Linfox founder accuses retailers of acting like dictators and "expecting everything for nothing"
February 8, 2012
Lindsay Fox has hit out at Coles and Woolworths, accusing them of trying to dictate terms and “expecting everything for nothing”.
In an interview with The Australian newspaper, the Linfox founder offered this thoughts on the dominance of the two major supermarkets, including their current fresh produce price war.
Linfox signed a new five-year deal with Coles last year, but that has not stopped Fox from criticising it and Woolworths for the way they deal with the supply chain.
“They are too big . . . You can’t dictate the terms and conditions of what people have got to trade with you. And they are getting to that stage. They are trying to dictate to everyone,” Fox told The Australian.
“They are expecting everything for nothing. They are going to crucify the farmers, crucify the bread manufacturers and if you spoke to most of the consumer goods manufacturers at the moment, you would get a very mixed response about the aspects of dealing with these companies.”
Coles recently reduced fresh produce prices in a bid to outdo Woolworths, but it has rejected accusations its actions will lead to lower farm gate returns.
Fox also told The Australian Linfox would continue to expand its presence in Asia, where it has operations in a number of countries including China, Malaysia, Singapore and India.
While saying Linfox’s Australian operation will continue to make a good return, Fox adds: “It is very tough out there.”