Dick Smith is doing his bit to ensure the survival of Australian food businesses, opening a store exclusively stocking local products.
The entrepreneur’s General Store in Belrose, on Sydney’s northern beaches will is showcasing quality food products from small regional markets from around the country, Manly Daily reports.
The recently opened store also launched online ordering last week.
Smith says the store aims to stop the “foreign invasion,” of cheap food products putting Australian operations out of business and restart the industry that was once valued at $80 million.
Shoppers will be able to purchase items sources directly from the producers, including cordials from Queensland, toffees from South Australia, honey from Tasmania and salts from Victoria.
Smith said he is optimistic about the future for the industry, and believes the major supermarkets may not have their strategies right.
“It was an absolute feeding frenzy from customers hungry to do their bit to support battling Australian farmers and food producers,” he said.
“The major supermarkets keep telling me that all Australian consumers want is the cheapest.
“However, in the space of an hour almost all our stock of magnificent Australian gourmet products had sold out and our website had crashed.”
Numerous Australian food manufacturers have closed their doors or sent their operations offshore, as the cost of doing business here rises and companies can’t compete with cheaper private-label brands.
HJ Heinz has been one of the more vocal of the disappointed and angry industry, with the company’s chief financial officer and executive vice president, Arthur Winkleback telling US analysts in August that the demise of many Australian companies can be attributed to the supermarket war and said they have created an “inhospitable environment” for manufacturers.
In November executive chairman, chief executive and president William Johnston told investors the company has had to overhaul its business strategy in Australia to deal with the supermarket dominance of Coles and Woolworths.
Johnson labelled Australia the “worst market” in June, saying Australian consumers would be the “biggest losers” from the decision to strip branded products.
Woolworths and Coles have announced plans to increase the presence of private-label products available on shelves, despite a report finding that if the current supermarket environment continues, 130 000 of employees from the food and grocery sector alone will be out of work by 2013.
They’ve also been accused of deliberately copying well-known packaging to confuse consumers.
Image: Dick Smith Foods