Sanitarium cuts weet-bix supply to the warehouse.

Forums › Off topic › Sanitarium cuts weet-bix supply to the warehouse.

rugrat

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#309210 29-Sep-2023 00:52

https://www.1news.co.nz/2023/09/28/sanitarium-cuts-off-its-weet-bix-supply-to-the-warehouse/

Absolutely disgusting. They can’t supply full amount so they cut off the place selling it the cheapest, and keep supplying the rip off supermarkets.

Article says the commerce commission is involved.

What will be next, the $3 2 litre milk at The Warehouse which the same brand is selling around $4 at the Supermarkets?

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#3136176 29-Sep-2023 01:05

IMO the new grocery commissioner is going to have to stomp down hard on this if he wants the public to have any confidence in him, and this new role. The fact is if there was actually a supply shortage, then surely the fair thing to do,(and to be fair to consumers so they are not disadvantaged by paying more), would be to restrict supply to all retailers. So supermarkets would then have a buy limit, which is what they have been doing throughout the pandemic. Not cut off the one retailer that was selling the product cheaper. Especially during a cost of living crisis where Kiwi families are hurting with the price hikes on food.

I support the warehouse for at least bringing a little competition into the market. But the Government should have done far more than just appoint a grocery commissioner, as NZers have been overpaying supermarkets for many years. Both main parties are as bad as one another when it came to this.

A little surprised Consumer NZs websites is silent on this issue, as I would have thought they would come out quickly with a statement.

Handle9

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#3136177 29-Sep-2023 01:32

mattwnz: But the Government should have done far more than just appoint a grocery commissioner.

What exactly did you want them to do?

panther2

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#3136191 29-Sep-2023 06:22

About time they had to pay tax and get slammed by the cc

Goosey

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#3136192 29-Sep-2023 06:23

There probably more to this than what you see in media.

An educated guess is that I reckon the supplier of the said brand has had enough of the retailers demands, requirement and behaviour.

everyone knows you don’t get a bargain when supplying the warehouse……sooo many demands and you are pretty much bleeding cash and profit trying to sell and service to them on their terms.

(no I don’t supply the warehouse but have a solid understanding of the FMCG industry)

SirHumphreyAppleby

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#3136199 29-Sep-2023 06:58

Absolutely disgusting, Weet-Bix I mean.

Goosey:

There probably more to this than what you see in media.

An educated guess is that I reckon the supplier of the said brand has had enough of the retailers demands, requirement and behaviour.

I agree. There is definitely more to this and due to confidentiality agreements, we may never know why The Warehouse supply is the one being restricted.

One possibility is simply that there is more flexibility in their agreement. If, for example, The Warehouse agreement has no guarantee of supply and typically buys excess stock, it's entirely appropriate to cut off or restrict their supply in favour of other supermarkets that do.

I'm not a supporter of either company, but crying to the media about a contractual issue reflects poorly on The Warehouse IMO, regardless of who is actually at fault here.

MikeB4

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#3136205 29-Sep-2023 07:25

Handle9:
mattwnz: But the Government should have done far more than just appoint a grocery commissioner.

What exactly did you want them to do?

Start imposing heavy penalties to discourage the obvious anti competition behaviour. Not bus ticket sanctions but significant financial penalties.

freitasm

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Geekzone

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#3136208 29-Sep-2023 07:54

Regardless I still think Sanitarium should be tax.

Geekzone pays more tax than some of these companies.

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throbb

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#3136225 29-Sep-2023 08:23

Goosey:

There probably more to this than what you see in media.

An educated guess is that I reckon the supplier of the said brand has had enough of the retailers demands, requirement and behaviour.

everyone knows you don’t get a bargain when supplying the warehouse……sooo many demands and you are pretty much bleeding cash and profit trying to sell and service to them on their terms.

(no I don’t supply the warehouse but have a solid understanding of the FMCG industry)

You think The Warehouse has more demands or influence on grocery suppliers that the big 2? They area an absolute minnow and would be begging for the scraps let over from the other 2.

old3eyes

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#3136226 29-Sep-2023 08:24

I don't buy Sanitarium products because of the lack of tax they pay. Prefer Vitabrits than Wheatbix.

Regards,

Old3eyes

MikeB4

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#3136229 29-Sep-2023 08:30

freitasm: Regardless I still think Sanitarium should be tax.

Geekzone pays more tax than some of these companies.

Absolutely.

SATTV

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#3136230 29-Sep-2023 08:39

old3eyes: I don't buy Sanitarium products because of the lack of tax they pay.

Me too, except for Marmite, I have not found a suitable replacement.

John

I know enough to be dangerous

alasta

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#3136231 29-Sep-2023 08:40

What do you expect from a company that not only avoids tax, but also plagiarises well known British brand names, and then sues anyone who tries to import the authentic item?

The Warehouse should take a moral stand and refuse to stock their products.

MikeB4

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#3136282 29-Sep-2023 09:01

SATTV:
old3eyes: I don't buy Sanitarium products because of the lack of tax they pay.

Me too, except for Marmite, I have not found a suitable replacement.

John

Marmite is the devil's food or at least his/her axle grease

Bung

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#3136285 29-Sep-2023 09:03

alasta:
What do you expect from a company that not only avoids tax, but also plagiarises well known British brand names, and then sues anyone who tries to import the authentic item?

The Warehouse should take a moral stand and refuse to stock their products.

There may be other products but the UK Weetabix was developed after Weetbix by the same Principals, Osborne & Macfarlane.

The Warehouse taking a moral stand could backfire on them.

tripp

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#3136287 29-Sep-2023 09:09

freitasm: Regardless I still think Sanitarium should be tax.

Geekzone pays more tax than some of these companies.

I think the local paper delivery person pays more in tax than Sanitarium.

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