WORLD FOOD MOSCOW

WORLD FOOD MOSCOW

For more than 30 years, World Food Moscow has maintained status of the main autumn business platform providing food market leaders with space for real-life communication.

In 2021, World Food Moscow was attended by 16,430 wholesalers and retailers, food service providers, HoReCa specialists, as well as food manufacturers from 82 Russian regions and 75 countries. Among WorldFood Moscow visitors are executives, deputy executives, managers and specialists of such companies as Azbuka Vkusa, Auchan, Billa, VkusVill, Globus, Delikateska.ru, Dixy, Komandor, Krasnoe i Beloe, Lenta, Magnit, Magnolia, Miratorg, O’KEY, Perekrestok, Pyaterochka, Utkonos, Food City, Shokoladnitsa, Yandex Shop, Metro Cash&Carry, Ozon, Spar, X5 Retail Group, and many others.

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Russian retailers take preventive measures against Covid-19

Russian retailers take preventive measures against COIVD-19

Lenta, the 4th largest Russian food retailer, installs protective screens

To protect their cashiers, Lenta, N4 Russian food retailer, is being installing plastic screens. The work has been completed in all 249 retailer’s hypermarkets, and will be completed in its 131 supermarkets by the end of March. It is one among other measures taken by the retailer: the improvement of ventilation systems work, more frequent cleaning of the premises, temperature control for stuff and the installation of disinfection units in every store.

Magnit sends its staff to remote work

Magnit, the second largest Russian food retailer, is going to send half of their office staff for the remote work, in the first place, pregnant women and 50 years old and more employees. Those who cannot work remotely will communicate with all third partners by phone. Total staff of Magnit by the end of 2019 was 308,000, including 50,000 of office workers.

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Discounters gobble up market share in UK

Discounters gobble up market share in UK

 

The UK’s major supermarkets have not been having it their own way for some time now. As consumers seek better value for money, the stage has been set for discounters to thrive. A study published by Global Data estimated that while the UK grocery market is expected to grow by 15% to £174.5 billion by the end of 2024, the so-called ‘Big 4’ grocers are set to lose £1.9bn (1.1%) market share to their discounter rivals. The study also found that supermarkets will likely see 12.6% growth by 2024, while discounters will grow by 25% and online pureplays by 55.1%.

Speaking to Retail Gazette, GlobalData retail analyst Thomas Brereton said, “The recent set of supermarket Christmas trading results shows that UK shoppers still have an unsatisfied appetite for the proposition of the discounters; Lidl performed especially admirably, growing year-on-year sales 11 per cent in December. While there is evidence of a slowdown in like-for-like sales growth at Aldi and Lidl, both retailers still have substantial expansion plans for the UK – particularly within the M25 – over the next few years.”

 

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Coronavirus fears trigger panic stockpiling across world

Coronavirus fears trigger panic stockpiling across world

 

Panic induced by the coronavirus is leading to consumers bulk buying food, health care and other essential products as fears rise over potential supply disruptions. Retailers across the world are reporting crowded supermarkets and emptying shelves of items such as hand sanitiser and dry groceries like rice, pasta and canned foods. Consumer market researcher Nielsen that “pandemic pantries” are now spreading across the world. 

The emergency buying up of essential goods is also boosting spending on non-essentials like supplements, fruit snacks and first aid kits.

According to Nielsen, “In Vietnam, 45% of consumers polled said they’ve increased what they’re stocking at home, and 25% are buying more items online. Similarly, in Taiwan, instant noodles have been plucked from shelves and are now difficult to find in stores.

Analyst Kelly Bania of BMO Capital Markets describes the current situation and the direction it might take: “We see risk for a scenario in which COVID-19 virus significantly alters the food consumption patterns of Americans on a short-term and possibly uncertain timeframe. We also see increasing risk from the emotional impact on consumer confidence/spending patterns, given near correction status on the market. Going forward, it will be increasingly difficult for investors and companies alike to discern the underlying cause of these potential shifts and or areas of weakness.”

It is likely that there will be a shift from eating out to eating at home, which could further drive an increase in online food and grocery spending.

 

Nielsen-Coronavirus Pandemic Pantry Chart

 

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Tesco sells off south-east Asian operations 

Tesco sells off south-east Asian operations 

 

UK retailer Tesco is to pull out of south-east Asia, having agreed the sale of its operations to Thai conglomerate Charoen Pokphand for US$10.6 billion. This represents a major reversal of its strategy of international expansion. 

In a statement, Tesco’s chief executive, Dave Lewis, said: “Following inbound interest and a detailed strategic review of all options, we are announcing today the proposed sale of Tesco Thailand and Tesco Malaysia. This sale releases material value and allows us to further simplify and focus the business, as well as to return significant value to shareholders.” 

Tesco’s sale of its nearly 2,000 stores in Thailand and 74 in Malaysia constitutes the final stage of its exit strategy from Asia, having sold its South Korean HomePlus business in 2015. In February, Tesco announced its plans to sell its 20 per cent stake in Gain Land to China Resources, to end its activities in China.

Charoen Pokphand outbid two rival Sino-Thai conglomerates, Central Group and TCC Group. Central Group’s offer was just over US$9bn, according to people close to the deal, and TCC recently raised a $10 billion loan to finance its bid, according to Bloomberg. 

 

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Carrefour opens 10 new stores in Poland

Carrefour opens 10 new stores in Poland

 

Carrefour Polska has opened ten new outlets in the first two months of 2020, including four convenience stores in Warsaw. The retail giant plans further openings throughout the year. The move is part of Carrefour’s expansion in the country Poland, with the opening of its first organic stores at the end of 2019. 

Michał Florkiewicz, Carrefour Convenience Store Director for Poland, said: “Under the name of Carrefour, there are already more than 650 shops in Poland operated by our franchisees in three different formats. In 2019, we opened over 100 new shops all over the country.” 

In 2018, Carrefour offered a new retail format for the Polish market: a Carrefour Express tailored for petrol stations, which has become very popular. Carrefour Polska operates convenience stores in three formats – Carrefour Express Convenience, Carrefour Express Minimarket, and Globi.

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Spinneys, the Dubai retailer that never compromises on quality 

Spinneys, the Dubai retailer that never compromises on quality 

Ethnic mixture of consumers, tough competition, high demand for organic produce, and distaste for plastic packaging are the challenges and opportunities for the retailer.

Spinneys Dubai operates 50 Spinney’s supermarkets and eight Waitrose stores. Its story started in 1961, with its first supermarket opening in 1962. Nowadays, Spinneys enjoys a well-deserved reputation for being forward-thinking and keeping pace with the changes in eating trends by offering new products from around the world. Food standards, safety and freshness have always been at the forefront of the company’s ethos. “We don’t compromise on quality; our objective is to give customers the best shopping experience,” said Stephen Rudge, commercial manager for fresh produce. “That explains why we are moving ever more toward growers and direct import. We buy around 80% of our goods directly from growers and the countries of origin.” As well as supporting local food producers within the UAE, the company has developed an enviably comprehensive network of reputable suppliers around the world. The retailer has sourcing teams located in different countries: the US, Australia, the UK and South Africa. “Our ambition is to establish closer relationships with growers, while closely following new varieties and new developments to understand what’s coming onto the markets,” said Rudge. “When we can, we want to be the first ones on the market.” 

Variety choice, a key issue

Spinneys puts great stock in selling a varied range of products. For instance, it offers very distinctive grape varieties like Cotton Candy, which has sold extremely well following in-store tastings. There are sampling stations at all of Spinneys’ large stores, with each week customers having the chance to try a new variety or product, or a product from a new country of origin. The same is true with berries. There have been numerous breeding programmes over last 15 years and more new materials have come onto the market. But the difference between good berries and bad berries is huge in terms of flavour, sweetness, texture, and shelf life. “We talk to the growers and we choose the best varieties. After each season, we discuss the results with producers, and include the successful varieties in our following season’s programme,” said Rudge. 

Competent marketing and promotion boost sales 

The UAE contains a wide spectrum of consumers among its 10 million population, and Spinneys has a particularly strong European, Emirati and Asian customer base. “We have such a mix of customers, and we take into consideration the tastes of all of them,” said Rudge. “We also offer ready-to-eat formats, such as peeled pomelo cut into individual segments. Pomelo is a fabulous product!” Spinneys has two formats of ready-to-eat products: one consists of pre-packed fruit, and the other of ready-prepared salads in the deli section, both of which have become very popular for their freshness. Spinneys widely social media extensively to promote its healthy products and participates on a morning fruit show on a Dubai radio station, which enables new products to be introduced. Indeed, following its promotion, kale has now become one of the best-sellers. 

Another feature of the Emirates is the fact that sales of organic products constitute 10% of total volume, which is much higher than in Europe where the average is 5%. The country is also committed to the war against plastic. “It is a real challenge, as suppliers cannot change their packaging in such a short time, and recycling is not well developed in the country. Spinneys will have to develop its own solution, as this is what customers are demanding,” said Rudge.

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SPAR South Africa’s rural hubs show promise

SPAR South Africa’s rural hubs show promise

 

Sustainable local supply chains for produce grown in remote areas are at the project’s heart

SPAR South Africa sees small-scale rural farmers as the key to a sustainable future for the vast nation. It believes they can help improve food security, affordability and nutrition for its rural communities. With the Dutch-founded SPAR Group and support from the Dutch government, it has created a rural hub business model based on packhouses serving as mini distribution centres in outlying areas of South Africa. The idea is to develop local supply chains of fresh produce in a cost-efficient and environmentally responsible way. And while its initial two hubs have not been without challenges and are not yet profitable, SPAR South Africa believes “we have created a sustainable model that can be rolled out nationally.”

More rural farmers starting to thrive 

SPAR’s first rural hub was established in Mopani, in Limpopo, South Africa’s northernmost province, in June 2016. It is based on the concept of a central fresh assembly point (FAP), which acts as a collection point for a range of fresh produce sourced from smallholder farmers to supply local SPAR stores within a radius of up to 200 km. SPAR says that over July 2018 / June 2019, 10 farmers/groups supplied the Mopani hub, many of whom could finance a portion of their business themselves for the first time – a sign that they can now stand on their own feet. The hub bought produce worth R1.26 million (≈€80,300) from them, with crops including green beans, baby marrows, butternuts, baby corn, cabbage, watermelon and lettuce. The hub in turn supplied 41 customers, most of which were SPAR stores, and in the past year sold more produce to informal traders, something seen as a significant development. A second rural hub business was established in Ikhwezi, in the northeastern province of Mpumalanga, in October 2017, with a group of 36 smallholder farmers. Over the same period, the Ikhwezi hub purchased produce worth R1.16 million (≈€74,000) from 24 farmers. Crops included tomatoes, cabbage, butternut, green beans, bitter melon, lettuce and sweet potatoes. The packhouse supplied 27 customers, most of which were SPAR stores.

Overcoming challenges

SPAR chairman Mike Hankinson says the rural hub project shows early signs of being financially sustainable for a group of small emerging farmers, but there was a need to find new ways for the economics around delivery and packing to make sense. One challenge was that low-margin products, such as cabbage and spinach, continued to be sourced by local SPAR stores directly from smallholder farmers in close proximity to the stores. However, many of these small businesses were at risk as they lacked food safety accreditation to sell their produce directly to stores. Routing these products through the FAPs, on the other hand, incurred unnecessary transport and handling costs. To address such issues, SPAR has developed a model to transport certain produce directly from farmer to store, while other items are distributed through the central FAP. Also, the farmers have received food safety training in order to get local.g.a.p certification, and technology solutions were introduced to help farmers grow high value crops and extend their growing seasons, thereby improving their sustainability. “We remain committed to the concept of rural farmers supplying fresh produce to SPAR stores. It has the potential to provide employment, grow rural economies, ensure food security and improve nutrition, while reducing transport costs for SPAR, shorten lead times, and increase freshness and shelf life,” Hankinson said.

SPAR South Africa acts as a supermarket supplier

Established in 1963, SPAR South Africa grants licences to independent retailers to operate stores under one of four formats, with almost all of its current store portfolio independently owned. “The SPAR Group in Southern Africa acts as a wholesaler distributing the entire range of goods stocked by a typical supermarket, including fresh produce,” SPAR South Africa fresh food manager Peter Gohl told ED. “We supply a range of about 450 fresh produce products to about 850 independently owned and managed SPAR retail stores through 6 strategically located distribution centres. Excluding our SPAR Group Ltd European and UK/Irish holdings, the Southern Africa turnover in fresh produce amounted to about €320 million over the past 12 months. Of this, the fruit category contributed €130 million and imports in the fruit category amounted to €28 million,” he said.

Source: https://investor-relations.SPAR.co.za

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Sainsbury’s commits to £1 billion to become Net Zero by 2040

Sainsbury's commits to £1 billion to become Net Zero by 2040

UK retailer Sainsbury’s has issued a pledge that its operations will become Net Zero in line with the goal to limit global warming to 1.5°C, the highest ambition of the Paris Agreement, and a decade ahead of the UK Government’s own target. The project will focus on reducing carbon emissions, food waste, plastic packaging, water usage and increasing recycling, biodiversity and healthy and sustainable eating    Sainsbury’s will work collaboratively with suppliers and will ask suppliers for their own carbon reduction commitments. 

According to a press release issued by the retailer, its current carbon footprint is one million tons, which is a 35% absolute reduction in the last 15 years despite its space increasing by 46% over the same time frame. For the last six years Sainsbury’s has been awarded an A rating for taking action on Climate Change by the CDP, the highest rating of any UK supermarket.

Sainsbury’s will use the £1 billion investment to implement a programme of changes, with a focus on reducing carbon emissions, food waste, plastic packaging and water usage and increasing recycling, biodiversity and healthy and sustainable eating. The investment will enable the business to fulfil Scope one and Scope two emissions, putting the business on course for Net Zero a decade ahead of the UK government’s deadlines. 

The retailer will work with the Carbon Trust to assess emissions and set science-based targets for reduction, publicly reporting on progress every six months. The targets will align the business with the goal to limit global warming to 1.5°C, the highest ambition of the Paris Agreement. Sainsbury’s will work with suppliers to set their own ambitious Net Zero commitments, in line with the Paris Agreement goals.

Mike Coupe, now former CEO of Sainsbury’s, said: “Our commitment has always been to help customers live well for less, but we must recognise that living well now also means living sustainably.  We have a duty to the communities we serve to continue to reduce the impact our business has on the environment and we are committing to reduce our own carbon emissions and become Net Zero by 2040, ten years ahead of the government’s own targets, because 2050 isn’t soon enough. We have a strong heritage of reducing our carbon emissions – we have reduced them by 35% over the past fifteen years despite the footprint of our business increasing by over 40%. We invested £260 million in over 3,000 initiatives over the last decade, including the start of our LED lighting programme and refrigeration. Over the next 20 years we will invest a further £1 billion in programmes that will transform the way we do business and put environmental impact at the forefront of every decision we make.”

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Departure of Sainsbury’s CEO “not due” to Asda deal collapse

Departure of Sainsbury’s CEO “not due” to Asda deal collapse
Credit: Peter Nicholls, Reuters, The Times

 

Sainsbury’s CEO, Mike Coupe, has announced his resignation but will remain in his post until the end of May. His replacement will be current retail and operations director, Simon Roberts. Coupe has denied that his resignation is linked with the collapse of the £12 billion merger with Asda, emphasising that it was his own decision to leave. 

Sainsbury’s proposed merger with Asda fell through last year when the CMA found that the deal could lead to higher prices for customers. Speaking to the BBC, Coupe said, “If you looked at our AGM last year, 99.5% of our shareholders voted for me to carry on what I’m doing. It’s absolutely my choice You see the amount of change that is going on in the world of retail, who knows what will happen in the next five to 10 years, but one way or another there will be a significant rationalisation of brands you have taken for granted for a generation.”