Chocolate prices set to rise
Two factors are contributing to a potential cocoa shortage and increase in the cost of chocolate over the next year. Firstly there has been a large increase in demand for cocoa products in Asia, with China for example tripling its chocolate imports in the last five years.
Secondly, Cocoa production will likely be disrupted by warm ocean weather from El Niño, lowering the cocoa yield in West Africa and creating a 100,000 tonnes cocoa deficit.
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Adidas expects suppliers to meet supply chain standards
In 2013, Adidas submitted a notice to its suppliers, which span over 14 countries. The sports brand cautioned them about major supply chain issues such as excessive working hours and worker safety from fires and chemicals. As a follow up to the warnings issued, Adidas revealed in its 2013 Sustainability Progress Report Fair Play that it had ended contracts with nine of its suppliers due to non-compliance with its standards of supply chain sustainability and transparency.
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Walmart branches out further into eCommerce
In both the UK and US, Wallmart is trialing a new eCommerce strategy that will allow customers to place orders on-line and pick up their goods shortly thereafter.
Currently being trialed just outside of Leeds, England, Walmart’s Asda stores are testing a version titled “click and collect”. The orders, once purchased online, are gathered by employees and left in temperature controlled lockers. These can then be collected by the customers by using their order number or scanning a bar code sent to them via email.
The US variant, being piloted initially in the Denver area, but has now spread to other locales, uses a similar method.
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