THE WESTERN CANADIAN LUMBER WORKER

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F Couneil of Can

- DARLINGS
OPPED BY MEDIA

ers fight brought into town (Trail, B.C.) Kent Rowley, secretary
adian Unions (that is, the whole council only has
nding the battle call against not just the Steelworkers but inter-

jon, president of CWU was feted in Ottawa recently by the Committee
ent Canada. Frolicking at the head table that night were Consumers
ray and Industry Minister Alastair Gillespie.

‘Swanson have been the darlings of the CBC, The Toronto Star and
nada-firsters in the media industry. Somehow, the CWU defeat became
tory for most of the red-blooded Canadian-boys in press, radio and TV.”

By MARC WYMAN
you eat — and ten out of
ple do — you’re aware
food prices have been
more quickly in recent
s than prices in general.

In fact, the food price index
was 10.2 per cent higher in
February than it was a year
before. The average of all
items on the consumer price
index had risen 5.8 per cent in

_ the same period.

A House of Commons
committee is investigating the
spread between what the
farmer gets — much less of a
cut than he used to — and what
the consumer pays.

Who’s the culprit? The

, distributor? The packager?

. The advertiser? The retailer?

_ There probably isn’t one single
villain, but many.

Yet one factor is something
of a mystery. Nobody wants to
talk about it. It’s the price
charged by the big chain
supermarkets to manu-
facturers to give selected pro-
ducts prominent display.

_ Forexample, if a food manu-
facturer would like a big dis-
play, and advertising, for a
product, he’ll pay Dominion
Stores almost $10,000 for its 147
Ontario outlets.

Manufacturers are
frightened away from talking
openly about these package
deals because the chains hold
enormous power. “‘If they get
mad at you, they can make
your life a hell,” said one big
“manufacturer, who refused to

' be identified.

a

* What the manufacturer gets

S

DOD STORES SQUEEZE
HE MANUFACTURERS

for his $10,000 is the assurance
that his product will be pro-
minantly displayed at the end
of an aisle, that a card will
draw the shopper’s attention to
a special ‘“‘value,’’ and that the
chain will advertise the value
in the local media.

The chains defend all sorts of
arrangements with food distri-
butors, including manu-
facturers’ ‘‘allowances,”’
rebates and discounts. Some
special displays involve ‘‘co-
operative,’’ or shared-cost,
advertising.

The chains say they’re lucky
to break even on special deals.
They’re often loss leaders, des-
igned to lure customers to their
stores instead of the compe-
tition’s.

Suppliers claim that the
chains run their operations
inefficiently and hence are
becoming ‘“‘more creative” in
their ““arm-twisting
techniques.”

One technique is getting
rebates from suppliers based
on volume sales. The chains
claim that the manufacturers
make higher profits and can
afford to pay the price gim-
micks.

The retail food business is
based on built-in operating
costs of about 17 per cent of
sales. Markups are designed to
produce an after-tax profit of
about 1 per cent.

In this battle of words bet-
ween _manufacturers and
chains, the truth is hard to dis-
cern.

Another possible cause of
high food prices is advertising.

JOBS OPEN AT
JUBILEE
SUMMER CAMP

Sees. CHILDREN’S
q ILEE SUMMER CAMP
ASSOCIATION is now ready to
interview prospective appli-
cants for various jobs at the
p from July 3rd to August

Camp will be running
ons for girls 6-14

SS

BROADWAY
PRINTERS
LIMITED

printers and lithographers

It’s no news that retail prices

in any business must include
the retailer’s advertising costs.

Mrs. Maryon A. Brechin,
president of the Consumers
Association of Canada, says
that, if we must have adver-
tising, let it be useful. ‘“‘Adver-
tising which asks. only for a
product switch is not useful.”

One form of ‘‘useful’’ adver-
tising, says Mrs. Brechin, is
that which provides nutritional
information. Another is the ad
which tells how the food being
huckstered may be used as a
substitute for something else.

It is also true that food prices
depend on seasonal factors
such as crop yield, drought,
and diseases of animals and
plants.

-- Hehas Ce

You can help Tommy by
understanding more about
cerebral palsy. By realizing

a break in the line of com-
munication between the
brain and the body’s mus-
cles. And by understanding
that Tommy and the kids
like him can be helped to
lead useful and rewarding
lives. For further information
write to George Armstro
Maple Leaf Garde
Toronto, Ontaria.

padliage- IE. Seat: pas

ON THE LIGHTER SIDE

A Vancouver man took four
friends to visit a farm he
owned in the interior. The
visitors entered the tenant
farmer’s house and were a
little embarrassed when they
discovered he had only two
chairs. They stood around

cerebral palsy for what it is: °

ers : Canadian Cerebral Palsy Association

‘ Tommy will never make the Leafs.

pral Palsy.

\

F

awkwardly, and finally the
owner said, ‘‘I don’t believe
you have enough chairs here.”’

The old farmer took a dip of
snuff and muttered, “I. got
plenty of chairs — just too darn
much company.”

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