McDonald’s will start reopening some of its restaurants in Ukraine in the coming months, in a show of support after the American fast-food chain pulled out of Russia.
The burger giant closed its Ukrainian restaurants after Russia’s invasion nearly six months ago but has continued to pay more than 10,000 McDonald’s employees in the country.
McDonald’s said on Thursday that it would begin gradually reopening some restaurants in western Ukraine and the capital, Kyiv, where other American businesses including Nike and KFC, and Spanish clothing retailer Mango are open.
“We’ve spoken extensively to our employees who have expressed a strong desire to return to work and see our restaurants in Ukraine reopen,” Paul Pomroy, corporate senior vice-president of international markets, said in a message to staff. “In recent months, the belief that this would support a small but important sense of normalcy has grown stronger.”
The Ukrainian economy has been severely damaged by the war, with the International Monetary Fund expecting the economy to shrink by 35% this year.
McDonald’s has 109 restaurants in Ukraine, but didn’t say how many would reopen, when that would happen or which locations would be the first to welcome back customers. Over the next few months, the company said it would start working with vendors to get supplies into restaurants, prepare stores, bring back employees and launch safety procedures, with the war still raging to the east.
While it will start to reopen in Ukraine, McDonald’s has sold its 850 restaurants in Russia to a franchise owner, three decades after the company opened its first location in Moscow in a powerful symbol of easing cold war tensions.
McDonald’s shuttered hundreds of Russian locations in March, costing the company about $55m (£45m) each month. Selling its Russian restaurants was the first time the company had exited a large market.
Alexander Govor, who held a license for 25 McDonald’s outposts in Siberia, has begun reopening former McDonald’s locations under the name Vkusno-i Tochka, or Tasty and that’s it.
Meggs says his firm has been educating clients on the ATO’s shifting focus since 2014. But more broadly, he says his firm doesn’t try to pitch family trusts based on their tax benefits.
Instead, he believes family trusts are more useful for asset protection.
Family trusts are a type of legal entity set up to hold assets for the benefit of the family members within the trust. As the assets within the trust are considered to be held by the trust, rather than by the beneficiary, the trust can offer an additional layer of legal protection.
“It’s much harder for a creditor to attack or take those assets away [from a family trust],” says Meggs.
For that reason, people in the medical profession, lawyers, engineers and business owners may consider establishing a family trust, simply as a means of shielding assets in the event they are sued.
“They’re not just for rich people. In fact, they’re easier and more popular today than ever before,” says Meggs.
“At the end of the day, you can set up a trust for a couple of thousand dollars. If you’re going into business and you want to protect your assets, they’re a great tool.”
2. Keeping the family business in safe hands
Kelly Pillay, principal at financial planning firm KLI Group, says the main reason she sees people set up family trusts is for asset protection. She adds, however, that owning a family business can also be a valid reason to set one up.
That’s because a family trust allows the trustee discretion to decide how to distribute income to beneficiaries. Family trusts also offer a 50 per cent capital gains tax discount on any capital gains made upon the disposal of assets held for longer than one year.
“If you’ve got children who are coming into an established business over time, the family trust gives flexibility to plan those things,” she says.
“It gives the family the ability to share that [business] profit and develop that person over time, without having to trigger tax consequences and ownership issues in transferring assets between people’s names.”
Most businesses will generally require some sort of structure to run the business, adds Want, but that doesn’t mean it needs to be a trust.
“If your business is only turning over a few thousand dollars, you’re selling something down at the markets once a month or something like that, unless you’ve got a huge asset-protection need to have to run it through a trust, you’ll probably run it through your own name,” he adds.
However, someone who is running a business full-time with employees may be more likely to use a family trust structure.
The longevity of family trusts – they can last for up to 80 years – also makes them popular among family businesses.
“You can start a business today and have your grandchildren take control and run that, without having to transfer that business and pay capital gains tax along the way as you exit it and retire or pass away,” adds Meggs. “From a legacy perspective, that’s really good too.”
3.Thinking about the future
Family trusts are also useful in estate planning, says Want.
“Obviously, if someone were to pass away, their will deals with the assets in their name. But depending on how they’ve structured their affairs, things like trusts can be dealt with separately.”
For example, if parents or grandparents are on the top tax rate and building up assets in their own names, selling those assets may incur large tax bills.
“[But] if they’re doing that through a trust, when they sell those assets, that capital gain might be able to be distributed to the grandchild and taxed in the grandchild’s name,” says Want. “If the grandchild has little or no other income, it could be a very tax-effective way to do it.”
Additionally, if a family is building up significant wealth, they may choose to set up a trust and add assets to it over the years. Then, once children or grandchildren are old enough, assets in the trust can be sold and distributed to them – perhaps when they’re in their 20s or 30s and considering buying their first home.
4. Save on tax
While the ATO is watching distributions made to family members on lower tax rates, parents can still provide financial support to children through trusts, says Meggs.
“What I’ve been saying to clients is, ‘You know you’re going to be paying your kids’ uni fees, you know you will buy them a car, you know that you might pay for a wedding or a house deposit’ .
“Rather than just giving them money for that on the side, the parents just need to pass them the cash [through the trust] and let them pay for the car, let them pay for their own university fees.”
The accompanying tables illustrate the tax savings when this is done. Take two parents earning $250,000 each a year who want to give their adult university student child $75,000 to cover university, residence and living expenses. They’re better off by just over $22,000 doing this via a family trust.
Parents earning $190,000 each a year wanting to give $18,200 to an adult university student child would save almost $9000 by doing this via a family trust.
One of the benefits of making distributions in this way is a greater opportunity to increase financial literacy, adds Meggs.
“It’s a great way to say, ‘Well, because that is your money, if you want that for a house deposit and you don’t need it in the short term, why don’t we work with our financial adviser to help you invest that in a way that’s consistent with your goals?’
“It’s a good way for advisers to get that next generation of people and educate them.”
Where to next for trusts?
All three experts agree the ATO’s rules are fair, but warn the crackdown is only just beginning.
Meggs suspects there will be a test case at some point that will go through the courts.
“By the time that happens, people probably will have changed their behaviors because they’re not going to want to get audited. It’s a big stick from the tax office,” he says.
“But as a result of that change in behaviour, there’s probably going to be political scope for a legislative fix.”
Pillay, who has seen an increasing number of requests for help in establishing family trusts, believes the ATO focus will prompt many families to revisit the way they’re operating their trusts.
“They’ll start to formalize the family arrangements that maybe previously had been a bit ad hoc or a bit all over the shop,” she says.
And, adds Want, it’s a good reminder that not everything can be solved with a trust.
“One of the key messages with family trusts is that people should sit down and talk to their accountant or adviser about how the trust operates, and not be afraid to restructure or no longer use it,” says Want.
“Most people would prefer their affairs are kept as simple as possible to achieve what they need to achieve. That doesn’t mean they always need a trust. Sometimes not having it is not only perfectly legitimate, but the best thing for them.”
Read this before you buy your next SUV! On Tuesday, August 16 2022, Drive.com.au publishes the most thorough and most exhaustive comparison of Australia’s most popular SUVs.
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We gathered 11 of the nation’s best-selling mid-size SUVs and spent five days researching them, measuring them and driving them to reveal which one represents the best value for Australians.
Medium SUVs have nailed the Goldilocks formula when it comes to what Aussies want. They’re a good size, well-equipped, affordable, economical and pack decent on-road performance.
But with 36 different models on offer, how do you know which one is your Goldilocks?
We chose to test cars based on their popularity with Australian new car buyers so far in 2022. We invited the brands with the most popular Medium SUVs priced under $40,000 to participate.
Each participating brand provided us with their most affordable petrol-powered, front-drive variant, or if that was not available, the next one up.
The only vehicle more than one step above its respective base model is the MG HS Excite X AWD.
Every vehicle in this Medium SUV Megatest was evaluated by our team of six experts against six major categories: Ownership Costs, Interior Space, Equipment, Safety, Infotainment, and Driving.
Each of those categories had between 12 and 25 criteria, meaning we compared more than 100 data points on every car in our mission to identify the best medium SUV.
In addition to that, we used subjective testing to evaluate a vehicle’s driving performance and the quality of active safety systems and infotainment systems.
We evaluated the ownership costs such as driveaway pricing, fuel use, insurance quotes, resale value, servicing costs and warranty coverage.
Where a test car came with extra-cost options – such as the Ford Escape’s head-up display and electric tailgate – we excluded these options from our scoring and took them off the price.
We checked every car against a 20-point list of basic equipment that all cars should have, but not many do. For example, four of our cars do not offer climate-controlled air-conditioning. Two of them do not have push-button starters, and one doesn’t offer dusk-sensing headlights. Only two have leather upholstery and three provide a wireless phone charger.
We measured everything from headroom to knee room and luggage loading height. That last one is important if you’re lifting prams or groceries into the boot.
We scrutinized the various infotainment systems – the most used feature inside a car – for what they have and how well they work.
We dived deep into the safety features to understand not just which car offers more, but how seamlessly they integrate with everyday driving.
We did not take these vehicles to a race track to test the limits of their performance, nor did we test their trailer towing capabilities. We feel that while these tests can be helpful in understanding a vehicle’s extreme capabilities, they don’t represent everyday usage for the vast majority of buyers.
At the end of all that, we gave every vehicle a rank in every category, from first to eleventh. Then we added those ranking together and applied a weighting to more important categories like Ownership Costs, Safety, Interior Size and Equipment.
Only Drive.com.au goes to these lengths when testing the vehicles more Australians buy. And that means you should only trust Drive.com.au when making your next new car purchase decision.
Glenn Butler is one of Australia’s best-known motoring journalists having spent the last 25 years reporting on cars on radio, TV, web and print. He’s a former editor of Wheels, Australia’s most respected car magazine, and was deputy editor of Drive.com.au before that. Glenn’s also worked at an executive level for two of Australia’s most prominent car companies, so he understands how much care and consideration goes into designing and developing new cars. As a journalist, he’s driven everything from Ferraris to Fiats on all continents except Antarctica (which he one day hopes to achieve) and loves discovering each car’s unique personality and strengths. Glenn knows a car’s price isn’t indicative of its competence, and even the cheapest car can enhance your life and expand your horizons.
A new $8 Kmart laundry buy is selling out across Australia thanks to one shopper’s “genius” pantry hack.
Sharing on TikTok, customer Amelia – who uses the handle @thesustainablelaundry – revealed how she used the store’s Plastic Laundry Container Small as a food storage solution.
See how she uses the Kmart laundry buy in the video above
For more Lifestyle related news and videos check out Lifestyle >>
The nifty buy consists of a small container that has a lid which doubles as a 150ml measuring cup.
While the bargain buy is designed to be used for washing liquid and powder, Amelia said it was also perfect for storing pantry staples such as rice.
“This is designed for laundry detergent, but it’s also brilliant for pantry storage!” she said in the video, which has attracted more than 720,000 views.
Kmart’s Plastic Laundry Container Small retails for $8. Credit: thesustainablelaundry/TikTok
The video prompted an excited reaction from many TikTok users.
“No way! Runs to Kmart,” said one.
Added another: “I wish I saw this before buying a $10 rice container!”
Write to third: “Omg! I need this! NOW!”
One more said: “We love them in our pantry and laundry!”
The TikTok user noted the buy was also ‘brilliant’ for pantry storage. Credit: thesustainablelaundry/TikTok
But some were skeptical of the hack, worried that the plastic used in the container may not be safe for foods.
“This is a fantastic idea! But I’d be so scared it’s not food safe plastic,” responded on TikTok user.
Another said: “Yes, but is it BPA free?”
Others, however, weren’t as concerned.
One more joked: “Ran to the comments for food safe warriors.”
Added another: “Not all of you caring if a container is BPA free but probably smoke, drink, swim in public pools and eat Macca’s.”
The $8 buy comes with a 150ml measuring cup lid. Credit: thesustainablelaundry/TikTok
The fund has stuck with Mawson and Iris in the belief they will recover. It was remarkable that Iris said this week it earned revenue of $21,823 for each bitcoin mined in July, and it cost $8836 to mine each bitcoin.
The fund has taken a point on decentralized finance with an investment in the DACM Global Digital Asset Fund run by former JP Morgan banker, Richard Galvin.
Also, the fund has invested in a start-up founded by Bryce Leske and Alec Renehan called Equity Mates, which specializes in podcasts for young investors. Its revenue rose 177 per cent in the year to June and its total audience increased 39 per cent compared to the previous year.
The trustees of the fund have benefited from the paid advice provided by Charlie Viola at Pitcher Partners. He recommended the strategy of increasing the proportion of unlisted assets in the fund.
This worked in 2022 because these assets were negatively correlated to markets. Selected assets and their returns were: Elara Village 5 per cent, Kingsmede Brisbane Industrial Trust 29.87 per cent, Stirling Northumberland St 14.61 per cent, Acure Northwest Plaza 7.58 per cent and JP Morgan Global Transport fund 6.23 per cent.
The fund will continue to add real assets to the portfolio to achieve greater diversification and higher income.
Domestic shares did reasonably well thanks to the performance of Macquarie Group, Transurban and Atlas Arteria. They generated an above market return and in one case it was because of good luck.
Atlas Arteria soared in June and ended the 2022 financial year with a share price gain of 30 per cent thanks to interest from IFM Investors, which has taken a 15 per cent stake. IFM indicated it might make a takeover offer, but walked away.
The inherent focus on growth in the fund has worked out well in the past six weeks. Rising share prices here and overseas have meant the fund has made up about two thirds of the losses in the last financial year.
Over the long term the fund has beaten its benchmark. Media Super’s balanced fund has returned 8.7 per cent a year over the past 10 years compared to the Chook Super Fund’s 9.89 per cent return per annum over the past 11 years.
A hefty suite of employee perks remain at trendy start-ups, despite some companies recently laying off significant numbers of staff.
Melbourne link-in-bio site, Linktree, has continued its lavish offerings despite this week laying off 17 per cent of its staff – about 50 people – the Sydney Morning Heraldreported.
Remaining employees have access to above market wages and a $6000 lifestyle payment they can use on fitness items including yoga classes or a new bike.
The planned shift into a trendy new office in Melbourne’s Collingwood will also go ahead, despite the company’s forecasted growth not eventuating.
“To meet the needs of our users throughout the last year, we scaled many of our functions, made some big bets and set ambitious hiring targets to meet them. I assumed the favorable economic environment would persist into 2022,” chief executive Alex Zaccaria wrote in a blog post this week.
“Instead, conditions changed faster than expected and those assumptions I made were wrong. I have many learnings to take into the next phase of building Linktree. That next phase involves narrowing our focus on our long-term strategy by reducing roles that are no longer aligned with our roadmap.”
In support of employees likely shocked at the lay-offs, the company gave all staff a mental health day on Friday.
“For a company like ours, so focused on culture and camaraderie, this will be difficult news. I don’t expect anyone to be their normal selves. We will also be allocating you an additional mental health day that you can take at a time that suits you,” Mr Zaccaria wrote.
Elsewhere, despite a round of lay-offs at Sydney blockchain start-up Immutable, it is offering staff a bonus of up to $16,000 if they refer a new employee.
Healthcare start-up Eucalyptus, which is behind the Software, Pilot and Juniper brands, made about 20 per cent of its workforce redundant last month but has upheld its free food and drinks offering.
Online graphic design company Canva, which had its value cut by about $20 million by investors, has also maintained its free meals and will still offer its annual Vibe & Thrive allowance that employees can claim for “whatever best supports their wellbeing”.
It can be spent on anything from health memberships to celebrations, wellbeing and education.
Industry sources who spoke to the Sydney Morning Herald anonymously said companies were saving money by offering employee perks rather than increases to their salaries.
“Free kombucha is way cheaper than paying an extra $40,000 in salary to someone who wants to work somewhere cool,” one told the publication.
While labor shortages still present a threat to the technology industry, supply has crept up on demand, largely due to talented people being let go from major companies, talent marketplace Expert360’s Bridget Loudon said.
“There are more talented engineers at the moment. This is largely driven by lay-offs in the tech sector from the majors to earlier-stage companies,” she told the publication.
Industries across Australia have resorted to offering thousands of dollars in incentives to secure staff, with people in high-demand areas such as healthcare, trades, transport, retail, manufacturing and logistics receiving thousands of dollars in cash bonuses.
They range from $1000 to $15,000 across the country, with one Grill’d franchise saying it was ready to pay prospective store managers $10,000 just to sign on.
McDonald’s Chatswood store manager Rhys Taylor told the Australian Financial Reviewthat incentives were advertised on in-store posters, with the fast-food chain losing staff quicker than they could be replaced at some stores.
Last month, the Australian Retailers Association announced that the post-pandemic worker shortage had worsened over autumn.
Tech billionaire Scott Farquhar and his wife, investment banker Kim Jackson are known for having a somewhat low-key approach to their discretionary property purchases – at least among Australia’s billionaire class.
That said, the couple’s principal property investment is the $71 million Elaine estate in Point Piper (a doer-upperer at that), so it’s all relative.
Scott Farquhar and Kim Jackson are known for their low-key discretionary property portfolio.Credit:
But as Gina Rinehart stakes her claim to Noosa, Andrew “Twiggy” Forrest to the late Olivia Newton-John’s Gaia Retreat in Byron Bay, and Mike Cannon-Brookes claims a good part of Palm Beach, the Southern Highlands and now Dunk Island, the Farquhar-Jackson family are doubling down on the Central Coast.
Records show the co-chief executive and co-founder of software giant Atlassian has set a record for Avoca Beach of $10.85 million, which in billionaire terms could be seen as a bargain, given it was discounted from an original guide of $13 million in February .
Local values have come a long way since Farquhar first bought into the market in 2010. At the time the then 30-year-old, who was living in a two-bedroom apartment in Pyrmont, bought an architect-designed house with five bedrooms on 556 square meters for $3.57 million.
The five-bedroom house sets a beachfront record for the Central Coast of $10.85 million.Credit:
Fast-forward to 2022 and the couple’s new digs – a kicked-football distance away – is another designer home with the same number of bedrooms and on the same land size, but for the marked-up price of 200 per cent more.
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Not that rising values are an issue. Farquhar ranked fourth of this year’s AFR Rich List 200worth an estimated $26.4 billion, and his wealth has only improved since: the share price in the Nasdaq-listed Atlassian has soared 56 per cent to $US279.35 in the six weeks since he exchanged on the beachfront digs.
They’re the slick orange-and-white cartons that have become a mainstay in Australian coffee culture. Championed by baristas, chosen by McDonald’s, Starbucks and Muffin Break, and beloved by lactose-avoiding consumers, Milklab’s plant-based products are a common sight in cafes across the nation.
But few coffee drinkers would know that Milklab’s manufacturer is at the center of one of the most spectacular corporate implosions in recent Australian history.
The future of cult favorite MILKLAB is in the hands of a Noumi shareholder vote on Tuesday.Credit:Janie Barrett/SMH
Milklab’s maker, an ASX-listed company once known as Freedom Foods, is still struggling to recover from revelations two years ago of significant accounting irregularities worth over half-a-billion dollars.
The irregularities, preceded by the sudden resignations of two top executives, forced the company into a nine-month trading halt. Two class action lawsuits and an investigation by the corporate regulator, ASIC, have followed.
Freedom Foods has changed its management team, secured support from a new cornerstone shareholder – the billionaire Perich family, one of western Sydney’s biggest landowners – and rebranded itself as Noumi (pronounced “new me”).
Despite this, the company behind a wide range of dairy and plant-based milk products and health supplements has failed to win back the trust of investors.
“Noumi was a ‘market darling’ as recently as a few years ago,” class action law firm Phi Finney McDonald associate Muhammad Arayne says. “The financial irregularity revelations made in mid to late 2020 genuinely shocked the market and caused the company to lose a substantial amount of trust from investors. The share price collapse … was catastrophic.”
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Noumi shares, currently hovering around 28 cents, are about 90 per cent below a September 2018 peak price of $5.30. With a market value of $78 million, Noumi is worth less than 5 per cent of a company once valued at nearly $2 billion.
Throughout this turmoil, Milklab has been one bright spot for the company, enjoying stratospheric growth and strong customer loyalty among baristas.
But now, even Noumi’s most prized brand, and the company’s future prospects, are hanging on a knife’s edge.
And this week, the company disclosed that a separate legal battle has been launched by French tea and coffee company Sunday Collab over rights to distribute Milklab in Europe.
Noumi had already been accused of fraud by its former supplier, Californian almond grower Blue Diamond, which sued Noumi for breaching a licensing agreement between the two parties relating to Milklab.
The pair of companies have reached a settlement of $US35 million ($49 million) – more than the embattled Noumi can afford. So to pay it all off, Noumi wants to sell its stake in a separate company – but this needs shareholder approval.
The future of Milklab rests in the hands of these shareholders, who will vote on whether to approve the stake’s sale at an extraordinary general meeting on Wednesday.
spilled milk
The first sign something was wrong at Freedom Foods came on Tuesday, June 23, 2020, when then chief financial officer Campbell Nicholas suddenly resigned.
Milklab has seen success amid the booming popularity in non-dairy milk drinks.Credit:TRIBUNE
The following morning, CEO Rory Macleod went on leave. Trading on the ASX was suspended, pending a further announcement, but not before shares dropped to a five-year low. An unusually high volume of 21.5 million shares traded hands (there have been no allegations of insider trading).
Then on Thursday of that week, the company released a statement to the ASX revealing that its estimated value of useless assets, $25 million, had blown out to $60 million. A review of inventory levels showed there was more out-of-date stock, some from canceled orders, than originally thought. Sixty-one staff positions were made redundant.
Almost simultaneously, the company held a conference call. With the CFO and CEO gone, the unenviable task of hosting it fell to then-chairman Perry Gunner.
The most pressing question from investors and stakeholders was: where did things go wrong? The outdated stock and canceled orders went as far back as 2017. Why wasn’t it picked up earlier?
The company had been shifting stock from five external warehouses into its own facility, the chairman explained that. They knew there was “some amount” of stock that needed to be reworked (for instance, turned into dry powder) but didn’t realize just how much there was.
Over the years, vast amounts of milk had been going off in warehouses, and either no one had noticed or no one had reported it.
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But getting rid of it was expensive. Simply put, there was so much milk that had gone off that it was cheaper to write it off than to rework it.
“The difficulty is the cost of getting that milk out of the packages and into a vat … to allow it to be processed, does not justify the protein or the value of the milk powder that you would obtain from doing it,” he said, according to transcripts of the investor call. “That’s why the … likely provision has been increased from $25 million to $60 million.”
Gunner was pressed by investors on why the company hadn’t identified issues of such a scale with its inventory during a regular stocktake, and whether the company suspected fraud.
His answers did little to defuse the investor unease.
The revelations seemed as starting to him as they were for everyone else.
“This has only come to the attention of the board today effectively,” said Gunner. “We’ve still got a lot of further investigation to undertake.”
Hitting rock bottom
The trading halt in late June 2020 that was only supposed to last for a fortnight was extended until October 30, and then again. By the time trading eventually summarized in March 2021, the company was nearly unrecognizable.
The wealthy Perich family – and Freedom Foods’ key backer, owning 52.5 per cent of company shares – stepped in to play a central role in the company’s reformation.
Michael Perich, then a director at his family’s Leppington Pastoral Company, was installed as chief executive in August 2020. Billionaire brothers Tony and Ron Perich were already serving as board directors. The family committed $126 million, through their investment vehicle Arrovest, to turn the company around after negotiations with a hedge fund fell through.
Noumi CEO Michael Perich.
But the worst was yet to come. In its 2020 full-year results released on November 30 of that year, Freedom Foods redid several years of accounting that laid bare the magnitude of just how badly the company had miscalculated.
The revision of the $25 million provisions to $60 million, which had been shocking enough, wasn’t even close: the real figure was $590 million. The $11.6 million in reported profits for the 2019 financial year swung to steep losses just shy of $146 million. Freedom Foods handed over documents to ASIC for an investigation that is still ongoing. No individuals have been identified as being under investigation.
The company had hit rock bottom. Having been installed as CEO, Michael Perich declared a transformation was under way at Freedom Foods. It would become a simpler business by identifying and selling off unprofitable divisions and reducing product lines.
Miklab’s growth
Among all of this, Milklab was an enduring beacon of good news, with sales growth of 73 per cent in 2020. The product is now sold in more than 20 countries and the company relies on the popularity of plant-based milk to drive revenue growth .
But the dispute with US almond supplier Blue Diamond that began over unpaid invoices continued to simmer away in the background. In September 2020, Blue Diamond sued Freedom Foods over its production of Milklab and other brands such as Australia’s Own, arguing it was fraud and a breach of their agreement.
A little more than a week after Freedom Foods unleashed its disastrous suite of restored figures, high-profile law firm Slater + Gordon filed a shareholder class action lawsuit. The second came in late February 2021 from Phi Finney McDonald funded by Omni Bridgeway.
The two class actions, which have been merged into one proceeding, allege that investors bought shares at inflated prices because the company overstated its financial position. The class action also seeks to prosecute Deloitte, arguing it shares some responsibility for signing off on numbers that turned out to be wildly inaccurate.
Barista Nando Lim from Bar Lume pours MILKLAB milk to make coffee. Most baristas don’t know about Noumi’s colorful corporate history.Credit:Janie Barrett/SMH
“Investors wanted to know how a company like Noumi allowed accounting irregularities of this magnitude to arise and why Deloitte, as its ‘big 4’ auditor, did not pick up on these issues,” Arayne told this masthead.
At the following annual general meeting in January 2021, Gunner (who was retiring as chairman) and Perich outlined a commitment to transform company culture. Their comments suggested the company’s failings may have been the result of rapid, unchecked growth and lack of accountability at senior levels of the company.
“I have worked with the board to instill and embed a culture within Freedom Foods where policies and procedures are applied uniformly, all employees are treated with respect and our workforce is united,” said Perich.
The company sold its cereals and snacks division, including the Messy Monkeys and Freedom brands in mid-December 2020. In November 2021,and with shareholders’ approval, it changed its name to Noumi.
What’s at stake? everything
Noumi declined to make Perich available for an interview, citing its media blackout period ahead of earnings results later this month.
The litigation woes have continued. On Thursday evening this week, Noumi disclosed that Sunday Collab is alleging it broke an agreement for the French company to distribute Milklab in Europe and is suing for around €17 million ($24.64 million) in what it says is lost profits. Noumi says the claims are “without merit” and “wholly unsupportable”, and will defend the action.
The future of iconic plant-based milk brand Milklab is in the hands of manufacturer Noumi’s shareholders.Credit:Christopher Pierce
With more than half-a-billion dollars in write-downs, two class actions, a countersuit and now a fresh legal battle to contend with, the outstanding $US18 million owed to Blue Diamond is weighing heavily on the business. The debt ($25.4 million) is equivalent to a third of the company’s total value.
Options are few. Shareholders are being asked to give their blessing for Noumi to sell its 9.4 per cent stake in Australian Fresh Milk Holdings (AFMH) for $28.6 million to the Perich family’s Leppington Pastoral Company.
Leppington already owns 37.9 per cent of AFMH.
Shareholders will most likely approve of the stake’s sale. But if they don’t, it won’t just be Milklab’s future in doubt.
“The company [will have to] explore other ways to satisfy its obligations under the $US18 million bank guarantee facility, including funding the payment obligations out of operating cash flow,” wrote Noumi chair Genevieve Gregor in a letter to shareholders.
“This would reduce the amount of the company’s available liquidity and may constrain the company’s ability to fund the transformation and growth initiatives previously outlined to shareholders.”
Noumi shareholders will agree to vote at the extraordinary general meeting on Wednesday 10am (AEST).
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.Sign up to get it every weekday morning.
Google has been fined $60 million for misleading Australian Android users about how it used their location data.
The internet giant was taken to court by the Australian Competition and Consumer Commission (ACCC) in 2019, who alleged that Android phone settings were misleading.
The ACCC accused Google of keeping the location data of some users even if they had “Location History” turned off.
Google has been fined $60 million for misleading Australian Android users about how it used their location data. (APA)
Another setting titled “Web & App Activity” also allowed location data to be shared with Google, the ACCC said.
“This significant penalty imposed by the court today sends a strong message to digital platforms and other businesses, large and small, that they must not mislead consumers about how their data is being collected and used,” ACCC chair Gina Cass-Gottlieb said.
“Companies need to be transparent about the types of data that they are collecting and how the data is collected and may be used, so that consumers can make informed decisions about who they share that data with,” Cass-Gottlieb said.
“This is the first public enforcement outcome arising out of the ACCC’s Digital Platforms Inquiry.”
The setting was enabled by default from 2017-2018 on phones running on the Android operating system.
Left: The Location History and Web & App Activity settings shown to consumers setting up a Google account on their Android mobile device between April 30, 2018 and December 19, 2018. Centre: The statement shown to consumers who used their Android mobile device to turn off (or “pause”) the Location History setting between early 2017 and late 2018. Right: A statement shown to consumers who used their Android mobile device to access the Web & App Activity setting between early 2017 and late 2018. (ACCC)
At least 1.3 million people may have viewed the settings page during this time.
A Google spokesperson confirmed the penalty, emphasizing that the issue was rectified before the court proceedings were initiated.
“We’ve invested heavily in making location information simple to manage and easy to understand with industry-first tools like auto-delete controls, while significantly minimizing the amount of data stored,” Google said.
“As we’ve demonstrated, we’re committed to making ongoing updates that give users control and transparency, while providing the most helpful products possible.”
Cadbury has just released a new Marvelous Celebrations Birthday Cake Block for $5.
The chocolate block contains a classic Cadbury dairy milk base with milk chocolate crammed with marshmallows, 100s and 1000s, and biscuit pieces.
Cadbury’s decadent new birthday cake chocolate is available in-stores and online at Woolworths.
Cadbury has just released a new Marvelous Celebrations Birthday Cake Block ($5) – which is available in-stores and online at Woolworths Supermarkets
Hundreds of foodies expressed their excitement on an announcement post, with many making immediate plans to purchase the chocolate.
‘This is perfect… it’s right in time for my birthday!’ said one excited man.
‘Looks delicious,’ added another. ‘But this is absolutely the wrong time to go on a diet.’
One of Australia’s favorite popcorn brands is releasing two new limited-edition flavors at Woolworths.
Cobs Natural Popcorn has just introduced ‘Tiramisu’ and ‘Parmesan & Cracked Pepper’ to their wide range of unique flavours.
The sweet and salty treats will be available in-stores and online in the coming weeks for $2.10.
Cobs Natural Popcorn has just introduced ‘Tiramisu’ and ‘Parmesan & Cracked Pepper’ to their wide range of unique flavors
The Tiramisu flavor is described to be extremely decadent with a combination of cream, coffee, and cocoa.
While the new Parmesan and Cracked Pepper is set to join several fan-favorites like the Cheddar Cheese Popcorn and the Cheesy Cheddar oven-baked puffs.
But Cobs is not the only Aussie favorite to release a new and exciting flavour.
The renowned flavor of Oak chocolate has put a twist on the classic Golden Gaytime and giving it a rich chocolate flavour.
The new treat has an indulgent Oak-inspired center dipped in a layer of chocolate and coated in the Golden Gaytime’s famous biscuit pieces.
Oak milk have teamed up with Golden Gaytime to release a new chocolate flavor of the classic Aussie ice cream which is available now in selected stores
Customers can pick up a box of four for $9.90 from IGA, Ritchie’s and Drakes & Romeos from today.
Coles, convenience stores and petrol stations will be stocking the new Oak Gaytime from September.
This isn’t the first time Golden Gaytime has been given a flavor twist with a Coco Pops, Birthday cake and Crunchy Nut variety also available now.
The decadent new treat has an indulgent Oak-inspired center sipped in a layer of chocolate and coated in the Golden Gaytime’s famous biscuit pieces
Golden Gaytime spokesperson Annie Lucchitti said the new ice cream is sure to be a ‘crowd pleaser’.
‘Golden Gaytime Oak brings the iconic elements of Golden Gaytime together with the unmistakable Oak Choc Milk flavor hit. It’s creamy, crumbly, choccy – delicious,’ she said.
The ice cream isn’t the first classic Australian treat to be given a unique twist.
A new Violet Crumble Espresso Martini has launched across Australia, leaving sweet-toothed cocktail fans delighted.
Feminaè Beverage Co. have teamed up with the classic Aussie chocolate to create a decadent boozy treat that is available to purchase now but only until stocks last.
Each box is $79.95 and contains two-liters of ready-to-drink martini as well as a 30g bar of Violet Crumble to be crushed and used as a garnish.
An Aussie cocktail company has teamed up with a classic chocolate to create a Violet Crumble Espresso Martini but foodies better be quick if they want to get a bottle for themselves
The Feminaè X Violet Crumble Espresso Martini is an indulgent blend of cold drip coffee, premium vodka and Australian cream.
The blend is infused with the chocolate, caramel and honeycomb flavors of the famous Violet Crumble.
Perfect as a party-starter or after dinner treat the luxuriously creamy cocktail can be enjoyed straight from the fridge into a martini glass or shaken in a cocktail shaker with ice with a sprinkle or Violet Crumble crumbs.
Feminaè Beverage Co. have teamed up with Violet Crumble to create a decadent boozy treat that is available to purchase for $79.95 now but only until stocks last
The two-litre box makes 24 standards drinks and is available to purchase online from the Feminaè website for a limited time with shipping starting from Monday August 1.
Foodies online have been tagging their friends and expressing their excitement at the unique new collaborative cocktail with one saying it could be their ‘new favourite’.
Feminaè is an Australian owned beverage company that makes unique cocktails from Melbourne including the popular cosmopolitan passionfruit and pavlova and pink grapefruit gin.
