2001-09-26 Actually, I don't see the big deal here. Even though one would expect the half-litre price of any commodity to be half the one litre price, it is never done. There is always a premium for smaller amounts. So, why is it an issue here? If someone thinks the half-litre price is too expensive, then the consumer should as Han notes, buy the more economical 1 L size. Cola here is sold in litre sizes. A half-litre usually sells at about 89 �, whereas a litre sells for about 1.29 $ and the 2 L goes for about 1.49 $ Yet, sometimes, the 2 L will be on-sale for 99 �. In the US, a conversion from 1 pint (473 mL) to a half-litre would result in an increase in the amount per container by 27 mL. A switch from one quart to one litre would result in an increase of 54 mL. I wonder though if the American milk industry ever went fully metric if the container sizes would go from 473 mL to 450 mL and 946 mL to 900 mL. If the industry was forced to go to half and full litres, they would fight the change. Maybe that is why the industry is in no hurry to change. When the 3 L bottle was introduced in some markets a few years back, it was priced the same as the gallon it was meant to replace (3.78 L). As a result it hasn't caught on or expanded. Is this bottle still available in the market? John ----- Original Message ----- From: "Han Maenen" <[EMAIL PROTECTED]> To: "U.S. Metric Association" <[EMAIL PROTECTED]> Sent: Wednesday, 2001-09-26 01:52 Subject: [USMA:15391] Milk carton controversy in Ireland > This article in the Irish Times today. > This is not the way to go metric and it is just fuel for the BWMA and for > the Irish Anti Metric League. Half liter milk cartons for the price of pint > cartons and the company Glanbia stating that this is done because the cost > of the half liter cartons is too high. > What should consumers do? Buy milk in liter cartons! In the Netherlands we > have also half liter cartons but they are expensive and I doubt that many > people buy them; they buy liter cartons instead. The article states that the > selling of pint cartons has fallen to 13%, > > Han > > > > Kitt issues warning after Glanbia price rise > > > By Sean MacConnell, Agriculture Correspondent > The Minister for Consumer Affairs, Mr Kitt, intervened in the Glanbia milk > controversy yesterday and warned companies they should be upfront with > consumers and not seek to blame price rises on irrelevant factors. > > He was commenting on the decision by Glanbia, the largest liquid milk > processor in the State, to replace its one-pint milk packs with half-litre > packs which contain 62 ml less milk at the same price. > > Mr Des Geraghty, the SIPTU president who raised the issue, said the > management at Glanbia had claimed this was a move from imperial to metric > measurement which is reasonable enough. What is not reasonable is to > continue charging the same price. > > "In effect this is a major price hike being disguised as part of the euro > changeover. > > "If this practice were to become widespread, then virtually every commodity > will rise in price thereby increasing costs for all consumers and this will > drive up inflation," he said. > > But yesterday, a spokesman for Glanbia denied the issue had anything to do > with the changeover to the euro, and said it was to do with the change from > the imperial system to metric. > > Mr Michael Patton said there were additional costs involved in producing the > smaller packs for the half litre and that was the reason for the price > increase. > > "Our other sizes of milk cartons, litre and two-litre packs, will not be > increasing in price and they represent 87 per cent of our liquid milk sales. > Pints only represent 13 per cent of our business," Mr Patton said. > > He said the argument that those who purchased milk in pint cartons did so to > prevent milk going off, were wrong. He said a litre of milk would remain > fresh in a fridge for seven days. > > But last night Mr Kitt said the consumer needed to be aware what Glanbia had > done represented a significant increase in the price of milk which was not > influenced by outside factors, but was at the discretion of the company. > > "Indeed there is a moral obligation on the company to make this abundantly > clear in any announcements they make about the matter. I would have hoped > that if the company thought it necessary to rationalise their production > size this way, the responsible thing would have been to also adjust prices > accordingly," he said. > > "However, it is a matter for the consumer to decide whether or not in the > light of this increase they wish to continue to purchase the company's > product or perhaps switch to buying different units such as a litre or > two-litre pack." > > Ms Deirdre Clune, the Fine Gael spokeswoman on environmental and consumer > protection called on the Government to empower the Director of Consumer > Affairs to protect consumers from price increases because of the euro > changeover which must not be used as an excuse for "ripping off" consumers. > > Mr Pat Rabbitte, Labour's spokesman on enterprise, trade and employment, > called for a price freeze to protect consumers from unjustifiable increases > because of the introduction of the euro. > > The Glanbia decision was also criticised by RGDATA, representing the grocery > trade. A statement said it was appalled Glanbia had used the introduction of > the euro to increase prices to consumers. > > However, the Irish Creamery Milk Suppliers' Association came out in support > of Glanbia and said its actions were completely justified in light of wage > increases and other factors which had seen the price of milk remain > unchanged since January 2000. > > "All the social partners must face economic reality. The reality is that > wage increases have outstripped productivity and therefore prices will have > to increase. The price adjustments introduced by Glanbia are inadequate to > cover the increased costs faced by farmers. > > "In the past decade, the price paid to farmers has fallen significantly in > real terms," said Mr Pat O'Rourke, the ICMSA president. > > >
