Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Musgrave Group and Tesco

4:25 pm

Mr. Ian Allen:

Yes, and if the price goes up, we still promote the product and pay the supplier the increased price. The investment is fully funded by Musgrave.

I wish to clarify one point on milk. Ms Clancy mentioned something earlier about the same price. We presume the farmer gets the same price for branded and own-brand. We pay our suppliers a higher price for branded milk. We do not have a relationship with the farmer so we are not sure what a farmer gets but we believe it is the same price for branded and own-brand milk. The reason we pay a higher price is probably to do with the fact that branded international suppliers have marketing campaigns and invest in brands but the same investment is not made in own-brand products.

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