Louisiana stops sale of cheap milk at market
Published January 27, 2013
A Louisiana supermarket was forced to yank its low-cost milk special after state auditors objected to the price.
Fresh Markets in Perkins Rowe was selling milk for $2.99 a gallon as part of a weekly promotion deal, but Louisiana requires that retailer markups be at least 6 percent above invoice and shipping costs, The Advocate reports.
State Agriculture and Forestry Commissioner Mike Strain said Fresh Market violated state regulations by selling milk below cost as part of a promotion.
The supermarket routinely sells a gallon of skim, 1 percent, 2 percent or whole milk for $2.99 on Tuesdays, limiting the quantity to four per customer, according to The Advocate.
“They can sell it 6 percent over cost all day long. It’s when they sell it below cost that it becomes a problem,” Strain told the paper.
Strain’s office reportedly sent an auditor to the store to investigate the Fresh Market promotional deal after getting a complaint.
During the second week of January, the price for a gallon of whole milk in Baton Rouge ranged from $4 to $6.89.