Tea Industry
A top executive has been sacked as Australian police uncover alleged kickback scam at Woolworths.
Woolworth executive, Bill Harvey, was held by police at the company’s headquarters last month amid an investigation into a “promotional surcharges” scheme which involved 15-20% surcharges being paid by tea and coffee wholesalers to Mr Harvey in order to guarantee that their products were stocked at the retail giant.
On an annual salary of $150,000, Mr Harvey was employed by Woolworths as buyer of coffee, tea, sugar, soup and milk produce. He has since been replaced at the company as police investigations now encompass retailers and wholesalers over three states.
Police in Victoria, New South Wales, have already seized $50,000 in cash which has been linked to coffee and tea suppliers which are alleged to have paid to get their products onto the shelves of the company’s 700 stores throughout Australia.
A strike over pay, last week, saw African tea prices fall as shipments were disrupted by workers picketing warehouses.
Workers from tea warehouses in Mombasa staged a strike which lasted for four days, effectively shutting down the tea distribution network in Mombasa – the port city which plays host to one of the world’s largest auctions of tea.
The effects of the strike are believed to hit hardest later next week as the Kenyan tea trade braces itself as delays in delivery are expected to have a negative impact on auction prices.
The strike was initiated after workers in some tea warehouses were paid below the minimum recommended wage. George Nesbitt, the director of Tea Warehouses Ltd, told reporters that ‘companies were affected because there was picketing even at the places where they were paying the agreed rate.’
Kenya Tea Packers (KETEPA), the country's largest tea blending and packaging company, has announced an aggressive growth strategy which includes a dynamic move into new product categories.
As part of its growth strategy, KETEPA is gearing up to introduce a new range of liquid beverages for health-conscious consumers.
As part of the strategy, the firm has introduced a new bottled water brand known as Maisha that aims to tap into surging demand for bottled water.
The Managing Director of Ketepa, Tim Chege, said the firm is sharpening its focus on innovative products to address new emerging opportunities arising from changes in lifestyles.