23 January 2017
Vogels bread in New Zealand is dearer than Vogels in the UK mainly because bread here attracts tax while it doesn’t in the UK, says FGC.
Katherine Rich was asked by the NZ Herald to explain the difference in the price of Vogels between the two countries. She responded:
“The difference in price between the two countries is due to a number of factors. For a start, there’s no VAT (tax) on bread in the UK, while in New Zealand there’s GST of 15%. That will account for most of the difference. Also, UK Vogels is made by a different company to Vogels in New Zealand, so there will be different manufacturing cost structures. There’s also economies of scale: you can produce more items for less in a market of 65 million people, due to longer production runs, than you can in a market of 4.7 million people. It’s also worth remembering that manufacturers don’t set prices – retailers do.”