Bakery 'bread war' casualty

Six Napier jobs have been lost at the Coupland's store as supermarket chains sell bread below cost. Photo / Warren Buckland

A "disgusting" bread war bringing $1 loaves to supermarket shelves has been blamed for the loss of six Napier jobs.

Coupland's Bakeries is closing its Thackeray St bakery on February 15 and the South Island chain's managing director, Karel Adriaens, said low-cost loaves were the main reason for "a changed trading environment" which had caused the closure.

The Napier store incurred losses "that remain unsustainable to our business under the current trading environment".

The $1 loaves sold by the two supermarket chains was the main culprit and price competition had expanded into other baked goods, he said.

Coupland's produces a range of baked goods, from pizzas to biscuits.

"We are having to meet pricing otherwise we are in a worse situation," he said.

The Napier branch suffered the most from the bread war and no other closures were planned.

The closure was no reflection on Napier employees "because they have worked hard and to the best of their ability to improve sales in the Bay".

Bakers and Pastrycooks Union secretary Norm Holly said the bread war was a "disgusting" practice because it undermined economic realities.

"You can't sell product at the same price as 10 years ago - somebody has to pay the price when supermarkets are deliberately selling below cost," he said.

More job losses were likely because supermarkets deciding the price of other people's products was "problematic throughout the whole industry".

"It is going to be absolute disaster for workers."

He said Coupland's produced its own low-cost loaf, from its North Island distribution centre in Hamilton, to compete with main-brand competitors George Weston foods and Goodman Fielder.

"A dollar will become the norm. Once bread's a dollar you are forced to lower prices on other products or you don't sell them."

Mr Adriaens said the company had up to three years to run on its lease.

"We are working hard on finding a local retailer that may wish to continue to support our brand in Napier."

The closure was a very difficult decision to make "but we had to make some hard decisions to support the whole business".

The family-owned Christchurch-based business operates 26 stores in New Zealand, supported by manufacturing facilities in Christchurch and Hamilton.

Foodstuffs spokesperson Antoinette Laird said $1 bread "continues to be well received by our customers around the country".

"Feedback for this initiative remains positive and consumers appreciate being able to access a staple item such as bread at such competitive prices."

Countdown spokesperson Jess Miller said $1 Homebrand loaves were available throughout the country, including Napier, "and are very popular with customers".