The new owners of Darrell Lea have connected with their pet-food roots and struck a deal to supply IGA supermarkets with Darrell Lea product. This will challenge sales in the existing network of independent retailers. It also sets the brand as a supermarket consumer brand more so than the premium brand of yesteryear.
I’d expect more newsagents to pull out of the product and look for premium confectionery products elsewhere.
This is a truly terrible development. Another lesson in how to trash a brand. As much as we have had a great relationship with our local DL wholesaler we will have to look elswhere for another premium confectionary brand. We have 2 IGA stores within 2 kms of us so customers won’t see our point of difference if they have the same range.
No stands being provided for their Xmas stock. They would not let us reduce our Xmas order due to their changed trading terms. It’s going to be an interesting time watching what happens over the next few months.
Perhaps we need to worry less about IGA and more about the deal that is being done with Coles and Woolworths. Coles are taking the nine best sellers and Woolworths still to confirm. The new owners obviously do not realise that the grocery channel and independent retailer cannot co-exist. I think it is time to diversify, or find an alternative.
JoJo finding an alternative is vital based on this insight.
Nirvana would be to tender for a replacement supplier, get one that is maybe one that is very small at present, and build a close and mutually beneficial relationship.
What makes you think newsagency is more premium than an IGA?
ads412, we phoned DL and they canceled our xmas orders no worries…
maybe cause after 2 emails and 2 faxed credit application forms and 6 phone calls we still dont have a new account with them…
Good Luck IGA
I’ve heard for further supermarket plans. If I were a DL outlet I’d be working hard on an alternative.
Yep agree mark.. there are plenty of options,
on the phone to customer service officer and she was refering to new DL and DUD DL…. i was not happy that they are refering to the OLD DL as DUD DL… poor form if you as me….
So over them already that i doubt i will continue any DL at all.
The new ownership is obviously looking to milk the brand for all it can draw from it. It’s not a new concept, I went through the same sort of thing with smaller brand lines 20yr ago in milk bars and got peed off. I got over it and moved on to things that would work for me.
That’s what you ppl need to do now.
Decide if these new arrangements fit your sell style, if the don’t, dump it and replace it with something you feel more comfortable with.
There are alternatives, I’ve lost contacts and not sure who those alternatives are now, but they are out there.
Go and find them, or add Pet Food to your inventory.
You are a better business base if you control it.
So control it.
Your choice.
Does anyone have any suggestions for another premium chocolate range they may carry instead of DL?
I had Dolci D’Oro for a while before I was granted a DL supply. It sold very well and in fact I find it much better chocolate in some of their lines than DL. Their Easter and Christmas range was excellent as well. The downside was that not that many people in town knew the brand and were a little reluctant to try it though most agreed the sample I was giving out were great. I opted to go with DL because of the fact it’s a well known brand and readily asked for in the shop.
Whilst I’m appalled at the decision by DL to go into supermarkets I’m lucky in that I don’t have one near me. All the same I would be looking at alternatives for sure.
Not so long ago I owned a quality gifting and general merchandise store and I stocked a range of products from Chocolatier Australia. The product sold well and the service was great.
I’m starting to get enquiries from current stockist of DL. We currently stock the gourmet chocolate segment in WA with our award winning chocolates. Let me know know if you’re interested in finding out more, or look us up…. Fremantle Chocolate.
I personally think the most disappointing thing thus far is we have virtually had zero contact from the new owners except for getting sent the new account application.
Has the decision already been made that the current network is not needed?
If we dont proceed with DL what do we do with the current fixtures? Anybody know?
Cheers
Al
Yep I know Allan. I cancelled my xmas order today. I will put a mixture of DL and other chocs on the stand. After the DL is gone i will pull the blue oval off and use the stand for the others. You are right. Pretty much zero interest.Dicksons are the contact point for stock, and DL are showing nil interest, from my perspective.
Allan I suspect their model with newsagents will be indirect whereas their engagement with supermarkets and mass generally will be direct. It’s a shift newsagents need to watch for and respond to.
This is a dissapointing decision from new owners. But i guess they want a footprint in supermarkets.
Biggest losers will be consumers who like those ranges which supermarkets do not take on.
Might stock up on my favourite Peanut Butter Brittle!!! While i still can.
From todays SMH.
Quinn Foods, another family company, has already negotiated a distribution deal with IGA, which will stock Darrell Lea products by the end of this month. The company is also talking to Coles, Woolworths and other supermarkets, Mr Quinn said.
Read more: http://www.smh.com.au/national/rocky-road-to-revival-stores-welcome-back-darrell-lea-treats-20121008-2795n.html#ixzz28k3Dboks
Does anybody know what we are supposed to do with the DL fixtures ? We have a mini unit that we no longer need.
well I am thinking of picking DL up I know it looks 50/50 but I still see Hope.
Brett,
We have had no contact whatsoever from the new owners of DL (apart from a new contract to sign) and this in my own opinion tells me they arent interested in continuing the arrangement we have. They are doing deals with the “Big Boys” and I wish them well in those endeavours but I need a point of difference…..time to find another product with a better margin….they must be out there.
We are actually getting in a new range from a small Australian company called Chocolate Grove.
While we are introducing the range into the supermarket side of our business, we’re doing it directly. The product isn’t available through the IGA>D Warehouse so it is unlikely to stocked in a huge range of supermarkets.
We’re introducing the clear tubs (which would suit a store that sells to self-consuming or impulse shoppers) http://www.thehappyapple.com.au/store/index.php?main_page=product_info&cPath=89_91&products_id=434 .
Those newsagencies that cater more to gift seeking customers may like the look of their boxed lines http://www.chocolategrove.com.au/Packaging/tabid/67/Default.aspx and cylinders http://www.chocolategrove.com.au/Packaging/CylinderLines/tabid/99/Default.aspx
There is a big range available.