Woolworths has replaced a popular brand of Australian-made cosmetics with a cheaper overseas product.
The supermarket’s decade-long relationship with G and M Australian Cosmetics ended abruptly when the Australian company reportedly raised its wholesale price.
While Woolworths said the new pricing proposal forced them to take the product off its shelves, it was what the retailer did afterwards that prompted the cosmetics company to fight back.
G and M Australian Cosmetics claim Woolworths replaced its line of skincare products, such as Emu Oil moisturising cream, with a cheaper look-alike brand, according to the ABC.
G and M Australian Cosmetics founder and managing director Zvonko Jordanov said the lookalike product, which cannot be named for legal reasons, boasted almost identical containers and labels to the Australian product.
He said this was what prompted the company to take legal action against Woolworths.
Since action was taken, Mr Jordanov said he could not comment on the issue but said it was settled in a ‘nice manner for us’.
The lookalike product was also removed from Woolworths’ shelves shortly after.
A Woolworths spokesperson said the decision to switch out the popular Australian brand with a cheaper replacement came down to costing, the ABC reported.
When G and M Australian Cosmetics floated new prices, Woolworths said it did not accept them and was committed to delivering the lowest prices for its customers.
While Woolworths was entitled to its decision to discontinue selling the skin care product based on pricing, it was the supermarket’s decision to replace it with a similar-looking product that raised a red flag.
The Australian company, based in New South Wales, was not the only one disappointed by Woolworths’ decision to drop the product.