Sanitarium Reverses Decision, Will Continue Supplying Weet-Bix to The Warehouse
Sanitarium, the popular cereal manufacturer, has reversed its decision to stop supplying Weet-Bix to The Warehouse, one of New Zealand’s leading retailers. This comes as a relief to consumers who expressed their disappointment over the discontinuation of the beloved breakfast cereal. The Grocery Commissioner has hailed the reversal as a real win for the customers.
The initial announcement by Sanitarium stated that supply issues prevented them from stocking Weet-Bix at The Warehouse. However, the company has now reinstated its supply agreements, citing the demands from consumers and acknowledging the importance of providing affordable and nutritious options.
To continue supplying The Warehouse, Sanitarium has made the decision to reduce its allocation into export markets. This move follows a reevaluation of the company’s supply capabilities in the Pacific and Asian markets, which have experienced increased demand in recent years.
Michael Barton, the general manager for Sanitarium New Zealand, expressed apologies for any concern caused by the initial decision. He explained that supply constraints had made it challenging to meet the rising demand across all markets. Sanitarium had attempted to prioritize the allocation of Weet-Bix to all customers, including grocery, non-grocery, hospitality, and export markets.
The reversal in Sanitarium’s decision comes shortly after the company received an inquiry from the Commerce Commission regarding the situation. Barton stated that they would engage in discussions and provide a response to the Commerce Commission within the given timeframe. Sanitarium firmly believes that no breach of the Commerce Act has occurred and that the stock allocation process during supply constraints is complex.
The Warehouse CEO, Nick Grayston, expressed his relief and delight at Sanitarium’s change of heart. He mentioned that the retailer had received overwhelming support from consumers across New Zealand, highlighting the importance of fairness and choice in the market. Grayston emphasized The Warehouse’s commitment to making groceries more affordable.
Sanitarium reassured consumers that it was working on a revised approach to the allocation of supply to avoid any future disruptions. Notably, Sanitarium does not determine retail prices, as retailers engage in competitive pricing. The company has observed competitive prices from all retailers in the market.
The decision by Sanitarium to continue supplying Weet-Bix to The Warehouse has been met with approval by the Grocery Commissioner. The Commissioner emphasized the importance of suppliers and retailers working together to address such issues in a well-functioning market.
This announcement coincides with Commerce and Consumer Affairs Minister Duncan Webb’s statement that the Labour Party would financially support credible companies seeking to enter or expand in the New Zealand grocery business, should they be re-elected. Webb pointed out the behavior of Sanitarium as an example of why existing players cannot be entrusted with addressing market issues.
In conclusion, Sanitarium’s reversal on ceasing the supply of Weet-Bix to The Warehouse is a welcome development for consumers. The decision reflects the company’s commitment to meeting the demands of its customers while tackling supply constraints in their core markets. With the support of consumers, retailers, and regulatory bodies, it is hoped that the New Zealand grocery market will become more competitive, affordable, and offer a wider range of choices for consumers.
