Have you been noticing gaps in the freezer section in your supermarket?
Well, that may be about to become worse with the collapse of Australia’s largest cold chain trucking company, Scott’s Refrigerated Logistics.
Many consumers hit by the cost-of-living crisis have been turning to frozen fruit and vegetables as the costs of fresh produce escalate due to supply chain issues, increased fuel and fertiliser costs and flooding.
“The frozen alternative is always cheaper than the fresh alternative,” Canstar’s Gary Mortimer told 9news.
“Frozen cobs of corn can be $3, fresh is nearly three times that amount at $9,” Mr Mortimer said, although corn in some areas is now in season and super cheap.
Normally, the collapse of one trucking company would be quickly absorbed by other operators mopping up capacity, but Scott’s collapse will affect consumers for several reasons.
- They supply all four major supermarket groups – Coles, Woolworths, IGA and Aldi – so any interruption to business is going to be Australia-wide.
- As a specialist cold and frozen trucking company, it will be hard for another company to just step in.
- The capital Scott’s has in refrigerated trucking would run into hundreds of millions. No company in Australia is going to be able to get up to speed quickly enough to match Scott’s trucking numbers.
- Another company may be able to buy the trucking stock outright or piecemeal, but that may take months, or even years, to negotiate and sign contracts, once again affecting supply.
- All the major retailers would also have supply contracts in place that, once again, will take months to renegotiate with any new owner or owners.
- Scott’s store inventory at cold storage warehouses for its supermarket clients will be in financial limbo until the receivership decides what to do with it.
Scott’s heralded that it was in financial trouble in 2021, claiming an IT upgrade, flooding and the pandemic had affected the bottom line. The razor-thin margins in trucking supply probably didn’t help.
The receivers have announced Scott’s will operate as business as usual for the “foreseeable future”.
This week’s best deals
IGA
Sensible: V8 Juice 1.25L varieties, $4, save $1.50. V8 is one of those brands that kicks along despite hardly ever being advertising and pretty much sticking to the same formula for decades. You’ve got to admire that. I hear the vegetable juice is great for hangovers, but I’ll stick to a strong tea and hot shower.
Indulgence: Brookvale Ginger Beer Varieties, six pack $26. Alcoholic ginger beer is popping up all over the place and I’m here for it. It’s more tasty than cider and less bloaty than beer. I still think there’s a way to go as far as variety goes, but I’m prepared to have a crack at this to add to my repertoire.
See the catalogue here.
Aldi
Sensible: Ironbark Pork Ribs, $16.99/kg, save $1.50. This stuff is the bomb for tasty barbecue meals. Marinate, and then bung on the grill. Gnawing on bones brings out the caveman in us all.
Indulgence: Boneless butterflied chicken, $9.99. This is a cult product with Aldi fans and I can see why. It’s already marinated and the boneless bit means it cooks in about half the time a roast chicken would take. Perfect mid-week meal when you can’t be bothered.
See the catalogue here.
Coles
Sensible: Swisse Vitamin D and Memory and Focus 250 pack, half price $15.50. As the benefits of vitamin D mount up, why wouldn’t you buy a ton of the stuff at half price? Probably the most sensible buy of the week.
Indulgence: Cadbury Happy Easter Egg Carton, 15 pack $6, save $4. Get some practice in for the Easter egg hunt by finding places to keep these away from your family now.
See the catalogue here.
Woolworths
Sensible: Steggles whole roast chicken, $3.50/kg, save $3/kg. This represents remarkable value. I sense roast chicken on the menu this week, even if it’s not really the weather for it. I mean, even just saying roast chicken out loud makes you feel better, doesn’t it?
Indulgence: Patak’s Simmer Sauce range, $4, save $1.50. Not really an indulgence, but when you consider the time and effort of making your own curry paste versus tipping some of this into the pot, maybe it is.
See the catalogue here.
Do you buy frozen vegetables to save on fresh? Have the shortages affected your budget? Why not share your experience in the comments section below?
Also read: Reuse these ‘disposable’ items and save
