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.