IR FEBRUARY 2017

ISSUE 1 | FEBRUARY 2017

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

THE YEAR OF ENGAGEMENT National National SupportSupport Office •Office 1800• 888 www.mga.asn.au 1800479 888• 479 • www.mga.asn.au

W E N

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OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

MGA NATIONAL

SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479

RETAILER DIRECTORS Rodney Allen (President) – Victoria Andrew Bray – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland

MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au

EDITORIAL AND PRODUCTION

E: courtenay.hirst@mga.asn.au

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CONTENTS 5 CEO Welcome

INDUSTRY NEWS 6 NSW tobacco strategy 7 Small Business Advisory Council 7 Apology – Foodworks Store Awards 2016 7 Plastic bags 8 Is selling for the best price your business disaster strategy?

11 Woolworths’ “Mind the Gap” scheme not unconscionable 13 Locals, that’s who we serve 11 Nothing fake about Bulla’s newest ice cream range 17 Finance for things that go 19 How a strong partnership helps Morgan’s IGA and Supa IGA Dromana succeed

LEGAL AND HR 21 Employing backpackers from overseas 21 Annual Wage Review 2016-2017 – we need your help 22 Inspecting customers’ bags 23 Staff purchases in store 23 Obligations of employers to provide staff uniforms 25 Meet Belinda Imbriano – MGA’s newest addition to the Legal and HR Team 26 Dealing with an armed hold up 27 Independent contractors or employees?

LIQUOR NEWS 29 ALM acquirer’s Porters and Thirsty Camel 29 NSW liquor law changes 29 Renewing your RSA cards 31 Wine Australia ploughs US$4m into Shiraz terroir research 31 Have you paid your liquor licence renewal fee for 2017?

32 New IGA Xpress plus Liquor opens in Mt Waverley, VIC 34 Mandatory signage for packaged liquor licenses have been updated 35 Around the World 37 VIC Governments review of the Liquor Control Act 1998 37 Diageo Australia names new commercial head 39 KPMG Report – The truth about online consumers 39 VCGLR release 2015/16 Annual Report

TRAINING 40 The importance of food safety training 44 Face-to-face Food Safety, Adelaide 45 Training of employees

www.mga.asn.au

MGA CORPORATE PARTNERS DIAMOND

British American Tobacco Australia PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS

tasmanian independent retailers

5

CEO REPORT

CEO WELCOME Welcome to a new year!

2017 is the Chinese year of the Rooster and MGA’s “year of engagement”.

As a registered national independent retailer employer organisation of over 120 years standing, MGA, similar to any other organisation or business, must continually seek to be relevant and deliver the best possible services and products to its members in full and on time.

MGA’s Board, management and staff have committed to making the year 2017 – “the year of engagement”.

With over 2,500 members around Australia, it is imperative that MGA, as a peak national body is able to keep members and industry stakeholders fully updated and abreast with the latest business information and to “watch their backs”, when it comes to minimising the cost and red tape burdens state and federal government regulators have a habit of introducing.

MGA Members will notice over the next 12 months many improvements, both large and small, to the appearance and

2017 is the Chinese year of the Rooster and MGA’s “year of engagement”. content of all forms of communication to members and stakeholders.

After an intense internal workshopping program for MGA to prepare for the 2017 calendar year and to fulfil its higher purpose to make “life easier” for its members, MGA commits to members that it will; 1. STRIVE; for a more prosperous independent retail community 2. ENGAGE; grow MGA’s reputation and relevance and 3. SUSTAIN; achieve business / organisation sustainability In this time of rapid change and increasing social media noise, the many important messages MGA has to share with members will be delivered via a number of different mediums including, e-Alerts, e-Checkout, newsletters, website, magazine, Facebook, Linkedin and Twitter.

2017 is looming to be a very busy year for MGA and its members alike.

On top of the large volume of

work currently being conducted by MGA staff, the territory, state and federal governments together with regulators have also announced a plethora of further inquiries and consultations into various areas ranging from banning plastic bags, deregulating trading hours, introducing container deposit legislation to reducing Sunday penalty rates and strengthening competition law. For our members in WA and SA competition for the consumer’s supermarket dollar will be intense as ALDI will continue to make inroads into both states.

MGA predicts that energy costs will be the biggest cost centre for members around Australia. The cost to power energy thirsty supermarkets and liquor stores is set to substantially increase around the nation. MGA will continue to work with members and corporate partners to seek out better energy deals and to continually advise and suggest energy efficient solutions.

Until next edition – good selling.

2017 – “the year of engagement”

Jos de Bruin CEO – MGA Independent Retailers

www.mga.asn.au

6

INDUSTRY NEWS NEW SOUTH WALES

2017 VICTORIAN INDUSTRY GOLF DAY

NSW tobacco strategy The NSW Ministry of Health has identified MGA as a key stakeholder for consultation in developing the NSW Tobacco Strategy (2018 onwards).

MGA’s expertise in the area of the sale of tobacco products is greatly valued and as such MGA has been invited to contribute to shaping this strategy by participating in a two-hour, face-to-face focus group, that will be held in Sydney on Wednesday, 15 February 2017 at the offices for the NSW Ministry of Health in North Sydney.

MGA’s NSW/ACT Director and retailer, Andrew Bray, will represent MGA’s NSW members in this consultative focus group.

MGA Independent Retailers and the Grocery and Liquor Association (GALA) is again hosting the Annual Industry Golf Day to help raise funds for the Reach Foundation.

Date: Thursday 9th March 2017 Morning tee time: 7.00am Afternoon tee time: 12 pm Venue: Keysborough Golf Club, VIC To register, visit: www.mga.asn.au/events/golf

February 2017 - Edition 1

The focus group will include approximately 5 to 10 representatives from industry/ retailer organisations to explore a number of areas including; • Stakeholder roles, achievements and challenges under the current NSW Tobacco Strategy 2012 – 2017 • Vision, priority areas, current and emerging needs, priority populations and settings for the future Strategy • Key enablers and barriers to implementing the future Strategy at both state level and locally • Existing and future measures to consider in strategy development.

MGA will also be invited to participate in a written consultation process.

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INDUSTRY NEWS QUEENSLAND

Small Business Advisory Council Early in December 2016, the Queensland Minister for Innovation, Science and the Digital Economy and Minister for Small Business the Honourable Leeanne Enoch announced a renewed Small Business Council to boost engagement with small business.

MGA is very proud to announce that MGAQ Committee member, MGA Director and Toowoomba supermarket owner, Debbie Smith, has been invited to join this auspicious group of Queenslanders. Congratulations Debbie.

This means that Queensland MGA members will have a voice at the highest level of the state government.

Ms Enoch said the renewal of the Queensland Small Business Advisory Council will support the Queensland Government’s commitment to create jobs and grow the Queensland economy by delivering the Advancing Queensland Small Business strategy.

The Queensland Small Business Advisory Council focuses on significant small

business issues and provides advice and solutions on issues related to small business growth, sustainability and employment.

Ms Enoch said the Palaszczuk Government is committed to listening to small business to ensure Queensland continues to be the place for small business to start, grow and employ.

“Small businesses make up more than 97 per cent of all Queensland businesses and employ around 43% of the total private sector workforce, which is why it is vital the government has the opportunity to hear firsthand from peak industry bodies and individual small business. The 15 members of the council draw on a mix of experience, industry groups, gender

Apology – Foodworks Store Awards 2016 MGA would like to issue an apology for printing the wrong information next to the FoodWorks Large Store of the Year award in the last issue of the Independent Retailer.

Congratulations Peter and Michelle Kinder.

Large store of the year: Agnes Water Queensland – Peter and Michelle Kinder

Debbie Smith– MGA director balance and regional diversity and will provide stronger advocacy for small businesses across the state,” she said.

QUEENSLAND

Plastic bags MGA Queensland engaged in consultations with the Queensland Government Department for the Environment on the subject of banning light weight supermarket plastic bags.

MGA’s major focus in consultations, has been to avoid any additional forms of red tape or cost burdens associated with the banning of light weight plastic bags.

Consumers, whilst fully aware of the environmental ramifications of light weight plastic bags, are often caught without their environmental bags when shopping for their groceries. By and large the majority of consumers put their plastic shopping bags to good use and recycle them. Some states have chosen to not regulate plastic shopping bags as the plastic bag issue is perceived as being minor and just more unnecessary red tape.

MGAQ will continue to work with the Queensland Government to address this issue whilst seeking to minimise the impact on retailers and their customers.

Foodworks COO Kym Coventry, Peter Kinder & Michelle Kinder from FoodWorks Agnes Water and FoodWorks CEO Rick Wight

The Queensland Government proposes that the ban will commence from July 2018.

www.mga.asn.au

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INDUSTRY NEWS VICTORIA

Is selling for the best price your business disaster strategy?

Research by MGA and Next Step Business has shown that although most independent retailers are confident about the future they have concerns about a number of elements of their businesses.

By Neil White, Next Step Business The upside of the research was 84% of the businesses surveyed expect an opportunity for customer growth and 61% for an expanded product range to support that growth.

The conundrum was that just 25% of retailers thought their current premises could support the potential growth.

This resulted in more than half of store owners reporting they would be

refurbishing or expanding their stores in the next 12-36 months.

Most stores (80%) planned to invest up to $1 million in their businesses by 2020 with 10% planning to spend more than $5 million.

And here’s the catch! Almost 50% of the respondents didn’t have access to funding that wasn’t personally secured and a further 32% were unsure. This puts their personal homes and assets at risk in the event of a catastrophic event

such as a death or a long term serious illness that stops you or your partner from working.

This is compounded by the fact that many store owners are going to spend a lot of money on their business just to remain afloat – 62% reported decreased or flat profitability in the last financial year while 38% indicated increased profitability.

At the same time 74% reported an increase in turnover which reflects the

MGA BETTER BUSINESS PLANNING WORKSHOP Where: Date: Time: Cost:

Leonda by the Yarra Hawthorn VIC Wednesday 22 March 2017 11am – 4pm $495 inc. GST (earlybird special – available till March 3). Then $795 inc. GST Includes lunch and post event drinks

Learn how to secure your business future, benchmark your performance, identify and minimise major risks and maintain your work/life balance in 7 simple steps!

Two free Business Valuation Assessment’s valued at $3,300 each, to be drawn

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February 2017 - Edition 1

To register, call 03 9663 3031 or email mgaworkshop@nextstepgroup.com.au

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INDUSTRY NEWS

intense competition in the market – every store that responded has at least one competitor in its catchment.

This tough financial position is reflected in the major strategic business concerns over the next 1-3 years with competition (50%) and cashflow (42%) the highest profile issues in business owner’s minds.

And it appears – judging from the worklife balance response – everybody is working much harder.

In summary, most store owners are planning on digging in and fighting the competition with investment in their business to boost flagging profits via their businesses increasing leveraged against their personal assets.

Rank your major strategic business concerns in the next 1-3 years?

Competition

Cashflow

Work/life balance

Does this set alarm bells ringing?

With the right business structuring you can make these vital investments and still sleep at night and enjoy your family holidays.

Paramount to this outcome is convincing the bank to lend against your business and not your home.

Another of the key elements is properly structured, monitored business planning to provide regularly updated asset protection.

More than half of respondents had Key Man and Income Continuation insurance but only 10% had Buy/Sell insurance and 20% were unsure what insurances they had.

The biggest response to a catastrophic business event was to “sell the business for the best possible price”.

To be frank, this isn’t a strategy.

Just 20% had binding exit agreements to sell their share and 15% had a structure to continue the business if they could no longer work there.

Retaining and motivating staff

Selling your business for the right price

*The survey sample covered 20 stores with an average turnover of $5 million – $10 million. The majority were single stores owned by industry participants with more than 8 years experience.

Thankfully, 37% of respondents recognise the red flag presented by the survey and wanted further information.

If this article raises more questions for you than it answers, we strongly encourage you to attend the MGA/Next Step Better Business Planning Workshop.

Industry expert Scott Monotti from Bstar group will discuss how small business can create and grow low risk

business outcomes whether you are “Growing or Going”.

MGA BETTER BUSINESS PLANNING WORKSHOP Date: Wednesday 22 March 2017 Where: Leonda by the Yarra Hawthorn Victoria Time: 11am – 4pm Please call 03 9663 3031 or email mgaworkshop@nextstepgroup.com.au

www.mga.asn.au

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February 2017 - Edition 1

11

INDUSTRY NEWS

Woolworths’ “Mind the Gap” scheme not unconscionable As MGA members may recall, in December 2014, the Coles Supermarket Group was found guilty of having misused its market power and behaved unconscionably towards its suppliers by extracting additional so called support funds and fined a paltry $10m. As well, Coles was ordered to return monies that were unfairly procured from suppliers. Former Victorian Premier Jeff Kennett was appointed to oversee this action.

On 10 December 2015, the ACCC instituted proceedings in the Federal Court against Woolworths Limited, alleging it engaged in unconscionable conduct in dealings with a large number of its supermarket suppliers, in contravention of the Australian Consumer Law. On the 8th December 2016, the Federal Court today dismissed proceedings brought by the Australian Competition and Consumer Commission against Woolworths Ltd (Woolworths).

The ACCC had alleged that Woolworths had engaged in unconscionable conduct in its dealing with a large number of its suppliers through its “Mind the Gap” scheme.

In December 2014, Woolworths developed the “Mind the Gap” scheme to reduce a significant half-year gross profit shortfall, with category managers and buyers contacting many suppliers to ask for urgent payments ranging from $4,291 to $1.4 million.

The Federal Court ruled that Woolworths’ requests for these payments were not unconscionable within the meaning of the Australian Consumer Law. Justice Yates noted the complex trading relationship between Woolworths and its suppliers and that it is always under negotiation and, depending on circumstances, constantly changing.

“The ACCC took this action because we considered that Woolworths’ behaviour went well beyond hard commercial bargaining and is not consistent with business and community values. If you’re a supplier subject to arbitrary demands, it’s very hard to make future investment decisions in the face of financial uncertainty,” ACCC Chairman Rod Sims said.

“The ACCC will carefully consider the judgment. Pursuing unconscionable conduct remains an important area for the ACCC and we will continue to take enforcement action where appropriate, particularly in relation to supply chain issues,” Mr Sims said.

MGA congratulates Mr Sims and his team at the ACCC for remaining vigilant toward what it sees as large corporations misusing their market power and acting unconscionably.

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INDUSTRY NEWS

VICTORIA

Locals, that’s who we serve They are the life, the bread and butter of our stores Many stores will do as much as they can to support local initiatives, which is exactly what Dyson’s Supermarket in Numurkah, Victoria has done.

Last year a committee was put together to make some of the town’s bland and boring brick walls more exciting by adding colour, pictures, photos and features. The first initiative was a memorial wall opposite the local memorial park to remember those that had served their country from Numurkah. Dyson’s Supermarket was asked if they would “donate” their wall for this project. Wayne was quite excited when he was asked and said “YES” straight away as he knew this would be fantastic for the township.

This was advertised in the local paper, and through word of mouth and within a short period of time there were hundreds of pictures submitted. The committee had to go through each and every one of these old photos to see if the quality was sufficient to be enlarged for the wall. A local sign company was commissioned to do the work. After months of planning the design was decided on and produced.

Following on from the thoughts of remembering people and businesses, Wayne wanted to remember the car yard that was on the site prior to it being a supermarket. So once the front door was moved from the east wall to the south wall, this left 8 large windows to be filled.

Wayne followed up with some of the

February 2017 - Edition 1

“older” locals to get contact details of the children of the people pictured in the windows. Athol Hodge owned Hodge’s Motors. His right hand man was Don Lawrence.

For Dyson’s grand relaunch Wayne organised the children of these men to come to the launch. Ian and Dallas (Athol’s son and daughter), Dianne (Don’s daughter) and Ray (Frank’s son), all made the trek to Numurkah for this very special day. “I had a tear in my eye when they all said yes” Wayne said. “It just meant the world to me, knowing that this opportunity will never happen again.”

Sharon Tanti, Maria Dyson, Colin Dyson, Ray Williams, Dianne Conti, Ian Hodge, Dallas Evans, Wayne Dyson

Two vehicles that were originally purchased by Eric Yarwood from the car yard back when it was a car yard are still in the family today. Rob (Eric’s son) brought these two vehicles down for the relaunch of the supermarket. Rob still has the two original receipts of the vehicles and they have been scanned and put on the front windows as well.

The same local sign writer worked with the photos supplied and despite their age and quality, they did the best they could and the windows show an incredible tribute to those locals that are now no longer with us.

Near these tribute windows, the store has included a charging power point for the “oldies” to charge their scooters.

“It has been a pleasure to see the older people in town charging their scooters

whilst looking at the windows and going shopping” Wayne said.

If anyone would like to see what the store has done inside or out, Wayne invites you to come and have a look. The service men and women have been put into a small booklet made by the committee and explains who everyone in it is and has small stories of the past in it. This can be purchased from the store for $5.00 a copy.

INDUSTRY NEWS

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Unfakeably good new Ice Cream from Bulla PRODUCT AND BRANDING Are you releasing any new products/line extensions (ie, different sizes, new packaging)? Bulla Dairy Foods (Bulla) will be introducing three delicious new products in early 2017: • Bulla Creamy Classics Vanilla and Boysenberry 2lt: Smooth and Creamy Bulla Creamy Classics Vanilla ice cream swirled with ribbons of boysenberry sauce – an all time classic ice cream parlour favourite.

• Bulla Decorate It Yourself Ice Cream Cake: Bulla has taken the hard work out of making an ice cream cake for customers’ creativity to run wild. Three layers of creamy Bulla chocolate, vanilla and strawberry ice cream ready to decorate with wafers, confectionery, fruit or wherever imagination takes them.

• Bulla Custard Tart ice cream stick: The new flavour in our range of taste and texture-infused ice cream sticks, Custard Tart will sit alongside our Fairy Bread and Cookies & Cream ice cream sticks, showcasing another classic family dessert in frozen form.

other end of the category, the low value Everyday Tubs segment is in decline by 7.2%.

If so, what type of advertising was/will be used? Bulla will again air its successful unfakeable™ advertising campaign, with TVCs featuring the new products. The products will also feature on outdoor advertising and social media, together with consumer sampling.

Will there be a move towards functional ingredients in ice cream? Rather than fortification via functional ingredients, the move back to more natural formulations, especially the use of fresh milk and cream is a leading trend within the category both here and overseas. This is most evident in the out of home gelato segment, but will find its way into packaged product over the next couple of years.

What lies in the future for your brand? Established in 1910, Bulla remains Australia’s largest, locally made and owned ice cream brand, making quality dairy products in Colac, Victoria for six generations. Bulla will continue to provide Australians with delicious quality dairy products – both traditional favourites as well as some unexpected flavour combinations and formats.

What challenges are having an impact on the category (in the supply chain or at store level)? What are your plans to overcome these challenges? Stock levels, especially during the hotter summer months, are a significant contributor to lost sales.

When temperatures rise over 30 degrees, we see a significant spike in shopper demand, especially in the high value multipack segment. This requires constant replenishment to ensure that sales are not lost in this highly impulsive end of the category.

TRENDS AND PREDICTIONS How have changing Australian lifestyles affected the category? With increasing need for convenience, we have seen sales of multipacks consistently surpass that of tubs. Aztec Shopper View data shows that Empty Nesters and Retired Couples spend more and consume more than any other household type.

How have health concerns affected the category? How important a factor is portion size? With the shift towards more indulgent products continuing, lower fat and lower sugar products continue to decline in sales and popularity. This is counter to most of the reported food trends.

Has there been a trend towards new flavour profiles?

Textures? Ingredients? Nine out of the top ten selling products continue to be vanilla. Whilst a large amount of flavours come and go (salted caramel, matcha green tea, etc.) vanilla is still the most popular flavour across most brands and formats.

MARKET How is the category performing in supermarkets?

Value sales within the ice cream category have slowed over the last 12 months with growth through grocery at 1.5% and petrol & convenience at 0.9% (Source: Aztec MAT 30/10/2016).

What can retailers do to maximise category sales? Retailers can ensure they have the correct balance of multipacks to tubs (60/40) in terms of ranging and layout together with ensuring sales are maximised during peak demand periods via adequate stock weights.

What product types are performing particularly well?

Why do you think that is? Indulgence continues to be the prevailing need within the category with the super premium segment growing at 11.4%.

What are your predictions for the ice cream category in Australian grocery? Indulgence will continue to be a key driver and will continue to fuel the premiumisation of the category.

Consumers will also look to products that are simple in nature but deliver on their needs for taste and texture via the quality and freshness of their ingredients.

Are any product types performing particularly poorly? At the

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INDUSTRY NEWS

Get Getsome someAsk dough dough your with withyour yourbread. bread. customers to & press && Press Press to get cash out and every everyday dayin-store in-store avoid ATM fees. to toget getcash cashout outand and avoid avoidATM ATMfees. fees.

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eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.

February 2017 - Edition 1

ARE YOU TAKING ADVANTAGE OF YOUR BENEFITS WITH MGA? LEGAL AND HR As a member of MGA, receive unlimited FREE advice on Employment Laws, Consumer Law, Leases, and Human Resources such as how to manage employees, customised contract and agreement templates, policies and procedures, staff recruitment and unfair dismissals to name a few! Save money – other sources of advice will cost more than $150 per hour!

ADVOCACY AND REPRESENTATION MGA vigorously advocates State and Federal Governments on behalf of members, always representing their best interests.

Wins for MGA members:

• Reduce company tax

• Repeal of carbon tax

• Competition - access to justice

• Inappropriate planning and development

• Capping petrol shopper dockets

• National Award reviews

• Productivity commission reviews

• Sunday penalty rates

• Red tape reduction

• Paid parental Leave

• Oppose deregulation trading hours

• Competition-effects test

• Family violence leave

• Red tape and cost burdens

On the go: • National Wage Review

• Tobacco

• Plastic bag bans

• Packaged liquor

• Container deposit legislation ...to name a few!

TRAINING What if we train them and they leave? What if we don’t and they stay? MGA online and face to face training – producing knowledge and skills that your employees can use immediately - an immediate bottom line impact! RSA, Food Safety, Certificate III and IV in Retail Management, Leadership and Customer Service, Tobacco, WHS – all available at member rates with your membership.

COMMUNITY MGA’s GALA Committee organises fundraising events to assist community organisations such as the Reach Foundation. Industry events enable members to unite and network, whilst raising much needed financial support for those in need.

MEMBER BENEFITS From electricity to insurance, mobiles phone plans or banking – MGA gets the best deals for all members!

1800 888 479 www.mga.asn.au

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INDUSTRY NEWS

February 2017 - Edition 1

17

INDUSTRY NEWS

Finance for things that go Leasing and salary packaging for businesses and employees isn’t a new concept but it’s being given a lot more consideration particularly in relation to staff benefits for retention, as retention is vital to the continuity and profitability of your business both short and long term.

For businesses, using an operating lease can reduce administration and keep the asset off their balance sheet. However, they may not be the most cost effective option. Alternatively there’s a finance lease or chattel mortgage with its tax advantages particularly in the area of GST.

Businesses often wrestle with the question, “What can we do to keep staff?”. salary packaging, a company car or car allowance are the obvious considerations. However, purchasing a vehicle can be complicated, confusing and costly if set up incorrectly. What type of vehicle?

What type of usage (private or business)?, what finance structure?

There are also tax implications to be factored in, then choosing the best option.

For an employee with a salary package there’s a novated lease or for higher business use customers and car allowances, an innovative financing package developed by Fingo Finance called Taxbreak. With significant advantages over a standard novated lease it’s often a better choice for business use customers as the tax breaks are greater.

Taxbreak’s features distinguish it from conventional car finance products.

Our software “Optimum Vehicle

Replacement” (OVR) allows the driver to manage the equity position of the vehicle minimizing financial risk. OVR provide an estimate of what’s owed and what the vehicle is worth on a bimonthly basis.

Taxbreak also has no payout penalty or retained interest charges, when combined with OVR program it provides the means to manage the car’s financial risk.

Fingo Finance are the experts in financing, leasing, fleet management & vehicle equity management. Our vehicle broking service could save you thousands on the purchase. Fingo has an Australia wide network and can assist with a tradein or disposal.

www.mga.asn.au

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INDUSTRY NEWS

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INDUSTRY NEWS

19

How a strong partnership helps Morgan’s IGA and Supa IGA Dromana succeed The life lesson goes something like this, “we can’t be experts in everything, so surround yourself with smart people and you will be on the path to success.”

Customers are becoming more discerning not only wanting cheaper prices but also an experience that is emotionally satisfying. Competitors are trying to outcompete each other, often through supply chain optimisation and technology driven innovations. However, the increasing pace of technological change creates challenges to keep up with technology driven customer service and operational innovations. The rapid pace of change and competition means you need to be a retail and customer service expert and critically think how you source the right technological skills and capabilities.

To compete effectively requires a strategy of differentiation and innovation as customers continue to pursue price and experience. A key way to achieve this strategy is for business owners to establish partnerships with suppliers who understand their business and competitive environment. This partnership should help them create new value propositions as well as manage core business systems and activities. This was achieved by both Morgan’s IGA and Supa IGA Dromana in partnership with GPK Group, a Victorian headquartered managed services and retail technology solutions provider.

In Morgan’s IGA Managing Director, Neal Morgan’s words, “We sell groceries (extremely well), GPK build and manage the IT systems that make it easy for us (extremely well). We’ve been in business since 1971 with a mission to never knowingly disappoint a customer or team member. With six full scale supermarkets across the north-western suburbs of Melbourne we need professional advice and guidance to stay in touch with the rapid pace of technological change and the ever evolving demands of supermarket front-end POS, BOS and “paperless” office systems in an

always connected world. This is where GPK Group is critical for us. They have supported us for over 15 years with a full spectrum of technology and managed services. GPK provide us our front-end Merlin POS, computers, servers, internet services as well as a rock-solid service level agreement to ensure that in the situation of technical issues, things are fixed quickly and our expectations are managed. We chose GPK Group because they not only represented a strong business case through exceptional customer support and full spectrum technical expertise but also because their values are aligned to our own. In short they are accountable, dependable and a critical part of our team.”

As reported by Sydney Morning Herald in 2016, Ritchies Stores executed a strategic transformation with differentiated concept stores. CEO Fred Harrison saw a 50% sales increase at the Dromana Supa IGA based on periodic yearly comparison. GPK Group was part of this transformation, supplying Dromana Supa IGA a wide gamut of technology including servers, internet services, store PCs, wireless connectivity, VOIP phone system, CCTV security, and a comprehensive service level agreement. GPK also managed the integration of other IT vendors including scales, refrigeration, advertising screens and self-checkouts to ensure the technological environment was completely connected and managed.

Established in 1999, GPK Group has a long history working in partnership with independent retailers as a full-service managed services provider. Founder and CEO, Grant Klaaysen states, “we have a passion to support the independent retail channel. GPK’s mission is to be our customers trusted technology partner.

We are a part of their business, helping in whatever capacity needed to help them grow by implementing and managing quality, scalable and tailored technology solutions to suit their individual needs.

GPK Group CEO, Grant Klaaysen advocates business based on values of integrity, honesty and trust and has a passion to support the independent retail channel.

With the 2015 acquisition of Retail Applications Products (RAP’s) and Merlin POS, we now have the full spectrum of capabilities to realise our mission servicing the independent retail community. It’s important our values of integrity, honesty and trust are lived by our staff every day and they act as part of our customer’s team to ensure their business technology operations are delivered with care. This allows our customers to focus on their strengths. We have developed a culture of continual improvement with live customer satisfaction dashboards. To compliment this, we also conduct weekly internal employee satisfaction surveys.

This is critically important to GPK. If our staff are happy and fulfilled, they will serve our customers effectively and act as part of their team more efficiently.”

If change and meeting your customers’ needs is a constant, doing nothing isn’t an option.

Grant Klaaysen and GPK Group’s dedicated retail consultant, Cordell Quiane, are available for a no obligation discussion on how GPK can help you reduce operational costs, manage your IT footprint more effectively to create an exceptional experience for your customers. Phone 1300 000 475 or email info@gpkretail.com.au for more information.

www.mga.asn.au

20

INDUSTRY NEWS

Install EC fans in your cool rooms and save sooner

*Savings based on trial conducted at a Victorian supermarket from January to April 2016, replacing one fan at 19ct/kWh. Figure includes savings on refrigeration load due to reduced heat emission by EC fans based on a C.O.P. of 2.0. Trial conducted by ebm-papst A&NZ with Refrigeration Innovations. Commercial information provided by Markair Components Pty Ltd. Reference CS088.

Refrigeration and HVAC equipment typically accounts for more than 40% of a supermarket’s energy consumption. Replacing your old fans with ebm-papst EC fans can save you considerably throughout the lifetime of the product. The graph shows that the initially higher capital expense of an ebm-papst EC fan is quickly outweighed by the product’s higher efficiency. It shows the replacement cost of replacing one evaporator fan with a high-efficiency EC fan compared to the original AC fan.

EC Upgrades can help you reduce your power bills by upgrading your existing fans with high efficiency alternatives to all fan products in your premises. Contact us today to arrange your free audit and quote.

More information at www.ECUpgrades.com.au

February 2017 - Edition 1

21

LEGAL AND HR

LEGAL AND HR Employing backpackers from overseas There is a misconception that foreign backpackers are a source of inexpensive labour but our employment laws apply to backpackers just as they do to Australian citizens or residents. If a backpacker holds the correct visa then they have the right to work while they are in Australia.

However, as an employer, you have an obligation to check personally that a potential backpacker employee does have the right to work in Australia. You need to know how long that right will last.

This means evidence of the appropriate visa and a tax file number.

Visa Conditions Both the 462 and 417 visas allow backpackers to stay in Australia for up to 12 months. A backpacker may work in Australia, generally for up to six months with each employer, study for up to four months then leave and re-enter Australia.

This may happen any number of times while the visa is valid. However the 462 visa additionally allows for backpackers to apply for a second visa if they have worked for three months in northern Australia in tourism and hospitality or agriculture, forestry and fishing.

Types of Visas There are two types of visas that are most common among backpackers.

The first is the 462 Work and Holiday visa and the second is the 417 Working Holiday visa. Both visas are for persons aged between 18 and thirty. Both the 462 and 417 are temporary visas for young people who want to holiday and work in Australia for up to a year. However the 417 visa can be renewed for a further year, subject to conditions.

Entitlements Overseas backpackers working legally are entitled to wages and benefits as though they were Australian citizens. These benefits include the employer paying in accordance with the relevant Modern Award and paying superannuation into a complying fund if the backpacker earns more than $450 per month. The employer is required to withhold 15% tax (from 1 January 2017, the backpacker tax changed from 32.5% to 15%), provide

the benefits of the National Employment Standards and afford protection under workplace health and safety laws.

Penalties for allowing a person to work illegally There are significant penalties for allowing a person to work illegally. The maximum penalty can be $15,000 for an individual or $80,000 for a company. People found to be working in breach of their visa conditions may have their visa cancelled and will be deported.

As an employer you must take care to ensure backpacker employees have a legal right work in Australia and that you are abiding by employment laws and regulations. The best practice to adopt is to assume that overseas backpackers have the same rights as residents or citizens. It is good practice to document all decisions you make concerning your business.

For further information please contact MGA’s HR & Legal Team on 03 9824 4111 (Line 1).

Annual Wage Review 2016-2017 – we need your help The Fair Work Commission (FWC) is seeking information to help determine whether there should be any increase in wages in 2017. MGA is proposing to present a submission to the FWC based on economic factors and using information gathered from our members.

It is likely that a wage increase will be introduced in July 2017 and we will endeavour to show the Commission that there should be no increase in wages at all or in the event that there is an increase it that should only be minimal. Our input will therefore rest heavily on input from our members.

MGA’s survey for members to complete – Fair Work Commission Annual Wage Review 2016-2017 Survey – is available on line via the MGA website.

The survey contains a series of questions regarding the structure of your business, the effect of the 2016 wage increase and the consequences of a further increase on the performance of your business.

We urge you to participate in the survey.

Your contribution is extremely valuable and all the results will form an integral part of our submission to the FWC.

www.mga.asn.au

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LEGAL AND HR

Inspecting customers’ bags The practice of inspecting a customer’s shopping bags is one method of preventing shoplifting. This is a valid strategy; however, it is important to ensure that customers are neither affronted nor offended by the practice, and that staff are aware of both their rights and their customer’s rights.

Bag checks are not governed by legislation, however in most states there are voluntary codes or bag check guidelines which may be used as a guide for retailers.

Retail premises are private property, therefore, the retailer has the right to deny entry to their store, or to set conditions upon which entry will be allowed.

Store signs The retailer must notify a customer before they enter the store may conduct a bag inspection on their way out of the store.

This means that a clear and legible sign should be prominently displayed at the entrance to the store. This will give the customer the option of whether or not to enter the store.

An example of a suitable sign is:

CONDITION OF ENTRY ALL BAGS MUST BE PRESENTED FOR INSPECTION WHEN LEAVING THE STORE

Shop Shop Safe Safe As long as the sign is clear and easily seen, it does not matter whether the customer has actually read or understood

February 2017 - Edition 1

the sign. By entering the store their consent to this condition is implied. If you do not have a sign displayed, you cannot insist on searching a shopper’s bag.

Conducting Bag Inspections It is important to conduct bag searches in a manner that does not offend customers and is not overly intrusive. People will naturally be sensitive if their bags are searched, especially when searching handbags and other personal bags.

This may be not just because they have something to hide. For example, a customer may feel strongly that it is an invasion of privacy, or that they are being viewed as a criminal.

Most state codes and bag check guidelines state that personal handbags the size of a sheet of A4 paper or smaller should not be checked, unless the shopkeeper is certain the handbag contains goods from that shop which have not been paid for.

The following tips may be useful for retailers when conducting bag inspections: • Always be polite and explain that it is store policy to check bags • Ask the customer to open their own bag. Never physically interfere with a customer or their possessions.

• If there is a large item at the top of the bag, obstructing the rest of the contents, ask the customer to remove the item.

• If a customer does not want to reveal the contents of their bag in public, conduct the search away from the public.

When a customer refuses If a customer refuses to have their bags inspected the following actions are appropriate: • Remind them that it is a condition of entry to the store • Ask them again to open their bag • Ask the customer to leave the store • Refuse service Remember: it is never appropriate to

physically touch either the customer or their bag at any time.

Suspected shoplifting – detaining a customer If you believe that a customer has committed an offence, you can detain them and call the police. If you detain a customer: • You must tell the person that you are detaining them and why.

• If possible, avoid physical contact and minimise the risk of physical harm to the customer, yourself and other staff and customers. It is only ever appropriate to use force if it is necessary to defend yourself or someone else from an attack.

• Do not search or question the detained person • Call the police as soon as possible Reasonable grounds It is important to remember that detaining a customer amounts to an arrest, and you must have reasonable grounds to make an arrest. If you detain a person without reasonable grounds, you may be committing a criminal offence or may be liable to civil penalties.

Having reasonable grounds to detain a customer means that there must be more than mere suspicion. You must have direct evidence that an offence has been committed. This includes, seeing someone put an item in their bag and attempt to leave without paying.

Remember: your first priority when dealing with suspected shoplifting must be your safety and the safety of your staff and other customers. If there is any doubt at all, do not confront the suspected customer and write a physical description for police.

Retailers have an obligation to their staff to ensure that all staff members are fully aware of the stores’ bag checking policy and are all appropriately trained. The better trained the staff, the better the relationship with the customer will remain.

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LEGAL AND HR

Staff purchases in store In order to avoid problems with unauthorised removal of goods from stores by staff it is vital to have clear guidelines on procedures for staff purchases. Employees should be fully aware of the store policy and procedures in relation to the purchase of any goods or the removal of goods from our store. Having a policy and procedure in place protects everyone against any misunderstanding in regard to the removal of company property.

If an employee chooses to purchase products in store it is common to arrange that the checkout operator calls for a manager when the goods are presented at the register, so the manager can supervise the transaction. At this point a check seal is then placed on the item and it remains attached until the employee leaves the store. Make it clear to employees that goods sold in the store must be paid for before being consumed and that it is sensible to retain the receipt.

Recently an employee took a prepared pack of sushi from a shelf, put it to one side for his lunch and then ate it a few hours later. When challenged by the employer his excuse was that he simply forgot to pay for it. The employer dismissed him. At an unfair dismissal hearing the employee argued that it was only worth $2.50 and he wouldn’t have stolen something of such a low value.

The Fair Work Commission disagreed with him and upheld the employer’s decision to terminate his employment saying that value is irrelevant – that it is the action of removing and consuming goods that belong to the employer that is not acceptable.

Employees should also be warned that removing or consuming any goods that have been discarded by the store is also not acceptable. It is also important that employees are told not to serve any member of their family when they are working in the store.

An employer also has the right to inspect all large bags being taken from the store and this can be randomly conducted. Small personal handbags are excluded.

Staff should be advised that all goods in the store remain the property of the store and this includes, all promotional material no matter what the employee may be told by any outside representative.

Providing simple and clear advice to staff can avoid many misunderstandings that end up before a tribunal. Very often busy employers will remember that they gave out all the information about staff purchases some time ago but new employees join the business and are not aware of the rules. Having a clear policy in place and referring back to it on a regular basis will protect an employer in the event of an unfair dismissal. It is advisable to re issue policies every 12 to 18 months to protect the business.

Obligations of employers to provide staff uniforms An employer may require employees to wear special clothing or uniforms whilst at work. Special clothing can include: • uniforms (eg. shirts with the company logo on them) • protective clothing for OH&S • clothing from the floor stock in the store an employee works in

Who pays for the special clothing?

Under the General Retail Industry Award 2010 (GRA), if an employer requires an employee to wear any protective or special clothing such as a uniform with the company logo then the employer must either pay or reimburse the employee for any cost of purchasing such clothing.

employee is required to wash any special uniform, dress or other clothing, the employee should be paid the following applicable allowance: a) For a full-time employee—$6.25 per week; b) For a part-time or casual employee—$1.25 per shift.

Special clothing doesn’t include general dress standards required by an employer. For example, an employer may require that clothing is a certain colour and to wear clothing that an employee can be reasonably expected to already own, such as black trousers and shoes. This would not count as “special clothing”.

An employer can also expect an employee to wear a name badge (first name only).

The employer must also reimburse the employee for the cost of replacement items, when replacement is due to normal wear and tear.

Uniform policies Employers should have a uniform policy in place so that all employee are aware of the uniform and dress expectations. Policies can include hair, make up, jewellery and tattoo requirements.

If your store is covered by a workplace agreement, then check your agreement as it may place obligations on the employer regarding uniforms.

Laundry allowance The GRA also states that where an

For more information or to obtain a copy of our suggested uniform policy, please contact MGA’s HR & Legal Team on 03 9824 4111 (Line 1).

www.mga.asn.au

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LEGAL AND HR

February 2017 - Edition 1

NOW AVAILABLE AT METCASH

LEGAL AND HR

25

Meet Belinda Imbriano – MGA’s newest addition to the Legal and HR Team Belinda joined the MGA Legal and HR Services team in January 2017.

She is a solicitor of the Supreme Court of Victoria.

Prior to joining MGA, Belinda worked at the Fair Work Commission.

Whilst there, her work experience included working in unfair dismissal, enterprise agreements and the modern award team. Working in the modern award team Belinda contributed to the first four yearly review under the Fair Work Act. Belinda has also volunteered at the Fitzroy Legal Community Centre

providing advice to members of the community.

As a member of the Legal and HR team, Belinda assists MGA members with advice on a broad range of employment law and HR matters including award interpretation, anti-discrimination, wage enquiries, long service leave, dismissals, and management of employees’ performance and conduct issues.

To contact Belinda or any member of the MGA Legal and HR Services Team please call 1800 888 479 option 1.

Belinda Imbriano

www.mga.asn.au

26

LEGAL AND HR

Dealing with an armed hold up Violence at work is a substantial contributor to occupational injury.

Whenever work is done publicly or there are large numbers of people working together, particularly in the retail industry, there is a risk of the business being subjected to violence or violent outbursts in various forms. Risk factors in a supermarket are associated with employees having to handle money and selling certain merchandise, particularly tobacco and liquor. There is no easy answer for reducing the hazards that relate to random actions by violent individuals.

The best approach to take is firstly, to be aware that no one is immune from attacks by violent individuals and secondly have your employees up to date with how best to respond to hostile situations.

Prevention Strategies against an armed hold up or burglary Every store should have a written policy in place for dealing with armed robbery.

It should be dealt with at induction and should be in the tea room as a reminder for staff for how they should respond in an emergency. Review your policies on an annual basis, don’t just rely on an induction program that was used several years earlier.

Where late trading occurs in areas where there is only one store one of the suggested strategies is to provide free coffee to taxi drivers and police as a means of providing more human activity around the area. Keep your store brightly lit and the windows free of

advertisements. Also keep the outside area brightly lit as a sound preventative measure. Have signs around your store that minimal cash is held on site and also that you use time delay safes. Roster your more experienced staff to work at night and where possible avoid having only one person close the store late at night.

Assess your area and keep in contact with the local police on a regular basis.

Avoid having items on the counters that could be used as a weapon.

Make sure that your employees are knowledgeable about how to address customer aggression and that they are able to detect signs of potential customer violence.

It has also been suggested that retailers: • Never publicly discuss the transfer of money from one place to another.

• Try to minimise the amount of money that is held at the store.

• Be alert to anyone who might be lurking around the store.

• Keep the store well lit and make sure that all exits are secure.

• Train staff to know want to do in an emergency situation.

• Have your cameras on at all times and check them regularly. They should be placed internally and externally at both front and rear entrances.

• It is also recommended that you also have mirrors in place.

During an armed robbery It is vital that your employees do everything to take care of their own safety during any incident of violence in the workplace. Obviously they should be trained to know how to react if an incident of violence occurs.

Direct your employees as follows: • Try to stay calm • Follow the instructions of the offender exactly • Do not stare at the offender • Do not pursue the offender • Keep your hands still and keep them

February 2017 - Edition 1

• •

•

•

•

where the offender can see them Do not take any action against the offender.

If possible make a mental note of anything that might identify the offender(s). Such things as height, hair colour, accent, clothing, scars, tattoos which may assist with identification.

As soon as the offender has left the employee should then sound the alarm. If it is possible and you are able to do so with caution, try to see if the offender leaves in a vehicle and if it is possible, the colour and make of the vehicle.

Wait for the police and in the meantime do not touch anything that the offender may have handled.

Encourage any witnesses to the incident to remain.

During an armed hold up, under no circumstances should an employee attempt to retaliate against the offender.

Advise employees to comply with all requests by a potential attacker. If there are any demands for money then the employee should simply hand the money over. There should be no attempts to be heroic. Retailers should impress this on their employees during training.

In the event that employees are victims of violence in the workplace, particularly in situations such as armed hold ups, the employer should seek the services of a trauma counselling organisation when the situation is over. Obtaining these services for employees will assist them to cope with the shock of experiencing the ordeal.

Make sure that employees have sufficient time off from work to recover from the incident.

It is advisable to have regular safety audits of your store, preferably carried out by the police, and keep close ties with your local police station.

For further information contact MGA’s HR & Legal Team on 03 9824 4111 (Line 1).

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LEGAL AND HR

Independent contractors or employees?

There can often be some confusion as to whether a particular person who works for you is an employee or an independent contractor.

Generally, an employee performs ongoing work under the employer’s direction; is regularly paid; is entitled to superannuation; has income taxed by the employer; and is entitled personal and annual leave.

An independent contractor is usually contracted for a fixed period of time or for a specific task; pays their own superannuation and GST; invoices the employer for work completed; and is generally in a position to make a personal profit or loss from the work. Independent contractors do not accrue paid leave.

The difference between an employee or independent contractor can often be very fine and cause unnecessary risk to your business. Employers might feel that it is beneficial for them to engage an independent contractor and avoid having to pay superannuation and entitlements.

However, you cannot simply label a staff member as an "independent contractor" if they meet the above criteria for an employee. Any attempt to disguise an employee as an independent contractor is prohibited by the Fair Work Act 2009.

All members should ensure that the relationship with a person who works for you is correctly classified. Incorrect classification as a contractor can have unintended and potentially serious consequences, including claims for unpaid entitlements or unfair dismissal and taxation and superannuation implications for both the employer and individual.

Recently, a retailer in Victoria was fined $30,000 for paying workers as independent contractors, when they were really casual employees and entitled to a higher wage and other benefits. The courts have regularly shown that they are prepared to hand down significant

Factor

Indicative of Indicative of Employment Independent Contractor

Do they have control of over the manner in which work is performed, place of work or hours of work

No

Yes

Do they work standard or set hours

Yes

No

Do they provide and maintain tools or equipment

No

Yes

Can they delegate or subcontract work

No

Yes

Are they paid a period wage or salary

Yes

No

Are they paid following task/job completion

No

Yes

Do they have their own ABN and pay their own superannuation, GST and tax

No

Yes

Are they free to work for others at the same time

No

Yes

Does the employer have the right to dismiss or suspend

Yes

No

Do they get paid leave or accrue leave

Yes

No

Do they provide their own public liability and accident insurance

No

Yes

penalties to employers who ignore their obligations.

In a recent 2016 case, the Fair Work Commission summarised the correct approach to classifying someone as a contractor or employee as follows: • In determining whether a worker is an employee or an independent contractor the ultimate question is, considering the terms of the contract and the totality of the relationship, whether the worker is conducting a business of their own or is a servant of another in that other's business.

• The nature of the work performed and the manner in which it is

•

performed must be considered.

The terms and terminology of the contract are important. However, the parties cannot alter the true nature of their relationship by putting a different label on it.

The table below summarises the indicators and factors of each working relationship.

No one indicator or factor is decisive and the relationship will depend on each individual circumstance.

If you are unsure whether someone working for you is an employee or an independent contractor, contact MGA’s HR & Legal Team on 03 9824 4111 (Line 1).

www.mga.asn.au

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N

INDUSTRY NEWS W E

February 2017 - Edition 1

To speak to your local T’Gallant representative please call 13 48 93

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LIQUOR NEWS

LIQUOR NEWS ALM acquirers Porters and Thirsty Camel 2016 was a year for acquisitions for Australian Liquor Marketers (ALM), with the acquisition of the NSW based Porters brand and recently the NSW and Tasmanian licenses for the day-to-day operation of Thirsty Camel and Big Bargain bottle shops in Tasmania.

This follows the 2014 ALM acquisition of Liquor Traders which controlled the marketing of 140 Thirsty Camel stores in Queensland.

The Victorian business of Thirsty Camel remains under the ownership of the United Inn-Keeper Association Limited.

Scott Marshall, CEO of ALM, recently stated that Thirsty Camel is a great fit for IBA and he sees the opportunity to grow the drive-through business model in both NSW and Tasmania.

that brand in Queensland we see an opportunity of growing the drive-through Thirsty Camel brand in both NSW and Tasmania and supporting their existing retailers,” said Marshall.

“Thirsty Camel is a great brand and on the back of our experience with

ALM has plans to grow the Porters brand up to 100 stores nationally.

NEW SOUTH WALES

NSW liquor law changes Key aspects of the NSW Government's reforms to liquor laws came into effect on Friday 16 December with the introduction of later trading times for takeaway alcohol businesses.

The changes followed the NSW Government’s response to the Callinan review, with Sydney’s lockout and last drinks laws maintained and key recommendations of the statutory review by the Hon Ian Callinan AC QC implemented.

Changes that came into effect Friday, 16 December 2016 • Takeaway and home delivery alcohol: Hotels, clubs, bottle shops and

licensed producers are now able to take advantage of later trading until 11pm from Monday to Saturday if their licence fulfils certain conditions. Sunday 10pm closure times remain unchanged.

MGA Liquor welcomes the decision by the Baird Government in adopting the recommendation by the Callinan report to remove the 10.00pm curfew imposed on packaged liquor licenses.

Should you require any further information please call MGA liquor on 1800 888 479 or visit www.liquorandgaming.justice. nsw.gov.au to access the NSW Liquor and Gaming “fact sheet”.

Renewing your RSA cards NSW members are reminded that they can renew their Responsible Service of Alcohol (RSA) cardholder’s cards by completing an online refresher training course for only $35.

Online refresher training is fast-paced and takes approximately 45 minutes to complete for each competency.

Competency cards are valid for five years from the date of completion.

Once expired, the cardholder can no longer work.

Licensees are encouraged to remind their staff to complete the online refresher training before their card expires.

For more information, visit www. liquorandgaming.justice.nsw.gov. au/Pages/liquor/serving-alcoholresponsibly/competency-cards/RSARCG-competency-card-renewals.aspx.

www.mga.asn.au

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LIQUOR NEWS

February 2017 - Edition 1

LIQUOR NEWS

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Wine Australia ploughs US$4m into Shiraz terroir research The trade body for Australian wine has said that research into the country’s terroir will form the centrepiece of its latest R&D projects, as it looks to raise the reputation of its wines.

Wine Australia has said that the AUD5.3m, six-year investment will help

the country’s wines receive greater recognition in export markets, as well as give credence to higher prices. The projects will focus on the Shiraz grape.

“Australia makes wines of exceptional quality and finesse that reflect their provenance and terroir, but they don’t currently receive the international recognition they merit,” said Wine Australia deputy chair Brian Croser. “It is these wines that will most quickly elevate the image and reputation of all wines we produce. We are focused on building international recognition for our wines to increase demand and the price paid for all Australian wines.”

Croser said the body had chosen Shiraz because it is the most-planted variety, with 26% of Australia’s

vineyard area. “We have the oldest Shiraz vines in the world,” he added, “and 40% of Australia’s exports valued at more than AUD10 per litre FOB, are Shiraz.”

The projects will look at how different environmental factors translate into physiological changes in grapevines that result in changes in berry composition and in turn create the expression of terroir in wines.

The research projects will be undertaken by a group of research institutions: the University of Adelaide, Commonwealth Science and Industrial Research Organisation, National Wine and Grape Industry Centre (NWGIC), South Australian Research and Development Institute and the Australian Wine Research Institute.

Have you paid your liquor licence renewal fee for 2017?

MGAL reminds all members that their Victorian 2017 liquor licence renewal notices have been distributed and were due for payment by the 31st December 2016.

Please read your renewal notice carefully to ensure you pay correctly. Each licence incurs a different fee depending on individual categories and conditions.

If the licence fee is not paid by 31st March 2017, the licence ceases to be in force and you are not permitted to sell liquor. You then have until the 30th June to apply to the VCGLR for a renewal.

Licences will be mailed-out from late February onwards.

Licensees must continue to display their 2016 licence until their 2017 licence arrives.

Should you have any queries regarding your liquor licence renewal please call MGA Liquor on 1800 888 479.

www.mga.asn.au

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LIQUOR NEWS

VICTORIA

Michael Truscott, Owner with Shane Cosgrave, Store Manager

New IGA Xpress plus Liquor opens in Mt Waverley, VIC Michael Truscott who has been running his own stores since 2003 has added to his Cheltenham store by purchasing Highbury Cellars in Andrew Street, Mt Waverley, Victoria in September 2016 and has transformed what was once a tired and run down free standing liquor store, into a modern state of the art IGA Xpress plus Liquor store.

Michael you have certainly transformed this site into a magnificent retail offer, what attracted you to this location, certainly the shop as it was would not have been a motivating factor?

Yes, you are right the store was very run down and needed a complete refurbishment; however I have for many years coveted the location, believing the area had a great need for an IGA Xpress style offer along with liquor. So when the opportunity

February 2017 - Edition 1

came to purchase the store I did not hesitate to buy it.

Once I took possession, the store was completely gutted and had a complete new refit. I spent many hours working on getting the store layout and traffic flows right, and worked closely with Metcash and ALM to achieve the right product ranging which is crucial to meeting consumer demand in the area.

We opened the store on the 9th December and have achieved sales

growth each week since, with positive feedback from our local community.

You have a strong passion and belief in your retail business model; will you be increasing your store sites?

My first store was in East Oakleigh which I bought with partners and since then have had a belief that multi-site ownership was, with the right location and offer, the best way to grow our retail footprint, It allows us to spread

LIQUOR NEWS

the risk, by better allowing us to be more price competitive against our competitors.

What are the opportunities that you see for the independent retail sector?

There are many opportunities out there for the right retailer; in my opinion it’s about offering your customers something different from what the chains offer, having individuality and being community focused is the key.

Being a better retailer means being proactive rather than reactive and spending more time in your own business rather than worrying about what other retailers are doing.

How important is it to be part of a banner group?

Partnering with banner groups is the key-stone to the success of our businesses; the IGA logo which we

trade under is a highly respected, and has fantastic consumer recognition.

It allows us to trade with corporate disciplines whilst enabling us to maintain our individuality.

Being part of the IBA family offers independents bigger product discounts and marketing support, they keep us up-to-date with new products, pricing, marketing and technology keeping us ahead of the game. Not being part of a banner group leaves you well and truly out on your own.

How would you summarise the key points to successful retailing?

For us it’s been about having the right staff at the right store location, listening to your customers regarding ranging, having competitive pricing, store layout, store cleanliness, service, involvement with the local community and being

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different to your immediate competitor.

What are your main challenges?

The main challenges are to try and keep the cost of business down with electricity, rent and of course our largest cost wages. This year in particular there were four public holidays over Christmas in one week which put pressure on the budget, as you want to reduce the staff levels, but then you also want to maintain customer service.

Sunday rates and the additional AFL Grand Final day public holiday continue to be a cost burden on small business.

Government and local council red tape continues to add costs when applying for either a new or transfer of an existing liquor license, there is massive duplication between local council and Liquor Licensing. We feel as we are applying for a license twice.

www.mga.asn.au

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LIQUOR NEWS

VICTORIA

Mandatory signage for Victorian packaged liquor licenses has been updated!

Mandatory liquor licence signage has been updated to reflect current penalty rates. These can be found on the MGA Liquor members website and the VCGLR website.

LIQUO R LICENSING LAW

Liquor Control Reform Act 1998

Intoxicated?

Drunk?

Disorderly?

Please ensure you have the most up-to-date signage by checking the keycode (located in the bottom left-hand corner of the poster) against the keycode listed on the liquor signage page of our website.

It is against the law:

an • for a licensee to supply liquor to intoxicated person

Penalty exceeds $18,000

disorderly • for a licensee to allow a drunk or person on the premises

Penalty exceeds $18,000

person to • for a drunk, violent or quarrelsome premises refuse a request to leave a licensed

LIQUOR LICENSING LAW

Liquor Control Reform Act 1998

Do not attempt to buy liquor for under 18s It is against the law:

• for any person to supply liquor to under 18s* • for a licensee to supply liquor to under 18s

Penalty exceeds $18,000 Staff have the right to request ID

* Exceptions apply

We accept the following ID:

Penalty exceeds $7,000

Should you require any further information or require copies please call MGA Liquor on 1800 888 479.

Australian driver licence

Victorian learner permit

Proof of age card

Keypass card

Australian or foreign passport

www.vcglr.vic.gov.au

www.vcglr.vic.gov.au VCGLR0022016V1

VCGLR0012016V1

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6/10/2016 12:19 PM

LIQUOR NEWS

35

Around the World Philip Morris International investing in cigarette alternatives Philip Morris International (PMI) has committed to developing a viable reduced-risk alternative to the combustible cigarette – a project in which it has already invested US$2 billion ($2.69 billion).

Speaking to the BBC following the launch in Britain of iQOS – a smokeless cigarette described as a hybrid between analogue and electronic cigarettes – PMI CEO Andre Calantzopoulos said: “I believe there will come a moment in time where I would say we have sufficient adoption of these alternative products… to start envisaging, together with governments, a phase-out period for [combustible] cigarettes.”

According to Euromonitor International, the total global vapour-products market reached a value of US$8 billion ($10.6 billion) in 2015 and an estimated 29 million people were regular dual or sole users of e-cigarette and vapour products globally that year.

Euromonitor International Head of Tobacco Research Shane McGuill says that for any alternative nicotinedelivery offering to be effective, both a substantial reduction in harm to the consumer and a profile that appeals to existing users of traditional cigarettes are required.

“In the iQOS, PMI clearly believes

it has the potential to deliver on both requirements, but ultimately, the consumer will decide,” he said. “The comments [from Mr Calantzopoulos] also raise the prospect of governments actively intervening to encourage transitioning to lower-risk products such as the iQOS – most likely either through differential taxation or regulation.

“It remains to be seen whether authorities will be willing to take such steps and, in all probability, official attitudes will vary.”

Global liquor sales decline for the first time in a decade Global alcoholic-drink volume sales declined by 0.7 per cent in 2015, translating to a loss of 1.7 billion litres of volume sales since 2014, according to new research released by Euromonitor International.

China recorded a 3.5 per cent decline and Brazil and eastern Europe showed further weaknesses, falling 2.5 and 4.9 per cent, respectively.

While Western Europe and Australasia flat lined, North America’s 2.3 per cent growth provided a shot of optimism in an otherwise sobering global landscape where even the potential of Asia, Middle East and Africa was diluted by currency volatility and commodity price fluctuations.

Euromonitor International Senior Alcoholic Drinks Analyst Spiros Malandrakis says that while terms such as ‘authenticity’ and ‘craftsmanship’ are losing traction, the trajectories of sophistication, moderation, perceived exotic credentials, accessibility and restrained yet grounded aspirational attributes remain the key driving forces fuelling pockets of buoyancy.

Beyond those star performers, tequila and bourbon remained solid, while cognac bounced back strongly. Cider performed well, but has softened as Americans move to hard soda drinks. Rum and vodka are among the worst performers, while still, light white and red wine varietals join sparkling wines in returning to healthy levels.

“Premium English gin, Irish and Japanese whiskey and dark and non-alcoholic beer are the flag bearers of growth and it’s no coincidence that those also happen to be the segments gaining further momentum with the ever-important Millennial demographic in mature Western markets,” he said.

“While initial forecasts suggest a gradual recovery from 2016, performance will remain substandard compared with historical trajectories,” Mr Malandrakis said. “It’s not the industry’s vision that is impaired, but rather the horizon that can be treacherous.”

www.mga.asn.au

36

LEGAL AND HR

Mountain Goat started out as Dave’s weekend homebrew project in a suburban Melbourne backyard when a postcard turned up from his mate Cam who was backpacking overseas.

Cam had just discovered good beer in Vancouver and decided Melbourne needed good beer too. This was back in 1997.

So Cam and Dave had a great idea but no money to build a brewery. They were knocked back from every bank they approached but

Drink Responsibly.

February 2017 - Edition 1

luckily, with a little help from friends and family, they prevailed and Mountain Goat was soon tapped at a few local pubs.

Today, almost 19 years later, Mountain Goat is now found nationally and the brewery and bar still operates in the back streets of Richmond, with a lineup of old favourites on tap and constantly changing limited releases and barrel aged beers.

From Steam Ale, one of Australia’s first organic beers, to the refreshing Summer Ale and Pale Ale, through to the complex malt characters in Hightail Ale and Fancy Pants, there is a Mountain Goat beer for everyone.

To place an order for Mountain Goat please contact your Asahi Premium Beverages representative or call our customer service team on 1800 090 378.

goatbeer.com.au

37

LIQUOR NEWS VICTORIA

VIC Government’s review of the Liquor Control Act 1998 In November 2016 the Minister for Consumer Affairs, Gaming and Liquor Regulations, the Hon Marlene Kairouz, asked the Department of Justice and Regulation to review the Liquor Control Reform Act (LCRA) and associated regulations as set out in the terms of reference.

The consultation paper was in two parts: one on facilitating a diverse industry reducing red tape, and the other focus was on harm minimisation.

In undertaking the review of the Act the Victorian Government’s aim was to

identify ways to reduce red tape and regulatory burden on business and to also assess the effectiveness of the Act’s harm minimisation measures, including the degree to which they can play a part in minimising the incidence of family violence, as recommended by the Royal Commission into Family Violence.

The terms of reference made it clear it would not consider or recommend introducing lock-outs for on or off late trading licensed premises.

Submissions were requested from industry and consumer stakeholder groups and people with expertise in the inter-relationship between family violence and alcohol use. MGA has made a submission on behalf of its members and the full report can be viewed on the member’s website www.mga.asn.au.

Diageo Australia names new commercial head

“The quality of these wines is seriously good.”

Diageo Australia has appointed Andrew Clarke to the role of Commercial Director.

Clarke replaces Simon Tamke, who announced his resignation in September 2016 after just over a year in the role. Tamke will step down In February, with Clarke assuming the position at the same time.

BROWN BROTHERS PATRICIA AN AWARD WINNING RANGE James Halliday 2016

Andrew Clarke

Clarke was most recently CEO of Australian poultry company Ingham’s Enterprises. Prior to that, he was Global President of Mars’ drinks business in the US. “Andrew is a big hitting commercial director who delivers results,” said David Smith, MD Diageo Australia. “He loves brands, people and customers and he’s going to be a great fit for the Diageo Australia business.”

2017 Patricia launch available from 17 March 2017 For more information, contact your Brown Brothers Area Manager or call 1800 032 248.

www.mga.asn.au

38 LIQUOR NEWS BEWARE: THE HIDDEN ELECTRICITY COSTS

METERING COSTS Metering Cost $8,892.00*+

Was $6.79 per day Now $1.92 per day Electricity $33,000.00*

Tariff Review $30,000.00* Peak Reset $22,800.00* Billing Errors $1,350.00*

JUST THE TIP OF

THE ICEBERG? A recent case study done by Aussie NRG on one of MGA’s very own members stores, has identified approximately $96,042.00 worth of savings over a 5 year contract!

Aussie NRG can assist you with all aspects of your electricity costs to secure savings and improve your profit.

If you are paying more than $1.92 per day for your metering costs give us a call.

*These figures represent dollars saved in ONE store over a 5 year contract negotiated by Aussie NRG

For an obligation FREE quote Send both pages of your recent energy bill to: MGA’s dedicated account manager on: 1300 139 731 Email: mges@aussienrg.com February 2017 - Edition 1

AUSSIE

NRG

39

LIQUOR NEWS

KPMG Report – The truth about online consumers KPMG recently released a report based on the spending behaviour and preferences relating to online shoppers. The report which surveyed over 18,500 consumers between the ages of 15 and 70 living in over 20 countries, with each having purchased at least one consumer product online in the past twelve months.

e-commerce Market Share for top 10 Australianretail and e-commerce Gumtree AU Apple Australia Bunnings Warehouse

Some key findings of the report showed that; • Generation X consumers (born between 1966 and 1981) made more online purchases last year than any other age group, averaging nearly 19 transactions per year.

• Australia has the 4th highest average number of online transactions per person per year 16.1%, behind Western Europe 18.4%, North America 19% and Asia at 22.1%.

• Whilst men and women shopped about the same frequency, on average men spent more per transaction US$220 v US$151 for women.

• In Australia alcohol is the 3rd biggest online purchase behind women’s apparel, books and music.

• Australian consumers still have more trust in websites that are linked to a bricks and mortar retailer, as opposed to online only stores.

The full report can be read on kpmg.com/onlineconsumers In a 2015 report published by Staista, it was reported that the Australian eCommerce market was projected to achieve a 9.3% growth with $19.02 billion online purchases and transactions.

Australian growth looks immensely promising for 2016, 2017 and 2018 as the eCommerce growth is forecasted to be an

JB Hi Fi Australia Target Australia ebay Amazon Australia All Express Oz Bargain ebay Australia

upward projectile; by 5.9%, 6.3% and 6.6% growth respectively.

In 2015, Australia ranked as the 10th best eCommerce market globally, a slight demotion from the previous year’s 9th position, but substantial development in cumulative figures and growth percentage of a $10 billion+ eCommerce market totally eclipsed the fact, nonetheless.

The convenience and greater value offered by the eCommerce industry has attracted more and more consumers online and the rise of mobile technology and accessibility has only expedited the estimated 22% growth of the eCommerce last year.

VCGLR release 2015/16 Annual Report In their recently jointly released 2015/ 16 annual report Victorian Commission Gaming Liquor Regulation (VCGLR) Chair Dr Bruce Cohen and CEO Catherine Meyers outlined the VCGLR’s achievements over the past twelve months.

In August 2015 the VCGLR released its Strategic Plan 2015–18 to build upon the progress made in establishing and transforming the organisation during its first three years. The plans objective was to guide the work of the VCGLR for the next three years with a focus on maturing and strengthening

organisational perations. Along with the new plan the VCGLR introduced a new vision and purpose, reflecting community expectations of the availability of gambling and liquor and aligning with the organisation’s regulatory approach and commitment to maintaining industry integrity while minimising harm. As a modern, networked, efficient and highperforming regulator, the VCGLR’s goals are: • •

the right regulation, in the right circumstance, for the right risk work with industry, community and other stakeholders to reduce harm

• •

the best outcome using the most effective means engaged people with the right capabilities, working together to deliver outcomes.

MGA Liquor will continue to work with the VCGLR Board and department heads to further remove the cost burden to our members of any unnecessary red tape and in developing strategies to reducing the harm caused by a minority of drinkers through the abuse of alcohol.

The full report can be read on the VCGLR website www.vcglr.vic.gov.au.

www.mga.asn.au

40

TRAINING

TRAINING The importance of food safety training As a business owner/manager, there are many responsibilities in running the business.

At times you may find yourself overlooking the importance of training until something happens and it is too late. Within Australia there is a growing problem with food borne illnesses, and this is a serious concern for anyone that owns or runs a food based business.

In many states and territories (NSW, QLD, VIC, ACT) every food business must have a Food Safety Supervisor contactable at all times (this could be yourself or another appropriate staff member). You must also have an operational Food Safety Program in place. In Australia it is a legal requirement that all food handlers are trained in food safety whether via formal or informal training.

This training can be conducted through an online platform where on completion a certificate can be downloaded and printed as evidence of the training being undertaken. Alternatively, this could also be performed on the job, ensuring that all records are kept of any such training being completed.

MGA offers both the Basic Food Handling training module and the Food Safety Supervisor course – both available from the MGA website www. mgaonline.com.au.

Food borne illness in Australia On average per year in Australia, more than five million cases of food borne illnesses are reported – resulting in over 100 deaths. This can have a direct impact on the business through fines, loss of customers and possible litigation.

The Food Standards Commission of Australia and New Zealand indicates

February 2017 - Edition 1

that the occurrence of food poisoning in Australia has been on the rise – the main causes of which are bacteria and viruses such as: • Hepatitis A • Listeria • Salmonella • Campylobacter • E.Coli

online providing a cheap, convenient and effective solution for business owners/mangers.

In many cases, food poisoning could be avoided with the proper food safety procedures put into place.

Training is essential to ensure that staff understand their responsibilities in terms of food handling.

Also, as mentioned previously, it is a legal requirement that anyone who handles food in Australia must be trained in food safety. The basic Food Handler course covers all of the basics of food safety, and provides a good foundation for ensuring that your business is protecting all customers and meeting all legal requirements.

Types of food safety training available MGA’s Food Safety Supervisor training is conducted via a short online course that delivers the required nationally accredited unit of competency. We offer these courses

In New South Wales it is a requirement to complete a refresher course every five years. This is available from the MGA online training website www.mgaonline.com.au.

For all training enquiries please contact the training team on 1800 888 479 or email training@mga.asn.au.

41

TRAINING SOUTH AUSTRALIA

Face-to-face Food Safety, Adelaide On the 24th of November, 2016 Christine Potter (MGA trainer and assessor) conducted food safety training for the nationally accredited unit of competency – Apply Retail Food Safety Practices at Foodland House in Adelaide. The participants attending the 5 hour course were from the Adelaide area, Barossa Valley and Murray Bridge.

The 14 participants completed all the training and assessment requirements on the day covering the following topics: • Food safety regulations • Food poisoning and its impact • Contamination

• • • •

Food hygiene Temperature and processing guidelines Allergens Cleaning and sanitising

Attendees participated in the “GlitterBug” handwashing technique to demonstrate the importance of correct handwashing. They found this practical exercise beneficial as it showed areas that were difficult to clean, such as in between fingers, fingernails, palms and back of hand.

Glitterbug hand washing exercise

To enquire and book your onsite face to face food safety course please contact

our training team on 1800 888 479 or training@mga.asn.au.

Training of employees Training assists in acquiring knowledge and skills in order for an employee to carry out a specific task or job. Training benefits employees in several ways: • It increases their sense of ownership in the business • They become more organised, productive and flexible and are better able to meet the needs of customer • New skills and abilities in areas

•

such as decision-making can empower staff, which makes them more effective It instils confidence and the employee has a better understanding of their roles and responsibilities

If time is spent on engaging an employee in training they are more likely to implement their new skills and

knowledge into the business. Therefore improving business performance, profit and staff morale.

Online training is self-paced, which means that segments of information can be distributed over time and absorbed, rather than provided all at once. The benefits of online training is that it is available anytime and anywhere. This allows the participant to organise the training around their hectic schedule.

Training not only develops people’s technical understanding, but it also assists to build confidence, interpersonal skills, communication skills, quality management and team work skills – all things any company should view as crucially important for organically professional growth.

For all training enquiries please contact the training team on 1800 888 479 or email at training@mga.asn.au.

www.mga.asn.au

42

TRAINING

NATIONAL ONLINE COURSES MGA delivers training and Responsible Service of Alcohol compliance solutions specific This course deals with the skills and knowledge required to the needs of independent to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons retailers. We have a range of involved in the serving and sale of alcohol must training and compliance solutions complete this. readily available for members. *Log in to our website with our member login to order you courses at these member prices.

Basic Food Handling

Duration: 20-30 minutes Member Price: $25 Food Safety Supervisors

Duration: 4-8 hours Member Price: $105 Food Safety Supervisors – NSW

Duration: 4-8 hours Member Price: $150 Food Safety Supervisors Refresher Course – NSW

Duration: 2-4 hours Member Price: $100 Monitor Food Safety Program

RSA

SA

QLD

RSA

NT

RSA – WA, QLD, SA, NT

Duration: 3 hours Member Price: $45

RSA

RSA

ACT

RSA – ACT

ACT

RSA Refresher – ACT

VIC

RSA Face to Face – VIC

RSA RSA RSA

Duration: 3-4 hours Member Price: $45

(must be completed every 3 years) Duration: 1-2 hours Member Price: $30

Duration: 4 hours Member Price: $49

See our website for regional RSA courses.

Duration: 2-4 hours Member Price: $105

RESPONSIBLE SERVICE OF ALCOHOL COURSES

Food Safety Supervisor & Monitor Food Safety Program

Do you have 10 or more staff to train in RSA? Contact us to see if we can organise an instore course.

Duration: 6.5 hours Member Price: $180

February 2017 - Edition 1

WA

*Available in MELB Metro and surrounds.

43

TRAINING

Visit www.mga.asn.au to see our range of training courses Health and Safety These courses aim to provide employees with information and instruction on their responsibilities and the responsibilities of management with regard to workplace health and safety.

There is a large selection to choose from:

Health & Safety Induction

Duration: 30 minutes Member Price: $25 Administer Workplace Health & Safety

Duration: 60 minutes Member Price: $40 Emergency Management

Duration: 60 minutes Member Price: $25 Store Security

Duration: 30 minutes Member Price: $25 Manual Handling

Duration: 60 minutes Member Price: $25 Workplace Violence, Bullying & Harassment

Duration: 30 minutes Member Price: $25 Hazard Identification & Risk Management

Duration: 40 minutes Member Price: $40

Updated online courses on the MGA website The system and courses have been designed to be user friendly and work on most devices, including desktops, tablets and mobile phones. As long as you’ve got internet access, you’ve got learning opportunities.

Food Safety Food Safety Supervisor course for all states except NSW: $105 Food Safety Supervisor course for NSW: $150 Food Safety Supervisor refresher course NSW: $100 *Food Safety Supervisor refresher course is a new course developed for NSW. It contains the extra information on raw egg safety and allergens that the Food Authority now requires. You need to refresh NSW Food Safety Supervisor training every 5 years.

Responsible Service of Alcohol – Special introductory price RSA Online for QLD, SA, WA, NT: $45 RSA Online for ACT: $45 *RSA Online Refresher course for ACT: $30 *The ACT RSA refresher course is to be completed every 3 years after your initial qualification. You must be able to supply evidence of your original RSA certificate to do this course. The online course can be completed in around 1 to 1.5 hours.

www.mga.asn.au

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