Iconic Australian food brand Dick Smith Foods will cease operation after 19 years in business.
Founder Dick Smith announced yesterday he would be shutting the business down, despite the support from local retailers such as Coles, Woolworths and IGA.
In a statement, Smith blamed foreign-owned entities, specifically Aldi, for the reason behind his decision.
"It’s amazing that foreign-owned Aldi is now our most trusted brand, whereas Coles, Woolworths and Metcash (IGA) have done everything they can to try and keep our products on the shelves, are not as respected," Smith says.
The businessman then published an open letter addressed to the owners Aldi owners Karl Albrecht Junior and Beate Hesiter.
In the letter Smith claims Aldi - which in research agency Roy Morgan's latest survey was ranked as Australia's most trusted brand - exploited cheap labour overseas to keep costs down and doesn't support the economy.
“You are privately owned, so it is not possible for Australians to share in the wealth creation of your company, and you also don’t have the costs of publicly listing on the stock exchange which would result in the employment of many additional Australians," he says.
"Your formula of employing less staff per dollar turnover compared to the typical Australian owned supermarkets will ultimately mean less Australians employed.
"I have an important question to ask you. When will enough be enough?"
Aldi Australia CEO Tom Daunt refuted Smith's claims, outlining that the company supported Australian consumers, businesses and munfacturers.
"We are not a business trying to artificially accelerate market share and we’re not looking to match the store count of our competitors," he said.
"We do not cut corners, we do not abuse our market power, we do not mislead our customers. We do not avoid tax payments, we do not squeeze our suppliers. We keep things simple and we focus our attention on what matters most to consumers."
The Australian brand, which includes 13 products, will be wound down over the next 12 months.
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