Mr Gubay lays complaint

Press, Volume CXIII, Issue 33158, 23 February 1973, Page 2

Mr Gubay lays complaint

Zealand Pres* Association) AUCKLAND, February 22. The supermarket millionaire, Mr Albert Gubay, has laid a complaint under the Trade Practices Act against the Llnilever New Zealand group.

The complaint is now being investigated by a trade practices and prices examiner within the Department of Trade and Industry in Wellington. The complaint alleges that Levers New Zealand. Ltd. the subsidiary of Unilever which has a monopoly on the manufacture and sale of soap powder and detergent in this country, has refused to supply Mr Gubay's companv on a direct basis. The Welsh-born discount king, now master-minding a new chain of supermarkets

in Auckland, says the problems he has had with monopoly producers in New Zea land have meant a month’s delay in the opening of his first three Guys stores. The first store, in Mangere will now open in late March Mr Gubay says soap powders and detergents would represent about 10 per cent of his total business. He said Levers had told him that before he could buy directly from it he must first buy from it SIOO.OOO worth of goods “in the immediate preceding 12 months or shorUntil such time, he could bus their products ontv through a direct account point such as Bond and Bond Foodstuffs. Foodtown, or Shoprite—the supermat ket organisations with which Mr Gubay wants to compete “That’s like giving my competitors a 6 per cent head start.” he said today He said he had offered to place an immediate SIOO.OOO order with Levers, but the company still refused to supply him directly. Levers has said that its

$lOO,OOO order criterion applies to organisations which want to do business with it. and is not a means of deny ing Mr Gubay its products However, another Unilever subsidiary. Birds Eye Foods, has agreed to supply Mr Gubay on a direct basis. This company does have competition in New Zealand. In his complaint under the Trade Practices Act. Mr Gubay has quoted section 19 which deals with “any unjustifiable refusal by a wholesaler to sell or supplv goods to a retailer."