Supermarket Suppliers To Face Inquiry

The Age

Tuesday April 1, 2008

Vanda Carson

THE competition watchdog has summonsed some of the country's biggest supermarket suppliers, including those who dominate the sale of staples such as chicken, coffee, ice-cream and bread, to answer questions as part of its investigation into competition between grocery retailers.

Chicken giant Ingham, coffee and ice-cream maker Nestle, bread supplier George Weston, biscuit maker Arnotts, toiletries maker Kimberley Clark and property company Stockland will appear today or tomorrow as part of the inquiry.

None of the suppliers, apart from Arnotts, provided written submissions to the inquiry, although more than 100 other interested parties have made their views known.

It is believed that many suppliers are unwilling to speak out for fear of putting the retailing giants off-side.

The Australian Competition and Consumer Commission is investigating whether market barriers are hindering the entry of new players into the grocery market to compete against Woolworths, Coles and Metcash-owned IGA.

The ACCC hopes to learn what the best approach should be to dealing with one of the world's most concentrated grocery industries.

-- VANDA CARSON

© 2008 The Age

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