Developing a Culture of Bullying or Worse
Monday, 26th November, 2007
- David Farmer
Listen to the full interview courtesy 2GB
In 1974 the government passed the Trade Practises Legislation which among many things brought an end to retail price maintenance and tried to level the playing field with a set of rules so everyone could compete fairly. It has been very effective and in the liquor industry has saved consumers billions of dollars. What then do you think of this exchange on the radio station 2GB on 1st November, 2007?
Ray Hadley (RH) is the voice of 2GB from 10.00AM to 1.00 PM with a fast moving current affairs programme. He is talking to Alan de Costa (AC) manager of a group of 300 small independent liquor stores who trade across N.S.W. under the banner Local Liquor. Alan has a vast experience in food and liquor and has operated out of Canberra for many decades. I have extensively abbreviated the exchange.
RH ...Tell me if I have got it wrong. Wolf Blass on special at Local Liquor $6.99.. normally retailing closer to 11 or 12 bucks. A one of special.. You buy this from Fosters and then all of a sudden the 'whadda you call it' hits the fan..
AC ..Got a phone call from the key account manager who looks after me and he asked me to put the price up from $6.99 to go $7.99.. no we are happy with the price we are going... he said if you stay at $6.99 it will cause a huge problem with Woolworths and Coles and they will spit the dummy. I’m not changing my price. we are running a red-hot special..
RH ..They found out about this because one of your operatives said to a Fosters rep... we have a beaut special coming up on Wolf Blass. This filtered back to head office...
AC Got to head office.. and they gave me a ring...
RH ... What happened next..
AC ... Well they pretty much said we may have to review our case allowances or our discounts we give you if you going to go to such a ridiculous price. And then they said I’m going to have to report it back to my fellow colleagues who look after Woolworths and Coles so they get notified of this price...
RH ....So they would tip off Woolworths and Coles - to in other words warn them.. and they would probably put it down to $6.79 or something..
AC Or pull it off the shelves...
RH Is this anti-competitive...
AC ..It certainly is. Without a doubt..
AC ..Suppliers offer us a discount and then if you sell it to cheap we won’t give you the discount.
AC ..Every week I would have a conversation with manufactures who do not want us to go to cheap as it will upset Woolworths and Coles.
end quote
From my own experience I would say that bullying from liquor representatives over maintaining price points has never been so prevalent as it has been since about 2000 and remember they do what they are told. Some have been stupid enough to send emails. Where is the pressure coming from?
Recall the great rules of retailing. All retailers want an exclusive product that all customers want. Of equal importance is price and if you can control the price which means always being cheaper, you have the recipe for success. It cannot be easy selling to goliaths like Woolies and Coles and the guardian consumers have is the ACCC and they may not have been vigilant enough. As far as liquor retailing in Australia is concerned the ACCC should know that while there are 20,000 other outlets to service customers none have any buying power at all.
You can listen to the full interview below or download the mp3 courtesy of 2GB here...
R E C E N T
2 0 1 4
2 0 1 3
2 0 1 2
2 0 1 1
2 0 1 0
2 0 0 9
2 0 0 8
2 0 0 7
2 0 0 6
2 0 0 5
2 0 0 4
Censored by Wine Australia Part 4: Greetings at a Barossa Lunch Saturday, 7th August, 2017
Problems with Wine Australia Article on Coonawarra Saturday, 31st December, 2016
Censored by Wine Australia Part 3: Wine Australia Takes Away the Right of Free Speech Plus Threatens Jail Saturday, 26th November, 2016
Censored by Wine Australia Part 2: Wine Australia Wants to Censor Glug Thursday, 20th October, 2016
Censored by Wine Australia Part 1: Surprise Email from Wine Australia Creates Concerns Thursday, 29th September, 2016
Sophie Seppelts Said We Would Never Die but History Proved Unkind Friday, 24th April, 2015
The South Australian Grenache Story Wednesday, 4th December, 2013
The Wine Trade Moves to Blacktown Tuesday, 17th September, 2013
What Sort of Wine Company Should Treasury Be? Tuesday, 17th September, 2013
The Epitaph for Eliza Lindeman reads Became Skinny Girl Wednesday, 10th April, 2013
A Brief History of Mataro in Australia Friday, 8th March, 2013
The Wine Merchant on a Sunday Afternoon Friday, 1st February, 2013
Why Oh Why Do We Destroy Our Wine Heritage? Wednesday, 5th September, 2012
Why Oh Why Do We Destroy Our Wine Heritage? Wednesday, 5th September, 2012
Inviting A Tax Rise Tuesday, 29th May, 2012
The Suffocating Hug of a Big Bear Friday, 18th May, 2012
The Return Of The Tied House Thursday, 3rd May, 2012
Selecting the Name for a Wine Wednesday, 11th April, 2012
The Australian Wine Research Institute Annual Report, 2011, Gets Me Thinking Friday, 2nd March, 2012
Rethinking the Shape of a Diamond Wednesday, 22nd February, 2012
Grooming the Eagle Image at Wolf Blass Sunday, 18th December, 2011
The Shape Of The Australian Wine Market - What The Figures Tell Sunday, 11th December, 2011
The Liquor Wars - This Time It's Different - Part 5 Wednesday, 5th October, 2011
Treasury Wine Estates Seeks Government Help To Kill Competitors Thursday, 22nd September, 2011
Treasury Sells 33 Million Cases to Make $2.00 a Case Tuesday, 6th September, 2011
The Liquor Wars - An Upheaval: The Trade Practices Act 1974 - Part 4 Tuesday, 9th August, 2011
The Liquor Wars - Neutered by Coles and Woolworths - Part 3 Monday, 4th July, 2011
Treasury Wines, Koochie Koochie Koo and the Squealing Pig Thursday, 23rd June, 2011
The Liquor Wars - Woolworths Crush a Dismal Coles - Part 2 Sunday, 5th June, 2011
Coonawarra and the Changing Facade of Australian Wine Wednesday, 25th May, 2011
The Liquor Wars Woolworths vs Coles 2011 Part 1 Monday, 9th May, 2011
Serious Error by Schild Estate, Barossa Valley Wednesday, 20th April, 2011
Gossip from Coonawarra Wednesday, 20th April, 2011
Changing Tastes - Looking Ahead 2011-2036 Thursday, 7th April, 2011
Western Australia and Show Trophies Monday, 14th March, 2011
News from Padthaway Thursday, 3rd March, 2011
Downy Mildew – The Curse of 2011 Sunday, 13th February, 2011
Treasury (Fosters) Spits the Dummy in U.K. Saturday, 5th February, 2011
The Changing Taste of Wine 1984 to 2010 Wednesday, 12th January, 2011
Sadness Over Thomas Hardy Thursday, 23th December, 2010
Does Rosemount Have a Future? Monday, 13th December, 2010
The ACCC takes a Very Risky View on a Grocery Purchase Monday, 6th December, 2010
From $0.40 to $51,638 Thursday, 18th November, 2010
The Top 25 Wines Sold in Australia from AC Nielsen Tuesday, 2nd November, 2010
Wrong Directions on the Taste of Wine Friday, 17th September, 2010
The Troedel Wine Label Collection - State Library of Victoria Friday, 4th June, 2010
Burning Money at Fosters Tuesday, 1st June, 2010
Merging McGuigan and Hardys - Did it Ever Make Sense Tuesday, 13th April 2010
An Update on Our Love of Sauvignon Blanc and Similar Blends Friday, 9th April 2010
It's a Lifestyle Product Tuesday, 6th April 2010
Up Date on the Liquor Wars Friday, 26th March 2010
They Have Got To Be Joking Tuesday, 19th January, 2010
Fosters - What is There to be Optimistic About Thursday, 7th January, 2010
Questions from the 160th Anniversary at Yalumba Saturday, 2nd January, 2010
Wild Yeasts, Riccadonna, Marlborough and Fosters Wednesday, 2nd December, 2009
Marlborough Sauvignon Blanc Labels Multiplying Wednesday, 25th November, 2009
Ten out of 100 for Australia Wednesday, 25th November, 2009
The Barossa's Approach to a Crushing Problem Wednesday, 11th November, 2009
Fosters New Maths-2+2+1=2 Friday, 30th October, 2009
What a Miserable Week Monday, 26th October, 2009
Soaring New Zealand Exports to Australia Friday, 7th August, 2009
Remembering Harry Brown - Wine Merchant Salesman 1918-1999 Monday, 27th July, 2009
Our Export Sales are Slumping - Why? Monday, 20th July, 2009
The Big Get Bigger Wednesday, 1st July, 2009
Bad News Begins to Spread Sunday, 31st May, 2009
A New Business Initiative from Fosters Wine Monday, 27th April, 2009
Keeping a Straight Face at Fosters Friday, 24th April, 2009
Thoughts on the Industry's 'Directions to 2025', Part 2 Thursday, 2nd April, 2009
What is the Game Now for Our Large Companies? Thursday, 26th March, 2009
What Ever Happened to Rosemount? Friday, 27th February, 2009
The End of Another Wine Review at Fosters Friday, 27th February, 2009
The State of Play - The Local Wine Market Sunday, 22nd February, 2009
First They Trashed The Grange Brand, Now A Great Man's Name Wednesday, 4th February, 2009
A Snap Shot of the Australian Wine Industry Sunday, 1st February, 2009
A Beat-up From Coonawarra Monday, 26th January, 2009
Anyone Want a Winery? Thursday, 22nd January, 2009
Hardys Changes its Name to Constellation Monday, 15th December, 2008
New English Critics in the Steps of Dr. Thudicum Thursday, 27th November, 2008
Woolworths Liquor Powers Ahead Thursday, 9th October, 2008
An Address to the Shareholders of Fosters Wednesday, 9th July, 2008
Is the Wine Industry Up Itself? Sunday, 6th July, 2008
Are the Good Times Over? Tuesday, 17th June, 2008
Goodbye Trevor O'Hoy Wednesday, 11th June, 2008
Chardonnay in Australia - A Short History Monday, 3rd March, 2008
A Note on Barramundi - A Great Brand Sunday, 24th February, 2008
Applause for Wine Exports Monday, 21st January, 2007
A Curious Fact You Learn from Wine Casks and Other Observations Monday, 17th December, 2007
How Many of These Have You Seen at BWS or Liquorland? Monday, 17th December, 2007
Fosters Says International Wine is our Leading Growth Category Tuesday, 11th December, 2007
Developing a Culture of Bullying or Worse Monday, 26th November, 2007
Wine Imports on the Rise Tuesday, 20th November, 2007
Wine Casks Slowly Decline Thursday, 15th November, 2007
Seppeltsfield Finds a Buyer Monday, 17th September, 2007
The Twenty Golden Years of Kaiser Stuhl Sunday, 9th September, 2007
Fosters Wines Become Woolies and Coles House Brands Friday, 7th September, 2007
McGuigan Relaunches Passion Pop Friday, 31st August, 2007
Trends from the Lion Nathan July, 2007 Market Briefing Friday, 24th August, 2007
Finally, the Bank Moves In Friday, 24th August, 2007
No Penola Without Penola Friday, 24th August, 2007
Money Awarded on Merit to Find a Name Sunday, 19th August, 2007
Thoughts on the Industry’s 'Directions to 2025', Part 1 Thursday, 16th August, 2007
A Review Full of Compliments Tuesday, 14th August, 2007
A Refreshing Change Tuesday, 14th August, 2007
A Surprise from the Lion Nathan Wine Group Monday, 6th August, 2007
Wolf Blass Goes for Plastic Monday, 30th July, 2007
We Have 515 Wines For Sale Tuesday, 3rd July, 2007
Peering into the Future for Australian Wine Monday, 7th May, 2007
Better Than Expected Friday, 27th April, 2007
So You Want to Own a Winery Thursday, 26th April, 2007
Another Belated Sceptical View of Foster’s Wednesday, 25th April, 2007
The Family Name Changes Hands Friday, 20th April, 2007
The U.S. is Now Our Biggest Market - What Does This Tell Us? Thursday, 12th April, 2007
The Slow Sale of Seppeltsfield Thursday, 5th April, 2007
The Difference a Decade Makes Wednesday, 14th February, 2007
Tough Times for Australian Wine Saturday, 27th January, 2007
Have Wine Sales Peaked? Sunday, 14th January, 2007
A Judge Looking at Life Through Riedel Glasses Thursday, 7th December, 2006
The Graveyard of Australian Brands Thursday, 9th November, 2006
Artisans of Barossa Monday, 6th November, 2006
Jack Frosts Roll Over Vineyards Friday, 27th October, 2006
The Mysteries of Preparing a Wine for Bottling Friday, 20th October, 2006
A Label Story - Zontes Footstep Wednesday, 7th September, 2006
If at First You Don’t Succeed Tuesday, 29th July, 2006
Market Says Fosters on Track Tuesday, 29th July, 2006
The Dangers at Fosters Monday, 24th July, 2006
Plastic and Cork Friday, 21st July, 2006
Fosters Means Beverages Not Beer Sprits and Wine Monday, 17th July, 2006
Running Harder to Stand Still Friday, 14th July, 2006
Seppelts and Seppeltsfield and a Correction Tuesday, 11th July, 2006
The Quiet Repositioning of the Rosemount Brand Friday, 7th July, 2006
Reflections on a Seppelts Fortified Dinner Wednesday, 5th July, 2006
Fosters Continues the Easy Part - Chopping Out Costs Sunday, 2nd July, 2006
The Boundary of Coonawarra, Part II Monday, 19th June, 2006
Slow Progress on a Nervy Business Thursday, 15th June, 2006
Another Hurdle Jumped in E&T Survival Race Wednesday, 14th June, 2006
The New Wines of Coonawarra Tuesday, 13th June, 2006
Bad News for the Export of Premium Australian Wines Wednesday, 7th June, 2006
Crisis in the Vineyards and a Solution Tuesday, 6th June, 2006
Brian's Okay, Thanks to Macquarie Bank Wednesday, 31st May, 2006
Oh Coonawarra - Why Did You Do This to Yourself? Wednesday, 24th May, 2006
A Little Sling from Singapore Wednesday, 24th May, 2006
How Did Coonawarra Lose Its Way? Monday, 22th May, 2006
The Big Box Liquor Battle - An Update Monday, 15th May, 2006
What is a Wine Brand Worth - The Lesson of Rosemount Friday, 12th May, 2006
A Sign of Tough Times When $159 a Tonne Gives Satisfaction Tuesday, 18th April, 2006
WA Export Record for Palandri Thursday, 13th April, 2006
A Dose of Reality from Hardys CEO David Woods Wednesday, 5th April, 2006
Sell a Winery, Any Winery Will Do Wednesday, 8th March, 2006
Export Volume to Grow but Prices to Fall Wednesday, 8th March, 2006
What Goes Up Must... Tuesday, 7th March, 2006
Faith Needed at Dromana Saturday, 25th February, 2006
No News on the McGuigan Simeon Website and No Wonder Saturday, 25th February, 2006
A New Twist to Selling Cleanskins Friday, 24th February, 2006
Directors to be Asked to Repay Wine Investors? Thursday, 16th February, 2006
Give the Dog a Beaune Thursday, 16th February, 2006
A Gunner or a General? Thursday, 16th February, 2006
Houghton to Help Along Premium Sales in the USA Thursday, 9th February, 2006
The Ups and Downs of Domestic Sales Monday, 6th February, 2006
Grape Surplus Not Just an Australian Problem Saturday, 28th January, 2006
Where Australian Shiraz Began Saturday, 28th January, 2006
Not Us Says Palandri Limited Tuesday, 3rd January, 2006
Evans and Tate Buys Time Tuesday, 3rd January, 2006
Dromana to Raise New Capital Tuesday, 3rd January, 2006
Palandri Another Unwins Casualty Wednesday, 21 December, 2005
Unwins Into Administration: Where Goes Dromana? Tuesday, 20th December, 2005
Dromana Estates a Casualty? Friday, 16th December, 2005
Outback School a McGuigan Victim Thursday, 15th December, 2005
Wine Investment Horror Continues Thursday, 15th December, 2005
Hop Into Wooloomooloo Thursday, 15th December, 2005
Seven Long Years Ago Monday, 12th December, 2005
Grape Growers Consider Legal Action Monday, 12th December, 2005
Worthless Contracts With McGuigan Monday, 5th December, 2005
And the Cash Drain Goes On Friday, 2nd December, 2005
Storage Shortage in California and Australia Too? Wednesday, 30th November, 2005
A Global Gamble at Four Tenths of a Cent Wednesday, 30th November, 2005
Simon Gilbert Expands with Cassegrain Purchase Tuesday, 29th November, 2005
The Liquid is 35 Cents a Litre Tuesday, 29th November, 2005
Laying the Foundation for an Explanation? Thursday, 24th November, 2005
McGuigan Signals Even Tougher Times for Grape Growers Thursday, 24th November, 2005
Farewell White Burgundy, Welcome White Classic Tuesday, 22nd November, 2005
An American Takes Charge Tuesday, 8th November, 2005
Stocks on the Rise Tuesday, 8th November, 2005
Taking the Temperature of Jacob's Creek Thursday, 27th October, 2005
So Far So Good for Barossa Vintage Wednesday, 26th October, 2005
Taking a Gamble on McLaren Vale Thursday, 20th October, 2005
Grapes Priced at Less than Production Cost Monday, 17th October, 2005
Receiving a Risk from Foster's Friday, 7th October, 2005
A Zork in the USA Thursday, 29th September, 2005
Brand Launches Aplenty Thursday, 29th September, 2005
Contract Price Lowered Friday, 23rd September, 2005
The Xanadu Remnants Just Lingering On Monday, 19th September, 2005
A Bird Wine But Will it Fly? Thursday, 15th September, 2005
Dividend Cut at Cockatoo Thursday, 15th September, 2005
Bad News Not Over Yet Wednesday, 14th September, 2005
The End of an Export Profit Bonanza Wednesday, 14th September, 2005
A Hard Year Ahead at McGuigan Simeon Tuesday, 13th September, 2005
A Prediction Fulfilled Saturday, 10th September, 2005
Vale Southcorp Saturday, 10th September, 2005
Becoming Like Godot Saturday, 10th September, 2005
Foster's Continues the Tidy Up as Growers Stay Nervous Saturday, 10th September, 2005
An Expanding Success Story Friday, 9th September, 2005
Showing the French How Thursday, 8th September, 2005
Giving Wine the Status of Soft Drink Tuesday, 6th September, 2005
Settlement Reached On Long Flat Brand Monday, 5th September, 2005
Waiting for Evans and Tate Saturday, 3rd September, 2005
Mixed Responses to Foster's Result Wednesday, 31st August, 2005
So Far So Good at Fosters Tuesday, 30th August, 2005
A US Listed Property Developer Enters the Wine Game Monday, 29th August, 2005
What a Difference Five Months Make Saturday, 27th August, 2005
No Report from Evans & Tate but a Special on its Premium Wine Saturday, 27th August, 2005
Consumers Disagree with Wine Experts Saturday, 27th August, 2005
Woolworths has Bolted - Coles a Distant Second Thursday, 25th August, 2005
Tailgating With the Adelaide Crows Tuesday, 23rd August, 2005
Up to the Governor Tuesday, 23rd August, 2005
A Million Penguins Friday, 19th August, 2005
A Non Speaking Chairman and No Wonder Wednesday, 17th August, 2005
One Small Step for Lion Nathan Wine Thursday, 11th August, 2005
Barking up the Wrong Tree: The Retreat from Cork Gathers Pace Thursday, 11th August, 2005
Two Giants Judge Port Tuesday, 9th August, 2005
Knife and Fork Wines Thursday, 4th August, 2005
Tough Going for Wine Industry Minors
Thursday, 4th August, 2005
Solid Growth Continues for Jacob's Creek Monday, 1st August, 2005
More News on the South Australian Grape Crisis Monday, 1st August, 2005
Tough Time to Start but First Little Sign of Improvement Tuesday, 26th July 2005
A Shift from a Sellers Market to a Buyers Market Sunday, 24th July, 2005
A Stamp of Approval Wednesday, 20th July, 2005
Deloitte Finds Losses Aplenty Wednesday, 20th July, 2005
Take a Risk With a Good Name Tuesday, 19th July, 2005
Should the Grange Have Been Made and Henschke's Barnyard Character Friday, 15th July, 2005
One Small Step - New York Changes Friday, 15th July, 2005
Tallarook Use Old Ideas for New World Wines Tuesday, 12th July, 2005
Sometimes We Are Just So Silly Thursday, 7th July, 2005
The Disappearing Barramundi Wednesday, 6th July, 2005
A $222 Million Loss of Value in a Year Monday, 4th July, 2005
The Wine Investment Scandal: An Update Monday, 4th July, 2005
What Australia Drinks: the Spirits Come Back Tuesday, 28th June, 2005
Xanadu Hardly Idyllic for Shareholders Tuesday, 21st June, 2005
Export of Sommeliers Needed Tuesday, 21st June, 2005
Yellow Tail the Trendsetter Wednesday, 15th June, 2005
Cleaning Corked Wine Wednesday, 15th June, 2005
Stelvins for Adelaide Wednesday, 15th June 2005
Straight Talking By the Man From Thomas Hardy Tuesday, 7th June, 2005
The Downward Price Vortex Gathers Speed Sunday, 5th June, 2005
Trying Until the End Wednesday, 2nd June, 2005
What a Difference a Year Makes to SGARA Thursday, 19th May, 2005
Holding up Well – All Things Considered Tuesday, 10th May, 2005
One for the Brave Investor Sunday, 8th May, 2005
We Talk with U.S. Importer Peter Weygandt Friday, 29th April 2005
Ned Kelly Rides In Wednesday, 27th April 2005
More on that Disappearing Wine Tuesday, 26th April 2005
Wine Investment Takes Another Knock Friday, 22th April 2005
Let the Hard Work Begin Friday, 22th April 2005
Will a Desperate Company do a Desperate Thing? Wednesday, 20th April 2005
Nearly Half are Yellowtails Tuesday, 19th April 2005
The Smell of Death Thursday, 7th April 2005
Fake Medals to Go Thursday, 7th April 2005
An Update on Australian Wines in the U.K.Market Saturday, 2nd April 2005
A Peep Behind the Wine Show Door Thursday, 17 March 2005
Downward Wine Price Pressure Continues Thursday, 17 March 2005
Make Me Some Clean Skins Wednesday, 16 March 2005
The Foster’s-Southcorp Game of Bluff Thursday, 10th March 2005
Greg Norman Back on the Winning List Tuesday, 8th March 2005
Bridget Jones Enters the Wine Marketing Lexicon Saturday, 12th February 2005
Mine is Bigger than Yours Friday, 11th February 2005
Bridget Jones Enters the Wine Marketing Lexicon Saturday, 12th February 2005
No Surprises from Foster's and Southcorp Wednesday, 9th February, 2005
Jacob's Creek and Wyndham Estate Feel the Pressure Saturday, 5th February, 2005
A Wine Merchant’s Warning Monday, 31st January 2005
Drinkers Will Smile and Investors Frown Friday, 28th January 2005
Great News For Southcorp Shareholders - the Bid is for Cash Monday, 17th January, 2005
A Record to Inspire Confidence? Friday, 14th January, 2005
A Terrible Botch at Takeovers Thursday, 13th January, 2005
Doctors Keep Pressing for Increased Wine Tax Saturday, 25nd December, 2004
Wine Comes to the Big Screen Wednesday, 22nd December, 2004
American Journalists Must be Wine Drinkers Tuesday, 14th December, 2004
Memories of 1905 Tuesday, 14th December, 2004
ABARE Report Shows Meagre Returns for Grape growers Monday, 15th November, 2004
The Value of a Brand Tuesday, 9th November, 2004
What Governments Give... Thursday, 28th October, 2004
Hot Weather to the Rescue Tuesday, 26th October, 2004
The Battle for Pubs Tuesday, 19th October, 2004
Back to Being a Cash Cow Good News for Investors Tuesday, 19th October, 2004
Another $70m of Embarrassment for Foster’s Group Wednesday, 13th October, 2004
A Good Idea at the Time Friday, 1st October, 2004
How do You Grow a Wine Company While Cutting Vineyards and Stock? The Answer is: Tuesday, 2nd September, 2004
Glug visits the Adelaide Wine Show Friday, 8th October, 2004
The Price Of Being One Industry Tuesday, 29th June, 2004
Cork Amnesty – The Move to Screw Tops Continues Apace Thursday, 16th October, 2004
Coming to a Bar Near You? Wednesday, 8th September, 2004
Andrew Garrett Goodbye? Tuesday, 24th August, 2004