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4 Corners report: Coles & Woolworths Vs Small Producers

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4 Corners report: Coles & Woolworths Vs Small Producers

Postby SOLE Mama on Sat Sep 20, 2008 3:13 pm

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.
Shipping is a terrible thing to do to vegetables. They probably get jet-lagged, just like people. ~Elizabeth Berry
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Re: 4 Corners report: Coles @ Woolworths Vs Small Producers

Postby grocer on Mon Sep 22, 2008 9:35 am

The thing I find perhaps most repugnant is the "mis-education" of the public from supply chain to preparing dinner and everything in between that these players and the FMCG giants perpetuate.

The laughable aCCC inquiry into supermarket retailing found coles and woolworths have a smaller market share than previously publicised (i.e. less than 80%) but also found that the segment with no competition were the independent grocery channels (LOL!!!) owing to the dearth of wholesale options in this country (metcash being the primary player, where, frequently, it's cheaper to buy from the supermarkets). There was no inquiry into why this might be the case.

More importantly tho, as many of you sole mama fadda sista and bruddas know, is that the vast majority of what the stupidmarkets sell is superfluous to good eating. Let's face it, the fresh food people aren't and getting better every day still falls short of the mark.

After having said all that though, I really don't think many people care. Most are focused on what is easiest, most convenient and best for them (even if the make a mal-informed decision in doing so), not to mention the blind eye our country now takes toward corporate social responsibility - since the Coward years Australia has the highest rate of private share investment. If you've got shares in the farce food people are you going to complain about how they go about things if their dividends are in your favour each year?

ho hum... :roll:
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Re: 4 Corners report: Coles @ Woolworths Vs Small Producers

Postby dixiebelle on Mon Sep 22, 2008 3:47 pm

Most are focused on what is easiest, most convenient and best for them (even if the make a mal-informed decision in doing so
After my DH watched this show, and my interest in SOLE food, we have discussed it a bit, and also came to the conclusion, that even if we are doing our utmost to make changes, to boycott the supermarkets mentioned (or any of them) and making sacrifices to eat SOLE food... so many people cannot afford to, do not think they can afford to, do not care or know, or simply do not want to, make any changes. For some, it is not as simple as "boycott these companies"...
Saving the planet one dinner plate at a time...
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Re: 4 Corners report: Coles @ Woolworths Vs Small Producers

Postby purple goddess on Tue Sep 23, 2008 10:01 am

so many people cannot afford to, do not think they can afford to, do not care or know, or simply do not want to, make any changes. For some, it is not as simple as "boycott these companies"...


I agree. Which is why sites like this exist. To show people that eating ethically, or locally or whatever SOLE means to YOU is not only possible, but in many cases cheaper and easier.

And we ARE making a difference... slowly and surely more and more consumers ARE thinking about the way they shop and who they shop with, and why.

I was chanel surfing last night, and one of the commercial channels had a segment on buying lamb online.. the main focus was that it was better and cheaper. And they PANNED Woolies and Slaveways! Basically they said that Woolworths and Coles failed heath checks more times than independent grocers.

I can't remember which programme it was, one of those Today Tonight Tomorrow in Sixty Minutes things that proliferates around 6.30-7ish, but if programmes like that are picking up on the message, then you can be assured that it's not from an ethical standpoint that they show it, but because the powers that be THINK THERE ARE RATINGS IN IT!

Which means that they think the Mum and Dad punters in the 'burbs are interested.

It's the same as the Notebook article. I am not dumb enough to think that they did the SOLE/localvore article out of a sense of community-mindedness. They did it because they thought SOLE might sell their mag!

It's happening.. right in front of us, and we're at the forefront of what will be (hopefully) a shopping revolution. Places like this, businesses like Grocers......

Personally, I do what I can, where I can, and for me.. spreading the word about this place, and others like it, is the "spearhead" of my message. I already live SOLE as much as possible, so whenever I am confronted with "But it's too expensive/hard/**insert excuse NOT to change here*, I refer people to this place.
There is no love sincerer than the love of food. ~George Bernard Shaw, "The Revolutionist's Handbook," Man and Superman
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Re: 4 Corners report: Coles @ Woolworths Vs Small Producers

Postby grocer on Tue Sep 23, 2008 11:58 am

well I can tell you first hand, people are creatures of habit and struggle to change even when (a) they compain about the incumbent service, (b) say you're business is perfect (c) don't have time to do the run around themselves, and (b) it's cost effective.
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Re: 4 Corners report: Coles & Woolworths Vs Small Producers

Postby stickyfingers on Wed Oct 01, 2008 5:27 pm

For me, one of the most upsetting things is, as I mentioned on a separate post on my blog called,

Bully Beef: David Vs Goliath:


With around $300million being spent by the big two supermarkets on advertising in the media, word is not getting out because the media - whether newspaper, radio or TV - won't bite the hand that feeds them ie. generates the majority of their revenue.
They won't tell the public what's really going on in case they are boycotted by Woolworths or Coles.



People will be complacent until they know the facts. The facts won't get out easily though because the Supermarkets influence what we hear about them.

And that's one of the reasons why SOLE Mama exists. To show people what can be done on a budget if you want to make a small effort to change things for the better. And that's why we need to spread the word and make this a place where more people can come to find cheap and easy ways to improve their lives for the sake of the planet and their children.


I think consumers would be outraged if they knew they were being cheated by Coles & Woolworths. And by this I mean that they are now being sold items that look and cost the same as they used to, but are actually inferior products, created so that the supermarket's profit margin can be lifted.

Even more sad is when members of the public realise that they're out of work because of the greed of these groups, or have lost their livlihoods to them by being complacent and not bothering to consider change.

I remain optimistic that with small steps we can help each other find a better way forward.
“The pleasure of eating is not in the costly flavor but in yourself.”
Horace (Ancient Roman Poet. 65 BC-8 BC)
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Re: 4 Corners report: Coles & Woolworths Vs Small Producers

Postby dixiebelle on Wed Oct 01, 2008 9:33 pm

To show people what can be done on a budget if you want to make a small effort to change things for the better.


I am ALL for that! Hence, my blog & involvement on Essential Baby (forum) in spreading the word!
Saving the planet one dinner plate at a time...
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