Metcash tackles competition with ethical private label range

Posted by AFN Staff Writers on 5th December 2016

Supermarket wholesaler, Metcash, is attempting to revive its food and grocery profits by appealing to ethically minded shoppers with a new community focused private label range.

The ‘Community Co’ brand will be sold in selected IGA supermarkets and a portion of all sales will be donated to community programs across Australia. Select products in the range given the ‘Community Co Our Farmer’ logo is also said to support Australian farmers.

The Community Co range includes bacon, cheese, oats, spreads, oil and bottled water. All products are said to contain no artificial colours or flavours.

Products in the range are described as being “better for value” with Metcash saying:

“Through our supplier partnerships we source great quality products at great prices, and also contribute to Australian communities. That’s value with values.”


Will Community Co help lift Metcash’s grocery profits?

The range has been released just after Metcash reported its financial results for the first half of its 2017 financial year. The results showed that the company’s food and grocery division was suffering from stiff competition provided by Australia’s other supermarkets.

For the first half of its 2017 financial year, Metcash’s profits dropped by 4.7 per cent on the same period last year, down to AUD $82.8 million.

In announcing the results Metcash’s Chief Executive Officer, Ian Morrice said its food and grocery division suffered from a “intense trading period”.

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