thoughts for 2014, page-11

In relation to MCP's supermarket category it appears that it is brutal out there for suppliers.

Whilst the following relates to NZ it will equally apply to Australia. For reference, Countdown (the supermarket involved) is owned by Woolworths.

Link: http://www.interest.co.nz/news/68457/labour-mp-shane-jones-accuses-countdown-parliament-corruption-racketeering-and-acting-ton

Choice quote:

"He said a number of firms had contacted him and related being ordered to meetings with managers of the Countdown chain, who had then related that profit margins had not met shareholder expectations and they wanted more from suppliers....They are demanding from Kiwi businesses backdated cheques..."

It's a big deal over here in NZ presently that NZ suppliers are being told to F'off by Aussie supermarkets and being denied shelf space. I would suggest that MCP is also being subjected to very tough conditions by the duopoly.

I no longer hold MCP but thought you guys might be interested.

Cheers
John