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The Weekend Neos Kosmos : 18 October 2014
SATURDAY 18 OCTOBER 2014 25 BUSINESS FINANCIAL WEEK Coffee prices expected to rise A dry spell in the world's largest coffee producer - Brazil - is expected to see a price spike for the popular beverage A report in The Austral- ian earlier this week has braced consumers for a cof- fee price rise, suggesting consumers could be paying asmuchas$5foracupof their beloved brew. A two-and-a-half year high saw prices rise to US $2.20 a pound, on the back of dry weather in Brazil (the world's largest pro- ducer of coffee). Industry experts suggest the rise could hit supermar- ket shelves and consumers, with other factors also con- tributing to the increase. Peter Nikolakopoulos, from the Kaffeina group, told the newspaper that factors attrib- uting to overheads and costs associated with take-away may be passed down to con- sumers. "That's a reflection of labour, other overhead costs, not the price of the coffee component in a cup. I'll use the example of Illy, which is an expensive, premium coffee which sells for $50 a kilo. You get 140 cups out of a kilo, so you're talking a 35c coffee compo- nent. It's a long way from there to $5. The main costs are labour, rents, electric- ity," he said. Source: The Australian After falling out with other board members of fast food chain Collins Foods, business entrepreneur Stephen Copu- los says he's not ruling out a takeover of the company af- ter stepping down as a non- executive director. Mr Copulos resigned from the board last week after failing to gain support from other shareholders to vote against the re-election of chairman Russell Tate and prevent the adoption of the remuneration report at last month's annual meeting. As Australia's second largest KFC franchisee with 50 restau- rants, Mr Copulos has accused the listed public company of poor corporate governance and remuneration practices, questioned its growth strat- egies, and been highly criti- cal of the poor performance of Collins Food's Sizzler chain. Mr Copulos holds a 17 per cent stake in Collins Foods. He told reporters this week that "all options" were on the table, including buying more shares, selling his stake to a strategic buyer or making a takeover offer. "If it makes sense we'd con- sider any option," Mr Copulos said. "I'm not in any rush to do anything." Mr Copulos is reported to have the support of around 300 small shareholders, and said he was disappointed that the rest of the board did not share his concerns. "I still feel there are signifi- cant structural and govern- ance issues that need to be addressed," he said. The board has defended the company's performance, pointing to strong same-store sales growth at KFC and says it has plans to 'refresh' the Sizzler brand by improving menus and store ambience. The company recently an- nounced the appointment of barrister Robert Kaye SC, the non-executive chairman of Paperlinx, as a non-execu- tive director. Analysts believe Mr Cop- ulos' resignation as a non- executive director may be a catalyst for further corporate activity. A takeover would enable the Copulos Group to merge its restaurants with Collins Foods' 176 KFC outlets and create economies of scale in the increasingly competitive fast food trade. A merger is likely to require the approval of KFC brand owner YUM! Brands in the US and the support of 18 per cent shareholder Allan Gray. Source: Fairfax Media Copulos considers Collins Foods takeover KFC franchisee counting his chickens Born to Greek Cypriot parents who migrated to Australia in 1950, George Savvides has been revered as the master- stroke behind Medibank's survival. Savvides was the first in his family to attend university, having studied industrial en- gineering at the University of NSW. Upon graduating, he joined corporate life and on the back of the advice of his MBA- qualified manager he decid- ed to follow a similar career path. He went back to university and completed a master of business administration at the University of Technol- ogy, Sydney, which saw his career opportunities spike. He was approached by McPher- son Metals on the back of his thesis, which looked at how Japanese manufacturing pro- cesses could be applied in this country. He then joined British-based medical supplier Smith & Nephew in Australia, be- coming its CEO, before join- ing pharmaceutical company Sigma Pharmaceutical Group. Savvides then joined the board of Medibank in 2001 before becoming its CEO in April the following year. His first year was tumul- tuous, with the company announcing a $176 million loss. But after 12 years at the company, including a com- plete overhaul which saw a $131 million profit in 2005, the company is now bracing for privatisation, with ex- perts suggesting as much as a $4.1 to $5.7 billion financial reward.Source: The Australian Medibank's recovery Medibank chief George Savvides. PHOTO: AAP/MARK GRAHAM. George Savvides behind the resurrection of Australia's largest health insurer Oakleigh resident Chris Pearson has spent the last two Sunday mornings at the market collecting signatures from visitors, stallholders and local traders who have expressed shock and anger at Monash Council plans to sell Oakleigh's major car park, and site of the community market, to developers. "This is a terrible decision by six councillors who clearly don't understand just how impor- tant this market is to the local community. The Rotary Mar- ket, with its fruit and vege- tables - much of it grown in Oakleigh gardens - and bric-a- brac, complements the village atmosphere of Oakleigh. It's a place that locals and visitors meet before enjoying a coffee and cake in Eaton Mall." So far over 800 people agree with Chris, who is founder of 'Save Oakleigh Rotary Mar- ket'. "With the help of Councillor Steve Dimopoulos and Oak- leigh Rotary Market chair- man Peter Norman, we have collected 816 signatures. Peo- ple are genuinely horrified at the thought of this colourful Oakleigh institution being evicted for another soulless development." Councillor Dimopoulos ex- pressed his disappointment with the decision. "We can do much better than this. What this is giving us is just a mediocre, unimagi- native apartment block and we're losing many car parks on such an important piece of land in Oakleigh." Oakleigh Rotary Market chairman Peter Norman is not happy with any of the suggested replacement sites either. "There is no other alternate site at present that allows us to run the market as effective- ly as we now do. The present site caters for 160 stalls and the best alternative, we un- derstand, is 90 stalls." The Oakleigh Rotary Mar- ket contributes over $70,000 to local community organisa- tions every year and, since its existence at Hanover Street, Peter Norman estimates that the market has donated over a million dollars to worthy community groups. A rally to keep the market at its present location has been organised for 10.00 am on Sunday October 19 at the Hanover Street site. Enter- tainment will be provided by local musician Tracey Miller. Anger at council over market move Visitors and stallholders are angry at Monash Council's plans to move the Oakleigh Rotary Sunday Market from its Hanover Street location in order to make way for a seven-storey apartment block The Oakleigh Rotary Sunday Market at Hanover Street.
11 October 2014
25 October 2014