguishable from the real thing. A few years ago he successfully fooled El Bulli chef Ferran Adrià into thinking he was eating genuine chicken, and he has a best-selling sausage roll that carnivores in a blind tasting rated more highly than the meat version.

He says turnover is growing 50 per cent a year. A lot of the growth is in ready-meals and snack food, where the vegan market has previously been starved of product. The economies of scale he hopes to achieve will eventually mean his prices could undercut the real thing. He foreshadows imminent expansion into Australia.

Kevin Brennan, British CEO of industry stalwart Quorn – found in the frozen food aisles of Australian supermarkets, says his company has stepped up its research into technology that can replace eggs as a binding agent (in case you're interested in what's under the bonnet, the big hope lies with isolates of mung bean, fava bean and chickpea).

"Everything we launch as vegan sells well," he says. "We launched a vegetarian fish finger that failed, but the vegan one was successful. The vegan label is almost replicating gluten-free as a badge of a clean and healthy product – it's like a form of shorthand."

Sales of vegetarian/vegan food are growing at 20 per cent in Britain, he says, the fastest growing food category of any scale. "Retailers are seeing that it has worked. A lot of categories are not growing, so I expect we'll see space open up and open up," he says.

But he warns that not all the new entrants racing into this space are likely to succeed – in his sector, the success rate for a new product can be as low as one in 100.

"The barriers to entry are low, but the barriers to making a good product are quite high," he says. "It's noisy rather than intensely competitive. There's not yet any blockbuster new technology or formats."

But scientists in western Europe and the US west coast are leading the charge to prove Brennan wrong. Intriguingly, some of the vanguard are getting funding from the corporate carnivores. The San Francisco company JUST, which produces a vegan egg substitute, has teamed up with Italian egg giant Eurovo. Tyson Foods, an American meat producer with a turnover of $US38 billion last year, has pumped money into vegan brand Beyond Meat.

All this seems to bode another bumper year for veganism, and for vegans. Harris is pleased that the trend is moving beyond "hipsters and hippies", but she warns it's not all plain sailing: many people, on discovering she's vegan, still expect her to be a "preachy pain in the arse". It might take more than a well-provisioned supermarket aisle to change that.

21 Dec, 2018
Skincare firm BWX dives 46pc on profit warning
The Australian

Australia-listed skin and hair care manufacturer BWX has taken a dive after issuing a profit downgrade on the back of softer volumes in China and the US.

The company said it now expected normalised earnings before interest, tax, depreciation and amortisation for fiscal 2019 to be between $27 million and $32m and EBITDA in the first half to be about $7m. BWX had previously guided to normalised EBITDA to be broadly in line with fiscal 2018 of $40.3m, with a skew of approximately 70 per cent to the second half.

 

BWX said the downgrade was because of softness in domestic export trading sales to China. But it added that in-platform cross border e-commerce volumes, including sites such as Tmall, had performed in line with expectations.

BWX chief Myles Anceschi said it was disappointing China volumes were weaker than expected.

“We have further refined our go-to-market strategy to improve pricing controls and ownership by signing an exclusive distribution agreement effective December 2018, that will yield more focused efforts on growing this high-growth export channel with an established partner,” Mr Anceschi said.

Temporary loss of sales momentum in core US brands, Andalou Naturals and Mineral Fusion, overlaid with some softening in US retail sales, had also added to the downgrade.

“In the US, we experienced a loss of sales momentum in our core brands during management transition,” Mr Anceschi said.

“Some softening has also been seen in the most recent 12-week US retail sales numbers.”

A new US senior vice-president of sales started this month and a senior VP of marketing starts next month.

In September, BWX rebuffed an unsolicited takeover proposal from former chief executive officer John Humble and private equity firm Bain Capital, which in May valued the company at a little over $800.4m.

20 Dec, 2018
Simplot bucks trend in food industry, posting huge profit

One of the nation’s biggest food suppliers to the $90 billion grocery sector, US food giant Simplot, has enjoyed a roaring profit leap over the last financial year as its blockbuster brands such as Birds Eye, John West, Edgell and Leggo’s helped drive a 10-fold bounce in earnings.

Also fuelled by extra earnings harvested from the sliding value of the Australian dollar relative to the US dollar, Simplot has posted one of the strongest profit rises for the food industry at a time when many suppliers are complaining about major supermarket chains Woolworths and Coles slashing shelf prices and constricting industry profitability.

For more than a decade, supermarkets such as Coles have decried the rich profits reaped by multinational corporations in Australia, which they claim saw and treated Australia as a “treasure island” of the Asia-Pacific, with these companies earning more here than in other regions.

Simplot, which also owns the Chiko Roll, I&J frozen foods, Ally Pink Salmon and Five Brothers sauces, is one of the supermarket industry’s largest food suppliers, with its brands a must-have for any chain and the company also producing a range of private-label frozen vegetables.

The latest results for Simplot Australia lodged with the corporate regulator reveal Simplot Australia posted slightly higher revenues for the financial year to September 1, with sales hitting $1.476bn, up from $1.396bn in 2017. Sales for the group in 2015 were just under $1.3bn.

A strong performance in its core categories and positive flows from foreign exchange movements saw Simplot Australia’s net profit rocket to $62.3 million, from $6.3m in 2017.

In past years its profits have been volatile, hitting $91.1m in 2015 but as low as $33.2m in 2014.

In its financial report, Simplot directors noted that the food company had also benefited from higher volumes.

“The group delivered strong operating results driven by improvement in key core category performance. Main factors were increased volume as well as continued focus on driving costs down,” directors stated in the financial report.

There was also strong growth from its sales into high-growth regional markets.

“The group’s foreign investments in growth markets paid off with revenue more than doubling through alignment with customers in fast growing markets,” the report said. “Results have further been positively impacted by unrealised foreign exchange gains experienced due to the weakening of the Australian dollar to the US dollar.”

Simplot has rationalised and consolidated its businesses in Australia, with the loss of jobs. It recently exited its licence deal to produce frozen meals under the Lean Cuisine brand, which it had produced for Nestle in Australia and New Zealand.

A spokeswoman for Simplot declined to comment on the 2018 financial result.

13 Dec, 2018
Walmart is keeping the faith in its $16 billion bet to take on Amazon

CNBC

 

Despite a tricky few months, Walmart is sticking by its $16 billion bet to help it win the online retail war.

The U.S. retail giant bought India’s largest online retailer Flipkart in May 2018, looking to take advantage of both its technical expertise in e-commerce and the burgeoning Indian middle class.

But when news of the deal broke back in May, the American retailer’s shares immediately tumbled 4 percent. Investors expressed concern that, outside India, Flipkart was struggling to compete with Amazon’s dominance and had a long way to go before becoming profitable.

The cash outflow from Flipkart’s business also ate into Walmart’s profits for the end of 2018 as well as dampening ts earnings outlook for 2019. Year-to-date,  Walmart stock has slipped almost 5 percent in value.

Bad news surrounding the financials was compounded in November when Flipkart co-founder Binny Bansal resigned after an accusation of sexual assault led to an internal investigation into “serious personal misconduct.”

But amid the controversy surrounding Bansal’s resignation, Walmart quietly increased its stake from 77% to 81.3%, offering another sign of its conviction that India’s online retail market is primed for growth.

The Indian e-commerce market as a whole is forecast in a Indian government report to quadruple to $200 billion dollars in the next eight years, and by 2034 it’s predicted to surpass the U.S. as the second largest e-commerce market in the world.

Last week Walmart CEO Doug McMillon told CNBC that acquisitions such as Flipkart were crucial to the continuing health of his company and its global ambitions.

“You see the rise and fall of Sears and others,” McMillon said. “It’s just a reminder that this can happen to us too.”

Walmart has also got started on restructuring parts of Flipkart. 150 to 200 employees of Myntra and Jabong, two online fashion retailers under the Flipkart Group have been laid off. Since then senior executives have resigned from the company.

And the American retail giant is still convinced by Flipkart’s data analytics and tech expertise and is planning to globally deploy it’s knowhow into progressive web applications that they hope will provide a seamless shopping experience.

“In Flipkart’s case, we know they have a number of systems they have innovated on that we are interested in.” said Jeremy King, executive vice president and chief technology officer at Walmart in a interview with the Economic Times.

“We are going to build these things and then others who want to build that will work together,” he added.

13 Dec, 2018
Woolworths opens new concept store in Double Bay
Inside FMCG

Supermarket giant Woolworths has launched a new custom-made concept at Double Bay, Sydney, offering organic and healthy options for consumers with a focus on sustainability.

The Kitchen by Woolworths offers a wide range of organic fruit and vegetables, an expanded Macro Wholefoods range, an on-site florist, juice bar, organic coffee, healthy take-away food options and a wholesome cafe.

“We know that customers in the Double Bay area are looking for more convenient fresh food options,” Woolworths Format Development director, Rob McCartney said.

“We wanted to create a custom-made offering that was unique to this community, which is how The Kitchen by Woolworths was born. Our food journey at The Kitchen starts with organic produce, free range, locally sourced products, as well as freshly prepared meals to eat in or pick up and take home.”

Sustainability is a key focus of the The Kitchen, with sustainable local sourcing of organic fruit and vegetables, including produce sourced from Green Camel Organic Produce, who use organic glasshouses and water-efficient systems to reduce the use of resources.

“We’ve also included some new sustainable initiatives. This includes smarter packaging and reducing waste by using any excess in-season produce at our juice bar. Our trolleys and baskets are also made from recycled materials to help further support a circular economy,” said McCartney.

The store even uses shopping trolleys made from recycled milk bottles and eco-baskets made from soft plastics. The store will act as a trial location for new innovative products and roll out the products in other Woolworths network if successful.

The new store also offers a sizeable plant-based range including 100 per cent plant-based burgers, sausages, tofu, pastas and sauces.

“We’re also hopeful the store will be a test bed for new innovative products, which may lead to the discovery of the next great food or beverage trend. We’re looking forward to hearing feedback from the local community on what we have to offer,” McCartney added.

Australian caterer Peter Rowland and executive chef Matthew Haigh have worked with Woolworths to create a menu using fresh, seasonal produce with both dine-in and take-out options.

The Kitchen store has also provided a boost to local employment with 42 new team members. Following its opening yesterday, December 12, the store will be open seven days a week from 7am – 9pm.

11 Dec, 2018
Treasury Wines' painful $4 billion spillage
The Financial Review

Old-school investors who believe share sales by directors and top executives are a potential danger signal have been proven right again, with $4 billion in sharemarket value vanishing from Penfolds owner Treasury Wine Estates in the past three months.

While chief executive Mike Clarke is feeling the pain of a 30 per cent share price dive along with the other 62,000 Treasury shareholders with the large chunk of stock he still holds, his timing was good in a round of share sales in late August and early September worth a combined $7 million when the shares were around the $19 mark and close to an eventual record high.

Mr Clarke sold 300,000 shares between August 24 and 29 in transactions worth almost $5.7 million to help pay tax liabilities stemming from the granting of performance rights awarded to him. Then in early September another 100,000 shares held directly and indirectly via his spouse Fiona, worth $1.94 million, were sold.

 

Treasury Wine Estates boss Michael Clarke still has a big holding in the company but some hefty share sales were well timed.  Jesse Marlow

Treasury Wines has been among the group of stocks on the ASX which had been trading on high price-earnings multiples to be sold off hard as the broader sharemarket slide gathered pace. Others have included blood products group CSL, pizza company Domino's and consumer finance group Afterpay Touch.

Former star fund manager Peter Morgan said director and top executive share sales are just one factor investors should stay alert for as part of their overall assessment of the outlook for a company.

"It's always something you should take note of," he said. "It's always good to ask the question of why it's occurring."

It didn't always signal a turning point, however, and was part of the overall "toolkit" which investors had at their disposal, said Mr Morgan, a star stock picker for Perpetual who left to set up 452 Capital.

"It's not always a hard-and-fast rule," he said.

Strong headway

Treasury shares hit a record high of $19.85 on September 3 but had tumbled to below $14 after Monday's sharemarket rout.

Wilson Asset Management portfolio manager Matt Haupt said it had "definitely run too hard" as it climbed above $19 in early September. A broader slowdown in Australian wine exports to China had been part of the reason for the fall.

Mr Clarke on November 14 was granted an extra 285,963 performance rights under the company's long-term incentive plan and now holds 1.25 million performance rights and an interest in 942,875 direct shares. His direct holdings have fallen in value by $5.7 million in three months.

UBS has a "buy" rating on Treasury Wines, which makes Penfolds, Wolf Blass and Wynns and has been making strong headway in exports to China. It has a 12-month price target on the stock of $21.60.

Treasury's last trading update at its annual meeting on October 18 outlined that the company was on track to achieve its target of 25 per cent profit growth for 2018-19, and that it would continue to hold back some of its top-end wines from the market to ensure a more consistent performance.

The company is ploughing on with a major overhaul of its distribution system in the United States to build a foundation for better profit margins over the long term, with more than 40 per cent of its route-to-market structures having been revamped.

7 Dec, 2018
UK’s fastest-growing kids’ toiletries brand launches in Australia

The UK’s fastest-growing baby and child toiletries brand has launched in the Australian market, securing retail partnerships with BIG W and Amazon.

A selection of the Childs Farm range of bath, skin and hair care products are now available in 183 BIG W stores across the country and online at Childs Farm’s Australian website and Amazon.com.au.

The brand, founded by entrepreneur and Mum of two, Joanna Jensen, has experienced triple digit growth every year for the last seven years in the UK, with a bottle of its baby moisturiser sold every 14 seconds.

It is now the largest brand in the category in the UK after Johnson’s Baby with 20 per cent market share.

The product range, which includes moisturisers, bubble baths and shampoos, is suitable for all ages and particularly good for sensitive skin types even those prone to eczema.

Fragranced with fruity essential oils, the products are free from parabens, SLSs, mineral oils or artificial colours and contain a high proportion of naturally derived ingredients.

Joanna’s girls, Mimi (12) and Bella (10), and Aussie cousin Oscar (12) for whom the range was created have pride of place on the packaging design. The featured animals all exist, and have been immortalised in the Childs Farm cartoon; a 20 episode series produced by Turner Media which was broadcast in the UK and is available to view on You Tube.

Founder and CEO Joanna Jensen said she is “so excited” to launch in Australia, the biggest launch in the company’s international expansion to date.

“We’ve seen huge growth of the business in the UK since launch due to high consumer demand, predominantly driven through word of mouth recommendations on social media and the press. This demand has reached international markets, so the natural next step for us is to launch into areas where we’re already seeing demand for our products,” Jensen said.

“There’s a huge opportunity to reach parents and caregivers of little ones in Australia who are looking for a kinder, milder alternatives to brands already on the market, that at the same time are fun for children to use. I was delighted to meet up with Aussie mums, dads and caregivers during a recent visit to Australia, and will be returning in March 2019 to meet more. Australia is very important for me as I have family living in and around Perth, and they have been very vocal in their need for the range in Oz, and who am I to disagree with a strong Aussie opinion?!”

Amanda Lunn head of commercial everyday and seasonal at BIG W said the retailer is thrilled to bring the products to Australia.

“We are thrilled to be the first retailer to bring Childs Farm’s toiletry solutions to families across Australia. We are confident parents and children will love the products not only for their fresh and fruity scents but for how gentle they are on their skin,” Lunn said.

The range is available now at Big W stores and online at Amazon Australia.

6 Dec, 2018
Solaris snaps up Asaleo Care for $180m
Inside FMCG

Tissue and toilet paper producer Solaris Paper has this morning announced it will acquire leading Australian tissue brand Asaleo Care for $180 million.

Solaris Paper will obtain complete ownership of Asaleo Care’s Australian brands which include, Sorbent toilet and facial tissue, Purex, Handee Ultra paper towel and Deeko serviettes and disposable kitchenware.

Asaleo Care revealed in July that it was facing a challenging year due to higher pulp prices and energy costs, and in October warned that it may sell its brands after hiring Luminis Partners for a strategic review.

Solaris Paper produces and distributes toilet and tissue paper brands Livi and Emporia throughout the Australasia region.

“Solaris Paper’s advanced converting processes and deep vertical integration are an ideal match for the strong market position that Asaleo Care brands have built and maintained in Australia,” said Solaris Paper ANZ CEO Paul Tonkin. “We expect this deal will create considerable commercial synergies, allowing us to deliver quality products our customers have come to expect, with greater efficiency and reliability.”

Asaleo Care CEO and managing director Sid Takla said, “The objectives of the strategic review were firstly, to drive profitable growth through our brands by being more consumer and customer focused and second, to build a resilient business model that delivers sustainable, long-term growth. We believe this transaction delivers on both objectives. The core Personal Care and B2B brands and businesses offer higher margins, stronger sales growth and less volatile returns.”

27 Nov, 2018
Why Halo Top, YoPro and Messy Monkeys are Australia's fastest growing groceries
The Financial Review

When Los Angeles-based ice cream maker Halo Top Creamery first entered Australia in 2016 fans who had tried its high-protein, low-calorie desserts in the US petitioned their local supermarkets to stock the brand.

"We've seen an incredible response since launching in Australia," said Doug Bouton, Halo Top's president and chief operating officer.

"We didn't even need a sales team in the beginning because so many of our fans were requesting Halo Top from their local store managers," Mr Bouton said.

Ruth Butler, e-commerce development partner at IRI: "We're relatively health-conscious but when we do indulge we're doing it with more premium products." Janie Barrett

"Traditionally, Aussies may have viewed ice cream as a treat that should only be indulged in occasionally, or as something that should only be consumed if you were going to spend some extra time at the gym to make up for it.

"But that's changed with Halo Top [an entire tub has 20 grams of protein and no more than 360 calories]. It's something that you can treat yourself with on a regular basis and actually feel good about it."

Indulgence foods with a healthy twist were the stars of the $63 billion packaged groceries market in 2018 as consumers sought to reward themselves without ruining the diet.

According to a report by consumer insights and data analytics firm IRI, Halo Top was one of the 10 fastest growing products last year, helping to lift ice cream sales by a healthy 4 per cent, exceeding the 3.3 per cent average growth (or 1.9 per cent excluding tobacco) across the packaged groceries sector.

Other "healthy indulgence" products that grew faster than the market included Danone's YoPro, a high-protein, low-sugar yoghurt, which grew sales $30 million, Ajitas' Vege Chips, which grew sales $15 million, and Messy Monkeys children's snacks, made by Sydney-based health food company Freedom Foods.

An 'overarching trend'

IRI's e-commerce development partner Ruth Butler said the surge in demand for products such as Halo Top, YoPro and Messy Monkeys reflected several consumer trends including indulgence, globalisation and premiumisation.

"There's an overarching trend we are seeing across channels," Ms Butler told The Australian Financial Review.

"There's a lot of blurring going on whether it's the globalisation piece – Halo Top making it big here in Australia and crossing those geographical borders and Australian brands such as Messy Monkey making that trip across the waters to the US and launching there," she said.

"The second is health vs indulgence – products doing really well have that health focus and brands are focused on playing that up [but] when [consumers] indulge they're really going for it.

"That leads to the next trend, premiumisation. A lot of categories within supermarkets are focusing on price deflation and making sure they offer value in their category but we're seeing premiumisation in categories such as ice cream and liquor.

"We're relatively health-conscious but when we do indulge we're doing it with more premium products."

Another common factor across the fastest growing brands is a strong presence online and on social media, including facebook, Instagram and Youtube.

"Two out of three Australian are learning about products online," said Ms Butler. "They might not necessarily buy them online but they're furthering their knowledge online and through social media.

"The brands themselves are taking to social media to promote their products, particularly with Millennials," she said, citing Halo Top, which doesn't use traditional media agencies, and Chobani Flip, which posts videos on facebook and Instagram.

​Consumers develop brand awareness online and demand retailers stock the product, reversing the previous order where retailers determined which brand to put on their shelves.

26 Nov, 2018
Coles' Little Shop promotion back for Christmas
The Financial Review

Newly listed Coles is hoping to reinvigorate December-quarter sales by relaunching its hugely successful Little Shop miniature groceries promotion, countering Woolworths' latest collectables campaign.

Little Shop, which helped Coles deliver its strongest same-store food sales growth in almost three years in the September quarter, will relaunch on December 7 and run up to Christmas, with five new festive-season collectables including miniature plastic mince pies, bon bons and gingerbread biscuits.

Coles customers will receive one free Christmas mini collectable for every $30 they spend in store while stocks last. There will also be a limited number of special-edition Christmas stocking collector cases available for purchase for $4.

 

The Little Shop relaunch comes just two weeks after Woolworths launched Christmas Pop-Outs – cardboard self-assembled Christmas-themed characters including Santas, elves, reindeer and snowmen. WOOLWORTHS

"We were blown away with customer feedback to Little Shop when it launched in July this year so we wanted to bring customers a little extra as a surprise this Christmas," a Coles spokesman said on Monday.

The Little Shop relaunch comes just two weeks after Woolworths launched Christmas Pop-Outs – cardboard self-assembled Christmas-themed characters including Santas, elves, reindeer and snowmen.

Woolworths said last week Christmas Pop Outs had been well received by customers but declined to say whether they had boosted sales. Woolworths' same-store sales slowed to 1.8 per cent in the September quarter, the lowest rate of growth since the September quarter two years ago, as customers shifted to Coles.

While Woolworths' same-store supermarket sales growth is believed to have recovered to more than 2 per cent this quarter, analysts believe Coles' same-store food sales growth has slowed, to around 1.8 per cent.

Asked at Coles' listing ceremony last week if he had any new tricks up his sleeve to boost pre-Christmas sales, Coles managing director Steven Cain mentioned 150 new products and a little bit of "Santa's secret magic".

Coles shares started trading on the Australian Securities Exchange on Wednesday at $12.49 after a $20 billion demerger from Westfarmers. The stock gained 2.1 per cent on Monday to close at $13.11.

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