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Home / New Zealand

Buying tobacco won't earn petrol discounts

By Martha McKenzie-Minifie
2 Mar, 2007 04:00 PM2 mins to read

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Notices such as this began appearing at supermarkets operated by Foodstuffs in the past fortnight.

Notices such as this began appearing at supermarkets operated by Foodstuffs in the past fortnight.

KEY POINTS:

Buying cigarettes from a supermarket can no longer earn fuel discount vouchers after a directive from the Ministry of Health.

Supermarkets operated by Foodstuffs - which include New World and Pak'n Save stores - previously allowed tobacco to be included in the qualifying purchases to earn the discount
vouchers.

It reversed its stance after a letter from the ministry.

In-store signs and a note on shoppers' receipts began to appear during the past fortnight.

Supermarkets operated by Progressive Enterprises - which include Foodtown and Woolworths - never included cigarettes.

A ministry spokeswoman said the request related to smokefree laws. Other products were not being considered for a ban.

Foodstuffs Auckland general manager of strategy and new ventures Rob Chemaly said the supermarket's earlier policy was not breaking smokefree laws.

"We just didn't want to be at risk of someone believing that we might be [breaking the law]," he said.

All stores were supplied with posters informing customers of the change, and a line was added to till receipts showing "total value excluding tobacco".

Meanwhile, research released yesterday by ACNielsen about fuel discount vouchers showed that, despite the hype, they had a modest impact on establishing loyalty to supermarkets.

Retailer services director Michael Walton said 71 per cent of people who used the vouchers every time they bought fuel said the scheme influenced which service station they visited.

Just 41 per cent said it influenced their choice of supermarket.

"With every supermarket offering discounts on fuel, it's no longer a competitive advantage," said Mr Walton.

"For supermarkets now looking to find differentiation, juicing up their offer with even more generous discounts seems the next step."

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