This article was last updated on April 16, 2022
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Deane Priest, Brumby’s managing director urges stores can make more money by increasing their prices now because shoppers would blame the carbon tax. He wrote in an internal newsletter in the June edition of Backmix, “We are doing an RRP (recommended retail price) review at present which is projected to be in line with CPI (consumer price index), but take the opportunity to make some moves in June and July, let the carbon tax take the blame, after all your costs will be going up due to it.”
The parent company of Brumpy, the Retail Food Group has apologized over the carbon tax suggestion given by the managing director considering it was ill-considered and unwise.
Tony Alford, the chief executive of Retail Food Group said that the stock exchange today the comments “were not sanctioned and are of significant concern to the board.” He said, “Following thorough investigation of the matter we are satisfied that the comments were not made in an effort to encourage our franchisee community to link (price) adjustment to the carbon tax.” “But rather (they) were foolish and ill-considered remarks when placed in the context of the internal franchisee communication,” he added.
He also said that “there will be further margin and cost pressures on our franchisee community”.
Dr Michael Schaper, the ACCC deputy chair said business were entitled to increase their prices as they saw fit but not to wrongly blame the carbon tax. He said, “It is business as usual, so long as any claims or representations made about the impact of the carbon price are truthful and have a reasonable basis.”
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