whats happening?, page-8

Is it a trend?

0258 GMT [Dow Jones] Competition from plastic pallet providers in the U.S. continues to dog Brambles (BXB.AU), down 15 cents or 2.6% at A$5.64, with major U.S. food producer General Mills (GIS) rolling out CHEP rival iGPS pallets across its production and distribution network from June following a positive pilot test in Texas since December. Credit Suisse says while little detail of iGIS rollout provided, it provides "further support for our thesis that customers are increasingly looking to move to dual sourcing for pooled pallets," following CHEP loss of PepsiCo Inc. (PEP) contract last month, and CS "understands" Kraft Foods Inc. (KFT), which it states is one of CHEP's 3 biggest U.S. customers also considering rival pallet offerings from iGPS or PECO, highlighting need for CHEP to "conclude its review...and articulate a strategy" to stem customer losses. (WEL)