Shoppers are being duped into paying 11.1 per cent more for milk because of packaging changes, the Consumers' Institute warns.
Anchor's new plastic milk container, in the shape of the old glass bottles, costs the same as its 1-litre plastic and cardboard packages but holds 100ml less milk.
The new 900ml bottle
is the same height as the 1-litre bottle, but the wording on the label shows it contains less milk.
Anchor's recommended retail price of $1.70 is the same for both its 900ml and 1-litre containers, making milk in the smaller bottle 11.1 per cent more expensive.
Consumers' Institute chief executive David Russell said the 900ml bottle was particularly insulting because the company had told consumers prices were coming down.
Anchor, a NZ Dairy Foods brand owned by billionaire businessman Graeme Hart, was "treating consumers with derision," he said. "The point is the price of milk should be coming down, not going up. This is a cheap commercial trick designed to fool consumers."
While the practice was not illegal, Mr Russell said, he strongly encouraged consumers to go for the content, not the container.
After more than a year of pressure from the institute, the two main milk suppliers, NZ Dairy Foods and Fonterra's Mainland, cut their wholesale prices by around 6 per cent this month.
Mr Russell welcomed the cuts, but said low international milk prices meant consumers deserved bigger savings.
"Prices should have come down 12 months ago and the cuts should be closer to 15 per cent than 6 per cent."
Anchor business development director Kevin Bowler said the new packaging was not meant to deceive consumers.
"What it comes down to is that the plastic used to make the new bottles is more expensive."
The new packaging was brought in a week ago after market research showed that consumers would buy it.
Mr Bowler said the containers were clearly labelled. "If people don't want to buy the 900ml they don't have to. We're not taking the one litre off the market, just testing this new one out."
Mainland dropped wholesale prices for its main brands, Tararua and Meadow Fresh, by 6 per cent two weeks ago.
Anchor followed suit last week but would not say by how much. Mr Bowler said: "It's close to 6 per cent but the actual figure is commercially sensitive."
- NZPA
