Own Woolworths (ASX:WOW) shares? Here’s why the supermarket is hitting headlines

Here’s why the supermarket has stopped taking products from a supplier.

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Supermarket worker looks upset.

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Key points

  • Woolworths has reportedly suspended supply from Teys Australia’s South Australian facility
  • The supermarket’s decision reportedly comes after the meatworks asked COVID-19 positive employees to return to work
  • Teys Australia states the request is in line with SA Health guidelines

Owners of Woolworths Group Ltd (ASX: WOW) shares might have noticed that the company is in the news today.

The headlines come as the supermarket reportedly stops selling some products from major supplier Teys Australia.

As of Monday’s close, the Woolworths share price is $35.45.

Why are Woolworths and supplier, Teys Australia, making news?

Woolworths shares are likely front of mind this morning. The supermarket giant has been splashed across headlines claiming its barred supply from Teys Australia’s South Australian meatworks.

According to reporting by the ABC, the decision came after the meatworks asked workers who are testing positive to COVID-19 to return to work, as long as they’ve isolated for 7 days prior.

Teys Australia said the move is in line with and endorsed by, SA Health.

All COVID-19 positive employees returning to work must be asymptomatic and will be working separately from other workers. In a statement, Teys Australia commented:

[W]e are specifically instructing our workers not to present for work if they feel unwell or they do not meet the strict requirements of the relevant State health authorities.

The decision follows a recent outbreak that reportedly saw 140 of the meatworks’ employees testing positive for the virus. According to Teys Australia, there have been no new cases at the site since last Monday.

The ABC quoted a Woolworths spokesperson as saying:

We have suspended all supply through Tey’s South Australian facility while we work with Teys, SA Health, and Safework SA to understand the protocols currently in place for their team and operations…

We expect all of our suppliers to adhere to the COVID safety protocols set by their relevant state authorities.

The news is unlikely to move the Woolworths share price today. The supermarket’s stock has slipped 7% year to date.

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