McVities Expand to China

 

McVitie’s is stepping up its ambitions in China with a strategy that looks beyond the biscuits that made the British brand famous, as owner pladis seeks to build McVitie’s into a £1 billion global brand. While limited McVitie's biscuits are already available in China, pladis is now expanding the brand through locally developed snacks designed specifically for Chinese consumers. The move marks a new phase for one of Britain's best-known food brands. While McVitie’s remains synonymous with Digestives in places like the UK and Ireland, pladis believes future international growth will increasingly come from expanding the brand beyond its traditional biscuit range. In other markets, that evolution is already underway through products such as McVitie’s Joy in Saudi Arabia and Egypt, underscoring the brand’s ability to flex across formats and occasions internationally. China is one of the brand's biggest long-term growth opportunities. As part of that strategy, pladis will launch a locally developed McVitie’s Flipz range this August, produced in China and developed for local tastes. Rather than exporting existing products from Europe, pladis has developed the range around Chinese tastes and shopping habits, from flavours and portion sizes to how the products are made and sold.

BBQ - How important is it to understand the market when developing new products?

McVities China

Apple First Foldable Phone

Apple has launched its most expensive iPhone ever - a foldable handheld that costs at least £1,999 and marks the first major iPhone design change in almost 20 years. The iPhone Duo is a gamble by new boss John Ternus, who took over from long-time chief executive Tim Cook this month. Apple is entering the foldable phone market comparatively late, following the likes of South Korea's Samsung and China's Huawei. Ternus told an audience at Apple's California headquarters: "Others have created foldables that just feel like two phones awkwardly stuck together." Apple's model, he claimed "redefine[s] the experience of using a foldable phone". In the US, prices start at $1,999, but can go up to $3,200. It has taken eight years to develop, something Ternus was directly involved in after spending many years as a top executive inside Apple's hardware division. When unfolded, it looks like a small iPad and a wider iPhone when it is folded. But the product is facing established competitors. "The real fight is China, where Huawei owns nearly 80% of foldables." said Francisco Jeronimo, vice president for data and analytics, devices at IDC EMEA. Altering the design of the iPhone may address some criticism that Apple has yet to land a major product hit or truly exciting innovation since the first iPhone came out in 2007. Apple also revealed on Wednesday the new iPhone 18 Pro and 18 Pro Max, which in the US start at $1,199 and $1,299 respectively.

BBQ - Is there enough of a market for a foldable phone?

Foldable Phone

Primark Finally Launching Home Deliveries

 

Primark has said it plans to launch a home delivery service in Britain, four years after it made its first foray into e-commerce. The retailer did not say when it expects to launch the service, but it has bought a warehouse in Sheffield from to enable it to ship products to homes. The company said there was "opportunity for profitable growth" through home deliveries, which could help boost trade after Primark reported subdued sales following the recent hot weather. Analysts said the decision to offer home delivery after years of resistance - including through the pandemic - indicated that Primark was facing major challenges from ultra-fast-fashion brands such as Shein. Primark did not sell goods online until 2022, when it launched a click-and-collect service which meant shoppers still had to travel to pick up their purchases. The fast-fashion chain is struggling to compete with brands such as Shein and Boohoo, as well as alternative platforms such as TikTok Shop and Vinted, and in July said it was lowering prices on hundreds of clothing items. Retail analyst Julie Palmer said that "Primark has been playing catch up for years" and launching home deliveries "is as much about defence as growth". The brand will need to absorb additional costs of returns, which tend to be higher than in-store purchases as customers cannot try clothes on before buying them.

BBQ - Do you think Primark are too late to move fully into e-commerce?

Primark Online

Business Fail To Pay Properly

 

DIY store B&Q and the fast food chain Five Guys are among hundreds of UK businesses named by the government for paying staff below the minimum wage. More than 600 employers were ordered to pay affected workers the outstanding wages, with £4m returned to workers, according to the Department for Business and Trade. The firms have also been issued penalties worth £7m. The list of 658 businesses includes shops, restaurants, nurseries, social care providers and a handful of NHS trusts. The period of underpayments covered by the list varies depending on the employer, but overall spans from 2013 to 2025. Minimum wage is £12.71 for staff aged 21 and over. For 18 to 20 year olds the rate is £10.85, and for under 18s and apprentices it is £8. B&Q underpaid 4,530 workers a total of more than £456,000, according to the government. The list marks the first "naming round" since the Fair Work Agency was set up in April under the Employment Rights Act. As well as enforcing the minimum wage, the agency also will soon tackle practices of denying workers holiday and sick pay.

BBQ - What is the impact for the businesses for this?

Minimum Wage

Ikea Cuts Prices

 

Swedish furniture giant Ikea is cutting prices across hundreds of products in Europe to woo customers struggling with deepening cost-of-living pressures. Ikea has seen revenue decline over the past two years as the rising cost of living reduces people's ability to invest in new furniture and home renovations. The company is spending €1.2bn (£1bn) on the price cuts to items including the Billy bookcase and Kallax storage units, with reductions of up to 28% on certain products. Ikea said it could make the cuts by making savings throughout the supply chain, such as packaging costs, but acknowledged profits may take a hit. Ikea has reduced its prices several times in recent years, even as it caused a hit to the company's revenue and profit in its most recent earnings report. The latest specific reductions vary slightly by country. Price cuts for British customers include the Kallax shelving unit going from £60 to £49 and the Billy bookcase being cut by £10 to £25.Ikea is also trying to attract new customers by opening smaller stores in central areas, such as London's Oxford Street and Churchill Square in Brighton.

BBQ - Is cutting prices a better strategy to increased advertising to increase demand?

Ikea Price Cut

Sweet Inspired Fragrance

 

An unusual twist from sweet maker Swizzels and Spanish home fragrance producer Cristalinas has been announced. The pair have teamed up to launch three new sweet-scented diffusers and room sprays inspired by Swizzels’ Squashies Bubblegum, Squashies Strawberries & Cream, and Lemon Refreshers. Starting from an RRP of £1.99, the range includes 25ml and 35ml reed diffusers and 250ml room sprays. Developed to help retailers benefit from the continued growth of the home fragrance category, the collection will appeal to “shoppers seeking nostalgic, sweet-inspired scents,” Swizzels said. With strong brand recognition from Swizzels and an accessible price point, the range offers an opportunity to encourage impulse purchases and attract both confectionery fans and home fragrance shoppers. The partnership brings together two brands that share a commitment to creating sensory experiences. Cristalinas has long received positive feedback from consumers who state that its fragrances evoke the scent of confectionery, making the collaboration a natural fit. As one of the UK’s most trusted confectionery brands, Swizzels has built a strong legacy through its much-loved products, while Cristalinas has established itself as one of the UK’s fastest-growing air care brands.

BBQ - Can you think of any other brand extensions for Swizzles?

Swizzles Fragrance

Aldi US Expansion

 

Aldi' is embarking on a $9bn US expansion plan to add 800 new stores over five years, specifically targeting dense urban hubs like Manhattan. It marks a massive scale-up for the German supermarket, which first entered the US in 1976 and has steadily grown its footprint to nearly 2,800 storefronts. The aggressive real estate blitz signals a bold shift for a brand traditionally associated with suburban strip malls and lower-end consumers. Incumbent US grocers may look with some concern at the insurgency Aldi pulled off since it entered the UK market in the 1990s. However, while Aldi is rapidly ascending the ranks of American grocery consciousness, it is not, and may never aim to be, Walmart. Aldi currently holds just 2.9% of the US grocery pie, while Walmart controls about 20%. Data from location analytics firm Placer.ai reveals Aldi is capturing middle- and higher-income shoppers with household incomes between $75,000 and $125,000. Walmart pours more than $20bn a year into its business, the bulk of it into technology, automation, and its supply chain, with robots moving product through its warehouses and AI setting its forecasts on delivery routes. Aldi targets a lean, highly efficient model that provides about 80% of what a traditional big-box retailer carries, but at a much lower cost. Can this be the key to winning more US customers?

BBQ - Do you think Aldi will continue to be successful in the US?

Aldi USA