Nosh milk price stand gains momentum

MEDIA RELEASE

Nosh milk price stand gains momentum

Less than 48 hours after Nosh Food Market announced a price cut on two litres of milk, support is growing from retailers in Auckland and elsewhere.

Milk producers are also backing the campaign with Federated Farmers’ Dairy chairperson Willy Leferink saying attention needs to focus on supermarket margins [http://business.scoop.co.nz/2012/02/08/the-milk-wars-come-to-new-zealand-in-one-place/].

“Can I applaud Nosh for kicking off a supermarket price war for fresh milk in one location at least,” Mr Leferink is reported as saying. “If dairies can sell milk cheaper and a small supermarket like Nosh can sell it as a loss leader, surely Foodstuffs and Progressive can do the same?”

“Frankly, Nosh is doing more to open up competition at the retail end than any narrowly focused inquiry can ever achieve,” Mr Leferink says.

Reports also indicate Foodstuffs franchise supermarkets and a Mt Maunganui specialty store are backing Nosh’s campaign – only hours after it was launched. On Tuesday (Feb. 7) Nosh announced it was reducing the price of two litres of milk by more than half to $2 a bottle.

Nosh director Clinton Beuvink is full of praise for the actions of both farmers and retailers.

“It’s great to see more and more retailers getting on board with our milk price campaign – long may it continue. We urge others to support the campaign because if you do get involved your customers will love you for it and support you – just as they have with us.”

Consumer New Zealand chief executive Sue Chetwin is quoted as saying [http://tvnz.co.nz/business-news/fed-farmers-calls-milk-price-war-4714201 ] there was no reason why the bigger chains could not do the same (and reduce prices).

“We often see service stations and dairies selling milk cheaper than the big supermarkets, so it just goes to show it can be done while still making a profit,” Ms Chetwin is reported as saying.