Page 6 - Food&Drink Magazine Jan-Feb 2019

NEWS
Suppliers help
feed Aussies
in need
MANILDRA Group and MSM Milling have helped Foodbank to provide 51 million meals to Australians in need through their flour, sugar and oil donations despite some of the toughest drought conditions on record.
The donations are part of Foodbank’s collaborative supply program, which sees suppliers work together to produce essential foods.
The hunger relief organisation says that since 2004, Manildra Group has provided flour to manufacture pasta with Rinoldi as part of the country’s first program of its kind.
From 2009, MSM Milling has provided canola oil donations for the production of Leggo’s Napoletana Pasta Sauce in a joint initiative with Simplot and its ingredient suppliers. Sugar for the pasta sauce is also donated by Manildra, through Sunshine Sugar.
Foodbank Australia’s National Supply Chain general manager Michael Davidson said the organisation is incredibly grateful for the ongoing support and partnership with both Manildra Group and MSM Milling.
“With more than 40 per cent of Foodbank’s total food relief volume helping regional and remote communities and the tough season at hand, the involvement of these two leading regionally-based manufacturing companies is appreciated and needed more than ever to help communities and vulnerable Australians, including here in their own backyard, in Orange andregionalNSW.” ✷
MG’s former MD fined over milk prices
FORMER Murray Goulburn (MG) boss Gary Helou has been fined and ordered to leave the industry for three years in a Federal Court deal.
The former managing director must pay $200,000 in penalties for being knowingly concerned in MG’s false or misleading claims about the farmgate milk price it expected to pay dairy farmers during the 2015-16 milk season.
“The penalty imposed against Mr Helou reflects his seniority at Murray Goulburn and involvement in misleading representations about the farmgate milk price,” ACCC deputy chair Mick Keogh said.
Murray Goulburn admitted to making false or misleading representations in breach of the Australian Consumer Law when it represented to farmers in Victoria, SA and
southern NSW on 29 February 2016, and subsequently until 27 April 2016, that it could maintain its opening milk price of $5.60/kgms.
The ACCC said Helou had admitted he was involved in the misleading representations made by MG, including not informing farmers of risks known to MG, and of making unfounded assumptions that MG could achieve its milk powder sachet sales targets.
“Murray Goulburn’s misrepresentations meant farmers were not informed of the likelihood the final milk price would fall below the opening price. This was
important information for farmers as it would have influenced the business decisions each farmer made,” Keogh said.
“Farmers were denied the opportunity to plan for the impact of the reduced milk price on their businesses between February and April 2016, including implementing measures to reduce their exposure to a decrease in the milk price or shopping their milk around to other dairy processors.”
The ACCC said it did not seek a penalty against MG as it was a co-operative and owned by the farmers who were misled. ✷
Vesco signs on to make and market Lean Cuisine
VESCO Foods has signed a ten-year licence agreement with Nestlé to manufacture and market the Lean Cuisine frozen ready meal brand in Australia and New Zealand.
Prior to the agreement, Simplot Australia, which has manufactured and marketed the brand since 2009, announced its decision not to renew its licence agreement which it ends in November 2019, in line with a broader business review that saw the company exit the frozen meals category.
Vesco Foods will manufacture the range at its Perth and Brisbane facilities.
“Vesco Foods is a focused ready meals manufacturer, with a strong track record of innovation in the category,” Vesco Foods CEO Bernie Pummell said. “This is a logical and important growth initiative for us and we look forward to developing and growing the Lean Cuisine brand in this region.”
Nestlé Australia sales director Andrew Lawrey said, ”Vesco Foods has a strong position in the frozen meals category and we are confident they will advance the Lean Cuisine business in the future.”
Nestlé said the three companies have committed to work closely together to ensure consumers and customers experience a smooth and seamless transition in 2019.
Terms of the agreement have not been disclosed. ✷
6 | Food&Drink business | January-February 2019 | www.foodanddrinkbusiness.com.au