Your say: Bread price wars set to bust bakers 125



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Coles and Woolworths have stooped to a new challenge – putting local bakers out of business, by slashing the price of homebrand bread in their supermarkets to 85c for a 650g loaf.  After decimating the dairy industry, they’ve started a price war with another staple food item and the pressure it places on local bakery businesses is causing uproar.

But today I want to know what you think… Are you pleased to be able to buy your bread cheaper, at just 85c per loaf? Or are you saddened that the large supermarkets will go to such lengths to put competition out of business?

According to various media reports, Woolworths started the price pressure, dropping the price of Homebrand bread last Thursday. Coles quickly copied the manoeuvre, dropping the price of Smart Buy bread on Friday.

The Chief Executive of the Baking Association said “basically it’s a disgrace. All they’re doing is bastardising the industry. Bakers can’t make a loaf for under $1.50,” he said. “It puts the local baker out of business and people out of jobs. Small business doesn’t need this at the moment.”

85c per loaf equates to about 4¢ per sandwich slice.

So have your say today… What do you really want – cheap bread or local bakeries?

Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. While its obviously nice to have bread at 85c a loaf, the cost to other businesses is too great. But what can be done to stop these ‘cannibals’ from eating the rest of the baking industry, I just don’t know the answer to that one, apart from the present customers of the small bakeries keeping their nerve and continuing to buy their bread there. The trouble with that, of course, is the fact that the great majority of bread eaters already get their product from Coles and Woolworths, so they owe no loyalty to the small guy! I suppose the other possible answer is for the small bakers to get together, so they can really bulk buy and bring their costs down that way, but even then they couldn’t go as low as 85c – Coles and Woolworths MUST be selling at a loss to offer this price, and that’s just not fair because they can make up their profits on all their other stock, but a baker only has his bread!

    1 REPLY
  2. I think it’s despicable! !
    It’s not only the bread & milk industries but the local fruit growers as well. Here in WA there are growers ripping out fruit trees because the big 2 are buying the fruit in the East & overseas for less than our growers can produce it for. Now our meat is being bought & packed in the East and bought in also.
    I’ll still buy my bread at the Local Baker, my fruit & veg from local markets & my meat from the Butcher.
    I also get my other grocery items from IGA.

  3. I agree with having cheaper prices but not at the expense of those who are trying to make a living. If the governments of the day can not control the price wars then they should not complain about those being out of work.

  4. I think it is a disgrace. The buying public could easily fix it, boycott the cheap bread, it is probably inferior rubbish anyway.

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    • Like their meat. I paid a heap for heart smart mince last week. Opened it and the outside was bright pinf, and black and smelly on the inside. Cant take it back after you have cooked.

      1 REPLY
      • Margaret, really? C’mon. Why would you cook it when it looked like that after you opened it? Why didn’t you just take it back opened, and try to get your money back?

  5. I buy bakery bread because it is so much better and keeps longer than the cheap nasty supermarket bread. Coles and Woolies would need to lower a lot more than their bread prices to make me want to shop there.

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