In a case that may earn a footnote in the history of Irish retailing, Tesco and Dunnes Stores have each been fined e500 for selling bottles of Coca-Cola below cost.
The footnote is likely to record that it was the last such prosecution taken under the 18-year-old groceries order, which bans below-cost selling and is expected to be scrapped - or, at the very least, radically
revised - by Trade and Enterprise Minister Micheál Martin next month. The fines, plus legal costs of e800, were imposed on the two companies by a court in Letterkenny, County Donegal, in a prosecution brought by the Office of the Director of Consumer Affairs.
An enforcement officer testified that bottles of Coke, which should have retailed at e3.40, were being sold in the companies’ stores for e2.39, in a national price promotion that breached the groceries order.
Being prosecuted for cutting prices is not a new experience for Dunnes or Tesco. Last year, in another case brought by Director of Consumer Affairs Carmel Foley, they were each fined e2,100 for selling baby food below cost in a special one-day promotion.
This year, Dunnes Stores faced a further prosecution for the below-cost selling of disposable nappies. In a significant move, however, the company took the case to the Irish High Court, arguing that nappies were not grocery items and could not be covered by the order. The judge agreed - and threw out the prosecution.
The effect of these cases has been to heighten criticism of the groceries order, which is now seen by many as a major factor in the Republic’s high prices.
John Fingleton, the former chairman of the Irish Competition Authority, who now heads the Office of Fair Trading, famously said that prosecuting Tesco and Dunnes for cutting prices was akin to declaring “the post-Christmas sales a criminal activity”.
Abolishing the groceries order, he claimed, would reduce the average family’s food bill by e500 a year. Minister Martin will be hoping he’s right.
Spar plans to accelerate its international expansion with a focus on China and India.
Dr Gordon Campbell, MD of Spar International, said the group had been welcomed by the Chinese government. He claimed this was in response to China’s concerns over the future of local chains in the face of interest from Wal-Mart and Tesco.
Spar runs three hypermarkets in China and plans to open another by Christmas, with more to follow next year. Campbell also said Spar International saw India as a fertile area for future growth. It also plans to have 70 stores under the Spar brand in Russia by 2007.
Procter & Gamble has published its 2005 Sustainability Report.
It claims that its launch of cold-water washing powders could save 10% of the energy used by all domestic appliances in the US, resulting in a drop of 26-34 million tons in greenhouse gas emissions.
Wal-Mart plans to invest in cutting greenhouse gas emissions, lobby the US government for a minimum wage hike and introduce more affordable healthcare for its workers in the US.
Chief executive Lee Scott said it planned to increase the fuel efficiency of its fleet by 25% within three years, reduce greenhouse gases from its stores by 20% in seven years and cut solid waste by 25% within three years.
Paper products maker Kimberly-Clark said it had offset rising raw materials costs through price rises in the US. The maker of Huggies nappies and Kleenex tissues said sales in the three months to September 30 rose by 5.8% to $4bn. But restructuring costs saw pre-tax profits fall 31% to $380.8m. CEO Thomas Falk said: “We expect business conditions will remain challenging, as costs for resin and other oil-based materials have risen after Hurricanes Katrina and Rita.”
Sales in Europe of personal care products fell by 1% while tissue sales were down by 3%.
Anthony Garvey
n Spar expands
n emissions cut
n Kind wal-mart
n Costs offset
The footnote is likely to record that it was the last such prosecution taken under the 18-year-old groceries order, which bans below-cost selling and is expected to be scrapped - or, at the very least, radically
revised - by Trade and Enterprise Minister Micheál Martin next month. The fines, plus legal costs of e800, were imposed on the two companies by a court in Letterkenny, County Donegal, in a prosecution brought by the Office of the Director of Consumer Affairs.
An enforcement officer testified that bottles of Coke, which should have retailed at e3.40, were being sold in the companies’ stores for e2.39, in a national price promotion that breached the groceries order.
Being prosecuted for cutting prices is not a new experience for Dunnes or Tesco. Last year, in another case brought by Director of Consumer Affairs Carmel Foley, they were each fined e2,100 for selling baby food below cost in a special one-day promotion.
This year, Dunnes Stores faced a further prosecution for the below-cost selling of disposable nappies. In a significant move, however, the company took the case to the Irish High Court, arguing that nappies were not grocery items and could not be covered by the order. The judge agreed - and threw out the prosecution.
The effect of these cases has been to heighten criticism of the groceries order, which is now seen by many as a major factor in the Republic’s high prices.
John Fingleton, the former chairman of the Irish Competition Authority, who now heads the Office of Fair Trading, famously said that prosecuting Tesco and Dunnes for cutting prices was akin to declaring “the post-Christmas sales a criminal activity”.
Abolishing the groceries order, he claimed, would reduce the average family’s food bill by e500 a year. Minister Martin will be hoping he’s right.
Spar plans to accelerate its international expansion with a focus on China and India.
Dr Gordon Campbell, MD of Spar International, said the group had been welcomed by the Chinese government. He claimed this was in response to China’s concerns over the future of local chains in the face of interest from Wal-Mart and Tesco.
Spar runs three hypermarkets in China and plans to open another by Christmas, with more to follow next year. Campbell also said Spar International saw India as a fertile area for future growth. It also plans to have 70 stores under the Spar brand in Russia by 2007.
Procter & Gamble has published its 2005 Sustainability Report.
It claims that its launch of cold-water washing powders could save 10% of the energy used by all domestic appliances in the US, resulting in a drop of 26-34 million tons in greenhouse gas emissions.
Wal-Mart plans to invest in cutting greenhouse gas emissions, lobby the US government for a minimum wage hike and introduce more affordable healthcare for its workers in the US.
Chief executive Lee Scott said it planned to increase the fuel efficiency of its fleet by 25% within three years, reduce greenhouse gases from its stores by 20% in seven years and cut solid waste by 25% within three years.
Paper products maker Kimberly-Clark said it had offset rising raw materials costs through price rises in the US. The maker of Huggies nappies and Kleenex tissues said sales in the three months to September 30 rose by 5.8% to $4bn. But restructuring costs saw pre-tax profits fall 31% to $380.8m. CEO Thomas Falk said: “We expect business conditions will remain challenging, as costs for resin and other oil-based materials have risen after Hurricanes Katrina and Rita.”
Sales in Europe of personal care products fell by 1% while tissue sales were down by 3%.
Anthony Garvey
n Spar expands
n emissions cut
n Kind wal-mart
n Costs offset
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