Woolworths looking to invest in long-term supply contracts
Woolworths CEO Brad Banducci with The Australian's John Durie during the Global Food Forum (Image: Aaron Francis/The Australian)
Woolworths is looking to enter into long-term contracts with suppliers in an effort to get fresh and healthy food to its customers.
Chief Executive Officer of Woolworths, Brad Banducci, told The Australian Global Food Forum held in Melbourne this week, that the supermarket was looking to enter into contracts as long as 10-years.
Banducci said he hopes such contracts will give food producers confidence and the ability to innovate, especially when it comes to fresh and healthy food options.
“It is something I am incredibly passionate about,” Banducci said about getting fresh and health foods to Australians.
Banducci said currently berries are Woolworths biggest food category followed by bananas and then avocadoes, making an investment in fresh food important for the supermarket giant.
“All three are superfoods with natural health properties,” Banducci said.
“So we’re on this wonderful trend that I think if we as a country can get behind could be enormously beneficial, not only for us economically, but for customers,” he said.
Banducci stated that recent in-store testing had shown the more options a customer is given when it comes to healthy foods, the better the sales outcome. He however said healthy foods need to be attainable for Australians.
“We need to make these products affordable,” Banducci said.
Woolworths’ competitor, Coles is also investing in long-term supply contracts, entering into its first ten-year supply contract with the Australian Lamb Company in August 2016.
In October 2016, Coles signed an eight-year frozen vegetable supply contract with Simplot.
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