Cheap chook a dead duck Coles follows Woolies in raising price

WHAT was once the hottest of the supermarket battles – who had the cheapest chook – is now officially over.

Coles has buckled and raised the price of hot chickens from $9 to $10, following the lead of Woolworths which did so last month.

Coles confirmed to the Sunday Territorian Australia that the price hike was due to increasing production costs, including for grain due to the drought. Shoppers expressed their fury on Facebook, with one saying: “So much for down, down and staying down”. Coles and Woolworths have been at war over chicken for three years when they cut prices from $11 to as low as $7.90.

But both supermarkets increased the price from $8 to $9 in March last year.

The latest increase confirms that they are no longer prepared to use cooked chooks as LENARD’S CHICKEN’S LEN POULTER “loss leaders” to get customers into stores.

IBISWorld Senior Industry Analyst Nathan Cloutman told News Corp that Coles and Woolworths need another tactic to get sales other than cheap chicken.

“Cheaper isn’t the best way forward as they are going more and more into their own profit margins,” he said.

“The deli counters and bakeries are trying to get into fresh foods and bring in consumers and look at other ways of get- ting people in. They are also offering more online with Click & Collect to make it convenient.”

He said a new point of competition for them could be selling more free range and organic BBQ chickens, which is growing in popularity.

A recent IBISWorld poultry processing industry report found free range and organic chicken makes up 25.8 per cent of the market.

But others are still willing to discount to generate extra business. Red Rooster is selling two roast chickens in its restaurants for $20 in a deal targeted at families who are “time poor” and need something for dinner and lunch the next day.

Lenard’s Chicken founder Len Poulter said they sell hot chooks at some of their stores for $12.99.

“The price of chicken has to go up or the industry will destroy itself, it’s been a loss leader for Coles and Woolworths for too long,” he said.

“The price of chicken has to go up or the industry will destroy itself”