Coles denies replacing branded products with its private label

Coles Merchandise Director John Durkan used his appearance before the Senate Select Committee, reviewing Australia’s food processing sector, to respond to claims that Coles is pushing branded products off its shelves and sourcing its private label products from overseas suppliers.

“We have seen claims that supermarkets are actively deleting branded products to replace them with private label brands. That is simply not the case in Coles’ supermarkets,” Mr Durkan said.

“Branded products continue to represent over 75% of overall sales in Coles and our strong view is that customers will ultimately decide what level of private label products they will buy.”

“Shelf space ranging decisions are made on the basis of sophisticated customer preference modelling, not on any strategy to replace branded products with private label,” said Mr Durkan.

In response to claims that Coles private label products are being sourced from overseas, Mr Durkan said, “Again, the facts do not support the claims. Nearly 100% of our fresh produce is grown in Australia and nearly 90% of our private label grocery products are made in Australia and we are committed to keeping it that way.”

Mr Durkan also cited examples of Coles’ recent partnerships with Australian food processors - such as its contract with Tamar Valley Dairy to produce yoghurt - as evidence of its commitment to supporting Australian industry. Coles claims that its private label contracts have created nearly 10,000 new jobs in the Australian food manufacturing sector in the last four years.