According to a number of media reports, Coles has lost Round 1 in its Mexican standoff with Campbell Arnott's, with the supermarket giant accepting price rises on dozens of products after the biscuit maker held its much-loved Tims Tams hostage.
Campbell Arnott's warned Coles earlier this year that due to increased production costs, it planned to lift its prices by between two and 10 per cent on a range of common biscuit snacks, including Tim Tams, Scotch Fingers, and Monte Carlo biscuits.
In what could only be described as crumbling in the face of a more powerful brand, Coles had little choice but to accept Arnotts's demands.
A Coles spokesperson said: “Coles has made a commitment to bring down the cost of shopping for our customers, and we have been doing that every year for the past six years.”
“So when a major international manufacturer decides they will unilaterally force through a price hike without justification, we will resist that.”
This chocolate-encrusted standoff lasted for almost two weeks before Coles caved in and agreed to pay an increased price on 44 Arnott's biscuit lines.
However the bean counters at Arnotts didn’t have it all their own way as Coles has refused to pay more for 14 other products, which have since been removed from its shelves.
This includes six varieties of Tim Tams, including a range of flavours designed by Adriano Zumbo as well as other well-known Arnott’s biscuit varieties.
“Our average family shopper spends around $150 per week on food and groceries, and they don’t have the spare cash laying around to give to Campbell’s-Arnotts every time they decide to put their prices up,” noted the spokesperson in an attempt to explain this move.
So while Arnott’s may have won this round, the fact remains that Coles has also used the power of its brand and shelf space to show the biscuit maker that it will not tolerate being held to ransom.
The deleted biscuit lines are:
Tim Tam Zumbo Coconut Cream 165 gram
Tim Tam Zumbo Choc Raspberry 165 gram
Tim Tam Zumbo Salted Caramel 171 gram
Chocolicious Tim Tam Multipack: Caramel 191 gram
Chocolicious Tim Tam Multipack: Dark 187 gram
Chocolicious Tim Tam Multipack: Original 187 gram
Twisted Faves Monte Carlo: Salted Caramel 250 gram
Twisted Faves Shortbread: Strawberry Cream 250 gram
Arnott's Chocolate Biscuits: Royal Dark 200 gram
Arnott's Cheeseboard