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1. Metcash Planning1.1 OPERATIONSMetcash is one of the top

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  • "1. Metcash Planning1.1 OPERATIONSMetcash is one of the top 25 public companies of Australia which is into the business ofwholesale and supply of groceries, alcohol, tobacco and hardware goods. Its majorrevenue generators are the grocery, alcohol and..

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  • "1. Metcash Planning1.1 OPERATIONSMetcash is one of the top 25 public companies of Australia which is into the business ofwholesale and supply of groceries, alcohol, tobacco and hardware goods. Its majorrevenue generators are the grocery, alcohol and tobacco wholesale in Australia alongwith a minor contribution from its operations in New Zealand. In 2016, Metcash had atotal revenue of over $13 billion. Employing 5800 people across all subsidiaries included1 with its headquarters in Macquarie Park in New South Wales .The operations of the business are spread over 3 major segments:Food &Grocery CoreBusinesses AustralianMitre 10Liquor(Hardware)Marketers Figure 1: Metcash core business segments 1Metcash Annual Report, 20163 | P A G E Food & GroceryThis segments caters to the distribution to and marketing of groceries and tobacco to itsretail outlets by the name of IGA, to its hospitality business and convenience stores. IGAdistribution operates on the supply of goods and marketing merchandise to about 2500self-operated grocery stores across Australia. This segment’s retail outlets includeIGASupermarkets, Supa IGA, IGA Express, Foodworks and Lucky 7 convenience stores.There are 8 warehouses and 5 main distribution centres through which distributionchannels are operated from to supply dry, chilled as well as frozen groceries. Two otherwholesale businesses, Campbells Wholesale and C-Store Distribution, cater to serviceconvenience stores.Australian Liquor MarketersUnder its subsidiary, Tasman Liquor Company, Metcash has 15 distribution centresacross Australia and New Zealand. This segment does liquor distribution to about 12,000retail outlets, restaurants, hotels and other licensed locations. Independent BrandsAustralia, another subsidiary, Metcash has 4 other retail outlets for liquor by the name ofThe Bottle-O, The Bottle-O Neighbourhood, Cellarbrations and IGA Liquor.Mitre 10 (Hardware) The last core business of Metcash is wholesale of hardware which it does under thebanner of Mitre 10. This segment owns 430 independently run Mitre 10 and True Value4 | P A G E Hardware outlets. Additionally, they supply hardware to about 400 independent hardware2 stores in the non-branded category.1.2 APPLICABLE LAWS AND REGULATIONSThere are a number of laws/regulations that are applicable to a distribution and retailcompany such as Metcash and affect their business operations:1. Food Standards Australia New Zealand (FSANZ)These are applicable to all companies in the food industry. For Metcash, thefood labellingstandards as per the Food Standards Code are enforced by Australian states andterritories. It has information requirement on food labels in a true and representative3 manner .2. Competition and Consumer Act 2010This Act is applicable to improve welfare of Australian consumers by encouragingcompetition and fair trade in order to keep consumers protected. For Metcash the Foodand Grocery Code of Conduct section of the Act applies wherein sustainable trust insupply chain, transparency in transactions, fair dispute resolution, and good faith is to be4 followed .3. Australian Consumer Law 2IBISWorld Company Premium Report, Metcash Limited, Balance Date: April 20163 Food and beverage industry regulations and compliance, The State of Queensland 1995– 20164 Competition and Consumer (Industry Codes—Food and Grocery) Regulation 20155 | P A G E "

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