The milk pricing war between retail giants Coles and Woolworths has come to a draw: in the year to March 2013 the same number of Australians bought either supermarket’s home-brand milk in average four weeks.
The milk pricing war between retail giants Coles and Woolworths has come to a draw: in the year to March 2013 22% of Australians bought either supermarket’s home-brand milk in average four weeks.
Home-brand milk sales at both supermarkets has declined after peaking at 26% for Woolworths and 24% for Coles in March 2012—the first full year of data after Coles introduced its controversial $1 per litre pricing strategy and Woolworths quickly matched it.
Sales of Dairy Farmers and Pura branded milks—already on the decline before the pricing battle—both fell for the fifth straight year and are now purchased by only 16% and 8% of Australians respectively. Pauls has stayed at 10% with Australians buying the brand, and newer entrant A2 rose from 4% last year to 6% now.
Angela Smith, Group Account Manager, Roy Morgan Research, says:
“Heavy price cuts and fierce competition by supermarket home brands have clearly cemented their place in the market while the top two branded white milk brands have declined in popularity.
“However, as the instigator of the $1 a litre campaign only Coles, not Woolworths, has seen growth since 2011.
“In this changing industry, it is important for milk companies to understand the detailed market trends of their brands and competitors to ensure they remain competitive.”
Source: Roy Morgan Single Source (Australia), April 2008 –March 2013, average annual n = 19,615
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