Creeping acquisitions are under the spotlight again as the Government promises reform to honour their election commitment. The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, today released a discussion paper calling for public comment on the best way forward for a creeping acquisitions law. Creeping acquisitions refer to the cumulative effect of a number of small, individual transactions which, when considered in isolation, might not be captured by the... ...Read more »

The Council of Small Business of Australia (COSBOA) claims the Consumer Choice website has misleading information that gives free promotion for Coles and Woolworths and provides distorted information to consumers and have called for the website to be shutdown. “I hope the government receives a fee from Coles and Woolworths for advertising and promotion of their brand,” said Bob Stanton, Chairman of COSBOA. Mr Stanton highlighted the example of the ‘Metropolitan Perth and Surrounds’... ...Read more »

The ACCC report into the state of competition in the grocery sector was released to mixed reactions yesterday. Federal Government “I believe that our action plan, combined with the broader reforms that are already in train to further strengthen competition policy, such as the amendments to the misuse of market power provision and the criminalisation of serious cartel conduct, will ensure that the grocery market remains competitive,” the Assistant Treasurer, Chris Bowen, said. “The introduction... ...Read more »

The Australian Competition and Consumer Commission yesterday handed their 642-page report into the state of competition in the grocery industry to the Federal Government and it has been suggested that a “competition test” may be among the recommendations. Changes already mooted have included unit pricing, which appears certain, changes to restrict “creeping acquisitions”, a price monitoring system and the introduction of an industry ombudsman. Alterations to zoning restrictions... ...Read more »

Major legislation changes are likely to be recommended when the ACCC release their report into the competitiveness of the grocery industry, based on comments made by ACCC Chairman Graeme Samuel yesterday. Speaking at a lunch hosted by the Australian Institute of Company Directors, Mr Samuel indicated that he thought certain companies may have provided them with information that they would have preferred to keep secret.”The public hearings enabled us to put some people under the pump to find... ...Read more »

The ACCC Grocery Price Inquiry held it’s last planned public hearing in Melbourne yesterday, with Metcash the final company to be put under the spotlight. Metcash, Australia’s largest wholesaler, was questioned on a range of issues, which have already been highlighted throughout the preceding months. The ACCC was particularly interested in the strength of price competition provided by independent grocers to the major supermarkets. ACCC Chairman, Graeme Samuel, questioned Metcash CEO,... ...Read more »

The Australian Competition and Consumer Commission (ACCC) resumed their grocery price inquiry in Melbourne yesterday, with Coles the latest supermarket to be put under the spotlight and forced to deny accusations of anti-competitive behaviour. The ACCC has been worried that competition could be limited based on revelations by IGA and Woolworths that they instruct store managers to merely match the prices of their competitors. “If Coles’ instruction to its managers is exactly the... ...Read more »

The Horticultural Code, introduced last year, could soon be extended to incorporate retailers. The code currently regulates trade in horticulture produce between growers and wholesale traders to encourage greater clarity and commercial transparency in transactions between these parties. It was also set-up to provide an alternative to litigation by setting out an effective and inexpensive way of resolving disputes that may arise between growers and traders. The Australian Competition and Consumer... ...Read more »

Woolworths Chief Executive, Michael Luscombe, has admitted at the ACCC’s grocery price inquiry that Woolworths’ mark-ups are higher in Australia than New Zealand. Mr Luscombe said the margins are lower in New Zealand because Woolworths is not the price leader there. “We may have to sometimes reduce prices further in New Zealand to make money,” Mr Luscombe said. Woolworths’ New Zealand businesses have not been in operation anywhere near as long as their Australian operations... ...Read more »

Woolworths, Australia’s biggest grocer, has indicated that food inflation for the month of April was well below the figures seen in March. Inflation in the March quarter was registered at 4.5% according to Woolworths’ financial data, well above the 2% figure registered in the first half of this financial year. Woolworths boss Michael Luscombe indicated at the Australia-Israel Chamber of Commerce lunch on Friday that food inflation for April had not been as strong as March. “We’ve... ...Read more »