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Why Coles have ‘dangerously low’ Tim Tam supplies

Arnott's manufacture a range of snacks, including Tim Tam biscuits.

Arnott's manufacture a range of snacks, including Tim Tam biscuits. Photo: Arnott's

Iconic biscuit company Arnott’s has reportedly stopped supplying Coles with some of its products, including Tim Tams, as a price war erupts.

Arnott’s has refused to supply Coles with up to six Tim Tam varieties – including original multi packs – and a host of its other biscuits because of the dispute.

The “biscuit war’ began when Coles rejected a request from the manufacturer to raise some of its product prices by up to 10 per cent, according to The Australian.

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“Arnott’s refused to give us the detail on this [price increase],” Coles managing ­director John Durkan told The Australian. “So we had to refuse the cost increase.

“When we refused the cost increase, Arnott’s refused to supply us.”

US company Campbell Soup Co., which own Arnott’s, stopped sending trucks to Coles warehouses from October 12.

Supply orders have been refused meaning supermarkets and distribution centres were running “dangerously low” on Tim Tams and other biscuits.

Coles managed to resist the price hikes initially, but eventually gave into rises on Original Tim Tam 200g packets because they were deemed a “must have” item.

Coles was also forced to accept price increases for Scotch Finger, Teddy Bear, TeeVee Snacks and Monte Carlo biscuits.

An Arnott’s spokeswoman told The Australian the company was not in a “biscuit war” with Coles over pricing and was not halting supplies.

There are 10 biscuit lines which Coles have refused to accept a price rise on including the popular Adriano Zumbo range of Tim Tams.

Campbell’s has also refused to sell four ranges of its product to Coles over the argument.

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