Tuesday 11 October 2011

Coles & Woolworths, Cat Food & Choice

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For quite a few years we have been regular buyers of tinned cat food. Everyone who knows cats knows that cats are fussy eaters. Our cat would barely touch its tinned cat food. We were buying Coles home brand cat food.

I took a closer look at the cat food.

The tin contained some chunks of fish. It also contained jelly. In fact... most of the contents of each tin was jelly. Jelly is a lot cheaper than fish.

Perhaps our cat did not like flavoured, thickened water... ie jelly. Perhaps the fish itself tasted bad. Not being a cat -- nor an analytical chemist -- I could not tell. All I knew was, our cat would not eat Coles home brand tinned cat food.

So we bought tins of high-profile, widely advertised, long-established brands of cat food.

These more expensive brands contained more fish. Less jelly. In fact, no noticeable jelly at all... no cheap filler. Our cat did not object to the taste of the fish, either.

For the extra cost, we were able to buy cat food which was better quality -- as judged by the cat. Each tin also contained more actual cat food and less filler.

The home brand cat food was rubbish. Why did Coles sell it at all?

Coles and Woolworths have been put on notice by the nation's competition watchdog over the way they undercut high-profile brands with their own cut-price products. (Woolies and Coles face price check, The West, 11 Oct 2011)
How do Coles and Woolworths keep their home brand prices so low? Is it like cat food, that the quantity and quality are both low and abyssmal? I would be interested to hear an analysis based on more than the opinion of our cat.

More importantly: Why do Coles and Woolworths push their own home brands?

A low price gives a marketing edge. This is not for the consumers, this is for the supermarkets. Their profit is the same -- per item -- but an increased market share leads to larger overall profits.

Years ago -- when the home brand cat food proved to be rubbish -- I simply picked up cat food of a different brand. I tried several brands until our cat showed its preference by eating a hearty meal. The preferred brand became our regular choice.

We depended on our selected brand for a consistent quality and taste.

What will happen when Coles and Woolworths offer only their own home brands?

The cat will be disgusted by the poor quality of tinned cat food. We will look for an alternative brand -- there will be none.

When every brand is "home brand" there is only one choice: Coles or Woolworths. Will you change supermarket because your cat will not eat the home brand cat food?

The supermarkets will buy from the cheapest supplier. If the cat food is acceptable one week -- will it be acceptable the next? You don't know the actual supplier -- do you have any confidence in the low-price supplier-of-the-week?

Coles and Woolworths are competing on price. If they home-brand every item, consumers will have no choice other than on price. Quality will be the least of the concerns of the supermarkets. Our ability to choose based on quality will be non-existent.

When every item is home brand, the consumer will have no choice.

That is the ultimate aim of the home branding supermarkets. To remove consumer choice. To allow competition only on cost. Where the supermarkets -- with their commercial power -- have absolute control.

Just a thought...

You know, I'd really be interested to see what is on the pantry shelves of the bosses of Coles and Woolworths...

Do the supermarket bosses buy only home brand goods?

If not... Why not.

Just a thought.

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1 comment:

Anonymous said...

i find coles are the worst for this,their biscuit shelves have reduced to only maybe a quarter of normal.
I also find many of the coles/ww brand products are crap & a waste of money.