Coles to accelerate innovation with Sainsbury’s deal

Coles has formed a strategic sourcing partnership with UK retailer Sainsbury’s.

According to Coles, this will give them access to Sainsbury’s world-class supply chain, providing a source of “new and exciting products” to expand Coles Own Brand.

“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,” Coles Chief Executive – Commercial and Express Greg Davis said.

The current Own Brand offering

Coles says Own Brand is central to its’ offering and commitment to delivering great value every day. In fact, 90 of the products have won awards for their quality in the past financial year.

Own Brand products are said to now account for 30 per cent of sales in Coles.

In FY19, Coles added more than 1,200 products to its Own Brand range. This included the I’m Free From range of products, vegan and vegetarian ranges under the Nature’s Kitchen, Herb & Sons and Wellness Road brands, and products such as Coles Special Burger Sauce.

The vast majority of Coles’ Own Brand range is claimed to be grown and made in Australia. This, says the retailer, will not change as it works with suppliers to add further Australian-made products to the range.

“This deal will free up resources for our own product development team so that they can drive further innovation and help us fulfil our strategy to make Coles an Own Brand Powerhouse,” Mr Davis said.

The new launch

The first products to be sourced through the Sainsbury’s partnership are expected to be added to Coles’ Own Brand range in the second half of the financial year.

Michael Luck, Director of Business Development at Sainsbury’s says the company was delighted to work with Coles through this new partnership to bring more choice and innovation to Australian customers.

“Great quality food has been at the heart of our business for 150 years and we’re excited to bring Sainsbury’s fantastic products to Australia, offering Coles customers a range of high quality, innovative products that they won’t be able to find anywhere else,” he said.

“Coles will also work with our Australian food and liquor suppliers to explore opportunities to sell their products to Sainsbury’s through the partnership.”

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