Cheap loaves of bread are here to stay -- at least for the
foreseeable future, the country's major supermarkets have
Countdown, New World and Pak'nSave say they have noticed
increased demand for bread as a result of the lower prices.
A price war, which began last month between the supermarket
rivals, saw the price of bread drop to just $1.
Countdown is owned by Progressive Enterprises, while New
World and Pak'nSave supermarkets are owned by Foodstuffs.
"We increased production to ensure we didn't run out, and
throughout the country strong demand continues," Countdown
managing director Dave Chambers said.
The cheap bread was not a limited time 'loss leader' for
Countdown, but rather the 'new everyday price on this popular
bread range,' he said.
Countdown's "Price Lockdown" promotion for bread resulted in
the chain's Homebrand white and wheatmeal bread drop from
$1.48 to $1.00 on July 18, with a customer limit of four
loaves per shop.
"As with any product in our stores, we always look for
opportunities and ways we can bring a lower price to the
shelf," Mr Chambers said.
Foodstuffs' marketing general manager, Steve Bayliss said it
has been a challenging year for Countdown and 'reaching for
the price lever aggressively' to regain lost ground was not
While customers are the big winners from the price war on
bread, Bayliss says this comes with a warning.
"We don't believe the current pricing is economically
sustainable long term and prices will eventually rise," Mr
Bayliss told the Herald.
New World's "Price Limits" promotion offers Budget brand 600g
loaves of bread also for $1 with a limit of five loaves.
"In a hyper competitive market, where no brand wants to give
the competition an inch, we're unlikely to see pricing
tensions easing in the near term," he said.
Some critics have labelled the cheap bread promotion as
Tauranga nutritionist Angela Frieswyk told the Bay of Plenty
Times she recommended most clients stay away from bread,
especially white bread, as much as possible.
"I would prefer to see places like supermarkets discount
veges," she said.
- Daniel Lynch of the New Zealand Herald