Do you ignore groceries if they're not on special?

Photo / Hawkes Bay Today

Opinion

Weet-Bix's manufacturer, Sanitarium, has seen its promotional costs - in-store discounting, rather than advertising and sponsorship - almost double in the past 10 years.

Sanitarium's Pierre van Heerden says agreements are reached between suppliers and retailers to decide what goes on promotion and at how much of a discount.

Suppliers will then reimburse the supermarkets for the money they lose through discounting.

Mr van Heerden says rising costs facing local food suppliers could force many to shift manufacturing abroad to stay competitive. He says moving Sanitarium overseas is "not currently on the horizon" but the option could not be discounted.

Researcher Tim Morris says "We've created a Frankenstein monster - a population of people who buy everything on special, and if it's not on special they're not buying it."

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