transport and logistics logo
HOME ABOUT CONTACT ADVERTISE THE INTERMEDIA GROUP FIND PROFESSIONAL SERVICES

Free ENews

EVENTS
DIESEL MAGAZINE ARTICLES
EDUCATION, CAREERS & PEOPLE
DATA CAPTURE, RFID & IT
ENVIRONMENT
GOVERNMENT & REGULATIONS
HOT PRODUCTS
MHD MAGAZINE ARTICLES
MATERIALS HANDLING
PROPERTIES FOR SALE & LEASE
PROPERTY NEWS
SUPPLY CHAIN MANAGEMENT
TRANSPORT & LOGISTICS SERVICES
TRUCK & TRAILER EQUIPMENT
WAREHOUSE/DC EQUIPMENT
INDUSTRY GROUPS
NEW / USED TRUCK & TRAILER
FREE E-NEWS
ADVERTISE
ARCHIVE SEARCH
Advanced Search

 

Minister slams Coles, Woolworths for abuse of market power


Allegations of abuse of market power by two of Australia’s biggest supermarkets are cause for deep concern, Innovation Minister Senator Kim Carr said.
 
It is a concern that should be shared by everyone who cares about manufacturing jobs or consumer choice, Senator Carr told a meeting of more than 100 food and grocery stakeholders in Canberra.
 
“On the basis of the claims put to me, by reputable firms, there is serious cause for concern about an abuse of market power,” he said.
 
“I have given this information to the independent regulator, the ACCC.
 
“Everyone has seen their favourite Australian brands disappearing from supermarket shelves. The food industry is reluctant to speak out, and with good reason.
 
“For most food manufacturers, their main access to customers is through the supermarket chains. They control up to 80 per cent of retail food and grocery sales in this country. In practical terms, you deal with Coles and Woolworths, or you go out of business.
 
“I have received complaints that retailers are exploiting that position by:
  • Auctioning off shelf-space with a view to excluding competitors.
  • Extracting concessions in contract negotiations by denying access to shelves.
  • Arbitrarily deducting costs for stock handling services – even if the services aren’t required.
  • Forcing manufacturers to pay freight charges between supermarket warehouses and stores.
  • Arbitrarily rescinding contracts with suppliers mid-term.
“Through their home brands, the supermarkets compete directly with suppliers. Coles and Woolworths have significant market power.
 
“Some suppliers claim they must divulge their product plans 12 months in advance and supermarkets use this information to further weaken the competitiveness of brand name products,” Senator Carr said.
 
“Individual suppliers should not have to bear the pressure by themselves. Such a practice has the potential to cripple innovation, destroy jobs, and erode our capabilities as a food producing nation.
 
The global food manufacturer HJ Heinz was quoted in The Age on November 1, “criticising the market power of Coles and Woolworths for fostering an ‘inhospitable environment’ for suppliers as they stripped out brands and stocked their shelves with private-label products”.
 
“I am not the judge and jury on these matters. That is why I have given this information to the independent regulator,” the minister said.

881

  HOT PRODUCTS

 

Colby Drive-In Pallet Racking

Low cost and versatile high-density storage  more»

 

UNE Partnership

When you enrol in any full qualification between 1st May and 30th June 2012 you will receive 10% off the advertised course fee (valued between $180 and $470).  more»

 

The World's Most Important Gathering of Supply Chain Leaders

How do you and your team maintain supply chain prowess in the face of today's challenges? Attend Gartner Supply Chain Executive Conference 23-24 July 2012 in Sydney. Get actionable advice for every executive on the supply chain leadership team.  more»

 

Dexion RDS, Controlling Every Aspect of Your Warehouse Operations

RDS bridges the gap between your current systems' capability and how you envisage your distribution centre's operating potential.  more»

 

TOSHIBA TEC Launches Five New Industrial Barcode Label Printers with a Punchy Pr

Toshiba TEC challenges the conventional thinking of the industry with top of the range barcode label printers at must-buy price point.  more»

 

Exceptional Melbourne Based T&D Business For Sale

"Call for expression of interest" by 31 May 2012  more»

 

Save on Fees, Manage Your Freight

Freight Management Software introduces our latest innovation - FMS Dispatcher  more»

 

Dexion Speedlock Pallet Racking

Dexion Speedlock offers a leap forward in racking component design.  more»

Click here to view more Hot Products

Looking for a particular product?   Advanced Search.

  T&L PUBLICATIONS

MHD Supply Chain Solutions
Has been the industry leader for more than 30 years. It is the reference guide for professionals striving for effective end-to-end supply chain management...

Diesel
A bi-monthly magazine that has shaken up the Australian road transport magazine sector with sharp news stories and bold feature articles on the diverse character of the Australian trucking market...
 

 
VISIT INTERMEDIA SITES
 


 
 
The Intermedia Group (TIG) is a leading Australian B2B publishing, event management and technology business providing the most comprehensive and targeted B2B advertising network in Australia.

TIG's brands are a leading source of vital information for Australian and New Zealand businesses within the following 12 vertical markets: Beauty, Construction, Electronics, Entertainment, Government, Health, Homewares, Hospitality, Interior Design, Logistics, Motoring, Procurement, Retail, Recreation and Technology
Intermedia Websites
© The Intermedia Group. www.intermedia.com.au Privacy & Copyright