Friday 24 November 2023

Nissan £2bn Investment

Nissan and its partners have announced a £2bn plan to build three electric car models at its Sunderland factory. The Japanese firm will build electric Qashqai and Juke models at the plant alongside the next generation of the electric Leaf, which is already produced there. The scheme could help preserve the jobs of about 6,000 workers directly, and thousands more across the UK. Nissan said that alongside this, a major new battery plant known as a "gigafactory" will also be needed. Nissan will spend £1.12bn on preparing its UK facilities and supply chain for the new models and training its workforce. Alongside the gigafactory the total new investment will be up to £2bn, according to the company. Post-Brexit trading rules due to take effect in January next year will trigger a 10% tariff on cars sold between the UK and European Union unless carmakers have sourced 45% of their components by value from the UK or EU. The rules were designed to protect the European industry from cheap imports. In September Prime Minister Rishi Sunak announced a major shift in UK green policy by delaying a ban on new petrol and diesel cars by five years, to 2035. Nissan said in September it would not change its timetable, and that it would stick to manufacturing electric vehicles only by 2030. The firm's boss Makoto Uchida said at the time it was the right thing to do for its business, customers and for the planet.

HMV Flagship Store Returns

HMV's flagship record store has been reopened by pop band Madness on Oxford Street following a four-year hiatus. The century-old music chain closed its main London branch in 2019 after going into administration. It was then taken over by Sunrise Records. The company said its return was due to a "dramatic turnaround", with HMV returning to profit in 2022. Owner Doug Putman said the reopening would lead to HMV "once again becoming a mainstay on the UK High Street". The store at 363 Oxford Street opened its doors to the public at 11:30 GMT. It had first appeared on London's iconic shopping street in 1921. He said the store has a floor dedicated to a live stage, with individual floors for vinyl, pop culture and DVDs. Over the years, the store had burned to the ground and was rebuilt; it became an air raid shelter in World War Two and in 1962 became the location for the Beatles recording said to launch their career.

John Lewis Health Checks

John Lewis is to offer health checks to customers including tests for vitamin deficiencies and hormone imbalances. It will partner with Covid-19 testing company, Randox Health, opening clinics at stores in an attempt to attract more customers through the doors. The first clinic will be at the High Wycombe store starting on the 18th December, followed by the Bluewater shopping centre branch in Kent. It is part of a move to add more services after sales fell at the chain. John Lewis said it would make healthcare "more convenient and accessible". Customers will be able to sign up to Randox programmes - which include a range of health checks, starting at £295. Randox Health came to prominence during the pandemic, becoming a major supplier of Covid-19 tests. UK High Streets and shopping centres have struggled to compete with the rise of online shopping in recent years, made harder by the shift to home and hybrid working following the pandemic. The challenges proved too much for some chains, including rival department stores BHS and Debenhams. To compete John Lewis has been steadily increasing the services it offers. It already hosts opticians, travel agents, beauty salons and personal shopping services as part of its effort to diversify its offering to customers. The pivot to more services, alongside its homeware, clothing and other products, was part of an overhaul spearheaded by the retailer's chairwoman, Sharon White, who will leave the firm in February next year.

Monday 20 November 2023

Hotel Chocolat Sold to Mars

The co-founders of Hotel Chocolat will each get £144m after agreeing to sell the British business to Mars. The US confectionery giant will pay £534m for the firm that Angus Thirlwell and Peter Harris set up in 1993. Hotel Chocolat said the deal would allow the brand to "grow further and faster", including overseas. The company has had mixed success with expanding internationally and last year had to shut down its five shops in the US. The company is mostly based in the UK with around 124 shops, but has some overseas. Mr Thirlwell said: "By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities." Mr Thirlwell and Mr Harris each have a 27% stake in Hotel Chocolat. Mr Thirlwell, who will stay on as chief executive, said that he would invest 80% of the £144m he will make back into the company. Hotel Chocolat started by selling its upmarket confectionery online and opened its first shop, in north London, in 2004. Commenting on whether Mars intended to change Hotel Chocolat's recipes following the takeover, Andrew Clarke, global president of Mars snacking, said there were "absolutely no plans" to do that. There are also no plans to start selling Mars confectionery in Hotel Chocolat shops.

Wednesday 15 November 2023

Iceland Cancels Christmas (Advert)

 
Supermarket chain Iceland has said it will not roll out a Christmas advert this year and will instead spend the money supporting its customers. It comes as consumers continue to struggle with increased food prices"Rather than spend millions creating and sharing a TV ad, we chose to invest the money supporting our customers during the cost of living crisis," Iceland's managing director said. Richard Walker said in a post on X that the decision was a "no-brainer". Taken as a whole, advertisers are set to spend a record £9.5bn during this festive season, according to new data by the Advertising Association and World Advertising Research Centre. Last year, some retailers toned down their Christmas adverts as retail experts warned that some of the traditional adverts were out of touch with households battling higher prices. This year, many supermarkets have spent heavily on getting famous faces to front their campaigns.

Booths Put Staff Back Behind Tills

 
Supermarket chain Booths is axing almost all self-service tills in its stores in what it says is a response to customer demand. All but two of the 28 stores run by the company, which trades in northern England, will have staffed checkouts. Booths is believed to be the first UK supermarket to move away from using self-service tills, which have become increasingly common in recent years. "We believe colleagues serving customers delivers a better customer experience and therefore we have taken the decision to remove self-checkouts in the majority of our stores," the company said. Mr Murray added: "We are a business that prides ourselves on the high standards and high levels of warm, personal care. "We like to talk to people and we're really proud that we're moving largely to a place where our customers are served by people, by human beings, so rather than artificial intelligence, we're going for actual intelligence." The company, which has been described as a northern Waitrose, said its philosophy since 1847 is to "sell the best goods available, in attractive stores, staffed with first class assistants". "Delighting customers with our warm northern welcome is part of our DNA and we continue to invest in our people to ensure we remain true to that ethos," the firm added.

Health & Safety Failure

A food company has admitted failures that led to one of its workers being strangled on a machine that makes carrot batons. Remigiusz Cyrek was choked unconscious after being dragged into the machine and trapped by a giant roller. Kettle Produce admitted failing to ensure the safety of staff at its Orkie Farm facility near Freuchie, Fife, from August 2017 to June 2018. The company, which has a £150m turnover, faces a substantial fine. The prosecutor told the court that Mr Cyrek was treated by paramedics and taken to hospital with severe swelling and bruising to his neck. He suffered a loss of feeling in his fingertips. Ms Adair said the firm failed to have a safe system of work. Counsel for the company, Barry Smith, said Kettle Produce "very sincerely regret this accident occurred" and that Mr Cyrek was a "valued employee". He said the company, which was founded in 1976 and has 1,100 staff, was a market leader in the prepared vegetable sector and was a "large company" in terms of turnover. He urged the court to take Covid-affected losses of over £4m over the last two financial years into account when deciding the scale of the fine to impose.

Wednesday 8 November 2023

Caramac Discontinued

Fans of the caramel bar Caramac have been left "devastated" after Nestlé confirmed it is discontinuing the sweet. Nestlé said it was "a difficult decision" but pointed to slower sales in recent years. Caramac was launched more than 60 years ago, quickly gaining popularity thanks to its distinctive red and yellow wrapper and caramel flavour. It comes as rival brands have launched similar "blonde" chocolate products. Cadbury's, for example, launched its Caramilk range in 2021 and has since made various different spin-offs like Caramilk Buttons. News of Caramac being axed first surfaced on social media on Tuesday, sparking an outcry from fans. On X, formerly known as Twitter, one said the news had "ruined my day" while another quipped: "Rest in peace Caramac." Since its launch, the bar has been produced in the UK. In 1996, production moved to the North East of England, with a factory in Newcastle continuing to make the bars until now. Caramac won fans over with a unique flavour and texture due to the fact it does not contain any cocoa. But with other Nestlé chocolate bars taking centre stage, Caramac has not been performing as well in a competitive confectionery market, despite customers' nostalgia and its iconic red-and-yellow wrapping.

Top Toys For Christmas

Families are expected to leave it late to buy Christmas gifts this year as household budgets are squeezed by high bills and prices. Sales in the UK toy sector are down so far in 2023, and parents may decide to wait until after December pay day before taking the festive plunge. But some are likely to join a growing trend of giving an early present on Christmas Eve. Analysts say there are signs of shoppers returning to physical stores. In a partial rebound after Covid, in-store sales are up by 3% at the expense of purchases online. Brian Simpson, of the Toy Retailers Association, said customers appreciated the advice of staff such as whether toys were appropriate for certain age groups, or how quickly batteries needed changing. The association has unveiled its DreamToys list of 20 products it expects to sell well this year. The items range in price from £8.99 to £149.99, but also display the industry's reliance on old favourites and renewal of successful brands. This year's list includes a robotic dog that passes wind - virtually, Barbies and Ninja Turtles that draw on recent film releases, and a variety of slow reveal toys aimed at ensuring children play with their presents beyond Christmas morning. For the first time, Artificial Intelligence (AI) is used as part of the well-established game of Pictionary, and - to the relief of exhausted parents - Hot Wheels toy cars come with their own storage vehicle so children can tidy them up.

Misleading Eco Claims

Coca-Cola, Danone and Nestle have been accused of making misleading claims about their plastic water bottles being "100% recycled". A consumer body and two environmental groups have issued a legal complaint to the European Commission over the alleged greenwashing. They argue that the bottles are never made wholly of recycled materials. Companies are accused of greenwashing when they brand something as more eco-friendly, green or sustainable than it really is. It can mislead consumers who hope to help the planet by choosing those products. The complaint to the European Commission focuses on claims by the companies that the single-use plastic water bottles they supply are either 100% recycled, or 100% recyclable. They insist the bottles are never made wholly of recycled materials, and the ability to recycle them depends on a number of factors, including the available infrastructure. If the European Commission agrees with the complaint, it can organise a co-ordinated response among national consumer authorities, who can then take action. This could involve asking the companies to rectify the situation, or imposing fines within their own borders. 

Monday 6 November 2023

Chicken Nugget Recall

 
American meat processor Tyson Foods says it is recalling around 30,000lb (13,608kg) of chicken nuggets, after metal pieces were found in the product. The firm said the voluntary recall is "out of an abundance of caution". The nuggets were produced at one facility and shipped to distributors in nine US states including Alabama, California and Illinois. The US Food Safety and Inspection Service (FSIS) said it had received one report of a minor oral injury. The FSIS said anyone concerned about an injury or illness should contact a healthcare provider. The dinosaur-shaped "Fun Nuggets" affected by the recall have a used by date of 4 September 2024. Tyson added that customers who had purchased the product should discard it and contact the firm. This is not the first time Tyson, the largest US meat producer by sales, had to exercise a recall. Last year in November the firm recalled ground beef, after finding pieces of "mirror-like" material in the meat. In 2019, the company recalled a batch of its chicken nuggets after customers found pieces of blue rubber insideThat same year, it recalled millions of pounds of chicken strips following concerns they might be contaminated with metal. In 2022 Tyson shut a number of chicken processing plants in the US due to a slump in demand. But as the price of beef and pork jumped higher than how much a chicken would cost, many consumers switched to the cheaper poultry. This raised hopes that the recent spike in demand could boost profits for food companies.

Rain hits Shops

 
Last month's wet weather dampened shoppers' appetites for visiting stores, just as retailers gear up for the key Christmas season. Footfall on High Streets, retail parks and shopping centres fell by 5.7% in October from a year earlier, according to the British Retail Consortium (BRC). Cost of living pressures also affected spending habits, it said, with consumer confidence still weak. Shoppers are more reluctant to make bigger purchases, the BRC added. The heavy rainfall seen last month, which included the impact of Storm Babet, meant many people were decided to stay at home rather than head to the shops, the retail body said. The retail sector is now in what is known as the "golden quarter", a key period of the year when many companies make the bulk of their annual profits. It covers the run-up to Christmas, as well as the Black Friday sales period. Black Friday has developed from a one-off day of sales to many shops extending offers all week, and in some cases all month. Andy Sumpter of Sensormatic Solutions, which helped to compile the BRC data, said shoppers were becoming more "focused", as they become "more accepting of the current reality of paying more to buy less".

Boohoo Broken Promises

 
Fast-fashion firm Boohoo has broken promises to make its clothes fairly and ethically, a BBC Panorama investigation has found. An undercover reporter at the company's Manchester HQ saw evidence of staff pressuring suppliers to drive prices down, even after deals had been agreed. It comes after the company pledged to overhaul its practices in 2020. Boohoo said it hasn't shied away from the problems of the past and has driven positive changes in its business. The retailer is a market leader in getting its customers the latest styles as cheaply and quickly as possible. Last year, Boohoo Group had 18 million customers and £1.7bn worth of sales. Three years ago, Boohoo promised to overhaul the way it did business and launched its "Agenda for Change" programme. The move was sparked by reports that staff at a factory making Boohoo clothes in Leicester were earning less than the minimum wage and in unsafe working conditions. BBC reporter Emma Lowther saw those promises being consistently undermined during her 10 weeks undercover at Boohoo's head office in Manchester, where she worked as an admin assistant.