by admin on May 8, 2013

Coke hits back at supermarkets

Coke hits back at supermarkets

Terry Davis, CEO of Coca-Cola Amantil (CCA), has lashed out at major retailers as Australian prices continue to spur debate.

Davis has called for a national debate about the future of food manufacturing and living standards in Australia as Coles and Woolworths step up their campaign against grocery price discrepancies, reports the Australian Financial Review.

“Do we want to be a country that has no food security, do we want to be a country that pays $1.50 to $2.50 an hour” Davis said after dismissing suggestions Coca-Cola Amantil’s prices were too high.

Ian McLeod MD of supermarket giant Coles, told Financial Review Sunday, Coca-Cola was two to three times more expensive in Australian than in Thailand.

McLeod mentioned the price of Coca-Cola as part of a renewed attach on multinational supplies, saying consumers were paying to much for groceries.

Davis, according to the AFR report, said Australian soft drink prices were higher than those in Thailand and Indonesia because of higher wages and rent.

“I could bring in cans from Indonesia cheaper than I could produce them in Australia but I am not going to do that because I’m a believer that we have to have a manufacturing industry in this country, because if we don’t we do so at our peril,” Davis said.

“Ian McLeod is absolutely entitled to his point of view, my point of view is that labour costs in Australia are demonstrably higher than they are in Asian countries,” he said.

“My personal view is that ultimately Australian consumers will need to vocally encourage the major Australian retailers to lift their support domestically grown and produced brands instead of supporting imported private label products, or consumers will fact the very real proposition of seeing less and less Australian grown produce on retailers shelves”.


Source – Inside Retail

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