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.

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* What the manufacturer gets

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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.

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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.

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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.

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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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