FMCG News: Vertex Resourcing’s Weekly FMCG Roundup.
Happy Christmas, everyone! Today, we take a closer look at how Bestway acquired Costcutter, we follow Sainsbury’s as they go live in Saudi Arabia and how Mars Food are prioritising recyclable packaging. Enjoy!
Bestway Wholesale Acquires Costcutter
Bestway Wholesale has agreed on a deal to buy the symbol group operator Costcutter from the Bibby Line Group for an undisclosed sum, marking a significant move in the independent convenience retail sector.
Bestway said the acquisition of the Costcutter Supermarkets Group (CSG), which will complete on approval from the Financial Conduct Authority (FCA), follows an improvement in the chain’s performance over the last couple of years.
During the 12 months to the 31st of December 2019, CSG’s revenues rose by 10% to £426 million with sales and profitability continuing to rise during 2020 as consumers increasingly shopped locally because of the pandemic.
The acquisition is expected to be completed in the first quarter of 2021, with CSG then becoming part of Bestway Wholesale’s retail division.
Approximately 1,500 stores operating under the Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh fascias, will join Bestway’s current host of retail brands – Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
Bestway stated that it was committed to ensuring retailers continue to enjoy all the benefits they currently enjoy with CSG.
Sainsburys goes live in Saudi Arabia
Sainsbury’s has entered the Saudi Arabian and Bahraini retail markets for the first time with a range of 500 own-brand lines.
It has struck a deal with Tamimi Markets to have ambient and frozen items sold across the retailer’s 45-strong store estate and on its website.
The range includes own-label tea, coffee, oils, condiments, cereals, sauces and ice cream.
Sainsbury’s has wholesale partnerships with Kibsons, an online grocery retailer in UAE, and Al Meera, a supermarket chain in Qatar. It also ran a trial deal with Asian food giant Dairy Farm Group to stock its products in selected Wellcome, Marketplace, and ThreeSixty stores in 2017.
Mars Food and Amcor to Launch Recyclable Microwaveable Rice Pouch
Mars Food has announced that it will begin to use recyclable monolayer polypropylene plastic in its microwavable rice pouches for brands such as Ben’s Original and Seeds of Change.
The project is the result of a three-year partnership with Amcor to develop sustainable packaging alternatives and moves both companies closer to their goal of achieving 100% recyclable or reusable packaging by 2025.
According to the companies, the launch will bring to the market the industry’s first food safe mono material microwavable rice pouch.
The new pouches will use Amcor’s breakthrough AmLite HeatFlex recyclable monolayer polypropylene material which will allow Mars Food to retain the shape, shelf life, safety standards and functionality of its traditional packaging while ensuring that pouches can be mechanically and chemically recycled where infrastructure exists.
The recyclable pouches will launch in selected European markets by the middle of 2021. Mars Food will aim to further scale the technology across its portfolio by the end of 2021.