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Milk bottles on supermarket shelves - Source: ONE News -
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The two major supermarket chains are dismissing as a "stunt" upmarket chain Nosh Food Market's move to cut the price of its two-litre bottles of milk by more than half to $2.
Nosh says spiralling milk prices have seen the cost to households rise by 41% since 2007 and milk now costs relatively more in New Zealand than in Australia, South Africa, the UK and US.
Nosh says that as a result people are drinking less milk and in many cases substituting it for cheaper, less healthy beverages, when this basic household commodity should be available to all New Zealanders, not just those who can afford it.
Nosh Director Clinton Beuvink has told ONE News the $1-a-litre discount on the company's Cow & Gate brand two-litre bottles, introduced today, will apply until the end of February.
After that a discount will continue but they will have to review how much it will be, he said.
Progressive Enterprises spokesman Luke Schepen, says the move looks like a "bit of a stunt".
"We already offer very good milk prices and best possible value," Schepen told ONE News.
Progressive, which operates Countdown, Woolworths and Foodtown supermarkets, is not looking at matching Nosh's discount price, he said.
General manager of retail Rob Chemaly at Foodstuffs Auckland, which operates Pak'nSave, New World and Four Square, says the price cut is a "gimmick" and "designed to drive customers into a store where the majority of products are significantly more expensive than your average supermarket."
Chemaly said he did not believe the move was sustainable and Nosh would have to recoup the costs by upping prices on other products.
Beuvink admits Nosh will be losing "more than 50 cents a bottle" with the $1 discount.
He said supermarkets are "probably throwing darts" at his head on a dart board.
"They'd like to leave that skeleton in the closet", he said, adding that the supermarkets are probably "not too happy" about the discount.
Nosh said it hopes its move will be a catalyst for permanently driving down the price of milk, with major supermarket chains and other interested parties doing their part in making milk more affordable.
Nosh has six stores in Auckland, Hamilton and Matakana.
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