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Aussie shoppers have expressed their outrage after discovering a jar of Vegemite can be bought for a cheaper price overseas than at their local Coles or Woolworths. A retail expert told Yahoo Finance there were a range of factors at play with international pricing but urged disappointed retailers to “vote with their wallets”.
Adam Williamson, the creator of an internet browser plug-in that predicts supermarket prices, posted a video comparing the price of a jar of Vegemite at Coles in Australia with the price at UK supermarket chain Morrisons. He shared he was “blown away” by the findings.
“Vegemite is £2.19. Converting that into Australian dollars brings us to $4.23,” Williamson said. “The exact same Vegemite, so 220 grams, it’s $5 in Australia. What is going on?”
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It’s not only Morrisons that offers the cheaper price of the iconic Aussie spread. The same 220-gram jar costs just £2.20 from UK chain Tesco, or about $4.25 when converted into Aussie dollars.
At Woolworths, a slightly larger 280-gram jar of Vegemite is being sold for $6.20, or $2.21 per 100 grams. The supermarket giant does not sell the 220-gram size.
University of Sunshine Coast retail expert Professor Roberta Crouch said international pricing comes down to several factors.
“It would be around what they bought the Vegemite for wholesale, which might have been a very attractive price, and then whether or not the product attracts any particular tariffs or extra taxes on arrival so that’s where things like free-trade agreements come in,” Crouch told Yahoo Finance.
“And then it just has to do with what sort of margin the retailer is happy to apply. So by all logic, you would think it should be dearer because of the transfer costs if nothing else.”
Crouch said the fact that the price was slightly cheaper in the UK could suggest the retailers “are obviously not making a huge amount of margin”.
‘Shameful’: Aussies outraged over find
Aussies flooded Williamson’s video with comments to share their outrage over the pricing difference, with some calling it “un-Australian”.
“It’s cheaper to have Vegemite delivered to my door by Amazon than it is to buy it at Coles or Woolworths. Wild,” one claimed.
“Should send this to Vegemite. This is shameful,” another added.
“We are getting shafted,” a third wrote.
Others argued there were different supply and demand factors at play, along with differences when it came to factors like wages.
It’s not the first time shoppers have spotted Australian items being sold for cheaper prices overseas.
Williamson recently compared the price of Tim Tams at Tesco and Woolworths. He found a packet of the biscuits was sold at Tesco for £2.50, or $4.84, while the same packet was sold at Woolworths for $6 full price. The Tim Tams were made in New South Wales.
Coles also sells Tim Tams for $6 full price, however, they are currently on special for $4.50.
Yahoo Finance has contacted Bega, the company that owns Vegemite, for comment. Woolworths and Coles declined to comment, with Coles noting international prices were set by the supplier and manufacturers.
Coles also noted its net profit after tax is 2.6 per cent. That means for every $100 a customer spends with it, it makes $2.60.
Coles, Woolworths under scrutiny
The Australian Competition and Consumer Commission (ACCC) received a $30 million funding boost today to crack down on allegations of supermarket price gouging.
The consumer watchdog will investigate the pricing policies of major supermarket chains, including Woolworths and Coles, and other practices such as land banking.
Last week, the watchdog began legal action against Coles and Woolworths and accused them of breaching Australian consumer law by misleading consumers through discount pricing claims.
Crouch urged consumers to “vote with their wallets” and said this was important even more so as people felt the pinch of high prices across the board.
“Hunt around, look and see where Vegemite is a better deal or look where everything is a better deal,” she said.
“Consumers need to take a stand of what they’re willing to pay or not pay … It’s really important to shop around because the only way prices come down is when products sit on the shelf.
“Big supermarkets depend on stock turnover and so if things sit there, prices will drop.”
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