Disclaimer: The writer was a Cigarette salesman, visiting pretty much every Dairy in the region multiple times.
Corner dairies, also known as convenience stores or, in the 1950s and 1960s, milk bars, are a beloved and useful part of Wellington’s local culture.
These family-owned businesses offer an accessible shopping experience that big-box supermarkets have not found a way to kill yet. In fact, it looks like Foodstuffs has figured out a way to profit three times from the local dairy. Don’t kill it; even better, profit from it!
This is becoming clear to us: inflation is at hyper-rates and will never subside in our Wellington communities. Between 17 and 22% of our household expenditures are spent on food.
The average weekly grocery spend in Wellington, depending on the location, is between $107 and $134, while a couple will need $230.
A family of four should budget $400 weekly.
See how foodstuffs cunningly profit by operating at every level.
Foodstuffs and the profit take exist as the dairy owners rely on Pak n Save and New World for goods, which sees Foodstuffs profiting three times from the Wellington consumer.
Not described as a monopoly, Countdown (owned by Woolworths in Australia) plays a part in hyperinflation. Countdown generally matches food prices and also sells to the dairy industry, so it’s an unavoidable duopoly. There are a few ways to avoid it.
First profit: the supermarket receives the goods and sells the item to the supermarket.
They receive the item from the supplier to their massive central distribution centres (a recently new offering helping the big brands with distribution and merchandising, reducing costs for the supplier). Foodstuffs appear to be trying to ban sales reps from visiting the supermarkets, effectively forcing brands to use their flash new central distribution services.
Second take, which has made many families extremely rich. (See Supermarket Millionaires of Wellington.) The supermarket sells the product to the dairy.
The third profit sees the dairy sell to Wellington consumers.
In Wellington, corner dairies play a vital role in the community and are frequented for their convenient and accessible location, often friendly service, and diverse product offerings.
According to estimates, there are 70 corner dairies scattered all over the city and suburbs.
These little corner dairies are often the go-to place for locals to pop in for a quick snack, a newspaper, or a bottle of milk. They offer a sense of comfort and familiarity to the communities they serve, often becoming a meeting point or hub for neighbours.
The history of corner dairies in Wellington dates back to the early 20th century, when small, family-run businesses started popping up in both urban and suburban areas. They were initially established as milk bars, where people could buy cigarettes, fresh milk, and other dairy products delivered by local farmers.
Over time, these businesses expanded to offer snacks, newspapers, sweets, and other daily essentials. Despite the growth of large supermarkets and online shopping, corner dairies have managed to maintain their loyal customer base by providing personalised service with a touch of local flair.
Many of these stores are owned and operated by families who have lived in the community for generations. As a result, there is a real sense of community involvement and pride in the small businesses that make up Wellington’s corner dairy scene.
The corner dairy owners get to know their customers. They often go above and beyond to accommodate customer requests and even offer delivery services to those who may not be able to leave their homes.
In recent years, the corner dairy landscape has evolved with a growing number of stores stocking specialty items like vegan and gluten-free foods, craft beer, and other locally made products.
Despite the challenges of the modern retail landscape and crime, the corner dairies continue to thrive in Wellington. They have cemented themselves as an inseparable part of the city’s culture and fabric.
Look out for the series about the supermarket millionaires.
