Watch out! Woolies says these items will be harder to buy in the coming weeks
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As the weather gets hotter and the days get longer, our minds naturally start turning to summer – and all the fun things that come along with it.
We start planning our beach holidays, we make sure our wardrobes are filled with light, airy clothes, and we begin stocking up on all the delicious summer foods we love so much.
But if you're someone who loves nothing more than munching on a bag of chips by the pool or digging into chargrilled corn at a BBQ, you might want to think twice before heading to your local Woolies last minute.
That’s because according to the supermarket giant, frozen vegetables and potato chips are in short supply. (Oh no!)
‘The big issue right now… is in frozen vegetables,’ Woolworths Group Chief Executive Brad Banducci said.
‘In particular, corn and potatoes, with the very poor growing season that we’ve had in Tasmania.’
‘I don’t want to overplay anything at this stage, in potato crisps … (but) there are some supply issues on the way through there, so that’s the big one.’
Excessive rainfall on the island hampered potato growth and harvesting efforts, with local producers already concerned about the next crop cycle.
Potato chip manufacturers and restaurants have also felt the downstream effects of the crop shortage. Producers assured customers of the availability of their beloved chips while some restaurants temporarily took potatoes off their menus.
The same conditions are also expected to redirect more corn to use as animal feed over lower-quality crops.
‘So that is causing some challenges in the frozen category and some risk of undersupply in some stores.’ he said.
But wait, there’s more (unfortunately)!
Another summer staple Banducci noted had season delays are cherries, which like corn and potatoes, are also at risk over unusually rainy weather.
Consumers might be shelling out more dollars in the coming days for the fruit because of tight supply and increased demand as Christmas nears, according to market analysts.
As the holidays near, Woolworths has also taken on a ‘cautiously optimistic’ stance amid rising food inflation, which is seen to temper consumer spending.
‘We continue to see early signs of customer purchasing habits changing but it remains unclear how much of this relates to cost-of-living pressures compared to COVID normalisation,’ he said.
Food prices rose by 7.3 per cent over the last quarter, according to the retailer.
Year-on-year, Woolworths Group’s earnings rose by 1.8 per cent, or $16.36 billion.
Despite the higher revenue, its food-related operations saw lower sales.
‘In our food businesses, sales were below the prior year, as we cycled strong growth driven by Covid-related restrictions in (fiscal year 2021) and (fiscal year 2022).’ Banducci said.
‘Australian food sales decreased by 0.5 per cent and New Zealand food sales were down 2.5 per cent compared to the prior year.’
‘On a three-year compound annual growth basis, sales in Australian food were up 5.3 per cent and up 4.7 per cent in New Zealand food.’
Now, this story might have you rethinking your next grocery purchase.
But don’t worry, we have you covered: check out this list of healthy food options under $75!
What is your reaction to this announcement from Woolies? Will the shortages of these crops change the food on your table?
Tell us your thoughts and opinions below!
Source: YouTube/7News
We start planning our beach holidays, we make sure our wardrobes are filled with light, airy clothes, and we begin stocking up on all the delicious summer foods we love so much.
But if you're someone who loves nothing more than munching on a bag of chips by the pool or digging into chargrilled corn at a BBQ, you might want to think twice before heading to your local Woolies last minute.
That’s because according to the supermarket giant, frozen vegetables and potato chips are in short supply. (Oh no!)
‘The big issue right now… is in frozen vegetables,’ Woolworths Group Chief Executive Brad Banducci said.
‘In particular, corn and potatoes, with the very poor growing season that we’ve had in Tasmania.’
Abnormally wet conditions have affected the production and harvest of various Australian crops like potatoes. Credit: Pexels/Pixabay
‘I don’t want to overplay anything at this stage, in potato crisps … (but) there are some supply issues on the way through there, so that’s the big one.’
Excessive rainfall on the island hampered potato growth and harvesting efforts, with local producers already concerned about the next crop cycle.
Potato chip manufacturers and restaurants have also felt the downstream effects of the crop shortage. Producers assured customers of the availability of their beloved chips while some restaurants temporarily took potatoes off their menus.
The same conditions are also expected to redirect more corn to use as animal feed over lower-quality crops.
‘So that is causing some challenges in the frozen category and some risk of undersupply in some stores.’ he said.
But wait, there’s more (unfortunately)!
Another summer staple Banducci noted had season delays are cherries, which like corn and potatoes, are also at risk over unusually rainy weather.
Consumers might be shelling out more dollars in the coming days for the fruit because of tight supply and increased demand as Christmas nears, according to market analysts.
As the holidays near, Woolworths has also taken on a ‘cautiously optimistic’ stance amid rising food inflation, which is seen to temper consumer spending.
Woolworths flagged the shortages of potato chips and other frozen foods this summer over crop supply issues. Credit: news.com.au
‘We continue to see early signs of customer purchasing habits changing but it remains unclear how much of this relates to cost-of-living pressures compared to COVID normalisation,’ he said.
Food prices rose by 7.3 per cent over the last quarter, according to the retailer.
Year-on-year, Woolworths Group’s earnings rose by 1.8 per cent, or $16.36 billion.
Despite the higher revenue, its food-related operations saw lower sales.
‘Australian food sales decreased by 0.5 per cent and New Zealand food sales were down 2.5 per cent compared to the prior year.’
‘On a three-year compound annual growth basis, sales in Australian food were up 5.3 per cent and up 4.7 per cent in New Zealand food.’
Now, this story might have you rethinking your next grocery purchase.
But don’t worry, we have you covered: check out this list of healthy food options under $75!
What is your reaction to this announcement from Woolies? Will the shortages of these crops change the food on your table?
Tell us your thoughts and opinions below!
Source: YouTube/7News
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