Milk - now beer price war
Coles planned to sell branded beer at $28 a carton.
This is bad for consumers in the long term because that below-cost pricing is used as a tactic to drive out independents.
Fosters hit back, refusing to supply beer to Coles & Woolies
[quote]Australia's biggest brewer has confirmed it stopped the delivery of a range of beer brands - including VB, Pure Blonde and Carlton Draught - over the past month.
Foster's says the Trade Practices Act gives it the right to withhold goods if it suspects unfair cost-cutting activity. [url=http://www.abc.net.au/news/stories/2011/03/23/3171105.htm]more[/url][/quote]
A little guts on the part of manufacturers is long overdue. Coles/Woolies have become a law unto themselves. They claim to have the customers best interests at heart, but usually, the manufacturer, grower or producer foots the bill. As fwed says, thes "price wars" may be good for customers, but it does "cut the throat" of the smaller independent retailer. When the independents have gone broke, what a surprise, Coles/Woolies put their prices back up.
SOMETHING needs to be done to break their strangle hold on food/alcohol/fuel retailing in this country.