The two major supermarkets claim they’re not to blame for Tim Tams being more expensive on Australian shelves than they are in the United Kingdom.
Representatives from Coles and Woolworths were asked today why a 200g packet of the iconic Australian biscuits costs $6 in their stores, when not on sale, while retailing for £2.50 – the equivalent of about $4.85 – 17,000km away at UK supermarket Tesco.
“It’s probably a great question for Arnott’s,” Woolworths chief commercial officer Paul Harker told a Senate inquiry on the cost of living today.
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Harker said the recommended retail prices are set by Arnott’s, which manufactures the biscuits.
“Why retailers in the UK are able to offer those prices would probably depend on the margins that Arnott’s is expected to make in terms of selling into those markets, versus how they choose to bring their products to market here in Australia,” Harker said.
Coles head of public affairs Adam Fitzgibbons gave a similar answer.
“I think the question almost presupposes that Arnott’s sells their product to us at the same price that they would sell those products to other retailers internationally,” he said.
“That’s not something that I or Coles would have visibility of at all, but I think that’s certainly a question that would be very best directed towards Arnott’s.”
Liberal Senator Jane Hume, the committee chair who asked the question, said other suppliers, such as Nestle, said pricing responsibility lies with retailers.
“We go a little bit back and forth,” she said, adding that it sounds “strange that a product that is manufactured in western Sydney would cost more at a supermarket in Sydney than it would at a supermarket in London after it’s travelled 17,000km”.
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In a statement to 9news.com.au, an Arnott’s spokesperson said grocery scan data shows the prices Australians pay for Tim Tams are actually cheaper than what their UK counterparts do.
“We invest in promotional programs… the average price paid by Australian consumers for a regular pack of Tim Tam Original in the past 12 months was $3.15, compared to the average price paid by UK consumers of $4.50,” the spokesperson said.
Arnott’s did not directly answer 9news.com.au’s question about whether pricing responsibility lies with them or supermarkets.
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