Sanitarium this morning announced it will continue to sell Weet-Bix at The Warehouse.
There was a big outcry last week when the company announced it would be pulling its Kiwi classic from The Warehouse shelves, where it was often sold at a lower price than at supermarkets.
However today, Sanitarium released a statement where it outlined how the company would be reducing allocation into the export market in order to keep supplying The Warehouse.
"We apologise for any concern created for our loyal consumers. The demand from all our markets, including the Pacific and Asian markets, has risen in the last couple of years exceeding supply capabilities and resulting in supply constraints," Michael Barton, general manager for Sanitarium New Zealand said.
"We have tried in that time to prioritise allocation of Weet-Bix to service all our customers, including New Zealand’s grocery, non-grocery, hospitality and export markets."
It comes after Sanitarium backtracked on its decision to cut supplies. (Source: 1News)
The Warehouse's Nick Grayston said he was "relieved and delighted" by the decision.
"We've been overwhelmed by the support and encouragement we’ve received over the last week from all over New Zealand. Kiwis have made it loud and clear just how much fairness and choice matter to them and we're 100% committed to making groceries more affordable."
Sanitarium acknowledged it received a letter from the Commerce Commission over the decision to pull its product from The Warehouse.
"Our view is clear that no breach of the Commerce Act has occurred," Barton said. "The industry process of stock allocation when supply is constrained is complex. Our view is that adopting a simple fair pro rata allocation across all our customers, including export customers, could in this situation result in a reduction of supply to Aotearoa."
Last week, a quick scan of online stores showed a box of Weet-Bix costs $6 at The Warehouse, $7 at Pak'nSave and Countdown, and $9 at New World.
Sanitarium said it does not set retail prices, those selling its products do.
Sanitarium is owned by the Seventh-day Adventist Church, and is a registered charity supporting breakfast clubs in schools.
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