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News

Australia: Woolworths, Coles face tomatoes 'dumping' probe

08/11/2024 - François-Xavier Branthôme

Australia’s two largest grocers, Woolworths and Coles, have been accused of undermining competition and damaging local growers by importing cheap canned tomatoes. A complaint by local canned tomato business SPC is being investigated by the Anti-Dumping Commission.

A complaint by local canned tomato business SPC is being investigated by the Australian government’s Anti-Dumping Commission.
The Commission is reviewing a period between 1 October 2023 and 30 September 2024 after receiving the complaint from Victoria-based SPC. The company markets the Ardmona brand of canned tomatoes, which uses tomatoes grown in Australia.

In its complaint, it said: “SPC seeks to compete in the Australian market with fairly priced imports. SPC does not consider that imports from Italy are priced on a fair basis. This application demonstrates that exports from Italy are at dumped and subsidised prices that have undercut SPC’s selling prices throughout the proposed investigation period.”

It is understood the supermarket chains are selling 400-gram tins of diced Italian tomatoes for A$1.10 ($0.73 or Euro 0.68) under their own labels. Ardmona is sold at A$2.10 (Euro 1.30) for a can of domestically-produced tomatoes of the same size.

In its complaint, SPC said it has experienced a loss in sales volume and market share and lower revenue and profits as a result. “SPC contends that the injury experienced is material in nature and can be directly attributed to the dumped and subsidised imports from Italy. The upward trajectory of Italian exports to Australia over the injury analysis and investigation periods will continue unabated in the absence of appropriate trade measures,” it said.

SPC, which supplies the country’s big supermarket groups, said it is seeking the imposition of dumping measures to “address dumped and subsidised exports and consequently return import prices to non-dumped and non-subsidised levels”.

On its website, the Anti-Dumping Commission said it will make its final recommendation in this case no later than 19 March next year.

Just Food asked Woolworths and Coles for their reaction to SPC’s claims, outside of Australian office hours. A Woolworth’s spokesperson said: “We have offered both Australian and Italian tinned tomatoes in our own brand range for a number of years.
“Many customers have a preference for Italian-grown tinned tomatoes, using them in their own Italian cooking at home.”

Earlier this month, SPC, local soft-drinks business The Original Juice Company (OJC), SPC Global and powdered milk supplier Nature One Dairy announced plans to merge and create a new company (see also related articles below).
The currently unnamed combined business is expected to generate more than A$400 million (US$275 million or Euro 245 million) of revenue and over A$29 million (Euro 18 million) of EBITDA in its 2025 financial year, according to a statement.

Source: just-food.com

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