Home' Convenience and Impulse Retailing : October 2009 Contents Snippets
Over 10 million sold through more than 60,000 stores in the USA
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The IGA chain of supermarkets has signed a
deal with its principal supplier and owner of
the IGA brand Metcash to share the proceeds
of growth and major expansion projects
The extra proft of between $10-$20 million
through the expansion, refurbishments
of stores, brand compliance and other
improvements over the next three years are to
be shared equally between the two parties.
“This is a historic deal for independent
supermarkets in Australia, where we will
share the proceeds of IGA’s continued
expansion across Australia with our supplier
for the frst time,” said IGA national board
chairman Mick Daly.
The agreement is part of a two-year, multi-
million dollar project called Lion by IGA and
American ice cream chain Ben & Jerry’s will
begin operating in Australia in October when it
opens a fagship outlet in Sydney.
“The innovative favours and the fun and
entertainment associated with Ben & Jerry’s
are a winning mix across the globe and we
hope it will be in Australia, too,” Ben & Jerry’s
Cadbury Australia and Fairtrade Labelling
Australia & New Zealand have announced plans
for Cadbury Dairy Milk®, to achieve Fairtrade
Certifcation by Easter 2010.
The move will more than triple the amount of
Fairtrade product sold throughout Australia.
Consumers in Britain and Ireland can already
The Australian Competition and Consumer
Commission could take supermarket chains to
court over new anti-competitive claims, this
time involving shopping centre leases, the local
The allegations are that there are almost
750 examples where the supermarket giants
entered into agreements with shopping centre
landlords, restricting the entry of rivals in
the same centre. The leases either restrict
absolutely the entry of another rival into the
one shopping centre, or if one competitor is
introduced, Coles or Woolworths receive a
substantial discount in rent.
ACCC Chairman, Graeme Samuel, said that
some of the restrictive covenants were set
as long as 20-40 years. “We regard this as
the single most important fnding under the
Metcash to identify and generate greater
operational effciencies, technology upgrades,
brand compliance as well as create growth
As part of the project, IGA will develop more
than 225 new stores by 2012, with 43 opened
last fnancial year and a further 60 new
openings expected in 2009-2010.
“We have also targeted $110 million in savings
over the period that can be generated through
greater operational effciencies in stores and
within our distribution system,” said Metcash
CEO Andrew Reitzer.
Mr Reitzer said that the new scheme would
encourage other independent retailers to join
the IGA banner. (RetailBiz.com.au 17/7/09)
brand manager Caroline Simpson said.
Australia is the world’s third biggest per capita
consumer of ice cream, at 18.5 litres a year.
This compares with the United States’ per
capita consumption of 23 litres a year and New
Zealand’s per capita consumption of 20 litres.
(FoodWeek Online 3/8/09)
buy Cadbury Fairtrade Certifed™ chocolate and
there are similar plans for New Zealand and
Fairtrade is a system providing farmers with fair,
minimum prices for their produce and additional
investment for social, environmental and
economic development in their communities.
grocery inquiry,” he said.
The commission spent 12 months compiling
evidence and has not ruled out taking legal
action against the two chains for possible
breaches of the Trade Practices Act.
“There is an insidious combination of local
planning laws and restrictive agreements
between major supermarkets and shopping
centre owners that has created an artifcial
scarcity of grocery store sites,” Consumer
Affairs Minister Craig Emerson told The
Budget supermarket chain Aldi, which has
declared plans to increase its outlets from
200 to more than 700, complained that lease
restrictions as well as local zoning laws were
hindering its expansion.
IGA and Metcash agree to share profits
Ben & Jerry’s hit Oz
Cadbury Dairy Milk to go Fairtrade
ACCC finds anti-competitive
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