Whole Foods accelerates sales growth, new store rollouts
Posted - January 29, 2011
Whole Foods accelerates sales growth, new store rollouts
Whole Foods Market, Inc has reported its results for the 12-week fourth quarter and 52-week fiscal year ended September 26, 2010. Sales for the quarter increased 15% to $2.1 billion. “Our ability to perform against tougher sales comparisons has continued to surpass our expectations, translating to better-than-expected identical store sales growth of 8.7% in the fourth quarter, an acceleration to 6.4% on a two-year basis. We are proud to be gaining market share at a faster rate than most public food retailers,” said John Mackey, co-chief executive officer and co-founder of Whole Foods Market.
“We attribute much of our success to the progress we have made in our relative price positioning and to our initiatives in areas such as
healthy eating, animal welfare and sustainable seafood. These initiatives are aligned with our core customer base and reinforce our position as the authentic retailer of natural and organic foods, further differentiating the Whole Foods Market shopping experience and making us the preferred choice for customers aspiring to a healthier lifestyle.”
For the 52-week period ended September 26, 2010, sales increased 12% to $9.0 billion. Comparable store sales increased 7.1%, or 4.0% on a two-year stacked basis, and identical store sales (excluding six relocations and two major expansions) increased 6.5%, or 2.2% on a two-year stacked basis. EBITDA increased 29% to $713.6 million, while income available to common shareholders increased 102% to $240.4 million.
The Company opened one store in the fourth quarter and will open three new stores in the first quarter of fiscal year 2011. WFM currently has 301 stores totaling approximately 11.3 million square feet. WFM also recently signed nine new leases including seven in the United States averaging 36,600 square feet; and two sites in the United Kingdom averaging 21,000 square feet in Glasgow, Scotland and London, England. These stores currently are scheduled to open in fiscal year 2012 and beyond.
EU consumers to buy more organics, sustainable products
Posted - January 29, 2011
EU consumers to buy more organics, sustainable products
Leading UK, European and USA researchers such as Organic Monitor, IGD, Mintel UK and USA, and Leatherhead have recently reported that sustainability and ethical products are a major trend and opportunity for packaged goods makers. Mintel UK reports that sustainability will stay focused on the basics with environmentally responsible packaging a major trend, while there will be a natural “shakedown” with regulators paying much attention to natural claims on products. Mintel USA says marketers should examine sustainability claims more closely and highlighted the importance of health, welfare and safety to all consumers, while consumers will only buy environmentally friendly or green products if the price is right.
IGD research showed that 49% of 2700 shoppers across the UK, Germany, France and Spain expect to be buying more food and grocery products with ethical credentials in the future. Organics was fifth on the list with 21% of shoppers supportive of buying more products, after buying local (35%) and Fairtrade (24%). At Organic Monitor,director Amarjit Sahota said European countries have been affected by the economic crisis to different degrees. Mr Sahota said the organic market is patchy in Europe due to the varying effects of the economic crisis, but that organic food and drink sales grew by over 15 per cent in both France and Sweden.
A recent study by Organic Monitor found that natural and organic products have about 2% share of total personal care product sales. The report finds that limited distribution was a major factor behind low adoption rates. The market share of organic foods is 7% in Denmark, with many organic products like milk and eggs having over 20% market share. However, the market share for natural & organic personal care products remains low because of poor availability.
A new Retail Info Systems survey reported by Organic Monitor in late November 2010 shows that Danish consumers would like to buy more organic personal hygiene products if they could find them in retail stores. The survey showed that 30.7% of respondents who did not buy organic personal care products said it was because they did not know of such products. Whilst 27% of the respondents said that one reason for not buy organic personal care products was that they regarded them as too expensive.
Chile’s Cencosud acquires Supermercados Bretas in Brazil
Posted - January 29, 2011
Chile’s Cencosud acquires Supermercados Bretas in Brazil
Chilean retailer Cencosud SA has purchased Brazilian supermarket chain Supermercados Bretas for BRL1.35 billion (USD$0.8 billion), Cencosud’s biggest acquisition since 2005 by its chairman Horst Paulmann. The privately-held Bretas chain operates 62 supermarkets, three distribution centres and 10 service stations in Central and Northern Brazil. Cencosud will pay 1.35 billion reais for Bretas, which will double Cencosud’s presence in Brazil. Monthly retail sales in Brazil jumped 10.4 percent in August from a year earlier and have been rising since December 2003 fuelled by record low unemployment and credit expansion.
Analysts said Cencosud’s push into Brazil is very positive because of the low supermarket penetration in that country, and that the Bretas deal consolidates Cencosud’s position as Brazil’s fourth- largest supermarket operator. Mr Paulmann, Cencosud’s German-born controlling shareholder, resumed a regional expansion late last year as Chile’s economy recovered from its steepest slump in a decade. In recent years he spent about $1 billion buying up retailers in Brazil and Peru such as Brazil’s GBarbosa Holding SA and Peru’s Grupo de Supermercados Wong.
In other Chilean retail developments, Walmart announced in December it will expand its Chilean banner Express de Lider by opening 40 stores over the next five years, SABI reports. General manager for the banner Andres Fernandez said plans were afoot to end 2011 with 56 stores, targeting ABC1, C2 and C3 consumers.
Casino’s strategic partnership with Venezuela government
Posted - January 29, 2011
Casino’s strategic partnership with Venezuela government
French-based Groupe Casino confirmed on November 26 that it signed an agreement to form a strategic partnership for the Cativen supermarket chain with the Bolivarian Republic of Venezuela, which is acquiring 80.1% of Cativen for a total consideration of 690 Million USD. The other shareholders of Cativen have disposed of their entire shareholding whereas Casino will retain a 19.9% participation in the company to continue providing operational support to and develop cooperation with the new state-controlled entity.
As a result of this transaction, the Casino Group will receive a total consideration of 622.5 Million USD related to the sale of its participation in Cativen and to the recovery of approximately 265 Million USD outstanding intercompany loans. The Casino Group said it looks forward to continue serving the consumer needs of the Venezuelan people through this newly formed alliance with the Bolivarian Republic of Venezuela.
Focus on World Food theme at BioFach 2011, Nuremberg
Posted - January 29, 2011
Focus on World Food theme at BioFach 2011, Nuremberg
Sustainability and healthy and ecological lifestyles are continuing unabated with worldwide sales growing in organic food, natural cosmetics and eco-textiles that augurs well for BioFach 2011 on 16 to 19 February, according to the organizers NurnbergMesse GmbH. The focus of BioFach 2011 is on the theme of World Food: The meeting place for next year will be devoted to the question of how biological and organic farming and production can have an appropriate life-style and food for all - how organic can feed the world.
Dr. Felix Prinz zu Lowenstein, CEO and board member B
Global food prices rise, commodity supplies hit
Posted - January 29, 2011
Global food prices rise, commodity supplies hit
The United Nations and Rabobank have forecast further price rises for a number of agricultural commodities and markets in 2011. According to figures from the UN, global food prices in December reached the highest since records began, exceeding the 2008 highs that sparked riots across the globe. An index of food commodities tracked by the UN’s Food and Agriculture Organisation (FAO) rose for a sixth straight month to 215 points, above the previous high of 213.5 in June 2008, the agency said in a monthly report.
Sugar prices are at their highest in ten years, reaching 182 points and climbing for a third year in a row. Meat reached a high of 142 points compared to 128 points in 2008. Cereal prices rose the highest in four months to hit 238 points, while dairy also rose for the fourth consecutive month to settle at 208 points. Heavy rains and floods in Queensland and New South Wales, Australia may cut some wheat, cotton and sugar supplies (sugar by 20%) and tight sugar supplies in Brazil will contribute to further shortages and price rises. Colombian coffee crops have been severly hit by a fungus following heavy rains.
Abdolreza Abbassian, a senior economist at the FAO, said that while the increase was alarming, the situation was not yet a crisis similar to 2007-08 food crisis, when food riots affected more than 30 poor countries, including Haiti, Bangladesh and Egypt. Mr Abbassian said the world faces a food price shock and that a prolonged spike could lead to a food crisis.
Global wheat prices have risen by 37 per cent from October 2009 through to September 2010. The world’s third-largest grain producer Russia, with a 13% share of the global wheat trade, suffered when deadly fires raged across the country during the summer, devastating as much as one-third of the country’s projected grain harvest for 2010. Grain prices were predicted to rise significantly as a result of the ban on exports by Prime Minister Vladimir Putin in a bid to contain domestic prices. The Rabobank Agri Commodity Markets Research Outlook 2011 expects potential price rises to be greatest for corn, soybeans and coffee.
Organic Harmony brings Jasmin Skincare to Europe
Posted - January 29, 2011
Organic Harmony brings Jasmin Skincare to Europe
Leading Australian organic skincare manufacturer and marketer Jasmin Skincare has opened its first European ‘Jasmin Reference Beauty Salon’ called Organic Harmony in Budapest, Hungary, with more stores in Europe planned. Jean Kaszacs, general manager of Green Biotech Ltd, the company representing Jasmin Skincare in Eastern Europe, said Hungary is centrally located in Europe with a good skincare culture.
“We obtained excellent feedback from both professionals and end-users that they finally have access to a skincare product range that does not only does not contain any synthetic ingredients causing allergies, irritations, etc, but also is highly effective and pleasant to use due to the high content of 100% certified organic oils and plant extracts,” he said. “We have already contacted several premium partners (beauty shops, organic shops and hotels) that are really pleased with Jasmin products and the organic concept.”
Mr Kaszacs said Green Biotech has already started to extend its operations to the surrounding countries and will move in the very short term to West European countries as well. Jasmin Skincare co-founder and chief operating officer Gordon Chalmers said that Mr Kaszacs is Jasmin’s franchisor for Eastern Europe and has also opened two further franchised outlets in Hungary and is now looking at a Jasmin shop in Athens, Greece.
Mr Chalmers said the rollout of Jasmin Skincare’s new Koala Baby organics range, which had a major launch at Cosmoprof Hong Kong in November last year, has been an instant success in north Asian countries such as China and Japan. Koala Baby is a range of mild and gentle organic cleaners, moisturisers and soothing lotions that are USDA Organic and Organic Food Chain Australia certified.
Jasmin Skincare started operations in Australia at Mt Tamborine in the Gold Coast, Queensland hinterland in 2002, now has manufacturing or packaging/filling operations in three countries, including China, and Japan. Mr Chalmers announced that Jasmin Skincare has appointed former Brisbane, Australia-based Leesa Hubbard as a Vancouver, Canada-based business development executive to look after North America distribution. (See the Spring edition of O.W.N. for more news).
Australian organics plans big impact at BioFach, Germany
Posted - January 29, 2011
Australian organics plans big impact at BioFach, Germany
The Australian organic exporters group led by Herman Claassens and Kim Morgan, who exhibited under the Australian Certified Organic banner last year at BioFach America, and BioFach Nuremberg, is gearing up to make a major impact at this year’s BioFach, Nuremberg (February 16-19) with an impactful and larger stand bearing the Australian Certified Organic green colour scheme. The stand is double the size of last year’s exhibit at Nuremberg and is being marketed as the ACO/Australian Culinary Foods stand.
Speaking with O.W.N. in Sydney in January, Ms Morgan, of mOrganics Baby O, and Mr Claassens of Australian Culinary Foods said they are confident the model will continue at major shows such as BioFach, based on the response to the first two shows attended and the leads obtained. However, Mr Claassens said a major issue is getting more co-exhibitors on board and how to fund the up to four shows planned for the group each year. It will cost $56,000 to get to Germany and exhibit at BioFach, including costs to exhibit, send two people, freight for samples, hotels, and marketing costs, while there is some financial support from certifiers, Brisbane-based Australian Certified Organic.
They say the big opportunity is to continue the brand building exercise that started with the ACO group’s first appearance at BioFach Germany in 2010 and get other Australian organic certification groups on board, such as NASAA. At BioFach Nuremberg, the ACO/Australian Culinary Foods stand is in Hall 4 - Stand 139. Companies that are participating are: Australian Certified Organic (ACO); Australian Culinary Foods/Koala Tea; Wild Fox Wines; Organic Formulations; Goode’s Honey; Organic Bubs; Sunset Ridge Organics; Tasmanian Organics; Wild Harvest; SOTO; Gourmet Organic Herbs; Organic Crop Protectants; mOrganics; and Rosnay Wines.
Ms Morgan, who is now marketing director of the Australian Culinary Foods brand, said Australia has a good reputation in Europe, but that it is hard to get funding for food promotion. The situation has worsened now that Australian government export agency Austrade does not have a food representative stationed in Europe. Ms Morgan said organic wine is a major opportunity and there was a 30% increase in Australian wine exports to Germany last year, while an Australian organic wine brand is finding success in Sweden.
Mr Claassens is selling products into Metro supermarkets in Germany and Belgium through ACF, has marketed Koala Tea and other products in Europe for over four years, and has a warehousing facility in The Netherlands. A presentation of ACF’s Rosella Hibiscus Flowers was recently made to 500 chefs in Lithuania. Mr Claassens said the group had a number of meetings scheduled with distributor’s and buyers during the show and also a meeting with a large wine distributor in Holland, prior to Nuremberg.
French giant Yoplait buys Quebec’s Liberte
Posted - January 29, 2011
French giant Yoplait buys Quebec’s Liberte
French yogurt giant Yoplait announced in December it has acquired Quebec-based yogurt company Liberte from Swander Pace Capital, Roynat Capital and the management team. Libert
EU threat to Europe’s herbal practitioners, herbal medicines
Posted - January 29, 2011
EU threat to Europe’s herbal practitioners, herbal medicines
The UK-based Alliance for Natural Health (ANH) is preparing legal action against a new European Union law due to take effect EU-wide on May 1, 2011 which could ban thousands of non-European traditional herbal medicines and threatens to drive consumers online to buy unregulated black market supplies where safety and quality cannot be assured. The Traditional Herbal Medicinal Products Directive (2004/24/EC) requires that traditional herbal medicinal products, some of which have been used in Europe for decades, must be licensed or prescribed by a registered herbal practitioner to comply with the directive passed in 2004.
The ANH said in late December that pressure from EU citizens forced a recent meeting between Members of the European Parliament (MEPs) and the European Commission (EC) to discuss the impact of the EC’s directive on herbal medicines. The ANH said: “Unfortunately, the meeting, held at the European Parliament on the 29th November 2010, showed how unwilling the EC is to follow through on a pledge it made back in 2008 on its first four years of experience with the herbal directive (the Traditional Herbal Medicinal Products Directive). In the report, the Commission specifically recognised that the directive was not suitable for holistic traditions, such as Ayurveda and traditional Chinese medicine (TCM). Crucially, it also indicated it would consider the feasibility of an entirely new regulatory framework for such traditions.”
The meeting was called due to concerns voiced through many hundreds of communications sent to MEPs, whose constituents are worried that thousands of herbal products will become illegal from 1 May, 2011. Funding of about 90,000 pounds has been made available for the first phase of the legal battle with a judicial review of the EU law at the Royal Courts of Justice in London. It is thought the dispute would then be referred to the European Court of Justice.
The ANH, which represents herbal practitioners, estimates the cost of gaining a licence, which sets safety and quality standards similar to those required for pharmaceutical drugs, at between 80,000-120,000 pounds per herb. Although supportable for big market products such as echinacea, it would prove uneconomic for most traditional Chinese and Indian medicines, containing a range of herbs.
