<?xml version="1.0" encoding="ISO-8859-1"?> <docID>330750</docID> <postdate>2024-10-11 17:08:57</postdate> <headline>Supermarkets tight-lipped on Tim Tam price discrepancy</headline> <body><p><img class="size-full wp-image-330751" src="https://citynews.com.au/wp-content/uploads/2024/10/20140818001015958089-original-resized.jpg" alt="" width="900" height="579" /></p> <caption>The supermarkets say Arnott's is the one to ask why Tim Tam biscuits are cheaper in the UK. (Dan Peled/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Ethan James</strong></span></p> <p><strong>Coles and Woolworths executives have dunked a sticky question on why Tim Tams are cheaper in London than Australia in the lap of biscuit maker Arnott's.</strong></p> <p>A Senate committee is examining cost-of-living issues and what the federal government can do to reduce pressure on households.</p> <p>Woolworths chief commercial officer Paul Harker and Coles head of public affairs Adam Fitzgibbons said the supermarkets' suppliers were facing increasing inflationary pressures.</p> <p>Senator Jane Hume asked why packets of Tim Tam chocolate biscuits made by Australian-headquartered Arnott's were more expensive in Coles and Woolworths than at UK supermarket chain Tesco in London.</p> <p>Mr Harker said it was a question for manufacturer Arnott's and Woolworths wasn't privy to the details of commercial deals with others in different markets.</p> <p>"I don't know what arrangements they have selling in the UK market and what margins they're expecting," he said.</p> <p>"We have negotiated the best standard cost that we can... and we put all our efforts into negotiating promotions."</p> <p>An Arnott's spokesperson said the company invested in promotional programs so people could buy the biscuit at great value year-round.</p> <p>The average price of original Tim Tams Australia-wide over the past 12 months was $3.15, while UK consumers paid $4.50, they said.</p> <p>On Friday, a 200g packet was listed online by Woolworths for $6 while Coles had dropped their usual $6 price to $4.50.</p> <p>The two supermarkets have been under increasing scrutiny, with the national consumer watchdog alleging they broke the law by hiking prices before offering "discounts".</p> <p>The claims relate to 266 products at Woolworths over 20 months and 245 products for Coles over 15 months.</p> <p>An interim September report from the watchdog found the major supermarkets acted as an "oligopoly" with limited incentive to compete on price.</p> <p>"I don't dispute that there are a limited number of supermarket chains in Australia," Mr Fitzgibbons said.</p> <p>"(But) a high concentration does not automatically equal a low level of competition. We'll be making a submission to the report."</p> <p>Mr Harker said 13 straight interest rate rises, increasing energy and fuel costs and overseas shipping bottlenecks had impacted suppliers.</p> <p>From 2022/23 the amount of packaged good suppliers asking Coles for cost increases had more than doubled, Mr Fitzgibbons said.</p> <p>"That is naturally flowing through across the store," he said.</p> <p>Coles was experiencing continued inflation, particularly in relation to shipping costs, Mr Fitzgibbons said.</p> <p>"Inflation is the enemy of keeping prices low," he said.</p> <p>"That is a concern for us going forward because it is those inflationary pressures that effect not just Coles but the supply chain.</p> <p>"It makes it more expensive for Coles to buy goods and to sell them as well."</p> <p>Woolworths, which made $108 million in 2023/24, generated "reasonable" profits and paid $1.35 billion tax last financial year - the same amount paid to shareholders in dividends, Mr Harker said.</p> <p>Mr Fitzgibbons said Coles made $2.60 in profit for every $100 spent at the chain, adding the figure was consistent with overseas supermarkets.</p> <p>Coles and Woolworths were committed to keeping prices as low as they could, the pair said.</p> </body>