Brumby’s Bakeries has gone into damage control with an ad campaign designed to absolve franchisees running the bakeries from any connection with the carbon tax comments made last week by its MD, Deane Priest.
Priest has since resigned over his comments in an internal newsletter regarding price hikes that could be blamed on the just-introduced carbon tax.
The ad campaign highlights the franchisees on the frontline, using social media, in-store posters and newspaper print ads to get its message across. Costs of the action plan are being met by parent group Retail Food Group.
The print ad copy [see below] concludes with the words “Please don’t blame the franchisees at your local Brumby’s store. At the heart of every Brumby’s store are hard-working passionate people running a small business. Please continue to give them your support.”
Following the furore last week when it was revealed that Priest suggested franchisees “let the carbon tax take the blame, after all your costs will be going up due to it”, social media sites including the bakery’s Facebook page have revealed both positive and negative comments.
Retail Food Group CEO Tony Alford has made it clear the company did not sanction the comments that have cost Priest his job.
“Following thorough investigation of the matter we are satisfied that the comments were not made in an effort to encourage our franchisee community to link RRP adjustment to the carbon tax, but rather, were innocent albeit foolish and ill-considered remarks when placed in the context of the internal franchisee communication.
“To be sure, the principal purpose of the communication was to promote franchisee evaluation of in-store pricing practices due to cost and margin pressures.
“We are also satisfied that the comments are isolated to the subject newsletter and certainly not representative of RFG policies or practices.”
The company is talking with franchisees about the “limited relevance of the carbon tax to recently adjusted RRPs” and how the price increases should be addressed with consumers.
RFG is also liaising with the ACCC which picked up on the leaked newsletter last week and announced a follow-up investigation.
Marketing and innovation director Tracey Catterall told franchisees in an internal memo that Priest’s resignation had been accepted.
Catterall said “Deane has dedicated the past 12 years of his career to the Brumby’s system and during this period has made valuable contributions to its success.”
The company plans to fill the managing director’s role with an interim appointment before a replacement is found, and has asked franchisees, field and head office personnel to “re-group as a team in order to win back the hearts and trust of each of our valued customers”.
Franchisees have also been asked to remove any Liberal party placards that link carbon tax to price increases.
Main image: media.hubonline.com.au; ad image: mumbrella.com