Supplier declares new battlefront comparison with supermarket brands

Posted by AFN Staff Writers on 25th June 2012

A new marketing war has begun between supplier brands and the supermarket homebrands, with a new angle being taken by the suppliers against the homebrand product.

A major milk processor is promoting that its milk does not contain a processing by-product that is commonly used as a dilutant in mass-market milk.

Lion Nathan’s dairy division, including the Dairy Farmers brand and Pura Milk brand, has announced that its milk will now be “permeate-free”. The decision to omit this watery substance from their milk aims to give the supplier brands a point of difference against the supermarket homebrands.

Is this a case of karma or come-uppance against the supermarkets?

In 2010, the Coles supermarket group ran its own branding campaign with a claim that its meat was “free” of a quality attributed to the produce of its competitors. More particularly, the claim then was that the meat which Coles was selling was all “hormone-free”.

Lion external relations director Libby Hay Ms Hay said the decision to go permeate-free for milk was in response to consumer research that found 90% of Australians would choose a less-processed food option if available.

“Some consumers may notice a slight difference in taste, others not,” Ms Hay said.