Coles and Woollies are bullying winemakers too: departing Winemakers’ Federation chief

Amid accusations that Coles and Woolworths are intimidating food manufacturers and produce growers so much they are too scared to even speak up at a Senate Inquiry, a leading Australian wine body has publically criticised the big two.

The anti-competitive and bullying behaviours of Coles and Woolworths are well known, and while countless food producers have discussed the damaging impacts of the supermarket duopoly on business with Food Magazine and other media outlets, almost all are too afraid to go on the record with their stories.

After it publically slammed the control the two supermarkets have on business more than once last year, Heinz declared on Friday that the relationships have improved significantly.

The comments come after a Heinz spokesperson told Food Magazine earlier this year that they were “trying to distance ourselves,” from the much-publicised criticism, which included  chief financial officer and executive vice president, Arthur Winkleback labelling the Australian supermarket environment “inhospitable.”

Now it’s the winemakers turn to publically oppose the behaviours of the major supermarkets, while everyone waits with bated breath to see if and how Coles and Woolworths will also punish them.

The supermarkets’ have both been accused of creating a culture of fear and intimidation among local wine producers, just as they have done in the food sector.

Stephen Strachan, who finished his role as the chief executive of the Winemakers’ Federation of Australia on Friday, would only speak to The Sun-Herald after his position had ended, which is inductive of the silo of silence in the industry.

''If you're an individual company that speaks out against them or says anything publicly that criticises their tactics, they would have no hesitation in giving you a holiday from their shelves and that is what's creating a culture of fear and compliance in the industry,'' Strachan said.

''Whenever I've made comments in the press, I could only talk about retailers in a generic sense, but they [Coles and Woolworths] would religiously follow up on those comments and make it known they were displeased.

According to Strachan, the bullying is not only felt by local winemakers and Coles and Woolworths also flexes its power over foreign suppliers.

Furthermore, he said, they also collect sensitive commercial information from wine producers, and use that information to bully rival suppliers into selling for lower prices during negotiations.

Food Magazine has contacted both Woolworths and Coles for comment on the accusations, but neither has responded at this stage.

 

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