FLOUR POWER

Is that $1 loaf really a bargain?

The $1 loaf sits unadorned at one end of every supermarket aisle across the country. The basic packaging makes no pretence about what the buyer is buying. Its label makes no bold claims about nutritional benefits or artisan origins. It is cheap, white bread, pure and simple.

But it is a loaf packed with financial muscle. Since its introduction four years ago, the $1 loaf has been either the first or second most-bought product in Countdown supermarkets, jostling with bananas for top spot.

Within a year of introducing the $1 loaf to its aisles in July 2014, Countdown had sold 19 million of them.

At the time of the launch, Countdown couched the $1 loaf almost as an act of charity. ‘‘Price is important to Kiwis, no matter who they are or where they live,’’ managing director Dave Chambers said.

‘‘We can’t impact the cost of our customers’ rent, mortgage or their power bill, but we have listened to what our customers want and can help families manage the cost of their shopping by delivering better value every day, like a loaf of bread.’’

The $1 loaf might well be one of the cheapest sources of energy you can find – it packs 1400 calories, so if you were of a mind to eat a whole one, you’d be consuming up to 70 per cent of your required daily intake.

You may not be getting much more in the way of benefits, though. Bread scientist Luca Serventi, professor of life sciences and agriculture at Lincoln University, explains that white bread is not harmful, but its nutritional benefits are minimal.

The $1 loaf is pure starch, which converts to sugar in the body – the body needs carbohydrates for energy. There are none of the minerals, fibre or protein that may be present in other more expensive breads.

‘‘It’s less nutritious, but it’s not harmful,’’ Serventi says. ‘‘If you are on a lower budget, then it’s a perfectly reasonable choice.

‘‘You’re introducing less minerals, less fibre and protein, but basically a good source of starch. There’s plenty of energy, which is the main thing our body runs on, so that’s excellent.’’

If there’s not a lot of nutritional benefit in a $1 loaf, there’s not much profit, either. Peter Rewi, president of the New Zealand Association of Bakers – which represents both Goodman Fielder and George Weston, which make the bulk of the branded bread in New Zealand supermarkets – acknowledges: ‘‘The $1 bread is a good value-for-money product for the consumer, but is unprofitable for bakers.’’

Norm Holley, secretary for the NZ Bakers and Pastrycooks Union and an ex-baker, sees it in starker terms. Given the cost of raw ingredients, labour and all the overheads of getting bread to the market, ‘‘there shouldn’t be a loaf of bread in New Zealand under $1.80’’.

The bakeries can’t make sufficient profit on $1 loaves, which he says affects the wider economics of the industry. He laments the power of the supermarkets to demand suppliers stick with producing bread at a price that threatens the viability of the bakeries.

Unsurprisingly, the supermarkets stand by their pricing and supply methods. And of course, once Countdown launched its $1 loaf, its arch-rival Foodstuffs (New World and Pak’n Save) wasn’t far behind.

‘‘Back in 2014 we had been looking into developing a supersharp bread offer and heard that our competitor was also exploring a bread deal,’’ Foodstuffs spokeswoman Antoinette Laird says. ‘‘So we accelerated our plans to launch at the same time. At the end of the day, our customers end up the winners.

‘‘Bread is a key category and we’re experiencing lots of change, innovation and growth; both from our suppliers and inhouse teams.’’

The big bakeries are not keen to reveal much about what goes into a $1 loaf. Both George Weston and Goodman Fielder declined The Press’ request for a look at the operation that churns out thousands of loaves each week.

Rewi said filming was a safety issue. ‘‘Should a camera or photographic equipment be dropped or fall during use, production would be shut down immediately and the entire area isolated to allow for cleaning and disposal of the products being baked at that time.’’

‘‘It’s less nutritious but it’s not harmful. If you are on a lower budget, then it’s a perfectly reasonable choice.’’ Luca Serventi Professor of life sciences and agriculture at Lincoln University