Australian-owned New Zealand supermarket chain, Countdown, is experiencing a backlash from customers disgusted that New Zealand products are being spurned from the biggest selling sections of Australian supermarkets.
Coles and Woolworths supermarkets in Australia have been removing New Zealand-produced goods from their house-brand labels, according to Buy NZ Made and the NZ Food and Grocery Council.
Prime Minister John Key says it’s a breach of the spirit of the CER trade agreement between the two countries and he’ll be raising the issue when he meets his Australian counterpart Tony Abbott in Sydney on Friday.
New Zealand consumers are expressing disgust on social media, and the Countdown chain owned by Woolworths Australia is being targeted.
“I have always supported Countdown in New Zealand. No longer. I will no support a company who will not support New Zealand suppliers while taking millions of dollars out of NZ consumers every month,” Laurian Gill posted on Facebook.
Lucan Turnbull said: “Shame on you for removing NZ made items”.
Mike Alls posted on Countdown’s Facebook page that rivals “PAKnSAVE and NEW WORLD must be rubbing their hands. You deserve a good shake-up after this issue”.
Countdown had received feedback from some customers, mostly on Facebook, a spokeswoman told NZ Newswire.
“We’ve received some feedback from customers which we’re listening to and taking seriously,” she said.
Coles said most of its customers wanted it to buy Australian-made goods.
A few New Zealand favourites, such as L&P and Pascall Jet Planes, were available in the international section of its supermarkets in Australia.
NZ Food and Grocery Council chief executive Katherine Rich said the issue had been bubbling away for 12 months.
“I’m not surprised there is some feedback on social media because while Coles probably don’t worry about any New Zealand fallout so much, Woolworths has a multi-billion-dollar footprint here in New Zealand.”
She said home brand products in Australian supermarkets had been sourced in many foreign markets in the past and they were a massive chunk of business.
“It shows the seriousness of the issue that our prime minister is using limited time to raise it. We are very thankful that he is doing it.”
Frozen foods, cheese and fresh vegetables are among products affected.
“The point we’ll really be making is the whole spirit of CER is an integrated Australasian market and we think that the big companies in Australia should actually observe that,” Mr Key said.
AAP
