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Supermarket bosses have dodged questions about why a packet of Tim Tams is more expensive in an Australian grocery store than in London.
Liberal Senator Jane Hume was questioned on Friday by Coles and Woolworths senior executives about why a pack of chocolate chip cookies cost $6 in Australia and about $4.86 at Tescos, a popular supermarket chain in Australia. United Kingdom.
Senator Hume noted that it was “strange” for a “product made in the West.” Sydney would cost more in a supermarket in the Australian city than in a store in London, despite the 'litany' about shipping costs and import taxes.
Woolworths commercial director Paul Harker told a Senate inquiry into the cost of living that it was “probably a great question for Arnott”.
He said Woolworths adopted Arnott's “recommended retail price” and could not speak to negotiations the biscuit giant had with other markets.
“I don’t know what arrangements they do or don’t make to sell this product in the U.K. market and what margins they expect to make on this product in that market,” Harker said Friday.
'In this market, we negotiate the best possible standard cost every day with Arnott's… and then we put all our efforts into negotiating promotions on those products for consumers.'
Coles head of public relations Adam Fitzgibbons said it should not be assumed that Arnott's sold its products at the same cost to Australian retailers as it did to international grocers.
A pack of Arnott's original Tim Tam will set Australians back $6 if purchased from Coles or Woolworths (pictured at Woolworths online store)
However, overseas at major supermarket chain Tesco, shoppers can purchase the same product for £2.50 ($4.83 AUD) (pictured in Tesco's online store)
“This is not something that Coles would have visibility into, but I think it is certainly an issue that would be better directed to Arnott,” he said.
'We don't have visibility, as we said, into their commercials, what they sold at Tescos or promotional deals with them, but those are the kinds of factors that would impact the retail price.'
Taking aim at Coles, Senator Hume also noted that the chain had Tim Tams with a promotional price of $4.50 and asked Mr Fitzgibbons if the biscuits were being sold as a loss leader, where an item is sold at a lower price to encourage customers to buy other products.
Fitzgibbons said although promotional prices had been negotiated with suppliers, he declined to add further details due to legal action with the Australian Competition and Consumer Commission (ACCC).
The watchdog is taking both Woolworths and Coles to court for allegedly misleading consumers by temporarily increasing prices by at least 15% before slapping them with promotional discount stickers at higher prices than before the increase.
The ACCC claims Woolworths did this for 266 products in its Prices Dropped promotion over 20 months, while it claims Coles did this for 245 products in its Down Down promotion over 15 months.
Supermarket bosses have dodged questions about why a packet of Tim Tams is more expensive in an Australian grocery store than in London (stock image)
In September, Arnott defended the cost of his 200g pack of Tim Tams after customers complained about the high price.
The company said it was facing significant input costs, including the “increased price of cocoa.”
During the investigation, the supermarket giants also gave evidence that the food industry was “very competitive”, despite the ACCC indicating that the Australian market was an “oligopoly” with dominant players Coles and Woolworth. maintaining price control.
Greens senator Nick McKim asked why views between the ACCC and supermarkets were so “diametrically opposed”.
Fitzgibbons said that although there are a “limited number of supermarket chains”, a “high level of concentration does not equal a low level of competition”.
Harker said the report noted that consumers are “cross-shopping more than ever.”
“I accept the fact that we are a concentrated supermarket sector and this is not decisive for the lack of competition”, he stated.
