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Home / Business

Why do some supermarket cheeses cost 50 per cent more than others?

RNZ
14 Feb, 2024 07:24 PM3 mins to read

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Christchurch firefighters battle Port Hills blaze, KiwiRail fronts select committee and what’s on the chopping block in Wellington City Council’s cost crunch in the latest NZ Herald headlines. Video / NZHerald

By RNZ

Is all supermarket cheese created equal? The answer, it seems, is no.

While blocks of tasty cheese are made from the same four basic ingredients - milk, salt, culture and rennet - a survey of supermarket prices shows some brands are nearly 50 per cent href="https://www.nzherald.co.nz/nz/cost-of-living-crisis-higher-packaging-costs-a-factor-in-supermarket-price-rises-economist/RIPJFG2JOBBZZB32V25DODPJEE/" target="_blank">more expensive than others.

Suppliers say that difference is not just down to the packaging - the amount of time and resource required to make the cheese also factors into the price.

At Countdown Three Kings this week, a 1kg block of Woolworths tasty cheese was $13.90, while a 1kg Alpine block was $19.90. Photo / RNZ
At Countdown Three Kings this week, a 1kg block of Woolworths tasty cheese was $13.90, while a 1kg Alpine block was $19.90. Photo / RNZ
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At Countdown in the Auckland suburb of Three Kings this week, a 1kg block of Woolworths brand tasty cheese was $13.90, while a 1kg block of Alpine tasty cheese was $19.90 - a whopping $6 difference.

New World Auckland Metro was not advertising 1kg tasty blocks online this week, but an 800g block of Pams was being sold for $10.19, while an 800g block of Rolling Meadow was $12.90.

A 700g block of Mainland tasty cheese cost $16.79 - $2.40 per 100g, compared with $1.27 per 100g for Pams.

Pak‘nSave Royal Oak’s prices for its 800g blocks were similar: $8.99 for Pams and $12.99 for Rolling Meadow, while a 700g Mainland tasty cheese block was advertised for $13.29.

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Guy Blaikie, the domestic sales director for Fonterra Brands NZ, which produces Mainland, said its tasty cheese was aged for up to 18 months, leading to the higher price.

“We believe other [tasty] cheeses are only aged for around six to 12 months.”

That gave Mainland its “superior taste and quality”, he said.

“While the extra time we take in aging our cheese for longer comes at a cost, we believe it’s why Kiwis love the range.”

Fonterra did not have control over the shelf price of its products. As a supplier, it could only recommend retail prices to supermarkets, Blaikie said.

Foodstuffs New Zealand said in a statement the price paid for a block of cheese at checkout depended on a number of factors, including the volume of cheese made, packaging, cost of ingredients and the time taken to make and mature the cheese.

Prices at different stores, which were individually owned and operated, varied depending on a number of factors - including the price paid to the supplier and whether the product was on special that week.

Supermarket cheese blocks generally had the same, or similar ingredients, but the composition varied by brand or manufacturer, Foodstuffs said.

Woolworths’ 1kg tasty blocks were sold at a low price because the company had “deliberately made a pricing investment” in the product, Woolworths said in a statement.

“We know it’s a household favourite for many of our customers and we’re invested in keeping the price as low as possible for them.”

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Dairyworks, which produces the Alpine cheese brand, declined to comment.

- RNZ

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