INDEPENDENT coffee shop owners say they are penalised by Jersey Dairy because they have to pay full price for milk – unlike supermarkets in the Island.
The owners of The Loft, Locke’s and Dandy say they speak on behalf of at least 25 businesses in Jersey, including cafes, restaurants and hotels, who say they are being treated unfairly.
Jersey Dairy say that it is open to solutions to help the businesses and it is currently reviewing the way it delivers milk – an exercise which will be concluded shortly.
The Loft owner Dave Double told the JEP that independent businesses simply wanted a level playing field.
“We want to provide value for money to our customers. If we had to buy everything at full price, we would not have a business.
“We have to buy Jersey milk but we and our customers love the product. The public don’t know that businesses like ours don’t get a discount for milk and when we tell them, they’re amazed. I buy around 18,000 litres of whole milk a year.
“This is not about taking away from our farmers. We would be quite happy if everyone paid full price and the farmers got more, but the market has to be fair. We know supermarkets get a discount, but we don’t get any.
“Jersey Dairy has told us this is down to delivery costs but we’re all close to supermarkets and we’d be quite happy to pick up from a central location.
“I do see this is a threat to independent coffee shops in Jersey. If coffee becomes too expensive, people will stop coming in. Coffee has gone up 25 per cent in the last year, we’ve just lost a major wholesaler in Cimandis and staff costs are always rising.
“I’m sure Islanders would prefer small local businesses with character rather than generic high-street chains in Jersey.”
Why is milk cheaper for John Lewis and M&S but not for us?
Dandy owner Jamie Hooker
Drew Locke, owner of his eponymous business, said: “I didn’t know about the unequal pricing until the dairy ran out of whole milk one day and I had to buy some from a supermarket. It’s then I realised that we were paying shelf price.
“We have been talking with the dairy for the last two years, but they just seem to kick the can down the road. We want transparency at the end of the day.”
Jamie Hooker of Dandy said: “I have been having a conversation with Jersey Dairy for a long time about why supermarkets get a discounted wholesale price and we don’t. Why is milk cheaper for John Lewis and M&S but not for us? Jersey Dairy should be supporting local businesses and not putting them at a disadvantage.
“When our third Dandy shop opens soon in Sand Street, I will be buying more than 100 litres of milk a day. That’s quite a lot of milk, and yet we get no discount whatsoever.
“I know a coffee shop in the UK which sources its milk from an artisanal producer, a dairy much smaller than our own, and they pay 86p a litre. I think that says a lot.”
Jersey Dairy Managing Director Eamon Fenlon told the JEP that he had been in dialogue with two coffee shop owners and the business was now reviewing how it distributes milk around the Island.
He said: “Jersey Dairy offers commercial customers a range of purchasing options, including buying their milk direct from the dairy, via wholesalers or through direct deliveries to their premises. Some commercial customers choose to buy their milk from supermarkets.
“We’re open to other solutions, such as a mutually convenient central drop off/collection point for independent coffee shops and have offered this idea to the two customers who raised the question of pricing with us.
“Customer feedback is very important to us, and we wish to do our best for everyone. Our customer service costs do vary, one being delivery, so we’ve taken on board the challenge raised by the two customers and decided it would be a good opportunity to review our wider distribution options.
“Naturally, this takes time, and we need to ensure we conclude in such a way that is both efficient and fair to all customers.”
He added: “In June we assured the customers concerned that work is continuing on this matter, with a high priority, and until that review is complete, we are unable to comment on the potential outcomes.
“We’re certainly not being complacent, and we’ve been consulting with several other partners as part of the review process. This exercise will be concluded shortly, and we’ll advise all our customers of any proposed changes.”
