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Tag: fmcg

  • Shrinkflation Pushes Half of Australian Grocery Shoppers to Switch Brands

    Shrinkflation Pushes Half of Australian Grocery Shoppers to Switch Brands

    Eighty-five per cent of Australian grocery shoppers have noticed shrinkflation on supermarket shelves, driving half of them to seek out competitor brands when pack sizes shrink.

    The findings from the 2026 Australian Grocery Shopper Report show that reducing pack volumes rather than raising shelf prices carries immediate commercial risks for FMCG manufacturers. Overall price remains a decisive factor for six in 10 shoppers, but consumers now weigh cost directly against product volume, quality, and ingredient integrity.

    The cost of breaking consumer habits

    Consumer tolerance for stealth volume cuts has eroded sharply across grocery aisles. Focus Insights found that 60 per cent of shoppers do not believe packaged goods companies are transparent about size adjustments. When presented with the choice between a price increase or fewer biscuits in a pack, 59 per cent preferred the product to stay at its original size.

    Downsizing familiar products breaks repeat purchasing cycles. One in two consumers surveyed said they actively seek alternatives if a favourite item shrinks. One in three said they purchase the downsized product less often, and one in five said they stop buying the product altogether.

    The promotional trap for FMCG brands

    Price discounting adds another layer of margin pressure across the category. Nine in 10 shoppers said price promotions influence what they place in their baskets, with 57 per cent stating discounts almost always dictate their purchases. Frequent discounting cycles have conditioned 67 per cent of shoppers to defer purchases until products go on sale rather than pay full shelf price.

    For retailers and consumer packaged goods brands across Asia-Pacific markets, managing rising input costs requires explicit communication on shelf. Quietly trimming product weights threatens core volume share in high-frequency categories where private label substitutes are readily accessible.

    Focus Insights chief executive Deane Hubball and Believe You Me founder Blair Triplett will present the detailed category breakdowns and shopper sentiment data at industry briefings in Melbourne and Sydney next month.

  • New Zealand Clears Kimberly-Clark Kenvue Deal with Feminine Hygiene Divestment

    New Zealand Clears Kimberly-Clark Kenvue Deal with Feminine Hygiene Divestment

    New Zealand’s Commerce Commission has approved Kimberly-Clark’s acquisition of Kenvue. Clearance requires the business to divest Kenvue’s feminine hygiene operations across New Zealand and Australia.

    This divestment covers regional rights to brands including Carefree and Stayfree. The condition aims to prevent excessive market concentration on supermarket shelves.

    Conditions for Clearance Across Australasia

    Kimberly-Clark is acquiring Kenvue, the consumer health spin-off from Johnson & Johnson, in a global takeover. Under an undertaking given to the regulator, Kimberly-Clark must sell the entire Kenvue feminine care unit in both countries to an approved independent buyer.

    Commerce Commission deputy chair Anne Callinan said the remedy protects competition across personal care aisles, where both suppliers held overlapping product lines.

    Supermarket Consolidation and Buyer Timelines

    Australasian retailers face tightening supplier networks as multinational consumer goods groups consolidate personal care portfolios. Selling Carefree and Stayfree keeps an independent supplier in play against Kimberly-Clark’s Kotex and U by Kotex lines.

    Attention now turns to the asset sale. Kimberly-Clark must secure a commission-approved buyer within a confidential, binding timeframe to finalize the broader merger clearance.

  • Parent Hax Secures Coles Distribution for Rinse-Free Washcloth

    Parent Hax Secures Coles Distribution for Rinse-Free Washcloth

    Melbourne startup Parent Hax has secured national retail distribution with supermarket chain Coles for Top N Tail, its rinse-free washcloth priced at $15 for a 20-pack.

    The listing gives the young Australian brand immediate nationwide physical reach across one of the country’s two dominant grocery networks.

    Plant-based formulation targeting bath alternatives

    Top N Tail is formulated with plant-based cleansers, glycerin, aloe and chamomile. Unlike standard baby wipes designed for spot cleaning, the cloth is self-foaming and built for full-body cleansing without requiring water rinsing afterwards.

    Parent Hax engineered the item to bridge the gap between quick wet wipes and full tub baths, targeting parents seeking faster hygiene routines. The product cleans deeply enough to replace an evening wash while cutting down bath preparation and cleanup time.

    Supermarket baby care competition

    Supermarket baby aisles across Australia have traditionally belonged to multinational incumbents selling standard wet wipes and liquid soaps. Coles and rival Woolworths have steadily allocated shelf space to local independent brands offering premium or plant-derived formulations that command higher retail price points.

    Parent Hax enters this category at a per-unit premium compared to conventional baby wipes, betting that convenience and reduced water use justify the $15 shelf price. Initial sales performance across Coles stores will determine whether the startup can expand the range into additional personal care formats.

  • Endeavour Group Earnings Fall 8.7% as Retail Price Cuts Hit Margins

    Endeavour Group Earnings Fall 8.7% as Retail Price Cuts Hit Margins

    Australia’s Endeavour Group posted an 8.7 per cent drop in underlying earnings to $845 million after aggressive price discounting across its retail bottle shop network squeezed operating margins.

    Total sales edged up 1.3 per cent to $12.2 billion, demonstrating that sharper shelf pricing succeeded in defending retail volumes even as profit yields contracted.

    Trading profit for volume

    The liquor and hospitality operator chose to sacrifice margins to protect foot traffic at Dan Murphy’s and BWS stores. Discretionary spending among Australian shoppers remained constrained, prompting the group to sharpen shelf pricing on core beverage lines.

    “Sales momentum in retail is building with customers responding positively to our renewed focus on value and price leadership,” said managing director and chief executive Jayne Hrdlicka.

    Supermarket rivals intensify price war

    Major grocery and liquor merchants across Australasia face identical margin pressure as household budgets tighten. Competing retail conglomerates have poured cash into promotional programs and private-label alternatives to stop shoppers from migrating to discount banners, accepting compressed margins to defend market share.

    Investors now await trading updates across the peak spring and summer beverage calendar to see whether customer volume gains can outpace sustained promotional costs.

  • BioCheese Launches Protein-Fortified Vegan Cheddar at Coles for $9

    BioCheese Launches Protein-Fortified Vegan Cheddar at Coles for $9

    BioCheese has launched a protein-fortified plant-based cheddar shred across Australian supermarket chain Coles, priced at $9 for a 200-gram pack.

    The product delivers 10 grams of protein per 100 grams, making it the first added-protein dairy-free cheese stocked in Australian grocery aisles.

    Pea Protein and Melting Performance

    Formulated with pea protein, the shredded cheese is built specifically for hot and cold culinary applications. The brand designed the shred to melt in toasties and baked dishes while holding texture in tacos and salads.

    Each unit ships in a resealable 200-gram pouch intended for standard refrigerated dairy and plant-based sections across Coles supermarkets nationally.

    Protein Claims in Plant Dairy

    Plant-based cheese alternatives have historically faced pushback from shoppers over low nutritional value compared to traditional dairy cheddar. While standard dairy cheese provides around 25 grams of protein per 100 grams, standard coconut oil and starch-based alternatives often register near zero.

    By adding 10 grams of functional plant protein, BioCheese is testing whether enhanced nutritional metrics can defend premium shelf space as price-conscious shoppers scrutinise grocery spending across the Asia-Pacific region.

    Distribution is now live across Coles stores, with retail buyers watching whether the $9 price point can sustain regular basket repeat rates against traditional dairy blocks.

  • Noumi Revenue Climbs 8.8 Percent to $648.4 Million on Dairy Demand

    Noumi Revenue Climbs 8.8 Percent to $648.4 Million on Dairy Demand

    Noumi grew full-year revenue 8.8 per cent to $648.4 million for the twelve months ended June 30, led by gains in its dairy and nutritionals division.

    Adjusted operating earnings before interest, tax, depreciation and amortisation rose 7.6 per cent to $61.8 million, up from the prior corresponding period.

    Earnings improve despite shipping drag

    The Sydney-listed maker of MilkLab absorbed an estimated $2 million hit to second-half operating EBITDA caused by trade disruptions linked to conflict in the Middle East. Statutory net loss after tax narrowed 55.2 per cent to $67.2 million as legacy liabilities and exceptional costs receded.

    Operational gains came largely from higher processing volumes across dairy and plant-based beverage lines. Factory throughput remained steady across packaging facilities, offsetting higher ingredient costs with targeted wholesale price adjustments in key commercial accounts.

    Regional cafe demand supports volume

    Plant-based beverage suppliers across Asia-Pacific have faced stiff competition from local co-packers and expanding oat milk capacity. Noumi has leaned on barista-grade distribution across Southeast Asian coffee chains to protect margins that grocery private-label contracts often erode.

    Investors are tracking Noumi’s upcoming annual general meeting for detailed export segment breakdowns and full-year capital expenditure plans.

  • Ally Adds Collagen and Lifts Protein to 10G in Thailand Drink Relaunch

    Ally Adds Collagen and Lifts Protein to 10G in Thailand Drink Relaunch

    Thai functional beverage brand Ally has reformulated its Pro Fiber line in Bangkok, raising plant protein to 10 grams per bottle and adding collagen peptide.

    The updated ready-to-drink formula packs 20,000 milligrams of dietary fiber alongside psyllium husk to target digestive health and sustained fullness. Two new flavour profiles accompany the relaunch: Grape Berry, blending grape, blueberry, acai, and kale, alongside Apple Lemon, made with apple, pear, lemon, and kale.

    Upgraded formulation and new blends

    Ally originally launched the Pro Fiber line in 2025 with 8 grams of plant protein per unit. The revised 2026 iteration increases the protein dose extracted from pea and soy by two grams to support muscle maintenance while introducing marine collagen peptide aimed at skin hydration.

    Packaging changes reflect the formula shift. Psyllium husk, previously listed as a minor claim at the bottom of the bottle, now sits prominently on the front panel as a key functional selling point.

    Shift in convenience beverage positioning

    Thai beverage makers are packing multiple functional ingredients into single stock-keeping units rather than selling standalone protein or fiber drinks. Ally itself expanded into clear protein with creatine in May 2026 and rolled out ready-to-eat overnight oats in July 2026, building out a convenience-led functional nutrition portfolio in urban retail chains.

    Distribution continues across convenience store chillers and supermarket shelves in Thailand, where consumer uptake of high-fiber meal-replacement beverages will test whether multi-benefit RTD drinks can sustain premium shelf space against traditional dairy and juice competitors.

  • Filipinos Tighten Belts as Financial Pressures Mount, Study Finds

    Filipinos Tighten Belts as Financial Pressures Mount, Study Finds

    Filipino households are exercising greater caution in their spending habits, as global and political instability intensifies pressure on family finances. This trend is leading consumers to prioritize cheaper products and purchase smaller quantities, according to the Shopperscope 2026 study by Worldpanel by Numerator.

    The study indicates that Filipinos anticipate a decline in their financial and socioeconomic conditions over the next year. This marks a reversal from 2025, when there were indications of improvement. Many households are now concerned about simply covering daily expenses.

    Shifting Consumer Sentiment And Spending

    Laurice Obana, Worldpanel’s shopper insights director, noted that Filipinos are reverting to a state of financial constraint after a brief period of improvement. This pressure is widely felt across various financial segments: those who are comfortable may see their buffers shrink, managing households could face shortfalls, and struggling families may fall deeper into debt. This increased caution is already evident in consumer spending, with the local fast-moving consumer goods sector showing no growth from March to May compared to the previous year.

    To manage their budgets, consumers are actively looking for promotions and discounts, opting for more economical items, and reducing the size of their purchases. Shopping behaviors are also adapting across different retail channels. Discounters are seeing increased sales of frozen meats and non-sweet snacks, while online platforms are key for baby diaper purchases. Convenience stores, however, experienced double-digit growth in sales of snacks, ice cream, and bread.

    Retailers Must Adapt To New Demands

    For retailers, mere proximity is no longer sufficient to retain customers. Shoppers are now carefully evaluating a store’s product range and the value it offers. This shift necessitates a deeper understanding of how and why Filipino consumers make their purchasing decisions for essential goods.

    Retailers across Southeast Asia frequently encounter similar shifts in consumer sentiment during periods of economic uncertainty. Tracking these changes in purchasing priorities and channel preferences is vital for brands and operators in markets like the Philippines, Vietnam, and Indonesia, which often show parallel trends in consumer resilience and adaptability. Understanding these local nuances allows for more targeted strategies and product offerings.

  • Australian Retail Media Growth Needs Surgical Approach, Not Broad Strokes

    Australian Retail Media Growth Needs Surgical Approach, Not Broad Strokes

    Australian retailers and brands are being urged to adopt a more precise, data-driven approach to retail media, moving away from traditional broad-stroke advertising. Experts from Omnicom and Flywheel Australia highlight that significant growth in the Australian market is often missed by conventional spending, which fails to identify specific products, shopper segments, and critical moments that drive compounding sales.

    According to Mohammad Heidari Far, Managing Director of Flywheel Australia, the unit of precision required for effective retail media is much smaller than most current strategies allow. He emphasizes that treating diverse shopper groups, such as grocery, marketplace, and quick commerce customers, as a single audience is a misstep. Instead, surgical growth begins with identifying the initial product a customer buys, as this ‘point of market entry’ can predict their long-term value (CLTV) to the brand portfolio.

    Targeting Hidden Growth Pockets

    This refined approach relies on connecting product-level purchase data directly to a customer’s identity, transforming targeting from probabilistic guesswork into a near-deterministic process. An example cited involves a consumer health group with two related brands. Cross-purchase analysis revealed that 24 per cent of new-to-brand customers for the first brand bought a product from the second brand within three months, often on a different day, showing a sequential path that a single-brand view would not typically detect.

    Such insights allow brands to deliberately engineer customer journeys rather than leaving them to chance. Other insights reveal that shoppers who convert more than a day after seeing an advertisement tend to have larger basket sizes, indicating that plans solely focused on same-day returns may undervalue their most valuable customers.

    using Data and Automation

    In Australia, precision data access varies significantly. While Amazon offers self-service access to product and customer signals, similar insights from other major retailers typically require collaboration with their internal media teams, introducing potential delays and interpretation layers. Far suggests that brands should utilize mature environments like Amazon to develop frameworks and ‘muscle memory’ for precise targeting, preparing them to exploit similar capabilities as other retail media networks in the region evolve.

    Managing thousands of micro-segments manually would be overwhelming, so automation is key. Flywheel Commerce Cloud provides a standardized layer that handles repeatable decisions, freeing human teams to focus on critical judgement calls, such as identifying key ‘front door’ products or strategic cross-brand paths to fund. This blend of automation and human insight proved effective for the consumer health brand, which re-sequenced its plan around these signals for a major sales event. By retargeting first-brand buyers with the second brand at opportune moments and applying negative targeting at pharmacy retailers to ensure incremental sales, the brand saw new-to-brand sales rise by 47 per cent and return on ad spend more than doubled year-on-year. This precision also led to a fall in cost per click during peak trading due to hour-by-hour bidding adjustments.

    The Australian retail market is highly concentrated, with five major retailers commanding roughly a third of all sales. In this environment, brands that can surgically identify and pursue growth opportunities will gain a competitive edge over those with broader, less targeted spending. The focus shifts from simply measuring sales volume to understanding customer entry points that can build sustained growth over several years.

    Retailers across the Asia-Pacific region, many of whom are developing their own retail media networks, could benefit from similar data-driven strategies. As e-commerce penetration and digital advertising grow across markets like Southeast Asia and India, the ability to turn broad customer data into actionable, surgical campaigns will be a crucial differentiator for brands seeking to optimize their marketing spend and deepen customer relationships.

  • Reimagining Australian Manufacturing: Navigating Challenges And Seizing New Opportunities

    Reimagining Australian Manufacturing: Navigating Challenges And Seizing New Opportunities

    The manufacturing sector in Australia is at a critical juncture, contributing approximately 5.9% to the national GDP and employing over 850,000 people this year. Despite rebounding from disruptions caused by the pandemic, the sector is grappling with new challenges. More than 60% of manufacturers are dealing with delays in receiving essential materials, and escalating energy costs and skill shortages are exacerbating operational hurdles.

    Opportunities Amidst Challenges

    However, this uncertain environment is presenting unexpected opportunities for Fast-Moving Consumer Goods (FMCG) manufacturers who are open to reimagining their sourcing tactics. The government’s $15 billion National Reconstruction Fund demonstrates a revitalized commitment to strengthening local manufacturing capabilities. Consequently, the question FMCG firms are grappling with is no longer whether to manufacture domestically or abroad, but rather how to devise intelligent hybrid models that leverage the benefits of both methods.

    The Relevance of Local Production

    It’s time to reconsider the long-standing belief about Australian customers’ allegiance to locally made products. In low-engagement, processed categories like confectionery and chocolate, the origin of the products usually takes a backseat to taste, brand, and value. In contrast, for fresh foods, the origin continues to be a significant factor influencing purchases. Retail buyers prioritize margin, volume, inventory performance, and innovation.

    Nonetheless, this doesn’t mean the end of local manufacturing. The Australian Government’s Modern Manufacturing Strategy is supporting businesses in repatriating operations and diversifying suppliers, thereby creating fresh opportunities for strategic local production.

    Local Manufacturing Advantages

    The vulnerabilities of supply chains exposed during recent global disruptions have fundamentally shifted the risk-reward equation of sourcing from overseas. What were once clear cost savings now include hidden expenses such as inventory buffers, expedited shipping, and lost sales from stockouts. Local manufacturing presents attractive benefits in this context. Shorter lead times enable quicker responsiveness to demand fluctuations and seasonal changes.

    Environmental Considerations

    When it comes to the environmental impact of local versus offshore manufacturing, the situation is more complex than it often appears. Manufactured inputs often account for 40-70% of a company’s carbon footprint, far outweighing transport. While local production may seem like a sustainability benefit, the impact largely depends on the energy mix.

    A Portfolio Approach to Manufacturing

    The most resilient FMCG firms are moving beyond the binary choice between local and offshore production. Instead, they are devising portfolio-based sourcing strategies, optimizing each product line based on specific needs and market dynamics.

    Future of Australian FMCG Manufacturing

    The progress of Australian FMCG manufacturing reflects larger shifts in how businesses compete in today’s world. It isn’t just about cost anymore. Speed, trust, sustainability, and adaptability have all emerged as critical competitive factors. The companies that will succeed are not those that choose between local or global production, but those that understand when, how, and why to utilize each method.

    Questions & Answers

    What challenges are the Australian manufacturing sector facing?
    The Australian manufacturing sector is experiencing delays in obtaining essential materials. Rising energy prices and a shortage of skilled labor are further compounding these operational challenges.

    What opportunities are emerging for FMCG manufacturers?
    The turbulent landscape is creating unexpected opportunities for FMCG manufacturers who are willing to rethink their sourcing strategies and develop intelligent hybrid models that combine the benefits of both local and offshore manufacturing.

    How is the future of Australian FMCG manufacturing being shaped?
    The future of Australian FMCG manufacturing is being shaped by a range of factors including speed, trust, sustainability, and adaptability. Government initiatives are also playing a significant role, with measures such as the National Reconstruction Fund helping to rebuild manufacturing capability.

  • Von Dutch Diversifies: Fashion Brand Ventures Into Food, Beverage, And Hospitality Sectors

    Von Dutch Diversifies: Fashion Brand Ventures Into Food, Beverage, And Hospitality Sectors

    Fashion label, Von Dutch, is broadening its horizons by venturing into sectors of food, beverage, and hospitality. The company has officially disclosed a worldwide food and beverage licensing agreement. As a result of this agreement, the brand will introduce a collection of drinks, snacks focussed on health and wellness, and a blend of cafe-lounges under the name of Von Dutch F&B. This initiative is under the leadership of CEO Joe Wallace, a seasoned executive known for securing millions in funding and pioneering a variety of products in food tech, consumer goods, and hospitality.

    As expressed by Wallace, the vision is to create an empire far beyond just a food brand. The brand’s philosophy will hinge on entertainment, authenticity, wellness, hospitality, and a fresh vitality.

    New Product Launches

    In partnership with beverage incubator Flavor House, Von Dutch F&B will launch an organic, plant-based line of sodas and mocktails. Other exciting ventures include a new alcohol line featuring vodka, tequila, beer, and hard seltzers. This move complements the brand’s existing product – Von Dutch Water, known as a high-quality hydration product that has gained popularity across various outlets from convenience stores to bars and music festivals.

    Von Dutch Cafes and Sub-Brand Launch

    Von Dutch plans on opening its brand-new cafes in New York and Los Angeles over the next year. These spaces will transition from being daytime hubs for coffee and snacks to after-hours hotspots featuring cocktails, mocktails, and live entertainment.

    The brand, which was taken over by the White Space Group (WSG) in 2024, also plans on launching an engaging sub-brand called ‘Von Dutch Loves.’ This sub-brand will highlight music, nightlife, and underground culture through exclusive releases, artist partnerships, festival collaborations, and community-centered events.

    WSG CEO Jack Cheika expressed his excitement about the partnership, stating that the goal is to create cultural relevance in every aspect of people’s lives, from how they dress to how they dine, drink, and socialize.

    Questions & Answers

    What is the new venture of Von Dutch?
    Von Dutch is expanding its brand into the food, beverage, and hospitality sectors under the name Von Dutch F&B.

    What products will Von Dutch F&B be launching?
    Von Dutch F&B plans to launch a range of organic, plant-based sodas and mocktails as well as a new alcohol line including vodka, tequila, beer, and hard seltzers.

    What is the aim of the ‘Von Dutch Loves’ sub-brand?
    The ‘Von Dutch Loves’ sub-brand is designed to highlight music, nightlife, and underground culture through exclusive releases, artist partnerships, festival collaborations, and community-centered events.

  • Asia’s FMCG Market Thrives Amid Global Economic Challenges: A 2025 Analysis

    Asia’s FMCG Market Thrives Amid Global Economic Challenges: A 2025 Analysis

    In the face of a tumultuous global economic landscape, Asia’s fast-moving consumer goods (FMCG) market demonstrated resilience in the first quarter of 2025, expanding by 2.8% year-on-year. The growth was primarily fueled by robust performances in the food, beverages, and home care sectors, while personal care registered modest gains and the dairy segment faced a downturn.

    Northern Dynamics: Strong Demand Reshapes China’s Market

    In North Asia, consumers lifted FMCG spending by 1.9%, buoyed by significant growth in food, beverages, and home care products. Particularly notable was China, which saw a surge in demand over the festive holidays. Lower-tier cities thrived, reporting a growth of 5.9%, with town-level markets skyrocketing by more than 10%. Home care products emerged as the primary growth driver, and personal care began to show promising signs of recovery.

    Korea enjoyed a 4.2% increase in FMCG value, largely thanks to larger shopping baskets, although the frequency of shopping visits tapered off. Taiwan shone brightly, achieving an impressive 8.8% growth in value, spurred by an 8% rise in food and an 11% uptick in non-food categories.

    Southeast Asia: Consumers Tread Lightly Amid Growth

    Southeast Asia proved to be a vibrant player, outpacing the regional average with a 4.1% increase in FMCG expenditures, though consumer behavior remained cautiously optimistic. Malaysia saw a modest market growth of 1.6%, characterized by fewer shopping trips, but with consumers opening their wallets wider during each visit, thanks to festive promotions coupled with lower average prices early in the year.

    In Indonesia, FMCG value leaped by 5.5%, but a notable decline in volume marks the first time consumers have opted for reduced quantities, highlighting economic pressures that have driven them toward seeking better value or switching to more affordable alternatives. Thailand’s market grew by 2.7%, though its expansion was dampened by previous government subsidies, which led to advanced purchasing behavior late last year, with no further stimulus anticipated in 2025.

    The Philippines reported similar growth to Indonesia at 5.5%, attributed to increased spending per shopping trip, albeit with less frequent visits. Meanwhile, Vietnam celebrated its strongest first quarter in five years, invigorated by rising consumer prices for essentials and the festive Tet holiday, signaling a moderate recovery in the in-home FMCG space.

    South Asia: India Leads the Charge

    South Asia’s leading powerhouse, India, achieved a commendable 7.1% value growth, including a 4.4% increase in volume, alongside a 2.5% hike in average prices. Despite these gains, both metrics lagged behind last year’s pace, reflecting a broader trend. With inflation receding slightly, higher-income households have begun diverting their spending towards travel, dining, and lifestyle choices, while lower-income consumers remain committed to essential goods.

    Middle East Momentum Amid Growth

    Across the Middle East, the UAE made significant strides in FMCG growth during Q1, propelled by vibrant Ramadan sales and a steadily growing population. A plethora of categories reported expansion, underscoring consumer optimism in the face of ongoing pressures. Saudi Arabia too saw a rebound in FMCG volumes, driven by frequent shopping trips, even as basket sizes tightened—a sign of enhanced affordability and alleviating inflationary concerns.

    Questions & Answers

    How has consumer behavior changed in Southeast Asia recently?
    Consumer behavior in Southeast Asia is increasingly cautious, as evidenced by slower shopping frequency, even amidst higher spending per trip. This trend reflects a desire to make every visit count.

    What led to China’s impressive growth in FMCG?
    China’s FMCG growth was largely driven by strong demand during festive holidays, particularly in lower-tier cities, which managed to outpace growth in urban centers.

    What trends are emerging among different income groups in India?
    In India, higher-income households are reallocating their spending towards non-essential categories like travel and dining, while lower-income consumers continue to focus on essential goods as inflation impacts their purchasing power.

  • Arnott’s buys Kiwi biscuit maker 180 Degrees

    Arnott’s buys Kiwi biscuit maker 180 Degrees

    Arnott’s has bought New Zealand artisan biscuit maker 180 Degrees to add to its stable of sweet and savory crackers.

    The FMCG company bought the business from private equity investor KKR, for an undisclosed sum.

    Founded in 2001 by Frank Lawton, his partner Jill Seton, and Nigel Cranston, 180 Degrees has steadily built a distribution network across New Zealand and into Australia, where its products are stocked by Coles.

    Seton told the National Business Review the business was founded on passion and grew into a premium business. She said Arnott’s shared the founders’ appreciation for legacy and would continue to build the brand.

    Seton and Lawton describe themselves as “massive foodies” who used to travel the world as a butler and chef duo.

    “After years of experiencing the best of international food we settled back into New Zealand life,” she explains on the company’s website. “Our passion for entertainment and good food inspired us to make a beautiful selection of crackers and biscuits to be enjoyed on all social occasions.”

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  • FMCG brands will boost digital ad spend as consumers stick to online

    FMCG brands will boost digital ad spend as consumers stick to online

    Most Australians who started buying more of their groceries online as a result of the Covid-19 say they plan to continue to do so, even when the pandemic is over.

    A ZenPoll in early March found that 29 percent of the 1023 Australians polled started buying more groceries online as a result of the pandemic, and 21 percent of them said they would continue.

    However 74 percent still strongly prefer the in-store experience with only 24 percent preferring online.

    “As restrictions have been eased or removed, the convenience of the online experience is what has kept many new converts online, said Zenith Australia’s head of strategic insights, Kim Xavier. “So balancing the benefits of the in-store experience with the convenience of online will be a challenge for retailers.”

    The research was part of a broader international study assessing the importance of digital advertising spending by FMCG companies, resulting in Business Intelligence – FMCG Food and Drink report, published today. Zenith forecasts FMCG food and drink brands will increase their share of ad spend on digital channels by 7 percent annually through to 2023, nearly double the 4 percent increase in overall FMCG ad spend over the same period.

    “The online nature of these services is increasing supermarket retailers’ focus on digital media investment in what has otherwise been a softening market,” said Vikki Pearce, head of digital at Zenith Melbourne.

    “And FMCG brands are following suit – particularly over-indexing in their online video spend as they strive to keep top of mind and capture share of wallet not only in the growing e-commerce opportunity.”

    Globally, FMCG brands still rely heavily on traditional TV, which accounted for a 39-per-cent share of total advertising budgets last year, compared with 24 percent for brands overall.

    Zenith forecasts that FMCG digital ad spend will increase from US$12.3 billion worldwide last year to $14.9 billion in 2023, and that its market share will rise from 46 percent to 49 percent.

    “FMCG brands need a new comprehensive approach to reach-based planning,” said Ben Lukawski, global chief strategy officer at Zenith. “That means combining TV, paid advertising in online video, virtual placement in streaming video on demand platforms and perhaps even a presence in gaming, using first-party and second-party data to prevent duplication and optimize incremental reach.”

    Zenith’s report covered 12 international markets: Australia, Canada, China, France, Germany, India, Italy, Russia, Spain, Switzerland, the UK and the US, which between them account for 73 percent of global ad spend.

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  • Online FMCG sales to soar in four years

    Online FMCG sales to soar in four years

    Online FMCG sales are forecast to grow 163 per cent by 2023 across major markets, according to a new report from research organisation IGD, in association with The Consumer Goods Forum.

    The report explores three digital retail models of the future and predictions for an increasingly digital food and consumer goods industry. It finds that Asia and North America will lead the way on the rate of growth, with Europe set to develop this channel at a comparatively slower pace. Major grocery e-commerce markets will continue to expand rapidly, growing at almost four times the rate of any other channel.

    Online FMCG sales in Asia-Pacific are set to triple over the five year period, with IGD forecasting that in 2023, e-commerce’s share of grocery in Asia (7.5 per cent) will be twice that of North America (3.4 per cent), and close to three times larger than Europe’s (2.5 per cent).

    Asia-Pacific’s online grocery market will grow by 196 per cent by 2023, adding US$198 billion to the industry.

    “We are living in exceptional times,” said IGD CEO Susan Barratt, “with an extraordinary burst of retail innovation, driven largely by digital developments. With this research we explore the global proliferation of retail innovation from three different directions: established players, online specialists and the new ecosystems. We believe that plenty of the new emerging models are set to grow and prosper, which means established retailers will need to work hard and swiftly, either to limit their impact or to emulate them.”

    “While of course growth remains challenging for all of the established players in the industry, many are nevertheless finding that the ongoing disruption presents exciting opportunities,” said The Consumer Goods Forum MD Peter Freedman.

    “This report presents several ideas for consumer goods and retail companies looking to secure their long-term future, and we’ll be discussing some of these themes at the Global Summit in Vancouver: how scale and agility can impact your business model, how digital technologies will permeate decisions and how new forms of collaboration will help drive the sustainable evolution of our industry.”