4:42 AM 01/26/2013
Louisiana state regulators recently cracked down on a supermarket chainâ€™s weekly promotional deal because it was selling milk too cheaply â€” which violates state law.
The upscale Fresh Markets was selling gallons of milk for $2.99 as part of a weekly promotional deal. Louisiana requires that retailer price markups be at least six percent above the invoice and shipping costs of the product.
â€śBecause milk is a commodity product with regulated costs that are subject to change, at the current cost, due to Louisiana state law, we are unable to honor the $2.99 Tuesday deal for (Fresh Market) milk,â€ť according to a statement from Drewry Sackett of BRAVE Public Relations, who represents Fresh Market. â€śBecause the cost of milk fluctuates, it is possible that we will be able to offer the $2.99 deal on milk again in the future.â€ť
â€śThey can sell it six percent over cost all day long. Itâ€™s when they sell it below cost that it becomes a problem,â€ť State Agriculture and Forestry Commissioner Mike Strain told The Advocate.
After getting a complaint about Fresh Marketâ€™s promotional deal, Strainâ€™s office sent an auditor to a French Markets store.
At least one Fresh Market shopper was outraged when he found that the state government had intervened to control the storeâ€™s milk prices.
â€śShould we do the same thing with bread? Should we do the same thing with soft drinks?â€ť asked Lafayette stockbroker Kenneth Daigle. â€śIf retailers want to take a loss, so be it.â€ť
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