Fosters Pulls Vb From Coles/woolworths Shelves

Australia & New Zealand Homebrewing Forum

Help Support Australia & New Zealand Homebrewing Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

WarmBeer

Unhappy camper
Joined
17/4/08
Messages
2,937
Reaction score
412
Location
Bentleigh, Vic
Looks like a battle of the big boys has just begun.

Age article

Who knows, maybe without VB, they'll turn to something better. Or maybe just buy a slab of Hammer'n'Tongs
 
"By trying to sell alcohol at lower prices than bottled water, the supermarkets risk drawing the negative attention of government and regulators concerned about rises in drunken violence, one industry expert warned."

Shouldn't we be more concerned about the massive rip-off going on in bottled water?
 
I know someone will tell me but, why should CUB care what price it is sold at the liquor store for when they are still getting there $30 a carton for it? It is the liquor stores taking the punt and under pricing the beer.

Drew
 
Saw something about this on one of the morning news shows. Wouldn't Fosters be getting paid either way? Not sure I get why they're kicking up such a fuss, Coles/Woolies buys their shit, it's their choice as to what price they on-sell it for, isn't it?

Either way I'd rather buy their water bottles
 
I know someone will tell me but, why should CUB care what price it is sold at the liquor store for when they are still getting there $30 a carton for it? It is the liquor stores taking the punt and under pricing the beer.

Drew


That isnt always how ColesGroup works. Suppliers to coles are quite often the one at least in part funding the discount.
 
Sort of like watching two schoolyard bullies beating the shit out of each other.

Cheers

Paul
 
just prove's that foster's group control the market price of there beer..and if i was foster's i would sell the beer to them,they have to pay the wholesale price..
 
It's the flow on effects that is the issue, what starts as "selling below wholesale" ends up with wholesalers getting paid less, i.e. the control goes to the retailer! This is exactly what has happened in the milk industry (who also have a couple of big players cornering more than 50% of the market)

This forum has such an anti-megabrewer mentality that I guess nobody has even thought of the other flow on effect to craft brews? The price differential per slab is around $10 to $20 at the SRP between mega and craft brews, drop the megabrews price by $10 and that price differential widens, shifting customers away from craft brews and impacting their profitability.

If Coles and Woolworths are left to play their own way, it can only be bad for the entire beer industry! :(
 
I know someone will tell me but, why should CUB care what price it is sold at the liquor store for when they are still getting there $30 a carton for it? It is the liquor stores taking the punt and under pricing the beer.

Drew

Because these breweries own a massive amount of pubs and bottle'o's in which they make their biggest profit margins. So they don't want everyone to be able to go to the supermarket and buy it cheeper than they can sell it for.

Apparently the profit margin is tight enough already, thats why they need to sell such massive quantities to make revenue.

Do Fosters/CUB have financial interests in other retailers? :ph34r:
Nige

"Coles and Woolworths, which control 50 per cent of Australia's liquor distribution, have never before been taken on in this way by a supplier".

"Woolworths is the biggest player in liquor retailing, with more than 1200 stores, including the Dan Murphy's chain".

This is going to turn in to a sh*t storm for Coles. I hope the 'Fair go for Craftbrewing' campaign gets a tax break for our micro brewing industry. I hate seeing these megaswill companies pushing everyone out of the market.

Cheers,

TS
 
That isnt always how ColesGroup works. Suppliers to coles are quite often the one at least in part funding the discount.


Thats exactly how they operate, irrespective of the cost price coles and woolworths have very complex trading terms and in these there will be a dot point that argues a base price and it is then up to the supplier to fund a rebate to fund the diff. The arguement is the increase in volume will drive efficencies and overall bring the cost down. On the other hand is a perminetly lower price of a product going to increase sales of the catergory of the product or just that brand? My expereince has been that in the long term consumers get used to lower price and therefore do not continue to purchase a volume that drives efficency, generally an increase in sales will come but it will be at the expense of other products in the cateregory. Don't get me wrong i like a cheaper price on beer and could be swayed to perchase a carton of carlton draught at that price, but long term i think this will do more damage than good. I am also glad that a supplier has grown a back bone to stand up to the supermarkets, I only wish that the milk egg suppliers would have done the same.

Then there is the issues arising with effects of these cheaper prices held at the big boys will have on smaller retaillers and independent bottle shops.

Jan
 
I think the issue it that Fosters dont like the image associated with their beer being sold mega cheap..... Rather than it being a repectable product worthy of a decent price tag.

Simple as that - no dirty games, suspect motives etc. Only brand image.
 
I don't have all the facts, but i have several friends that work in manufacture or supply/distribution industries that deal with Coles and Woolies. And the number one complaint i hear from them very regularly is how heavy handed they both can be about demanding rules about supplying them with stock. Both in terms of quantity and price.

I have spent the best part of a decade working for one of their competitors, and whilst i never made it as far up as management where big decisions are made, the industry certainly talks on the grapevine a lot.

Hope Fosters have a good amount of success telling Coles/Woolies to jam it up their arse. My suspicion tells me that the supermarkets will find a way to still sell cheap beer, but i reckon good on 'em for taking the fight to them.

I don't really care THAT MUCH about the price of beer, as i don't buy it often. When i do, it's usually just to research a different style or brand for the benefit of my own brewing, but i do like to see the bullied fight back some times..
 
Thats exactly how they operate, irrespective of the cost price coles and woolworths have very complex trading terms and in these there will be a dot point that argues a base price and it is then up to the supplier to fund a rebate to fund the diff. The arguement is the increase in volume will drive efficencies and overall bring the cost down. On the other hand is a perminetly lower price of a product going to increase sales of the catergory of the product or just that brand? My expereince has been that in the long term consumers get used to lower price and therefore do not continue to purchase a volume that drives efficency, generally an increase in sales will come but it will be at the expense of other products in the cateregory. Don't get me wrong i like a cheaper price on beer and could be swayed to perchase a carton of carlton draught at that price, but long term i think this will do more damage than good. I am also glad that a supplier has grown a back bone to stand up to the supermarkets, I only wish that the milk egg suppliers would have done the same.

Then there is the issues arising with effects of these cheaper prices held at the big boys will have on smaller retaillers and independent bottle shops.

Jan

I think you missed my point, I was stating the same as you, however you expanded a lot more. A friend of mine works for a company that supplies coles and woolworths, and they are very aggressive with regards to pricing and discounts for promotions. Their argument I am told is that sure you are selling it cheaper, but you are moving more units......
 
What shits me (coming from a small retailer) is the newspaper article suggests that at $28 Coles/Woolies will be selling a case of VB below the "$33 wholesale" value of the case and well below the normal "$38 retail" price ticket.

No small retailer can come even close to this and make any margin!

Fosters sells VB to small retailers for around $40 (inc GST) normally and maybe for $37ish when buying as part of the IGA/Local Liquor/Bottlo promotion

It is utter Coles/Woolies b*&^sh&t that it is so established in the public's mind that cases of VB should cost $38 normally and $33 when on special. It's so frustrating when a punter (who doesn't know that there are other nice beers out there) comes into Plonk asking for a case of VB and walks out laughing when we tell them the price is between $40 and $45.

Not that Plonk sells a lot of VB :)

Bring on the mixed case of Belgian/American/British/German/Aussie craft beer!!
 
Good on them,

not a Fosters fan my self however seeings what they have done to the Fuel supply
 
Back
Top