Coca-Cola Amatil chief slams supermarkets over aggressive sales practices
19 Feb 2013
Coca-Cola Amatil chief executive Terry Davis has called for a national debate over aggressive sales practices at supermarkets like selling popular product below cost as ''loss leaders''.
Davis, has pledged to support the Australian Competition and Consumer Commission if the regulator's investigation into misuse of market power and unconscionable conduct by the supermarket chains landed up in court, is also opposed to the appointment of an industry ombudsman.
Rather, he would see the government to do more to protect Australian manufacturers.
However, according to Davis, the crisis in the food manufacturing sector was not solely caused by the two big supermarket chains, Coles and Woolworths, which between them account for 70 and 80 per cent of food and grocery sales.
There certainly was room for debate with customers having such market power and it was indisputable that Coles and Woolworths had market power, Davis told The Australian Financial Review.
They had responsibility to use that market power wisely and for the good of their shareholders but also the good of the communities they operated in, just as citizens had the responsibility to be good corporate citizens in the communities they operated in, he said.
