Did you know that Coles and Woolworths control up to 80% of our retail food and beverage market?
That's a huge monopoly and unique to Australia. Quite frankly it's wrong - not only because it is not a fair and level playing field, but also because local farmers and manufacturers are being screwed over in order to get their product to market. With such a big market monopoly it leaves many suppliers with no other avenue to sell their fare and some are now shutting down as a consequence.
On our blog I've posted about the recent Four Corners show aired on the ABC which discusses the relationship between small producers and the two big major supermarket chains. It stirred and upset our household so much that I think it should somehow get to a wider audience.
It didn't receive much media attention because the media is pretty much focussed on not jeopardising their advertising revenue. And these two big groups spend a great deal of money on advertising in the papers and on TV.
The report revealed that in the hunt for higher profit margins, the Supermarket Chains and their liquor offshoots pay local producers - whether farmers, wineries or sausage makers - up to ten times less than what they charge to the consumer. They are sending suppliers and small business people to the wall or in some instances forcing them to lower the quality of their products to meet the extremely low wholesale price they demand.
Coles & Woolworths Groups then charge the suppliers all sorts of hefty fees for the pleasure of selling to them. In order for these suppliers to make ends meet they then have fill the gap to charge the smaller, family run stores and wholesale markets significantly more. I have a friend who went broke when the Coles Group refused to even cover the cost of producing the product after ordering it enmasse for their stores. They then had a ton of stock and no way of selling it nor a way of paying the money they owed for the production.
I feel that it's disgusting that we are being held in the stranglehold of these big corporates.
In our home we are now boycotting Coles, Woolworths and all their offshoots:
Shell & Caltex
Bunnings & BBC Hardware
Pick n Pay, Bi Lo, Coles Express, Flemings, Food For Less & Thomas Dux
Big W, Target & KMart
Dan Murphy, 1st Choice Liquor, BWS, Vintage Cellars & Liquorland
Dick Smith, Tandy, Office Works & Harris Technology
ALH (Hotels and Poker Machines)
You can find the ABC's description of the situation, transcripts, and a link to a video of the show at SOLE Mama website or here.The blog post discusses how I avoid buying from these stores.
PLEASE SPREAD THE WORD.
