i voted yes, but…… who what and how much springs to mind. but would have a great retail space and support if it could be pulled off
0 likes
SHAUN S
i voted no , 3 newsagents in town all close by , one already sells Darrell lea so he should have first crack at it . I do not see much sence in over loading on every product .
1 likes
Luke
It could be worth GNS looking at this as an investment for shareholders (newsagents) and then newsagents looking at cost of bulk fixtures through a buying group. GNS has the warchest as we all pay a levy. Good warehousing facilities would mean better access to stock. Just a thought.
4 likes
eric
i am not darell lea supporter
0 likes
Brendan
If product was available to ALL newsagents or those willing/capable of investing or as Luke suggested through GNS and NOT available to the majors this could be a good opportunity.
2 likes
SHAUN S
it is already in newsagents and has been for many many years and by the looks of it it did not work out what makes everyone think it would now ?
2 likes
Megan
Several members of my family are keen consumers of specific Darrell Lea products and are very troubled at the prospect that they may not be able to buy them in the future. That said, I think they would be concerned to lose the specialist shops and have to buy the products from a newsagency. In DL’s own shops, you get the sense that there’s great pride in quality and freshness. That will not necessarily be true in all newsagencies. Some, for sure, but not all. There won’t be the same commitment and passion for the product – that’s why I voted no.
1 likes
Angelo
I have no problem with the product and sell heaps of it and sure, I wish the margin was higher but there’s no doubt it’s a great seller for calendar occasions particularly Easter. The problem perhaps may lie in the fact that that aside from messing with some things like the liquorice and the places it is sold is the fact that a lot of it is still made using older more labour intensive production techniques.
On the point of GNS or somebody else wanting to absorb this into their business one really needs to take a peek inside the Ingleburn distributino centre. It’s massive and reminds me of that scene at the end of Raiders of the Lost Ark when the Ark is placed in the biggest wharehouse you have ever seen and stretches as far as the eye can see and just as high. This is one huge operation that in my view will likely appeal to a Nestle or Cadbury etc.
It’s a shame as so much of the goodwill of this brand lies in its proud Australian history. I hope it sorts out well for all and in particular the huge and loyal consumber base.
0 likes
Lance
From my reading of the events leading to the end result, the troubles came from poor management, not poor product or support of that product.
Perhaps a new and enlivened setup could put DL back on the rails to profitability and if it was saved from the likes of Nestles and Cadbury that would be a bonus not only for the buyers, but also for Australian product and marketing.
They have a strong name despite the way it’s gone over the last few years and I feel they deserve to be assisted if it’s at all possible.
I’m not a newsagent but yep, I’d support it in a newsagency type ownership.
Many have done well from it by all accounts, perhaps it’s time to give something back in a way that we could all benefit.
Where do I sign ?
0 likes
Jarryd Moore
If there was opportunity to invigorate the business, GNS is most definitely not the vessel through which newsagents should approach it.
While a strong and steadfast institution, GNS is no driving force of change or beacon of innovative thinking.
Thinking about the possibility of such a purchase should be done in the context of the business operating as a standalone operation. Going in with the view of using the purchase to turn the newsagency channel into a DL mass-distribution network is a recipe for disaster. I’m confident that the DL product wouldn’t be the best fit for our store, but that doesn’t mean we wouldn’t invest in the business opportunity if the figures and vision was there.
4 likes
JONO
Mr Robinson from Darrell Lea said difficulties faced by the company, which employs about 700 across its Sydney-based manufacturing facility and its 69 retail stores, appeared to be triggered by a combination of rising costs and declining sales. Cost is 5% shopping center rate, labour cost, and union keep pushing.
Darrell Lea lost its way a few years ago and this is why they are in administration today. Whereas they were a tightly managed premium confectionary brand, today they have been chasing mass, have played with product recipes and altered packaging. The result is soft focus and this has caused sales to decline and retailer engagement to be challenged.
While I am no expert on their internal finances, I suspect their situation was avoidable.
Jono – we all know centres are expensive. Those of us in centres need to run our businesses to step up to this challenge.
2 likes
June
Our local Coles has the product range
that is DL’s and they have it in a “no brand
packaging”. They use unbranded paper
bags for licorice etc so it doesn’t take much to work out why DL’s are struggling.
Once again, the duopoly targets these businesses and wipes them off the face of
the earth.
Why they have been allowed to become so
powerful at the expense of small business
astounds me
a
5 likes
Luke
June, the problem is that suppliers get conned into supplying the big 2 on the promise of huge sales increases but then soon find out that the only people making money from coles/woolies is coles and woolies as they suck the life out of every link in the supply chain to grow their own profits. Look at first fleet and even coca cola had to back down to them.
3 likes
June
Luke, I don’t understand how the govt.
can sit back and watch the duopoly be
more and more aggressive and yet they
don’t set “limits” like they do in the UK.
I think the larger corporations are only
allowed to have 60% of the marketplace
leaving 40% for competition to thrive.
Here Coles/Woolies already have 80% (it could be a little more) and they are still
actively growing that share with no boundaries apparently.
We SME’s know it and the powers in Canberra still ignore it.
5 likes
Jarryd Moore
It is probably worth noting that in the UK, where certain “controls” were put in place to manage market share and increase competition, the situation for many suppliers was arguable similar to here. Increased competition, while making prices cheap for consumers, can actually put even greater pressure on suppliers because retailers are consistently engaging in price wars.
That’s not to say I like the duopoly we have here. I don’t. We could certainly legislate controls on market share, takeovers, etc … we just have to be careful that we don’t induce too much artificial competition that harms the sector more than it helps it.
2 likes
Luke
Govt dont care as long as they can say consumers are winning out with lower prices be it Labor, liberal or other as individual shoppers vote not companies.
1 likes
anon
Luke, Somehow I hark back to the days in Britain where only property and business owners could vote and I fully understand why !!!!!! We need energetic enrollment with democracy again, or we will LOSE IT………retail business in Oz at the moment is being ruled by too small a minority – 4 banks, 2 supermarket chains, 2 newspaper giants, 5 other retail conglomerates (look at the chain owners behind the fashion labels for example – the shop fronts look different, the owners are the same). We are basically a socialist state.
Coles and Woollies just smile with glee as another brand like DL falls over – they didn’t even have to buy it out !!!!
What business will be next, are there ANY independents left ??
4 likes
Ricky
The for sale ad was in todays Fin. Is there a response to the survey yet.
213 votes. 57% of those voting support bidding. We have some feelers out. But’s is a race with a big field including plenty of overseas interests.
0 likes
wally
Anon,
You left out the 4 oil companies. Many small service sttations operators have been pushed out of business as well to leave the market “free” of competition.
0 likes
Sue
No I would prefer Coles to buy them and the products will be half the price.
0 likes
Brendan
Sue, Coles, Officeworks, Bunnings etc use big advertising to give the perception they are always cheaper. They are not. Often our standard prices beat their standard prices hands down. Give small business a go.
0 likes
rick
sue, you are kidding right?
0 likes
Shayne
Had a bit of a fright when I found out Woolworths were putting printer cartridges in….until I realised most of their prices are about 30% dearer than ours – just like officeworks!
i voted yes, but…… who what and how much springs to mind. but would have a great retail space and support if it could be pulled off
i voted no , 3 newsagents in town all close by , one already sells Darrell lea so he should have first crack at it . I do not see much sence in over loading on every product .
It could be worth GNS looking at this as an investment for shareholders (newsagents) and then newsagents looking at cost of bulk fixtures through a buying group. GNS has the warchest as we all pay a levy. Good warehousing facilities would mean better access to stock. Just a thought.
i am not darell lea supporter
If product was available to ALL newsagents or those willing/capable of investing or as Luke suggested through GNS and NOT available to the majors this could be a good opportunity.
it is already in newsagents and has been for many many years and by the looks of it it did not work out what makes everyone think it would now ?
Several members of my family are keen consumers of specific Darrell Lea products and are very troubled at the prospect that they may not be able to buy them in the future. That said, I think they would be concerned to lose the specialist shops and have to buy the products from a newsagency. In DL’s own shops, you get the sense that there’s great pride in quality and freshness. That will not necessarily be true in all newsagencies. Some, for sure, but not all. There won’t be the same commitment and passion for the product – that’s why I voted no.
I have no problem with the product and sell heaps of it and sure, I wish the margin was higher but there’s no doubt it’s a great seller for calendar occasions particularly Easter. The problem perhaps may lie in the fact that that aside from messing with some things like the liquorice and the places it is sold is the fact that a lot of it is still made using older more labour intensive production techniques.
On the point of GNS or somebody else wanting to absorb this into their business one really needs to take a peek inside the Ingleburn distributino centre. It’s massive and reminds me of that scene at the end of Raiders of the Lost Ark when the Ark is placed in the biggest wharehouse you have ever seen and stretches as far as the eye can see and just as high. This is one huge operation that in my view will likely appeal to a Nestle or Cadbury etc.
It’s a shame as so much of the goodwill of this brand lies in its proud Australian history. I hope it sorts out well for all and in particular the huge and loyal consumber base.
From my reading of the events leading to the end result, the troubles came from poor management, not poor product or support of that product.
Perhaps a new and enlivened setup could put DL back on the rails to profitability and if it was saved from the likes of Nestles and Cadbury that would be a bonus not only for the buyers, but also for Australian product and marketing.
They have a strong name despite the way it’s gone over the last few years and I feel they deserve to be assisted if it’s at all possible.
I’m not a newsagent but yep, I’d support it in a newsagency type ownership.
Many have done well from it by all accounts, perhaps it’s time to give something back in a way that we could all benefit.
Where do I sign ?
If there was opportunity to invigorate the business, GNS is most definitely not the vessel through which newsagents should approach it.
While a strong and steadfast institution, GNS is no driving force of change or beacon of innovative thinking.
Thinking about the possibility of such a purchase should be done in the context of the business operating as a standalone operation. Going in with the view of using the purchase to turn the newsagency channel into a DL mass-distribution network is a recipe for disaster. I’m confident that the DL product wouldn’t be the best fit for our store, but that doesn’t mean we wouldn’t invest in the business opportunity if the figures and vision was there.
Mr Robinson from Darrell Lea said difficulties faced by the company, which employs about 700 across its Sydney-based manufacturing facility and its 69 retail stores, appeared to be triggered by a combination of rising costs and declining sales. Cost is 5% shopping center rate, labour cost, and union keep pushing.
That explains everything
Darrell Lea lost its way a few years ago and this is why they are in administration today. Whereas they were a tightly managed premium confectionary brand, today they have been chasing mass, have played with product recipes and altered packaging. The result is soft focus and this has caused sales to decline and retailer engagement to be challenged.
While I am no expert on their internal finances, I suspect their situation was avoidable.
Jono – we all know centres are expensive. Those of us in centres need to run our businesses to step up to this challenge.
Our local Coles has the product range
that is DL’s and they have it in a “no brand
packaging”. They use unbranded paper
bags for licorice etc so it doesn’t take much to work out why DL’s are struggling.
Once again, the duopoly targets these businesses and wipes them off the face of
the earth.
Why they have been allowed to become so
powerful at the expense of small business
astounds me
a
June, the problem is that suppliers get conned into supplying the big 2 on the promise of huge sales increases but then soon find out that the only people making money from coles/woolies is coles and woolies as they suck the life out of every link in the supply chain to grow their own profits. Look at first fleet and even coca cola had to back down to them.
Luke, I don’t understand how the govt.
can sit back and watch the duopoly be
more and more aggressive and yet they
don’t set “limits” like they do in the UK.
I think the larger corporations are only
allowed to have 60% of the marketplace
leaving 40% for competition to thrive.
Here Coles/Woolies already have 80% (it could be a little more) and they are still
actively growing that share with no boundaries apparently.
We SME’s know it and the powers in Canberra still ignore it.
It is probably worth noting that in the UK, where certain “controls” were put in place to manage market share and increase competition, the situation for many suppliers was arguable similar to here. Increased competition, while making prices cheap for consumers, can actually put even greater pressure on suppliers because retailers are consistently engaging in price wars.
That’s not to say I like the duopoly we have here. I don’t. We could certainly legislate controls on market share, takeovers, etc … we just have to be careful that we don’t induce too much artificial competition that harms the sector more than it helps it.
Govt dont care as long as they can say consumers are winning out with lower prices be it Labor, liberal or other as individual shoppers vote not companies.
Luke, Somehow I hark back to the days in Britain where only property and business owners could vote and I fully understand why !!!!!! We need energetic enrollment with democracy again, or we will LOSE IT………retail business in Oz at the moment is being ruled by too small a minority – 4 banks, 2 supermarket chains, 2 newspaper giants, 5 other retail conglomerates (look at the chain owners behind the fashion labels for example – the shop fronts look different, the owners are the same). We are basically a socialist state.
Coles and Woollies just smile with glee as another brand like DL falls over – they didn’t even have to buy it out !!!!
What business will be next, are there ANY independents left ??
The for sale ad was in todays Fin. Is there a response to the survey yet.
213 votes. 57% of those voting support bidding. We have some feelers out. But’s is a race with a big field including plenty of overseas interests.
Anon,
You left out the 4 oil companies. Many small service sttations operators have been pushed out of business as well to leave the market “free” of competition.
No I would prefer Coles to buy them and the products will be half the price.
Sue, Coles, Officeworks, Bunnings etc use big advertising to give the perception they are always cheaper. They are not. Often our standard prices beat their standard prices hands down. Give small business a go.
sue, you are kidding right?
Had a bit of a fright when I found out Woolworths were putting printer cartridges in….until I realised most of their prices are about 30% dearer than ours – just like officeworks!