1 00:00:00,040 --> 00:00:02,200 Speaker 1: Now we've been discussing on the show in the last week. 2 00:00:02,240 --> 00:00:05,439 Speaker 1: One of the questions that's arisen since the McCain closure 3 00:00:05,760 --> 00:00:07,920 Speaker 1: who's making the money? And this has come from a 4 00:00:07,920 --> 00:00:10,760 Speaker 1: Hawk's Bay farmer who says that he sells one kgfp's 5 00:00:10,840 --> 00:00:12,799 Speaker 1: for a dollar seventy and that ends up on Pack 6 00:00:12,840 --> 00:00:16,599 Speaker 1: and Save shelves at five dollars seventy nine. Food Stuff's 7 00:00:16,640 --> 00:00:19,680 Speaker 1: North Island owners of Pack and Save chief executive Chris 8 00:00:19,760 --> 00:00:20,360 Speaker 1: quinn is with us. 9 00:00:20,360 --> 00:00:23,720 Speaker 2: Hello Chris, afternoon, Heather, So how do we. 10 00:00:23,680 --> 00:00:26,240 Speaker 1: Explain that one dollar seventy becomes five dollars seventy nine. 11 00:00:27,600 --> 00:00:30,400 Speaker 2: Look, we've been saying for some time, Heather that basically 12 00:00:30,680 --> 00:00:34,240 Speaker 2: of a retail dollar as the supermarket, our owners and 13 00:00:34,360 --> 00:00:38,000 Speaker 2: Naginald's emergently owned, get about nineteen cents out of each 14 00:00:38,040 --> 00:00:40,920 Speaker 2: retail dollar. So went trawling through the Pack and Saved 15 00:00:40,960 --> 00:00:44,160 Speaker 2: freezers to have a look at the peas, and basically 16 00:00:44,200 --> 00:00:47,240 Speaker 2: a kilo of pas we retail between five dollars twenty 17 00:00:47,320 --> 00:00:50,519 Speaker 2: nine a normal price and three dollars forty nine on special. 18 00:00:50,640 --> 00:00:53,200 Speaker 2: So you know, if you mix that up, it's about 19 00:00:53,240 --> 00:00:56,200 Speaker 2: four dollars thirty five on average. You take gst off 20 00:00:56,240 --> 00:00:59,160 Speaker 2: that you get three seventy eight. Those bags of peas 21 00:00:59,200 --> 00:01:01,760 Speaker 2: cost us about three dollars to buy in to store, 22 00:01:01,920 --> 00:01:05,280 Speaker 2: so that brings you back to about eighteen or nineteen cents. 23 00:01:05,280 --> 00:01:07,960 Speaker 2: And the dollar is what the supermarket earns. And there's 24 00:01:08,000 --> 00:01:11,240 Speaker 2: been months of studies on this industry so that are 25 00:01:11,360 --> 00:01:12,720 Speaker 2: looking at that and proving. 26 00:01:12,400 --> 00:01:17,200 Speaker 1: That out right, So you're using the five dollars, you're 27 00:01:17,240 --> 00:01:21,440 Speaker 1: basically ignoring the five dollars seventy nine figure in that right, well, because. 28 00:01:21,200 --> 00:01:23,240 Speaker 2: It's five twenty nine are normal retails, So I don't 29 00:01:23,240 --> 00:01:24,520 Speaker 2: know if we're five to seventy nine. 30 00:01:24,760 --> 00:01:26,640 Speaker 1: Maybe maybe it was a tough day tough. 31 00:01:27,800 --> 00:01:30,399 Speaker 2: I think we did a holiday mixed Veggie's bag for 32 00:01:30,440 --> 00:01:33,039 Speaker 2: five to seventy nine, so maybe that's the one perhaps. 33 00:01:32,680 --> 00:01:35,000 Speaker 1: So all right, but even then, I mean, if he's 34 00:01:35,080 --> 00:01:37,600 Speaker 1: if he's basically selling it for a dollar seventy and 35 00:01:37,640 --> 00:01:40,600 Speaker 1: you'll buy, you're buying it for three dollars, there's only 36 00:01:40,600 --> 00:01:42,840 Speaker 1: a dollar thirty, which explains all of the processing and 37 00:01:42,880 --> 00:01:45,040 Speaker 1: whatnot that has to happen with mccains and the transporting 38 00:01:45,040 --> 00:01:46,959 Speaker 1: and stuff. So it looks to me like nobody's making 39 00:01:47,040 --> 00:01:47,800 Speaker 1: much of a buck here. 40 00:01:48,960 --> 00:01:51,280 Speaker 2: Well, it's certainly not easy, and I think that's certainly 41 00:01:51,320 --> 00:01:53,160 Speaker 2: you know what we're seeing with mccains and what is 42 00:01:53,200 --> 00:01:56,720 Speaker 2: pretty tragic news in terms of viability for them. And 43 00:01:56,760 --> 00:02:00,960 Speaker 2: I think when you read their stories, the energy costs, 44 00:02:01,480 --> 00:02:05,080 Speaker 2: compliance and regulation costs, transport costs, they are all what's 45 00:02:05,120 --> 00:02:08,720 Speaker 2: working against everybody in the industry at the moment. And 46 00:02:08,800 --> 00:02:11,880 Speaker 2: you know, we're seeing diesel more than double in price 47 00:02:11,960 --> 00:02:14,680 Speaker 2: in four or five weeks at the moment, and this 48 00:02:14,720 --> 00:02:16,280 Speaker 2: is putting pressure on the food system. 49 00:02:16,560 --> 00:02:18,920 Speaker 1: Do you think that this is inevitable, Chris? If you 50 00:02:18,960 --> 00:02:21,920 Speaker 1: look around the country and you see the various closures 51 00:02:22,320 --> 00:02:25,280 Speaker 1: mccains heinz waties and see what we are prepared to 52 00:02:25,320 --> 00:02:27,840 Speaker 1: pay for things on the shelves and our preference obviously 53 00:02:27,880 --> 00:02:30,400 Speaker 1: for cheaper means stuff that's important. Is it just inevitable 54 00:02:30,440 --> 00:02:31,800 Speaker 1: that the likes of mccaines will close. 55 00:02:33,240 --> 00:02:36,080 Speaker 2: Look, I hope it's not inevitable, because we really value 56 00:02:36,120 --> 00:02:39,000 Speaker 2: on New Zealand growers and New Zealand desperately needs more 57 00:02:39,080 --> 00:02:43,359 Speaker 2: valuated businesses in New Zealand generating the jobs in generating 58 00:02:43,760 --> 00:02:44,079 Speaker 2: that way. 59 00:02:44,200 --> 00:02:46,519 Speaker 1: So with respect, hoping for something is not the same 60 00:02:46,560 --> 00:02:48,280 Speaker 1: as the reality of it. So what do you think 61 00:02:48,400 --> 00:02:50,040 Speaker 1: is it inevitable that this happens. 62 00:02:51,000 --> 00:02:53,360 Speaker 2: I don't think it's inevitable. I think we got to 63 00:02:53,360 --> 00:02:55,920 Speaker 2: focus on. Yeah, what we've got to focus on is 64 00:02:55,919 --> 00:02:58,359 Speaker 2: how do we be as efficient as we possibly can 65 00:02:58,440 --> 00:03:01,120 Speaker 2: in a country of our size and density? You know, 66 00:03:01,160 --> 00:03:03,480 Speaker 2: I keep thinking we're the same size as Japan with 67 00:03:03,600 --> 00:03:07,000 Speaker 2: one hundred and thirty five millions less people. So we've 68 00:03:07,000 --> 00:03:09,320 Speaker 2: got to think about how to all of our regulations 69 00:03:09,360 --> 00:03:11,840 Speaker 2: and all of our systems and processes make us as 70 00:03:11,960 --> 00:03:15,040 Speaker 2: lean and as competitive as we can, and keep thinking 71 00:03:15,080 --> 00:03:16,920 Speaker 2: about designing for hair and not for somewhere else. 72 00:03:17,320 --> 00:03:19,000 Speaker 1: So what do you think I mean? We get told 73 00:03:19,080 --> 00:03:22,560 Speaker 1: there are three main cost pressures that I understand the 74 00:03:22,680 --> 00:03:25,760 Speaker 1: likes of mccains is facing right. Obviously, one is energy. 75 00:03:26,280 --> 00:03:28,320 Speaker 1: The other one is the minimum wage and the fact 76 00:03:28,360 --> 00:03:30,080 Speaker 1: that the minimum wage that we pay in this country 77 00:03:30,160 --> 00:03:31,960 Speaker 1: is the third highest in the world. And then the 78 00:03:31,960 --> 00:03:34,240 Speaker 1: other one is the red tape. Of the three of them, 79 00:03:34,360 --> 00:03:35,560 Speaker 1: which is the biggest pressure. 80 00:03:37,280 --> 00:03:40,200 Speaker 2: Look, I think most people would say energy has been 81 00:03:40,240 --> 00:03:43,880 Speaker 2: a huge pressure in the last year or two. I 82 00:03:43,920 --> 00:03:46,080 Speaker 2: think red tape. You know that if you look at 83 00:03:46,120 --> 00:03:48,560 Speaker 2: and go what could you work on as a country. 84 00:03:48,960 --> 00:03:50,760 Speaker 2: I think you can work on energy and red. 85 00:03:50,640 --> 00:03:52,880 Speaker 1: Tape, minimum wage. 86 00:03:53,720 --> 00:03:55,680 Speaker 2: Third one lot people have got to be able to 87 00:03:55,920 --> 00:03:58,240 Speaker 2: have a decent standard of living and to be paid fairly. 88 00:03:58,320 --> 00:03:59,720 Speaker 2: So you'd like to think what we can do is 89 00:03:59,760 --> 00:04:01,440 Speaker 2: have valuable jobs, not less. 90 00:04:01,960 --> 00:04:04,160 Speaker 1: Now, what I've noticed is that there's been a little 91 00:04:04,160 --> 00:04:06,520 Speaker 1: bit of winging in winging is not fair. There's been 92 00:04:06,520 --> 00:04:08,560 Speaker 1: a bit of complaining in New Zealand from the farmers, 93 00:04:08,560 --> 00:04:11,400 Speaker 1: but I say it's really quite intense from the Aussie 94 00:04:11,400 --> 00:04:14,440 Speaker 1: farmers about what the supermarkets in Australia and New Zealand 95 00:04:14,480 --> 00:04:17,400 Speaker 1: are doing. And this is really the home brand. Are you, guys, 96 00:04:17,839 --> 00:04:21,760 Speaker 1: by pricing your home brand so low and using product 97 00:04:21,760 --> 00:04:24,440 Speaker 1: that is imported rather than local stuff, are you essentially 98 00:04:24,520 --> 00:04:26,239 Speaker 1: driving now local guys out of business? 99 00:04:27,560 --> 00:04:29,480 Speaker 2: Well, I think first thing, you know, just a fact 100 00:04:29,480 --> 00:04:31,800 Speaker 2: that's useful for people to know. Sixty eight percent of 101 00:04:31,839 --> 00:04:34,640 Speaker 2: what we do in home brand comes from New Zealand suppliers. 102 00:04:35,160 --> 00:04:37,679 Speaker 2: And the idea of home brand is that you don't 103 00:04:37,800 --> 00:04:41,040 Speaker 2: invest the money in the brand and marketing that it's 104 00:04:41,160 --> 00:04:44,039 Speaker 2: good quality, but it's specified to different levels. You know, 105 00:04:44,080 --> 00:04:47,640 Speaker 2: there's a value one, a medium one and a finest one, 106 00:04:48,480 --> 00:04:50,760 Speaker 2: and the idea is that, you know, we don't make 107 00:04:50,800 --> 00:04:53,880 Speaker 2: it ourselves. We're not the manufacturer of the manufacturers. Generally 108 00:04:54,080 --> 00:04:56,480 Speaker 2: people like Waddies and the Caves, and we have partnered 109 00:04:56,560 --> 00:04:59,560 Speaker 2: with both of them on private label. But the idea 110 00:04:59,640 --> 00:05:01,880 Speaker 2: is to offer our customers an option that doesn't have 111 00:05:01,960 --> 00:05:04,599 Speaker 2: all of the brand and other marketing associated with it, 112 00:05:04,640 --> 00:05:08,720 Speaker 2: but is a good, honest, quality product on shelf and 113 00:05:08,760 --> 00:05:11,240 Speaker 2: so that there is an alternative for customers and we 114 00:05:11,279 --> 00:05:13,839 Speaker 2: see them liking it, particularly in the last few years 115 00:05:13,839 --> 00:05:15,240 Speaker 2: when cost of living has been really tough. 116 00:05:16,440 --> 00:05:18,599 Speaker 1: What's up with the I was reading newsroom this morning, 117 00:05:18,640 --> 00:05:21,440 Speaker 1: so that you guys are using in bringing in Tasmanian 118 00:05:21,480 --> 00:05:23,479 Speaker 1: salmon in place of New Zealand salmon. Why is that? 119 00:05:24,839 --> 00:05:26,880 Speaker 2: It's to offer the option again? So you know, New 120 00:05:26,960 --> 00:05:30,200 Speaker 2: Zealand salmon is doing incredibly well on export markets, and 121 00:05:30,200 --> 00:05:33,240 Speaker 2: that's great because that's great for our salmon farming businesses. 122 00:05:34,040 --> 00:05:36,279 Speaker 2: That means that the export price is also what you 123 00:05:36,360 --> 00:05:38,600 Speaker 2: need to pay here for that particular product. So we're 124 00:05:38,600 --> 00:05:41,640 Speaker 2: trying to make sure we've got alternative products at different 125 00:05:41,640 --> 00:05:44,960 Speaker 2: price levels and then most importantly, just give customers the choices. 126 00:05:45,160 --> 00:05:46,760 Speaker 1: All right, Chris it's always good to talk to you. 127 00:05:46,800 --> 00:05:48,039 Speaker 1: Thank you for making the time to have a chat 128 00:05:48,040 --> 00:05:49,719 Speaker 1: to us. It's Chris Quinn, who is the boss of 129 00:05:49,720 --> 00:05:53,839 Speaker 1: food Stuff's North Island. For more from Heather Duplessy Allen Drive, 130 00:05:54,000 --> 00:05:57,400 Speaker 1: listen live to news talks. It'd be from four pm weekdays, 131 00:05:57,560 --> 00:05:59,680 Speaker 1: or follow the podcast on iHeartRadio.