New World shoppers have been left disappointed by the supermarket's latest giveaway, as key items have been running out weeks into the promotion.
The braiser is both the most sought after - and most expensive - item up for grabs, but many customers have reported a shortage of stock.
Foodstuffs North Island CEO Chris Quin says 70,000 of these braisers were ordered, but the company didn't expect this level of demand.
"Guessing what mix of the five or six items we have in this promotion would be desired and where they would sit - we get international advice, we get local advice, we give it our best shot."
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Episode Transcript
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Speaker 1 (00:00):
Now once again New World has run out of the
big prize in their supermarket promotion. This time it's the
snake brasier. Previously it's been the knife block, or it's
been the Master Chef Crockery or whatever. Chris Quinn is
the CEO of food Stuff's North Island and with us.
Speaker 2 (00:14):
Hello Chris, good afternoon, Heather.
Speaker 1 (00:17):
Now, if people have got enough stickers, the forty five
stickers and the sixty dollars for the brazier, will you
honor it?
Speaker 2 (00:24):
So, look, we've been blown away by how popular this
has been, Heather, and just the demand. And as we've
probably talked about before, we try and guess a year ahead,
what ones, what items are going to be the most popular,
and you know, we like to think that everyone will
get the item they most wanted, but guessing what mix
of the five or six items that we have in
(00:44):
this promotion would be desired and where they would sit
is you know, we get international advice, we get local advice.
We give it a best shot. Probably one thing that
hasn't been talked about. We ordered seventy thousand of these
braziers and we've been blown away by how many people
decided that was the thing they wanted.
Speaker 1 (01:04):
Is there no opportunity for you to say to get
the people in who want them and go, Okay, there's
another five hundred people, and go and get those autism
for these people.
Speaker 2 (01:15):
We ordered them a year ago because you've got a
slot into a production schedule with the manufacturer internationally. We
got the number that we thought would you know, never
be desired, and has turned out to be the number.
We have for the last little while been scraping the
barrel wherever we can, and we know we've got another
couple of thousand on the way. I don't know how
(01:35):
many people out there, you know, this is still their
heart's desire and the one they want the most. We
have got five other items in the promotion, and we've
still got stock of those five other items. This one
we've scraped the bottom of the barrel and got as
many as we possibly can. We just can't get any
more manufactured.
Speaker 1 (01:51):
Yeah, So who's doing the estimating for you? Because the
person doing the estimating sucks at it because they do
this every time.
Speaker 2 (01:57):
Well, it's not the same person, and we use a
global source company who tell us about the trends from
every other country that these promotions have been run, give
us an indication of the mix. We test that against
our best knowledge locally, but it's a very hard thing
to predict us to.
Speaker 1 (02:11):
Have you Look, I take your point, and I totally
accept that you can't possibly know what people actually want.
But have you got some sort of a system where
in real time you can see you're down to five
and you need to warn people Listen, we're down to five,
get in quickly.
Speaker 2 (02:25):
Oh? Absolutely, And that's why on every store's entrance there
is a board saying where stock is up to and
what's running low and what's not available.
Speaker 1 (02:33):
And explain this. Explain this to me.
Speaker 2 (02:36):
I do. So.
Speaker 1 (02:36):
The person that I know that's the most frustrated about
this is Emma Comma frustrated of Centalias. And what happened
is that she has she had the forty five stickers
and she had the sixty dollars. She shops at the
Mission Bay New World. At the Mission Bay New World
for two weeks, they had to sign up saying we're
out of stock, but we are getting restocked. For two
weeks they told her they were getting restocked. So Emma thought,
(02:58):
it's totally fine. I'm not going to go to an
I'm not going to go to another New World anywhere
in the city because my new World will have it
in two weeks time or at some point. Now they're
not getting it all.
Speaker 2 (03:06):
What happened there, well, there is a very small number
more on the way, so there is more stock coming
and it will be distributed. It's not I don't believe
it's going to be able to meet all of the
demand we've heard about. We have grabbed every single one
we can in the timeframe that we can. You know,
this program runs through to the end of August and
then people can redeem until the middle of September, and
(03:28):
we've got as many more as we can, so it's
been unclear. We've been fighting to get this some more
stock once we saw the level of demand, and that'll
be why the store was signaling that.
Speaker 1 (03:37):
Is it possible for you guys, because listen, it's twenty
twenty five, it's the information age. We've got apps and
you've got collapse and stuff like that. Can you not
put a real time ticker out there for people with
literally how much of how many of these things you
have in the country left ticking down as people take
them away? So people can know whether they're going to
get their thing or not.
Speaker 2 (03:55):
Look, we haven't got that ability today. It's an idea
that we should debate and see whether we can. But
part of the issue is the item isn't a bar
coded stock item, so it doesn't run through ond normal systems.
It's sids, some physical stock in the store.
Speaker 1 (04:08):
Now, well, put a bar code on it. I mean,
you guys do barcodes. Don't you like you've got to
solve this, Chris, you can't do this every year. It's
make I'll tell you what it did to me. I
looked at it this year and I thought, no, I'm
not going to bother because I know they're going to
run out of that thing. You don't want that to
be how people behave.
Speaker 2 (04:25):
Look, although you know, the evidence clearly is people have
really got into this way more than we thought, and
this was the item that needed most because they actually
needed cash as well, and we thought that will have
some demand, but not the demand of all the other items.
Turns out, what people are loving is that it's a
great item. It's got quality, it's a brand that people
are proud to have in their houses and seventy thousand.
(04:47):
You know, I think at the beginning, we all said, men,
we're going to know what are we going to do
with the leftover stock? Because every planning indication we had
we were well covered.
Speaker 1 (04:55):
You're not doing this deliberately, are you for attention?
Speaker 2 (04:57):
No? No, not at all. This is myth. Is not
the attention we'd love to be getting. We'd love to
be getting attention from people saying I love my brazier
and here's another casserole.
Speaker 1 (05:07):
All right, well, borer more next time. Hey, the grocery
reports come out, it's made the point that you guys,
food stuffs have had a higher profit percentage than the
likes of Walmart and Tescos and says, how on earth
how are you doing that?
Speaker 2 (05:20):
Look, you know, comparison of these things is, you know,
was a fine art. What we do know, last five years,
on average, our net profit after tax, which is a
different number to the number that the commission have used,
has been three point six cents in the dollar. Everything
that we have said puts us middle to upper in
the pack of retailers. We're proud of that. We think that,
(05:41):
you know, business is being successful by earning customers and
getting great loyalty and delivering value. Is what we should
be doing, and it enables us to invest in communities
all over the North Island that wouldn't be possible otherwise
if we didn't have the resources. So you know, these
comparisons are quite difficult to get equal into the bottom
of a for companies that are listed in some that aren't.
(06:03):
But what we do know is when we compare our
prices to Ld in Australia or to Tesco in the
UK and Pekan save, New Zealanders are getting a great
value option through a store like that.
Speaker 1 (06:13):
Okay, do you have any idea what Nikola Willis is
planning for you in her announcement?
Speaker 2 (06:20):
Look, no, we don't, and you know it wouldn't be
you know, the Minister would never you know, that's they
wouldn't consult with us. As such, we are positively engaged
with government where we've shared our ideas about what would
make food prices cheaper in New Zealand and what would
help us lower cost so that we can do that
for our customers. They're listening to that and engaging and
asking questions and you know we're contributing to the conversation,
(06:43):
as are manufacturers and suppliers and many other bodies, but
we don't know what the plan is.
Speaker 1 (06:48):
So I had a couple of guys on the huddle
earlier who I had thought up to that point were
quite rational and right thinking, and both of them thought
that forced structural separation would be a good thing. Now
if they think that, how worried to you that she
actually comes out with something like that.
Speaker 2 (07:06):
Well, I can't, you know, we can't limit what the
Minister thinks and all the ideas are there, but we
are absolutely clear it's not been done in any other
market in the world in this category, and hasn't been
done before in New Zealand in terms of private organizations
being structurally separated. It will only add cost in this
scaler market. And I think one of the things the
(07:26):
Commission confirmed today is in New Zealand's few cities that
have scale Auckland christ Church places like that, there is
a good level of competition. So in Auckland, thirty percent
of the offer is not in the two large players.
You know that customer is using and so competition is
emerging and going after the business where they see an
opportunity to do that sustainably. Is it's so different to
(07:50):
industries where there's been a monopoly asset. There just isn't
one in this industry. So structural separation like you might
do in a telco or a fuel environment just doesn't
make in from the structure.
Speaker 1 (08:01):
Yeah, well listen, good luck with it, Chris, and thank
you very much for coming to talk to us. I
appreciate your time. That's Chris Quinn's CEO of food Stuff's
North Island.
Speaker 2 (08:08):
For more from Hither Duplessy, Allen Drive listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
Now once again New World has run out of the
big prize in their supermarket promotion. This time it's the
snake brasier. Previously it's been the knife block, or it's
been the Master Chef Crockery or whatever. Chris Quinn is
the CEO of food Stuff's North Island and with us.
Speaker 2 (00:14):
Hello Chris, good afternoon, Heather.
Speaker 1 (00:17):
Now, if people have got enough stickers, the forty five
stickers and the sixty dollars for the brazier, will you
honor it?
Speaker 2 (00:24):
So, look, we've been blown away by how popular this
has been, Heather, and just the demand. And as we've
probably talked about before, we try and guess a year ahead,
what ones, what items are going to be the most popular,
and you know, we like to think that everyone will
get the item they most wanted, but guessing what mix
of the five or six items that we have in
(00:44):
this promotion would be desired and where they would sit
is you know, we get international advice, we get local advice.
We give it a best shot. Probably one thing that
hasn't been talked about. We ordered seventy thousand of these
braziers and we've been blown away by how many people
decided that was the thing they wanted.
Speaker 1 (01:04):
Is there no opportunity for you to say to get
the people in who want them and go, Okay, there's
another five hundred people, and go and get those autism
for these people.
Speaker 2 (01:15):
We ordered them a year ago because you've got a
slot into a production schedule with the manufacturer internationally. We
got the number that we thought would you know, never
be desired, and has turned out to be the number.
We have for the last little while been scraping the
barrel wherever we can, and we know we've got another
couple of thousand on the way. I don't know how
(01:35):
many people out there, you know, this is still their
heart's desire and the one they want the most. We
have got five other items in the promotion, and we've
still got stock of those five other items. This one
we've scraped the bottom of the barrel and got as
many as we possibly can. We just can't get any
more manufactured.
Speaker 1 (01:51):
Yeah, So who's doing the estimating for you? Because the
person doing the estimating sucks at it because they do
this every time.
Speaker 2 (01:57):
Well, it's not the same person, and we use a
global source company who tell us about the trends from
every other country that these promotions have been run, give
us an indication of the mix. We test that against
our best knowledge locally, but it's a very hard thing
to predict us to.
Speaker 1 (02:11):
Have you Look, I take your point, and I totally
accept that you can't possibly know what people actually want.
But have you got some sort of a system where
in real time you can see you're down to five
and you need to warn people Listen, we're down to five,
get in quickly.
Speaker 2 (02:25):
Oh? Absolutely, And that's why on every store's entrance there
is a board saying where stock is up to and
what's running low and what's not available.
Speaker 1 (02:33):
And explain this. Explain this to me.
Speaker 2 (02:36):
I do. So.
Speaker 1 (02:36):
The person that I know that's the most frustrated about
this is Emma Comma frustrated of Centalias. And what happened
is that she has she had the forty five stickers
and she had the sixty dollars. She shops at the
Mission Bay New World. At the Mission Bay New World
for two weeks, they had to sign up saying we're
out of stock, but we are getting restocked. For two
weeks they told her they were getting restocked. So Emma thought,
(02:58):
it's totally fine. I'm not going to go to an
I'm not going to go to another New World anywhere
in the city because my new World will have it
in two weeks time or at some point. Now they're
not getting it all.
Speaker 2 (03:06):
What happened there, well, there is a very small number
more on the way, so there is more stock coming
and it will be distributed. It's not I don't believe
it's going to be able to meet all of the
demand we've heard about. We have grabbed every single one
we can in the timeframe that we can. You know,
this program runs through to the end of August and
then people can redeem until the middle of September, and
(03:28):
we've got as many more as we can, so it's
been unclear. We've been fighting to get this some more
stock once we saw the level of demand, and that'll
be why the store was signaling that.
Speaker 1 (03:37):
Is it possible for you guys, because listen, it's twenty
twenty five, it's the information age. We've got apps and
you've got collapse and stuff like that. Can you not
put a real time ticker out there for people with
literally how much of how many of these things you
have in the country left ticking down as people take
them away? So people can know whether they're going to
get their thing or not.
Speaker 2 (03:55):
Look, we haven't got that ability today. It's an idea
that we should debate and see whether we can. But
part of the issue is the item isn't a bar
coded stock item, so it doesn't run through ond normal systems.
It's sids, some physical stock in the store.
Speaker 1 (04:08):
Now, well, put a bar code on it. I mean,
you guys do barcodes. Don't you like you've got to
solve this, Chris, you can't do this every year. It's
make I'll tell you what it did to me. I
looked at it this year and I thought, no, I'm
not going to bother because I know they're going to
run out of that thing. You don't want that to
be how people behave.
Speaker 2 (04:25):
Look, although you know, the evidence clearly is people have
really got into this way more than we thought, and
this was the item that needed most because they actually
needed cash as well, and we thought that will have
some demand, but not the demand of all the other items.
Turns out, what people are loving is that it's a
great item. It's got quality, it's a brand that people
are proud to have in their houses and seventy thousand.
(04:47):
You know, I think at the beginning, we all said, men,
we're going to know what are we going to do
with the leftover stock? Because every planning indication we had
we were well covered.
Speaker 1 (04:55):
You're not doing this deliberately, are you for attention?
Speaker 2 (04:57):
No? No, not at all. This is myth. Is not
the attention we'd love to be getting. We'd love to
be getting attention from people saying I love my brazier
and here's another casserole.
Speaker 1 (05:07):
All right, well, borer more next time. Hey, the grocery
reports come out, it's made the point that you guys,
food stuffs have had a higher profit percentage than the
likes of Walmart and Tescos and says, how on earth
how are you doing that?
Speaker 2 (05:20):
Look, you know, comparison of these things is, you know,
was a fine art. What we do know, last five years,
on average, our net profit after tax, which is a
different number to the number that the commission have used,
has been three point six cents in the dollar. Everything
that we have said puts us middle to upper in
the pack of retailers. We're proud of that. We think that,
(05:41):
you know, business is being successful by earning customers and
getting great loyalty and delivering value. Is what we should
be doing, and it enables us to invest in communities
all over the North Island that wouldn't be possible otherwise
if we didn't have the resources. So you know, these
comparisons are quite difficult to get equal into the bottom
of a for companies that are listed in some that aren't.
(06:03):
But what we do know is when we compare our
prices to Ld in Australia or to Tesco in the
UK and Pekan save, New Zealanders are getting a great
value option through a store like that.
Speaker 1 (06:13):
Okay, do you have any idea what Nikola Willis is
planning for you in her announcement?
Speaker 2 (06:20):
Look, no, we don't, and you know it wouldn't be
you know, the Minister would never you know, that's they
wouldn't consult with us. As such, we are positively engaged
with government where we've shared our ideas about what would
make food prices cheaper in New Zealand and what would
help us lower cost so that we can do that
for our customers. They're listening to that and engaging and
asking questions and you know we're contributing to the conversation,
(06:43):
as are manufacturers and suppliers and many other bodies, but
we don't know what the plan is.
Speaker 1 (06:48):
So I had a couple of guys on the huddle
earlier who I had thought up to that point were
quite rational and right thinking, and both of them thought
that forced structural separation would be a good thing. Now
if they think that, how worried to you that she
actually comes out with something like that.
Speaker 2 (07:06):
Well, I can't, you know, we can't limit what the
Minister thinks and all the ideas are there, but we
are absolutely clear it's not been done in any other
market in the world in this category, and hasn't been
done before in New Zealand in terms of private organizations
being structurally separated. It will only add cost in this
scaler market. And I think one of the things the
(07:26):
Commission confirmed today is in New Zealand's few cities that
have scale Auckland christ Church places like that, there is
a good level of competition. So in Auckland, thirty percent
of the offer is not in the two large players.
You know that customer is using and so competition is
emerging and going after the business where they see an
opportunity to do that sustainably. Is it's so different to
(07:50):
industries where there's been a monopoly asset. There just isn't
one in this industry. So structural separation like you might
do in a telco or a fuel environment just doesn't
make in from the structure.
Speaker 1 (08:01):
Yeah, well listen, good luck with it, Chris, and thank
you very much for coming to talk to us. I
appreciate your time. That's Chris Quinn's CEO of food Stuff's
North Island.
Speaker 2 (08:08):
For more from Hither Duplessy, Allen Drive listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio.
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