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 Action on high food prices
    February 10 2009 at 11:57AM Get IOL on your
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By Joseph Booysen

At least three major retailers have strategies in place to reduce food costs, with Woolworths on Monday announcing the reduction in price of 245 of its food lines.

The savings are on a wide range of products, such as cooking oil, pies, a range of beverages and luxury treats, like wines and cashew nuts.

Other savings are in selected frozen foods, bread, spreads, biscuits, toiletries and sweets.

"This is big. These are significant savings for our customers. Woolworths worked in partnership with our suppliers over the last six months to find ways to reduce the price of hundreds of products," said Julian Novak, divisional director for foods at Woolworths.
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Novak added that Woolworths would never compromise quality or innovation in the food market when reducing prices, as these are "a vital part of the Woolies difference".

"We have cut prices considerably over the last two years and the basic grocery lines like bread, milk and cheese are now extremely competitively priced and often cheaper than other retailers," he said.

Sarita van Wyk, spokesperson for the Shoprite Group, said fuel prices influenced the cost of products to the consumer.

"For this reason Shoprite ploughed back all the fuel savings into its direct delivery cost for perishable items.

"As suppliers calculated fuel costs into the upward spiral of food prices, it is also necessary to bring into account their decreased fuel costs, however small the percentage, into the downward spiral of food prices," she said.

Shoprite had already engaged with major suppliers of basic foods on January 5 this year to try to bring the food prices down, she said.

Last week Pick n Pay CEO Nick Badminton met with suppliers to discuss the possibility of the reduction of high food prices and follow-up meetings have been planned over the next few weeks.


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Showing page 1 of 1 comment pages, 7 total comments
52 Weeks ago Anonymous wrote :
What a pleasure to see the response to the profiteering food industry. The trick now is to keep the momentum and either drive these thieves out of business or at least break their strangle hold on your purse!!!
Take note all of you rip off artists. Joe Public is tiring of your greedy ways!!
52 Weeks ago Anonymous wrote :
its about time instead of P&Pay making noises about talking to suppliers, that they stopped sqeezing the suppliers for excessive rebates, paying towards new stores!!! etc etc. if they lowered their rebate demands etc then suppliers could lower their prices. what a joke that they are the consumers friend!!!
52 Weeks ago Anonymous wrote :
I have been a Spar shopper for years. The big boys about town make out that they are so good and so cheap. They are the biggest theives !!!!!!
52 Weeks ago Anonymous wrote :
Pick `n Pay has becpme a total rip off, just today I bought Rice Crispies 400g for R22.99 and last month the very same was R18.99 at Hyperama?? They no longer increase prices "slowly"but it is a R5-R7 jump on goods. Never mind how they play price games with washing powder, every 2 weeks it`s a different price. I have become a Spar shopper who have amazing specials and would even beat Woolies hands down in the meat Dept!!! The service is even much better!! Today was the last time PNP sees me!!
52 Weeks ago InTheIndustry wrote :
The retailers need to take accountability for a large part of the costs that go into pricing of products from suppliers. It is a little know fact but the retailers charge exorbitant fees to keep products on shelf, promote products, etc, etc, etc which is ultimately paid for by the consumer. If you look at retailers financial results over the last 10 years this will become very clear...
52 Weeks ago Graham wrote :
I will pop in at Woolies tonight & if the price is right then it will go into my basket. It's about time we see a reduction in prices - meat, oil and fruit & veg have become ridiculously priced.
52 Weeks ago ex Pick 'n Pay supporter wrote :
I have always shopped at Pick 'n Pay but I think their prices leave much to be desired lately. I bought ground coffee for R40 for from them just to find that in Jan it was R55 (even today still) whereas I can get the same coffee at Spar for R40. Makes you think .... How can they increase that product by R15 in a month? This has made me now go to Spar for their specials far more often! Pick 'n Pay lower the price for something but increase another product (quietly??) to make up for the reduced price? No thank you Mr Ackerman I am not a loyal supporter of yours anymore.