Supermarket price war turns smaller food suppliers into ‘cannon fodder’

Sarah Butler 24 November 2014 The Guardian Insolvencies rising among wholesale bakeries, pasta makers, fish processors and ready meal manufacturers amid industry-wide squeeze on profit margins More and more food producers are facing bankruptcy, with margins further squeezed by the supermarket price war. Food producers have become cannon fodder in the bitter supermarket price war, according to accountancy firm Moore Stephens, which found 28% more specialist manufacturers have gone into insolvency this year than last. In the year to September, 146 food producers went into insolvency, including wholesale bakeries, pasta makers, fish processors and ready meal manufacturers. In one of the larger cases, 170 jobs were lost when Sussex-based fresh pasta maker Pasta Reale went into administration in August after it lost three major supermarket contracts in a year. Duncan Swift, head of the food advisory group at Moore Stephens, said: “The supermarkets are going through the bloodiest price war…

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C-store Retailers Lose Menu Labeling Battle

Melissa Kress November 25, 2014, Convenience Store News SILVER SPRING, Md. — The Food and Drug Administration (FDA) finally released its finalized rules on menu labeling that, much to the dismay of convenience industry insiders, include c-stores under the regulations. NACS, the Association for Convenience & Fuel Retailing, expressed disapproval of the new menu labeling regulations imposed on convenience stores and other food establishments including grocery stores, movie theaters and vending machines. “The FDA has clearly gone beyond congressional intent by expanding the types of businesses that fall under this law to include convenience stores,” said Lyle Beckwith, senior vice president of government relations for NACS. “The one-size-fits-all approach that the FDA announced today would treat convenience stores as though they are restaurants, when in fact they operate very differently. It is now up to the bipartisan, bicameral opponents of this regulatory overreach to enact legislation introduced in both houses…

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Battle for “Stomach Share” Continues

November 26, 2014 NACS Online New survey shows diners increasing visits and purchasing more ready-to-eat meals from c-stores, dining out less. ​NEW YORK – With only a little over a month remaining in 2014, profit-margin pressures remain on the front burner for restaurants, which are experiencing a tougher cost landscape this year, according to a new study from AlixPartners, the global business advisory firm. The AlixPartners North American Restaurant & Foodservice Review, released this week, examined the financial performance and fiscal health of more than 85 restaurants and foodservice companies representing approximately $225 billion in annual revenues. The comprehensive study also included a survey of more than 1,000 consumers gauging their anticipated dining behavior and the drivers of dining choice across the core restaurant segments – Fast Food, Fast Casual, Casual, Fine Dining and Convenience Stores. According to sources with Alix, one of the clearest takeaways for convenience store industry…

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Supermarkets playing the lottery

NOVEMBER 27, 2014 NEWS.COM.AU WOULD you want to see lottery tickets and scratchies sold at the supermarket check-out? It could be happening very soon, if Tatts gets its way. A moratorium on the practice in NSW is set to expire in April next year, and newsagents fear Tatts has quietly cut deals with Coles and Woolworths ahead of time. The Newsagents Association of NSW and ACT (NANA) held an emergency meeting with the NSW Treasurer Andrew Constance today to plead for government intervention. NANA chief executive Andrew Packham says the newsagents, some of whom source up to 90 per cent of their income from tickets and scratchies, will be severely affected. There are around 1300 newsagents in NSW, 1200 of whom sell lottery products. There are an additional 300 or so small businesses that are lottery agents. Mr Packham says based on the association’s numbers, about half the network would…

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Carrefour confirms China c-store brand

Inside Retail Asia November 28, 2014 Carrefour Easy Carrefour, the world’s second-largest hypermarket operator, has confirmed plans to roll out a convenience store chain in China. Stores will be branded Easy Carrefour. A trial store is already trading in Shanghai’s Minhang district, opened without fanfare. Convenience store penetration in China is weak by global standards. In Japan and Taiwan there is one c-store for every 2000 residents, but in China the ratio is one to 5000 and a growing number of c-store brands are evaluating the opportunity. Analysts in China say Carrefour’s move is also aimed at diversifying Carrefour’s China business beyond the highly competitive hypermarket sector. German hypermarket operator Metro, is also planning a convenience store network. Wang Hongtao, director of communications at the China Chain Store & Franchise Association, told ECNS that traditional retailers including department stores and hypermarkets have been recording slower growth because of the impact…

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Pie Face plunges into administration

Eloise Keating 24 November 2014 smartcompany Australian food franchise Pie Face has collapsed into voluntary administration. In a statement released to SmartCompany, the Pie Face Group confirmed Jirsch Sutherland has been appointed as administrators. However, Pie Face said it is “business as usual” as the administrators conduct a review of the chain’s operations. “The move comes as part of a wider company review, which will see the company focus on supporting the growth of its franchise-operated stores as well as the wholesale business,” Pie Face said. “The international businesses are not affected”. A spokesperson for Pie Face confirmed to SmartCompany there are currently 70 Pie Face franchises across Australia, although the Pie Face website lists 78 outlets, including 15 in the Melbourne CBD and 20 in the Sydney CBD. There are Pie Face stores in all states and territories, except Tasmania, South Australia and the Northern Territory, although South Australians…

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