McMilk at $1.75/litre

31 Jan, 2013 11:17 AM
Comments
1
 
McDonald’s licensee Michelle Orton-Dessaix, who owns four restaurants on the Gold Coast gives drive-through server Alisha Romign a hand with a sale of a 2- litre bottle of Norco milk to customer Joshua Brown at the Burleigh Heads restaurant.
McDonald’s licensee Michelle Orton-Dessaix, who owns four restaurants on the Gold Coast gives drive-through server Alisha Romign a hand with a sale of a 2- litre bottle of Norco milk to customer Joshua Brown at the Burleigh Heads restaurant.

BOTTLED milk has become a successful sideline to burgers and fries in a marketing trial run by quick-service restaurant giant McDonald’s on Queensland’s Gold Coast.

Drive-through and over-the-counter sales of two-litre bottles of light and full-cream milk have delighted NSW-based supplier Norco, and the McDonald’s franchisees whose stores began offering the bottle option, priced at $3.50 each, in mid-December.

However, independent grocery retailers in Queensland are far from impressed, blasting McDonald’s for undermining the market for a convenience store staple that has already been savagely eroded by the two-year-old $1/litre supermarket discount war.

The United Retail Federation (URF) said the trial was an “un-Australian” predatory move by “a cashed up big American bully boy brand”.

URF general manager Bruce Mills said a McDonald’s tilt at convenience grocery lines would severely impact established small “mum and dad” stores in the community.

While his 500 members were grateful that the Norco milk was not selling at a discount to rival the big supermarkets, he said some McDonald’s franchisees were talking about hoping the trial could extend to bread sales.

“McDonald’s should stick to flipping their mass-produced burgers ...leave milk and bread retailing to real local convenience stores that have served our suburbs since well before McDonald’s invaded Australia in the 1970s,” Mr Mills said.

But the trial at 14 McDonald’s outlets has been applauded by the chain’s participating licensees who had urged their corporate bosses to give it a run.

While they can’t reveal sales figures, or say when a decision was likely on whether the concept would become part of regular business at McDonald’s, the restaurant owners feel they are responding to a strong customer need by introducing the service.

Chairman of northern NSW’s farmer-owned Norco dairy cooperative, Greg McNamara, said the marketing initiative was proving a “great branding exercise for Norco”, which also supplies soft-serve ice-cream and dairy ingredients to the fast food chain.

“We look to deal with anybody who wants to use our brand positively to support their own brands,” Mr McNamara said.

“It’s an interesting concept that McDonald’s have trialled and I wouldn’t be surprised if it goes very well.” Michelle Orton-Dessaix, who owns four Gold Coast McDonald’s outlets including the busy drive-through at Burleigh Heads, said her restaurants had used Norco milk in their café products for years.

When the prospect of selling bottled milk was raised, there was no question the local milk processor would be given the business.

McDonald’s sought to use Australian-made supplies in its stores and the fact that Norco was entirely Australian owned made it a good business partner.

“This initiative is purely to meet the needs of our customers,” Ms Orton-Dessaix said.

“For a very long time, our drive-through customers have been asking us to sell them a carton of milk. Sometimes they’ll beg for a glass just to get them by.

“I can’t see it extending to bread or any other convenience items because the requests are not there for those products.”

Page:
2
TheLand
Date: Newest first | Oldest first

READER COMMENTS

Robert
19/12/2017 4:13:31 PM, on Australian Dairyfarmer

Attention Consumers: The Gold Coast franchisees selling you milk are also charging GST. WTF you might say. Yes, I have a receipt from the Palm Beach store which clearly shows $3.50 including 32 cents GST. Milk is GST free first and foremost. So how can buying the same bottle of milk from grocery retailers (GST free) attract GST when bought from McDonalds?

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Reconfiguring their farm into a higher producing pasture-based system has been behind the earthworks and irrigation installation undertaken by Stephen and Jess Knight, Stratford, in Victoria. 
16 Jan 18 Reconfiguring their farm into a higher producing pasture-based system has been behind the earthworks and irrigation...
Sorghum and maize can each play a part in providing home-grown feed on dairy farms but farmers need to carefully prepare and follow a plan to obtain the most value from these crops.16 Oct 17 Sorghum and maize can each play a part in providing home-grown feed on dairy farms but farmers need to carefully...
light grey arrow
Read the building regulations, there has been changes for farm buildings. None of this is
light grey arrow
Attention Consumers: The Gold Coast franchisees selling you milk are also charging GST. WTF you
light grey arrow
Hi, I am wondering if Bega has anything to do with dressings? Kraft miracle whip has gone from
Dairyfarmers are reminded that chemicals used on farms, including those used to clean and sanitise the plant and milk vats, must be registered with the Australian Pesticides and Veterinary Medicines Authority (APVMA).
20 Sep 17 Dairyfarmers are reminded that chemicals used on farms, including those used to clean and sanitise the plant and...
When Victorian dairyfarmer Lauren Finger's father said he had an idea, little did she know how much of an impact his invention would improve her on-farm productivity and safety.
05 Sep 17 When Victorian dairyfarmer Lauren Finger's father said he had an idea, little did she know how much of an impact his...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.