GLICK’S products won’t be available at Coles stores anymore because the companies couldn’t come to a financial arrangement that both sides were comfortable with.
The kosher bakery had previously supplied bagels, challah and kosher bread to the supermarket chain since the early 1990s, but that ceased last week.
“Coles pays every single other bread supplier, aside from one, on a ‘pay-by-scan’ system, meaning they only pay for the products that customers actually buy,” Glick’s general manager Nathan Glick told The AJN.
The pay-by-scan model means Coles can throw out, return or give away any products that aren’t sold without being charged by the bread supplier.
But because Glick’s didn’t have that arrangement with Coles, Nathan Glick said the supermarket was selling four-day-old bread to consumers to try and recoup money. The kosher bakery was unhappy with the situation as the bread was not fresh and therefore reflected poorly on the brand.
After five months of negotiations, a price-point could not be agreed for the pay-by-scan model and instead Glick’s pulled all products from Coles.
When Glick’s first entered into negotiations, Coles offered a pay-by-scan deal with a 15 per cent increase, and told Nathan Glick that he can save money by only delivering three times a week.
Glick rejected the offer as it didn’t address his main concern of product freshness.
“Coles are unwilling to accept the price increase because they want to continue to advertise low-priced Glick’s products,” Glick said.
“They use the low price to get shoppers in. They need a strong brand like mine to attract customers; they’re not lowering the price of other kosher lines. Coles have used me and now they are letting me down.”
Glick is confident his decision will not damage the bakery’s profitability, because he believes his customers are loyal to their products.
“Glick’s is not just a brand, it’s an institution. We know that customers who want a Glick’s product will still buy a Glick’s product, even if it’s not available in Coles.”
A representative from Coles told The AJN: “Glick’s has made the decision to no longer supply their products to Coles stores. We are currently working with Lichtenstein’s bakery and Savion bakery to bring our customers an even bigger kosher range from next week. We’re excited to be introducing delicious new products at great prices for our customers to try. We apologise for any inconvenience this has caused our customers.”