As a consequence of the milk price war between Coles and Woolworths, I have heard of independent retailers no longer permitted to return unsold milk according to a friend who stocks milk in his business.
So, in effect, independent retailers are carrying the costs of hefty discounts to Coles and Woolworths, along with the farmers.
Australian consumers need to remember that small businesses in this country employee more people than big businesses. They can only do this as long as they are supported by consumers.
The milk and bread price wars being run by Coles and Woolworths are not socially responsible.
What, a small milk retailer has been, up to now, able to return unsold milk?????
We’ve never had that luxury! It does make one very astute about stock control, however.
The way things are going, given the minimum amounts we have to order, orders will be fewer and further between, if they keep trashing their own premium brands.
When I was with Coles, flavoured milk was sale or return. Credits were also given for damaged stock (most often tiny pinpricks from the plastic crates). Bread was also sale or return with Tip top/Buttercup. All in-store produced bread was marked down and then dumped.
We receive milk via Quantum Distribution here in metro Brisbane and we have not, as yet, been advised that returns will no longer be accepted. We have only ever been able to gain credits for return of out-of-date flavoured milk, and only for damaged bottles of plain milk. Should this change, our ordering will change accordingly.
The pressures the price war seems to be putting on retailers, producers and distributors will not stop here.
Wendy, Just wondering if Quantum Distribution is Dairy Farmers(National Foods) or Pauls(Parmalat)
Warrick, Quantum are distributors for Pauls products.