Supermarkets - FMCG - complaints about products

[Gabes-Apg]

TEx
thanks for your note in the other thread re the supermarkets and stocking of products

I am not sure what the system is in the states but the system here is Oz is as follows
we have two major supermarket chains in australia

supermarkets are graded based on their sq metre size A, B & C
A stores will stock 100% products
B stores will stock about 92%
C stores will stock about 85%

Suppliers generally have to pay a fee to get a new product stocked in the supermarket they get 6 - 9 months to prove product viability with stock turn over (sales) if the product turns over enough stock then it can stay, if it makes it into all stores or just A stores is dependant on how many stock turns it has per week.

there are strick rules for being a supplier to the major supermarkets, how the products are packaged (product packaging and size / carton sizes / cartons per pallets etc) Suppliers stock go to a central warehouse and then from there distributed to stores. if suppliers can not meet these requirements, then they dont to supply.
STock turns are reviewed quarterly. Some suppliers will pay triple or more of the fee to get competitors product taken off the shelf so they can have the shelf frontage.

Data about products and stock turns is available to manufacturing companies. If a smaller type producer gets a product on the shelves and gets good sales, the big companies will then research the viabilty of making similar product to compete (hence why all the big dry good companies will bring out products) as the big companies already have products they supply to the big chain warehouses, it is cheaper for them to produce and supply products and hence they squeeze out the smaller producers

now this brings me to the situation regarding complaining about products. Companies will only look to change the ingredients of the product if they get enough customer complaints (has to be substantial) it can take companies about 6 - 12 months or more to research ingredients and recipes to release a product, it costs them considerable money.
When complaining about a product - especially in relation to something like trying to get them not to use soy, it would help to mention that you would be willing to pay additional for the product if it didnt inlcude soy. They would be using soy to keep the cost down and make the product competitive.

Yes...... i used to work for a company that dealt with Fast Moving Consumer Goods (FMCG) and do business analysis of stock turn data and track trends of product sales, from A,B,C stores and overlay this on suburb data (avg income, etc)

This is why i check out the smaller private type supermarkets (mid sized IGA etc here in Australia) and various health food stores (both those that are part of chain/franchise and the smaller ones) as they all have varying suppliers etc.

If stores do sell good numbers of Gluten Free type products then yes they will consider increasing their range, but it can take 6 months or more for negotiations to occur before they can stock it

[ant]

Dear Gabes

Great info on how food retail business works in Australia! Did you ever do any analysis in any other parts of Asia? It in amazing how informative our "pottypeoplepedia" is

Best Ant

P.S. yup, it was 2 classes of Australian Shiraz. How did you guess?

[Gabes-Apg]

i am totally envious that you had 2 glasses of shiraz.. can i ask which one? my all time favourite prior to mc was Metala shiraz. *sigh* ohh how i miss that red wine.

re the FMCG stuff, I only ever worked on australian data, I had always assumed the principles were adopted from US principles.
I know the same system is used in the UK. Like big pharma controls doctors, big manufacturers and suppliers control grocery.

i thought it help explain the situation why products are in one store but not another....
I suppose if i am eating cave man type food, then it is not totally abstract that hunt and gather process be the same!

Once companies confirm ingredients for a product, to maximise profit they will bulk buy ie buy soy flour or whey protein by the tonnes.
for them to consider changing the ingredients it is very costly as they would preorder ingredients way ahead

In the vitamin industry, we used to prebuy some ingredients for peak seasons (cold and flu season etc) up to 12 months ahead, to buy at good price and ensure supply before stocks run down.
so to consider changing the ingredients of a product could take 12 months before the new product with revised ingredients hit the shelves

[Gabes-Apg]

and yes i have had a very interesting work history.....

highlights being....
-postal security and investigation - and going undercover to catch people that tamper with the mail
-ethics committee for a hospital
-vitamin company and FMCG
-gold mining company
-under water mineral exploration (working offshore on an exploration vessel in PNG)
-Aerospace company manufacturing helicopters for the Aust Def Force (worth $34M AUD each)

[ant]

Dear Gabes

In Hong Kong the food retail and pharmacy sector (like most else) is controlled by an oligarchy of property based conglomerates. Very low tax but it is far from a truly free economy. Small enterprises are squeezed out by the big boys all the time.

I am afraid I have forgotten the name of the Shiraz (but Shiraz is easily my favourite red, I like a bit of flavour) and the bottle has already been disposed of. I am sure there will be a time when you will be able to drink wine again - it does not appear to be a typical long term food (drink) intolerance......I am hoping so......when I finally get of entocort I still want to drink wine

What a career path! The ethics committee for a hospital and the vitamin company seem particularly relevant here. But gold mines, under water exportation sound more exciting.

All the best, Ant

[Gabes-Apg]

in the meantime i just keep singing along to the neil diamond classic


red red wine
its up to you
all i can do, ive done
but memories wont go
no the memories wont go


and I find
just one thing makes me forget

Red red wine