Ozzie hostages to fortune

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Reports that the Foster’s Group in Australia are withholding beer from two of that country’s largest retailers - Woolworth’s and Coles - over the threat of below-cost selling by the retail groups, is, well..... refreshing.

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Off-trade

30 March 2011

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While the two retailers have both reportedly denied that they plan to sell below-cost, the contrast to the selling situation here at home could not be more stark.

Question: What’s against suppliers here trying the same withholding of supplies stunt with the below-cost selling multiples here in the Emerald Isle?

Answer: John Bull and the rest of Europe in such close proximity, that’s what!!

Under such convenient geographic conditions, parallel importing has become a huge problem for Irish-based suppliers.

The only answer is to reduce domestic input costs and thus market prices here  — and that’s something that only a super-strong Government could undertake. Any takers?

 

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