12 May 2012

Dick Smith Shoots mouth of again. Isn't he a shareholder in Woolworths and Coles.

DISCOUNT supermarket Aldi says it can't be blamed for the purchasing practices of its two major rivals.
In a bid to douse claims from entrepreneur Dick Smith that the chain's pricing policies were pushing Australian food producers out of business, Aldi says 70 per cent of its Australian grocery sales come from locally produced products.
"Aldi is committed to Australian manufacturers," the German-owned company said.
Mr Smith told a Senate inquiry into Australia's food-processing sector today that competition pressure from foreign-owned retailers made it harder for local producers to sell to Australian supermarkets Coles and Woolworths.(What percentage of their stock is imported,Hey!)
Aldi had a greater turnover of stock and consistently offered below-cost products from overseas, he said.
Local producers couldn't match the low prices and were pushed out.
"Then they put the price back up again," Mr Smith told the committee hearing.
He said last year's milk pricing war - sparked when Coles slashed the price of milk to $1a litre - was a response to competition pressure from Aldi and US-owned warehouse store Costco.(What planet does he live on, Aldi and Costco didn't lead.)
Mr Smith, the operator of Dick Smith Foods, which markets Australian-grown products, said these pricing practices made it hard for him to compete against famous brands - including Cottee's, Arnott's, Golden Circle and Edgell - that were now foreign-owned.
In one example, Mr Smith said he had intervened to stop an Australian beetroot farmer from burying his crop earlier this year.
He canned the crop and offered it to Coles and Woolworths for $1, but was undercut when Aldi started selling a similar product sourced overseas for 75 cents, he said.
Aldi said all its beetroot was grown and packaged in Australia, and sold above cost.
Sorry Dick it appears your wrong again!
By the way why don't you mention how much it costs just to get one of the big supermarkets to put you product on the shelf?

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