BATTLE OF THE BRANDS
As news emerges that Coles and Woolworths have lodged hundreds of trademark applications for new home brand goods, the wise words of our Hoopla community have never seemed more timely.
When The Hoopla asked its first ever Highwire question – How ethical is your food basket - the Woolworths/Coles duopoly emerged as a major concern.
Author Mary Moody said it was difficult for any Australian consumer to have an ethical shopping basket “as long as the two major supermarkets continue to have such a monopoly on our spending dollar”.
And our shopping choices seem destined to be squeezed even further, reports The Sydney Morning Herald, with the supermarkets lodging applications for goods ranging from organic food, hardware, baby products, liquor, bed linen and cosmetics.
It’s a strategy that will put even more pressure on brand owners and manufacturers.
The global food manufacturer Heinz has already criticised the supermarkets for their growing dominance of home brands and heavy discounting, calling Australia the ”worst market” and an ”inhospitable environment” for suppliers, says the Herald.
It’s a scenario Mary (left) has witnessed first hand:
“Living near a country town (Bathurst) it’s sad to see so many small locally owned businesses going down the drain while the huge supermarkets continue to thrive and expand,” she said.
“There were eight butcher shops when we moved here 10 years ago and now there are only two.
“And they are struggling. I am sure it’s the same everywhere. I say bring back the greengrocer and fishmonger and encourage more farmer’s markets.”
It is a concern echoed by former politician and Director of Social Business at the Centre for Social Impact at NSW University, Cheryl Kernot, a committed purchaser of Fair Trade products.
She gets around the issue of the supermarket duopoly in fresh fruit and vegetables by buying from Food Connect Sydney, “the offspring of the original Food Connect in Brisbane – whose vision is to be a leader in making ethically grown food from local farmers accessible to any household in Sydney”.
| Page 1 of 2 | next >> |
4 Responses to this article
-
Paulline November 23, 2011
My husband’s family was in a liquor store for years and very successful. Then the major supermarkets moved in and the independents had no chance. I worked for a brewer at the time they sold the shop and I know they weren’t getting the same prices that were offered to the big buyers. It made it very hard to stay in business because even customer loyalty will not survive cheaper prices elsewhere. In some instances the large sellers were selling beer cheaper than the independents could buy it.
What is inevitable is that once the local greengrocer/butcher/liquor store closes down and there is only a Coles or Woolworths to shop at, the prices will certainly go up. The same thing has happened with the petrol stations.
-
cath November 23, 2011
have you noticed lately that both these supermarkets have cut their organic produce down-especially meat- their excuse-is just too expensive! Rubbish-they just don’t want to pay the extra for what food ‘really’ costs as their profit margins are lower with organic-so they have squeezed major meat suppliers so low – the farmers are now supplying Korea and Japan-as they know the value of food! the reason why we dont-probably as we have never had such issues as radiation poisoning and mass food poisoning in Japan or other countries. I live in the hinterland between Byron and Lismore: you cant get toilet paper at the farmers market so
I have to go to the duopolies-but as I go in I see them unpacking fresh flowers from MELBOURNE! So much for supporting the local people-Greedy bastards wont take delivery from here-too expensive for the consumer they say-something should be done! -
cath November 24, 2011
ok since the comments on this subject are few, I feel I should also note that when Coles came to ‘renegotiate’ their prices for cattle with a dear close friend-who because of his volume of sales virtually controlled the organic beef -their price was so low (below cost of production) that he said he would have to sell elsewhere-of course their usual tactic is to squeeze you out of the market so you can’t survive without them-but my friend decided not to yield and sold the lot to South Korea. Coles now have ‘hormone/chemical free’ beef-as they no longer have supply of organic.But think about it- who certifies that its hormone free?! there is no certifying body or judge for that-its a con as they can’t prove or disprove it. I just have to shake my head……..why do people believe them? and look what they are doing to a farmer who is just trying to do the right thing! shame
