Retail: conflict in Australia

  • Wednesday, 23 November 2011
  • food market

In Australia, two large companies, Woolworth and Coles control the market. Naturally, the Australian food industry finds this kind of dependency less than appealing. However, there are major concerns now as Woolworths has announced plans to focus on the development of its private labels. As a result, the Minister for Industry has publically expressed his views. Senator Kim Carr has urged companies to take their complaints to the Australian Food and Grocery Council (AFGC) which said recently that it is keeping an eye on the two chains and their increasing market power.  According to foodnavigator.com, he added that a rush to increase private label products would kill off any incentive food manufacturers have to innovate and that margins on these products would be too small to ensure their survival.

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