Coles accused of Irish-made bread ‘con’

PIA AKERMAN
The Australian
July 05, 2012

JEFF Kennett has declared war on Coles, demanding the consumer watchdog investigate the supermarket giant for “deceptive” behaviour by selling imported bread.

The former Victorian premier angrily attacked Coles on radio this morning and declared he was writing to the Australian Competition and Consumer Commission asking for an inquiry into the supermarket’s “predatory” behaviour and labelling of its Cuisine Royale bread.

Mr Kennett said the bread was advertised as “baked today” in-store, but small print on the back of the pack revealed it was made in Ireland.

“This is a con,” he said on Neil Mitchell’s 3AW program.

“I say they are deceptive and misleading in the advertising because it creates the impression that it’s fresh, but it is not.

“They will say we’ve disclosed that it’s an imported product made in Ireland. You can’t read it but it’s there.”

ACCC chair Rod Sims has previously urged food suppliers to provide evidence of “unconscionable conduct” by Coles and Woolworths that could be used in a prosecution.

The consumer body has already received a number of approaches from suppliers complaining about the major supermarkets’ behaviour after Coles and Woolworths escalated their price war on fresh produce, milk and bread, among other products.

Mr Kennett said the bread was an example of Coles and Woolworths using their dominant market position in a “predatory” way to pressure local food manufacturers to reduce their prices.

“They say they support Australian manufacturing – they do not,” he said. “They’re driving them out of the country.

“We run the risk in five years of not having any food manufacturers left because, Neil, no-one is going to invest in new technology, new plant and new equipment.

“It’s a disgrace.”

The Australian Online has sought comment from Coles.

A Senate committee is currently investigating the impact of Australia’s competition regime and the food retail sector on food processors.