Australian Newsagency Blog

Wow, if the merger proceeds they are likely to become what the Motley Fool calls a confection powerhouse. Newsagents are challenged when dealing with these mega FMCG suppliers: Mars, Wrigley, Cadbury. We want to have their products because they are what consumers know yet we cannot negotiate terms which enable us to be truly competitive.  It’s a catch-22.

The alternative is to go with second and third tier brands. That does not work unless they have a local connection and or are of superior quality.

At the small business end of town we have to provide a point of difference beyond service to enable our businesses to grow as much as they are able. The difference has to be reflected in our products and since we cannot do it on price, for most items, we will have to do it on range.

This Mars / Wrigley merger, if it proceeds, will encourage some thinking newsagents and other small business operators to look around for a product based point of difference in the confectionery area. We are playing in this space in two stores with some success but it’s too early to share details at the moment.

I’m not advocating blocking the merger - they can do what they like. I’m just musing about implications.