Five months after Australia’s largest ASX-listed dairy company Bega Cheese announced a contract to supply private label to Coles supermarket, a formal agreement has been finalised. The agreement is for a minimum five year term and will see Bega Cheese supply Coles branded cheese products for that period. Initial volumes are expected to be approximately 19,000 tonnes per annum. The contract, which had been foreshadowed in September 2011, now specifies that Bega Cheese will be manufacturing and packaging... ...Read more »

A proposal to amend the Australia New Zealand Food Standards Code, if brought to fruition, means so called “exotic meats” such as bison, emu and crocodile could be sold in Australian supermarkets within a year. Food Standards Australia New Zealand (FSANZ), which administers the Code, has begun consulting on a proposal to change regulations for producers and processors of minor meat species and wild game. Meats covered by the proposal include buffalo, kangaroo, crocodile, rabbit, ostrich and emu. While... ...Read more »

Australian Food & Grocery Council’s (AFGC) push for a Supermarket Ombudsman and a Fair Trading Code of Conduct to be established in Australia is gaining momentum. The AFGC has long supported the introduction of regulatory mechanisms on the supermarket industry. It has previously said that there is an “urgent need” for an ombudsman in Australia, especially during the recent supermarket price wars. This week, the AFGC announced that it is finalising proposed draft legislation for the establishment... ...Read more »

A national independent consumer survey released today has revealed the raging price war on grocery staples is unlikely to extend to the snack food market. The majority of consumers surveyed indicated they prefer to eat premium snack food products with a higher price tag because of the superior product taste. The independent survey was undertaken by Australian retail research company Canstar Blue, in conjunction with market researchers Colmar Brunton. Canstar Blue commissioned Colmar Brunton to survey... ...Read more »

Food Standards Australia New Zealand (FSANZ) has advised consumers of two product recalls, including an imported rice snack that may contain glass. Vitaco Healtheries Kidscare Rice Wheels batch Vitaco Health Australia Pty Ltd has recalled batches of its imported rice snacks sold in NSW and interstate in Woolworths, Safeway and Coles supermarkets, independent retailers and online stores. The company said it has recalled the batches because of the “possible presence of glass pieces”. The recalled... ...Read more »

Woolworths Group, one of Australia’s two supermarket giants has reported its first net profit drop since it was listed on the stock exchange in 1993. An interim net loss of 16.8% in its half-yearly results is mainly due to a one-off AUD $300 million restructuring charge to its Dick Smith brand. Net profit after tax (NPAT) dropped to AUD $966.9 million, down nearly seventeen percent (17%) from its previous corresponding year ending January 1. Had it not been for the one-off cost to Dick Smith, Woolworths... ...Read more »

A new government report has highlighted the extent to which Australia’s two major supermarket chains, Coles and Woolworths, are monopolising the retailing of food in Australia. The market position of each of these two major supermarket groups is so powerful that Australian food suppliers feel they are facing a duopsony despite the competition existing between the two supermarket groups. The report, titled ‘Foodmap: An analysis of the Australian food supply chain’, was launched on... ...Read more »

Coles supermarkets have recalled its Spicy Capsicum Dip, 200g, due to a labelling error which means sesame and tree nuts may be present in the product without having been declared in the ingredients. The recalled product has a use-by date of 19 MAR 12 printed on the side of tub and is sold from the deli counter in Coles and BI-LO stores throughout New South Wales, Victoria, Tasmania and the ACT. In a statement published on its websites, Coles said, “This could pose a health risk to customers with... ...Read more »

In announcing its second quarter retail sales results for the 2012 financial year today, Wesfarmers has expressed pleasure with the continuing strong growth of its subsidiary Coles. Coles is one of Australia’s two major supermarket groups. Coles’ first half-year’s sales this financial year were $13.6 billion, a 4.9 percent increase on the previous year. Wesfarmers’ managing director, David Goyder said, “Given a relatively tough retail environment and widespread deflation, I am pleased... ...Read more »

Coles supermarkets have launched a new marketing campaign around Australia promoting low prices for domestic fresh fruit and vegetables. The Coles campaign takes advantage of a current glut in fresh produce around Australia. However the campaign also signals greater competition for the “fresh” descriptor crossing into the marketing cornerstone of its major competitor, Woolworths. Over the past decade, Woolworths has branded itself by the slogan “Woolworths – the Fresh Food people”. Hence,... ...Read more »