Locals take on Coles & Woolies….’relocalisation’?
Neighbourhood Houses ‘dancing with DGR’
April 9, 2007Local councils leading the way on zero emissions
April 11, 2007Are we so lazy we’ll allow the duopoly to foist generic brands onto us?
SOME of us are saying ‘Yes’ to Aussie-owned businesses and ‘No’ to the supermarket duopoly. Since I wrote about buying lettuce in a sealed bag this ‘lazy shopper’ has found two good local greengrocers and I’ve gone back to my old butcher. It’s a different relationship….. I like it, it’s not dearer and it only takes a few minutes to walk down the arcade…..next step is to find a local Farmers’ Market! How are you finding the generic brands on supermarket shelves – probably ‘made in China’?
I am glad to see some individuals and community groups prepared to ‘take on the duopoly’. It seems in 2007 acting locally on global issues is being called ‘relocalisation’. Journalist Russ Grayson describes this as “an idea thrown up in response to the possible peaking of the supply of oil and, to a lesser extent, to global warming. What gives it greater value than many of the solutions coming from the environment movement is its broader benefit to society, especially to local farmers, producers, community enterprise and businesses.”
Relocalisers ask us to reflect on our future and act in ways that give us more control over our lives and ‘locales’, ways that are less dominated by global corporations and consumerism, with all its consequences.
THE PROBLEM for consumers, producers…… AND our ‘leaders’?
Consumers are NOT aware of foreign food ownership and how difficult it is for farmers to get their produce onto supermarket shelves where foreign food companies dominate. Aussie Farmers Direct spokesman Graham Adams in a radio interview on 3RPH (scroll down) explains:
- 90% of milk is processed by Parmalat and San Miguel;
- 70% of Australia’s bread is baked by foreign-owned companies;
- 85% of a typical family shop goes to foreign-owned companies;
- the supermarket duopoly holds farmers to wafer-thin margins;
- farming communities’ survival is threatened as prices paid to growers fall and prices paid by consumers rise…..
BUT, in Victoria, Aussie Farmers’ Direct Sungold Milk is produced by 700 farmers and processed by the Warrnambool Cheese and Butter Factory, which employs 250 and is the oldest operating dairy in Australia…..
The Australian Competition & Consumer Commission’s (ACCC) Graeme Samuel says:
“The Commission cannot interpret its responsibility to promote competition to mean the protection of individual companies and the outlawing of vigorous, legitimate competition – even where that competition causes difficulties for individual firms….the distinction between promoting competition and protecting consumers (is) confused and blurred by some sectors…”
So, because the independent grocers in IGA/Metcash and Australian growers – who can’t win shelf space from cheap imports – are ‘simply competing’ the ACCC will not interfere…
BUT
you have to scratch your head if respected Harvard economist Professor Michael Porter holds that (Executive Summary):
“strong domestic rivalry between firms contributes to national prosperity in terms of GDP per capita”
AND
if American antitrust laws – those which make unfair trade practices illegal – have the power to intervene if something seems amiss (eg growers’ margins going down while consumer prices rise), why is the ACCC not looking at Competition Law in the same light as the American Antitrust Institute:
“Antitrust laws speak in general terms, thereby leaving a lot of room for discretion on the part of administrators and judges. As something more akin to art than science, antitrust is subject to swings in political ideology and economic theory.”
Well our leaders may be doing nothing but a couple of young Melbourne entrepreneurs are having a go!
Home Delivery – milk, OJ, bread, eggs etc – cheaper than supermarkets
In Melbourne, William Scott, 27, and Jordan Muir, 26, have seen an opportunity to cut out the middleman and provide fresh Australian produce to a market that wants to support Australian farmers and their communities.
They have formed a consortium called The Smart Group (pdf) and under the banner of Aussie Farmers Direct’ they have established a franchise that sells fresh Australian milk, juice, bread and other staples.
Deliveries are twice weekly, before 7am. Customers are given cooler bags to leave on their front porch the night before. Negotiations are underway with Australian-owned dairies and bakeries in Sydney and Perth to expand the network.
Aussie Farmers Direct has won 6500 customers in 12 months with 1000 signing up each month in Victoria reports the Leader Community Newspaper.
Also ‘taking on the duopoly’
- Farmers’ markets maintain their popularity and growth;
- community food gardens are popular;
- Ritchies Supa IGA independent grocers are supporting Australian-owned business with their Community Benefit Card and the Fight Back for Australia newspaper that provides a 6 page Australian-owned brands guide. The current edition of Fight Back explains:
In 2003, Coles and Woolworths….announced they would introduce a new two and three tier generic product range. To make way for these
new products 23,000 lines would go. Australian-owned brands suffered most….Many multi-nationals, to make their brands more competitive for the limited spaces on the duopoly’s supermarkets’ shelves started bringing in product from their lower cost factories overseas.”
How are the big two supermarkets being challenged?
- Grocers are lining up to join IGA/Metcash. IGA is a network of 1300 independently owned stores – third to Coles and Woolies – who pool their buying power through Metcash and operate under a common brand to cut marketing and advertising costs and who, in November 06, reported a 36 per cent increase in first-half net profit;
- The IGA website lists all specials online PLUS cheap fuel in local areas – quick and easy – you also get 4c per litre rebate on fuel purchases if you spend $30 at IGA;
- IGA retailers supporting the Fight Back program use a ‘shelf ticketing system’ highlighting Australian made and owned brands;
-
The Ritchies/IGA Community Benefit Card – free to all Ritchies shoppers who choose as beneficiary a school, charity, sporting club etc – that channels 1% of the total sales each time a person shops to this cause
AND
Ritchies are using degradable bags at all their supermarket and liquor outlets
Shopping in country Vic over the past week:
- In Wangaratta I was told “The children’s wear shop shut down after Big W opened”;
- At the Beechworth IGA I saw a sign at the checkout saying “We have donated $170,754 to local schools, charities sporting clubs…”
- I discovered Ritchies has donated more than $20 million to community groups in Victoria, NSW and Queensland, with the Salvation Army receiving almost $1.1 million since the Community Benefit Card commenced.
If you’re still with me you might like to consider Russ Grayson’s concluding thoughts.
Russ believes local government could support citizen and local business initiatives that comply with relocalisation aims. Even if the impact of peak oil is not as drastic as some say, relocalisation activities, enabled by local government policy, would still benefit communities. However, he says, many relocalisation associations are new and still finding their feet in the world of community development and advocacy. Many don’t know how to co-operate in policy formulation. What they need to understand is that policy is an enabling thing under which a great many socially-beneficial initiatives can be launched.
43 Comments
It would be good to have a list of local businesses and suppliers that support relocalisation aims. I think many people would like to be able to support local jobs and producers, but there needs to be a source of information.
i do not buy veges or fruit meat from woolies i live 5 houses away my local grocer fruit shed has a ad in local paper compareing his prices and what woolies charge youits like between $15.00 $10.00 difference meat i can not believe what woolies charges for it what a load of crap i am on a disablitly pension money is not buying as much as it use too its bloody hard john howard come and live in my house for a week you will be crying poor too
Really good to get your comments James. We need more to make the point and get the message across….How about it out there??
Guys, you need to cross check the figures you’ve quoted from the Graham Adams interview on 3RPH, explaining that 90% of Australian milk is processed by Parmalat and San Miguel (both foreign owned companies); The reason i say this is that it 2 of Australia’s largest milk processors (Dairy Farmers and Murray Goulborn) are both Australian owned; i think you’ll find that they account for a significant amount more than 10% of the market- how about some focus on the big Aussie companies still fighting the good fight; they are out there you know!
Thanks Alastair – we’re checking right now and think you might be right…
Yes, Alastair you’re right on those figures. Only 45% of Australian milk is processed by foriegn companies.
According to the Australia’s dairy industry peak body, Dairy Australia farmer owned co-operatives:
“No longer dominate the industry, but still account for approximately 55% of the milk output. While the largest co-operative (Murray Goulburn) accounts for 35% of Australia’s milk production, there are also a number of small to medium sized co-operatives with milk intake volumes between 100 and 1,000 million litres including the Dairy Farmers Group, the Bonlac Supply Company, Tatura Milk industries and the Bega, norco and Challenge co-operatives.”
“Major multinational dairy companies operating in the Australian dairy industry include Fonterra, San Miguel, Parmalat, Nestle and Kraft.”
Thanks Alastair for being so alert!
My wife and I have changed to IGA, as have many other people in the Bendigo district.
We like others are sick of being treated as numbers, and not people.
Local butchers and greengrocers have also benefited by the change to IGA and local.
The duopoly think that they can get customers just by dragging a carrot (cheaper petrol) in the front of their noses.
This does not always work, as customers are constantly seeing the prices being raised by the duopoly, and are sick of being treated this way.
I try to buy my fruit & veg.from the markets. Even then some items, like garlic, & some oranges , are from overseas. I boycott products made by companies who are owned by cigarette manufacturers (Kraft) or behave in an unethical manner towards growers or consumers in developing countries. Perhaps PWF could develop a page of information along the lines being requested? I would be willing to assist.
Thanks for your comment. We have been thinking along these lines too Elizabeth. I suppose the thought of ‘doing it nationally’ has been a little daunting. The ‘local, living economies’ groups support local businesses – as you are doing with buying fresh. Could you expand on how you see a PWF info page working?
Hi, I am disgusted with Woolies new “Select” brand. So far I have only checked out their oven bake chips, guess where the spuds come from!!! the Netherlands no less, shame on any one who eats our fish (which is hard to get too) with the chips grown in the Netherlands. I will continue to check these “SElect” products out for you all. Regards Roz
I join you in your disgust Roz, so do a lot of others too I think. I saw yesterday that the Sustainable Living Foundation is about to start ‘Conscientious Consumer Supermarket Tours’ giving people the ‘full bottle’ on what’s on the shelves – good on them! I’ll be along and will report back to PWF readers.
Hi,regarding Foreign owned milk-You will find that PACKAGED fresh milk is almost completely controlled by the FOREIGN invaders
We’re very lucky in Canberra we do have two alternatives to Woolies and Coles they are Aldi and Supabarn. Everyone knows about Aldi but Supabarn is just starting to grow. We have 3 supabarns now in Canberra and i believe there’s at least one in Sydney. The great thing is that they usually only buy Australian produce and support local farmers. They are a smaller supermarket chain and support the smaller farmers who are quite big enough to interest Coles and Woolies. The great thing is that they have more variety, fresher produce and their prices are very competitive and on average they end up cheaper than the big two and guess what it doesn’t matter which store you go to the prices are actually the same!
I take on Coles & Woolies + Coca Cola….’educisation’!
How about supporting the other liquids like spring water, juice, energy drinks and soft drinks etc. I have a website that supports and promotes Australian owned non alcoholic drinks, including milk. So why not come on over and learn how foreign owned companies make the milk statistics look good.
See the only human edited and maintained Australian and New Zealand non-alcoholic drinks directory on the internet.
http://www.ozbevnet.com
Hi, I to am disgusted with Woolies new “Select” brand.their oven bake chips, guess where the spuds come from!!! the Netherlands says Roz well guess where their paper comes from!!! China recently in our small community we have had out newly build spud factory shut, now they (woolies) are importing paper from china at a price we can not compete with our main souce of income in the community comes from the local paper mill, we are already cutting back shifts, loosing orders to china, pretty soon we will be a ghost town if we do not take action and say no to shopping at woolies, buy nothing, dont go there, go with an alternative product if you have to until they (woolies) support australian jobs we sould not support them. buy australian made products made with australian produced products, be careful as this will look to be australian made but in-fact it is produced in another country and only packed in australia. Be australian, buy australian create and preserve australian jobs.
I totally agree, our local Coles has cut back the range of brands to replace it with ylc You’ll love Coles crap We have a potato frmer over here (WA) who took on the Potato Board and the big 2 by opening up his own shop called Spud Shed and sells all fresh produce from his Farming buddies coz they got sick of being screwed by the big boys. Put a dent in the 3 Wollies and the 3 Coles pretty quick as did the IGA group when the merged they went from Dewsons, Supa value, Action in WA etc to a Group with 6 stores in town under the IGA/Metcash Banner.
We have Harvey Fresh milk and they are WA owned but the sad fact for them is that Masters or Brownes actually priduce the milk for them at the Metro sites and there owned by Fonterra or San Miguel because they cannot afford to set up the entire operation I read with interest in the state paper in WA that the days of the big shopping complex are dying and the suburbing row of shops is making a comeback.
I cant think of anything better than going down the shop to your local bakery or local butcher and he knows ya name how good would that be!!!>
I’m getting pretty sick of seeing great Aussie brands disappearing from supermarket shelves. Sooner or later the duopoly will realise that customers are no longer shopping in their stores since they’ve stopped selling their customers’ favourite products.
Do you think there are enough of us to take the time to THINK and forget about the ease of ‘one stop shopping’Daz? It does take a little longer and it’s probably a little dearer NOT to duck down to the local supermarket. It’s really a whole new approach to weekly routines. Hope you’re right…
Nice to see a conversation about an issue close to my heart, relocalisation. And in response to Andrew’s first comment back in April, a local guide is exactly what my relocalisation group, SustainaBundy, is working on for our town of Bundaberg in Queensland. I wish there were existing publications we could model ourselves after, but ours may well be the first! I really hope it helps residents shop more mindfully.
Andi, it’s great to hear from a ‘real live relocaliser’. Good on you in Bundaberg! Last Friday I went to a ‘Shopping with a Conscience’ night and supermarket ‘tour’ run by the Sustainable Living Foundation here in Melbourne. They are working on exactly what you speak of – a publication for mindful shoppers. Go to http://www.ethical.org.au/ecg_about_3.htm to learn about the project and to http://www.ethical.org.au/ecg_SBCtables.htm for their supermarket buying card. If you have a few minutes PWF would love to hear a bit about what you are doing, how you’ve gone about it and problems you have faced and overcome in Bundaberg??
Gail, What a great article and what a great response! Will print it out for the writing group , who have all been converted anyway!
Gail, thanks for the information- I will definitely read more about ethical.org.au and see what we can learn from them! SustainaBundy is only new, so we’re still discovering our problems and trying to determine how to overcome them! One of the stumbling blocks at the moment is maintaining momentum. Starting a new initiative where there has been no previous groundwork laid makes for quite the uphill battle. I’ll keep you posted on our progress – thank you again for the links!
Andi, some questions for you.
1. Why are all the relocalisation groups in Oz clustered on the Sunshine Coast?
2. Do you have any connection with the American Business Alliance for Local Living Economies (BALLE) movement?
3. Why, in your opinion, does the Australian media report virtually zilch about relocalisation, BALLE?
Please do keep us informed on your progress and how you overcome difficulties.
Hi Gail, thanks for the questions! Here are some answers.
1. For a short time I was the Australian Regional Coordinator for the Relocalization Network. During that time I gave a couple presentations about relocalisation to permaculture groups on the Sunshine Coast- three new relocalisation groups started as a result (CASSC, SCReNE and Eudlo). They’ve really started some exceptional activities in that time, which are well documented on CASSC’s site (SCReNE does most of their work offsite, and Eudlo is new and essentially a branch of CASSC). Maleny, QLD After Oil, Northern Rivers (NSW), Kuranda (QLD) and RWBI were already in existence at that time (I’m co-founder of RWBI but have moved to Bundaberg so am no longer coordinating that group). While I was Regional Coordinator for the Network I talked with people in Brisbane, Perth, Adelaide and Canberra about starting groups but without going there in person and getting involved on the ground it is very difficult to generate the kind of interest and enthusiasm needed to make a relocalisation group work. Relocalisation fits tightly with the permaculture movement here in Australia, and I think a lot of permaculture groups think they’re already on the right track and starting a relocalisation group isn’t really necessary. In some ways they may be right, but the ability to cross pollinate ideas with other likeminded groups would be of value to any group, regardless of what they call themselves.
2. BALLE, the Relocalization Network and the Transition Movement in the UK (online at http://transitiontowns.org/ ) are all very similar. Some BALLE groups and Transition Towns are also members of the Relocalization Network. Regardless of the name they’re all working towards very similar goals.
3. One of the cornerstone concepts of the Relocalization Networks reducing consumption. This is a bitter pill for anyone to swallow. Telling people they should cut back on all the luxuries they’ve come to need is an unpopular idea and there is simply no way to make it “sexy” to the masses. However, the other cornerstone concept is producing daily needs locally – not only as a response to peak oil and climate change but also for energy security and to strengthen local economies. It sounds great, and it really can work. But I think a lot of people put it in the “too hard” basket – why go to all that effort when you can go to Woolies or Dimmey’s and get it cheaper and it doesn’t require any thought.
I’ve long felt that the relocalisation movement needs something along the lines of a professional advertising campaign to capitalise on that “stronger local economy” aspect of relocalisation in such a way that it makes it “trendy” to the general public, because unfortunately the media rarely leads – they don’t cover a story (particularly like this one) until it’s already won the popularity contest.
Is it true that Wollworths Select milk is reconstituted NZ milk??? It say “Product of Australia” on the packaging…???
Being a Bundaberg resident I would like to comment on Andi’s relocalisation group here. I’m sure many people would like to be “more aware” and “do the right thing” and this group is and will create much awareness I believe. Awareness and freely available information are the keys to change from my perspective. Great stuff! We are very fortunate.
I couldn’t agree more Leah – it will take time. Don’t you think it strange mainstream media doesn’t show any interest? Does your local media report on your group?
Hi, I work in a family owned local IGA in WA with my parents. I have noticed our customers main point of difference why they shop with us and not with the big 2 is our service.
HERE ARE SOME EXAMPLES OF THE SERVICE WE OFFER
I have on average 5 people a day asking if i can stock a certain product, i usually will bring in a few new ones every week that people ask for no matter how odd some sound.
As we recognise the majority of our customers whenever someones changes there mind, has problems with dates, funny smells, broken, not working or whatever with a product we will always refund there money, even if they don’t have a receipt. It adds up to a fair bit each week but they leave happy. Try walking into a coles or woolworths without a receipt at the least and you will be laughed at.
We walk shopping home for little old ladies who can’t carry it.
We pick, scan pack and deliver groceries for only $10 charge.
All these things are what people want these days and only localised hopping complexes can offer these sorts of services.
I consider myself to be a conscious shopper and find in Melbourne there are not enough alternatives to Coles and Safeway. We do have Aldi and IGI, however I believe that in addition to these we require more community based markets. I also believe that there is a need for bulk shopping by communities/friends or organisations of medium quality products. As much as organic is the ideal, it is expensive and out of reach for those who are time or fiscally challenged. Once most people find things a bit tough they revert back to old habits even those they do not like.
Training people to cut down on packaging as it may be harmful to the environment could be good way to introduce conscious shopping. From there a new concept could be added to raise people’s awareness of their shopping habits.
On a large scale television advertising would be great. I’m dreaming here, but wouldn’t it be awesome to saturate television watchers with ads about buying habits. I am picturing a man (sorry guys) walking into coles or safeway and loading the trolley with sugary, over packaged, non-Australian groceries and made in a slap stick manner.
Anyone from Melbourne reading this? I’d love to know that there are similar minded Melbournians around.
Regards Lou
This would be a fantastic ‘lesson’ Lou…who/which organisation would run it? There is now a government focus on obesity, do you think that could be linked into shopping habits? I am finding there is a lot of interest in this area in my Neighbourhood House Network – wouldn’t it be wonderful to see Neighbourhood Houses right around Australia, suitably backed by a large government grant, running with an educational program like this? I’m half-way serious here…
Thank you for this post, and the useful links. I am definitely going to be more proactive about using farmer’s markets. It is so hard when you both work full time and have children though to co-ordinate with when they are open. I suppose it is a conscious decision not to take that extra time… I need to be aware of the cost of that decision!
http://www.ourpatch.com.au
Have you tried looking in the bins at the back of Woolies, Coles, Bakers Delight et al…………
An estimated 15,000 people homeless in WA.
Sky High Food Prices……
See for yourselves…………….
Buy Australian groceries cheaper than the supermarkets http://www.onlyoz.com.au
I live in Central Queensland, and am an avid supporter of Australian grown and manufactured products. A trip to the local Coles or Woolies isb ecoming more time consuming as time goes by, trying to find good Aussie produce (yet the advertising monitors at the entrance to each checkout lane in Woolies clearly state that “WE” support Australian growers – methinks 98% public relations and 2% corporate policy).
Another beef…Woolies CEO stated some time ago that their prifit from fuel sales (due to their fuel discount scheme) is embarrassingly small. When ULP was $1.00/litre, if you spent $30.00 or more you were entitled to 4 cents/litre off fuel at participating outlets = 4% discount. Now with fuel priced at over $1.50/litre, the discount is still only 4 cents/litre = less than 3%! Have Woolies lessened their ’embarrassment’ by letting the discount be eroded. Why not make “it” a fixed percentage ? (just like GST, income tax rates and retail mark-ups).
The Duopoly – Coles + Woolworths = Great White Sharks. Sick of their political spin, Sick of their claim to fame of non existent value, When are we going to stand the F*%# up to these Corporate Fat Cats. Money has no meaning to them anymore as they have so much of it. Although I sound annoyed I am not really!! The tables will always turn in favour of good old human decency and integrity
I always buy ‘baby cos’ lettuce in sealed plastic from Coles (2 per bag) it’s fresh and crisp and lasts the full week.
We dont eat a lot of meat but i have found the butcher can be up to 3 times MORE expensive
I am in no way defending the duopoly I think you could have found some better examples
Woolies Oven Bake Chips look and taste like reconstituted potato crap. How dare they even put this stuff on the same shelf as real potato chips.
I really enjoy my potato chips on the weekend, and usually I’ll finish the packet, but this one is going straight back Monday.
We do our best to buy local, and to purchase as much as possible from local markets, choosing hyper-local produce wherever possible, even if it means paying more.
I can’t believe the cost of food, I can’t believe how the big chains screw everyone, consumers and suppliers alike, and I can’t believe how stupid these guys think consumers are.
Our local Woolies frequently has truly sub-standard fruit and vegetables, not only because the quality of the stuff is lacking in the first place (eg dry stone fruit that is never going to improve, or oranges out of storage that have been kept too long), but because they leave old stuff on the shelves, still at full price.
Same in the seafood section. If I do buy there because of time pressure, I always ask to actually smell the stuff now. The sales staff look at me as if I’m some kind of nutter, but once you’ve brought home rancid fish a few times, it’s not a chance you’re willing to take.
My daughter worked in the local outfit for a few years and got into endless trouble for wanting to throw out stuff that was sub-standard. Woolies just wanted her to sell the stuff for maximum price. They could give a stuff about their customers taking home fish that would be inedible the next day.
“Fresh Food People” is just a bad joke. How stupid do they think we are? And what kind of morons are running that outfit?
They already have a spud shed in perth, opened in 1999 and still running.
Please sign this petition ad link it.
http://www.gopetition.com.au/online/26509.html
“Frozen Food People”, I think. In a moment of weakness, I bought a bag of mandarins from Woolies. None of them were edible. I think they had been frozen from the previous season; the skins were a deep bruised orange colour, and the flesh had an unpleasant alcoholic flavour because the sugars were starting to rot. They had looked OK under the fluorescent lights in the shop. They went straight into the compost bin.
Lately I’ve started buying from an independent local grocer and supplement that with fruit and veg from our new backyard plot. So, guess what I’ll be doing in future? (Clue: the duopoly won’t be involved!)
Please sign this petition and link it around.I am after as many signatures i can get to show Coles and Woolworths that Australians do not support their foreign owned and made garbage.
http://www.lobbyingforum.com/petition-detail.aspx?id=72
show Coles and Woolworths that Australians do not support their foreign owned and made garbage.
fruit and veg from our new backyard plot. So,