Milk

The so-called supermarket milk price war is not the only thing heating up. The debate surrounding the future of brand name products on our supermarket shelves is also heating up.

Central to both is the growing power of Coles and Woolworths. Together the supermarket giants operate 87 per cent of full line supermarkets over 2,000 square metres. As we know, they have spread their tentacles to petrol, liquor and banking services.

Like major armies on the march, Coles and Woolworths first establish a beachhead in a particular targeted sector of the economy and then spread out to take more and more territory in that sector until they are either stopped or they march their way to “victory.” Once victorious they can impose their “way” on those they deal with, including suppliers and even consumers.

Continue reading "The death of brands is much closer than you think" »

With Australia continuing to have some of the fastest growing food prices in the developed world, you have to wonder if Australian consumers are being milked by the major supermarket chains.

After all, Coles and Woolworths control over 87% of Australian supermarkets over 2,000 square metres. That clearly gives them plenty of market power which allows them to push up grocery prices and hence Australia’s food inflation.

Sometimes, however, they keep us guessing about their real agenda. So while we are hearing a lot about fresh milk prices coming down, we don’t hear much about what’s happening with other prices being charged elsewhere in the supermarket or at petrol bowsers linked to Coles or Woolworths.

Continue reading "Don’t be fooled, the supermarkets are milking us" »