Nosh to bottle milk?

In his quest to find an affordable milk price, Nosh Food Market director Clinton Beuvink aims to bottle his own.

Nosh reduced the price of milk to $2 for two litres in its six stores in early February in protest against excessive industry mark-ups on milk.

The company extended its discount offer in to March and has continued to receive wide ranging consumer support for the idea.

Mr Beuvink says it’s time for Nosh to think about bottling its own and the company is actively looking for a business partner to do so for the Auckland-based chain.

“There are only a few processors of milk. It is an area where I would like to see more competition to ensure consumers are getting a fair deal.”

“We sell millions of litres of milk a year – and this year we’ll sell a lot more. We are expanding stores in a tight geographical grid which makes our distribution costs very low. There’s a guaranteed market right from the word go.

“We have done the sums and we believe an independent bottler would easily recoup the cost of setting up a factory in Auckland to supply us and our family of retail friends. Sustainably, milk can be a lot cheaper for consumers.”

Mr Beuvink says making excessive margins on milk is ‘anti kiwi’ and the supermarkets that loss-lead unhealthy food, soft drinks and alcohol could do the same for milk.

He maintains that a $2 million pasteurisation plant in Auckland would enjoy low distribution costs to the biggest market in the country.

“The cost is not high in the scheme of things. Nosh would take care of demand but we need someone to put up his hand and say ‘I’m in’.”

Asked why Nosh wouldn’t set up a plant itself Mr Beuvink says the company is a retailer of foods and not a manufacturer.

“We work on tight margins and our skills are in retail – an existing bottler could easily adapt by adding a pasteurising unit.”

Mr Beuvink says supermarkets generally make about 30 per cent profit on milk but only around 10 per cent on soft drinks. Nosh will continue to make a loss on milk during March he says.

Cow & Gate milk (two litre bottles only) is available at all Nosh locations until 31 March 2012 at the fixed price of $1 a litre ($2 per 2 litre bottle).

For store locations visit www.noshfoodmarket.com

·         People interested in becoming involved in Mr Beuvink’s drive for more affordable milk can contact him in the first instance by email at contact@noshfoodmarket.com.