Sainsbury’s has entered into a strategic wholesale partnership with Coles, one of Australia's largest grocers. From early next year, Sainsbury’s will supply its own brand products to Coles supermarkets across Australia, as well as online. The range will be white labelled under the Coles brand and includes a selection of packaged groceries and household products.
New opportunities for own brand suppliers
Coles is the second largest Australian retailer with more than 2,400 retail outlets – including 800 supermarkets and 700 convenience stores – across Australia, serving 21 million customers a week. Like Sainsbury's, Coles faces significant challenges in its home market from new competitors and changing shopping habits. Following its demerger from Wesfarmers and listing on the Australian Stock Exchange, Coles has just refreshed its strategy, a major part is focused around inspiring customers through a distinctive and innovative range of own brands they can't find at competitors.
Benefits for both retailers
Sainsbury's and Coles share similar positionings in their respective markets, with both focused on quality seeking middle market shoppers who are open to innovative and ethically sourced products but also expect value for money. The agreement with Coles marks a key milestone in Sainsbury’s strategy to build its wholesale business, with a number of partnerships already in place in Asia, Europe and the UK, including with China's Tmall. The partnership will also investigate Australian groceries and alcohol which Sainsbury’s could source through Coles to bring a distinctive proposition to UK customers and strengthen its Taste of the Future offer.
An exciting opportunity
Commenting on the partnership, Michael Luck, Director of Business Development at Sainsbury’s said: “Coles is one of Australia’s leading food retailers and we are delighted to enter in to this new partnership with them. Great quality food, high standards and ethical sourcing are at the heart of both our businesses and we are delighted to work with Coles to bring more choice and innovation to Australian customers. We’re excited by the opportunity to offer more of our fantastic products to customers around the world through wholesale partnerships like this one.”
Greg Davis, Coles Chief Executive – Commercial and Express added: “We want to accelerate the introduction of innovative products to Coles Own Brand, and this partnership allows us to do that with a range of food and groceries that are already proven in the international market but not yet available in Australia.”
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