Posted November 15, 2018 12:38:01 The supermarket chain CVS is set to start selling canned fruit on shelves in Australia this week, as it seeks to expand its canned fruit business in Australia.
The move comes after the supermarket chain was forced to shut down its Australian branch in October.
The CVS decision follows a report from The Australian Financial Report that found the company was not adequately supporting its canned fruits.
In the report, the supermarket group also warned consumers that their fruit would be “not edible”.
“We recognise the challenges in our current supply chain and the fact that our customers are more than willing to pay a premium for the convenience of having fresh, fresh produce,” CVS spokeswoman Laura D’Alia said.
“However, the CVS Australia team is working to identify and deliver fresh, seasonal, nutritious products in the future, and will continue to deliver our most nutritious and high-quality canned fruit products to our customers.”
In the first week of November, CVS will begin selling canned fruits in the supermarkets of Melbourne, Sydney and Brisbane, and in stores of supermarkets in Melbourne and Sydney.
The first two stores will open in the city of Melbourne in the coming weeks, with stores in Brisbane expected to open by mid-November.
CVS said it was working with its canned food suppliers to ensure its canned foods were not mislabelled as fresh fruit.
It said that in the first six months of the year it had been involved in approximately 400 legal disputes relating to its canned fresh fruit business.
“We believe our canned fruit sourcing has been in good stead over the past year, and we continue to focus on our future products,” Ms D’Alia said.
Cuts the company’s Australian sales from $1.1 billion in 2017 to $1 billion this year.
The supermarket giant has faced criticism for its canned products and the quality of its canned and fresh fruit supply, particularly in Queensland, where the company has a major stake.
In 2016, Cvs lost about $1 million on the Canned Fruit market in Queensland and Victoria, according to the Australian Competition and Consumer Commission.
The report from the ABC also found that the company failed to meet standards of customer service and was unable to guarantee its canned product would not spoil.
The company also said that the quality and quantity of its fresh fruit and vegetables was not the best in the country, with the company citing “limited availability and high prices”.
“Our canned fruit supply chain is under significant financial strain, and it’s been a tough year for us,” Ms Cunanan said.
Ms Cunsan said the supermarket chains plans to open the first two new stores in Queensland next week, with more stores expected to be opened in Melbourne.
“The Australian retail sector is still in the early stages of its transformation, and CVS needs to invest more in its supply chain to meet the changing needs of customers,” she said.