On the original allegations against Countdown, I’ve praised Shane Jones for the work he did in exposing their allegedly ugly tactics of asking for retrospective payments from suppliers. I don’t think such a practice (if it happens) should be condoned.
But yesterday, it turned into almost a smear campaign against Countdown. They were accused on TV3 of everything from threatening a select committee, to bullying competitors also, to bullying Councils to shock horror selling Lotto tickets. I think a line has been crossed, and we are now just seeing a degree of mindless bashing.
Let’s look at the various stories, starting with the Mad Butcher stores:
Now, chief executive of the Mad Butcher Michael Morton told The Nation Countdown does not just bully its suppliers but also its competitors.
“I believe they have a cultural billing within the whole organisation,” he said.
“If you look to the information that came out and the allegations that were made about the supply and the tactics that were done there. The fact that when we do any comparative advertising to them, we get smashed with lawyers letters. They come down like a sledge hammer.”
There’s a key fact missing from that story. As much as I love the Mad Butcher, in this case his (former) stores are the bad guys. You see their advertisements were found to be false and misleading by the Advertising Standards Authority:
The Mad Butcher’s advertising that claimed to have cheaper meat than Countdown has been labelled “misleading” and “likely to deceive”.
Earlier this year, The Mad Butcher ran print, television and radio advertisements claiming “Jo from Onehunga”, a randomly selected shopper, paid 30 per cent more for lamb chops, schnitzel, mince, pork chops and eye fillet steak at Countdown than at The Mad Butcher.
But an Advertising Standards Authority decision released on Monday upheld the complaint of Progressive Enterprises Limited, which owns Countdown.
The decision said the ad was not comparing like for like as no basket shop was undertaken by Jo, four out of five products in the Countdown basket couldn’t be purchased at the time, and 1kg meat packs couldn’t usually be bought at Countdown.
The Countdown prices given were from Onehunga, and weren’t reflective of national pricing, it said.
“The advertisements made comparisons that were likely to mislead or deceive consumers,” it said.
“The advertisements falsely claimed a price advantage in this instance.”
I’m sorry, but no sympathy. You tried to deceive consumers about your prices, and your competitor complained your advertisements were false and misleading. That isn’t bullying. That’s just good sense.
Then the next bash was shock horror they sell Lotto tickets:
Labour MP Shane Jones has again taken aim at Countdown, raising concerns about lotto sales at the supermarket’s checkouts.
Lotto tickets are being sold despite new evidence that people spend less on food when there is a big jackpot.
You can now buy lotto at the checkouts in 100 Countdown supermarkets around the country. That makes buying a ticket more convenient, but Mr Jones says that is the problem.
“With Countdown putting a one-armed bandit at every Countdown checkout counter, you’re bringing gambling into the community,” says Mr Jones.
That’s just pathetic. I’ve been buying lotto tickets at New World for over a decade. Why is it fine at one group of supermarkets, but not another? This is just smearing Countdown.
Mr Morton says the lotto jackpot should be capped, and Mr Jones agrees the jackpot can get too big. But he says the availability is the real problem.
“I really want to have an immediate review of the Gambling Act,” says Mr Jones. “Is it really in society’s interests to have lotto and gambling available at every checkout counter in the Aussie-owned supermarket?”
Now we’re getting effing ridiculous. Shane Jones wants to cap the size of the jackpot for Lotto? He should go join the Green Party.
And he think lotto tickets can be sold in supermarkets, so long as they are not owned by Australians? This is just xenophobic bashing.
And to answer his question, yes it is in society interests that hundreds of thousands of New Zealanders who enjoy Lotto can buy tickets conveniently for it. Apart from the enjoyment they get from it, money from Lotto funds Sport NZ, Creative NZ, the NZ Film Commissions and thousands of community groups. They get almost $200 million a year from people voluntarily playing Lotto.
Then we have Jones making things up about a threat:
Labour MP Shane Jones has accused Countdown of threatening a parliamentary committee with legal action, amid an investigation into extortion allegations.
Mr Jones made the allegations on The Nation this morning, claiming a letter threatening legal action against the commerce select committee is “around”.
But both Countdown and the committee deny the existence of a threatening letter, the latter labelling Mr Jones’ allegations “obviously” wrong.
“I am not sure how Shane knows about that… but he is obviously wrong,” commerce select committee chairman Jonathan Young told NZ Newswire.
The so called threatening letter merely asks for a transcript of the last hearing – which is a routine request.
And finally we had complaints that Countdown are appealing against decisions imposing hours on beer and wine sales that are more restrictive than the national default hours:
Well in many cases they fighting against what a lot of councillors do and that is to limit the sale of alcohol in supermarkets. The default position is from seven a.m to 11 p.m. Most councillors in New Zealand are adopting a nine a.m to nine p.m approach and in some cases Countdown in particularly and Progressive have appealed that on the basis that they want it to be open to 11 p.m.
I actually support Countdown on this issue. All you do by restricting beer and wine sales to 9 pm is annoy a lot of late night shoppers who can’t buy a bottle of wine with their groceries. Many Councils are falling into the trap of not distinguishing between specialist bottle stores and supermarkets. If you go to a bottle store at 10 pm, you are almost inevitably buying alcohol to drink immediately. But if you are buying alcohol from a supermarket at 10 am, then it is generally not for immediate consumption. The retail data shows very few people buy just alcohol from supermarkets after 9 pm. They are doing their regular shopping, and just happen to include some beer or wine with that.
So it is quite reasonable for a supermarket to question decisions made by local politicians, if they are not actually going to reduce alcohol harm – and instead just punish supermarket shoppers and supermarkets.
As I said at the beginning, Countdown’s alleged behaviour towards suppliers appears to have been bad, and that is now being investigated by the Commerce Commission. But all these other complaints are looking a a bit pathetic to be honest. Complaining that your misleading ads were complained about or that Countdown sells lotto tickets is just whining.